Q2 2020 CECO Environmental Corp Earnings Call
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I would now like turn the conference over to mechanical Chief Financial Officer CECO Environmental. Please go ahead.
Thank you for joining us on the Pico environmental second quarter 2014 converts call on the call today as Todd Gleason, Chief Executive Officer, and myself, a call Chief Financial Officer.
We began I'd like to no. We have provided a slide presentation to help guide our discussion the Colby webcast along with our earnings presentation on our website at <unk> Dot com. The presentation materials can be accessed through the Investor Relations section of the website I.
I'd also like to caution investors regarding forward looking statement.
Any statements made in today's presentation that are not based on historical facts are forward looking statement.
Such statements are based on certain estimates and expectations and are subject to a number of what's going on there.
Actual future results may vary materially.
Your implied forward looking statement, we encourage you to read the with described we're happy to filings on form 10-K for the year ended December 31st 2019, except for the except required by applicable security laws. We undertake no obligation to update well probably provide any of the forward looking statements that we make your today.
What are the result of new information future.
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Today's presentation will also include references to certain non-GAAP financial measures, we've reconciled the comparable GAAP and non-GAAP numbers in todays press release as well the supplemental table in the back of the slide deck.
I'll turn the call already got.
Thanks, Matt and I'm excited to be here today. So it has been approximately one month since I joined at the company's CEO. He does a privilege to lead CECO, we have a talented team and it's like get to better understand or opportunities my enthusiasm definitely builds.
We jump into the prepared remarks.
Half of CECO, we hope everyone is healthy and navigating the challenges associated with the Kobin 19 pandemic no doubt the impact to our personalized has been profound and of course, the global business environment has been jolted in ways not often felt in many ways.
All in this together so please stay safe.
Now, let's review the material.
Please turn to slide number three.
Given my recent appointment as CEO, we felt there was appropriate that I share a little about my background as well as what drew me to CECO.
It's hard for me to believe sometimes that it has been over 25 years. Since I began my professional career time flies and here, we are and I am grateful for the many people that have provided support for my development and the positions that added by preparedness.
I think if they're really three main takeaways I'd like to share about my background I would highlight the following.
First I've been fortunate to have a diverse background with respect to various business functions and personnel management roles. This diversity has provided oh breadth and depth.
With respect to growth strategies execution, and how financials speak to the truth of a company's performance.
I continue to learn and I look forward to continue to expand like skill set here at CECO.
Second.
A significant portion of my career has been spent and multi industry organizations, such as Honeywell train, which was American standard train at the time and pentair.
So CECO environmental has a very natural feel for me as I quickly immersed myself in the business and operational discussions.
And opportunities.
On top of that Big company experience I've been fortunate to lead in advance a private equity venture backed company anyone that has ever been in that more entrepreneurial environment will agree you develop a certain scrappy units and some new business muscles that more mature companies don't necessarily provide.
What all that means is that I will apply the appropriate processes associated from the academy companies. While also implementing some of the entrepreneurial muscle just she goes capabilities and strategies.
And third I've defined a significant portion of my career success being associated with companies that create above market shareholder value my compensation structure should be Andy is aligned with shareholders. Our stock will reflect how well we perform as a company. So I'm anxious to make an impact in some early car.
Her stations with external stakeholders. The question was presented why did I join FICO I'd summarize it is about fit and opportunity.
As I did my analysis of the company I came to the conclusions listed on the slide and each has been reinforced in my first month at CECO.
First the company is financially healthy in good shape and ready for its next chapter of growth. This is not a turnaround story, but a great platform from which we continue to build.
Like our products and our end markets.
I also like decides to see go I can make a real impact on the strategy and operations and over the past month I've gotten to know many of our 800 plus employees with almost half being engineers with a tremendous passion and enthusiasm to solve complex customer and market challenges.
Additionally, the company's board of directors is very aligned and focused on recurring revenue and high value growth. We have a great portfolio to drive heightened financial returns and a balance sheet that enable CECO to make appropriate investments to win.
In summary, I feel the best days are definitely ahead of schedule. The team is fantastic energized and ready to rights. He goes next chapter.
Lets keep moving please turn to slide number four.
This slide highlights three main focus areas. Despite the challenging environment, we made smart and strategic moves to better position our company in the markets, we serve and also our cost structure.
Our second quarter results were solid we took appropriate action to protect the health and safety of our employees. While also protecting the financial results of our organization.
