Q2 2020 Horizon Global Corp Earnings Call
It was Rocco and I will be your operator for today's call.
All participants will be are they looking woman we reached a question answer session.
This call is being recorded that's your question global.
How's the way objections, you may disconnect at this.
I would now like to introduce Mr., Jeff Church, <unk> <unk>, the Global's Investor Relations for Mr. Troy You May proceed.
Thank you operator, good morning, and welcome to our Horizon Global second quarter 2020 conference call and webcast on the call today are carried goal.
Global Chief Executive Officer, Dennis let your belt rising global Chief Financial Officer.
Earlier this morning, we announced our second quarter 2020 resolved.
Results is available on many new sites as well as in the Investor Relations section of our website at Horizon Global Dot Com.
Turning to slide to today's presentation also includes non-GAAP disclosures.
These disclosures are reconciled to GAAP in the appendix seems to our quarterly press release, a presentation both of which are available on the Investor Relations section of our web site at Horizon Global Oh.
Turning to slide three I'd like to remind you that statements in today's presentation will include our views about rising global warming, which constitute forward looking statements.
Payments are subject to risks and uncertainties that could cause our actual results could differ materially from the forward looking statements.
Described these risks and uncertainties in our risk factors and Albert Misquote girl in the company's most recent annual report on form 10-K quarterly reports on form 10-Q, and other filings with the Securities and Exchange Commission.
With all that being said I'd like to turn the call Overture Horizon Global Chief Executive Officer carry goal Kerry.
Thank you Jeff Let me also start by welcome you to Horizon Global second quarter 2020 earnings call.
On behalf of the company and all of our employees.
Many of whom we're on the call with us today.
We thank you for attending this morning's call for your continued support.
And for your interest in the company.
Quarter to 2020.
What an incredible series of events we faced.
Personally professionally and emotionally.
The uncertainty brought on what the Cobot 19 pandemic way back in March presented a heavy burden on us all.
But as with other crises that we based as people and in this case as a member of the manufacturing and distribution community.
We stood up we showed up.
We stayed focused we rapidly adapted to new conditions and we performed.
As a management team, we assess the situation as we knew it down.
We plan for the worst but at the same time, we set clear targets for the company with what we knew at the time.
Plans to continue to advance.
These were simple.
First we would rapidly adapt to the health and safety demands tied to the virus.
We would learn and adhered to local state federal in internationally driven best practices.
To us there is nothing more important than the health and wellbeing of our employees.
We have acted and continue to act accordingly.
Second we would rapidly and effectively transition or better said, we would flex our operations to reflect a significant adjustment to the dramatic change in volumes presented to us via customer shutdown notifications and local or regional workplace restrictions that were enacted to slow the spread of the virus.
Major changes what's happened in a clip like fashion with little to no time for advanced planning.
And third we would support our employees throughout the period.
We would act as a team to protect the team.
Our commitment was to protect the employment of our full time employees and we did so with a collective set of concessions and wages in certain benefits across all the workforce everyone stepped up.
Besides the simply being the right thing to do what would the foundation of the remaining objective, which we set.
Those being.
That we would position ourselves to emerge from the prices better and stronger than we entered it.
And through solid planning, we would have merge it as restart pace faster than our peers.
Better operationally.
How do we set in motion of plants pull forward continuous improvement and capacity enhancement initiatives that were set for later in periods.
That are financially through executing a solid set of actions to improve our liquidity position, even with the challenge is tied to a lengthy shut down or slow down period, and considering the working capital demands of a rapid restart, which we hoped would happen.
Simply put we would leverage the situation and the opportunity it presented in terms of time.
As many of you covering our space or who are invested in our company have noted the industry is hitting stride with customer demand up as many habits that adapted to this situation by taking control of their travel and recreational freedom going forward.
This has been reflected in realized increased RB both in HCV sales and forward looking demand projections.
Inventories of these products are low end demand continues to rise.
The backlog of inventory replenishment outlook. This also remained strong.
You will see that said, we highlight our sales recovery during the quarter and also provide you an early look at our July sales results at the end of the discussion today.
Our global team across the board rose to the challenged during the period every one showed up they didn't shy away from the challenge and through the collective efforts of the entire team we were able not only to weather the storm, but we were able to drive significant improvements throughout the business in a time of great turmoil.
Let's review some of the highlights starting on page five.
