Q3 2020 Limbach Holdings Inc Earnings Call
Hello, and welcome to Limbach Holdings Q3, 2020 earnings results conference call out.
At this time, all participants are in listen only mode.
A question and answer session will follow the formal presentation. If anyone should require operator assistance. Please press star zero on your telephone keypad. As a reminder, this conference is being recorded its my pleasure to turn the call over to Jeremy Hellman of the equity group. Please go ahead Sir.
Thank you very much and good morning, everyone.
Good morning, Limbach Holdings announced its 2023rd quarter results and filed its form 10-Q for the quarter ended September 32020 today. The company will be reviewing those results and providing an update on current market conditions. The company may also refer to a slide presentation accompanying this earnings call. The presentation can be found in the investors section.
Some of the company's website at Www Dot Limbach <unk> Dot com.
The company encourages everyone to review the forward looking statement disclosure on slide two of the presentation with that I'll turn the call over to Charlie bake into President Chief Executive Officer of Limbach Holdings Jayme Brooks, the company's Chief Financial Officer. Please go ahead.
Welcome everyone and thanks.
And if you are joining us we're excited to review our third quarter performance with you and to take your questions. During the quarter. We bought again generated solid financial and operating results. We're pleased with where we are what we still see multiple opportunities to deliver even better results as our focus on operational execution becomes for.
Further ingrained in our core processes, we remain on track for a successful year and we're excited to be able to increase our financial guidance for 2020, which I'll address at the end of our prepared remarks.
Those that want to take a moment and thank the more than 1700 employees at limbach for taking on the challenges of the past nine months.
With focus and passion.
During the year Theyve adopted.
Adapted rapidly could smartly to these challenges and continue to press on it's been quite a period.
We rose to the challenge and are staying focused on staying safe getting cash to protect our liquidity position and getting.
Through creative sales strategies.
It's impressive to watch and to be part of to all my fellow Limbach team members. Thank you.
As a result of your efforts were in good position as we get ready to enter 2021.
From a macro level, we continue to deal with the broader environment, which has no shortage of economic politik.
Medical and public health challenges to date, that's mostly been just noise, though we credit our success this year to the market diversity of the business and the strength and fortitude of our employees and workforce.
The three tactical areas of focus I mentioned above staying safe getting cash in getting work are leading to one of our best years.
Nonetheless, we continue to evaluate a spectrum of potential scenarios that could impact the business. So that we are prepared to the extent possible.
We need to remain flexible and responsive.
Although there has been an increase in coal the cases in many of the geographies. We operate in we have also realized additional market opportunities. These include.
Increased filtration improved air circulation and restart processes, we're building systems and equipment as facilities we opened.
Over the last several months, we've seen a meaningful increase in opportunities on the service side as building owners think through the new normal caused by the pandemic.
Overall, our sales.
The pipeline remains strong in most of our restored and markets and we're finding opportunities in new end markets as well.
As an example over the past year, we've seen a significant uptick in opportunities to design engineer and construct indoor forming and grow facilities weve.
We have secured contracts for a number of these facilities in several states.
Already.
With further demand coming on line in the near term and for more states, we expect to see even more opportunities going forward.
We're building a strong market niche with indoor forming which we believe will be a sustainable area of capital investment.
Overall, we are evaluating significant number of project opportunities in both.
The construction and service segments as a reminder, our project selection criteria and the construction segment has become much more stringent.
This may lead to less top line growth in construction as we continue to focus on operational excellence and continued improvement to gross margins ultimately driving growth in gross profit dollars.
We want to select the best opportunities leveraging one box talented staff and deliver even better margins and improved cash flow.
So notwithstanding the recent increases in the virus cases, we're not experiencing the same market response that we did in late March and April we do see customers hesitating from time.
The time and continuously evaluating capital investment decisions. However, there were no virus related project shutdowns like we experienced in Boston in April and May rebel to be in the field in ordinary course.
Throughout the year, we remain focused on executing three key initiatives.
Managing risk.
Under an enhanced project selection framework.
Maximizing cash flow liquidity largely through better working capital management.
And expanding exposure to the owner direct Morgan.
We're still meet early innings, particularly as it relates to deploying resources required to deeply penetrate the owner direct market, but we're seeing.
Great progress as these practices become institutionalized within the organization to.
To drive that owner direct orientation, while remaining focused on leveraging SDMA expense, we've redeployed resources from the construction segment where possible.
