Q2 2020 Limoneira Co Earnings Call
Greetings and welcome to the Limoneira second quarter 2020 earnings call.
All participants are in a listen only mode.
A question and answer session will follow the formal presentation.
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As a reminder, this conference is being recorded.
Now I'd like to turn the conference over to John Mills, but I see our thank you. Please begin.
Thank you good afternoon, everyone and thank you for joining us for Luminaires second quarter fiscal year 2020 conference call.
On the call today, our Harold Edwards, President and Chief Executive Officer, and more color Mountain Chief Financial Officer.
By now everyone should have access to the second quarter fiscal year 2020 earnings release, which went out today at approximately four PM eastern time.
If you have not had a chance to be the release, it's available on the Investor Relations portion of the company's website at Lehman era dotcom.
This call is being webcast and a real replay will be available I mean, there's website as well.
Before we begin we'd like remind everyone paired remarks contain forward looking statements in management may make additional forward looking statements in response to your questions such statements involve a number of known and unknown risks and uncertainties many of which are outside the company's control and could cause its future results performance or achievements to differ significantly from the results perform.
It's worth achievements expressed or implied by such forward looking statements.
Important factors that could cause or contribute to start differences include risks detailed in the company's 10-Q's intend case filed with the FCC and those mentioned in the earnings release.
Second as required by law, we undertake no obligation to update any forward looking looking or other statements herein, whether result of new information future events or otherwise.
And please note that during today's call will be discussing non-GAAP financial measures, including results from the adjusted basis. We believe these adjusted financial measures can facilitate a more complete analysis in greater understanding of Luminaires ongoing results of operations, particularly when comparing underlying results from period to period.
We provide as much detail as possible on any items that are discussed on an adjusted basis.
Also within the company's earnings release in today's prepared remarks, we included adjusted EBITDA, which is a non-GAAP financial measure a reconciliation of adjusted EBITDA to the most directly comparable GAAP financial measures is included in the company's 10-Q and press release, which have been posted to its website.
And with that it's my pleasure to turn the call or the company's president and CEO Mr. held its good Harold.
Thanks, John and good afternoon, everyone.
On today's call I will provide an overview on the impact of covert 19.
And then has had on our business today as well as a brief review of our operational results for the second fiscal quarter. Mark will then follow with an in depth to review our financial results and I will finish with a discussion regarding our outlook for the remainder of fiscal year 2020. After that we will open up the call to your questions.
The covert 19 pandemic has had an adverse impact on the industries and markets. We service the United States Lemon market has seen a significant decline in volume with the overall lemon industry demand falling more than 50% since shelter in place orders were issued in mid March.
This has resulted in a significant market oversupply.
Additionally, the export market for fresh product has also significantly declined due to covert 19.
While our retail food and club grocery business outperformed during this period it has been more than offset by the decline in the food service industry with restaurants, and bars forced a temporary temporarily closed or restricted to delivery in front of door service only.
To improve our long term liquidity position given these uncertain times, we've taken measures, including selling our positioning calavo stock repurchasing certain agricultural acreage temporarily postponing nonessential capital expenditures and increasing our revolving line of credit.
While we were starting to see results improve in our foodservice business.
The pressure Cobot 19 has put on lemon pricing will take time to recover.
However, our team has shown tremendous agility I greatly expanding our reach into retail and grocery. This has led to strong lemon volume growth of 14% compared to the same period last year.
I'll now discuss each of our business divisions, starting with our agribusiness.
Agribusiness revenue for the second quarter was $38.4 million compared to $40.8 million. The prior year included $25.3 million in fresh lemon sales during the quarter, our fresh lemon volume increased 14% to 1.5 million cartons due to our strong king.
Im tremendous partners and expanding relationships in our industry. However, the increased volume was offset by a reduction in pricing from an oversupply of north American fruit and reduction in overseas shipments.
This is a rapidly changing environment and during the past few weeks of our third quarter fiscal year 2020, we're continuing to experienced strong volume at grocery retail and beginning to see a slow improvement in foodservice as certain states begin to open restaurants and bars on a limited basis.
Despite the reduction in sales from restaurant closures in the quarter, we experienced year over year sales growth in both avocados and oranges, we sold approximately 1.2 million pounds of out of caught is at an average price per pound of $1.64 for a total of $2 million and sold.
