Q3 2020 Delek US Holdings Inc Earnings Call
[music].
Good day and welcome to the delegates 2023rd quarter conference call and webcast.
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I'd now like to turn the conference call over to Mr., Blake Fernandez, Mr. But I love the floor is your sir.
Good morning, I would like to thank everyone for joining us on todays conference call and webcast to discuss Delek US Holdings third quarter 2020 financial results. Joining me on today's call is Uzi, you mean, our chairman President and CEO Rubin Spiegel, you VP and CFO and Louis Labella, SVP and president of refining as well as.
The other members of our management team presentation materials used during todays call can be found on the Investor Relations section of the Delek U.S. website. As a reminder, this conference call may contain forward looking statements as the term is defined under federal Securities laws. Please see slide two for the Safe Harbor statement.
In addition to reporting financial results in accordance with generally accepted accounting principles or GAAP.
We report certain non-GAAP financial result, investors are encouraged to review the reconciliation of these non-GAAP financial measures to the comparable GAAP results, which can be found in the press release, which is posted on the Investor Relations section of our website.
Our prepared remarks are being made assuming that the earnings press release has been reviewed and we're covering less segment and market information that is incorporated into the third quarter release on todays call. Ruben will review financial performance I will cover capitalization and guidance Lewis will cover operations and Capex, then Uzi will offer a few closings.
The TG comment with that I'll turn the call over to Rouven.
Thank you Blake on an adjusted basis for the third quarter of 2020, Delek US reported a net loss of 74 million or a negative one dollar and one cents per share compared to net income of 77 million or one dollar or one cents per diluted share in the prior year period.
Our adjusted EBITDA was 22 million in the third quarter of 2020 compared to 184 million in the prior year period.
The second progress on these press release highlights 31 million after tax benefit or 42 cents per share of items included in adjusted results.
I would like to highlight the table on page 13 of the release, providing other inventory impact by refinery in the quarter. This may be held fourth interim helpful. In terms of modeling the refining segment.
On slide four we provide the cash flow waterfall in the third quarter of 2020, we had a negative cash flow for approximately 77 million from continuing operation, which includes a working capital detriment or 40 million guests capital expenditure in the quarter were.
For approximately 5 million.
Finally during the quarter, we announced the elimination of the incentive distribution rights and conversion of the 2% general partner interest in DKL into a noneconomic interest in exchange for 14 million newly issued DKL units and 45 million in cash. This brings the dk ownership of DKL up to 80 per.
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With that I will turn it over to Blake.
Thanks, Ruben slide five highlights our capitalization we ended the third quarter with 808 million of cash on a consolidated basis and 1.7 billion of net long term debt, excluding net debt Delek logistics of $1 billion. We had net long term debt of approximately 666 million at September Thirtyth of 2020, I would remind you.
You that we expect to federal tax refund of approximately 165 million first half of 2021.
Moving to slide six we provide fourth quarter guidance for modeling we remain on track to exceed our cost reduction targets of $100 million for the year. Additionally, through a combination of workforce reductions and tactical initiatives, including Krotz Springs, We anticipate another 80 million reduction in 2021 versus 2020 levels. This is comprised.
The 70 million and operating costs.
$10 million of DNA lastly, during the quarter the Wink to Webster project achieved mechanical completion on the main segment connecting the Permian Basin to Houston, Texas. The main segment of the pipeline system was commissioned with Permian crude oil from Midland to Houston in October and service is expected to be available to shippers in the fourth quarter.
As a reminder, we own 50% interest in a financing JV that has a 30% interest in the pipeline JV additional.
Segment segment operating shippers further service are expected to be in place in 2021 with that I will turn call over to Lewis to discuss our operations and Capex.
Thanks, Blake during the third quarter, our total refining system crude oil throughput worth approximately 280000 barrels per day in the fourth quarter of 2020, we expect crude oil throughput to average between 225 to 235000 barrels per day or approximately 76.
8% utilization at the midpoint this.
This assumes krotz springs throughput of 20000 to 30000 barrels per day.
In light of difficult macro conditions, we elected to perform turnaround work at the Krotz Springs refinery that will be conducted on a straight time basis beginning in November.
This will allow us to continue running the reformer and the alky unit.
And should help improve economics toward a breakeven level.
The cost to perform this work is estimated at $10 million.
And is included in our Capex program.