We've also made some strategic investments and recruited some terrific talent to support only direct sale.
And account management that helps us build a broader customer foundation and the distribution channels to which we can deliver a broad array of services over time, so with that let's move on to review in the third quarter performance.
As a reminder, we adopted both AMC topic six the six and 842 in the fourth quarter of 2000.
The 19 for the annual and quarterly periods beginning after January one 2019, using a modified retrospective transition approach since we filed our 2019 quarterly results before we were required to adopt the two new standards. We are obligated to recast our 2019 quarterly results to properly reflect these two new standards.
Sales each quarter during 2018.
Asset quality numbers, we discussed today for the third quarter of 2018, our as recap well.
While certain categorization in line item may change in each quarter. There is no impact on full year results our cash by the previously reported for fiscal 2019. Please.
Please follow along.
In the company's presentation, starting on slide four.
For the quarter total revenue increased by 10.6 million TEP and 6% year over year construction segment revenue increased 10.2% year over year and 23.2% sequentially third.
Service segment revenue increased 12.3% year over year.
And 14.1% sequentially well not entirely surprising based on the activity levels, we witness exiting the second quarter. It was still comforting to see strong revenue growth this quarter. This.
The strong activity levels and better execution, we posted some meaningful margin expansion in the quarter.
Gross margin increased 230.
It's it's points year over year with almost 200 basis points of improvement in the construction segment.
The 11.4% gross margin in construction this quarter does reflect the impact of additional write downs in southern California. However, as noted previously worked there is now substantially complete and wind progress of closing the books on that project and.
Realizing our cost reconciliations without that project weighing on results, we expect to see continuing improvement in gross margins all else being equal of course, we continue to drive pricing on new construction segment work wherever possible and we are more discipline and project selection those dynamics should be increasingly reflected in the construct.
Section gross margins going forward into 2021.
Service segment gross margins expanded 360 basis points year over year, and once again increased sequentially by about 20 basis points.
Thats, a third consecutive quarter of margin expansion in the service segment gross.
Gross margin service.
707.
Five basis points higher than in the fourth quarter of 2018 as reported in 2018 prior to AMC six six.
Which is a function of our focus on the opportunity and solid execution from our service organization.
On a consolidated basis all this translates into higher gross profit dollars, which is the primary objective.
Active gross profit expanded 31.6% year over year and 18.9% sequentially.
Again, we continue to believe that there is still opportunity to improve profitability, particularly in the construction segment with more disciplined pricing and better execution. We think our gross margin can expand another 105.
50 to 200 basis points over the intermediate term so.
So even on lower volume driven by greater projects activity, we would expect growth in gross profit dollars.
Gross margin dynamics in the service segment are largely a function of business mix the highest margin lines of business like preventative maintenance are also the small.
Most dollar value and grow more slowly in comparison to owner direct project work, although the owners are part of where carry lower margins as compared to preventative maintenance contracts. It's still good work and typically has less variability in outcomes than a construction project as.
As this line of business becomes a larger part of the mix we'd expect some.
Margin dilution based on the higher volume again, though we'd expect growth in cross gross profit dollars.
Total SGN eight cents increase by just under 500000 or about 3% over the same quarter last year. The increase was primarily driven by higher performance based incentive comp.
Given the stronger financial performance this.
Year.
That increase was partially offset by lower payroll expense and reductions in a variety of corporate and overhead cost categories, which reflects the continuing effort to densify cost reductions undertaken earlier in the calendar year.
We remain focused on controlling growth in M&A, but also making investments necessary to drive growth.
Any other direct model.
As a percentage of revenue SGN SGN expense was 10.4% in the quarter as opposed to 11.2% in the prior year period.
Moving to slide five which presents our year to date performance inside six which presents our trailing 12 month performance today.
Quarter.
On both slides I just want to call out the expansion in revenue gross margin gross profit dollars and in adjusted EBITDA. Additionally, Q3, 2020, LTM adjusted EBITDA of $25.9 million represents the highest level of profitability. The company has achieved in its current.
Certain operating configuration.
Turning now to slide seven.
Backlog of 469.3 million essentially flat sequentially and a decrease as compared to December 31.
As we've communicated before the reduction in the value of the construction segment backlog as a result of stricter project selection criteria.
We plan that we're comfortable with it and it's consistent with our near term tactical and strategic objectives and performance expectations. The decrease was not the result of lack of opportunities in the market or of the company's ability to successfully secured work we're managing the construction segment carefully and that's reflected.
