Q1 2021 Transcontinental Inc Earnings Call
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Welcome to the TC transcontinental first quarter of fiscal 2021 results conference call.
During the presentation, all participants will be in a listen only mode. Afterwards, we will conduct a question and answer session and instructions will be provided at that time is.
As a reminder of this conference is being recorded today February of 'twenty five 2021.
I would like to turn the conference over to you on the point director of Investor Relations Samsonite NAV.
The day that the Harlan Yeah, no points of director of for that she wanted to exit stuff sort of point. Please.
Please go ahead.
Thank you Gabriel and good afternoon, everyone I.
I Hope you and your family are healthy and staying safe.
Welcome to the TC talk perhaps not as the first quarter 2021 results conference call.
Before we begin I'd like to highlight that we have provided a slide presentation to help guide our discussion today the.
The presentation, along with the press release and the MD&A with complete financial statements and related notes were issued earlier today are all available on our website at Tc that PC on the Investor Relations section.
A replay of this conference call will also be available on our website after the call.
We have with US today are president and Chief Executive Officer class.
And our Chief Financial Officer, Don on the Kennedy.
Before I turn the call over to management I would like to specify that the conference call is intended for the financial community media are in listen only mode and should contact net St. John Senior adviser of corporate communications for more information oriented view of a request.
Please be reminded that some of the financial measures discussed over the course of this conference call are non ifr if.
You can refer to the MD&A for a complete definition and reconciliation of such measures plenty of forests.
In addition, this conference call also contains forward looking statements.
These statements are based on the current expectations of management and information available as of today and the involve numerous risks and uncertainties known and unknown the risks uncertainties and other factors that could influence actual results are described in the fiscal 2020 annual MD&A and in the.
The latest annual information form.
With that I would now like to turn the call over to our president and CEO class.
Yeah.
Thank you Jan and good afternoon, everyone.
We've got a strong start of our 2021 fiscal year as we delivered a very good first quarter.
<unk> performance across all of our businesses I'm very proud of the resilience and agility that our team demonstrated again this quarter as we navigate.
The second wave of the pandemic.
On slide four you can see a recap of our performance for the quarter.
In packaging, we generated solid organic growth both on revenues and EBITDA the spike the impact of higher resin price on profitability of the.
The same time, we continued to progress on our commitment towards delivering more sustainable packaging will come back to this key topic in a minute.
In print, we continue to control our costs and protect the profitability.
Like the continued pandemic restrictions impacting some of our salons.
Our ability to reduce fixed costs provides good operating leverage on volume will start picking up again.
In parallel we continue to look at new business on verticals with growth potential.
Now represent more than a 25% about print portfolio.
On a consolidated level, we continued to generate strong free cash flow that we use to develop a bridge of a balance sheet the solid financial position.
The us with the flexibility to win best on our growth either organically or to work most issues on.
On a media sector also out of an excellent start of a.
A year with strong revenue and EBITDA growth.
Moving now to slide number of fly.
Our integrated approach to sustainability is a key competitive advantage that helps to differentiate us from our competitors.
We are in a good position today and we will continue to invest the I'm sure will you remain ahead of net job in terms of innovation and product with lots of it.
In terms of recent achievements, our BPI circuit, Florida, 100% industrial composed of both mid and back on Maxwell House, Canada Coffee pods recently won best in class sustainable packaging innovation the <unk>.
2021 pack of Global leadership Awards. This is another example of it.
Our leadership in a while and creating sustainable composed of both films.
Of the corporate level.
The recently recognized as a global leader in two prestigious rankings.
First we ranked third among corporate snide global 100, most sustainable corporations.
Over the last decade, GAAP rent and corporate Knights stop Canadian companies.
This is the first time will be a career on the worldwide global warming.
And the addition for a second year on the road, we are highlighting the sustained a lot of analytics global 50 top rated companies.
No.
Okay thing or a commitment towards sustainability in a low ESG risk.
But I'll come back to the performance of each sector of the first quarter.
We were very pleased with our packaging results, especially in terms of our organic revenue growth, which was at around 5%, excluding the resin price increase.
In addition to sustained demand from existing customers, we saw growth derived from investments and brought on R&D and from the ramp up of new business won over the last two years.
A balanced portfolio of products has enabled us to perform well during the pandemic and we expect to continue growing.
The economy recovers.
In terms of profitability.
I mentioned last quarter.
On the price increases.
A significant impact on the quarter.
