Q3 2020 Sterling Construction Company Inc Earnings Call
Greetings and welcome to the Sterling construction company's third quarter 2020 earnings conference call and webcast.
As a reminder, this conference call is being recorded and all participants are in a listen only mode. There.
Accompanying slides on the Investor Relations section of the company's website.
Before turning the call over to Joe Catello Sterling constructions, Chief Executive Officer.
Read the Safe Harbor statement.
On discussions made today may include forward looking statements.
Actual results could differ materially from the statements made today. Please.
Please refer to Sterling's most recent 10-K and 10-Q filings for a more complete description of risk factors that could affect these projections at assumption.
The company assumes no obligation to update forward looking statements as a result of new information future events or otherwise.
Please also note that management may refer to EBITDA adjusted EBITDA adjusted net income or adjusted earnings per share on this call.
Which are all financial measures not recognized under U.S. GAAP EPS.
As required by FCC regulations and rules. These non-GAAP financial measures are reconciled to their most comparable GAAP financial measures.
Earnings release issued yesterday afternoon.
I will turn the call over to Mr., Joe Catello. Thank you Sir Please go ahead.
Thanks Todd.
Good morning, everyone and thank you for joining Sterling's third quarter 2020 earnings call on this busy election day.
I hope all of you have either already voted were planning on doing so.
We often take for granted how great our country is and the freedoms that we have.
The right to vote and guide our future is one of those freedoms, we should never pass up.
Before we go over the results of another great quarter.
Let's talk briefly about where we are with our strategy to transform the company by reducing risk.
Increasing margins and diversifying our end Mark.
At the end of the third quarter, just over 50% of our total revenues came from our heavy civil sector.
And less than 30% over revenues are now coming from low bid heavy highway projects.
Remember.
In 2015, we had well over 90% of our business coming from low bit heavy highway projects.
This shift away from low bid high risk job too.
Two alternative delivery projects in other end markets like Aviation then rail.
Has enabled us to increase our total margins in the heavy civil sector.
Up low single digits to high single digits, and just a few short years.
Our residential and specialty service sectors now represent close to 50% of our total revenue and.
And contribute over 90% over operating income.
These lower risk faster turn jobs, not only produce more consistent margins.
Well provide solid positive cash flow.
Higher growth opportunities.
As we go forward the strategy will remain the same.
We will continue to focus on improving margins in the heavy civil sector.
And organically growing our lower risk higher margin residential and specialty service sectors.
In addition.
We will begin looking for strategic tuck ins and potentially a fourth sector acquisition once we achieve our post plateau acquisition targets.
Now, let's talk about the fantastic results of another outstanding quarter.
I'd like to remind everyone that no company can achieve the quarter over quarter.
Year over year results, we have.
Without great people.
And I'm proud to say, our 3000 plus employees proved again they are the best in the industry.
For the quarter.
Versus the third quarter 2019.
<unk> revenues were up 31%.
Our operating income and EBITDA, both more than doubled.
In cash flows from operating activities more than tripled to $38.7 billion.
Our heavy civil sectors revenues and margins were both down slightly versus the third quarter prior year. These.
These declines were predominantly driven by project mix and a change in estimated cost to complete a three Bay Bridge project in Texas.
The mix shift was driven by lower aviation and alternative delivery revenues in the quarter versus prior year.
We believe the mix shift was just a timing issue and will return back to normal in the fourth quarter.
Our residential sector was up 6% revenues and up 4% in operating income.
The modest decline in operating margin was driven by a temporary price concessions given during the peak of the pandemic.
Increased lumber prices and a higher percentage of slabs coming from our Houston market.
Our specialty service sector had significant increases in both revenue and operating income driven by the addition of the plateau acquisition in the fourth quarter of 2019.
Overall, the company had an outstanding quarter during some very challenging times and is positioned well to finish the year strong and on track with our guidance.
With that I'll turn it over to Ron to give you more details on the quarter and the year to date right.
Thanks, Joe and good morning, everyone.
I am pleased to provide a summary of our 2023rd quarter results.
With this being a full year of including the plateau acquisition in our consolidated results most of the acquisition integration and new financing noise related onetime costs are now behind us providing the cleaner picture of our financial performance.
The actions we have made.
Progressing our multiyear strategy, including the transformational acquisition of plateau continues to be apparent in substantially all of our financial measures.