As a preference to these bullet points. Please consider that the sales impact of the global virus response was dramatic and rapid.
During the quarter, we saw a decline in our net sales of $72 million or 37.5% reduction in sales compared to the same period in 2019.
No small challenge to face for any company.
Keeping with our base plan to improve our cash and liquidity performance. We went to work to react and to address the new conditions presented to us and through that focus we ended up with some pretty impressive results.
For the first half of 2020, we generated positive cash flow a 4.9 million through operations.
This reflected a whopping 67.9 million improvement from the prior year.
67.9 improvement.
A major driver of this performance was our continued focus on effective working capital management.
We recognize a 39.3 million improvement in working capital compared to Q2 2019. This is mark by significant improvements in inventories and accounts receivable.
We also cut our gross debt period over period by 172.8 million, primarily through a pay down of our first lien term loan of roughly $163 million.
Overall, we improved our cash and availability to a resulting 45.5 million at quarter end.
All of this while absorbing unprecedented shutdown and taking on the working capital challenges with restarting our operations and supply chain, which accelerated in May and June.
During the past quarter, we also refinanced our first and second lien term loans into a single term loan facility.
It's provides an extended maturity date at a consistent rate.
This significant action provides us with stability as we execute our strategic plan.
This result demonstrates once again that we are operating as a team this time between our debt holders and the company.
Our efforts to minimize the impact of the sales decline also included aggressive cost improvements, which helped us drive positive EBITDA for the quarter and for year to date.
Dennis will provide further details during his portion of the presentation, but a significant result in light of the challenges presented by the pandemic.
Moving to operations, please turn to page six.
We kept our foot on the gas during the pandemic, we held course with our continuous improvement plan.
Accelerating initiatives were up opportunities were presented to us and drove significant improvements throughout all areas of operations.
I felt this lifting as you see on the page would be an effective way to cover a lot of ground.
As you can see a lot of work has been completed and results are taking hold.
During my first earnings call with you last fall I presented an assessment of the key areas of focus that managed <unk> would have on improving our results. There was a lot to do.
At that time, we were underperforming in operations as we were not producing at a competitive rate our distribution centers, where burden with ineffective technology process isn't equipment, and we are losing the confidence of our customers.
We have made significant progress since then.
Items to highlight regarding this are.
First our S. DNA costs have improved by 23% year over year are defined further $7.7 million, we have improved our labor cost position through effective lean deployment.
Negotiated a new Labour agreement with our rate of Germany employees, which we expect to generate between 7 million a 9 million in full year run rate savings for the company.
We relentlessly pursuing and implemented kids and generated improvements across the globe with 21 events and outcome actions deployed in our reynosa metals facility alone.
This all during the second quarter.
Second production throughput improvements have been significant I Reynosa, Mexico facility, Thanks to great leadership team and a well defined plan.
We have through deployment of lean principles and minimum investment in renovation and incremental capital of four presses add them up $300000, we've been able to recognize significant throughput improvements for our core products.
Its capacity is up over 200% coupler capacity is up 52% Jack capacity is up 50%.
These are big changes for sure.
The impact of the four presses will only be fully recognize as we progress into August so more to come on these metrics as a constraint tied to further capacity gains is eliminated with the income increased capacity provided by these process.
I renewed focus on workplace and the workforce has paid significant dividends in Reno says well.
Our employee turnover rate has improved by 73% year over year, while our absenteeism rate has also seen similar dramatic improvements this at 52%.
Our management brought leadership and our employee stepped up its partners as we transform this operation.
Sorry, please note that our emphasis on throughput was not only in units, but also an overriding metric of the quality of those units.
At the start our quality systems needed revamping as evidenced by high defect grades internal and external with our customers poor customer satisfaction, and resulting finds and charges.
We hit as hard over the past months generating systemic improvements.
The progress as evidenced by the Green status result of 100% in all 11 surveillance audits completed during this period a.
A significant improvement.
These process improvements that led to a 95% year over year improvement in North American OEM nonconforming products, yes, 95% improvement.
Equally impressive 80% reduction in shipping fines and penalties over the same period in 2019.
Great results, while also reducing Cogs as cost of goods sale and SGN a related costs as we became more efficient and more focused.
Through all this we kept our commitment to maintaining our workforce in the U.S., we did not place a single person on furlough not a single individual.
