Q2 2020 Commercial Vehicle Group Inc Earnings Call
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Ladies and gentlemen, this is the operator your conference is scheduled to begin momentarily.
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At this time, all participants are in listen only mode.
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I would now like to Kinda conference over to your speakers today, Mr. Cook Filer, Vice President corporate development and Investor Relations. Please go ahead Sir.
Thank you Amy and welcome to our conference call.
Joining me on the call today or Harold be best President and Chief Executive Officer of commercial vehicle group, and Ed Carney interim Chief Financial Officer and Treasurer.
They will provide a brief company update as well as commentary regarding our second quarter 2020 Financial result, we we'll then open up the call for questions.
This conference call is being webcast and a supplemental earnings presentation available on our website.
Both may contain forward looking statements, including but not limited to expectations for future periods regarding market trends cost saving initiatives and new product.
Initiatives among others actual results may differ from anticipated results because of certain risks and uncertainties.
These risks and uncertainties may include but are not limited to economic conditions in the markets in which CBD operates fluctuations in the production volumes vehicles for which CBG as a supplier financial covenant compliance and liquidity.
Risks associated with conducting business in foreign countries and currencies and other risks as detailed in our FCC filings.
I'll now turn the call Roberta Harold be best to provide a company update.
Thank you Kirk and thank you everyone for joining the call today.
Ed and I are going to refer to the earnings deck. That's available on our website as we speak this morning, and bring our results for life a little bit.
And I'm, referring right now some of my comments to page three in that deck.
I'm I'm proud that our global team responded appropriately during this downturn and delivered positive EBIT da of a little over a million dollars and generated cash of little over $9 million. Despite a 48% decline in revenue.
We're able to offset some of that margin hit with a very aggressive and comprehensive set of cost outs, which I'm going to elaborate on in a couple of pages of which $8 million showed up in the quarter than a larger amount.
Full year annualized basis. It was a combination of permanent and short term actions included.
Corporate overhead reductions plant overhead reductions footprint consolidation as well as additional actions on discretionary spending.
We also offset some multimillion dollar impacts that are in that $1 million of EBIT da and 9 million of cash.
As you would expect and have abrupt downturn like this we did have overhead absorption issues in the plant.
We had excess inventory calculations that we needed to absorb.
We had kobin related absences, we had temporary closures of our facilities.
We reconfigured our offices and our 25 plants.
To add barriers and create social does something for approximately 7000 employees. It's a lot of work.
We're happy to say that our core markets are now in recovery mode at the bottom of page three as the AC T. Research report and the outlook for our core market about 35% of our revenue is North America truck, that's always been the heartbeat of our company.
And when that market took a dive and the second quarter it affected us.
And we're happy that that was that abnormal in on natural level of truck building is behind us and we have quite significant increases underway as we speak we're feeling.
Our internal results are consistent with these outlooks.
And the heavy duty truck build market is expected to increase 50% in the quarter that we're in and medium duty 30%.
So turning to page four I'd like to elaborate a little bit on the comprehensive actions that we talk.
We have several actions and process and we completed some actions in the quarter.
We did use the opportunity of light demand to initiate an aggressive consolidation and we purpose thing of 13 of our facilities.
We have 25 facilities. So it was roughly half the facilities that we went after here to optimize and reposition.
We were able to achieve a $14 million inventory reduction in the quarter as well primarily by attacking procurement activities as our consumption or production rates were much lighter than we expected.
We right sized our staff.
And ask DNA as well the plants and we right size, our material order quantities to be consistent but the amount of production that we had and we reset our discretionary spending decisions and travel marketing and other discretionary areas.
We have improvements that are still underway that are not in our <unk> Bruce reported numbers here, we have consolidations that are underway.
And we have some additional headcount actions that are that are forthcoming.
So we have we have a full complement of actions that are very aggressive third point I want to make is that we did not radar future.
Oh, we kept going with the growth initiatives that we have underway and we had some strong winds in the quarter.
Their private we can't say, who the customers are were covered by India, but there are significant.
And we had over $100 million new business. That's in its final stay just now.
One with an electric vehicle customer along with a warehouse automation customer and I'm going to touch on both of them in a couple of flights.
We are aggressively adding people and capacity to support these growth initiatives and add to our heritage of commercial vehicle part making.
And on page four just the Ticky a quick on a actions that are in process. We're consolidating a re purpose think 12 facilities rightsizing, our salary staff and discretionary spending we're hiring new leaders with knowledge of new markets, where redesigning our supply chains to be more lean and we have a strict management.