160 basis point negative the.
Now I will go into more details on the resin price impact on his remarks.
In addition, we achieved these very solid results. Despite the sale of a paper packaging business in January of last year.
So it came into consideration the two major impacts which totaled close to $10 million on.
Stability.
Still recorded higher EBITDA on a year over year basis, thanks to operational efficiencies and a favorable mix and the 5% organic growth.
This is a significant achievement organically EBITDA grew more than 12 per cent for a second quarter on a rule. Despite the temporary negative impact of resin price increases.
Our print sector also had a solid quarter.
Continuing to demonstrate the resilience. Despite the second wave of the pandemic volumes were between 80 and 85% of pre pandemic levels in line with what we said three months ago.
We also further optimize our platform by reducing overall costs position us well for an eventual recovery.
Our disciplined a lot of print sector to continue generating good margins and free cash flow.
We continue to expect a solid second half of the year.
And the anticipated gradual lifting of government restrictions on the retail.
Finally, our media sector also out of an excellent quarter building from the momentum gained in 2020.
In conclusion I want to leave you with a few messages.
First on the context of the second wave of the pandemic all of our true sectors performed well.
Second a packaging sector, we gain new business and introduce new products and that will continue to fuel organic growth for the balance of this fiscal year.
Third a print sector is well position for a reopening of the economy and should benefit from easier comps on the second half of the fiscal year.
Our media sector is again, adding from a another.
Another very strong year.
Finally, regardless of the context, we expect to continue to generate strong and predictable cash flows providing us the flexibility to invest to grow organically and through acquisitions in all three sectors with that I'll turn it over to dawn.
Thank you Francois and good afternoon I.
I will start by looking at consolidated numbers on slide six.
A key highlight for the quarter was the $21 $1 million of organic revenue growth in packaging, representing a significant increase versus last year.
While the resin prices contributed this growth was mostly due to all of your volumes.
In fact, excluding the impact of resin price and the disposal of paper packaging business.
<unk> growth was at around 5% in the quarter.
As expected on the flip side.
Holiday net revenue in the quarter continued to be impacted by COVID-19 in a printing operations and by the sale of the paper packaging business in January 2020.
Consolidated adjusted EBITDA for the quarter was down 3% versus last year.
On a relative basis. This is a solid performance in a context, where a printing revenues were down 16% over the same per yet due to the pandemic.
Moreover, our packaging and maybe other sectors. Both grew adjusted EBITDA by more than 10 per cent for the quarter.
I'll provide more details on profitability improvement in the sector a review.
And the rest of expenses decline as we have reimbursed about $450 million of debt in the last four quarters.
We also benefited from lower interest rates.
Tax rate was up 24% slightly lower than last year in line with our guidance.
This led to adjusted net earnings of 50 cents per share for the quarter compared to 49 cents last year.
Now moving to slide seven.
Our packaging sector posted another excellent quarter.
While revenues were lower than last year due to the sale of the paper packaging operations and to a lesser extent a stronger Canadian dollar we generated very strong organic growth a growth across most of our segments.
Most of the growth came from higher volume with a small lift from higher resin prices.
As far as what I mentioned this organic growth includes a strong continued demand from existing business, but also from new products and new business wins.
Excluding the reserve price increase organic growth was around 5%.
Moving to profitability.
Adjusted EBITDA grew organically by 12, 8% in the quarter.
This is an exceptional performance considering the temporary lag effect of price.
It's a true resin price increases to our customers.
Adjusted EBITDA margin was at 14, 8% for the quarter are above 16%, excluding the lag impact of the resin pass through.
Profitability improvement was mainly driven by efficiency gains and improved mix.
The growing adjusted EBITDA by $2 4 million was a strong performance, especially considering the sale of the paper packaging operation and the net negative impact of resin price.
On slide eight you can see that our printing sector also had a very solid quarter given the pandemic contacts the revenues were down 17, 8% organically in line with what we said in December.
Despite the additional restrictions during the second wave of the pandemic volume stabilized between 80% to 80% 85% of the pre pandemic levels.
We were also successful interior at reducing our fixed cost and aligning our cost structures with with volumes.
And while we remain prudent regarding the timing of the recovery. We believe we are well positioned for a gradual pickup in printing volume.
Looking at profitability the C.
I think in reduction in our cost structure and the amounts received from the Canadian emergency wage subsidy program helped to offset the printing revenue declined from the pandemic.
