Q2 2020 Ultralife Corp Earnings Call
Good day and welcome to the Ultralife Corporation second quarter, two different the earnings release confidence gone at this time for opening remarks any production I like to 200 victims Jody Burfening. Please go ahead.
Thank you and eat up and good morning, everyone.
For joining us this morning, Ultralife Corporation corporations earnings conference call for the second quarter fiscal 220, 20 with us on todays call or Mike.
Ultralifes, President and CEO, and Phil Fain, Ultralifes Chief Financial Officer.
Earnings Press release was issued earlier. This morning anyone has not yet received a copy I invite you to visit the company's website ultralight core dot com, where you'll find the release under Investor News in the Investor Relations section.
Before turning the call over to management I would like to remind everyone. Some statements made during this conference call contain forward looking statements based on current expectations actual results could differ materially from those projected as a result at various risks and uncertainties. These include potential reductions in revenues from key customers uncertain global economic condition.
It's an acceptance of new products on a global basis, the company cautions investors not to place undue reliance on forward looking statement, which reflects the company's analysis only as of today.
The company undertakes no obligation to publicly update forward looking statements to reflect subsequent events or circumstances further information on these and other factors that could affect Ultralifes financial results is included in Ultralifes filings with the Securities Exchange Commission, including the latest annual report on form 10-K latest core.
Early reports on form 10-Q.
In addition on today's call management will refer to certain non-GAAP financial measures that management considers to be useful metrics differ from GAAP to non-GAAP measures should be considered a supplemental corresponding GAAP figures.
With that I would now like to turn the call over to Mike Good morning, Mike.
Good morning, Jody. Thank you everyone for joining the call.
Ill start by making some brief overall comments about our Q2 2020 operating performance.
After which I'll turn the call over to Phil.
Take you through the detailed financial results.
Bill is finished I'll provide an update on the progress against our 2020 revenue initiatives that open it up for questions.
For the second quarter 2020.
In the face of ongoing market supply chain and operational headwinds due to the cobot 19 pandemic.
Battery and energy products core revenues were up organically, 23% year over year.
Driven by strong increases in both our medical.
And government defense revenues.
When combined with the Sweet acquisition revenues.
Beginning in nearly fully offset.
Expected decline in communication systems year over year quarterly revenues I.
As existing communication systems contracts under the U.S. armies network modernization initiatives reached completion.
Well the company Q2 revenues were within 3% of the prior year.
In Q2 adjusted earnings per share.
18 cents per share.
The team built on the momentum from Q1.
And delivered solid sequential improvements in revenue.
Over 10% quarter to quarter.
Operating profit in earnings per share.
Each up over 55% quarter to quarter.
Regarding the cobot impact as an essential supplier to the end markets in which we serve.
Of course make quick adjustments to customer changes.
Such that the areas in Q2.
Cobot issues, resulting in revenue decreases.
We're almost entirely offset.
My ears Workovers demand.
To revenue increases.
This resulted in a relatively neutral no financial effect in terms of revenue and operating profit.
Although difficult to quantify.
The other areas, where we saw an impact from coated.
Once a lengthening in time to receive supplier in customer responses to complete transaction processes.
As well as in the customer testing of new products, which is understandable given the large mix of people working out of their homes.
Versus their work offices indoor testing facility.
A few minutes I'll give you further information on a revenue initiatives, but first I'd like to ask also like CFO, Phil thing to take you through additional details of the second quarter 2020 financial performance.
Phil.
Thank you, Mike and good morning, everyone.
Earlier. This morning, we released our second quarter results.
For the quarter ended June Thirtyth 2020.
We also filed or form 10-Q, one form 8-K.
The FCC this morning, and give updated our investor presentation.
You can find in the Investor Relations section of our website.
I would like to thank all those that helped make this happen.
For the second quarter.
So what they did revenues totaled 28 point sixmillion.
Representing 8.8 million were 2.8% decrease.
From the 29.4 million reported for the second quarter of 29 team.
The year over year variances reflect a significant increase in battery sales.
Ross diversified end markets.
Offset by lower communication system sales.
Selecting the completion of contracts.
We estimate that the net financial impact of Colbert 19 was neutral to our financial results for the second quarter.
Revenues from our battery and energy products segment were 24 point Onemillion.
And increased 18.4% over last year.
Attributable to a 71.7% increase and medical battery sales.
On a 49.8 increase in government defense sales.