Let's discuss each in a little bit more detail.
As noted toward the top of the slide late in the quarter, we announced the acquisition of environmental integrated solutions or E. <unk> for short.
The acquisition further increases CECO solution capability application depth and knowledge expertise.
It also provides greater reach into various European markets.
It may have been a small bolt on from a financial perspective, but we are excited for the opportunities it presents.
This week, we announced a joint venture between our Fox Flextor brand damper product line and made or machine company.
Combination of the two businesses damper products and entities will deliver cost synergies plant efficiencies and market leadership for growth.
It also gives CECO added strategic Optionality.
We will be the majority owner.
We also took action to align leadership across our industrial and fluid handling businesses.
New leadership structure enables more efficiencies and collaborative activities for growth.
And talent development.
Each move it's important to advancing seacoast portfolio cost structure and grow capabilities.
In the Middle section of the slide we provide high level highlights on Q2 2020 operating results.
That will definitely spend more time on this but I am proud of our 800, plus associates and how great. They performed in a very challenging and uncertain market by almost any measure the market environment was very soft.
Significant pause in late Q1 in early Q2 drove orders down approximately 40% as we booked 60 million in the quarter.
Trends did improve late in the quarter, especially in industrial and fluid markets and we did not have any cancellations and brought backlog which remains robust.
Sales were down 7% year over year, but gross margins in EBITDA were both up earnings on an adjusted basis or 14 cents per share up 75% year over year.
Free cash flow was negative $6 million inline with what we predicted on the Q1 earnings call of note. The company has produced almost $20 million more in free cash flow over the past four quarters, then we did into proceeding period of similar time.
Cash generation is critical to our investments and growth and we will continue this focus.
We took decisive action in the first half of the year, which bolster our results I'm proud of how well our teams executed in the challenging environment to deliver for our customers and produce he's very solid financial results.
Now let's go ahead, please turn to slide number five.
The new challenges brought on by the global pandemic no doubt forced a pronounced pause in many industrial markets and in each of our lives. Good news is that CECO has been deemed into central business to supply. These critical markets. We've instituted a variety of important health and safety protocols I wouldn't like to thank.
Our cross functional Kobin task force for jumping to action and ensure all our employees are well informed.
And most importantly, very safe.
We've also accelerated new solutions and technologies to ensure we can work remotely in productive and collaborative weighs.
On the right side of the slide we highlight various proactive measures we implemented in the first half of 2020.
Given the uncertain markets sudden impact to our businesses, we're taking decisive actions to drive more than $10 million an annualized cost reductions. These actions are important to maintain our financial health and ensure CECO strengthened position for the future.
One additional note the $40 million, we drew down from our credit revolver in March was paid back in full during Q2.
We have a very good cash position and a strong balance sheet no the health and safety of our employees and customers as of the upmost importance and the health of the Companys financial position, it's on solid ground too.
Let's turn to slide six which provides detail on orders by market.
On the left side of the slide you can see the market's associated with our energy segment products and solutions and on the Rightside you will see the industrial and fluid handling order numbers I won't read all the numbers by Submarket, but the double digit declines in orders in almost every market do reflect the dramatic reduction.
And in capital expenditures in various energy markets and the pause most industrial companies witnessed in late Q1.
In early Q2.
We did see improved orders in many of these submarkets, especially in industrial and fluid handling as the quarter progressed and again, we have not had any cancellations in our backlog.
We did start to see pockets of strength in food and beverage.
Sense and certain process water solutions sales so.
In Q3, we're happy to report that we continue to see a steady improving order trajectory.
We'll continue to execute well I will now handed over to Matt who will give more detail on our financial results and specific market commentary, Matt. Thanks, Todd will start to slide eight.
There's a 60 million were depressed at markets pause significantly in the wake of covert 19.
The spread has increased customers remain judicious in a capex spend decision impacting our order book.
The left Bar chart shows overall orders decreased 21% sequentially at 42% year over year.
Already with energy all end market verticals were down refinery fall several awards delayed for several quarters. What we're seeing is that while utilization of low I've been indicator for retrofit typically demand is equally low coupled with crack spreads that are well below the five year average.
The findings are being passed and most convert conserve cash.
That's where the inch back from severe April alone, but we think this market, where we challenge for 69 month.