Proximately 356000 cartons of Orange is at an average price per carton of $7.49 for a total of $2.7 million in revenue in the second quarter, However, specialty citrus and other crop revenue was down year over year at $1.2 million compared to 1.9 million dollar.
First in the same prior year period [noise].
Turning now to our real estate development segment, the builders working with us on harvest at Limoneira have sold 70 homes since the beginning of the calendar year for a total of 112 homes sold out of the 244 initial lot closings. We're very pleased with the recent home sales and expect this probably.
Check in its entirety to be 1500 homes and provide the company with additional $80 million of cash flow over the next six to nine years. These are challenging times in our industry, but we have been through tough times before and we're starting to see our partners in the food service industry beginning to open locations we are.
Courage by the increase in fresh lemon volume in the second quarter combined with the increased fruit bearing acreage we have coming online this year.
In order to keep our long term growth intact, and whether this temporary disruption to our business we've taken the necessary actions to secure the strength of our long term financial position.
And with that I'll now turn the call over to Mark. Thank you Harold and good afternoon, everyone for the second quarter fiscal year 2020, total net revenue was 36 $39.6 million compared to total net revenue of $42 million and the second quarter of the previous fiscal year.
Agribusiness revenue was $38.4 million compared to $40.8 million in the second quarter last year the year over year decline can be attributed to a dramatic reduction in the pricing of elevens due to the oversupply caused from a reduction in demand from Covidien 18.
Other revenue was $1.1 million compared to $1.2 million in the second quarter of fiscal year Twentytwenty.
Agribusiness revenue for the second quarter fiscal year Twentytwenty includes $25.3 million in fresh lemon sales compared to $26.3 million a fresh lemon sales during the same period of fiscal year 2019 sales of 2.3 million by Trapani fresh on 143.
8000 cartons of fresh lemons, partially offset the decrease in revenues in the second quarter of fiscal year 2020.
Approximately 1.475 million cartons of fresh lemons were sold during the second quarter fiscal year 2020 at an average of $17.14 average price per carton compared to approximately 1.300 million cartons sold at a 20 dollar and 26 cents average price.
Per carton during the second quarter of fiscal year 2019.
We expect an improving lemon market, but it is important to realize we will continue to experience pressure on the price of fresh lemons ended the second half of 2020 as restaurants and bars are slowly beginning to open back up and are expected to be operating at a reduced capacity.
The company recognize $2 million of avocado revenue in the second quarter of fiscal year 2020, compared to minimal avocado revenue in the prior year as a result of the excessive heat we experienced.
Approximately 1.2 million pounds of avocados were sold during the second quarter of fiscal year 2020 at a $1.64 cents average price per pound compared to approximately 400000 pounds sold at a $1.27 average price per pound during the prior year period.
The company recognize $2.7 million of Orange revenue in the second quarter of fiscal year 2020, compared to $2 million and the same period of fiscal year 2019 attributable to higher prices, partially offset by decrease in volume.
Approximately 356000 cartons of Orange is were sold during the second quarter fiscal year 2020 at a seven dollar and 49 said average price per carton compared to approximately 361000 cartons sold at a $5.52 average price per carton during the same period of the previous fiscal year.
Specialty citrus another crop revenues were $1.2 million in the second quarter of fiscal year, 2020, compared to $1.9 million and the second quarter fiscal year 2019.
The decrease was primarily due to lower volume, partially offset by higher prices.
Total cost and expenses for the second quarter fiscal year, 2020 decreased to $42.4 million compared to $43 million in the second quarter of last fiscal year. The second quarter of fiscal year 2020 decrease in operating expenses was primarily attributable to decreases in agribusiness cost and expense.
Ansys.
Cost associated with the company's agribusiness include packing costs harvest costs growing cost cost related to the fruit procured and sold for third party growers and depreciation expense.
Operating loss for the second quarter fiscal year, 2020 was $2.8 million compared to a loss of $1 million in the second quarter of the previous fiscal year.
Net loss applicable to common stock after preferred dividends for the second quarter of fiscal year, 2020 was $5 million compared to net income of $2.7 million in the second quarter fiscal year 2019.
Net loss per diluted share for the second quarter of fiscal year 2020 was 29 cents compared to net income per diluted share of 15 cents for fiscal year 2019.
Excluding the lost on stock and Calavo growers noncash equity in a lots of Lehman, Eric community builders and loss on assets disposals for the second quarter of fiscal year 2020, adjusted net loss applicable to common stock was $1.4 million compared to second quarter fiscal year 2019 adjust.
