Q1 2021 Just Energy Group Inc Earnings Call
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Thank you Michelle.
Just energy released results for the first quarter fiscal year 2000, or 21 ended June Thirtyth 2020, before the market open.
You did not received a copy of our earnings press release.
You may obtain it from an Investor relations section of our website investors Dot just energy dotcom.
With me on today's call or Scott God, President and Chief Executive Officer, and Jim Brown, Chief Financial Officer.
This call is being webcast and will be archived in the Investor Relations section of our website.
Before I turn the call over to Scott I would like to remind listeners have certain matters discussed on today's conference call could constitute forward looking statements that are subject to known and unknown risks and uncertainties related to just synergies future financial or business performance, which maybe beyond the control the company.
Actual results could differ materially from those anticipate it into forward looking statements.
Certain risk factors that may affect results are described in the public disclosure record of jus energy, which is available on SEDAR database at Www Dot E.D.A.R. Dot com and is incorporated by reference in this call, including the most recent annual information form of just energy.
In the press release announcing financial results for the first quarter fiscal year 2021.
Additionally, some non Rs financial measures will be discussed.
Listeners are encouraged to refer to just synergies latest mdna for a discussion at these measures.
Unless otherwise noted all figures mentioned are in Canadian dollars.
I'd now like to turn the call over to Scott Scott.
Thanks, Mike.
Before I jump into an update on or Q1 performance I want to acknowledge that these have been unprecedented in difficult times from many of our value stakeholders through all of this just synergies mentioned judge excuse me just synergies mission remains unchanged as we continue to provide essential energy services to customers while in Sri.
In health and safety of all of our customers and employees I want to thank our entire team for their tireless effort and dedication to our vision.
Yesterday, we obtained approval from our security holders to execute the recapitalization plan, we filed last month and to reconstitute Our board of directors. This critical milestone is a significant step forward to strengthen it de risk our business positioning the company for sustainable growth as an independent retailers industries.
Leader.
Most importantly, the recapitalization provides the company with a solid foundation to support the current and future operations. It strengthens our balance sheet and reinforces the long term viability of just energy for our employees, our customers and our vendor and supplier partners.
The implementation of the recapitalization in respect to be completed next month pending regulatory and cord approvals I look forward to working closely with a reconstituted board as we advanced our strategic initiatives and drive sustainable value over the long term for all of our valued stakeholders. Additionally, while the current board will remain in place until we close.
So the recapitalization I'm going to offer my gratitude to their service and steady guidance through one of the most critical in challenging times and this company's history.
We appreciate our security older support for a recapitalization plan and I. Thank each of them as well I also want to thank our dedicated employees, who stepped up to ensure that through this process. There was no adverse impact on our day to day operations.
Turning to our results for the first this quarter of 2021.
We began fiscal 2001 with the strong financial and operational performance. Despite the ongoing challenges brought on by Cobot 19.
And we're on track to deliver on our guidance. Our organization has gone to great lengths to de risk strengthen to drive operational efficiencies over the past year, beginning with our strategic review launch last June and culminating with the approval of the recapitalization yesterday.
Through these efforts, we simplified and stabilized our business with a back to basics approach that centers on our core competencies and legacy heading North American energy retailer as a result, we're on a stronger position to begin delivering a more predictable and stable performance and financial results, there's more work to be.
John but I believe we have the right plan and the right gene.
[noise] I'm confident we can sustain the improvements we've made while turning the company back to long term growth.
So we saw the results from our stabilization efforts began to actual lies in the past few quarters should we expect to continue to realize the benefits through this fiscal year end beyond.
Specifically delivering base EBITDA improvement of 67% based gross margin improvement of 3% year over year, we continue to focus on improving the profitability of our customer base and targeted expansion of our margins. Despite challenges in a code 900 environment, we stay true to our prudent hedging strategy and take.
An additional measures to de risk the business as a result of koby 19.
We're also strategically investing in our green initiatives to proactively address market demand for renewables, while staying true to our focus to our commodity business.
However, the harsh realities of operating during a pandemic have impacted our results. We saw a decline in our customer base as pandemic constrained our ability to sell at full capacity due in person sales channels and drove our decision to proactively constrained sales and renewals for specific customer categories, particularly impacting our come.
Actual business that said, we did benefit from a shift in demand from lower margin commercial customers to higher margin residential customers as a result stay at home orders in most of our markets.
