Q3 2020 Natural Gas Services Group Inc Earnings Call
Good morning, ladies and gentlemen, and welcome to the natural gas services group second quarter 2020 earnings call.
Hi parts into listen only mode.
Operator assistance Isabel from during this call.
The Star Zero.
Your call leaders for today's call are Lisa.
<unk> meter deep Taylor.
Chairman President and CEO I'll now the call over to Mr. you may begin.
Thank you Erica and good morning listeners. Please allow me to read the following forward looking statement prior to commencing our earnings call except for the historical information contained herein. The statements in this morning's come from coal airport looking and are made pursuant to the safe Harbor provisions as outlined in the private litigation Reform Act.
From 1995.
Forward looking statements as you may know involve known and unknown risks and uncertainties, which may cause natural gas services group actual results in future periods to differ materially from forecasted results.
Those risks include among other things the loss of market share through competition or otherwise.
Introduction of competing technologies by other companies and new governmental safety health or environmental regulations, which could require natural gas services group to make significant capital expenditures.
The forward looking statements included in this conference call are made as of the date of this call and natural gas services undertakes no obligation to publicly update such forward looking statements to reflect subsequent events or circumstances.
Important factors that could cause actual results could differ materially from the expectations reflected in the fourth looking statements include but are not limited to actually described in our recent press release and also under the caption from doctors in the Companys Annual report on form 10-K filed with the Securities and Exchange Commission having.
Having all that stated I will now turn the call over to Mr., Stephen Taylor, who is president chairman and CEO of natural gas services group. These.
Thank you Alicia and Erika and good morning, everyone welcome to <unk>.
And just use third quarter 2020 earnings review thank.
Thank you for turn into our call.
I never 40 years, and energy energy industry, I've never experienced a more challenging environment in which to work pervasive weakness in energy demand and volatile commodity prices have created unprecedented financial and operational challenges for oil and natural gas operators.
As a result, the suppliers are sort of writers who walk alongside them.
For Ngs is fortunate to have been well positioned entering this period of extraordinary pain for the energy industry.
No company is entirely immune from the impact would be short from protracted challenges.
That said as we noted last quarter.
Our ability to direct rapidly to reduce our cost structure to respond to our customers' needs have resulted in less impact from many of our peers on both our financial and operational condition.
Well sales and service revenues declined in the quarter rental revenue for solid and grew on a year over year basis.
Were only modestly affected this quarter.
Total adjusted gross margins came in at 50 per cent adjusted EBITDA was 35% of revenue.
Although not unusual, especially not in downturns, we have seen a high degree of volatility in our compressor sales business.
This is primarily due to customer budget cuts and the current reluctance to restore them in any appreciable manner.
Pressure sales already at a relatively low level from last quarter.
Where should really impacted this quarter by customer redesigns, which delayed the completion of compressor sales jobs and capacity constraints due to committed higher margin rental contracts displacing sales projects.
As noted in our financial statements, we did not have any material compressor sales in the third quarter.
Well, we have not had any cancellation to work in our backlog carried forward, we're confident or compression sales business will strengthen as more come together so far.
More important in such a challenging operating environment ingest can to the strength of its balance sheet and liquidity position.
The company generated positive net cash flow from operating activities of $13.1 million, a free cash flow of $12.1 million during the quarter.
At the end of the September quarter, and just had a cash position of $27.6 million compared to $15.5 million at the end up per second quarter our.
Our cash position continuing to increase through October.
We continue to be villages vigilant in protecting our financial strength. During this period of remarkable industry stress in our cash position provides ingest with significant flexibility and opportunity in any market environment.
Yes continues to have one of the best balance sheets in the industry.
Well, we're beginning to see initial signs of a trough no selectivity commodity prices remain below a consistent level that will result in meaningful new oil field activity.
We expect that trend to remain choppy through the end of 2020 and into early next year as operators remain cautious in their approach to growth as they address capital constraints.
In spite of that caution or maybe because of it and as we said last quarter.
We continue to see new opportunities for which we believe our fabrication capabilities superior service in a strong financial position will allow us to capitalize and we believe those are likely to materialize from a new year.
As you're aware, we extended time period, the following third quarter reported to the impact of the COVID-19 pandemic on the Midland community and our from.
We remain vigilant in protecting the health of our team and as a result continued to work from only when possible.