And the full count of our full time employees have been most part returned to the workplace around the globe or will soon.
It was a good quarter for operational improvements with more to come.
For a detailed look at the sales for the quarter. Please turn to page seven.
Referencing the chart, including on this page the Red line represents 2019 net sales by month why the Blue line represents 2020 net sales.
As you can see we're outpacing prior your sales in January and February before Cobot 19 pandemic swept through Europe, and then onto the Americas.
The total area between the lines represents the cumulative decline in sales year over year during the period.
March through June year over year, net sales were down $72 million or 37.5%.
As I said earlier, the rapid and severe sales decline was no small task to address.
As you can see with the slope of the lines. The impact was significant in rapid but as you also can see the recovery is equally slope. This in a positive direction.
We have seen a 208% recovery in net sales since the height of the shutdown in April momentum continues to build.
In June we are back to 83% of the 2019 run rate with significant open and new orders of roughly $40 million in the Q as we enter July.
Tolling accessory take rates continue to rise in the U.S. in Europe as consumer behaviors continued to shift to outdoor activities.
Our sales improved our order book continued to improve even beyond that.
We also took certain commercial steps with our customers during the quarter as well.
We were saddled with significant and complex legacy free freight programs with our customers in North America.
We strip these down by 93% drive efficiency and cost improvements.
We also took aim at the legacy inefficiencies tied to multiple order quantity options offered in our portfolio.
In the quarter read reduced over 3100 of multiple options skews by restricting the by quantities to standard or skid pack offerings only.
You are shared appreciate the efficiency and cost improvements that we expect to recognize what the elimination of these multiple order options.
We're on a good trajectory with these initiatives, thanks to our productivity and through the support of our customers.
The steps, we took our expected to strengthen the company and our position as a long term reliable partner to our customers.
Turning to page eight relative to our response to the covert 19 pandemic, you'll recognize many of these points from our quarter one earnings deck.
We identified and attack the issue early through deployment of stringent health and safety protocols aligned with CDC and industry best practices, along with a pick up clickable federal state and local mandates.
We continue to adapt and improve each and everyday to provide our employees with a safe working environment.
We took significant steps as I mentioned during the period to shore up liquidity as the pandemic impact was being felt.
We secured grants loans and participated in government sponsored tax deferral programs in Europe and secured SP, a P.P.P. loan in the U.S. all representing actions afforded in response to the cobot pandemic.
We took proactive measures relative to wages and benefits through reductions to protect all of our employees.
Our employees have been outstanding any adhering to the protocols implemented to secure not only their individual held but also to respect and protect the health of their fellow employees is a great team effort and a source of pride for us all.
Moving to page nine.
We have spoken a great deal about be actions in North America, and rightly so as much as been accomplished there.
But we don't want you to lose sight of the work being done in Europe Africa area as well.
Over the period, we attack this region hard in terms of continuous improvement even while the principally OEM base business was for the most part completely shut down in terms of production demands.
Our run of attracting top level talent into the company what that center stage in Europe as we continued to strengthen our team with key leadership hires in finance operations purchasing and human resources.
We are assembling a formidable team.
We continue to relocate rebalance programs during the period in concert with our customers to maximize our effectiveness utilize our internal capacity is across the region and to mitigate the premium cost we were incurring as volumes spiked in our French location.
We have relocated a significant volume of toll bars throughout the region leveraging capacities to support not only the processes that were strained in our French location, but also to optimize cost through vertical integration opportunities, which were presented through these new locations.
Great work by the European team and great support from our customers with this initiative.
We as you would expect have been focused team assembled and tasked with driving significant improvement strategies and tactical actions for the region.
We have our objective set with one of them being to drive the EBITDA performance to the double digit levels I constantly speak of during our earnings calls.
Our European team throughout all levels is hammering away at this highlighted by the actions I just mentioned, but also through other significant foundation actions to drive costs that were completed during the period.
We completed the SGN a optimization plan tied to <unk> organizational optimization, which will result in between 2.5 in 3 million U.S. dollars, an annual cost reductions.
We through great team worked with the rank and file employed that are rated Germany facility ratified a new more competitive labor agreement that will result in labor related cost improvements between 7 million and 9 million U.S. dollars per year.
A dramatic outcome and one that adds roughly 400 basis points to the bottom line, while increasing our flexibility and competitiveness as we move forward in pursuit of new business.