Our expense control and stabilization efforts delivered ongoing cost savings across the board and we remain vigilant in identifying and captured additional savings identified through our strategic review process in a renewed focus and driving operational efficiencies and simplifying our business that commitment is exemplified by the actions we took it.
Fiscal year 2020 to exit noncore markets in the UK, Ireland, Japan, and Georgia, We continue to analyze results at the market in more granular levels to ensure all operations are profitable in producing value. As a result of these efforts we remain poised to deliver an additional 40 million of savings this fiscal year.
Sure. In addition to realizing the full benefit of the 60 million we achieved in 2020.
In addition, our bad debt expense continues to improve and exemplifies the increasing quality of our customer portfolio apart from the recapitalization, we significantly improved liquidity year over year, which Jim will discuss in more detail.
These improvements coupled with the recapitalization will serve to further stabilize our liquidity position and add to our financial flexibility to ensure we maximize value for our stakeholders.
Total our stabilization efforts have been critical in laying a strong foundation, we need to pivot from sustaining our improved performance in structure to enhancing our growth in value longer term.
Driving a bit deeper into our operations like many businesses, we have taken several difficult, but necessary steps to ensure the health and safety of our employees our customers and communities. During the cobot 19 pandemic that have affected our ability to sell we took early action to suspend our door to door in in store.
Our retail selling activity essentially spending all face to face Sally that said as stay at home orders are lifted across our core markets. We are turning our attention to areas, where we can sell across various channels and reallocating resources as appropriate we've seen proof that the quality of our customer book is improving despite the impact.
To cope with 19 for instance, we've seen substantial improvement in attrition renewals and no indication of degradation in collections and we believe we have charting the course toward unlocking additional a sustainable value from our embedded book, notably our customer renewal rate improved nine percentage points on a trailing 12 month basis in threeq.
That is points this quarter compared to the same quarter last year. This rivals all time high levels. It just energy.
We also saw our customer attrition rate improved three percentage points during the quarter as compared to the same quarter last year, although the trailing 12 month attrition rate remained elevated primarily due to the rectify Texas enrollment issues. We believe we will continue to saying the recent improvements in customer attrition through fiscal 2021.
We are leveraging our multichannel sales model and the essential nature of our services to capture sales opportunities, albeit at depressed levels due to colder 19.
We stayed agile and have been able to shift our resources to focus on customer retention and sales channels in regions open for business to deliver on our financial guidance. We continue to closely monitored the situation and we're working diligently to reopen the sales channels that were impacted all the while we are progressing our initiatives to evaluate.
Customer profitability and focusing on channels, which we believe that the greatest opportunity for growth will produce quality customers and provide the greatest return on our investment.
The recent surging cobot 19 cases in Texas, our biggest market has slowed the ramp up of our retail channel. However, our team has done a tremendous job staying close to and working with our retail in sales vendor partners to provide a safe enrollment experience for customers.
And remain remain poised to ramp up we preserved our competitive advantage in the retail space and are confident in our ability relaunch retailers and markets with exceptional speed of execution. Thanks to those strong relationships to this point, we pivoted and accelerated growth in our mid Atlantic in northeast markets to combat the sales constraints.
Resulting from the Cobrand 19 cases that spiked in Texas, we are aggressively sourcing additional retailer relationships to diversify our partner pool. As a result, we believe we will have a head start on the competition and we'll be able to get back to faster growth as stayed home orders are lifted.
Additionally, we're investing in our digital and tell us sales channels, where the selling approach has been largely unaffected by covert 19. This includes taking significant steps to enhance our digital capabilities bring certain digital and telesales functions in house rely less on third parties to generate sales opportunities and building out our digital skill set.
Net and tool kit to capture an ever growing subset of customers, which we have not properly focused on in the past. We believe these actions will shake the core sales competencies adjust energy's future and helped position the company to grow our customer book.
As we come out of Cobot 19 disruptions. We believe this approach coupled with our dedication to scrutinize. Each dollar spent enhance liquidity position and strict focus on customer profitability will allow us to extract and deliver value to our stakeholders.
Looking ahead to the future the combination of our strategic review process, our dedication to driving operational efficiencies and the stakeholder approve recapitalization plan results in a more focused stable in fleet financially stronger just energy. We're now properly positioned on the right path for long term success success as a low.
Leading north American energy retailer.