Partially offset by a 33.7% decline in oil and gas market sale.
U.S. government and defense sales for the second quarter.
At the highest quarterly level in over five years.
The sale split between commercial and government and defense was 67 33.
Compared to 70 426 for the 2019 second quarter.
And the domestic to international split was 50 941.
Compared to 50 347 last year.
Driven by the higher domestic government and defense sales.
Revenues from our communication systems segment were 4.5 million.
Decreased 50.3% from last year.
The decrease reflects higher 2019 shipments.
Now to power amplifiers to support the U.S. armies network modernization initiatives under delivery orders announced in October 2018.
These contracts were completed in the second quarter of 2020.
On a consolidated basis.
Commercial sales increased 7.5%.
Government defense sales decreased 13.77% from the 2019 period.
Commercial to government defense sales split was 50 743.
Versus 50 149 for the year earlier period, demonstrating the continued success.
Our revenue diversification strategy.
Our consolidated gross profit was eight point onemillion compared to 8.9 million for the 2019 period.
As a percentage of total revenues consolidated gross margin was 27.9% versus 30.2% for last year second quarter.
Gross profit for battery and energy products business increased 6.6%.
The 6.0 million from 5.7 million.
Gross margin was 25.1% a decrease of 280 basis points from 27.9% reported last year.
Reflecting incremental cost in 2020.
Associated with the transition of a multitude of new products to higher volume production.
For our communication systems segment gross profit was 1.9 million a decrease of 1.3 million or 39.7%.
Compared to 3.2 million for the year earlier period.
Gross margin of 42.8% improved 750 basis points from 35.3% last year, primarily due to efficiencies and approved improved product productivity in the production vehicle amplifier adapter systems for the U.S. Army.
Operating expenses totaled 5.7 million compared to 5.8 million last year a.
A decrease of 2.6%.
Nonrecurring expenses, a point 2 million for the acquisition of Sweet.
Were included in the second quarter of 2019.
As a percentage of revenues operating expenses were 19.8% for both the 2020 and 2019 periods.
Operating income for the second quarter, 2020 was 2.3 million compared to 3.0 million for the 2019 period, a 24.6% decline.
Selecting the flow through of lower year over year sales for communication systems.
And operating margin was 8.0% for the 2020 period versus 10.3% last year driven by the lower gross margin for battery business.
Adjusted EBITDA defined as EBITDA, including non cash stock based compensation expense.
3.3 million or 11.6% of sales compared to 4.1 million or 13.9% for the 2019 second quarter.
On a trailing 12 month basis, adjusted EBITDA is 11.6 million or 10.2% of sales.
Our tax provision for the second quarter was 499000 compared to 676000 for the 2019 period.
Putative statutory rates, while excluding the benefits of our net operating losses and tax credit carry forwards for GAAP reporting purposes.
Accordingly, our reported tax provision for the second quarter is based on an effective rate of 22.9%.
While utilization of our deferred tax assets will drive the tax provision down to 108004 or 5.0%, what we actually pay our taxes.
We expect that the net operating losses and tax credits included in our deferred taxes will offset all your west Texas for the foreseeable future.
Including the interest expense on debt incurred to fund our 29 teams, we acquisition and using the 22.9% effective tax rate.
Net income was 1.7 million or 10 cents per share on the diluted basis for the 2022nd quarter.
This compares to net income of 2.7 billion or 14 cents per share on a diluted basis for 2019.
We utilize adjusted EPS to reflect actual cash taxes paid or to be paid.
And defined adjusted EPS, Yes, EPS, excluding the provision for noncash U.S. taxes expected to be fully offset by our net operating loss carry forwards in other tax credits.
As noted in a supplementary table in our earnings release.
Adjusted EPS on a diluted basis was 13 cents per share for the 2022nd quarter compared to 18 cents for the 2019 second quarter.
The first six months of 2020 fully diluted adjusted EPS of 21 cents was up 4% over 2019.
Also like to ended the quarter with a strengthened balance sheet.
And enhance liquidity.
With cash on hand at 8.4 million working capital of 50.5 million in a current ratio of 4.5.
During the second quarter.
Utilized cash generated from strong EBITDA accounts receivable collections and inventory reductions to reduce our debt by 6.1 million or 36.1%.
And our accounts payable balance by four point onemillion or 33.8% since the end of the first quarter.