These backlog numbers.
The construction backlog figure also includes approximately 95 million and work that we categorized as promised during the second quarter earnings call. We recently announced that those opportunities are the health care data center is indoor forming and market sector birds backlog.
In addition to the quarter end backlog.
That number at September Thirtyth. We currently have another 166.3 million to promise work and we expect the balance of the promise work to convert in the fourth quarter were in early 2021.
The bottom line is we are comfortable with the activity levels and profitability in the construction segment for the rest of this year and into next year.
Yeah.
Service segment backlog has remained stable during the year has grown modestly as compared to December 31 give.
Given the environment, particularly during the second quarter once in customers wouldn't let us into their buildings, we're comfortable with the trajectory.
We said previously that we felt there was an acceleration and service sales activity.
Awards, we exited the second quarter and we saw that materialized in Q3.
Service sales in Q3 were up 3% sequentially, but 36% year over year growth was particularly strong in service projects nearly all of which has performed on an older direct basis. These jobs could range from.
$50000 to several million dollars in value and can burn over a period from just a few days to several months, so as compared to longer lead and longer duration construction projects service work turns over at a higher velocity.
Finally on before right, we've provided a graphic of cash flow from operations, which again.
It has been a key focus for us this year through September Thirtyth, we generated $35.2 million of cash flow from operations $12.8 million of which was generated in the third quarter, that's nearly a $53 million improvement year over year. It.
It's simply a tremendous result, and a trend that we've got to maintain.
As a reminder, this successful mostly results were more active and persistent working capital management billing.
Billings invoicing and collections and these figures do not include any proceeds from claims collections.
With respect to unresolved claims or construction projects, we continue to work diligently with Baird.
Various counterparties to make progress towards acceptable resolutions the vast majority of the work on these projects with unresolved claims is complete and we're now completing punchlist type items, we continue as a management team to focus a great deal tournament energy on these corny matters, while it may not appear to the outside world.
But things have progressed quarter to quarter. We believe we are moving in the right direction.
At this time, we really cant offer any more insightful predictions about when we might bring these claims to resolution, but know that we as the management team are appropriately engaged and comfortable with our recovery strategies.
As you can see.
On slide eight liquidity remained strong we ended the quarter with 39.6 million of cash on hand, and we had 10.6 million of Undrawn availability under the revolver. We have we are undrawn on the revolver throughout the quarter and expect to remain for the balance of the year, assuming the continuation of our current market conditions.
All the progress and improving liquidity and working capital has been terrific and it remains an area of constant focus we are continuing to review our processes into bed them into the company culture.
So we're obviously pleased with the quarter, but we also see opportunities to continue to improve performance in many areas.
The impact of.
Most of the actions we've taken this year is only just now starting to be reflected in the personnel.
We expect to see more improvements in margins, particularly in construction and we expect to see our exposure to the older direct market continue to increase over time.
Before we move on to accumulate let me hit two final issues.
First.
First refinancing the senior debt is still our highest priority balance sheet objective with.
With the quarter, we just delivered we've got a solid 12 months of earnings which goes a long way to improve our credit profile.
We want to optimize the cost of debt capital, while picking the right financing partner and getting to the right structure.
As with the claim.
James we can't make predictions as to timing, but we want to be clear with everyone that we're appropriately engaged.
Second we're pleased to be offering revised guidance for the calendar year 2020.
The original revenue range of 560 to 600 million remains unchanged. However, we are increasing our adjust.
Adjusted EBITDA guidance range of $22 million to $24 million to a range of $23 million to $26 million.
For the year to date period through September Thirtyth, Weve outperformed expectations and we're sitting at an adjusted EBITDA of $20.6 million the.
The fourth quarter is usually a strong quarter for us with given.
Everything that's happening this year, we've built some contingencies into the fourth quarter as a result, we're forecasting fourth quarter profitability to come in at the low end of where it's been over the last several years as before the guidance. We offer does not assume any resolution of the more significant claims discussed earlier.
It's clearly.
We still an uncertain time, we can't point to any specific problems. We've got already specific concerns we have what we also can't ignore the potential for something to come out of left field that we have to react to the best approaches to maintain ample liquidity to focus on improving our core processes and to meet.
The team the momentum we're carrying into the back of the year.
With that were available to take questions.
Thanks.