After this work is completed towards the end of the first quarter of next year. The facility will be capable of movie back to full utilization should the macro environment improve.
On slide seven I want to highlight our capital spending capital expenditures during the third quarter were $5 million. We remain confident that we will achieve or come in below our full year 2020 capital guidance of approximately $249 million.
The 2020 capital program is broken down by segment as outlined in the slide.
For 2021, we expect capex to be approximately $95 million lower than the 2020 levels with the guidance for the full year of $150 million to $160 million, including turnarounds now.
Next I will turn the call over to Suzy for closing comments.
Thank you Lewis and good morning, everybody, we're taking aggressive steps to improve the cash flow profile of our company, we have visibility on what $200 million of collective improvement next year.
This will be achieved through a combination of capital reduction did.
Decreased operating costs and Jane expensive optimizing a fourth rig Krotz springs refining operation as one of the other initiatives.
Our boat, it's suspended dividend payments at this time to maintain a flexible balance sheet given the macro environment.
Based on market conditions.
Repurchases wouldn't be given priority over a resumption in the dividend or growth capital as we see a significant disconnect between the value of our our underlying assets. That's a big with you Mark.
Pete I would like to encourage you to review our new sustainability report published in September Delek US recognize these responsibilities to the community and our stakeholder and we are pleased to show our journey, including disclosing gear endpoint 19 statistic visually action the company talking 24.
Tony and describing some of the steps we are planning to take in the future when dot operator would you. Please open the call for questions.
Yes, Sir.
We will now begin the question answer session to ask a question you May Press Star then one on their Touchtone phone, it's easily a speaker phone. Please.
Please pick up your handset before pressing the keys if.
Any type of question has been addressed to like you've got a question. Please press Star then two again. It is star then one to asking questions I, just I will just pause momentarily to assemble roster.
And the first question, we have will come from Neil Mehta of Goldman Sachs. Please go ahead.
Good morning is it good morning team at let's see the the first question is just around capital allocation and today, you're making the decision to suspend the dividend to repurchase shares and so I guess the question is implicit in that is a view that you think that stock is attractively valued here despite.
So does the refining headwinds that we're seeing right now so talk about the calculus. The math that goes into why you think it's time to be buying back stock and then also talk about timing and sizing a.
Given given the uncertainty in the market out there recognizing you have some cash inflows coming in next year.
Oh I appreciate the question on the Oh.
Let's start with Oh, something a little different and then what are the onsite directly.
If you look at though what we have said, we said that though between Oh opex.
Cafe and other initiative that we'd be other initiatives being a fee base.
You were talking about $100 million are coming in.
If you look at Capex coming through is coming down around $95 million or call. It $100 million. So its going down to a long one can be to onesixty. So, let's let's talk about the free cash flow of the company once things normalize a little bit if we don't get 2018 29.
I mean.
The dog <unk> cat or dog Opex.
And Jamie a in 2018 2019 for Dk.
Was is somewhere around 9.93rd done what the number is.
If you go ahead and apply what we just gave you guidance for the Opex on June 24, 2021, now we are on a 737 40, so you'd see a roughly $200 million of savings compared to what it used to be 2018.
2019, which you may call at that time elevated or normalize whatever they are different if any.
The first $200 million. The second if you look at a $100 million of DKL.
Improvement because of all the investments that we've done in 2017 2018 2019, the midstream DKL two days to $70 million used to be a $170 million of in ER. In 2018, 2019 was up you take the two out of the savings plus another $100 million.
Oh, a thought to maybe go offerings and Oh Gee I need another 102 decades now you're at the 300.
The normalized Capex.
In 2018 2019 more along the odds you mean adopt we $70 million, but there were telling you want 50 to 160, that's another $200 million. So all I mean, you're talking about $500 million.
I'm not talking about the Oh, the prospect for just one second I know the quest with a much lower.
Midland benefiting 2018, 2019 was a $4 the bill if you take it dies the 75 million those.
You're talking about Ben if we don't meet the 300. So the 500 that we are showing it more than all fit all the Midland benefit we had in 2018 2019, so well we feel that we achieve our goal is to to overcome this Midland overhang now going back to your question.
Knowing all of that into what goes too far ahead.
We feel that we are starting to generate free cash flow generated free cash flow not from this that we've done but actually generate a free cash flow on the day assumption of $1.2 million of injury and was $50 million of cafe.