Jim on gas is down 67% as compared to the prior to this quarter. However, as we've previously mentioned last year in Q2, we booked a double digit middle eastern oil storage project, they do for even tougher comp in its current period.
Midstream market has not been hit as hard in the upstream market.
Covered in this market likely early 2021, and MLP and midstream company look to conserve capex.
Powergen Nat gas markets were down 5% as news from the Big three German Oems remains down.
Tom It from leadership suggest overcapacity of a large turbine market remain in cold. It has prolong the downturn as electricity demand wanes, our people and Aarding brands continued to be well positioned to serve our global customers. We are proud to advance the customer feedback that we provide superior product and service offerings.
In total we see energy markets being muted for a few quarters as capex spend is delayed into 2021 and new budgets are set based on lower demand.
For these reasons, we're taking broadly <unk> business unit cost actions.
I pod already highly greater than $10 million of annualized cost actions are inclusive of the 1.5 million reductions executed last quarter and excellence will have the onetime Q2 for lower wage God awful communicating most actions have been executing Q3 with sound that will fall in Q4.
Briefly expanding beyond energy.
As many of Rad industrial markets slumped heavily in April and May and global production halted the spread of coding.
Our industrials in fluid business were no exception.
Industrial segment orders were down, 35% and fluid handling was down 23% year over year.
While the longer term outlook for industrial markets with quality wouldn't even pending election in November we are encouraged by the monthly sequential orders trends moving upward in June and July for industrial influence.
During your eye towards the Bar chart on the right you'll see the revenue came in at 75.2 million, reflecting a decline of 6% sequentially, it's 7% year over year.
Well covered my team we saw a decline in sales in April and May I know sub contractors were shut down in Canada, Italy in India.
At the quarter progressed, we thought noticeable acceleration in June as our vendors returned to work as a reminder, I failed to recognize as a percent of completion using the cost the cost nothing but as our production partners. There do you project. So goes our revenue.
I'm pleased to see our backlog starting to turn faster.
The final point of affirmation outside of India, All FICO production facility and partners are up and running full speed.
Moving to slide nine our backlog remains healthy at 204 million.
Given the current market conditions, we're obviously pleased to have the solid bank future revenue.
Five months into the crisis I'm pleased to report a cancellations have been immaterial and delayed projects are starting up again I tip My hat to our project management and engineering teams that have a working remotely with customers and that is a like the key project on time and on budget.
Now on slide 10, and our key profitability measures.
Gross margins remain healthy of 34%, which is up 1.3 points year over year, but down 90 basis points sequentially, driven primarily by a project mix.
We look into the second half of 2020, we're anticipating margin rates that you're closer to 30% temporarily as a large percentage of the double digit middle Eastern oily water separation project is converting to revenue and margins below our FICO average.
We're putting costing our shop, SG, ne and driving productivity to offset the temporary NIM pressure.
Touching on non-GAAP operating income in adjusted EBITDA, both measures were better than the previous Q2 and sequentially what were aided by the proactive cost measures taken in April and the furlough, it's skewed in the core.
Next.
Slide 11, which summarizing several of the metrics are we discussed on previous trend charge.
Okay again, our quick response, the cost measures led to solid operating results in a challenging coded corridor.
Touching on just a few highlights not otherwise cover earnings per share was nine cents on a GAAP basis down fixed on your here driven primarily on a one time tax benefit recorded in Q2 of 19 associate with the young Li divestiture.
On a non-GAAP basis, if you have to 14 affected the quarter up six cents year over year or higher gross margin lower asps unite and decreased interest expense.
Non-GAAP tax rate was 25% in a quarter and we anticipate maintain that breakthrough 2020.
Are you on slide 12, as projected our free cash flow wasn't usage in the quarter at approximately $6 million.
Endless streak of four quarters of positive free cash flow predicted headwind in Q2 was due to timing of large projects that drove projected related purchases ahead of our scheduled billing milestones.
So what is really project timing.
All signals point to help and our working capital inventories were flat sequentially and aging of our accounts receivable remains in line with historical averages.
So in summary, the driver for increased working capital tied back to where we are in the lifecycle you project and we previously discussed the Companys free cash flows are lumpy that is the nature of our business. If you normalize the lumpiness I remain focused on the fact that on a trailing 12 month basis or TTM.
We generated 17.3 million to free cash flow, which is 99 versus the previous trailing 12 month.
Both our major focus within FICO, and we continue to be committed to driving a greater than 65% free cash flow conversion EBITDA on a TTM basis.