We also deployed our increased operating cash flow for investments and test equipment to meet the increased demand for power supplies for ventilators respirators and infusion pumps.
As we navigate through these challenging times, we intend to carefully manage our liquidity to fund organic new product development.
Future capital expenditures and M&A.
While further reducing our debt.
As a result, we remain well positioned to weather the storm.
While continuing to invest in growth initiatives and staying focused on releasing a full leverage potential of our business model.
I will now turn it back to Mike.
Thank you Phil.
During the quarter, we continue to advanced our revenue growth strategy, which presently consists of the following three elements.
Marketing sales reach expansion primarily through diversification.
New product development, and multi generational product planning with strategic Capex when appropriate to drive competitive advantage.
In a disciplined approach to acquisitions to quickly gain scale.
And obtain market access technology, new products and skilled resources.
At our battery Andrew products business marketing sales reach expansion is about diversifying more into a global commercial and international government defense markets.
To lessen our revenue fluctuation as a result of Lumpiness.
In our core U.S. government defense business.
One of our first commercial diversification focus areas was medical.
And then market of mission critical niche applications.
Competitive differentiation based on quality and reliability.
And long term high value proposition customer relationships.
Why do we initiated our diversification strategy in 2011.
Medical represented approximately 3% of total company sales.
In Q2 2020, it represented approximately 33%.
Total company sales.
We continue to be the beneficiary of our diversification into medical.
As we currently find our battery and charger products well positioned in devices, serving several critical areas of the current cobot 19 crises.
We saw particularly strong demand from existing customers for applications and ventilators respirators and infusion pumps.
In Q2 2020.
Our medical revenues were up over 70% year over year.
Bringing our nine your medical revenue compound annual growth rate to 33%.
Including the acquisition of active Tronics in January of 2016.
In fact.
Thank you Tronics a record revenues in Q2 2020.
45% year over year.
Driven by strong demand.
It's medical battery packs.
Looking more closely at Q2 2020.
Core business key medical device battery and Charger project shipments were made for a wide range of applications, including breeding devices fusion pumps digital X ray and surgical robots.
We also received new delivery orders for existing customer blanket in a multiyear agreements which totaled $2.1 million.
Regarding southwest Electronic Energy Corporation, or Sweet acquired in May of 2019.
In addition to shipping its core oil and gas and subsea electrification products.
During Q2, the talented suite team stepped up to successfully manufactured and deliver on a short cycle turn around $1.7 million in medical battery packs for respirator application.
Serving the cobot 19 response.
It's also included part of a $1 million follow on order, which will be completed in Q3.
Not only did suite fulfill a key customer needs. They also demonstrated their capability and medical products, thereby expanding further our revenue growth opportunities in medical end markets.
For the recently compute acute completed Q2.
Fourth complete quarters part about her life.
This we acquisition provided 17% of total company sales.
It was once again.
It's accretive.
That being with the strong contribution of medical.
And now including suite.
Global commercial and international government defense market revenue mix.
Represented 59% of our total company sales.
Hi, good indication.
The diversification, which has helped us mitigate the lumpiness and unpredictability.
And be any revenues from the U.S. government defense market.
Finally.
Regarding beanies U.S. government defense customers, which includes transactions directly through the various giotti entities as well as your OEM crimes.
In Q2 2020.
Revenue was up 55% year over year.
And represent approximately 25%.
Total company sales.
In addition to solid.
OEM radio Ballard and shipments.
During Q2, we began shipping the recent 4.8 million dollar 53 nine deal I Sat Fi award with a balance expected to ship throughout Q3 in Q4.
We also received a small follow on five year I'd acute award for our nine volt battery.
The maximum value of approximately $900000.
Looking ahead.
The next generation 50, 390, and 50 790 primary batteries.
Under the 21 million dollar and 49 million dollar.
I'd like to your words, respectively.
I'll now entering battery build for the final first article testing, which is expected to begin in August September timeframe.
New product development and multiple generation product planning remain a fundamental part of our organic growth strategy.
Not only does is keep our products current market means.
It also gives us the opportunity.
Collaborate and remain close with our customers and provide value add.
Looking at battery energy products from a new product development perspective.
In Q2 2020.
15% of revenues.
Products introduced less than or equal to three years ago.
During the second quarter 2020.
Progress was made across numerous projects.
With examples including.
Continued shipments of our first public safety radio batteries with two additional public safety batteries entering production in Q3.
Starting production and shipments of a new digital X Ray battery.