Working capital under way that's continuing.
Turning to page five.
Another positive point is that there's a multiyear recovery expected in commercial vehicle production.
This is again as an AC T. research report that referring to.
And our customer dialogues are consistent with these outlooks.
There's an expectation to recover back to pre covered level.
And we will be recovering back to those levels with a lower cost structure weve permanently lowered the breakeven point of this company and our cost structure and we do expect to have better margins at this unfolds.
Additionally, we do expect to have additional revenue from the new business wins, beginning in the fourth quarter of this year.
Turning to page six we are aggressively trying to change in certain areas. We're very proud of our apart making heritage for commercial vehicles, and we continue to remain a leader in those areas and their core to what we do but we are trying to add significantly to the revenue profile and our profit right.
It's going forward.
Three main areas are really leadership innovation and new markets. We are supplementing the strong team that we have here with new people that have knowledge of alternative markets.
And were Kickstarting and innovation program to be much more aggressive the new product introduction across all our divisions and we're explicitly entering new markets again by repurchasing a portion of our manufacturing capacity and adding leaders who understand these markets and have them be the tip of the speaker for us as we enter in and shoes.
Correctly and target correctly.
Page seven.
We're pivoting the company towards these new markets tilting towards these new markets and there's three parts to it there's optimizing the financial performance of the business that we have.
Number two is adding the people and growing outside of our traditional markets and number three is building on the strong momentum that we already have the FSC acquisition was really good one got a great team there.
And we got a lot of new customers that add to our customer roster and completely new products at assembly of high speed automation equipment for warehouses as well as military equipment.
And there's a little graphic on the bottom on page seven of what we're trying to do we want to maintain our business and our shares that we have and our traditional markets and grow disproportionately and the new targeted markets that we have.
Page eight.
We do have a multi period reposition of our footprint underway.
And this is just a graphic to show you what we're doing we're implementing a set of actions that's involving many many people.
I won't take you through the different plant a agenda, but we are repositioning factories in three countries, China, Mexico, United States, we're adding dedicated floor space to make new products, we're consolidating production to lower our cost points in mature product areas and we're consolidating where we.
Made a determination that we have excess cost in excess space.
We expect it to generate an ability to support another hundred $150 million of new business and our targeted markets mix dependent that's a big range because the mix and the size of these products is quite quite different and unique.
Additionally, we do our we are targeting to lower our cost by $46 million as we go through this repositioning.
On page nine I want to talk a minute about the fast growing E commerce and last mile delivery market, we had our first big win in this market.
Our with our unity seat you see a little picture here, we have a global platform are rolling out across our seat factories.
And were absolutely trying to penetrate the medium duty commercial vehicle market as you know trucks or delineated by the tonnage that can carry.
And the medium duty product line to medium duty trucking is growing nicely around the world and that's driven in many cases by E Commerce and last mile delivery. There also coupled with a trend away from combustion engines to electric vehicle propulsion.
And in this quarter, we had a big seeding win with a company that's focused on using electric vehicle for last mile delivery.
Once again, we're not at Liberty to say that company is a further the privacy agreements that weve agreed to Ah, but if someone that you would be happy that has entered into our customer roster. This is a growing market.
The ecommerce market as we all know is growing rapidly, especially boost it a little bit during the krona virus as people have stayed at home and huddled at home and order more online that it was expected even.
Page 10, just a little bit more about our growing warehouse automation business. This was a key reason why we went out looking for FSC Onesource electronics.
And we're leveraging their know how and relationships we've brought into play three other factories within commercial vehicle group to make their products.
In the quarter just ended we expanded from one facility to four and it gave us a bigger footprint to accommodate both growth with the customers they had as well as new customers.
And this market, it's absolutely central to what we're trying to be and add to our commercial vehicle heritage. This business is growing nicely. It's hard it's expected to grow $27 billion.
And we are a central player in this business right now.
Page 11.
We are absolutely navigating near term market disruption. This has been very disruptive what's happened in our traditional markets our customers abruptly closed down their factories given that we are Jay I T supplier to them, we abruptly shut down as well then they restarted then we had to rehire, we previously put out an 8-K.
Okay that we had to lay off 5250 people.
When this happened we've now rehired over 4000 off them.
So it was an abrupt layoff furloughs closures restart rehire that we've been through it's behind US now what happened during the quarter. It happened in April mainly.