Including on slide 13, our balance sheet isn't a solid position to whether these unprecedented times.
Q2, we use our strength to our at a targeted valuation.
Which did increase our debt through a very comfortable 80 million.
Ratio increased only 20 bips from the prior quarter, our net leverage ratio remained sub one we have ample capacity on our revolver as Todd mentioned briefly we paid back the $40 million on the revolver that we drew down in March we have great support from our syndicate banking partners and they understand how important is to navigating the challenging environment and also.
So fun important strategic investment, we look forward to maintaining a strong relationship for the long term.
Before I hand, it back over to Todd I like to Echo <unk> comments with respect of personal thank you to our production field service and commissioning team member that FICO their unwavering commitment continued to deliver car customer. Despite the challenges I'm grateful to you and your family for your servant leadership, the FICO and our customers.
With that I'll turn it back to Todd.
Thanks, Matt as we look forward I will just highlight a few more topics and if we look forward to your questions turning to slide 15, CECO has a very unique portfolio addressing some of the world's most important challenges and opportunities clean air.
Meanwhile.
Serving our customers. So they can more efficiently produce their end products well operationally protecting their equipment.
The workplace environment and the natural environment, that's what we serve and we will continue to focus on expanding those solutions.
We will steadily advance our investments in key prioritize markets, we have a very good and diverse product portfolio and we will continue to explore how we can add more recurring revenue and sustainable solutions.
This is a real opportunity for CECO all the while we will be focused on innovation, where customers needed most and providing flexible business models in areas, where we can drive more growth I'm excited for our future.
Speaking of how we think about the future, let's move to slide 16.
Over the past number of quarters. The company has highlighted some mid to long term financial goals. We are evaluating how those goals my transform as we navigate the current environment and of course with my leadership. However, let's be clear, we remain committed to driving elevated levels of sales growth.
Margin expansion and stronger free cash flows. These are highlighted on the slide we will expand on how we are driving these in the coming quarters and of course, as we articulate our strategic vision.
Opportunities within Cecos current portfolio are very attractive both in terms of growth and operations and we look forward to delivering strong returns and increase shareholder value.
Please turn to slide 17, and thank you for following along on this material, we're anxious to get to your questions, but once again, we would like to thank the team CECO.
We will continue to focus on health and safety and we will continue to deliver for our customers in the quarter, we had solid execution and we are in better position with our portfolio moves that we discussed the I.S. acquisition has already integrated and collaboration is delivering new opportunities and the joint venture provides so.
Synergies and strategic Optionality.
The actions, we have taken and we'll continue to take bolster our financial results and position the company for more efficiencies.
Our leadership team has aligned and we understand the demands required to deliver shareholder value.
Lastly, and once again I'm excited to be at CECO, we have a tremendous team a range of opportunities to continue to win and I look forward to our next chapter with that let's open the line for questions.
We will now begin the question answer session to ask a question you May Press Star then one on your Touchtone phone, if you're using speakerphone. Please pick up your handset before pressing the keys to withdraw your question. Please press Star then to at this time, we will pause momentarily to assemble our roster.
Our first question comes from admit they all with H.C. Wainwright. Please go ahead.
Thank you a good morning Dawn good morning, Matt first of all our Governor Michelin starred down in new role.
Already have ought to be useful I'm, sorry, Europe, when so you see that.
I'm just.
Moving on the recent deals.
How should we think award contributions coming from these transactions in two there is still going to journey and then going into any green.
Yeah, I'll, let Matt that's sort of talk about the financial side, and then I'll make a couple of comments on top of that but it's a pleasure to be here and thank you have met for the comments.
Yes, so for yeah, Yes, you know we talked about that in a press release on what you should consider as far the size of the I asked for the second half of this year.
We expect to wrap around that it's the contributed another $10 million of revenue in the second half of the year at that margins that we mentioned in the press release that our EBITDA margin inline or better than what see glass as far as part of the joint venture. It's quite small you know the major dampers piece is bringing in roughly $10 million or revenue in a million dollars.
With that on an annualized basis, and Fox business that we contribute it was roughly around $15 million revenue and $2 million EBITDA. So these are two smaller business with play in a mature market and.
The point is around cost synergy and we plan to start to execute those here in the near term, but they won't contribute.
Yes, well or sorry made or will not contribute a significant amount.
