Q3 2020 Savaria Corp Earnings Call
Good morning My.
Name is brandy and they will be your conference operator today at this time I would like to welcome everyone to the severity corporations Q3, Twentytwenty conference call. All lines have been placed on mute to prevent any background noise. After.
After the speakers remarks, there will be a question and answer session. If you would like.
Ask a question during this time simply press Star then the number one on your telephone keypad. If you would like to withdraw your question press the pound key this.
This call may contain forward looking statements, which are subject to the disclosure statement contained in savoury. His most recent press release issued on November the 11th.
2020 with respect to its Q3 Twentytwenty results. Thank you Mr. Brown you may begin your conference.
Thank you after she cancer detection.
She did time debt.
Our analysts or the people listen.
Listen to the call.
And do you see a city, we will reduce our number.
I think this is a great number and even its a greater number like when do we see that people have that be the body me that we have the.
He's doing a three quarter or two to quarter to quarter, Okay. So far.
Right and that they are getting the people once they own and are they need some macoupin because of the movies. The when youre aging is not there.
So best example, looking at good the first day, meaning if in my house and they enjoy John.
And now they suddenly it is in the center, that's there and suddenly my.
Houses exit accessible on three levels.
These projects.
It could be could be.
Non of climate gate, but that the future of seven yeah. When you speak about a worldwide that should not many people can see we have products that can be said sell everywhere because.
The aging of the book do you shouldn't it's not just in North America is across the world.
So were right now on T. and the acquisition of the motor acquisition.
Perfect.
What is perfect weather very good the balance sheet. So we can go to make overnight some ER.
Interesting acquisition for sure in 2021 will you will see that we learn okay too too.
To use more team. So we can visit factory, okay overnight, we can't do a lot of a lot of deal.
No not really because yes that we have the people.
As I mentioned high risk.
Research new people.
Because everything in the company. The success is about people, but we have to add products and now we have a winter weather you ever where you had to be quick on the market that gets pushed out okay quickly.
So this morning on the call.
On the finance update we add Steve.
Absolutely we have a question or can you speak with steel and after that gave that Jacobs to me will make it into the discussion of our findings of Q3, we haven't the colleague Nicholas.
What.
Is the and looking with the acquisition but.
He is looking to about this.
Okay.
And even if say, we'll get you that even if wed by any means and why not too bad with that we're at a percentage of bids.
So it's not that you visit.
So you'll see that but the will the answer to your question everything about operation that would be Sebastian Sebastian no Aldo.
Factory.
And is the responsible of the application approval for the Cove. It. So we would tell you what we have done and.
We have quite successful so far.
Nothing is a winning situation, but we have always to take care of what people people is always very important for us.
And for everybody I wish, so well pick out that where customers.
We have to be sure that the reinstall equipment safety.
And.
So and that after that you can speak with may not be all that.
And there are.
For the vision.
The division and Thats It Thats as you want to speak about automotive.
Our issue and to speak about the unit.
And.
We are excited about this project.
And I take the opportunity to.
Two tanks Jim Okay.
That.
My Guy Okay from span.
Within Canada is achieved.
We achieved on there so is it right to retiring at the end of the year So Jim.
Thanks, very much for the time, you pass wits area and for sure. Okay. I wish you good luck.
And we will process right now with Steve.
So to speak a bit about finance of the of the quarter.
Steve.
Thank you Marcel and good morning to everyone on the call I'm going to begin this morning with some remarks regarding our Q3 2020 consolidated financial results.
For the quarter the corporation generated revenue of 90.8 million yes.
Down $5.6 million or 5.8% are to the same period in 2019, mainly attributable to the economic slowdown caused by the global COVID-19 endemic.
Gross profit and gross margins stood at 32.6 million and 35.9%, respectively compared to 32.1 million.
33.3% for the same period of 2019.