Accordingly the.
Printing sector of recorded an adjusted EBITDA of $61 $1 million compared to $65 nine last year.
Excluding the subsidy we delivered a net adjusted EBITDA margin of 19, 1% in line with our objective.
On the India business also had an excellent start of the year with strong revenue and EBITDA growth.
Corporate expenses were lower than last year.
However, stock based compensation increased by $3 $5 million due in part to the recent increase in our share price.
Turning to cash flow from operating activities, we had a good quarter, whereas on the.
Improvement of $21 million versus last year.
We used our liquidity at the beginning the beginning of the quarter to repay $83 million of debt.
As most of our debt is in the U S dollars the stronger Canadian dollar contributed to a decreasing the debt by an additional $45 million.
In light in line with our growth aspirations, we continued to invest in capex with $31 7 million in the quarter.
We also distribute at $19 6 million in dividends.
In light of the uncertainty regarding the evolution of the pandemic the board decided to maintain the dividend at <unk> <unk> per share.
On slide nine.
Reduction in our long term debt contributed to lowering our net debt ratio at the one eight times compared to two three times one year ago.
Excluding the impact of <unk> 16, the ratio will be closed the one five filings all of it.
The efforts to deleverage the balance sheet were recently recognized by standard <unk> Poor's as the remove the negative outlook and a firm are investment grade rating.
Furthermore.
At the end of the quarter, we had a total of $610 million of the available liquidity.
The strong financial position and our ability to generate stable solid cash flow provide us with flexibility to capture of future growth opportunities.
As for our outlook and packaging.
We've said resin price increases we will continue to be diligent in managing the pass through to our customers.
<unk> it.
That was of the lag between the increase from our supplier.
Cash through to our customers, we expect a negative impact in the next two quarters.
One of the lag effect is over.
All of your rhythm price will increase revenues.
No significant impact on EBITDA dollar amount.
Therefore, only negatively impacting margin percentages.
The stronger Canadian dollar will also be a headwind.
Actually for the next two quarters, you may recall that the the U S. Dollar was around one 140 and spring last year compared to about 125 to date.
The negative impact is mainly on the conversion of our U S results back into Canadian dollars.
In terms of revenues, we expect solid organic growth for the year, raising our outlook to between two and 3% excluding the impact of the risen flights.
In print, we continue to expect volumes to recover in the second half of 2021 as we begin comparing to last year when we face at the time and day headwinds starting in April.
In terms of what effect the ability excluding the impact of the can you get a wage subsidy program. We also expect adjusted EBITDA to grow for the second half of fiscal 2021.
Corporate thoughts.
The level should be slightly above $30 million for the year.
In terms of use of cash for the year. In addition to continue looking for potential acquisitions. We're also looking at accelerating our organic growth through capex.
Ed depending of the timing of a potential key investments, we may exceed a $100 million of planned capex for 2021.
A sport cash tax you can continue to assume around $50 million.
The <unk> million dollars for the year.
On that note.
We will now proceed with the question for you.
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Thank you for a moment, please ladies and gentlemen, we will now conduct a question and answer session. If you have a question. Please press the star followed by the one on your Touchtone phone.
You will hear tone of acknowledging a request your questions will be pulled on the orders that you received please ensure you lift the handset of you're using a speaker phone before pressing any keys one moment. Please.
The first question will come from the line of Adam Shine of National Bank financial.
On the I can assume gain the Adam Shine National Bank financial Please go ahead.
The afternoon, maybe a couple of for you first one and then one for a.
For you to now of course.
So maybe you can talk to some of the early Q2 trends.
As we slowly come out of some of the recent additional government.
The restrictions. Additionally, in the context of new product and I.
I guess, a new product introductions and some new contract wins on packaging, you might not necessarily want to get too specific but.
If you can be a little more specific I'll take wherever whenever I can get on both fronts, but also maybe in a more general way where some of these.
The new things are coming in from a vertical consideration within packaging and then just for you day now just on the context of the lift in stock based comp.
I thought you were all under the impression that.
This was largely being hedged out so maybe just elaborate on that front a little bit.
Thank you and many of them in terms of the Q2 trends.
I think I'll start and packaging on I think a.
We see a bunch of the same obviously, a Q1 was our easiest comp of the year.
But the.
What have the sustained the organic growth Inc.
Q1.
The president in Q2.
And then even might accelerate that a little bit in Q3, and Q4 of some of the business we won.