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One moment, please while we call for questions.
Our first question today is coming from Gerry Sweeney from Roth Capital. Your line is our lives.
Good morning, Jamie Charlie Thanks for taking my call.
Greetings good merger.
Can we start with the owner direct I <unk> first of all you know great quarter a couple.
A couple I had a couple of questions on owner direct.
My understand it and this is going back a little bit.
Is that all for the service segments or does that include some construction opportunities because I know in the past you had relationships on the construction side and I think that helped you get some programs. So I'm just curious when you discuss unattractive.
Paul all about service or is there.
The construction side as well.
Jerry It includes.
Some larger projects with owners, but it's all older direct so we're eliminating though we work with some great general contractors, but we're eliminating some of the bottleneck where we can provide.
No better value to owners with certain types of projects. So we're marketing those owners direct and it's really paying off in spades. We continue to see just great progress on that front. So our focus is to increase sales resources and continue to expand that portion of our business as rapidly as we can.
Okay.
And then.
Can you describe.
The go to market strategy on on what you discussed in terms of donor director.
Are you.
Replacing another provider are you as you said.
Bottleneck.
Moving.
C.
How much operates.
Opportunity or how much that the market.
Yes, that's a little bit newer opportunity, creating some white space per se.
Run rate I, just wanted to get a better understanding.
You know, what's what's interesting about the opportunities we have the both local and national funds.
On the Nash.
The level when we talk about clients like Hospital Corporation of America, one of our stronger customers over direct.
We see just tremendous opportunity to really expand that relationship. So we're hitting up major healthcare customers that are nationwide.
To penetrate more of their facility.
Investments and they may be a small 50000 dollar project or might be a several million dollar project that they need and they are going to be heavy and E. P mechanical electrical plumbing.
We're not replacing general contractors, we're not we're not going to compete build our own hospital, but where they have to renovate their facilities or retrofit them.
That's what we're marketing so when I I mentioned national where we've just actually.
Increased resources on that and the focus in terms of sales resources, but also locally we're shifting resources, where we're going to continue to work for Ti General contractors, where you're just a very short outcomes.
But we're looking to not will not go broadly with general contractors instead shift those investment SDMA dollars into more local owner direct so may not be national customers, but it could be a local health care stay focused on the health care market could be a local health care provider that we're going to have more.
To locally to do the same types of projects and by the way that that's across all of our sectors that we.
We serve not just healthcare Jerry does that help answer that yes. It does it does.
That's helpful and then.
Q and a lot of discussion about.
Mark the building.
Air flow, especially around it.
Any emerging work on this front I guess, especially on the.
On the on the service side.
Oh absolutely.
So from a filtration perspective, thats been a big big focus.
Hello.
They were starting to see there I mean, there's so much opportunity.
The lead time for things like the ultraviolet products, it's like three months now so.
Everybody scoping out the production and even down to move 13 filters, it's becoming more of a challenge to find them, but the greatness.
As as there's a lot of customers out there asking for that so.
The other thing we're starting to see Jerry This is relatively new we're starting to go into the winter months and.
Owners building owners are starting to figure out how to get these buildings open back up and they are increasing the airflow into the buildings right outside.
Outside air, which means they have to keep more of that air which becomes a problem with humidification.
So now we're starting to see opportunities to.
Increased humidification buildings because of this outside air increase it's kind of an interesting phenomenon, but we keep identify.
More.
And more opportunities off the back of the pandemic and.
We're an HPC company, we're perfectly positioned for that.
I guess some of this healthy building trends.
Become a little bit more of a recurring opportunity I mean, just looking to use the filters.
You mean application.
This should have its not one and done this a little bit more and longer tail recurring in nature. I think it's definitely I think everybody is going to be looking at their buildings differently as they go forward in case anything like this ever happens again, so from a healthcare sector, you're seeing hospitals looking to increase I see youve beds, which is great for us whether it's.
With that sort of newbuilds.
This just R&D facilities with pharmaceutical.
And then you'd obviously go to the building with existing building stock has to be retrofitted to create healthier environment. So people feel comfortable moving into them. We think we're well positioned for a number of sectors to do quite well and.
I've said this to a number of people.
I don't feel comfortable saying.
Coal that has been good for the company from a standpoint of market opportunity, but it certainly has right I hate to talk about it that way, but it certainly has been good for our company and our our revenues and our outcomes or clearly indicating that.