We saw generating dot on the wrong, we oh $8, a 50 cent crap.
To $9, let's just call it 875.
And so and then we are wrong favor. So whilst we see top we think that we are starting to generate a free cash flow and because of the cushion we have $800 million odd that we have the dots, we turned up and coming back and I guess on desktop because continues to outperform and W.
Definitely coming online.
That would be something that Ah you should do it picked off to approach a bank would be I hope I answered. Your question just what the long answer, but I got out of that number that was great. You did the modeling fourthly that's out here. So that's the follow up around that when you talk about an eight dollar.
50 cent crack is where you get to free cash flow sort of breakeven and free cash flow positive at which point you repurchasing shares. When you talk about that are you talking about like a benchmark crack like the Gulf coast.
321, Brent plus a plus the W.P.I.
Brent spread or Midland spread on top of battery <unk>, just trying to understand the parameters.
We assume Midland zero, and we assume fast we do Gulf cost W.P. ICRA.
Okay and embedded in that calculus is linked to Webster as well.
Well the parts of the others that we mentioned either.
Related to commercial agreements along a wink to Webster that's out the first phase was completed a few weeks ago for the $30 million of other is that mainly does fall. So you get only a benefit of $30 million at this point, obviously, we know what that will be fully completed.
By the end of next year, and then you would start seeing the full benefit.
Great. Thanks, Izzy Thank you.
Hey, let's do we have Brad heffern of RBC capital markets.
Yeah, Hey, good morning, everyone.
Just to follow on on Neal's question about the dividend.
You know you called it a suspension so is the likelihood that the dividend comes back at some point once the market normalized or is this a more of a deferral and until you.
You know maybe the equity performance gets much better more in line with where do you think it should trade.
You know the cash flow will continue to go to the repurchase rather than some reinstitution of the dividend.
Okay, great. Thanks for the question I'll go by the history. If you look at when he 18 2019, our market cap to date $800 million. If you look at 2018 2019.
Just a walk me through the numbers why if crack spreads normalize.
Our situation will be very even a wood midland not being a even with me than being zero because we don't count on me then anymore without glad you all along to go to midstream to offset the benefit of me that because we never thought that I mean that should stay at a $4.
So if you.
Go back to 2018 2019, we returned a combination of buyback and dividends, we returned $700 million. During these two years to shareholders today, our market cap is $800 million. If we can get cross winds up enormous I'll call. It 12 13 $14.
Then you should expect similar numbers Tom now, obviously, then you need to play between how much you are actually buying the shares because if you live in Dallas, obviously, it feels completely towards a buyback, but if the shares are or the stock price recovers then you go back to a.
Two dividend, but.
For us the biggest yeah, what the most important thing is the free cash flow that we think once we have a some kind of normalized crack spread and I. Just mentioned 850 is the where we things that we are going to start generating a free cash flow.
Then it depends on the share price.
Lower share price more buybacks, our share price more dividend I hope I answered your question.
Okay. Yeah, that's very clear and then just on Krotz. So I guess first of all can you talk about how we should think about modeling. It. During this time period, where it's just the allocating a reformer running is it should we just sort of take the octane spread and multiply by the capacity of those units and then beyond that you know is this kind of the minimum level.
Of activity that you would ever expect to crops, just because there's a lot of value in those two units or is there a chance that if the market stays like this for you no longer than we expected that cross cut off when you close.
Oh.
Cost is a good asset in today's market it doesnt make money.
So we are being nimble being linger a small company Oh, we have our disadvantages. We have couple of advantages being quicker. So we sit down and we said what are we going to do and we knew that next year that was supposed to be a turnaround. So we said, let's take this waste a lot.
Moving down the wrong, our free time doesn't want to win every month, we do expect cross well recover to a level that it makes sense to London dollar finally at the same time, both the reformer and the alky, a handful of value and Dan and also other activities that we're doing in Dakota refinery.
So as we said in the press release, we expect from Wunderlich standpoint, you should expect a a course to be towards break even even in today's environment. This is after you take into account the reduced optics.
Oh February or March you think recover then obviously wouldn't flip the switch because we just completed a tender, while which cost only $10 million, obviously know what they're on.
Usually cost much more than that.
And we go back to normality if its not then we'll continue with that we did.
Operation I honestly don't see a situation at this point the cost Weve got being shot company.