The increases in gross profit and gross margin were mainly due to a more favorable product mix and continued realization of PR event to lift integrated integration related synergies derived from the corporations accessibility segment.
Adjusted EBITDA.
Adjusted EBITDA margins stood at 16.9 million, an 18.6%, respectively compared to $15.7 million at 16.2% for the same period of 2019.
The increases in adjusted EBITDA, and adjusted EBITDA margin were mainly attributable to a better product mix.
Continued realization of garment that lift related synergies pertaining to our accessibility segment as previously noted.
In 2.5 million neutral that 19 employment retention government of Canada subsidy and corporation wide ongoing cost containment efforts.
Now I'm going to move on to our segment results.
Revenue from our accessibility segment was 68.5 million in Q3 2020.
A decrease of 5.9 million or 1.3% compared to Q3 2019.
The contraction in revenue is mainly attributable to the continued impact of the economic slowdown a repercussion of the global.
Of the 19 pandemic.
Adjusted EBITDA and adjusted EBITDA margin, both before head office costs stood at 15.3 million and 22.3%, respectively compared to $12.5 million and 18% for the same period of 2019.
The improvements in both metrics.
Were due to a better product mix.
Continued realization of garbanzo lift synergies and ongoing cost containment efforts.
Revenue from our patient handling segment was $17.4 million for the quarter, a decrease of $4.2 million or 19.4% when compared to the third quarter of 2000.
16.
Organically revenue contracted mainly attributable to a reduced volume of sales in the long term care market and repercussion of local COVID-19 pandemic.
Adjusted EBITDA and adjusted EBITDA margin, both before head office costs stood at $2 million and 11.7.
Percent, respectively, compared to $3.3 million and 15.2% for the same period in 2018.
The decrease in both both metrics were mainly due to a reduced volume of sales in the long term care market, a repercussion of a global COVID-19 pandemic and a sub optimal 2020 revenue.
Product mix.
During that span, which was partially offset by some contribution from our soberly acquisition made in Q3 of 2019.
Revenue generated from our adopted vehicle segment was 14.9 million, a decrease of $5.6 million or 10.3% when compared to the same period of 2019.
From adjusted EBITDA, and adjusted EBITDA margin, both before and office costs were fairly flat to last year, finishing at point 3 million and 5.8%, respectively compared to <unk> point $3 million and 5.2%.
In Q3 2019.
The decreases in revenue and adjusted EBITDA, when comparing Q3 2000.
20 to Q3, 2019 again, mainly due to the economic.
Excuse me slowdown every professional the global silver 19 pandemic.
Now turning to some financial liquidity metrics the corporation and ended the quarter with a net cash position of $49.3 million.
The combination of strong.
Strong earnings in the period and discipline in terms of working capital management and capital expenditures were key in continuing to improve our cash position all the while in the midst of the global COVID-19 pandemic.
The corporations trailing 12 month net interest bearing debt to adjusted EBITDA ratio remain minimal coming.
At effectively zero, providing ample liquidity to fund future business endeavors and potential business acquisitions.
Looking ahead, given the anticipated global COVID-19, pandemic, social and economic related repercussions for the remainder of the year being able to provide a Q4.
Forecast remains extremely difficult however, based on a strong backlog intake in Q3, specifically within the accessibility segment and its ongoing cost containment efforts the corporation as optimistic for the last quarter of 2020 and expects to exceed the 55.6 million.
Revenue and adjusted EBITDA realized during fiscal year 2019.
And with that that completes my prepared remarks, and I will turn the call back over to you Marcel.
Thank you ever had a much wider than and as you mentioned and were in good position, okay with that where I am with our cash.
So with that word AD blocking and you know, we always make survey actually speak with our dealer and.
And everywhere allocating key acting eight that.
But they have some opportunity to increase sounds like in the coming quarter, but as you.
Okay, how about that and his expertise and it goes above the guys in Australia, some problem with medical and looking at a rate case that we obviously will have some kind of travel travel, but the spirit does that can we managed to present the numbers that you see so we are ready for questions.