But right now we're experience the the HCT forecast that we've seen we're experiencing that kind of outgrowth back as well.
We continue to invest right through here with a long term investments and hiring people you can see a graphic medical housings to add to our plastic parts business warehousing equipment and designing of new products. These are the the pictures here.
Page 12.
Just to recap it a little bit on the four focus areas that we have underway to pivot and and change the companys profile number one is to optimize the core business. That's cost that's working capital that's on time delivery that's quality we also.
Never really special aftermarket business.
That were differentially focused on now to to grow and then there's we have a new look that we're taking at certain business. It's never made much money for us and making new decisions I've spoken about the electric vehicle market a little bit each of our businesses is trying to win in this market electrical vehicle Mark.
Okay.
The warehouse automation business led by the FSC team and now supplemented by other commercial vehicle group team is or is leading to a major charge and to the into that market.
And we're we have excellent customer references and the ecommerce business is absolutely exploding and the the delivery business through internet ordering as it is unbelievably growing so we're very happy to have a footprint in there.
And then new markets. All together so were we have great equipment, great people that know what they're doing and were repurchasing a big portion of our capabilities to be able to grow when these no new markets with new customers and new products.
So page 13.
We're embracing new we're embracing who we are.
And really today, our heartbeat is all about commercial vehicle.
We're proud of that.
We're adding new approaches new direction and no decisions to add to it in it and warehousing electric vehicles and new markets on top of it.
So all in all the quarter was a tough one really tough when really hard on a lot of our employees. The temporary actions we had to take.
The layoffs, we had to do the shutdowns we had to go through the people that got sick with Corona virus themselves.
It was that it was a tough quarter, but we're through it.
Throne of ours are still here, we're set up to deal with it and in our factories and then our offices.
And we're working through it and and attacking these new areas.
So with that I'd like to turn it over to add Carney Ed join during the quarter almost thankful that Ed joint He's our interim Chief Financial Officer, we put out an announcement on that.
In working hand in hand going through this quarter.
And Ed if you could take it from here please.
Thank you Harold and thank you to everyone.
It was going on the call today I'm on page 15 now.
Second quarter, 2020 revenues were $126.9 million compared to 243.2 million in the prior year period, a decrease of 47.8%.
The decrease in revenues reflects the sharp declines in sales due to the coven 19, pandemic and market declines and more specifically lower heavy duty truck production in North America and in the global construction markets, we serve partially offset by an increase in industrial and military revenues primarily attributable.
To the FSC business.
The company reported a consolidated operating loss of 10.5 million for the second quarter of 2020 compared to operating income of $15.9 million in the prior year period.
The operating losses, primarily attributable to lower sales volume and second quarter special charges. The majority of which are in the us DNA line item.
The second quarter 2020, adjusted operating loss was 3.6 million when excluding these special charges.
As Harold mentioned the impact of the decline in sales was partially offset by successful cost reduction initiatives.
Net loss was $12.5 million for the second quarter of 2020, or 40 cents per diluted share compared to net income of $6.1 million in the prior year period or 20 cents per diluted share.
As a final no we achieved a positive EBIT da of $1.2 million in the quarter, which are the result of a global team effort to offset the challenging market conditions, we faced.
Turning to our segment results.
For the second quarter of 2020.
On page 16, electrical systems revenues were $74.2 million compared to $141.9 million in the prior year period. This decrease primarily resulted from the sharp declines in sales due to the coven 19, pandemic and market declines and more specifically.
From lower heavy truck production in North America and in the global construction markets, we serve partially offset by an increase in industrial and military revenues, primarily attributable to the FSC business.
The electrical systems segment reported an operating loss of $6.2 million in the second quarter of 2020 compared to operating income of 13.9 million in the prior year period.
The operating losses, primarily attributable to lower sales volume and the second quarter results include special charges, which are mainly in the SGN a line.
Second quarter of 2020, adjusted operating loss was <unk> point $7 million when excluding these special charges.
Moving on to slide 17.
And the global seating segment.
Revenues declined to $53.9 million in the second quarter of 2020 compared to $105.3 million in the prior year period, primarily resulting from the sharp declines in sales due to the Govan 19, pandemic and market declines and more specifically lower heavy duty truck production in North America and in the global.
Construction markets we serve.
The global seating segment reported an operating income of $1.5 million during the second quarter of 2020 compared to operating income of $9.4 million in the prior year period.
The decrease in operating income was primarily attributable to lower sales volume and the second quarter results included special charges associated with ongoing restructuring in the initiatives.