Finalizing the validation of a new ventilator battery pack.
Expected to start low volume production in Q3.
And shipping the first 60000 since our batteries for a vital signs monitoring applications.
We also continue to deploy strategic capex to bolster our competitive differentiation.
In our Newark, New York USA facility.
Were $4.3 million capital investment is underway.
In Q2, we successfully completed UN testing of our new premium three volt product.
Low volume production is underway.
And we began shipping more samples to customers.
To date, we've shipped samples to over a dozen initial potential customers.
And we expect this number will continue to ramp up in Q3 in Q4.
Current initial single ship capacity is approximately 1 million cells per year.
With the plan might enhancements still underway.
And expansion to a multi ship operation, we expect are capable to increase.
Almost 10 times that amount within the year.
This new product provides customers with world class product performance.
Safety and a competitive price value proposition.
As well as the supply chain proximity and quality.
Being made in the USA.
It was sort of the rapidly growing aiotv wireless devices market.
As well as next generation three both smoke alarms asset tracking devices and metering.
With some initial sell applications targeting specialize illumination and medical applications.
We're also very excited about the opportunity to offer customers new customize battery packs.
Incorporating this new three volt sell.
Separately in China, We also have a new locally manufactured lithium manganese dioxide three of also.
Which is now shifting to global customers.
We continue to make progress.
Our final chloride Soppy project in China.
Bobbing numerous process improvements.
Which will help us expand our total available market with newly identified commercial and industrial applications.
Also included.
Dates to our self formulations and designs equipment and facilities.
Samples of a new high rate products began shipping to customers at the end of Q2.
With a low rate products expected to start sampling in Q3.
Our goal is to produce the highest value proposition that's claudian safest products in whichever one of our global locations that serves the supply chain of that particular end market.
And our OEM customer.
That communication systems in Q2 2020.
New product development revenue from products less than or equal to three years old.
Represented approximately 63% of communication systems revenues.
Including final shipments.
Vehicle amplifier adapters and power amplifiers.
For the US armies network modernization initiatives from previously awarded contracts.
Bottom line contract opportunities are anticipated.
Later in 2020 enter into 2021.
After operational testing evaluations are conducted.
By the us armies handheld manpack small forfeit and liter radio programs.
Looking ahead.
Communication systems remains positioned well for these opportunities within the domestic military radio market.
Through partnerships with Prime radio Oems.
And by providing products supporting both single and two channel.
Handheld and manpack Ancillaries.
Integrated state of the our solutions.
Regarding the system integration of cutting AD server technology discussed during the last few earnings calls.
Throughout Q2 communication systems has advanced the development of building of system integration components.
We have delivered three variants.
Support a broad range of operational requirements.
Small tech team support to fall Command Center integration.
These systems are undergoing evaluation and testing with potential customers and initial fielding of sold units.
A new initiative for our dismantle configuration as moving from concept to design activities.
With discussions ongoing with stakeholders and hold salad potential for a broad array of commercial and government applications.
Medication systems continues to be optimistic.
In this emerging growth area and OEM relationships.
As expected demand increases throughout 2020.
Overall OEM engagement for communication systems remains the highest priority.
And can you be strong providing ample new product development initiatives for integrated systems and amplifier platforms product support for fuel that products and new business development.
I mean emerging rate of capabilities being feel that globally.
In closing.
In Q2 of 2020.
We were delighted.
That was a carryover from Q1.
Of the operating complexity and market uncertainty related to the cobot 19 Pandemics.
Our employees globally.
Remain safe.
Stayed focused and delivered improved revenue operating profit and EPS over the first quarter.
For the first half.
Total company operating profit.
Year over year by 5%.
While the year to date total company year over year revenue is up over 12%.
First half adjusted EPS is up 4%.
Obviously, the ongoing cobot 19 breakout brings a significant amount of market uncertainty and supply chain challenges.
That said as demonstrated in the first half the teams are working hard to overcome the hurdles.
And have positioned us to continue to strive.
For another year profitable growth in 2020.
Looking forward with the initial announced tranches of a communication system contracts for the use armies network modernization issuance completed.
The near term focus will be in pursuing follow on a new program Awards.
In a number of smaller transactions.
Targeting seven active OEM manpack radio projects.
Several integrated computing solution opportunities.
As well as developing next generation amplifier prototypes.
At beginning.
Due to the carbon 19 response.