One final question for me I know gross margins in the service I can jump around a little bit depending if you're doing some project.
But.
On a I guess a.
Ron or on a standalone basis or.
Margins in that business.
Would margins improve.
As you add additional customers because you're leveraging tax assets in a city or region is that a fair way of looking at it all things being equal in terms of.
You know if project booked they you know at the same level.
Right at the service side are exposed to the us DNA, it's a bit more expensive to pursue service.
Well the direct work versus.
General construction work, but obviously the margins are much greater than what we're doing right. Now is we're pushing very hard on increasing our gross profit margins and I think the quarter were clearly reflects steady progress with that.
We see the opportunity to leverage that SDMA, even more but we're going to continue to.
Invest.
Every chance we get we do see this as our future if were to continue to expand order direct as rapidly as we can so I think we will leverage the overhead, but then again, we're going to keep reinvesting.
No Thats fair I mean, I mean, it's a great segment invest away.
Thats helpful on on an underlying basis got it.
That's good I appreciate it that.
Really though very very excited about our progress with the old Yes. We think it is just the tip of the iceberg is so much more opportunity for us.
Your next question today is coming from Richard Greulich from our IGI capital Advisors. Your line is that a lot.
Thank you for taking my question.
I'm new to the company this year.
But im increasingly comfortable with the strategic thrust that you're taking and in that regard I wanted to thank you again for hosting the.
Having a month or two ago I found that for a new person to the company I found that very helpful and instructive in terms of really understanding what you're trying to do.
But my question was for Jamie I, just wanted to clarify what I thought I heard you say that.
It is a quick you said over the intermediate term you fee.
Well there could be another 150 to 200 basis points improvement in gross margin overall.
Our dinner segment in our construction segment.
The construction segment, probably you know six months 18 months.
Six to 18 months, Greg Thank you very much.
Thank you for the feedback on that or their coal.
I appreciate the that's hopefully three or.
Thank you as a reminder, that star one to be placed in the question Q1 moment. Please what we poll for further questions.
[noise].
Our next question today is coming from John old from long.
Investors your line is that right.
Hi, Charlie Jamie Thanks, again for joining us today and congrats on the results.
Uh huh.
Yeah. So.
Fantastic.
So just to clarify on the on the.
Construction margin increase is that.
Is that.
Based off.
The existing numbers that include write downs or is that on sort of an adjusted basis.
Assuming no write downs.
Well, we're looking at it we're really focusing on as we are bringing on new construction projects that are kind of.
Risk management process, and how we're really focusing on high quality projects and a sense of how we can you know bring on the labor and you know just the theme building. The best margin, we can out of the service or those construction projects. So it's more of a a long term focus yeah.
You know from a risk management perspective.
You know what what we've learned over the past couple of years as we just have to be more diligent in.
And you know what we did here at the company, we put a number of processes in place, but one that's really paid off I think extremely well as I've mentioned on previous calls.
Each Friday morning, we have a risk review committee standing coal and projects have to be present.
Jumping through us and it's been a really interesting experience. We have increased margins by just you'll directing people to build price at a 200 basis points with reasonable basis points, we get a little push back from the managers, what we're not going to win. It then we find out we win.
And your people are buying.
Buying limbach reduces the value we create but people are your price sensitive.
And our guys want their backlog, but we have become very stringent on looking at risk profiles and making sure we're getting the proper margin weve.
Killed a number of opportunities, where we said we're not pursuing this well we've said fuel prices.
This way and if you get it okay, but if you don't get if that's okay too so.
So and we're also fortunate that our backlog is.
Is very strong.
We are not out chasing work well.
In this economy, we're fortunate that we just continue to prove our value.
Through our customer base.
Venere work that we do.
The value we create up front most of our work is negotiated and that continues today, even in some challenging times that we're all facing limbach continues to thrive in our sales results are clearly indicating that.
Right, let me just.
An example, if.
Gross margin was currently 12 as reported.
And would have been let's say 13 13 a half.
Without any net write downs.
You you is the 150 improvement.
On on that.
12, or 13, and a half using that as an example.
Well our focus is clearly too.
Not only take on really short work with the right customers and avoid that issue of maybe getting into predicament, where we have a claim award disputed change orders.
But I feel as they see us.
Moving forward the backlog that we have today has been going through this process for the past 18 months. So we have a much much healthier backlog.
Which should in theory eliminate the issue of having.