Second quarter 2020, adjusted operating income was 2.1 million when excluding special charges.
You are following along with me please turn to page 18 in the deck.
At June 32020, the company had liquidity of $106.6 million, which is made up of 63.4 million of cash.
43.2 million of availability from the revolving credit facility.
This concludes our prepared remarks, I'll now turn it over to aiming for couponing.
At this time, ladies and gentlemen, if he would like to ask a question. Please go ahead Im Press Star then the number one on your telephone keypad.
If you would like to withdraw your question you May press the pound key.
Your first question today comes from the line of Mike Shlisky with Colliers. Please proceed with your question.
Hello, gentlemen, this is Jay could Parsons on the line from Mike Shlisky. This morning.
My first question has to do with.
Your new electric vehicle arrangement would you say is that with the currently major existing truck provider or is that one of the newer startup that kinda up and coming on the horizon.
Good question, Jason This Harold good morning is a new customer.
Okay got you.
Yeah.
Is that and any more information geography, where they're based out of or is that all you're really allowed to say.
I can tell you that their north America based but they have global aspirations most of the startup and we're working with have have similar aspirations and.
There are big one.
Big nucleus hope it does.
Alright, well thank you.
And kind of going off that within your new electrical vehicle arrangement the final mile vehicle.
They have lot of stopping and starting in the driver gets in and out with the truck many times throughout the day does your seat have some type of custom design that differ significantly from bill like longer haul trucks are you able to serve.
You know beat this new customer with one of the your existing models.
It's a good question that so you're getting into the product design and we had a clever design. Our unity seat is copyable. If you will but we're protecting our know how as best we can we had a unique design.
And our unity C is modular so that we can use low cost country parts.
For instance, India.
And other other low cost countries as well as high end.
Hi performance parks in the seats themselves and these last mile delivery vehicles.
The driver seats really important as differentially important so generally they're looking for kind of.
Achieved passenger seat you know.
But a really good driver see because your point, they're in and out in and out into now and hot weather and cold weather bumpy roads starts and stops and so we did in fact heavy very unique suspension system for this to accommodate environmental control heating cooling.
As well as the comfort and safety the driver getting in and out of the vehicle multiple times a day. If these new startups as you know have tricked out ideas for integration of information through the vehicle the cameras and feedback productivity monitoring of the drivers.
Delivery routes and so we tie into all of that in the vehicle.
Gotcha Gotcha, that's awesome. Thank you for that tidbit.
But I do have some questions if I might related to your kind of restructuring plan.
Do you have any more information regarding like.
The upfront cost the restructuring plans like how much cash.
How much is cash how much is like non cash and how soon should we start to start seeing the benefit of the restricting cost cutting in.
And if you could answer you know at what point do you expect the full run rate to be achieved.
Yep, the we I'm not dodging your question Kirk do we did we summarize it may have good I refer to you and I know you. We just issued this morning, but right in our 10.
Q Jacobs, we do highlight the range of cost that we plan to incur around that.
Recurring items.
12 million.
Started these initiatives in the fourth quarter, so before co. Good because of anticipated just mark declines if you recall 2018 to 19 work.
Really high truck build occurs and so we were anticipating a return to more normal levels.
And started restructuring at that point.
To your question about.
We will be when will we start to see it we are starting to because we started in the fourth quarter.
By and large.
Most of them are our cash.
Costs and though.
We would plan to basically be there or thereabouts as we get into next year, Yeah, I went to the power.
Tag team with Kirk and say our.
Internal plans are to be done with our.
New initiatives that we started as well as the ones that were started previously by the end of this year.
And the biggest.
Expenditure of severance.
And.
Yeah. So we're underway with it right now so the cash use.
The cash severance is a lot of them have already happened and they were already happened in Q2, and our cash flow was positive on top of that funded that okay.
Yes.
Gotcha.
Thank you very much.
Thank you Jay you have time for one more sure go ahead.
Oh that'd be awesome Awesome. Your press release I noticed that you had mentioned there was about 15 million or more restructuring related savings how high above could that 15 million go is there like a ballpark number and what might be the key variables that ultimately drive the cost per day.
Auction you reach.
You know were the recent why we came out with that numbers, we are adding back too. So we are adding back so the net cost out as a higher number.
Okay, but we are adding new executives here, we're actively recruiting for senior level executives and mid level and entry level salespeople that have knowledge and relationships.