Second half of this year as far as a.
Modeling goes of EBITDA in revenue.
Just to build off that a little bit in respect to both of these transactions I'll talk just quickly about the integration of yet gone extremely well already working and collaborating so you know we expect maybe you know as we as we exit this year and go into next year, there's going to be even more growth operates.
<unk> as a result of their position in the market and how we're working together already and then on the joint venture side also the integration is it as Matt mentioned, it's relatively small but these are businesses that are very complimentary in terms of in terms of being integrated together quickly and smoothly. So we think those cost efficiencies are also.
I'm going to going to translate into joint venture.
Nothing potentially consider.
I visited a group are there maybe business lanes that.
Already exist in the come through that you may want to exit.
Got any possibility.
Yeah, you know I think for us in terms of commenting on M&A on a call. We're you know that you know, we certainly understand our portfolio strengths and those are areas that we want to investing organically and internally. How we think about building off of that from an M&A perspective, both in terms of acquisitions and divestitures I think you know.
We're taking the appropriate process steps to evaluate where we have opportunity and I think that's really where we're going to you know sort of stop on the call here, but absolutely a strong balance sheet, and a and but tons of growth opportunities just within our portfolio.
Just one last one from me I'm just trying to me.
With respect to sort of the remainder of the your.
This given the commentary and sort of the outperformance relative to our expectations for the second quarter should we be looking for sequential growth units for Threeq, you're gonna, maybe even some of you.
Yeah. So I'll take that one you know we enter Q3 with $205 million a backlog Oliver operations are active we said of course for actions that were moved $10 million or greater of annualized cost saving.
That's pretty much in line to offset lower volumes that we expect now we do think.
Second half that you're going to see a sequential pickup in revenues that backlog turned out and so you know you can expect that operating income should improve just like Q1 Q2 did ask for orders you know we have seen a three month increase through July which is positive you know, but we're not counting on <unk>.
<unk> recovery, so what podnar talking about is controlling our own destiny here you know we're focused on cost in the near term and you know we're interested in right now is focused on how to deliver sequential improvement in the second half and 2021, Yeah. We'll go to market will give us what gives us we're focused on cost with the current period.
Understood. Thank you, Matt that's all I have.
Thank you Matt thinking that.
As a reminder, if you would like to ask a question. Please press Star then one.
Our next question comes from Jerry Sweeney with Roth Capital. Please go ahead.
Hey, good morning, Titan, Matt Thanks for taking my call and Todd welcome aboard.
Jerry more Gary good morning.
Hey, I'm not going to start a high level Todd.
This is broad brush not sure if you want to answer it but you know.
Time train pentair.
Some other places bought a company that not afraid to pivot towards growth.
Probably have some strong feelings of where maybe from industrial landscape is headed there any again its abroad broadbrush any areas that you're saying.
Have large better growth opportunities or areas. They want to explore you know from a strategic standpoint or is it still too early really to get into that type of question.
Yeah, I think it's big look it's a fair question, Jerry and I understand the interest here's here's what I'd say first of all I really think that CECO is well positioned for growth.
Matt.
Yes, and the organization have done a tremendous job over the last few years of really streamlining internal operations and process. He and I think some of that showed through in Q2 results certainly in terms of cost actions. The organization took a in reflection not only of the challenging environment.
But also because the organization is really a capable of strong productivity and that and I think the execution of that showed up in terms of how and where we grow.
We we very much are interested in continuing to build off of businesses that we have for opportunities that we have for I think I would call. It a more sustainable growth profile recurring revenue.
Areas, where we can.
You know, we can grow aftermarket opportunities as well as idle equipment sales, we have a very good and growing business in application design systems solutions.
And so those are really areas that we can just really focus internally, we have a big opportunity geographically still for us as well in our current portfolio. They go. After so you know look I think out for me. The main focus right now is really getting to know how and where we can continue to win and as Matt.
Said control around destiny, not only in terms of cost in cash, but really in terms of bringing new growth process, even new growth muscles. The business is that still have ample opportunity and as far as you know beyond that Oh, Yeah look I mean, absolutely have some good experiences in different industries began small.
In some of those organizations were somewhat acquisitive and others like trained air conditioning and American standard train at the time, we didn't do a single deal and the time that I was there and yet grew revenues margins free cash flow and shareholder return tremendously. So there's just an opportunity here for us to just get better every day and that's our focus.