At this time, if you would like to.
Ask a question. Please press Star then the number one on your telephone keypad again Star then the number one.
Your first question comes from the line of Derrick lets start with TD Securities.
Good morning, everybody and.
Good morning, Im happy to be on the call. Finally, I Hope you guys are all safe and healthy.
Okay.
My first question is on the patient handling segment, you did point to a sub optimal product mix there as one of the margin pressures I was wondering if you can maybe add some color there and and maybe what the ideal mix actually looks like for you guys.
Yes, Hi, Derek.
Yes.
As it relates to the product mix there.
The.
The best margin product that we sell within that division is certain of our high end foam mattresses.
So I guess in terms of the product mix going in here.
The bed frames that something.
We did experience I guess, a sub optimal mix there in terms of the types of bed frames were selling some more the lower end bed frames that were sold into the period.
Again, the services remains depressed given the selling environment, that's again, a very tough selling environment and to long term care.
On the flip side, we did see.
One of the bright spots that we saw in the quarter and that I would say year to date in general has been on the ceiling lift. So that's a product that in terms of margin is actually helping us. It's a kind of more of a higher higher margin product for us the lifting slings. Unfortunately is kind of on a on a smaller base. So if you think about it relative to the rest of the.
The patient handling division it still is quite small as representative of the overall sales.
But I think going forward as that increases.
We help to balance out the margin within that segment.
The biggest country.
Contributor I would say Derrick as it relates to the margins within within patient handling is really the volume alright. So.
If you think about us losing.
Picking up almost 20% in terms of revenues there within the quarter instead.
It's difficult to absorb.
Much of our fixed cost overhead when you have that kind of decline in sales I would say on the again another bright spot is that despite the decline in sales I think I'm very proud of the team that we were still able.
Liver, an EBITDA margin that was close to 22012% and the quarter. So it's I think we're very positive on that front, but again going forward I think what's the most optimal forces if we have a better mix of those higher into foam mattresses.
Certain powered surfaces that we sell within that segment again it makes it maybe more of the high.
The trend bed frames, and the and the contribution or greater contribution from the sling and the inpatient lift business.
Yes, Nick Thanks for that that's us some great color.
Maybe just one last one for me before I re queue.
Are you guys able to lift them in order maybe magnitude the.
Hi, Reiber the margin expansion, whether it's from synergy cost containment and maybe the wage subsidy.
Hi, Jeff Hi definition division of our everywhere I guess overall Marcel.
Okay.
And then Scott I think you answered that could be the it's about what they can do you know do you agree.
As you know there.
Yeah, the supply from China, so, especially.
That's what Eric Good morning, So I think a big expansion a as you can see came from or extra CBD segment, and I would say, there's pretty fine factor to that I would say better product mix.
Marine you drive by review live sale.
We live has been on top of an engine dozens of beginning of the year, we do more marketing more R&D.
And it's a long cycle time to put the beauty of it might take say, it's rich will quickly. We just six month conversion cycle, but if it's a new construction might be one year two years. So we put a lot of seasonal and transform result.
I'll turn in Chile.
Really if you do see a big contributor.
We have been very careful this year with our cost containment efforts. So that is an equipment failure.
We are not spending too much on travel those days.
So that's where you haven't done if there's a big improvement when we bought we had to have some synergy plan.
Chris or two or three years, and I think as Vince and I do want to do in Europe are doing a fantastic job to implement those changes are open mind.
Change so I think this is moving in the right direction.
We also have area I think where we have a.
Good improvement in each store location for proximity refractory or productivity.
Is that it is best to this year, so very good improvement there. Unfortunately, we subsidy has contributed to convert a portion.
Well don't forget one thing that were subsidy was there to protect the employment, we have let's say that we need all those person, but it took us many years to bid. This organization. So it's important to be patient on the side because we see some good growth.