Customers and the product requirements and the service requirements of the new customers that were targeting so.
I am I think 15 is what you should expect from us because I would really like to add back and into our growth initiatives behind that.
Okay.
Gotcha.
Alright, I appreciate that I will get back in line here. Thank you very much.
Thank you.
Thanks, Nick.
Hi, again, ladies and gentlemen, if he would like to ask a question. Please press Star then one on your telephone.
Your next question comes from the line of Chris how with Barrington Research.
Please proceed with your question good morning, everyone.
Hi, Chris.
Morning.
Just going through a some of your comments already.
Can you add some additional color on kind of what you saw in the quarter on the month on month.
Sequential basis.
I did some back to the napkin work and it seems to be if we look at prior HCT research guidance.
We're outpacing their prior guidance.
Moving to a U shape like recovery.
Just how are you characterizing the recent improvements and I know there's guidance on Q4, two three directionally.
Perhaps what you're seeing for the balance of year, what kind of scenarios are you evaluate and currently.
Sure.
So.
As we mentioned about about half of our business globally is tied into truck truck seats, but we also have a big part tied into construction equipment.
And we are have an automotive business in Europe, and so it gets down to the platforms that you're on and how they're doing but.
With regards to the first question you asked on monthly experience. Our monthly experience was similar to the monthly results posted by HCT.
Our platforms kind of mirror the market basket that's out there we have some newer ones and some similar ones and we mirrored it we went down hot definitely in Mexico.
Our big customers were initially not deemed to be essential.
We went down will fall order books.
But you know mandated by the federal government in Mexico to shut down and we have over 2000 employees. There we have.
I mean factories, there and we have full order book and we were prohibited from making product so.
We have a little bit of a catch up scenario on top of market recovery. So we have a double thing going on at the moment. We expect that you expect to get caught up there were avoiding the working of overtime were avoiding expedited material into now.
We're saying disciplined with our cost structures.
Our agreements generally don't allow us to pass that through and therefore, we're not doing it unless we have explicit customer agreements or get caught up a little bit.
And then we flat out have recovered.
Truck order book so.
E Commerce as continued truck for Roland there's still a natural replacement rate for trucks out. There are two 200 to 220000 trucks needed just to replace retired vehicle, we're still below that and and I had a question that hasn't been asked as what's happened in in your aftermarket business during this or aftermarket.
Business was down also but not down as much and it's come back pretty good stronger than expected because people are stretching it a little bit.
So our outlook we were we were.
Where adhering to the A.C.T. outlook, that's the only third.
Party, we can refer to if there was one of commercial vehicles, we would refer to it but there isn't one really.
No, but were tied into the big guys, but we are seeing strength.
And then we have our new wins that are tied into.
The E Commerce people.
You know and so it's it's growing cry quite strongly right now and we're trying to get caught up with them and they have some recovery, they're going through as well they got a bit behind.
With the curtailment of of building activity that with manatee due to run of our safety requirements.
And then there's just flat out growth happening in that area. So we have.
We have a good outlook the only thing that's happening is a seasonal ended the year you know that always happens in Q4.
And you can see it in the HCT information, so we don't want to be too bold.
Knowing the timing of the ended the year.
And then you have what's happening right now with back to school and what's going to have mcrone of ours.
So.
We see.
Our strong order books, consistent with third party data.
Were nervous about krona virus and its impact on business in general in other countries that we're in.
And we have the ended the year seasonal slowdown.
That traditionally happens what happened this year not not sure there's going to really depend on.
What happens with Corona virus.
And our ability to work.
That's great.
Great color appreciate it.
My next question or should I say series of questions.
The new E Commerce last mile. When I know you can't provide the name or specific geographic location.
But perhaps some insight into.
This includes entire penetration of their fleet is there more room for growth within this existing customer and kind of how it all came about and what you see.
Competitively.
For these types of wins.
It was this a win was a big situation beat out another client or will you be only player so for.
Yes, good so just to give you a little bit of a picture. It's a bundled win for us. So it's a C and us plastic parts and it's got a little wiring harness and it too.
So we were unique better and that we could.
Handle everything needed in in the seat connecting to the vehicle electrically and that data the plastic parks needed to for housing.
And the seed itself, which was needed for functional heating cooling and safety and driver feature. So it was the competition absolutely and in this smaller truck arena. Some automotive kind of people try to go up the value add chain into this type of suspension system.