We are operating our middle headquarters the severely reduced him personal staff and urge our team members to take steps to remain safe and healthy.
Field team continued to exercise appropriate addition seem to help practices well working with customers on locations.
Well these practices have added incremental cost and efficiencies to our effort. We remain dedicated to protect from the health and welfare of our team and our customers and these unprecedented times.
With that let's move into the details.
And just reported total revenue of $15.8 million for the third quarter 2020.
24 per cent decrease from the same quarter in 2019.
This decline was driven by a decrease in sales revenues and to a lesser extent lower service and maintenance revenue.
Conversely in G.S. experienced an increase in rental revenues were up 3% when compared to the same quarter of 2019.
Sequentially total revenue decreased by 9% driven primarily by a decrease from sales revenues from almost three quarters.
As well as a decrease from rental revenue of 2%.
Our service and maintenance revenue exhibited strength this quarter increased by over one third due to a good increase in service and maintenance work we won this quarter.
Our customers capital budgets continue to be constrained to the commodity price uncertainty surrounding the macro economic backdrop there.
Therefore, we expect total sales revenue is to remain soft into the new year.
Given the continued challenges in our industry and in the overall economy, we're pleased with our operational performance in the third quarter 2020.
Our rental revenue proved to be resilient in the quarter declined only modestly despite the uncertainty in our industry.
In fact rental revenue for the first nine months of 2020 is up 11% when compared to the same period of 2019.
Given the unprecedented challenges and turmoil in the oil field services sector. We're pleased with this performance, which provide support for our position as a leader in energy compression rentals.
Total adjusted gross margin, which does not include depreciation for the three months ended September 32020 decreased by 18% to $7.9 million from $9.66 million from the same period ended September 32019.
Adjusted gross margin as a percentage of revenue from the three months ended September 30, 2020 was 50% an increase from 46% year over year.
Sequentially adjusted gross margin for the second quarter of 2020 decreased 11%.
$7.9 million from $8.8 million from the second quarter 2020.
Adjusted gross margin as a percentage of revenue slightly decreased to 50% in this quarter compared to 51% in the prior quarter.
The predominant cause of the decline in gross margin dollars in both comparative periods is due to the unabsorbed cost from our fabrication facilities due.
Due to a lower volume of work going through those plants.
Selling general and administrative expenses in the third quarter 2020 were $2.5 million a decrease of 11% when compared to the same period in 2019, and 6% lower when compared to the second quarter of 2020.
Yes, you know as a percentage of revenue from third quarter 2020, 16% slightly above our general run rate of 13% to 14%.
Operating income from the third quarter 2020 was a loss of $941000 compared to an adjusted positive operating income of $880000 from the third quarter 2019.
The operating loss this quarter is mainly due to lower total sales revenue and margins and higher depreciation expense, which were partially offset by higher rental revenues when compared to the same quarter of 2019.
Sequentially, our operating income decreased from a loss of $148000 last quarter to a loss of $941000 in the current quarter.
The operating loss this quarter is mainly due to lower total sales revenue absorbing fabrication costs.
And just reported a net loss of $562000 from third quarter 2020, compared to adjusted net income of $967000 during the third quarter 2019 <unk>.
Sequentially net income reported in the second quarter of this year was $165000.
The decline in net income for the comparative period is primarily attributable to the decline in total sales and the associated burden of 'em soft costs.
Yes reported a loss per diluted share a force in for the third quarter 2020, compared to adjusted earnings per diluted share of seven cents from last years comparative quarter and once again in the second quarter of this year.
Adjusted EBITDA defined as earnings before interest taxes, depreciation and amortization and increases in inventory lounge.
For the three months ended September 32020 was $5.6 million or 35% of total revenue.
A decrease of 19% from $6.9 million or 33% of revenue from the same period in 2019.
Adjusted EBITDA decreased approximately $840000 or 14% sequentially from $6.5 million in the second quarter of this year.
Now to break down the revenue component anymore.
Sales revenues, which include compressors flares and product sales decreased $5.3 million to $536000 on a year over year basis.
The year over year decline is predominantly attributable to a like a compressor sales and to a lesser extent decreases in flare and parts sales.
The same reasons sequential sales revenue decreased to $536000 from $2 million.
Year over year total sales gross margins declined from $1.5 million total loss of $461000 per.