Going forward.
Okay. Thanks, Thats very helpful. I was just wondering maybe that on the GAAP EPS to lift how much how many or I guess, how much more synergies do you think you.
You have in the pipeline.
No I think we are at the beginning I think.
This has been a very been implemented in North America in terms of percent.
They've been doing unfortunately, we don't disclose the percentage per segment of the within the accessibility for the next phase is really rolled up.
We have good potential we are direct in five countries and Swiss Germany, Italy for lung and check and I think we need to increase our number of dealers that can offer.
First is the government of product in Europe.
And then if you will if we are putting a lot of effort there again.
Just to sell and then when we said we'd have Directv you can imagine that would bring some very good contribution. So I think through up it will be part of the big improvement together.
Actually that's about it.
That's it.
Your next question.
Our next question line of Frederic TEP Tremblay with discharge again.
I was looking at it.
So.
First question is for Nick.
Recreating.
Capex spending will return on long term care facility in North Dakota restrictions are lifted.
Anything that can be.
Can rebound quickly and European.
Yes, I do think that longer term, we feel very positive about that about that business.
For sure over the next several quarters.
I'm sure you're well aware in the us.
It seems as if were going through maybe a second to maybe second or third wave im not sure how.
I quantify there and so I think for the foreseeable future for the next you know a couple of months couple of quarters it might still be difficult, but then exiting that I do think you will see increased spend in a in those facilities. We've.
We've already seen it we've seen some you know some some projects being announced for new construction. So some newbuilds.
We also are seeing.
You know certain I guess demands from clients.
For increased budget spending for the for the upcoming year. So I think that will also help it's difficult to know the timing, but I do think that once we kind of get through this kind of the severity of these lock down something I can't really give you any sense of when.
That will be but but once it is lifted I think we feel very strongly in the space there won't be investments made HM because there's a need for for these types of services and at the same time no given that they have been restricting access for patients in many of these facilities.
I do think that there is a need to increase spend whether it be on.
The beds, but just in general.
Within the long term care space. So I think it will come back. It's just a question of timing and that's it's difficult. Unfortunately for me to give you any visibility there.
Okay Thats helpful.
Mckesson on the units.
Can you provide some detailed on on the marketing strategy, there and sort of the.
So success that Youve seen there in terms of lead and and new orders.
And finally I'd like to thank you for this question Okay.
Because you know that they have.
Yes number one that keurig guaranteed EPS.
Like this project, that's going to be a worldwide pratik and don't forget that they would time alone to be conservative, but sometime too conservative.
We will you will we think that the goal is to have 600 Vicki.
Usually it's OK by.
By 23 by 2020 screens it's.
That was a recurrent and.
You know that will make 30% if it does so you put that to get the 40000 U.S. each that without an average so we'll get that they would gain at the.
10 million, Okay on EBITDA just because.
In closing date.
In 2023, just to just sit in it because we as you said new products.
But if we say 600 is it is it big picture.
Let's get nothing.
If I sell 600 that there may be a little bit down read them for me to retired and I wouldn't want to readout.
So we manufacture.
Right now roughly two on 2000 and the major Iraq.
It would get into us today in China. So we will then collaborators.
When do you think that the market is bigger we have Ulive then what we do in that innovators.
Yes, you are right forget it you say, yes so.
Relief can.
I can put that some planes that we cannot put elevators.
No just a new house, but in existent outs like.
Like I repeat it okay. So again that add the first one is for.
For sure Okay, we improve.
So.
We make the installation at night placed but.
No I have no place to put their makers, because we need like five feet five feet by type fee gave to put the innovator and each Clark and it has to be straight cookie and yet the advocate that entry level you put that.
Look at the middle of this debt and you get accessibility for each entity is just elaborate so thinking about something we were doing.
Doing okay. Good if it does what.
Vessel began products 30%.
People, Okay I just wanted to see that our products do you see I just.