We see the president search and medical revenue continuing near term.
Which is helping to offset the current softness in our oil and gas revenues.
Activity levels overall from the various defense department contracting channels and global OEM primes remain positive.
Through the end of this year and into next year.
We're also very excited to realize the increasing impact of other new revenue streams coming online.
Such as from.
New public safety radio battery packs.
Q3 volt product line.
The new IAR product line.
Smart you went battery product.
57, Ninetys Cfx blend primary battery.
And several other news Vince medical and subsea electrification applications battery packs.
The Kobin 19 pandemic notwithstanding.
We aim to grow the business with profitable revenues, each and every year.
We like the fundamental nature of the main industries, we serve military defense energy and medical.
And believe that these end markets provide us with a level of durability and resiliency in good times in bad.
In fact.
On annual basis, the last five years running.
We have achieved both revenue and operating profit year over year increases.
We are targeting do so again in 2020.
The Corona virus.
We will continue to develop new products, that's important new revenue streams.
And we will continue to pursue acquisitions, where we can quickly gain scale.
And achieve further operating profit leverage.
We are fortunate that our strong balance sheet solid cash flow from operations.
Moving integration methodology.
And disciplined insurance to our business model.
Yes this flexibility.
Operator. This concludes my prepared remarks, we'd be happy to open up the call for questions.
Thank you.
If he would like to ask a question can you signaled by pressing star lowering your telephone keypad, if you're using the speakerphone. Please makes our UN mute function extend off to allow you guys Cigna Threed Jonathan.
Again this slide one to ask a question.
So just a moment to allow everyone that opportunity to signal for question.
Okay.
And now we've taken for next question from Getty Super sang from any ocular redness management.
Please go ahead.
Hi, Good morning, guys congratulations on another solid quarter.
Thank you my first question is.
I've been on some conference call for some of the Prime con or defense contractors.
And.
That said on various calls through through more than one company, that's been able to get from below decent reimbursement on kogut expenses.
I know you're not.
Prime contractor, but.
If you've been able to get any compensation for your cobot expenses I think a cross you three cents and the first quarter.
Yes, Thats correct, Gary we reported eight cents EPS in the first quarter and.
The cost us three cents cold the costs of three cents. The three centseight use that we speak up is most directly associated with the five week shutdown of our China, China operation.
And it was the unabsorbed overhead and all the expenses of keeping keeping the facility intact with nobody able to.
To do any work so we're not going to getting any reimbursements.
From the U.S. Department of defense regarding that worthy U.S. Department of Defense has been extremely helpful is the timing of their reimbursements on the direct contracts that we have with the DLD.
The payments as as I think we may have talked about this before usually we expect 30 days, we're seeing reimbursement and.
In a much quicker pace than that which is always greatly appreciated but that is really the extent of of the assistance that were that we're receiving in addition to.
Plus or a border so that we've seen coming through.
Okay and.
The also mentioned on some of these calls with the prime is that.
They're subcontractors.
I guess as you just mentioned to sell directly with DMD.
These primes are paying their subcontract as much quicker are you seeing that also from some of your customers. In addition from <unk>.
We are we are definitely because when you are producing.
A product for a critical application.
You know rule, one is keeping your supply chain intact from the customer standpoint, and there certainly there are certainly able to do that and it puts us in a position where we're able to keep a positive cash gap, which is always the goal of prudent.
Careful cash management.
Okay, and I know you've had the chance to live with coded and digesting suite.
Right I'm just curious.
With that pipeline looks like on M&A.
You know.
Prices come down.
Are you seeing more companies that booked previously due to price getting more realistic and have more companies come on the market for sale.
Right of the recession and co that.
Yeah. This is Mike we're still very active in the M&A area, we have multiple discussions given in any given time.
We continue to look for companies that they too have after we own them those stores continue to grow organically.
Clear roadmap to return and exceeding of our existing operating margin rate that the EPS accretive in the first year and that there are reasonable return on investment overall, and so applying that criteria, we continue to be very active.
Multiple discussions in any given the time.
As I mentioned I think on previous calls sometimes it takes several years to get somebody to actually get to the point, we're willing to sell.
But we like our position, we like our profitability like our cash flow, we like our access to capital.
We're certainly very very interested in doing acquisitions, and we don't Everything's announced today and we wouldn't until we were actually in a position to close and having closed the deal before we make an announcement.
It's still a very important part of our overall growth strategy.