We were running in January and February at 5% EBITDA levels in the region before the pandemic impact with an incremental 4% increase which has generated by the work done by the team on labor related matters.
With significant continuous improvement road map items, yet to be completed.
Our goal is well within reach.
Turning to page 10.
In early July we successfully refinanced their first and second lien term loans into a single facility at an equivalent interest rate, while extending the maturity date to June Thirtyth 2022.
Covenants remain aligned with our business plan additional flexibility our opportunity resulted from our lenders releasing collateral that we now look to put to work to further optimize our financing situation in Europe.
Dennis will take you through the specifics tied to the refinancing but recognize that through this action we have secured.
Further runway as we execute our continuous improvement plans.
Yes, as I stated earlier is another example of great teamwork between our company and our debt holders.
I will come back later for a look at July sales and some closing comments, but for now I'll turn it over to Dennis for the financial section So Dennis take it away.
Thank you Terry good morning, everyone and thank you for joining us.
Please turn to slide 10 for an update on our refinancing.
On July six 2020, we executed an amendment to refinance the outstanding balances, our first and second lien term loans into a combined term loan.
The interest rates is LIBOR, plus 10.75% similar to previous rates.
Well the maturity date of June Thirtyth, 2022, and a springing maturity of 91 days and advance if our existing convertible notes, which currently are due July 1st 2022 are not retired.
While the secured net leverage ratio covenant remain on change the fixed charge coverage ratio covenant was amended to require an FCC our of 1.1 to one for the fiscal quarter ending June Thirtyth 2021.
Up from one to one for the same additional measurement period.
Further the amendment requires.
Hey, FCC are at or above 1.25 to one at September Thirtyth 2021.
And 1.4 to one at December 30 of.
2021 in all periods thereafter.
The combination of our first and second lien term loans into a single replacement term loan with an extended maturity provides the company was enhanced flexibility to execute its strategic initiatives.
Please turn to slide 11 for review of the company's consolidated results for the second quarter of 2020.
As a reminder, all results will be on a continuing operations basis.
As a result of the company's sale of its apex segment in the third quarter of 2019, a pack is classified as discontinued operations for all periods presented and horizon Globals financial statements.
Therefore, they are not included in the discussion of ongoing results.
Consolidated net sales were $120.5 million, a decrease of $72.2 million or 37.5% from the prior year comparable period.
The decline was primarily attributable to lower sales volumes.
Due to the impacts of the Cobiz 19 pandemic.
Many of our facilities were temporarily idled during the quarter in response to covert 19 government mandated restrictions, resulting in the previously mentioned decline in sales.
However, we began to see positive momentum as the quarter continued and operating restrictions were east and our facilities ramped up to meet customer demand.
Net sales decrease was primarily attributable to $33.5 million of lower automotive OEM and yes, net sales and our Europe Africa segment.
Retail industrial an aftermarket net sales decreased $18.8 million in the Americas segment.
Automotive OEM and Oh, yes, net sales also decreased $14.9 million and the Americas.
Operating margin decreased $10.7 million from the prior year comparable period.
We reported on favorable performance with an operating loss of $8 million compared to an operating profit of $2.7 million and the second quarter 2019.
The decrease gross profit as a result to the impacts of the coping 19 pandemic drove on favorability in the quarter, which is offset by $7.7 million of SGN a savings.
Despite the sudden cobot.
Related declines we worked hard to achieve breakeven levels in the second quarter.
We reported adjusted EBITDA income of $40000, which is $12.2 million lower than the prior year comparable period.
Lower adjusted EBITDA was primarily due.
The volume declines in both Americas in Europe Africa.
Now, let's turn to slide 12 to review the segment performance for the quarter.
Net sales in Americas were $74.1 million $34.8 million lower than the prior year comparable period.
Net sales in the retail industrial and aftermarket channels were $18.8 million lower than the prior year comparable period has company flex down operations at its manufacturing and distribution facilities as a result to cope with 19 pandemic.
Automotive OEM and always yes, net sales decreased $14.9 million and the Americas segment.
Net sales in the Americas also reflects a decrease in sales discounts returns and allowances related to retail channel fines and penalties compared to the prior year comparable period.
We reported an operating profit of $3.4 million compared to an operating profit of $9.5 million from the prior year comparable period.
The lower operating profit was primarily driven by lower gross profit in the quarter.