Demand is Brian it is spectacular.
And for sure with the division Okay to Trudy letters you are very there you can see the ocean or we are in the month end user demand thing is it.
It is the projects okay.
Short term, okay and medium term, that's the products of the future et cetera.
Yes.
And how about two questions that are Derek we will you know that we'll see some grant funding from the government core system.
That the company that we lose a little bit doses of sales and we take this extra money, okay to improve service area and push outs and personnel.
In a way that we are right now.
We're getting last week I gave you last week, there will ever get to to put the new system located four at core again integration all the consolidation of our accounting.
We recorded to pay like six weeks, Okay. That's would be finish up at the same time next year.
Steve will report you in four weeks.
So we want to be like somebody went organized and we will we are well organized that but we'd be just bid. So after that the key west we need at the some people around the world, where some inquiry acai from from the from.
From Europe again that some.
People see our products, Okay and the other from other company and is that Hey, it's exciting I went to work for you, Okay, what would push us politics. So.
So.
We will do the things they are writing and we have some just put in place that we came in the picture. The viewed it now is just it just in Toronto, but we will be in China and what would.
In Europe manufacturing directly.
So that's good.
I guess my vision of what they have right now on the unit. The many of you live is it.
That's a new version you know that were by like three years ago.
This company from the from the states, Okay from collaborative and and.
The Guy went went went winning back when you sell his company doubling our shelf you will see okay. You list out quickly 100 million that you have just projects and I was thinking Oh, and you know something you want to sell even so but no they've gotten is very much what is right. He has a better vision at the time than me, but it was with the companies will come Lumpier. So we take.
The projects make some modifications put the cold Turkey and.
To be sure that were complaints everywhere when you install that so I'm very excited about the future would that put it Eric.
Great. Thanks, Marcel last question for me would be probably for Sebastian.
They were.
And with a strong balance sheet, there's never been room for significant M&A activity.
Just curious to get your thoughts on.
What was learned from past acquisitions of both Japan, and Europe and found that you can apply to the M&A strategy going forward. Thank you.
Okay.
Yes.
Yeah Okay.
I was trying to increase a bit and basically I think the but the best thing for that we have learned a forget is to make sure. We're very synergy action plan ready prior to close the transaction that we can have a good action plan for the first two years and I think where we have done a good.
Gentlemen, so to do that and I think we have show a bit to nexus into deep.
We have a lot of synergy between our supply chain in China or is that 26 direct store in our filings with dealers. So Wifi access to do can bring your iris synergies to the yield so thats a bit what we have learned so if you want to add something.
Just as.
The people that spend a tremendous okay for sure to December.
Maybe it's not easy for MKS, but when there are enough to say that our main.
Projects, Okay that we know since.
Dozens that averages companies and sturdy year to look at.
So anyway, just executing projects like stably like Gary you're saying, if say steadily or got some hit so we learned that.
Something don't go too far from that Marcellus.
Thank you.
Thank you our next Friday.
Your next.
Question comes from the line of Nick a casino with old Laurie.
Flourish in the bank.
Why don't I guess.
Sure.
Good morning first question Yeah.
You guys spoke about a strong backlog intake specifically on the acceptability.
In Q3.
Great and then Q4 can you maybe provide some color if arts do I'm, assuming that that's going to be on the elevator side of the business and that being the case I believe in Q2 commercial elevators, what is driving the demand Q.
Q3, because residential elevators in you.
Speak to what you're seeing.
Those two markets when it comes to later demand in Q4.
So thats your R&D expert in the end you know does that seem to suggest that you should be hours the constant improvement and the residential generators. So I leave that to you.
Thank you good morning, Nick So I think a year. So July was our best month of booking a refractory intermodal. So that was of course, a big driver for this and it was mostly a residential we have been very busy in our residential units and some of it keeps view lift and we saw that people do a lot of project right now renovation moving jokes.