[noise] today's conference call together with our earnings release form 10-Q, and the Investor deck posted to our website should provide insight into our strategic progress into but delivering strong earnings and cash flow and improving liquidity, while reducing risk.
Not to be overlooked this strong performance came during the most challenging period across our country and many decades.
Now, let me take you through our financial highlights starting with our backlog metrics on slide number five.
At September Thirtyth 2020, our backlog totaled a record high $1.238 billion, a 16% increase over the beginning of the year.
Heavy civil backlog increased 13%, while specialty services backlog increased 25% from the beginning of 2020.
The gross margin in our third quarter 2020 backlog was 12.4% a 90 basis point increase from December 31 2019.
[noise] unassigned low bid awards totaled $270 million at the end of September 2020.
We finished the third quarter with combined backlog of $1.508 billion, a 12% increase over the start of the year.
The gross margin of our combined backlog increased to 11.6% at September 32020.
Up from 11% at the beginning of the year.
Our year to date 2020 book to burn factors for the combined heavy civil and specialty services segment.
Were 118% and 117% for backlog and combined backlog respectively.
Note that the book to burn computations include only the revenues from heavy civil and specialty services and excludes residential revenue as it is not a backlog driven business.
Please flip to slide six for a summary of our consolidated results.
Now to slide includes quarterly results for Threeq curious, the second and third quarters of 2020, and the comparable prior year third quarter.
Given the magnitude of the plateau acquisition and the related acquisition financing and changes in animal well accounting.
Which occurred in late 2019.
Second quarter of 2020 was included to highlight the quote unquote same store sequential quarter revenues.
[noise], our third quarter 2020 revenues of $383 million increased by $92 million or 31% over the comparable 2019 quarter.
Third quarter 2020 specialty services revenue increased a 100 $507 million over the comparable 2019 period driven by the plateau acquisition.
The acquisition was also the major driver of the significant increase in gross profit and the 300 basis point gross margin improvement over the periods.
The Q3 2020 revenue decline from the sequential prior quarter reflects a $17 billion reduction in heavy civil revenues.
I will discuss the significant year over year segment results in a moment.
The increase SGN eight from Q3, 2019 reflects a plateau acquisition, including corporate related costs, while SG and they probably EPS due to a decline in sequential quarter was principally the result of lower stock based compensation expense.
The third quarter 2020 decline in other operating expenses net for both prior periods.
Reflects a decline in gross profit from our 50% owned consolidated subsidiaries, reflecting a lower income sharing expenses.
This decline reflects the temporarily lower revenues during the during the <unk> and gross product gross margin.
From a mix change in mix in Q3 2020.
We continue to expect our full year other operating expense net to be in the 14 to 16 million dollar range.
Operating income for Q3, 2020 was $29 million for an operating margin of 7.5%.
Which was consistent with our expectations.
Operating income for Q2, 2020 totaled $33 million and operating margin of 8.58, 0.25%.
Our record second quarter 2020 operating returns benefited from entering the second quarter with record combined backlog.
And poor weather in Q1, 2020, which push incremental revenues and earnings into 20 into the 2022nd quarter.
Higher net interest expense in both 2020 periods over the 2019 period reflect the acquisition.
Related borrowings.
Our effective income tax rate for the first three quarters of 2020 was 28.5% compared to 8.9% for the comparable 2019 period.
Beginning in 2020, our income tax expense includes a non cash tax provision of approximately 22% of our taxable income.
Approximately $11 million year to date.
We expect our full year effective income tax rate to be approximately 28.5% increase from our previous expectation of 28.2%.
Our third quarter net income totaled $15.2 million or 54% 54 cents per share.
Compared to the third quarter of 2019, net income of $8 million or 30% per share.
Third quarter 2020, EBITDA increased more than two times to $36.7 million from $15.4 million over the comparable 2019 period.
Slide seven highlights the third quarter segment results segment results.
Heavy civil revenues decreased by $18 million or 8% in the third quarter.
Reflecting a $6 million increase in heavy highway revenues and a $24 million decrease in aviation and other heavy civil revenues.
This temporary revenue mix change to a higher heavy highway component had a negative impact on our operating returns for the quarter.
Also during the quarter heavy civil resulted results included a charge for increased estimated cost to complete a three bridge project in Texas.
We continue to expect substantial completion of these three bridges in the first second and third quarters of 2021.
The increase in specialty services revenues and operating income primarily reflects the inclusion of plateau in the 2020 results.