As we look ahead to the remainder of fiscal 21 and beyond we're committed to sustaining the improvements in our business and progressing to the next stage of our strategic plan.
This includes flawlessly executing the basics of our core commodity business.
Identifying the strategic skills, and transforming processes and perfecting them.
Furthering draining capital rigor into our business staying committed to rigorously monitoring results and empowering our people to identify and create value and growing the value of our customer book.
Through inherence to these efforts will become a stronger business with more consistent and predictable performance. We recognize that we must continue to grow our business focused on our key markets and ultimately unlock value for our stakeholders and closing we're off to a solid start for the year. Our business is sound and getting healthier. There are many things that are great about this business.
The quality of our customer base is growing we have a dedicated team of employees in an experienced management team and we have strong positions in our key markets when combined with the approved recapitalization and reconstituted board of directors, we have the plan and determination to forge ahead as an independent leader in our IND.
History.
With that I'd like to turn it over to Jim Brown, who will provide details on our financial performance Jim.
Thank you Scott.
Turning to our financial results I wanted to Echo Scott sentiments regarding the hard work and dedication of our team adjusts energy.
We were taking significant steps to reinforce refocus on our organization encore commodity business in North America, while improving our financial health and position the company for future growth and proud the team and I believe we have the right leadership.
Even places execute our strategic plans initiatives.
Turning to our financial performance first quarter base EBITDA from continuing operations increased 67% to $40.5 million compared to the first quarter 2020.
The increase was primarily attributable to higher base gross margin a decrease in non commission selling call at decrease in bad debt.
Based gross margin increased 3% to $136.3 million compared to the first quarter 2020.
This is due to optimization of our weather hedging costs higher just screen margins at favorable foreign exchange rate, partially offset by declining.
Fine in the customer base.
At a more granular level level, our consumer base gross margin of $111 million was up 5% due primarily the margin optimization and improvements in the power.
Segment of our consumer Division.
Commercial base gross margin was down 4% to $25 million, we're encouraged by the durability of our embedded gross margin book and the sustainability of provides the company in the challenge.
As Scott mentioned.
The global Pandemics had a significant impact on our ability to reach new customers and retain some of our existing customers.
As a result, our current customer count is 1.1 million representing.
A 16% decline from the comparable quarter last year, and a 4% decline compared to where we're in the fourth quarter two that fiscal 2020.
However, as Scott noted, we're seeing some very positive trends.
In attrition renewals and the overall quality of our book.
We saw a 9%.
Increase in consumer renewals to 78% for the trailing 12 months ended June 32020, while the commercial.
Division decreased 7% to 47% compared to the prior year.
Improving retention offers kept their customers engage.
The decline in the renewal rates in the consumer and commercial business was based on competitive pricing.
Consumer attrition rates for the trailing 12 months ended June 30 was 27%.
This includes the effective now rectified, Texas enrollment issue on RC basis first quarter consumer attrition decreased by 59% to 40000 reflective flattening a departure for that comprise comparable period in the prior year where pricing actions.
Drove rcs too.
A trade at higher rates.
Our embedded gross margin decreased 21% year over year to 1.6 billion.
Due to decline in North American commodity.
Customer base.
As I mentioned before despite this discipline decline, we're observing positive trends in the underlying customer book expect these trends to continue.
Moving to costs as we discussed our last earnings call.
We are keenly focused on streamlining streamline our organization.
Our expenses, so we can operate more efficient manner.
Addressing ministry of Prospers, These expenses decreased 2% year over year $40 million.
Excluding the impact of strategic review, and the recapitalization, which totaled $3.6 million for the quarter.
Administrative expenses decreased 11%.
As a result, the suspending our door to door sales channel as well as prior year restructuring actions selling non commission chart costs were down 58% to $11 million.
Bad debt expenses for the quarter improved 31% to $11.9 million as result of.
Significant steps taken to improve enrollment controls and oversight.
Specifically, we reengineered the criteria for assessing customer creditworthiness, and our operational processes around enrolling customers looking forward, we expect to sustain these improvements.
In the expected credit loss as a result of identifying a closing certain enrollment gaps.
This is an area, we're keenly focused on and are applying similar levels of evaluation rigor to other aspects and controls Rob.
Turning to cash flow.
For the quarter ended June 32020, Unlevered free cash flow.
$25.3 million compared to negative $5 million for the comparable prior quarter.