Net loss of $1.6 million.
Adjusted EPS was a loss of eight cents and in the second quarter of fiscal year 2020, compared to a loss of nine cents in the same period of fiscal year 2019.
Adjusted EPS in the current quarter excludes a nonrecurring loss of two cents impact from tree removal as well as a loss of 18 cents on Calavo stock.
Adjusted EBITDA was breakeven in the second quarter of fiscal year 2020, compared to a gain of $800000 in the same period of fiscal year 2019.
A reconciliation of adjusted EBITDA to net income has provided at the end of our earnings release.
For the six months ended April 32020 revenue was $81.2 million compared to $84.1 million in the same period last year operating loss for this first six months of fiscal year, 2020 was $11.3 million compared to an operating loss of $4 million.
In the same period last year.
Net loss applicable to common stock after preferred dividends was $11.6 million for this first six months of fiscal year 2020, compared to a net loss of $2.1 million in the same period last fiscal year.
Net loss per diluted share for the first six month period. This fiscal year was 66 cents compared to a net loss per diluted share of 12 cents in the same period of fiscal year 2019.
Excluding the loss on stock and Calavo noncash equity in loss of LLC B and loss on asset disposals for the first six months of fiscal year 2020, adjusted net loss applicable to common stock was $6.6 million compared to adjusted net loss of $3.6 million.
The same period in fiscal year 2019.
Adjusted net loss per diluted share was 37 cents compared to adjust did that loss per diluted share of 21 cents for the same period in fiscal year 2019.
Based on approximately 17.6 million and 17.5 million, respectively weighted average diluted common shares outstanding.
Before I hand, the call back over to Herald, a comment on our balance sheet long term debt as of April 32020 was $124.3 million compared to $105.9 million at the end of fiscal year 2019.
Due to improvements in our cost structure, the disposition of our Calavo stock and an increase in our revolving line of credit we ended the quarter with approximately $27 million of availability on our lines of credits. In addition, we expect to receive tax related refunds from the cares Act as a reminder, the cares act provides numerous.
Tax provisions and other stimulus measures, including temporary changes regarding the prior and future utilization of net operating losses and temporary changes to the prior in future limitation on interest deductions based on this benefit and our lines of credit. We're confident we have ample financial resources for the temporary downturn in the.
Right.
Now I'd like to turn the call back to Harold to discuss our fiscal year 2020 outlook.
Thank you Mark.
As a result of uncertainty around the duration scope and ultimate financial impact of the covered 19 pandemic Luminaire management is withdrawing our fiscal year 2020 outlook that was previously provided on March 11 2020.
The decline in demand for our products during the second quarter of 2020, which we believe was the result of the covered 19 pandemic negatively impacted our sales and profitability for the second quarter of 2020, the duration of these trends and the magnitude of such impacts cannot be precisely estimated at this time as they are affected by a number.
The factors many of which are outside management's control.
Although subject to unforeseen changes that may arise as the cover 19 pandemic continues to unfold. We currently expect improvement in the adjusted EBITDA. During the second half of 2020, we are seeing improved sell through results. During the month of May compared to March and April due to seasonality as well as foodservice beginning to open.
And in certain areas of the United States.
In addition, the company anticipates record lemon volumes for fiscal year, 2020, offset by expected lower pricing.
Talking about our longer term growth pipeline looking into the back half of 2020 and beyond we have an additional 1200 acres of nonbearing lemons estimated to become full bearing over the next four years, which will enable us to achieve strong organic growth for many years to come.
The company expects 300 of the 1200 acres to become full bearing in fiscal year 2021.
Beyond these 1200 acres, we intend to plant an additional 250 acres of lemons in the next two years. We anticipate this additional acreage will increase our domestic supply of limoneira own lemons from its 2020 level by approximately 50% or about 900000 to one 1.3 mode.
Million additional fresh cartons as the nonbearing and planned acreage becomes productive. We also expect to have a steady increase in third party grower fruit.
And with that I'd like to open the call up to your questions operator.
Thank you at this time, we will be conducting a question and answer session. You would like to ask a question. Please press star one on your telephone keypad.
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Our first questions come from the line of Ben being renewed Stephen. Please proceed with your questions.
Hi, Good afternoon, guys. Thanks for taking my questions.