Turning to page and buying a new house and you won't be able to keep their payments on the movement of seeing a phone. So they can do to create new residential is doing better than the commercial we can measure and use as a new commercial a small restaurant a small store that need to be accessible via video pushing delaying a bit the project. So they continue to residential or.
Does that better externally thousand barrels from the third quarter.
It's worth something last year, whereas within declined but there we had some growth in the third quarter. So that was a positive.
And for sure we have finished third quarter at.
As we push our own weight, but I think we have a good backlog to start the for the fourth quarter.
But don't remember we do a lot.
A lot of shipping towards the end of the quarter. So always shape executive four quarter I think we have to wait to begin to see the exact to resolve but accessibility for now is positive.
Okay, and then just maybe give us an overview.
Sort of organic growth opportunities you guys envision.
Correct.
2021, and that case soon elevator, specifically racial vessels on the residential side, sorry will be part of that.
Just what you guys are participating on the seasonal lift side and then I know you guys gave a 20.3 number on the view lift maybe what you anticipate at least for 2021.
Mike.
Okay, Hey, I go for cynical am ready so.
One when you look at that the day when it went to the growth will be for sure is fat okay.
We have with the people with the extension that we have and then Glen gate and and.
Make a fantastic job done that.
Well.
You know something when sexy the K two two to be between the out together, okay between five and 10%.
I again, okay, I have to be conservative innovators, okay wouldn't be as a whole company it will be a.
Between five and 10% internal growth.
Sorry, the five to 10 was the entire company or.
The entire company.
Okay, Okay, well sure.
The car business occurring its staff to it because we state that okay for some bank because their issue out next year.
Another fact, depending on who you are I wouldnt share maybe what do you mean that the good. Thank you bye.
Okay, and the government decade.
Seems to have a lot of money to ER.
To get to that people need this kind of flattish maybe point change, but we'll see.
But if you take the unfair.
Okay, Great company, Okay. It would be very disappointed not to see a growth located between private debt.
Ill start and that's that's all organic growth.
Yes, okay.
Okay. Okay. That's it for me thank you.
Your next question comes from the line of Zachary ever show.
With National Bank Finance.
Modules.
Good morning, congrats on the quarter.
Quick one for you on patient handling had the potential post pandemic has been made fairly clear appreciate that color Apple's looking at each product line within the segment.
During the pandemic what are the growth prospects that we should expect and how long can they perform.
Well the best the best product I guess or the the product Thats outperformed the most I guess in the current environment has actually been our lift products. So our patient live products have done.
Ultimately well.
We've had a a double digit growth of again into the double digits here in Cuba in Q3, I think year to date, probably 40% up well within within lifts. So so I think that that's up to the one that stands out.
Other than that.
The the slings are also have held up relatively well the bed frames and mattresses as you can imagine it's a kind of more of a capex type type spend.
You know those have been a bit weaker.
And again you have to think that that's the bulk of our patient handling business or the frames in the mattresses. So when you think of for that.
The sales that we achieved in the quarter you can imagine that you know the biggest part of the driver there. The lack of sales has really come from some weakness in those two product categories.
Appreciate that thank you very much and then looking at your M&A pipeline do you have a clear preference for.
Next or for dealers.
Good question mode.
Bode well.
Let's see if we can find new projects are better brought except one right now so a company like products okay.
We'll look at them and.
We are fortunate to.
To add to pretend that okay.
Work on that Roger Jeffs, Brian.
And after that if we can find a company.
That maybe don't have the products that you would need but absent the network that we want.
Has some eaters are some direct sales themselves that can sell our products and Sally.
We're really lucky we made great. So you will see some trade I'm, sorry, I'm getting 2021 focused on products is more difficult, okay, because I'm product rather than a major government granted but if we see that we have in the market better brought it up that we have it like we have some weakness and I were great.
Yeah, certainly encouraged that left you see the numbers, okay, it's not that number but it should be because we'll have better than the us when the market and that we we have to realize that but after that network that is out of ways and Boston.