Improvement was primarily due to a reduction in cash disbursements.
As a result of overhead cost savings realized from restructuring actions implemented at the end of fiscal 2019 and 2020 operational efficiencies.
It's also relate to improvements in the residential customer collections due to reinforcement of our enrollment goal.
Next is market.
The decrease in capital expenditures due to more rigorous controls surrounding return on invested capital.
Addressing our total available liquidity at June 30, we had $80 million of liquidity consisted of $20 million of cash on hand.
And $60 million available under our credit facility.
Comparatively totally total.
Liquidity available at June 32019 was $16 million consisted of $2.5 million of cash on hand.
And $13.5 million available under our credit facility.
Most importantly, we're addressing the health of our balance sheet through stakeholder approved recapitalization.
This is important milestone for does energy because it provides the company with sufficient liquidity.
To support our operations progress, our strategic initiatives, maintaining financial flexibility and most of all it's an affirmation from our stakeholders that were on the right path forward.
On the thank all our stakeholders for voting plant favor the plan.
If you think about with the therapy will look like once we close the transaction.
The company within equity injection of over $100 million.
A reduction in net debt and preferred shares of approximately $520 million. The result is a financially stable company that our employees customers vendors and suppliers can be confident doing business with.
Looking forward to.
Fiscal for the remainder fiscal 2000 sway I'll reiterate that we're keenly focused on controlling our costs.
Only come for improving the quality of our customer book.
I'm pleased to report that we've begun to see positive results from these efforts.
We're also expecting to benefit from full run rate your full year run rate savings from our cost savings achieved some physical 2020.
As a result, we're reaffirming our.
Fiscal full year 2021 guidance.
Between $130 million to 1030.
On another $30 million to $160 million a base EBITDA and we are still expected, we achieved 70 million 200 million of Unlevered free cash flow.
With that I'll turn it back to Scott Scott.
Thanks, Jim.
We are encouraged but progress we've made within our core business in the early signs, indicating our ability to sustain the improvements in our performance. We look forward to updating you on our progress on our next earnings call. Later this fall. Thank you for joining us I.
I would like to turn the call over to the operator to open the line for questions operator.
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Thank you.
Now, let's ask a question you need to press Star then one on your telephone.
Try your question plus the town key.
Our first question comes from Nelson.
RBC capital your line is open.
Great. Thanks, congratulations on a strong quarter on getting that they called our prevail on the recap.
Before I jump into questions could you just touched on the next steps to complete the recapitalization next month.
Yeah, and elephant, they again and thanks for the banks.
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Next step as you get the file, Florida order, which will happen on the second.
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And then we.
I expect the transaction to close in September mid to late September.
The contingencies within their regular regulatory approval.
Okay.
And then my first question just relates to.
The guidance for the year. So Q1 was pretty good and I believe Q1 is usually the weakest seasonally weakest quarter. So I'm, just wondering whether you're being.
Very conservative on your guidance for the year or do you expect to see.
Some headwinds going forward.
And just to clarify on the prior question the second would be quarter approval will be seeking quarter approval on the second.
Just to make that more clear than what I said before.
You know I Nelson when it comes to our guidance I don't think that necessarily being conservative the bad thing we want to set the tone with the guidance that is achievable.
And the first quarter has generally been a week a weaker quarter, but this quarters more in line with what you've seen in prior years going back several years last year's first quarter was had a lot of negative.
Headwinds coming into it and some.
Adjustments from the prior periods as well that hampered us.
So I think you, though we were.
We did good this quarter, but we still maintain the guidance of 130 the 160.
Okay. Thanks, and then just moving on.
I think in some of the.
The commentary.
Optimization of whether hedge costs for like that was one factor and contributing to some of the strong results could you just give a bit more color on the optimization of weather hedges like has there been.
A change in your approach to hedging now that you have a.
You have no dividends to fund and your balance sheet. It will be looking better next month.
No no that we still are thinking that the fundamentals of our hedging program.
Yes, the way our program works is basically we've got base layer of hedges of blocks that are the underlying hedge.
For the load we have hedges.
Address to shape, and then departure talking about with respect to the weather edges of the flex that's the potential for positive load price correlation. We just got we just get have gotten better at our supply team has been executing the strategy for many years. So we still have the same basic approach to risk management.
Well, we bounce cheaper and better ways to achieve thing but.