Evan.
I want to start where with lemon prices.
Really across it looks like across.
All sizes in grades.
Moved up pretty nicely.
The last several months I suspect part of that is.
Every.
Foodservice, albeit slow lemon prices still below average, but now look like they're up year over year.
Can you talk at all.
Should the slogan or that curves largely near the food service recovery.
And then any color apparel, but you could provide just on the crop and how occurring this year and then how weather.
What implications there has for next year as well.
Happy to Ben so.
Your your observation about.
And I guess slight speculation about demand improvement because restaurants are opening up in foodservice is pulling more demand is exactly what's going on the other than the other things going on as we've gone through the first initial picks in district to which you know as the coastal region of California.
And as we look towards the second part of the coastal pick it looks like the overall industry supply is less than the first part so we're going to see a better balance between demand and supply than we saw in the first half of the year and I think so I think the combination of those two things is really having a very positive.
Impact on pricing.
Just anecdotally as you know, we we reported a combined price of March 17, 14, $17 in 14 cents in the second quarter.
Pricing today is across all sizes in grades in the midnight teams and our expectation or our put it this way our goal for the third quarter is to see that price finish at approximately $20.50 to $21 and our sales team feels that that's achievable, giving the given.
In the response, they're receiving from the marketplace today.
Okay, and some maybe not yet.
Now to talk about the second half and let the crop looks like for next year.
It's it's a little too early to know just because theres a lot lot of things that mother nature will do between now and when we actually get into the harvest, but aside from the growth of bearing acres.
At this point, we believe that.
We will see similar crop sizes for next year.
One thing that we believe we will have a better opportunity to do next year is to recruit new outside growers are returns. This year are much more competitive to our third party growers than they were last year and even though it's a disappointing year through the first half given the oversupply situation in the overall return.
Earns.
Our lower than I think expectation because of overall pricing is lower.
Our returns are very competitive this year and that gives us a better opportunity to recruit new growers for next year. So year on year volume growth. We next G suite for next year, we see a real opportunity to two to grow.
Okay. That's that's great. Thank you.
Mark looking at the DNA line, how much flexibility is there on that particular line item CNL too.
To remove costs.
Lean our y'all and ask DNA and then any other components of the business, where you think theres fungibility around cost that you can get leaner on in the midst of this downturn.
Yes, Thats a great question, Ben So we have been working very hard and diligently on attacking that exact question in the last call. It eight weeks.
The short answer is it's about we've targeted about $2 million of cost.
Just from the DNA side simply.
Obviously compensation is one place it's easy to go too.
Travel related expenses and then just had their non essential items. We've identified we were coming into the year, a little bit heavier because as you know we implemented a new ERP system, which always gets complicated and so we were running about 500 to 700000 ahead. So I think if we end the year sort of a million dollars underwear.
We have all been.
It is our first target.
The thing, we don't ever want to really get into especially believing in our long term growth strategy is cutting costs in the field, there's just too much long term.
Problems, if we get into that and I think we all believe that the lemon market is stabilizing and coming back to a good place and and you compromise yields in the field Thats just it's never goods story, so, but but in general from the Jna side, I think thats, where were attacking and sort of a 10% reduction number is the goal then.
This is Harold one other sort of comment for color on that in the in the SGN add the second quarter was approximately four cents of nonrecurring SGN jestina items.
Related to accounting expense related to the FDF Trapani acquisition.
As well as than onetime ERP implementation costs. So that was one of the reasons why those costs look sort of out of line given where we were.
But they were at they were accounting issues that we.
Did not anticipate when we budgeted.
Those have now we're past those and so you'll see a nice falloff in our trend divest DNA in the coming quarters.
Okay very helpful. Thank you banks and thought.
Thanks, Barry Thanks.
Our next question comes from the line of Vincent Anderson of Stifel. Please proceed with your question.
Good afternoon. Thanks.
So events.
Hey.
So so just quickly we're about to gear up for Mexican imports for Lemons, just curious if you had and the any Intel on the ground there how their Stephen shaping up.
[music].
Thats going to be big part of the supply demand balance of the back half of the year.
We've had a little bit of Intel Vince.
So as far as we know crops are slightly below volume levels of last year, and we do you know that one of the largest suppliers or exporters' out of Mexico.
Pulled a significant amount of acreage related to HLB issues, the in sips and greening issues that they encounter down there.