Additionally, plateau entered the 2022nd quarter with record backlog and as I previously discussed.
Poor first quarter weather pushed work into the second quarter.
Both of these factors together with a back with a favorable project mix contribution to the second quarter 2020 operating margins.
Third quarter 2020 residential revenues totaled $42.4 million square, a 6%, 6.3% increase over the third quarter of 2019.
Our Houston expansion continues to pick up speed.
Houston accounted for 15% residential third quarter, 2020 completed slabs compared to 11% in the third quarter of 2019.
Residential operating margins declined 50 basis points in the Q3 20 period reserve.
Resulting from temporarily.
Temporary coated nine COVID-19 related pricing pressures from our customers.
And significant cost increase for lumber and concrete during the quarter.
Now, let's move to slide 18, which summarizes our cash flow generation and deleveraging strategy.
I'm sorry slide eight.
The graph presents our deleveraging expectations beginning.
Beginning with the October 19 Plateau acquisition, and the new five year credit facility. Our September Thirtyth 2019 pro forma forward looking EBITDA coverage ratio was approximately 3.5%.
Based upon our continued progress in executing the strategy to strategic actions to improve our base business results and our confidence in the quality of plateaus future cash flows we were comfortable with a higher acquisition related day, one leverage ratio.
We set the objective to bring the coverage ratio down to 2.5 times by the end of 2021.
The graph reflects where we are to date and our targets through the end of 2021.
Importantly, only the scheduled funded debt payments are included in the leverage compensation for the future periods presented.
During the third quarter, we repaid the $20 million of revolver borrowings, which were outstanding at June 32020.
At the end of the third quarter of 2020, we had zero revolver borrowings and have full availability of our $75 million revolver.
Our confidence in our de leveraging strategy has been reinforced by the experience of the first four quarters.
I told results together with Sterling's base business performance and our consolidated expectations.
Example, supporting our confidence and competence includes.
Record backlog levels with increasing gross margin.
Secondly, our first nine months of 2020 performance exceeded our initial expectations supporting the mid year increase in our 2020 revenue and net income guidance.
Even with the challenges of managing through the continuing Govan 19 issues.
Next our adjusted EBITDA for the first nine months of 2020 totaled $99.2 million.
A $57 million improvement over the 2019 comparable period.
We continue to believe that our full year 2020, adjusted EBITDA will be in the $125 million to $135 million range.
In addition, our cash flow from operating activities for the first three months of 2020 totaled $90.9 million.
A 10 fold improvement over the $8.5 million of cash flow from operations in the comparable 2015 period.
For the full year 2020 in addition to depreciation and amortization, we expect additional non cash expenses totaling $24 million to $28 million.
These non cash expenses include utilization of our rental well stock.
Stock based compensation and non cash interest expense.
Finally, moving to our balance sheet, our September Thirtyth, 2020, cash and cash equivalent balance totaled $72.6 million compared to $45.7 million at the beginning of 2020.
This cash increase reflects investing $20.5 million on net capital expenditures during the year to date 2020 period.
Finally, please note that the third quarter 2020, investor deck posted to our website includes an appendix to assist our stakeholders with modeling considerations understanding the key components of our cash flows and various non-GAAP disclosures.
Now I will turn the call back over to Joe Joe.
Thanks Rod.
Once again another outstanding quarter.
As we look forward to the fourth quarter and beyond.
Our Dallas and Houston residential markets remain strong.
At our largest customers remain bullish for 2021.
Our specialty service sector markets are driven by multiyear build out strategies that have already become stronger as a result of the pandemic.
In the heavy civil sector, we have seen several states around the country reduce their 2021 deal t. budgets and we anticipate 2021 bid activity across the country will be down slightly versus 2020. However.
However, with our strong backlog improved backlog margins and our diversification away from heavy highway.
We are less concerned about.
About a significant impact in 2021.
And believe 2022 will return to historic or above historic levels for the duties.
As a result, we're holding our full year guidance and anticipate continued bottom line growth into 2021.
Our full year guidance of $1 billion $415 million to 1 billion or 430 million in revenues.
And adjusted net income midpoint of $42.5 million, representing a 73% improvement over 2019.
And we will deliver approximately a $1.52 and earnings per share to our shareholders.
Overall 2020, we will be another outstanding year for the Sterling team and its shareholders.
With that I'd like to turn it over for questions.