Okay. Thank you and.
In terms of.
The balance sheet you guys has done a marvelous job on that it seems like in the first six months for the year cash is episodic million Bucks payables are down about 1 million billion and a half and a long term debt some was down 7 million.
Cash is just about equal to long term debt.
With that being said.
Is there any appetite for stock buybacks at the stock trading at book value with a solid first half.
No all options continue to be on the table Gary.
We have said before sort of our priorities are for organic growth first.
And including upturn, including Capex.
Acquisitions as we just talked about what our interests were.
If we still should have.
Excess funds available that we don't want to have sit idle, we would consider stock buybacks, but.
At this point, we're not talking about anything like that.
Hi, it's been a while Mike it's repaired any announcements on major contracts I mean, you didnt have there.
The major contract with that tell us.
And then a year two or two ago year couple of years ago, you had a bunch IB accuse in a row, but it's been quiet since then.
Mention smaller orders here and there what's the pipeline look like on potential potentially larger contract awards and announcements.
I mean, it's good point I mean, I was looking back and there were specific announcements in 16 17 18 19.
And lot of those radio queues and I think those are obviously the first step in terms of getting revenue from.
Our largest customers being the Deo Dean.
I think another really important aspect of that is is that it really doesn't count against the ledger until we actually ship revenue against it so whereas I think we have right now close to $100 million of I'd accuse.
Our intense focus is on getting those throughout the first article testing and all the other requirements of the government such that we just aren't getting delivering orders and showing revenue.
That being said.
We have some large projects as I talked about.
In my prepared remarks, particularly for Com systems.
And we don't have any clear visibility to exact timing of when those contracts with.
Yes.
There is something we spend a lot of our timeline. So we would anticipate larger contracts in the future, but in the meantime, we're trying to deliver for revenue realization the ones that we have.
Okay. Thanks for that.
And finally, just a little bit of commentary on my part I just want to congratulate you guys for doing or an amazing job. These last five years to.
Through thick and thin the economy is up and down.
To be or D fickleness.
And now co. Good are you guys have managed to increase revenues increase earnings increased book value.
The balance sheet et cetera, wander freight for the last five years.
That being said.
We're trading at book value.
We have 21 cents in six months earnings 24 cents adjusted for coated.
We are annualizing over 40 cents and earnings should be at 41 cents last year.
Next year, the I'd like Yours, you mentioned 100 million back yard tiers, which start contributing.
Next year three vote will start contributing next year the internet of things will start contributing next year. The lead a radio could go into full production from the L. reps that it's going on now.
So you're trading at like a 15 16 carbon PE and the stock market that has a 2021 PE with the S&P and one could reasonably conclude with all those things I mentioned starting to contribute starting next year and opposed co good environment.
50, 60 cents and earnings or more as possible in 2021, 2022, which would put us at about a trophy.
So.
While I give you kudos on what you've done and accomplished I think you guys have done a horrible job on Investor Relations.
With all this potential and all that success over the last five years.
Stock Shouldnt be trading at book at 12 times forward earnings.
Right. Thank you know you guys should seriously consider a new IR firm you should consider getting an investment banker you should consider hiring possibly a full time IR person and you should start attending these virtual conferences, where you don't even after travel.
You are part of the Russell 2000, now you're competing with 1999 other public companies that are looking for investor attention. So just to get a fair valuation on your company I think it's a function of getting that investor attention.
And the size of the 2000 companies and the Russell 2000.
As another five or 10000 other publicly traded small companies.
So I think gives you picked up that effort, we would have a much better valuation on the company, which would give you guys.
First of all would be nice for your shareholders to accompany properly valued pearl you've accomplished in over control.
But also obviously having to currency at a higher valuation you to more options with them and Eric.
So.
I hope you'd consider some of those ideas.
Thank you very much really appreciate them, but Gary.
All right guys, thanks, very much and congratulations again.
Thanks.
Thank you once again, if he would like to ask a question that platform.
It appears that have no further questions at this time Mr. <unk> I'd like to turn the call back to you for any additional of closing remarks.
All right up your operator, thank you very much and thank you once again for joining us for a second quarter 2020 earnings call.
We look forward to sharing with you our quarterly progress in each quarters conference call in the future.
As Bill noted and I'd also like to know that we update or investor presentation. The website.
So please check that out and everybody have a safe and a great day.
Okay.
This concludes today's call. Thank you for your participation you may now disconnect.