The sequential gross margin decrease in from a positive $148000 to the same for $61000 loss.
The comparative period losses were primarily due to lower sales revenues and margins with the lower margins caused by higher level of unabsorbed costs due to underutilized compression fabrication facilities.
These outdoor calls from largely due to the severe contraction in the industry, especially for custom fabricated capital equipment.
And our need to maintain minimum operating levels at our underutilized fabrication facilities. During these periods.
Our compressor sales backlog for the third quarter increased to $1.7 million.
Slightly higher than the second quarter backlog of 1.4 million essentially flat with our backlog in August 2020.
Now this backlog was worked off from the current quarter for a couple reasons that portion of the backlog was postponed due to a customer question requested redesign of their equipment.
And the balance was delayed due to limited fabrication throughput because of contracted higher margin rental builds.
As such in third quarter 2020, we did not record any compressor sales.
For comparison compressor only sales were $4.7 million from the third quarter 2019.
$1.4 million from the second quarter 2020.
This is certainly not simple we plan on but it is not unprecedented that has happened before during severe downturns.
The pressure on the gross margins were a little more than $1 million in the third quarter of 2019 compared to losses of $127000 in the second quarter and $607000 this quarter as.
As mentioned losses on sales were exclusively caused been absorbed fabrication costs.
Rental revenue in the third quarter, 2020 was $14.9 million compared to $14.4 million in the third quarter of last year.
$15.1 million last quarter.
Relative revenue decreased 2% sequentially.
But significantly were 3% higher this quarter than last year at this time.
The other day through September rental revenues are 11% higher for the nine months in 2020 in the same period in 2019.
This is a remarkable concerning the dramatic appeal in our business and industry over the past year is much better than many of our peers.
Compared to the second quarter 2020, our average rental rates decreased 2% to 3% on a unit and horsepower basis.
This is primarily due to the discount rates given to customers in the second quarter.
The industry felt the impact from lower crude oil prices and decreased activity.
Reported rental gross margins this quarter or 55% slide.
Slight decrease from the second quarter 2020 rental gross margin of 56%.
But an increase from last year's third quarter gross margin of 54%.
Our rental margins are exhibiting strong base and would have been higher this quarter, except for an increase in bad debt allowance of $180000.
As of September Thirtyth Thirtyth 2020, we had 20 339 compressor packages in our fleet.
From 2277 units.
At September 32019, the company's total fleet horsepower increased by just over 10% to approximately $449000 thousand horsepower.
Paul at September 32020, compared to approximately 407000 horsepower in the same period last year.
This includes the addition of 37 large horsepower units to the company's fleet over the past 12 months.
41% of our utilized fleet horsepower and 30% of our total fleet horsepower is now classified as large horsepower compression equipment.
But the utilization of 89% as of September Thirtyth 2020.
This has since increased to 93%.
Our total fleet horsepower utilization in the third quarter, 2020, or 64%, which is a very small increase above the second quarter 2020 utilization of 63.6%.
And compares to 66% in the third quarter of 2019.
Our unit base utilization of 55 per cent and third quarter 2020.
Remained flat compared to the second quarter of this year.
And 62% a third quarter 2019.
For the first time this year, we've seen net positive utilization increase quarter to quarter because.
There's very slight but the fact that there is any as positive in this environment.
The first three quarters of this year, we spent a total of $12 million on capital expenditures were $10.3 million at that dedicated to rental equipment.
The last quarter's call, we anticipate another $8 million to $10 million $8 million to $10 million and capital expenses for the balance of the year.
We spent $1 million on capital equipment. This quarter anticipate another seven to 9 million in the fourth quarter subject of course to customers falling through on their projections and timing.
[laughter] from.
Our balance sheet perspective, our total bank debt remains minimal just over $400000.
As of September 32020.
Our cash balance was strong at $27.6 million.
Our cash balances up almost 80%.
From $15.5 million at the end of last quarter and its continue to increase through October.
We have received 4 million of the $15 million tax refund, we had been anticipating and that is reflected in our cash balance.
There's still another $11 million of total tax refund is owed to us. Although we are not certain regarding the timing of it.
We generated positive net cash flow from operating activities in this quarter of $13.1 million.
Including the $4 million tax refund.
Represents 75% of our quarterly revenue.
Without benefit of the tax refund operating cash still ran 52% of revenue.