Okay. Thanks, Jim and then just moving too.
Customer additions I think Scott touched on it a bit.
On your prepared remarks that with some states reopening.
Can you just give a bit more.
The details on which sales channels are open close.
Reopening.
Yes, so throughout.
The Coca 19 difficulties are.
Our digital and pellet sales channel has been opened and growing.
We see that as a as potentially the most significant sales channel for the company going forward.
But especially in a cover 19 environment, because the sales or are taking place online or over the phone.
We've got to a new teen new executive leadership of that team and we are bringing in house, a significant amount of that telesales activity building out the skill set internally, we view that as strategic for the company.
So that is an area, where we've done really well and continue to do well and that channel is at or exceeding plan.
Currently.
The more difficult channels door to door in retail where face to face telling is been limited.
Is is on the way back our retail we are beginning to get.
Permission from retailers, who were reluctant to allow us to sell in an effective way in their stores and now are allowing us back in July see that team as bringing their their sales run rates up to where they need to be.
Again, what's going to be important to me.
Is is what we call so exit velocity and in order for us to be where we need to be for this year and coming years I've got to have exit velocity in physical 21, Dick will set me up for the fiscal 22.
Targets that we have that are significantly higher so.
That is the after this that's underway right now and again, we have a very very strong retail team, we have very strong relationships with sales vendors and with retailers and we are expanding those as I've said, so I do expect that they will get their sales rates in the current environment in an improving environment.
Up up to the numbers that we need him to be yet.
Okay, because I think there was roughly three quarters reduction in customer additions this past quarter. So so the bulk of those customer additions for on the digital and tell us sell side set thats fair to assume that is correct.
Okay got it.
And then just moving over to bad debt expense there was a large improvement on the consumer side, but on the commercial side, which is obviously a smaller part of the.
That extent bad debt expense, there was actually an increase from.
Roughly 1.1 million last year up to three and a half million. This here.
Im just wondering.
What drove the increase whether it was like one or two or a few customers.
Setting down permanently or or is this was a bit about one off.
Yes, it the bulk of that increase is one customer.
We had a customer that.
It's defaulted we are in collections, we do believe we will be able to collected.
It is as good customer that was slow paid us and then stop paying.
So commercial if you would it look at at this part of our business. That's the most impacted it's definitely the commercial side or small business and our Hudson energy business have been impacted.
Okay, and then just one last question.
There was a I think 21 and half million dollar share swap payout during the quarter.
Can you give a bit more detail on what that financial instruments.
Yes sure Nelson.
The unwind of us swap associated with.
Hedge that's been on the company for many many years I think you and you'll see a similar online.
I can't remember what quarter last year, but last year as well, but is that have come to the end of term and we unwound that.
You Didnt have a significant impact on liquidity for the company that was a fully collateralized swap.
But there was cash that moved out in exchange for an LLC that came back in.
Okay. Thanks, Ive got back into queue.
Thanks.
I didn't ask a question. Please press Star then one.
Next question comes from Mark So I mean, yeah DC capital markets. Your line is open.
Thanks.
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Maybe just walk through coal that benefits in the quarter from work from home, obviously does have a higher residential mix, maybe just anyway to quantify what that might be and then.
Given the the inability to sell face to face how much of a lagging my team from that drop and paying customer count net flows into.
Q2 in Q3.
Yes, so on the.
On the work from home benefit on the consumer residential side of our business.
We we've seen.
Around an 8% increase in low on the residential side and our at at its low point, which is improved since the low point, our commercial business. The load was down somewhere between 15 and 20% that has improved its about.
Out half that.
Now, but the residential margins as you know are significantly greater than our commercial margin. So the net improvement as as.
As shown up in our results.
Any way to put a pickup dollar value around that or percentage impact on gross margin.
On a consolidated basis.
Yes, it's single digit millions shifts between one to the other.
I will mention that we're seeing a little bit of in there I know that difference to the pandemic started.
Stark increase in residential load.
And commercial load in the opposite direction that seems to be narrowing as time goes on of the good for our commercial business.
The commercial business has gone through a period, where it is very difficult noncustomers, because commercial customers very uncertain about their future.
We feel like you add the commercial logos back signing new commercial load will also increase as well.
So kind of tangential to your question, but.
We do feel that well within the overall benefit is positive more commercial look or more residential load and less commercial load at the moment.
Thanks for the commercial loans and come back because we want that.