You know a transition at the.
The speed as opposed to transition so from that standpoint.
I think we're a were.
We're in line to meet our objective.
The 3% organic growth.
Kind of maybe now.
Maybe a little bit closer to the truth and the two.
Page.
Having said that you're going to have.
You guys are going to have to work with young because.
There'll be a lot of moving parts.
Because the exchange rate, but when we look at that in the U S. Dollar of the story is going to a degree.
When we got on translating that back to the Canadian dollar with word of the exchanges growing it's got a be a significant.
Decrease of the revenue.
On Canadian dollar and then you have the increase of the resin that is a.
Continue to be a frequent and significance of that would increase our revenue and to have a momentum of the negative impact on the on profitability.
On the allow mentioned so.
This is what I see for packaging.
In a sense I'm not sure of.
Of the same.
The tougher comps.
Print I think Q2.
We think that we kind of a.
A slight chance.
But better than last year.
April.
It is not as there is no more recurrent firing on here in Canada.
Stays open the we are we believe that.
We can do slightly better.
And a growth obviously in February and March will do worse, because when the pandemic world compared to a a regular a world last year, but April being a very big month for us in the second biggest.
Great.
We believe that we could be in the zone of last year, where even though a little bit better.
And then the obvious in Q3 and Q4.
We're looking to do better both from a sales standpoint, and a profitability standpoint.
Net consideration thing the.
So the subsidies from the governor on that so these are the trends.
On a new products.
They are around there all of all of our innovation for the most part is around sustainability and I think we share with you add in the.
New product, we introduced in Latin America for a for the banana.
It's been very successful very well received.
Certainly a having a lot of growth a bit.
Because of this product is a.
Used by a lot of customers, a former customers and the new customer and a lot of our other new product is all around sustainability of thinking about composed of the ball.
Of the recyclable package.
A L plus with a with our existing customer.
Once we prove that what existing customer with a large.
A new customer want to try on these things and these are the three main sector or area, where we're gaining a.
But our customer of our busy and we're gaining new customers, obviously I mentioned, the Latam and I would say a consumer and pets.
And then cheese are areas, where we're also.
Uh huh.
Moving.
Some success recording a growth at the moment.
Thank you.
And part of your question Adam on the stock based on back over a $3 5 million, there's about half of net debt.
Is linked to the price increase of the share between October 31st in the.
<unk> 31, and Youre right were edge, but we heard about it about 70% of out of it and the so about one seven is the part of it wasn't the hedge and there's also a little bit of it.
Coming from volume, we issued more recently.
The recently and also of that last year, we had somewhat kind of thing stuff that maybe come for another 500000, but.
Youre right were edge, but the stock has moved for a bulk of close to $5 of the last quarter. So are you still a and then backward on park edge great. Okay. Thanks for the color I appreciate it.
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Ladies and gentlemen, if there are any additional questions. At this time. Please press star followed by one of.
As a reminder, if youre using a speaker phone please lift the handset before pressing on the keys. Your next question will come from the line of David <unk> of <unk> Securities. Please go ahead.
Oh, Yeah, Hi, a couple of questions on the assignment.
Clarification.
So when you talked about a 150 basis point impact on the math on pricing.
Is that solely on the packaging EBITDA margin or is that the total.
And the EBITDA margin.
Thats packaging.
Okay. Just on just on the path to do that margin on good morning wanted to.
Okay, and then I.
The Q1, I think it's usually when you raised the dividend of Annualizing in a range that so I guess theres not a dividend increase.
We've got some cash.
Jordan capital.
Yes, that's right.
We do that in Q1, and we look at that once a year and with the.
The board.
Going on with the call it in the in security that is the Greens.
And then too.
And can be economy in a sense, we decided the.
To be prudent and not to move and also considering that we're already.
Distributing above 25% of 30% of a cash <unk>.
It was about 4% we decided that this year would be prudent based on the economic environment that we live in.
A good push the dividend.
So we kind of leave it where it is.
Okay.
And then just on the packaging business.
So when the.
Including a negative variation on the events and tanks.
Do you still expect packaging EBITDA to grow on plenty of frontline I just wasn't clear to me.
The remain growing at the EBITDA.
Level, if thats, what youre talking about the EBITDA at the EBITDA level on that yes.
Well if you like.
Mike.
If you factor out the impact of the exchange when you look at it in the us dollar.
We think that we could.
<unk> growth.
It remains to be seen because.