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So we said we do see that generally speaking they can't get there they don't like to quote low volumes of trucking and they don't have the suspension know how they're used to make and you know a $60 see not not a $700 seat. So there's a know how differential as well our API.
Operational capability Billy to serve globally. There are six to eight question.
Sorry.
Six to eight.
We're tracking all of them.
Track and all of them. So our goal is to win with that global set so the electric vehicle names and Japan, and China Korea are different than the once you're in the United States and the ones in the U.S. or different as well so.
Their unique their funded some times by some of the main players, but their own companies and then you have some of our traditional customers have their own efforts.
So we are we are.
Seeing the most activity.
And the new entrant arena, where they're trying to pure play to develop vehicle.
And but we're focused on both were focused on existing customer business and the new entrants, we hope it to be a big part.
Of our success, that's our aspiration thats our goal remains to be done.
And we want to diversify the company's customer set if you look at our.
10-K's last few years, you can see our top six customers.
A big part of our financial.
And we just flat out one of diversify that so we have a financial the mission goal there as well as securing a new when thats multi product. These are multi product new wins since you have a weaker unique value proposition situation.
Excellent.
And just sneak one in here lastly.
You mentioned.
What's going on strategically with the action that you are utilizing to support a 100 250 million of new business.
Some of which has been incurred already.
Perhaps you can comment on what portion of the mix has been anchored or anything to the extent would be helpful. Thanks.
Yeah the.
The way that we got comfortable.
Being this entrepreneurial.
In the quarter was because we had a big win a big one.
I can only say I'll, just say, it's greater than 10 million. Okay. Just to give you a flavor I don't really want to give guidance on these things they have to play out.
But it was massive.
And we didn't have the floor space to deal with it and we didnt have the people to deal with it we actually were very thankful, though because we were light.
On the truck building side of things.
And we were able to take our people.
And use them salaried staff and key hourly staff to go drive to the customers locations I understand what we needed to do take pictures come back integrate with a customer go through facility audits, which we've passed audits that all the facilities now.
And put in the infrastructure, mainly material handling because we have the people that know how to assemble products and then we had to add a lot of new vendors. So we had to procure material where procuring material. We haven't procure before from vendors, we haven't known before and for home. We don't have a credit limit so there's a whole.
Our financial part of getting set up being a on the prove vendor list.
Then establishing your animal cues your order quantities.
Get all your ship to down so I would say the startup issues have been material oriented because we know how to put complicated.
Assemblies together a seat has over 300 parks in and around 30 vendors globally.
And has a lot of specifications that have to be met for safety and quality. So we know how to do that and it brought comfort to this customer set that we know how to deal with multiple global vendors all at once many parks bring it together high quality on time.
So.
Our heritage helped us win.
They were comfortable with their relationship with FSC, but when they got to know the rest of our company there like.
Okay. You are set up to deal with us. So it was them getting comfortable with us as much as a us getting comfortable with the business opportunity.
And we don't want to get in front of ourselves.
So this is a crawl walk run thing.
And so we did at re purpose entire facilities re purpose portion so facility. So.
We want to see how this plays out.
Over multiple quarters, and then multiple years, but it's very similar business dynamics at FSC of live with.
For the majority of the their company life, and so accepted that and embrace that as well.
Excellent. Thank you for the color I'll hop back into queue.
Thank you Chris.
Hi, again, ladies and gentlemen, if he would like to ask a question. Please press Star then one on your telephone keypad.
And there are no further questions in queue at this time I turn the call back to Mr., how beavis for any closing remarks.
Thank you and I appreciate that excellent questions from from Jacob and Chris recovered a lot of good items here I first wanted to thank all of our employees, who had a really tough quarter.
And many of US are still on temporary a salary constraints right now during this call.
It's been a tough time going through the krona virus.
But we've done it we've got through it we can see a little bit a lot at end of the total I just want to say, thank you too to our entire team of 7000 people, who did that together, we pivoted really aggressively.
And during the quarter precisely and quickly.
To deliver these cost outs and this cash generation and all the people are involved with Adam I'm thankful as well with regards to us as a company. We've tried to be clear about what we're trying to add to the company's goodness.
And what our aspirations are they remain to be done we're being as transparent as we can about what we're doing where we're headed and we had a couple of coal wins.
During the quarter that that are going to help out the balance of the next several quarters and so with that I just want to thank you for your time today and look forward to keeping you abreast of our progress as it unfolds and we'll end the call for today. Thank you.
This concludes today's conference call. Thank you for your participation you may now disconnect.
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