Because we can sell our our projects and nobody as a lineup.
Next slide seven area, we can take some of our competitors the concentrate on one products US. Okay. We have the family of products and I think thats very good if you have a dealer and you have the right in front of US 70 of the layers of products coming from the same company.
That's you got to run by five or six different company.
So were fortunate to have hogged used to this product were fortunate to do at your next door and well look were very fortunate that we have.
Being the best people in the industry.
Thank you very much.
Now ill turn it over.
And again, if you would like to ask a question. Please press Star then the number one on your telephone keypad. Your next question comes from the line of Justin key wed with Stifel GMP.
Hello.
On how processes are going around any virtual initiatives.
Obviously with the lockdown restrictions restricting access and and some other constraints and.
If I understand correctly that there was some pursuits in the kind of use.
Virtual technologies, including M&A and just wondering if you have any update around that.
So I'm at the Sun was not good at the beginning of your question, but I think you answered that it didnt would that kind of be okay. If we continue to look at the answer is yes that give any city.
Obviously, because and we can visit sites. It just by a good you could you be quality, where we like to feel some people feel right in front of us directly but we have some the video what Dan Yes, we'll do that and we have some people that little bit around the world. Okay. So okay to confirm okay, what would they use.
Is that something you're okay. The success of the company so.
And I am very old brand, okay. Even at this time, okay I wouldn't be open to make some closing early next year.
Okay, and then just on the timing of potential M&A is there any change.
From from last quarter are you pretty confident in some of the opportunities that you're working on or do you think.
Timeline could.
A shift a a little longer just a.
Given the situation with the pandemic.
When and when you see add more longer I came on Grace.
Instead of to be at the beginning of the year to be at the end of the year, but it would have been 2021.
Okay and then my final question is just around the U.S. election outcome and if if there's any anticipated changes in your business either positive or.
Or negative I know there were there was some fun.
Funding in the long term care space and maybe there's no clear outlook now in that area, but any comments or observations around that would be helpful.
Oh, you know what I don't know what my team. Okay. If the if I like that but I am not the bugs.
Got it okay.
It was good at H. on this trend and hiking Biden is by then okay. We'll we'll see back there one thing that no change okay is not the price of the Els and other drags on growth is the aging of the population.
Mr. Trump of this debate and you're going to publish it is there.
And do do we'll get some sort.
Hi, yes, even the government of Ontario could it be side of gave who we went some equipment, okay to get feedback and it goes up today that figure.
But there I will see okay, nothing nothing changed for me, maybe something somebody of the group was more like Golden me knowledge, so their batteries or something.
First time.
No I think for for span, what where you might see and again, it's it's a lot of speculation here, Justin so, but but I think that what you might see for span a in the in the shorter term biden might be a bit more.
You're looking at a kind of more stricter lockdowns does that something.
That you know just to kind of keep an eye on as things progress over the winter I think he's had a penchant for it to be a bit more cautious there in terms of re openings I would say that where it doesn't necessarily impact our business too much is that the long term care space has remained locked down throughout this entire appeared in general. So you know as we did see some other parts of the economy opening up over the summer.
You know what nursing homes have been you know given that the vulnerable population there they have been restricted throughout this time period, so that hasn't really changed and I don't think it will regardless of its abiding or Trump presidency.
So so I I would say that and it will see why it's it's a lot of speculation. So I don't think that we're in a position to lead.
To say, one way or the other you know what the impact might be.
Okay understood and thank you for taking my questions.
A pleasure.
There are no further questions at this time.
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Okay. So thank you for that and if people think it for everybody to my caveat I always like right and we are the answer is yes, and thank you for all the people okay.
Vincent Van Gogh, where okay and all across the board. Okay. Thank you very much to work hard for somebody else.
Thank you.
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This concludes today's conference call you may now disconnect.
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