Yes, there is.
It's been of the increase.
That are been announced that are also a substantial so.
We keep.
Free month, having some negative impact on that line.
So far we have no indication that that is has got a growth.
It's got a great down there and then could recur Greg.
Some money throughout this fiscal year, we will eventually will but is it going to be on this year. So.
I would say.
David if resin price with non Inc would not increase from where it is right now the answer would be yes, but if we keep adding one or two or three more increases than then.
Yes.
It's a big like in this quarter is as close to $7 million.
It took a hit so if you take a hit like that every every quarter.
Then it might not be the case, but.
Right.
That's my.
On my word of caution I cannot predict the listen the price movement. Obviously, none of this thing is not a starting to go the other way then you'll see all of that money coming back but.
This is what I can tell you.
Okay.
On the last call.
The thing on that you thought you'd be active on the acquisition front.
This year ends.
Some of your beliefs.
Yes.
Our active in the three areas I think we have opportunities on media and print and packaging.
Kind of where.
We're always looking for.
For the last 45 years I don't think Theres any years that DC didnt do a acquisition or disposition. So we were always looking to grow a acquisition is actually the.
The biggest part of our growth ambition.
On the packaging so for sure we are.
We are.
On the market looking but this point.
We have nothing.
The concrete to announce but net.
It's very much part of our of our strategy and the.
It will be.
Occasionally is there and thats the right fit for US we will be active.
And the David maybe to complete on thoughts.
And sort of or Reza and I think it's important to add that we're already in second quarter.
And if you look at the market last year, we had on average of about 136 on ethics and not a 125, so that will have an impact for sure.
The reason is the positive on back on the topline because it is a balance of truth of it being increasing for the last six months and this is why.
When we talk about organic growth, we exclude the impact of the resin prices.
But as we see the market right now you will have differently and then back on the second quarter because it does we see increases as we speak important increases coming in the market. So it will have an impact growing the topline, but impacting negatively the EBITDA because of the past rulemaking of Mrs.
Okay and the.
Thank you.
The team and it's I can the emergency wage subsidy in Q2 of them.
It's a pretty much done.
Well the rules.
Sorry.
While the rules if you look on the website the rules are not clear.
Most of March 14 that so what we know about the rules for for the second quarter of up to a mid March is that we expect to receive.
Maybe an average of a little bit less per month that we had on the first quarter.
But then it's unclear what will happen post smart because all of the Youll see without going in detail. This program was the compensate loss of business, but then the comfortable starting March 14 is what we started last year or so.
Not sure what's kind of happening now for some.
As we speak right now we don't know.
Q2 from what we know we have about a third of what we added in the first quarter that will come in.
Okay.
Alright, thank you.
Our next question on come from Martin of <unk> of Deutsche Bank. Please go ahead.
Hey, good afternoon guys.
Maybe just a follow up on the on the resin just.
I guess I'm, just curious sort of what percentage of the business is contractually linked to a resin price are a pass through and sort of how much that's free quotes.
I think we're around 70% to 75% that is under a contractual pass through.
But it doesn't mean that we're not passing and true to the other people who don't have a contract for me. We are so we are we are we on.
A very diligent.
<unk>.
And the passing this true to everybody whether the of the cash.
The cash true contract or day don't because of those increase or a.
Been a very.
There's been a lot of them and they are important.
So it's.
It's important that everybody where pricing of to everybody, but but it's done a dramatically for 70% to 75% the other.
Other folks we have to call them and we are calling them.
Well on.
The 25, 30% non index.
The sector.
Seth a are they to be.
I appreciate the the old prices are going up of its gone up quite a bit on just curious how receptive the than the pricing increases.
Sure they are more appreciated one day.
<unk> is going down.
But.
But it is it is the fact of the business I mean, we can ramp on product at a loss.
So so obviously these are the conversation, but I think it's widely known that the resin prices going up and then.
With what happened in the south.
The weather of the snow and the freezing and kind of some of our supplier.
I've had some interruption of the.
The operation.
Some moving some additional pressure on the markets and I think on.
Our customers are well aware of that once the.
They are happy.
But.
It is.
As the market we're in right now.
Okay, and what's the typical lag on.
On the stuff that's index of.
I think the typical of a as a one month to three months I think our average is probably true.
I would say two to three months of defense platforms.
The rest of the southern is about close to three months.
As a management, we try to be proactive and sometimes it might be shorter than that obviously, but the typical is three months.