And Brad just to help you from a modeling perspective, if you need help to get toward that breakeven level of that 70 million of opex reduction that we articulated about 40% to 45% of that is associated with chronic so basically you can shave your operating costs. There to help you move toward that break even levels that help Paul.
Okay. Thank you everyone.
And next we have Ryan Todd of Simmons energy.
Thanks, Good morning, maybe if I could follow up on one of the earlier questions.
Yeah I appreciate the.
The thorough run through on a lot of moving pieces on the cash and the cost side, but I mean clearly.
You know with Delek market cap below its its valued holdings and DKL.
The market seems to be pricing, the refining business will destroy value over over some period of time.
You've done a tremendous amount to lower the cost structure, there going forward, but you know how much.
Maybe can you talk about how much flex is is there any flex left in the budget for next year and maybe as we look forward the sustainability of cost saving both capex and opex into 2022, how much of a sustainable as we think about the longer term value of the refining business.
Okay, So but right I think you asked two questions on talk to both of them and if I Miss something please follow up so the first question is how sustainable in my mind. What you asked is how sustainable are the opex Gen eight and Capex, So let's start with.
Easy part Capex, if you look at the history that was all along our cafe on the a a normalized basis with all grill and without the especially the project.
So we are just not going to do any growth project in this environment It doesnt make sense.
In that number there are took turned the wrong. One of course is that was that moved up.
Up and the other one is the editorial.
So you knock down to a a to turn around in the same 150 $150 million.
So.
It's absolutely sustainable in this environment and just remember we invested hundreds of billions in each refinery. So we feel from a reliability standpoint, if we can demonstrate that we are ready to run the refining is a very high utilization.
Because we just invested all that money into Pat I think Thats. The first question. The second question was Opex and ER and Ginny again, if you look at what we're trying to do in this environment, there's not much that we want to do besides the returning a cash to share.
Well there are $11, there's no growth project or no study or no things or not many things that you should do that bring value.
More than the share price being up $10 or $11. It just doesn't make sense. We just sit so that's why well if you listened to loss a year ago two years ago, and we had all these discussions we felt that the type that we needed to invest money in a physical asset, which we did and thats why because it's not like you mentioned.
It flipped its 1.3 $1.4 billion versus Dk, being 800, which again does it make sense. The third component of you asking a question its refining useful for you actually we think that refining if you do some of the positive negative or not.
Now I find it hard to understand why the refining assets for Dk are negative when we have either refining assets in the market and these companies are not traded that net negative value. So there is a disconnection, which we aim to a to correct by the move also.
Shifting from dividend a growth capex due to buyback.
I hope I answered all your questions. Yeah, so sorry that didn't intend as so many to think that maybe one.
Separate unrelated follow up I mean can you remind us about your option on the potential Bakersfield renewable diesel facilities and maybe how that project is progressing from what you've been told.
And maybe remind us what the buy and what to tell whether there's any capital at all and then.
And how you'd be able to you know whether you'd be able to offset your RV all but.
Patients.
After that.
So Ryan it's Blake I'll take that so I would defer you to global clean energy, who is operating and construction constructing the Prost project, we have an option to participate with a 33% interest I think it's a 90 day window. After the facility is operational that we can execute that so at this point we're basically.
In standby mode, we can see how the macro unfolds, we have not disclosed what the capital commitment would be but I think by and large I would just tell you would be fairly de minimis.
It is now it's an absolute dollar amount is it's not a percentage of the total construction cost of the project. So I believe the timeframe is toward year end 21, maybe early 22 and that is basically our optionality for renewable diesel at this point.
Great. Thanks, Mike.
Yep.
Hey, let's live Manav Gupta of credit Suisse.
Oh, Hey, <unk> Hmm [laughter].
And then more specifically what exactly are you doing good crops that would help you lowered the breakeven thing that is finding good profitability the team and if that's something that you can take across the time that an entity, though if there is a need to do similar work over those two refineries to make them a leaner more profitable.
As usual and what have you all with Oscar smart questions. Because we have done exactly what you Oh, we sit down and so let go one by one.
Cross what cutting expenses like Blake sales by seven on a $7.7 million, which were already happened.
Portion of it you will see in the fourth quarter and then the full benefit next year on the Opex side and then we are taking the other units that were scheduled to have turned around by the end of next year and do down there on here, So and done we should get us close to breakeven on April.