And so it's our expectation that the total amount of Mexican fruit that comes into the market should be south of 3 million cartons.
And it's the usual fire drill when that fruit starts coming in they attack certain regional markets, but typically with the choice and the standard grades they have hard time, putting up a real fancy grade so as it as it relates to the overall competitiveness of our price.
It always make some of that lesser grade fruit more more crowded, but I, but I don't anticipate they'll be a huge downturn in overall pricing as result of the Mexican imports this year.
Hi, this could be here.
And this this might be.
To to pinpoint, but if you are to.
And just.
Holden idea of what normal imports would be for the second half of the year and you look at your best guess for inventory levels, given the demand destruction.
How quickly do we really need to see a return to normal on the demand side of the equation such that inventories don't become a big overhang and said 20 early 21.
No Thats always a great that is the issue and that's a great question. So.
You know just because we get to participate in the export or imports depend on your perspective out a chilling ran out of Argentina.
We are hearing lots of rhetoric from some of the Argentine shippers that they're looking forward to shipping into the U.S market.
They're breakeven as we understand it is 17 to $18 a carton. So we don't anticipate that they'll be.
That much additional fruit in the marketplace from Argentina will see is as we've discussed before they have a slight logistical advantage for landed fruit onto the east coast markets. So you'll see some of that Argentine fruit in those markets. But we are also would we haven't made any comments do it but we're seeing a nice return.
Of foodservice and demand business into western and Eastern Europe, and a lot of that Arjun time in July and fruit finds its way that over there.
The export markets in southeast Asia are recovering at very different spotty rates.
Example, being the Japanese market is very very slow to recover.
Right now they're pulling in about a fifth of what they normally pull in of normal.
Lemon imports and but the Korean market is back to almost like normal and we're seeing normal levels of shipments there.
So.
It will certainly be a very positive thing for Lehman era to see restaurants and bars around the world recover and.
And get back into business.
It's just it's very difficult to predict how quickly that's going to happen and how that is happening, but just anecdotally every week, we're seeing our shipments improve and increase aside from our retail growth and we attribute that to both the seasonality of.
Of the summer months, but also to restaurants and bars beginning to open up and van is one thing I might add is I think you've noted and the recent weeks that Chile has now opened up our China has accessed open up access into Chile, with very little Phytosanitary protocol and so that is a what we'll call a new market.
For our lemons down there so we'll probably see some demand pull go that way, which will also helped about.
I will thanks for getting out ahead of my my last question Mark.
Instead tidal back.
I go back to Europe, just briefly I mean, everything we read is that that market continues to be red Hot both western and Eastern Europe is there is there something different about how they purchase or how Argentina solved into Europe that you're not maybe a little bit more bullish or is this just about moderating expectations given how crazy things.
Right now.
The latter we're just being careful we just don't know the one thing we can say from from Argentina's perspective that we do know is and I think we reported on the on it in the first quarter, but there was extreme heat in the first part of the season, which did impact the entire industries crop. So the the size of the crop is is down.
Order of magnitude, maybe what 30% 30%.
So that that bullishness that you're referring to in all of Europe is certainly going to be extremely beneficial for our domestic market because that'll deferred lot of that a lot of that sourced fruit from Argentina, and Chile into those markets and keep it out of out of the United States, which should should ultimately help us.
Perfect. Thanks, guys.
Thanks.
Our next question Scott have a line of Mark Smith with Lake Street Capital. Please proceed with your question.
Hi, guys.
First off can you just talked about any outbreaks or shutdowns that you saw potentially during the quarter at facilities.
Our sister company Calavo had an outbreak somebody got sick went home tested positive.
660 of their their workforce.
Sent home sheltered in place were tested in total 45 of their employees.
Most of whom were asymptomatic tested positive.
But they were able to come in with the second shift of of temporary employees to to remain operation as it relates to the luminaire luminaire companies operation, We had one employee in the Orchard actually out in our in our farming group who tested positive.
He was sent home sheltered in place recovered.
He exposed three other people all of them tested negative, but sheltered in place for 14 days and they're now back to work we had one temporary employee in the packing house you tested positive they were exposed to three other people. Those all those people were sent home for 14 days three other employees or the temporary employees were.
Asymptomatic are actually sorry tested negative so so in our and then in our Yuma, Arizona Operation We had.