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First question is coming from Sean Eastman of Keybanc capital markets. Please go ahead.
And gentlemen, nice job this quarter.
Thanks, Sean.
I just wanted to start on the civil margins I'm, just trying to get some perspective on.
Both the charge in the quarter the.
The increase in cost to complete as well as the mix dynamic.
Just as I try to think about where.
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Heavy civil margins should trend into 2021, I'm trying to understand what sort of a normal ranges there and understand how the mix is shifting in that business as we look into next year.
Yeah, I'll start off with the mix piece and then Ron can get into the details I wouldn't get.
Two analytical and overly concerned about a significant mix change just really a timing issue.
Yes, or active projects in this quarter in aviation last year. We've got aviation projects that are just getting ready to start we've got the three big design build projects that are in the early stages are fully ramped up so you've got that that's the you know the challenges you always will have some lumpiness in this world.
Will.
And it's really hard to compare I would tell you when we look at our backlog.
Breakdown of our backlog, we have not seen a significant mix shift with the exception in general we've gotten less and less of a little bit heavy highway and as we go into next year, we will continue to shrink that part of the business.
Going to go into the.
Margins and sure. So yes, a couple things in the quarter, but the largest single item is the updated cost on the.
Multi multi bridge project.
Northern Texas here.
This is a project that dose those bid and won and thank the third conducting it seems like I can do.
It would be.
It is making progress we continued to have challenges with the owners design.
And the related productivity comes out of that so.
We took a three and a half million dollars charge in the quarter. The good news is we're still on pace to finish those jobs.
Schedules are moving.
Forward on a couple backwards on one but.
In the end, we continue to expect hitting our dates that we thought we would hit at the beginning of the year.
After the fourth quarter true up and settlement, we had with the Texas. The project. So I'm one of the things were doing on that project is.
Yes, we will I'm sure between now and the change.
Change orders claims that we will try to fight for however.
We've taken the approach that we're paying as we're going and if we see a cost increase we're going to take that hit now.
So that we don't come to the end and we've got a big adjustment or change so were adding to that very closely and if we think we've got an adjustment we're going to take the the punishment and we'll fight for claims and change orders when we get to the end and hope we get some of those but we don't have work, we're trying not to build.
Theres Big Pent up rich, yes that project.
Yes, and then moving back towards the mix sort of.
Beyond the three and a half million dollars.
Got it perfect storm or bad Perfectstorm, maybe in the quarter. So yeah, our aviation revenues were down by about 50%.
That is temporary we have just under a quarter $1 billion of backlog yen.
The Asian.
So we should see that recover in the back half of the year. The most significant projects are in in Salt Lake.
At Salt Lake City Airport in a couple of others. So.
Together with the other large aviation in there is the project.
In the Pacific, which will really burn again.
Late first quarter and second quarter of 2021, so timing on those primarily.
In the meantime, we continue to focus on the mix change from continuing to put pressure on.
What we bid on for hard bid or low bid kind of same terms, we use work.
Work in that in Texas, particularly which is predominantly hard bid state.
State, So I think Texas revenues for the quarter over quarter were down 16 $60 million by design.
And.
We will continue to work on that ratio to continue.
Continue to focus on alternative delivery, a non pure heavy highway.
Hard hard bid opportunities. So I think we'll see that trend start to reverse as we continued to ramp up.
The projects.
They have been ramping up slower than our book to the three big.
Alternative delivery projects in in the Rocky Mountain region, but they are full speed ahead at this point in time, and we will continue to ramp up and as always subject to.
Weather coming up on the back half for the fourth quarter will be when we get some snow bye.
In the Rocky Mountain States are at so I think.
Hopefully back to usual and.
I think when you look at our backlog of a billion and a half combined.
To Joe's point earlier, we do expect a slow down in 2021. However, we have about when you do the straight math a year in three quarters.
Heavy civil backlog, which is probably the longest duration we have had.
A long time, so we're in good shape for 2021, we'll see what happens on the bidding activity.
Okay.
Back to a little normal and.
And we move forward.
Got you a lot of helpful detail in there just to round out the discussion you know.
As we look into next year with the alternative delivery projects ramping up presumably it sort of above overall segment.
Average margin.
What should we be kind of holding you guys accountable to in terms of where this heavy civil margin heavy civil operating margin should be into.
Into next year shouldn't be north of 2% if any.
Just rough idea.