This one day and the extraordinary conversion of revenue into cash flow.
Free cash flow from this current quarter was $12.1 million.
On a nine month year day comparison, we generated $27.9 million of operating cash from 2020.
Compared to $21.3 million in 2019.
It's almost 30% more operating cash generated this year than last year and the comparative nine month period.
In summary, there are not many companies in the oilfield services space that have a recurring rental revenue stream essentially no debt on the balance sheet.
Cash reserves in the bank.
Continued ability to generate cash.
Before I take questions I want to express my thanks to the entire Ingeus team for their continued dedication to making ingest one of the best energy services companies in the industry.
2020 has not been easy for any of US yes, yes, the tireless work ethic of our team.
In the midst of a pandemic and the resulting uncertainty in our industry is something for which I am incredibly proud and thankful.
Well share holders measure our company by series of in personal finance from numbers you should those metrics is direct result of the effort and care of the people that comprising just family.
So thank you.
We don't expect a lot to change the final 45 days of 2020, except of course, our capital expense.
We expect and hope the year will finally end.
We do believe that well 2021 is likely to start cautiously.
There are early signs of recovery on the horizon.
More important ngs is well positioned with a solid balance sheet and strong customer base and a team committed to provide an uncompromised services.
With a stable to modestly improving operating environment, we believe there will be opportunities from meaningful improvement in business prospects.
As we progress in the new year.
Erika that's the end of my prepared remarks. So if you would please open the phone lines for any questions.
Ladies and gentlemen at this time, we will conduct a question and answer session. If you would like to stay question. Please press star one on your phone now and any place in to the queue received.
Once again, if youd like to ask a question. Please press star one on your phone now.
Our first question comes from Rob Brown from Lake Street Capital. Please state your question.
Hi, Steve.
Hi, Bob.
Nice execution in a pretty pretty tough environment as you see laid out so thing I'm. Just just my first question is really around the Capex in Q4, maybe characterize kind of what's driving that the type of projects that you're feeling I think kids my horsepower orders day, that's comprised of it maybe just clarify that the capex before.
Yeah, it's made of.
Primarily two components.
One is we've got a pretty good order for some.
Four to 600 horsepower equipment.
And.
What I mentioned our ER.
Hi horsepower utilization was 89% the end of Q3 business actually talking about 93% already can you give them the stuff that was idle temporarily the end of the quarter is now been utilized and committed and there were building some more so.
It's primarily of that and then we've also got thing.
I think a mission to the past.
The potential for some.
Leaseback purchases purchasing some new.
New equipment from customers and written a back to him so.
You know those two pieces on the or the biggest part of that.
And I think that the leaseback is pretty interesting from the point that yeah.
It's a it provides some capital to a customer its its equipment, we actually built for them in the past and yeah, we get to convert into a rental revenue at good rates and long term contracts. So it's interesting, especially in this environment, but.
Yeah, there's there's at least one customer looking to monetize equipment they own and you know just Lisa back, but those are the two biggest components the.
Yeah, the biggest risk to that Capex number is right timing is not that the projects will happen, but you know this is November yeah middle.
Mid November.
We got holidays coming up and everything else and that's always a cracks you get into it in the year as to whether you know projects get done or whatever it is so the the numbers pretty solid we think it's a if there's any way.
Moving to it'd be timing not not commitments, but that's but those two components of the biggest part of that.
Okay. Good and then a utilization and kind of the bottoming in industry, you said utilization sort of stable quarter to quarter here, but.
How much visibility do you have in sort of units coming back and going out and maybe a sense of how the utilization plays out over the next few months I know, it's hard to predict exactly but you sort of feel like it's bottomed here.
Yeah, I think it's bottomed, but I think theres still going to be some.
You know fits and spurts and this thing I mean, it's you know this.
Stephen never a straight line up its pretty jacket, and you'll have some down from them up and everything else I think that I think that.
The the bias is positive.
Yeah, and if there's still we still got some shut in equipment that we anticipate coming back on a little more you know a few.
You know, let's say analysts read reports everybody's from.
Early positive on Walt.
Oil price next year, but of course those are you know those reports ours are good the day, the written and anything can change them.
So yeah I think.
Biased for.
Positive utilization is good, but it's going to be some some up and down to it I think we're I think 2021 actually is.