The write down situation. So we will have write downs in a perfect world out there we're not building a Swiss watch every time, but we expect.
But to see more write ups and write downs thats that the net result of where we're going.
Okay.
Right, but I mean, that's.
Right, that's not the source of the.
The 150 to 200 basis points of margin a combination it's going to be an effort.
The remedy write downs and then also the risk.
Hi management process.
Right Okay.
Can you just follow up a little bit more on the refinancing and where that stands when you expect that to be.
Finalized your best the best estimate at this point, yes.
Yes, I mean at this point, it's really good to be able to go to market with four quarters of good.
Though.
Our LTM is up above $25 million. So we are really engaged and focused and that is a priority. So.
The team is definitely focused on getting that knows the value of getting that accomplished.
Okay would you expect maybe by the end of the year.
I can't comment on timing because it's.
You know, it's a work in progress.
Okay.
And then Charlie you mentioned the slope, possibly slower growth from the construction segment.
That implies some growth I mean in terms of visibility into next year.
Would you would you think your or your business.
Chris would you know still continue to grow grow modestly based on what you can see today.
No John the way, we're looking at it right now right. We have all of our business units actually the business planning process is currently underway as we speak to wrap up that planning process, which will.
Really complete.
In December so.
So we see certain business units with definite expansion opportunities for construction and we see other business units that we purposely are saying we want to put it back.
And.
And I'll just put it out there in the Los Angeles, So Cal segment.
We are going down that path of what we did in mid Atlantic.
And it's working it's being effective.
But we wanted to slow that business up right size, it and so that could have an impact on kind of an overall growth number but I will tell you other business units.
We're seeing actually some pretty nice opportunities in front of us and we expect to see some growth in those positions.
Right Okay.
And then finally, just an observation I mean, I guess I'm, just I think you've done guidance.
Emily turn things around done an incredible job man I think it's not that hard to see you know if.
If you add back the write downs warrant expense and you know just interest expense for a normalized interest rate.
You know your adjusted earnings this quarter would have been probably even 40 cents 45 cents higher.
Not not that you can multiply that by four but it's an observation that it looks to me like I mean, it just your your.
[music].
The earnings are really coming through and.
Right.
Stock is insanely cheap and I just hope in this refinancing process.
And just I.
I hope you will be able to incorporate the ability to do share buybacks.
Because I mean.
Well me I'd be buying back a sure I could at this point, but that's just an observation.
Thank you Joe.
Oh, we're going to continue to work that reflect a very aggressive way. This so that's in play we're doing what we can.
Just kind of talk about the timing.
Of course.
Thank you John.
Thank you. Our next question today is coming from Jeremy Blum, a private investor.
Your line is now live.
Yes. Thank you just a question on the fourth quarter, you kind of gave some guidance. There just wanted to get a little bit more color other puts and takes as to what you're saying about the fourth quarter.
The fourth quarter traditionally has been a solid quarter for us and we're.
We are expecting to do well.
But we're also just a bit concerned we want to stay conservative way.
With everything that's going on around us we.
We do see some you'll covert upticks, we'll all see that correct. It's not just me and.
Right now we're not seeing any thing happened in terms of any sort of shut.
The downturn was some city directive to we have to shut down some of our work which happened earlier this year, but we do want to take a conservative view right now as we project our numbers for the rest of this year. It's just a tremendous amount of unknowns, but as of right now with a strong backlog and we're well positioned for a good quarter.
Thank you.
Thank you as a reminder, that far one to be placed into question Q1 moment. Please while we poll for further questions.
We retained.
Our question answer session I turn the floor back over for any further or closing comments.
[noise] Oh listen everybody. Thank you for joining us today.
We're very proud of the lumbar team our board of directors of what we've accomplished.
We stepped up to the issues of the past and death.
The pandemic head on.
As we noted throughout the presentation. We're in a good position to finish strong and continue the momentum into 21.
We remain very focused on our refinancing and claims resolutions.
Lastly, we expect to continue to be very active when it comes to Investor Relations.
We're happy to facilitate one on one calls.
Please reach out to us if you'd like to do that.
Plan on participating in this is already virtual conference next week and at the LD Micro main event in early December hopefully, we can connect with.
Some of you at those events.
Thanks, again, and we greatly appreciate.
Your interest in Lubbock, all the best.
Thank you that does conclude today's teleconference. You may disconnect. Your line at this time and have a wonderful day, we thank you for your participation today.