Range of expectations for.
So.
What you would see as an acceptable.
In performance in that segment next year.
I don't think we see that margin going backwards by any stretch of imagination will continue to tip up tick up from Historicals is we.
We got off more and more of the low bid heavy highway that's our lowest margin stuff.
Ticket or of the the alternative delivery.
In aviation, we if you look at the differential margins, there's several points between the two.
I'll call the low bid and.
Cut into alternative delivery so Sean.
That should not be going backwards that should be ticking up slightly and following if you follow our backlog trends at our margins in our backlog trends we picked up.
50 basis points or 60 basis points, yes overall.
Overall, the margin should follow that we've been very good.
Executing radar at or slightly above the average bid margins.
The anomaly this quarter is that all three bridge project, where we took some more costs that we think we're going to have between now and yet.
Got it okay. As you look as you look backwards lightly.
We essentially.
Finally, our wound down our big projects all by the end of 2019.
2020 were really just ramping them up in a good indicator of our largest of those is our minority interest which.
Year to date is one hundreds of thousands and.
And that's about half and half the.
Hap ownership, if you will by our partner just under half.
So that is that that is a key indicator that we really have very few heavy highway Alternatively alternative delivery work in 2020.
That ramp up a little bit fourth quarter. So long story short if you look at Q3 year to date last year before the before the fourth quarter.
Yes, we would expect to beat those that kind of average margin going forward simply driven by the continued shrinking of that hard bid component of heavy highway backlog.
Gotcha, Okay, great and then shifting over to specialty clearly.
Marquee year.
This business.
Pretty impressive results I just wonder.
That's a really tough comp.
This business as we look into next year it seems like the end market visibility.
Visibility and demand is very resilient, but I wonder about.
From a capacity perspective is there a point at which you are you've got to sort of ramp hiring and training and maybe some capex to actually grow.
Yes.
Hey, you're hitting the nail right on the head we are.
Our biggest challenge as we go into 2021 is that capacity is not not on yellow wire, we can always be yellow wire, but yes.
The growth of the plateau business this year far exceeded everybody's expectations.
If they are stretched to the limit right now and were working well.
What we call an active recruiting and training program for the next generation or incremental project managers and those sort of resources, but the reality is that takes time. So we don't expect anywhere near.
The.
Increase next year that we saw this year year over year, but we'll see.
Some increase the markets are strong we feel very good about the market is just how much can we take out and make sure. We deliver that same level of quality and service to these key customers and the last thing we want to do is disappointed by trying to grow the business too quickly.
Interesting. So thanks for all the color I really appreciate it guys.
Thank you.
Thank you once again that is star one to register a question at this time.
Next question is coming from Brent Thielman of da Davidson. Please go ahead.
Great. Thanks, good quarter.
Thanks, Brad.
Maybe following up on.
Specialty Joe talk a little bit about the market dynamics. There. What are you what are you hearing from your customers is there.
Unusual delays anything like that.
Good friends and sort of external expectations into 21.
Yes, I think.
What weve heard what I think people underestimate is is the the the big customers out. There. These are multi year plans right. So if you take home depot, they've got a five year plan.
Amazon's got a four to five year plan and and so they are pretty solid on those plans. So there is some good visibility out there if anything.
We think between the data centers.
And the E commerce side of the World.
With the pandemic the activity around that seems to be.
Greater okay in the need is obviously greater.
And we think that we will see as we get in a little bit further into 2021 not only these the same core customers that we've historically done business, but we will see more and more activities from other customers that are trying to accelerate their E commerce activities now.
The difficult thing to that is as you can imagine, meaning you don't just flip a switch and say we're going to double our distribution centers in E. Commerce. There is some lead time with buying the land securing the locations all that kind of stuff. So I don't think we'll see a major shift early in 2000.
21, but I think as we get into the back half of 2021.
We'll see not only in the beginning of 2021, we'll see continued strength with our core customers, but in the back half of 2021. It wouldn't surprise me to see some bigger programs put in place by some of the I'll call. It. The next tier of customers that are really earlier in the ecommerce space are there other strategy.
Okay. Joe can you talk understanding you.
Guys going to focus on paying down debt de levering here over the next 12 months, but can you talk about some of the initiatives you have for the business next year related to either.
Adding new markets to specialty in residential or or even down sort of across the cross selling opportunities, where one can leverage the other's capabilities.
So what we'll start with residential.