Okay.
The more polyethylene of Brooklyn.
Key.
Yep.
Is it more polyethylene or propylene is more of polyethylene it's more P&L.
They are both well.
Well, let me rephrase that.
They are both going up on.
Above the same range maybe.
A bit even even a little bit more polypropylene, but can you see biggest.
Other than we're purchasing as polyethylene sort of what we have to deal with this polyethylene a PC.
Okay.
Maybe just on the sustainability front and just I guess I'm just curious for these sustainable innovations with standard products.
Is this something that sort of in the stack.
Or is it something you're sort of bringing to the table and that's really a differentiator and that's helping you win business or is it again, it's something of the customers.
<unk> got a asking for.
I think we the cause.
Customer are asking for the plastic packaging to meet more sustainable.
And then we have to come up with.
The ideas for them put them as a component of all.
Is it fully recycled recyclable.
Recyclable.
For the store pick up or is it introducing 30 50, 60% of PCR.
The post consumer resin done with weight. So we have to come up with the idea.
I think what I can tell you is that once you.
You have a success with part of their portfolio could be only 5% of 10% or even 2% of the portfolio, but what it does.
For us or anybody else, who could do that position us very well with this customer that you are a partner of choice to help them convert the whole portfolio.
To a sustainable plastic packaging and then once the when that App then you start to win business in order to start the new business your way, but are not necessarily at this point already.
Recyclable.
Our Pcr content.
You have a plan to move them Theyre sold and they're starting to move the business that is traditional with the view that you've done a convert them too.
Whatever the issue.
<unk> or a vision you share with them on.
A unique the TC I think it is for everybody.
I think it's good for the industry.
But we're all doing this.
This is what.
One of them when I say, we are winning business because of our sustainable offering it's not necessarily a 100% because of us the revenue of the sustainable product is for partnership that the customers are doing with us because of where we're heading.
And was it last quarter that you referenced I think the contracts on with the Coca Cola for a water product I'm just curious how that was doing.
The.
It's going well.
One a contract with a sparkling water brand of Coca Cola and we were the first to introduce.
A PCR shrink film for free.
The.
For those for those beverages, it's been introduced on the market very successfully running into the <unk>.
Very successfully.
We are continuing to see.
If we could expand this.
<unk>.
Type of product for other larger brand of Coca Cola and I as a supplier, we're actually looking to push of the PCR content to 50% and it looks like the probably going to be successful of doing this so it is an area that.
The evolve very very fast.
Our job is to make the product evolve obviously is for the customer to decide.
When it's time for them to.
And the use of those products, but our job is to make them available to them and that's what we're doing.
Okay.
Just within current.
The 85% of the business that's come back.
So the of the absence of any further reopening would you sort of just expected sort of flatlined here could we come back.
Yes.
What I said in my prepared remark is if it's the.
The level of.
Restriction on the economy stays where they are right now and we don't we don't get to more a locked down and more.
It's mainly around retail retail stays the way it is we believe.
We could do about the same as last year in Q2.
And we believe that we can do better in Q3 and Q4, both in terms of revenue and EBITDA.
Now if the economy starting to reopen.
On the impact of the vaccine and more people can go into the stores and a.
The pandemic these up and there is more <unk> weighted.
Then.
It's going to be better in revenue on EBITDA no matter, what unless we go back to complete lockdown of Oriental.
All of the economy. So so.
At this point, we believe that we won't go back there.
For us but.
It stays like it is we wanted to be better than that.
Starting to.
The open up and the economy is starting to.
To recover a bit.
Then, we'll do a lot better in terms of sales and EBITDA compared to last year. So no matter, what we'll do more.
Factoring out the.
Subsidies from the government, we believe that we will be more revenue.
In Q2, Q3 income combined footprint and more of it of course.
<unk> is just how much more.
Yes.
Okay. Thank you for taking my questions.
And it sounds like you saw sort of flow.
There are no further questions at this time.
Thank you everyone for joining us on the call today, and we look forward to speaking to you soon.
Maybe I'm getting a series of stem in net income for hospitals.
Passage of a special consumers.
Hi, Crush Inc. Ladies and gentlemen, this concludes the conference call for today. Thank you for participating please disconnect your lines.
Gross.
Okay.
And the rate.
Some of it.
The company.
Good day.
Okay.
Thank you.
Yes.
Okay.
Zone.
The team.
The team.
Okay.
A.
Okay.
Okay.