[noise] up and already though because of the asphalt is actually a and you can see it in the numbers is actually a I'm, making a good money even in this environment. So there is no reason to do it didn't endorse there wouldn't be dual a turnaround in the first quarter in El Dorado.
Doug we're planning to do and this is part of the $150 million.
Spring as you know does little noise in the numbers this time, but as you know, especially with the Rins and the niche markets out West Texas.
A big spring is a and and are buying below Midland and not shipping Big spring is a one of the best refineries that exists. So you shouldn't touch a big spring, especially lots of the fact that now you have the.
I indicated the gathering system as well as a a week to Webster portion is coming online and then in the future that will be a.
That would be more a more income coming around the hob of big spring, which is not just a refinery.
And Tyler you're all very familiar with Tyler.
I mean, there are many years when we Oh boy you know that this facility even in today's environment.
Tends to make our money so shouldn't touch it besides a tweaking the expenses, which would be weak expenses across the the company.
I think I've said it a one by one.
Perfect and quick follow up here I mean, when you look at Delek that are two parts that you're looking perfectly fine logistics is actually doing great and beat the international being very that and then you're finding that just not billing. So that now then you had loading your capex and also limiting your growth projections for the retail businesses.
One thing we feel they bullish about building bigger stores and getting more sales in getting in merchandise sales. So I'm just trying to understand that you pulled back on the Capex, which is fine on refining side are you pulling back a little too hard on the retail side because he did business is actually doing very that even until dates. So the question is on the retail expansion.
So that's.
Thats a great question I'm on that but look again come down a little cushion. It's odd is something that we need to do a to look every day and that's why Oh I'm being paid and.
You look at the share price, which is which is $11 you do some of the pause and you know you have a market for DKL indicator, we reported another record the courts and as we told you all these investments over the last few years I would.
We've continued to bring more and more dollars decade, particularly is doing very well because of the investment.
Our retail is doing very well, but the share price of decay is $11. So in terms of capital allocation you say to us.
Well, where should I put my chips.
And the chip should go towards more buyback in our mind on this very moment. Obviously, if you are talking about it goes back to 50 that Capello Kissinger change toward growth project.
That's that's of any fed and interpretation. Thank you for taking my question.
Thanks, Ron now.
Next with Roger read of Wells Fargo.
Yes. Thank you good morning, how are you all doing.
Roger Hey, Roger Newsy bike.
Two questions for you one on the kind of financial balance sheet side seems to me that the opex things been beaten pretty good here and the other is going to be on you know kind of market fundamentals and so forth. So I'll hit that one first come back to the balance sheet. If we look at Cushing inventories are they obviously spike.
Pretty high back in the spring came down and then they'd been steadily increasing yet we haven't seen a real whitening and.
Either any age or LLS differentials I was curious how do you think about the market structure out there given that you know.
Well a lot of times, we hear about tank tops, you're not hearing about that right now, but whether or not we may see some of that.
In coming months or quarters or.
So I'll leave it with that and then come back on the balance sheet, that's all right.
[noise] analog or how are you today. So if we got so it's a good question about the differentials and them.
Yeah, obviously, most of the pipeline and they selected to do its a double b. So the desk calm some level of stability and then differentials.
See this is stability coming going along since Q2, both of the LLS infill showing them the age.
My question is do you have to just said, but we don't see the him.
By the sea it may open as quickly as it was before because it's more manageable than it doesn't.
Doesn't mean that it cannot be open to the next future, but it's not going to be as extensive as safi. It's another one in Q2 because of the panic that independently.
That makes sense, okay, yes, it does.
And then the other question I had again kind of just thinking about the balance sheet and slide five in the presentation.
You know I think some of the reasons, we've seen a little little data depression in the stock is obviously, it's true across the space net debt has increased.
Was just wondering easy as you've talked about you know what you would want to use excess cash for how do you think about using excess cash to de lever recognizing its some of that debt, maybe even significant portion increases and DKL. So it's not necessarily that you either.
Need to de lever or can de lever on but just how you think about it overall as a as a structure of interest expenses or call on cash total debt debt to cap debt to EBITDA that kind of thing.
Roger I do well I'm sure you remember a mid cycle.
Target is very simple.
For decades for logistics and Yeah of course, the leverage goes up because the assets of DKL and EBITDA of DKL is going up so oh, a Dutch but at the same time to market cap of DKL goes up as well. So if you look at logistics, we target to be an outperformer now even though the a a D.