Partially offset by $2.7 million, so that's DNA cost savings.
Adjusted EBITDA decreased to $5.9 million in the quarter as compared to $12.1 million during the prior year comparable period.
Transitioning to our Europe Africa operating segment.
Net sales decreased $37.3 million or 44.6% to $46.4 million compared to the prior year comparable period.
This decrease was primarily due to lower volumes and the automotive OEM and OEM sales channels totaling $33.5 million due primarily to the coping 19 pandemic and related economic uncertainties as Oems curtailed production in alignment with plant closures.
We reported an operating loss of $6 million compared to an operating profit.
Of $1.6 million from the prior year comparable period.
The decreased operating margin was primarily attributable to lower gross profit in the corner, partially offset by and $1.9 million reduction in SGN a support cost.
Adjusted EBITDA loss was $2.2 million for the quarter, a decrease of $6.6 million.
Over the prior year comparable period.
Due to lower sales volumes mentioned earlier.
On slide 13.
We show the full year consolidated results.
Consolidated net sales were $283.7 million, a decrease of $86.6 million were 23.4% from the prior year comparable period.
Our net sales were impacted by lower sales volumes and the associated business disruption due to the economic uncertainties and all of our end markets related to Colby 19 that began late in the first quarter.
The net sales decrease was primarily attributable to $41.8 million of lower automotive OEM and yes, net sales and our Europe Africa segment.
This was the result of lost production days in alignment with plant closures and economic uncertainties in response to covert 19.
Retail industrial and aftermarket net sales.
Decreased $22.5 million in the Americas segment, automotive OEM and yes that sales also decreased $15.1 million in the Americas.
Operating margin decreased $4 million from the prior year comparable period.
We reported an operating loss a $14.7 million compared to an operating loss of $10.7 million in 2019.
Decreased gross profit as result of the impacts.
Oh, the Kobin 19 pandemic drove on favorability.
In the first half of the year.
Which was offset by $13.2 million of SGN a savings.
For adjusted EBITDA reported income of $3 million, which is $8.3 million lower.
And the adjusted EBITDA of $11.2 million reported in the prior year comparable period.
As discussed in prior earnings calls, we have worked hard to lower our overall cost and improve the efficiency of our operations as evidenced by the fact that we still reported positive adjusted EBITDA for the first half the year.
Despite the significant impact of the cobot 19 pandemic.
The lower adjusted EBITDA was primarily due to lower volumes in both the Americas in Europe Africa.
Now, let's turn to slide 14 to review the hearing date segment performance.
Net sales in the Americas were $166.5 million.
$38 million slower than the prior year comparable period.
Net sales in the retail industrial an aftermarket channels.
Were $22.5 million lower than the prior comparable period as a company flex down operations had its manufacturing and distribution facilities as a result of the culprit 19 pandemic.
Automotive OEM and all yes, net sales decreased $15.1 million in the Americas segment.
We reported an operating profit of $6.2 million compared to an operating profit of $8 million from the prior year comparable period to lower operating profit was primarily driven by lower gross profit in the period.
Offset by $5.3 million investing in a cost savings.
Adjusted EBITDA decreased to $12 million as compared to $13.5 million during the prior comparable period.
Transitioning to our Europe Africa operating segment net sales decreased $48.6 million more 29.3% to $117.3 million compared to the prior year comparable period.
This decrease was primarily due to lower volumes and the automotive OEM and OEM sales channels totaling $41.8 million as a result of lost production days and alignment with plant closures and economic uncertainties in response to cover 90.
Reported an operating loss of $8.5 million compared to an operating loss of $1.6 million from the prior comparable period.
<unk> decreased operating margin was primarily attributable to lower gross profit in the period, partially offset by a 3.1 million dollar reduction in SGN a support cost.
Adjusted EBIT da.
It was $200000 for the first half the year, a decrease of $7.8 million over the prior year comparable period.
Due to lower sales volumes mentioned earlier.
Now moving on to our balance sheet liquidity position.
On slide 15.
Total trade working capital totaled $75.4 million in the second quarter of 2020, which represented a decrease of $14.2 million compared to the fourth quarter of 2019.
And a decrease of $39.3 million as compared to the second quarter of 2019.
Specifically accounts receivable increased $14.8 million $86.5 million, that's compared to the fourth quarter of 2019.