Gonna be fairly a fairly good year I mean, this year has actually been lot better than I would have gas.
Back in March.
Yeah. When all this stuff happened because it was it was pretty is down pretty fast, but our guys have done a great job growth.
Take care are covering it and and continuing on and watching that costs are obviously, so I think we'll see Oh, we'll see of a trend up but it's it's hard to say what that smokers.
Okay and then last question is really on the competitive environment.
Through or are you seeing any changes there is that about what you expected and there and very similar to store.
Store cycle.
HM.
Yeah, it's it's what I expected and it is.
You know are in line with historical.
Trends in that we you know.
We tend to see some.
So.
A question about pricing in the market.
You know so both those where you typically see those in downturns.
Yeah, especially from.
People that aren't as fast as strong as we are we're able to.
Pick and choose the jobs, we want the price from your wall and stuff like that if we want to hold price and we can if we want to you know if.
If we want to get aggressive we can but weve got the choice to do that a lot of competitors don't have the choice due to do the debt or other other issues, but.
But we see.
You know some some weaker pricing out there.
Probably not as much as you would have gas you know six months ago as to what that might be due to the adjusted this to fashion downturn, but we still see slick stuff.
No yeah, Mitch stock price was down 2% to 3%.
You'll get a little drag than price names or put more bigger horsepower out there 'cause bigger horsepower cost less per.
<unk> cost less dollars per horsepower. So your rental is less dollars per horsepower you know net kind of looks like it's down but actually it's.
Yeah, it's good pricing on.
On the the decrease we saw on a unit basis was as I've mentioned, primarily though the pricing from Q to come into full force and being throughout the corridor. So we expect some you know to get some of that back over the next.
You know two or three quarters anyway as as operators started number one putting the current back to you know to work from a standby basis and also we yeah, we intend to as as things solidified going into the next into the new year.
Going back those customers you guys from discounts to run and asking for those back so.
Yeah, the two or 3% down is explainable and reasonable and unexpected, but I don't think that will continue but we.
We do see some weird pricing or watch football, but again overall.
Probably not as bad as you would have thought six months ago, but it's it's still little more and I would like.
Okay, great. Thank you I'll turn it over.
Thanks, Rob.
Our next question comes from Tate Sullivan. Please state your question.
Okay. Thanks. Thank you Steve Good morning, [laughter] can you talk what more can you talk a little more about the leaseback purchases. So I was just looking at your sales I mean $60 million of sales of compressors and other equipment understandably since the end of 16, Inc.
He is this an active market historically in the natural compressor natural gas compressor industry or is this new for I don't I have not heard you talk about this before and you're are you uniquely situated to take advantage of customers that want to monetize their equipment.
Yeah, you know I'd Miss that.
Probably a little over the last couple of quarters.
We probably are uniquely situated take advantage or just because we got money.
Right you know when when it comes from US and monetize you got to pay him from so we've got the flexibility to do that it's not a big markets.
Typically when someone approaches zone that stuff, it's stuff that we don't want you know.
There's a reason why they're trying to monetize it they don't want to be either and not because of financial issues, but yeah, maybe equipments older than.
You know they want or worse shape or something like that so most of these things just.
Don't take very long to look at and say you know we're not interested.
Or they don't fit our fleet makeup or they're smaller horsepower all kinds of reasons you know this from came to us.
You know just a customer we've dealt with for a long time and and you know do a lot a lot of work with them over.
You know over the years and things like that and with and.
It's not really a situation of a customer.
Having to have cash of gas from the point of being financially.
In bad shape or something like that it's more a and this is good.
<unk> customers now looking at you know what I've got a finite amount of dollars I can spend it on drilling or I just spend on equipment drilling makes me all the money that's for our turn comes from that's my expertise.
I go ahead and spend money on that.
In rent equipment, you know rental provide some advantages you know certainly not the Capex you.
You have to spend on it but also operationally we take care of all the stuff if you need to downsize upsize. It we can do it the customer it had to go out and buy a whole another unit and try to figure out what is going to these other and everything else. So I think when you start to see downturns like this the severe and faster they are plus the market demanding.
You know cash returns from operators.
It feeds right into rentals more and more and.
Yeah, we don't go out and actively market. This.
Capability, but as I mentioned I think we we can't take advantage of them as they come along and this is just.
I think.
I think we've got.
Three or $4 million.