Got it that's fair and I know, it's only been in a month. So I appreciate that shifting gears, just maybe a little bit more towards Matt but.
Summarizing some of the end markets.
Through a little bit out there but.
Energy remains muted electricity demand down.
Also sounded like midstream was that a little less.
Impacted than you anticipated so that's a positive, but maybe looking at fluid handling and industrial.
Again, not expect a V shaped recovery, but if you're looking at orders and activity.
Yeah, as we stand today or you think we're sitting at maybe 80, 85% of where you where may be going into Q1 or your original vision of this year or are you still little behind that or or or maybe a little bit above that just trying to.
So a little brackets around it.
Yep.
I think that will give you more financial detail or percentage answered. This is Todd let me just make a comment that came through I think in some of our prepared remarks, but but if they did or didnt, especially in industrial and fluid. The the depth of the of the market was.
So far at least.
In April and May sort of the earlier part of the quarter.
And then as we as we cruised through June.
Those.
Strengthened for sure and we saw that in other markets as well around energy, but I would say that you know, we feel that industrial and fluid and have started to hit their stride again, there's there's way more opportunity in each of those businesses I'll make that comment and then handed over to master kind of talked about some of the finer points yeah, albeit the elections are coming industrial solutions.
Pretty good through July and a the pipeline is definitely filling up when April and May were extremely tight as far as a run rate business that is you know our fluid handling solutions, we've seen a pick up there and an inquiry you know they have rebounded pretty covered just yet but out of the doldrums of.
About April and May certainly yeah, I did use the word muted on energy you know I am still optimistic that our team find other avenues other applications to win here I think their refineries probably one of the more challenged markets as I mentioned on the call due to crack spreads and annualization, but we have a fantastic market position, there and when that rebounds, we're gonna be a part of that.
So.
It's really about the Nat gas turbine market in midstream oil and gas we had a great water business.
Where are we separate water and reproduce I put it back into the system and that business is growing.
In the Middle East and in North America, So I'm pretty pleased with what the teams able to do and hopefully we can beat the trend of what's happening in energy over the next few quarters.
And then not one final question, yes, I know, we talked a little bit about.
Around that but yeah. The other way I was looking at as maybe a foothold in Europe.
Cross selling opportunities.
I think even Todd mentioned geographic expansion with an opportunity.
Any any thoughts on using that vehicle as an opportunity to get bigger in Europe in is that.
Fruition or.
Again, I guess covert theres, a lot of moving parts, but very high level broadbrush.
Yeah, I think at a high level, it's a good officer, it's the right observation in the sense that look first of all the acquisition made a lot of financial sense for both sides number one and these are no order, but I'm just going to click through and number two it does provide us with a nice geographic expansion foothold as you say I think number three E. Yes.
Some fantastic position in a couple of markets that does that CECO didnt necessarily have and and I think also it's an integration did it moves very quickly for Austin for them and we're already.
Mostly done what the actual integration Theres a few areas that are just very much on schedule, but the collaboration between the teams is very strong right now and so as we think about you know utilizing E I guess and expanding into the markets, where they have strength that's absolutely our focus.
And you know we're pleased with the early returns and results already and excited about what's done Q3 orders already looked like between our two combined entity.
And you know if you think about some of the segments like the aluminum.
Areas that they are strong they are they really do open up some new doors for us.
And in terms of beverage et cetera. So again, our view is it was a smart acquisition from a market perspective financial perspective, and it's an integration that we were prepared for and have already executed.
Great guys I appreciate it I.
I know, there's a lot of moving parts. So this is very helpful and thanks again.
Thanks Jerry.
Again, if he would like to ask a question. Please press Star then one.
At this time there are no additional questions I'd like turn the conference back over it taught gleason for any closing remarks.
Yes. Thank you.
It's a it again, it's a privilege to be here with everyone today.
And and of course with CECO.
Once again, we'd like to thank our team for a strong execution in an uncertain time.
We are focused on health and safety of our employees, our customers and everyone did we encounter in our markets and you know our our coven programs and policies are are in place and keeping a safe and healthy. We hope the same is true for everyone out there. We look forward to the second half of the year for me personally.
Already hitting the ground running with organization a lot to do a lot to learn about I'm pleased and happy to be here and we look forward to a upcoming conversations with each of you. Thank you.
The conference has now concluded.
Thank you for attending today's presentation you may now disconnect.
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