The nice thing is that the Houston market is on fire and continues to be on fire. I think people are finally, realizing everybody thinks of the Houston market is oil driven markets that is no longer. The case. This is a rapidly growing market for a lot of different other business reasons.
We have plenty of runway within used it to.
To grow out over the next 12 to 24 months without any problem and still not have a dominant market share I will tell you, though in parallel we're early I think as we get into the back end of 2021.
The Austin market appears to be coming up faster than we would have anticipated with the announcement of Tesla moving there and a few other big companies moving operations there.
And we're seeing builders tried to acquire land in and around that market.
It greater rates than they have historically.
So I think as we get towards the end of 2021.
If it continues down this path will be talking about Boston more for 2022 timeframe.
On the specialty side read our strategy is to lead our.
Our key customer pull us to new geographies with them.
And the nice thing is we have recently been coal to Tennessee with Facebook.
Add to Mississippi, with Amazon, which are both two new states for us to new geographies, and we're going to let them kind of drive dictate where we go with Doe and where we expand that's our that's our first premise. We do also believe.
There are sub.
Within the geography geographic footprint.
Specialty.
There are some other markets and customers that we historically have not gone after.
Which would be doctoral organic growth for us but in parallel.
You know we talk about buying that debt will continue to do that accelerated rate. If we could find the right tuck ins to add incremental goods or services I'll call it to the specialty sector, which could broaden their footprint with their existing customers.
And get these.
I'll call it accretive margins to the company.
We've started talking about that that approach and have been kicking around some different ideas it back in that space.
Okay, that's great maybe on residential talked about a little bit of.
Compression in margin that I get the inflationary.
Affects there, but more more wondering about the negotiations with customers getting back to kind of the pricing levels you've seen before.
Yes, I would tell you.
With the exception of one customer if the if the existing time all the other customers have gone back to their historical pricing. We still have one customer that is resisting but the others went back so we got a little bit of a timing issue there and we believe that lumber prices should start coming back.
Back to normal in the first quarter of 2021.
You know we saw lumber you kind of put it in perspective, I think it was costing us over $300 more per slab and just lumber prices so they more than doubled.
For us in the period and that doesn't sound like a lot, but when you're doing the volume of slabs that we're doing.
It is a tremendous about remember the slabs are smaller now than they were so as a percentage of cost. It's a sizable sizable increase so the team did a great job of overcoming a lot of that cost. It would have been a lot worse, if they just kind of took it and what status quo.
It was just it just a reality and the timing of that and unable to push those costs on the middle of price reductions.
Okay, great. Thanks, Joe maybe one more Ron.
I take the.
The EBITDA guidance, how much free cash flow you generated year to date I mean, it looks like you guys to be doing 90 to 100 million in free cash flow. This year is that.
Roughly what you're expecting.
It is it is I think.
The team across all of our all of our segments. They have just done a fantastic job of managing.
Not just collecting but their their whole investment.
Contract capital and otherwise so I think we will continue to grow that a bit and be in that range at the end of the year I think to your earlier question. We are locked in now since we kind of got a better feel for the fourth quarter and capital needs that will be a $20 million to $25 million in that capex.
Wouldn't it wouldn't surprise me if that number ex up in 2021, but more to come on that once we understand that.
The plateau, particularly.
They don't throw Rob little little Bobcat nature around multi hundred dollars piece of iron. So we are very very focused on making sure. We get our best returns fed as they will have to be fed and new capex. So we'll be out we'll be talking about that focus obviously in that early 2020.
Anyway, Okay, well maybe to push on that just a little color Ron I mean respect the fact capex might come up a bit more but its plateau.
Holds up.
And the next year, obviously, the residential business, probably looks pretty good civil works I mean, as any any reasonably again generate.
Generate around this range of free cash flow again in 21.
No I think our model is working and we wouldn't expect any big change in the model.
Yes.
Yes, okay. Thanks, very much guys congrats again.
Thanks, Greg.
Thank you at this time I'd like to turn the floor back over to Mr. Catello for closing comments.
Thanks data like.
I'd like to thank everyone again for joining todays call. If you have any follow up questions or wishes set up a call. Please refer to the information provided in the press release associated with our Investor Relations.
Thanks, again for production participating and I hope everyone has a great day.
Ladies and gentlemen, thank you for your participation you may disconnect your lines and welcome to the webcast at this time and have a wonderful day.
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And.
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