Two employees test positive for it and at this point Thats the extent of the outbreaks of the cases that we've had a throughout our company.
We've been diligently practicing.
Social safe distancing everybody's wearing a mask we're tech we're checking temperatures everyday in the packing houses and working is diligently as we can to prevent any future outbreaks.
Perfect and similar to that any incremental costs you can call out there really hurt gross profit margin as you look at different initiatives and projects put in place to prevent and safety measures for cobot.
Not necessarily specific to co, but nothing that really move the needle I mean.
Theres more training expense, there's there's there's more.
Personnel expense as it relates to cleaning and stem sanitizing.
But nothing that really is moving the needle that dramatically we put the safety of our employees is the number one priority. So we're really not only.
Trying to walk the walk to walk, but walk the talk and and this really working hard in partnership with the the Ventura County Health Department locally here to do what we need to do to to prevent any future outbreaks, but but really not moving the needle significantly on the cost side.
Okay, great. Thank you.
Our next question has come from the line of Ben Klieve National Securities. Please proceed with your question.
All right. Thanks for taking my questions. Just a couple of from me here first on wondering if you can comment it kind of the state of the M&A market.
Are you seeing kind of smaller growers.
Or smaller.
Small smaller businesses that you've been looking at.
Maybe you have any kind of enhanced.
No need to go to market and as such you presenting you with them some M&A opportunity to maybe weren't there six months ago or or have you not yet.
I noticed any kind of meaningful change in the M&A market.
The decoded pandemic.
No Thats a great question and we actually are seeing quite a bit of of.
Of activity.
It's funny talking about farmers in M&A, because if you said M&A to a farmer I don't think anybody know what you were talking about but.
But but certainly in the lemon space throughout California. This is year number two back to back of challenging lemon returns and challenged challenged lemon profits and profitability and so we're beginning to see.
And we see this is good news, we were beginning to see farmers throughout Arizona, and California begin to take lemon acreage out. So that's always a good sign for us because that sort of.
Leads us to believe that we've sort of past the tipping point of this imbalance between demand and supply so thats good news.
But also your until the pandemic.
We've seen three years in a row of challenge returns from oranges, and we've seen a lot of Orange acreage speaking began beginning to come out, but we're also seeing a lot of activity from interested people enrolling up and purchasing orange acreage and so in future quarters, you'll hear Lehman era talk more and more about some of our.
Acreage rationalization and and opportunities for us to dispose of less productive.
Citrus ground and.
And so the sort of the in improvement or increase in the M&A activity in that space has been very helpful to us.
Got it got it thank you.
Although the question for me is regarding the harvest at Limoneira.
Some really encouraging numbers that you guys talked about on your prepared comments.
Can you talk a bit about kind of the benchmarks that we should look for here for when one we're going to be able to better understand the timing of the future cash payments due to sell out of those initial 244 lots do you think will have visibility of up in advance of that kind of what should we be looking here for.
Regarding this initiative.
The next few quarters.
And now it's a great question Ben So just some color on this year. So so far this year. We've sold 70 homes of the homebuilders have sold 70 of those lots our benchmark at the beginning of the project was two homes per week.
This last week alone we netted 11 sales one week, we had 10, when we had zero, but overall compared to all of.
Of the Southern California, Southern California Real estate development.
Paul has really really outside and our business partners are pretty optimistic on that and so the way that we think about the next phase is our were already in full motion, you'll see some stuff coming from us in the next quarter on.
Some announcements hopefully.
Those next phases of lots still in phase one, but those 244 don't need to be sold out to your question. We are just in a continual rollout development. So we still think it's about six to seven years for the full development on the 1500 homes and $80 million of additional cash.
We look towards the end of 2021 early 2022 fiscal to get our first real meaningful.
Cash distribution in the tens of millions.
So we're we're optimistic and that's why we want to talk about it in this that things are things are looking good in this environment and whether whether its interest rates are people moving out of urban areas, it's probably a little bit of both but it's definitely a silver lining right out of the story.
Yeah for sure well congratulations on that progress on very good I think that Doesnt for me. Thanks for taking my questions I'll get back in queue here.
Great. Thank you.
Thank you we have reached the end of the question and answer session I will now turn the call back over to Harold Edwards for any closing remarks.
Thank you for your questions and interest and leaving era have a great day.
Thats does conclude today's conference you may disconnect. Your lines at this time. Thank you for your participation have a great evening.