Dedicated to it and as I mentioned I think it'll happen. The only question is timing Yossi operating gets around to.
You know.
You need a quick enough and stuff like that but.
Yeah, that's kind of the background of it and we're we're comfortable with it because its equipment we know.
Okay. Thank you and you answered my question earlier on some of the timing of that Capex in the quarter and the good order you mentioned to that for the 400 to 600 horsepower can you. If you can't share is roughly I think debt that size horsepower. The average rental term likes versus your larger horsepower have you haven't talked about that before Steve.
We're we're getting two to three years.
Well knows you know in the four to 600 horsepower.
So we're getting good good terms on them and and.
You know market leading rates on them too.
So you know just like any other capex we're not.
We're not spending any capex.
On.
You know deals we're not trying to use our money to go get market share anything else, we're trying to use our money to make money and.
So we don't we want longer terms, we want better rights or we don't spend the money we don't have to.
So we know this and that's what we look at from you know from those standpoints.
But that you know that's that's the other seven to 9 million.
This year, it's all it's all pointed to in dedicated to.
Longer terms and at high rates.
I get that the larger horsepower units, particularly the units the equipment that you built in the last year and a half.
Are they are they more than a year rental terms typically.
Well I understand I can change.
Yeah, Yeah, the the biggest ones say the 40 horsepower units.
Yeah. We typically go you know three to five years on those assets, we want a good long term on that stuff and it's not too.
Hard to get that sometimes it is you know depends on customer, obviously, but yeah equipment, so big and so expensive and and takes so much time to install and operating income is paying for a lot of this right you know the installation or the flow.
Right and all this other stuff.
You know I Dare say you could run it on a one month terms comes death or a long time, but you know obviously, we like the security you have contracted rentals. So the.
The bigger the equipment generally the bigger the equipment the longer we go on terms.
And.
Then that kind of that mid horsepower will be some mid terms the two to three year stuff and smaller stuff as you know it's yeah.
Yeah.
12 month terms nominally we've tried to extend terms.
Overall in all the equipment to get a little longer.
Uh huh.
You know rental period and security with it.
Thanks, and then last one from me I I mean, I know the whole industry and I mean, the balance between more people talking about renewables going forward is it have you ever talked about more utilities are mentioning trying to get renewable natural gas into pipeline and I think some of that process needs compressors, how has that market never been in and out.
It's unique for you or can it be going forward.
Yeah.
You got it.
I guess it hadnt been a big over market in the past just because they have just hadn't been on.
Oh on the S.G. part of it as much now obviously that's growing.
And you know natural gas you five virtue of being a.
Thing or fuel was gonna, there's gonna gain in some of that and it obviously contribute to a friend to you know better.
Environment cleaner clearer Harris et cetera, but I think there is talk to there are opportunities to capitalize on that yeah. We we feel like we've already got some.
Real plain equipment from the point of the engines.
Very tightly controlled from emission standpoint, kinda converters or to a ratio controllers and actually every one of our.
Engines in the fleet engines that drive the compressors.
Meet or exceed the worst of any states a regulation so typically.
Can I hesitate to say, we exceed all the stage, but I've from its its the vast majority.
That we exceed or we decide to do that you know a while back.
So.
So we've got real clean engines or you know the.
Good itself is is different you know goes fluids et cetera, and yeah. We got some some you know recycling components on the U.S. to conserve all to capture gas and things like that but I think there is more opportunity to.
To do more number one mechanically and physically to the equipment and some of our practices in the field and number two you know to.
Adequately market that the customer so they know that.
I think the customers are going to get more and more sensitive to.
Clean equipment versus you can also find equipment and I think we've got a an advantage and and you know taken yep.
Taking a little more share out of that piece of it but there's there's more to do and I think you'll see more and more gains in certainly out of us more and more emphasis on on that part of it.
Thank you Steve for all the comments great rest of the day.
Okay. Thanks day.
Once again, if youd like to ask a question. Please press star one on your selling now.
At this time, we have no further questions.
Okay. Thank you Erika and thanks, everyone for joining me on the call I. Appreciate your time. This morning hope your holidays are healthy and happy which wish each of you a more prosperous new year I look forward to speaking with you, but ngs and 2021. Thank you.
This concludes today's conference call. Thank you for attending.
[noise] Oh has ended this call goodbye.