Day sales outstanding was 65.
An increase of six days compared.
To the second quarter of 2019.
Inventory decreased $20.4 million to $116.2 million as compared to the fourth quarter of 2019.
Inventory days on hand was 103 days, an increase of 14 days as compared to the second quarter of 2019.
Accounts payable increased $6.9 million to $85.3 million as compared to the fourth quarter of 2019.
Days payable on hand was 76 days, an increase of 21 days as compared to the second quarter 2019.
Turning to capitalization and leverage.
As a result of the pay down of our first lien term debt in the third quarter of 2019, and our liquidity management, partially offset by increased borrowings on the NPL and additional debt in the form of our SP APTP and French loans during the period in response to the economic uncertainty.
Cobot 19.
Total gross debt decreased by $172.8 million from $448.2 million.
In the prior year to $275.4 million in the second quarter of 2020.
Taking all that into consideration, we have significantly decreased our leverage on a year over year basis.
As for liquidity, the second quarter of 2020 totaled $45.5 million, which was comprised of $11.3 million of availability under our ABL facility in cash on hand of $34.2 million.
We believe the company is able to meet its liquidity needs to run the business and deliver on our operational improvement initiatives.
Including managing through the economic uncertainties and business disruptions related to covert 19.
That will impact our business.
With that I will turn it back to Terry for his closing comments.
Thank you Dennis turning to page 17.
Inflection point.
That is exactly what July represented.
A continued surge of recovery volumes that resulted in both the Americas and Europe Africa regions exceeding exceeding the 2019 net sales levels.
America's at net sales of roughly 40 million smash sales compared to the prior year by over 26%.
That's why I also securing an holding open orders leading into August of over $44 million.
That standalone highlights and supports the strength of the market, it's demand and the traditional buying season. It truly is being extended.
We continue to see favorability in OEM mix and takes rigs for our products all pointing to a strong continued sales outlook.
Europe Africa is presenting much of the same sales story, we call. Our business makeup in the region is roughly 70% OEM.
These recovered well during the period and in combination with significant increases in aftermarket and E. Commerce businesses, we were able to outsell compared to 2019 by 6%.
The great months under sales line.
Great booked order condition leading into August.
Turning to page 18.
Here, we are illustrating the backlog of North American open orders at the end of each month.
Each month, we have shown you an increase in our net sales. So we are shipping at an increase pace.
As you can see the order intake continues to outpace the sales rate.
With the increase capacity implemented in reynosa, along with strong support from our supply partners, we are well positioned to execute on these orders and our customers recognize that.
What you will see on the summary page I turn to next is that these orders to fill represented 34% increase to the company's North American 2019 full August gross sales.
This with orders and placed in the last day of July order intake continuing at a strong pace since then.
So in summary on page 19.
The pandemic hit hard.
We reacted extremely well, we are providing a safe and secure work environment for our most critical asset our people.
The horizon team drove significant operational improvements in capacity efficiency and quality during the period.
Take the time to review on page six when you have it the metrics that we presented.
It's truly represent great work by the team.
Our SNA has been streamline resulting in a 23% improvement and spend.
We reset our debt maturities and significantly improved our liquidity position through solid working capital improvements and successful executed refinancing options.
We have laid the foundation for a solid recovery in our European performance with significant actions completed to address SGN, a and Cogs going forward.
Outstanding work by the team on that.
We are rising to the challenge of delivering increased volumes in the marketplace through increased increased capacity that we've generated.
We've improved our quality operating metrics.
We streamlined our distribution methods.
In short we have achieved a great deal we have a roadmap for much more.
And we have not and will not take our foot off the gas.
Thank you for your attention than your continued support I will now turn it back over to the operator for questions.
Thank you well one I'll begin my question answer session.
Good question, where press star one owner Touchtone phone.
I was in the speakerphone. Please pick up a heads up 4% Kings who were charter question. Please press Star then.
As Tom will pause momentarily to assemble roster.
And ladies and gentlemen. This concludes the question answer session turn the conference back over very little pretty far more.
Well in closing I'd like to say, thank you very much. So again for your attention then your support somebody you. We've had Powell we will have follow up calls with over the next day air too. So we look forward to those.
But for everyone. Please stay safe stay healthy in.
Let's keep this momentum going thank you very much.
Thank you Sir This concludes today's conference call.
Before I answer launch however, water.