Uh huh.
So grass Oh J P. Morgan.
Hey, good morning.
Yeah.
First question is just related to you know unlocking value each other's have.
Kind of pointed at one of your peers, you know has a big Ms Midstream business retail business and refining company. They they sold retail to unlock the value. So you've done in the past I think you've indicated more recently that that these retail assets are more important to you but is this something.
As you look at your stock price that you consider.
First we we should look at everything in this environment.
Retail if you know is around $45 million EBITDA based on one of our Preet filling out there. Fortunately I don't know 10 11 times whatever the number is.
The question, what we're going to do with the money would market kept over $800 million, we don't need Capex, we don't have capex.
So that's a good question and when you say to yourself.
Market cap is 800 and retail is 500, you can buy the entire company for retail.
It's tempting to to look at it at the same time.
Retail is not maturing just yet we have a ways to go and we think we could get more value.
Question earlier about being store some of the thoughts that we built that doing very well.
So.
We believe that once we start getting free cash flow, which according to our mall it's around $8.50.
We shouldn't wait.
When I say dollars and 50 cents the market 532 is $8.50.
Yes, and when they got their free cash flow I mean after interest.
And after.
Catholics.
Okay. Thank you.
Yeah next we have Jason gave woman of calling.
Yeah, Hey, good morning.
Two questions first just a clarification.
On the $25 million on other initiatives I'm not sure if I heard you right. That's mostly the link to Webster contribution or if that's something else and then secondly, Ah kind of a more strategic.
Washington, It seems like it's a unique opportunity where you could kind of take a step back and you've been you've pulled back spending across your assets and kind of assess whether you want the future of the company to be and moving forward deploy capital as you see fit so I wonder as you're looking at your Port Folio.
Clear path 43 to five years will notify the market.
Got it thanks.
Thank you.
Again as a reminder, if you'd like to participate in today's Q&A. Please press star than one on a touchtone phone again that is star then want to ask a question. The next question would have will come from.
I I come in a bank of America. Please go ahead.
Good morning, and fill in and freaked out here I've got two questions. They are built on cross first question. So that crosses about 45% of the $70 million savings.
It sounds like some of this is related to lower utilization.
So what I'm trying to figure out is whether.
Some some of the songs I'm trying to figure out whether this topic's is mainly coming from one Q when the plant will be offline for an extended period of time for maintenance and whether there's any sustainable cost savings that will be able to see wants to plant comes on normally.
So clay if Blake at the end of the day, we're going to start the turnaround work here in November and that will spill through into March so really the utilization of crude.
There's going to be no utilization of the crude unit or the FCC will be running the alkylation unit and the reformer. So at the end of the day, the Opex savings will be embedded in <unk> and what I would suggest to you from a modeling standpoint is to just keep that opex removed for the year, if the margin environment improves and we feel we can.
Offset the operating cost reductions with improved cash flow from the margins will restart it but at the end of the day the cash generation will be there in some form or fashion.
Does that help you up.
Got it that makes sense.
The second question also on cross.
Have you guys explored operating the plant as maybe a terminal and whether that would be value accretive and I guess, what I'm thinking about is the aversion of maintenance capital.
Maybe asked another way what is maintenance capex today, and what does that look like X crops.
Usually a maintenance capex refining.
Primary by decides of cross is around $15 million to $20 million a year, it's not $100 million is not $1 million.
Remember, we we build the Archie so maintenance Capex is not all talk down the wrong and obviously, we're doing the sales are straight time, so we take advantage of.
Not so good environment, but you can in terms of modeling at $15 million to $20 million it took to $100 million.
I think that's the question great right.
Indeed, I I appreciate the answers guys. Thanks.
Well it does sound more so no further questions. We'll go ahead and conclude our question and answer session I would now like to turn the conference call back over to the management team fully closing remarks gentlemen.
Well. Thank you Mike Thanks for hosting this morning, I would like to think of my friends around the table My colleagues I'd like to think are you listening for us to us This morning, I'd like to think.
The great employees of this company.
We have been through a lot here together.
And.
They are great.
To walk with I'd like to thank the board of directors.
These are not easy time, but.
We're taking the right steps, thank you and have a great day.
And we thank you also said for your time today and so the rest of the management team again. The conference calls now concluded at this time you may disconnect July's. Thank you can everyone take care and have a wonderful day.
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