This is to get Reengaged in signing.
Customers.
And then any thoughts on whether or not there is a lag from not declining customers are that delaying specially the scene I customer sign given especially the only state of the pandemic as you kind of worked through the current quarter are you.
Hi seems to manifest in how the results are starting to come through in hospitals.
Well you know there's two dynamics of that one is the fact that commercial customers do tend to.
By quite a ways out in the future. So there is a delay in the impact but we also feel like there is going to be a and we saw little business in Canada over the last quarter resurgence of buying as.
Whether it's been a gap.
Hey acceleration as we come out of Tobin, it's too early to tell on that but you do have a as opposed to the resin vessel book, where the customers basically side and flow right away you do have the ability to catch up in the commercial book.
If customers where for example to move to sign on a three month forward start bases versus the six months our forward start basis, so definitely focused on the commercial business.
As Scott said it was its than was the most affected.
Groups and.
We're yeah, we're fortunate to have a good very solid base of customers and taxes on the commercial.
Sorry on the residential side.
Dr. sustainability through the pandemic period.
Certainly phenomenon. So is there a target in mind to sort of hospital customer mix between.
Consumer and commercial.
Seems like gross margin, though no maybe 70, 580% coming from residential now where do you think you'd like to see that mix shakeout last couple of years, we don't we don't target a necessarily a mix between commercial and residential there. The we are supply team optimizes for the total.
Supply low.
But we don't really have been optimal mix between residential commercial mean for Mark our perspective, the commercial market is contestable is very competitive.
We try to get as much business commercial business as we can get and.
When pricing request or low like they are now because commercial businesses or or not interested in contracting until they have more certainty about their future.
They are our number of cousin commercial customers, we signed is going to be down, but there really is no. We don't we don't optimized to mix between residential and commercial.
Okay and then maybe this question for Jim.
Longer term debt targets, obviously pretty big impact from recapitalization in bringing down leveraging just where do you think as you've gone through some of this panel last year to talk through that.
Longer term targets steady state, where you think leverage.
Set and where you may find kind of holding some that relative to where the businesses right now.
No I mean, obviously the recapitalization.
Monumental step in reducing leverage for the company and under the plan will be paying down the credit facility by $70 million on a calendar year basis.
So you know we still feel like our leverage is a little above the average for the sector.
So we'll be working to bring that down.
Through the through the next year, you're too with respect to pay down to the facility.
I don't really have a number to give you in terms of our optimal.
Steve the ratio.
But I do know that we will be reduced over next couple of years.
Okay and then maybe my last question for John in the queue just here on the comment that.
The real focus on paying back to the core.
Business here and there has mentioned that you guys have still consider some sale noncore assets, including the value added products.
How do you guys defined core today.
Relative to like geographies.
So the gas versus electricity business and so how much smaller would we be willing to shrink or sort of core focus so what's still out there for you guys in terms of.
Business lines or assets that you would look at selling on the next.
Yeah, that's all.
So core I'll I'll touch on.
Core.
Product in core product remains power and gas.
Certain markets.
Selling both power and gas the customers is critical to supporting the sales channel in other words, there's not enough margin and just power.
For a customer award and just gas, but the combination of the two makes it profitable.
So that power and gas remains important to the company. In addition, our we are.
Working to win new our focus on renewable.
And as well as our budding.
Carbon offset business Terra pass.
Those that area of renewable and sustainable energy, we believe is got to durable demand going forward.
Digital traffic is not as great on that as it is now.
Because of Cobot 19, and other issues, but I think when we when we come out of it that that demand will will show up and we want to be ready to take advantage of it. So those are the products that I would call. Our are within the core and then when you look at our geographies.
We are you know all geographies, we're in right now our core, but we continue to evaluate them and if things change, which would prevent us from.
Getting contribution margin or or or value out of a particular region or market, we will exit that market.
On the right now we are but where we're at now is core.
So really just comes down some of the turf.
Peripheral value add stuff, whether its backings and.
Just a electrical efficiency that kind of stuff is where you guys have anything into maybe shed a little bit so.
We're looking at all the options for those those activities, but you know in terms of what we view as core that we're attempting to grow its going to be gas power and renewable product in the regions, where we sell those things.
Alright got thanks, it up into gas.
Ladies and gentlemen. This concludes today's conference call. Thank you for participation you may now disconnect everyone have a great day.
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