Q4 2020 Reliance Steel & Aluminum Co Earnings Call
[music].
Greetings and welcome to the reliance to young aluminum Cup company fourth quarter full year, 'twenty and 'twenty earnings Conference call. At this time, all participants are in a listen only mode.
Question and answer session will follow the formal presentation.
If anyone should require any technical assistance during the conference. Please press star zero on your telephone keypad.
Please note this conference is being recorded.
I'll now turn the conference over to your host Kim Orlando with add on Investor Relations you may begin.
Thank you operator, good morning, and thanks to all of you for joining our conference call to discuss reliance with fourth quarter and full year of 2020 financial result.
And by Jim Hoffman, CEO, Karla, Lewis, President and Arthur Jimmy and Vice President and CFO Bill.
And they'll sales executive Vice President operations will also be available during the question and answer portion of this call a recording of this call will be posted on the investors section of our website at Investor Day, Our S E T dotcom.
The press release and the information on this call may contain certain forward looking statements, which are based on a number of assumptions that are subject to change and involve known and unknown risks uncertainties or other factors, including the impacts of the COVID-19, pandemic and related economic conditions on our future operations.
Which may not be under the company's control, which may cause actual results performance or achievement of the company to be materially different from the results performance or other expectations implied by these forward looking statements.
These factors include but are not limited to those factors disclosed in the company's annual report on form 10-K for the year ended December 31st 2019, and is updated and the company's quarterly report on form 10-Q for the quarter ended March 31, 2020, the company's quarterly report on form.
From 10-Q for the quarter ended June 30th 2020, and the company's quarterly report on form 10-Q for the quarter ended September 30th 2020 under the caption risk factors.
Disclosure and our press release this morning, and other documents reliance files or furnishes with the Securities and Exchange Commission.
The press release and the information on this call speak only as of today's date and the company disclaims any duty to update the information provided therein and here and I will now turn the call over to Jim Hoffman CEO of reliance.
Good morning, everyone and thank you for joining us today to discuss our fourth quarter and full year 2020 financial results.
Despite the extraordinary challenges 2020 presented on a global scale, we're extremely pleased with the strong execution of our team that our team has shown not only on the field, but by all of the employees within the family of companies, who demonstrated the true resiliency of their reliance.
Those are small.
I applaud each and every one of you for your tremendous efforts to quickly and nimbly adapt to the changing changing environments ensure our customers were always taken care of and most importantly maintain your unwavering commitment to health and safety, our most important core value.
Yeah.
Since 2017, our smart safety program has been focused on embedding our culture of safety across our entire family of companies working together as one company. We focused on this initiative in 2020 like never before and response to the new.
And the unique challenges presented by the COVID-19 pandemic.
In addition to and developing new policies and procedures to prevent the spread of the virus, we improved our safety performance in 2020.
And approximately 23% reduction and our incident rate compared to 2019.
Well this is a significant milestone as I've stated in the past, we will not be satisfied until this rate reaches zero.
I'd like to thank everyone every line for their commitment to making it personal and 2020 in order to keep our employees their families our customers suppliers and communities safe.
I'd like to take a moment to congratulate both Carl Lewis and Arthur and Xiaomi and <unk> for the recently announced well deserved promotions and consistent with our board strategic Executive leadership succession plan Karla was promoted from CFO to President and Ms <unk>.
Simultaneously appointed to our board of directors effective January the 15th.
Karla has demonstrated excellent judgment and leadership and each role. She has held since joining reliance and 1992 and her unique abilities and talents and earned the respect of our employees and.
And shareholders.
Carlos promotion recognizes her significant contributions to reliance and will allow her to broaden her knowledge of reliance and field operations and a co.
The diversity of her experience and.
In addition, Arthur a Jeremy and was promoted to Vice President and Chief Financial Officer effective January the 15th.
Arthur has held various positions and reliance is finance and accounting department for over 15 years and has done a phenomenal job.
I congratulate both karla and Arthur on their promotions and look forward to continuing to work closely with them and their new roles.
Now, let's turn to our 2020 results.
We delivered a solid financial performance in 2020, driven by consistently strong operational execution, despite considerable turbulence and the market.
Our results demonstrate the strength and resiliency of our people and unique business model as well as our ability to execute through both good times and bad given the diversity of our products and markets and geographies.
Our decentralized structure and all of those to respond rapidly to fluid market conditions and demand trends.
Factors combined with pricing discipline and continuous improvements to our value added processing capabilities enabled us to achieve our second consecutive year of record annual gross profit margins at 31.5%.
120 basis points from 2019, and exceeding our estimated sustainable range of 28% to 30%.
We also maintain the healthy profitability levels. Despite the extraordinary Lee volatile and challenging market conditions for the full year, we generated non-GAAP earnings per share of $7 and 71 system. As a result of a combination of strong margin discipline and effects.
The expense control, which helped mitigate our decline in profitability.
Yes.
On the heels of a record year in 2019, we maintained strong cash flow from operations of $1.17 billion in 'twenty and 'twenty driven by our profitability and focus on working capital management.
Bar on.
Going focus on right sizing our inventory to reflect current demand levels and our differentiated I think advantage of cross selling inventory amongst our family of companies. We achieved our company wide inventory turn goal of four seven times based on tons for 2020.
In line with historical trends and the cornerstone of our business small a significant portion of our metal.
Purchase is from domestic suppliers and it has.
Is paramount and we continue to support our mill partners, who in turn have consistently been there for reliance during challenging times.
And we're kind of countercyclical cash flow generation allows us to remain flexible and opportunistic and execute executing our growth initiatives, while concurrently returning value to our stockholders.
We invested $172 million and our business through capital expenditures in 2020, including many growth opportunities such as our recent toll processing expansion and Texas and Kentucky.
Today, we are introducing our 'twenty 'twenty, one capital expenditure budget of $245 million.
Includes new buildings and other projects to expand upgrade and maintain many of our operating facilities were installed stalling energy efficient lighting and solar panels and certain of our facilities.
Our 2021 budget also includes innovative new processing equipment to provide our customers with the highest quality products and services.
Turning to M&A, although COVID-19 has slowed the pace of acquisition activity in general we continue to see a healthy pipeline of potential candidates as we've begun to broaden our view on the universe of.
Prospective growth opportunities and.
And as always we evaluate opportunities based on a strict set of criteria to ensure a strong fit within our family of companies.
Now I'll turn to stockholder returns and.
And 2020, we repurchased $337.3 million.
Worth of our common stock at an average cost of $91.80 per share and paid $164 $1 million and dividends to our shareholders.
We've maintained our payment a regularly quarterly dividends for 61 consecutive years without ever suspending payment, we're reducing our dividend rate. In addition, we've increased our dividend 28 times since our 1994 IPO, including the most recent increase of <unk>.
10% for the first quarter of 2021.
Looking forward.
And through the remainder of 'twenty 'twenty, one reliance will continue to execute and improve upon our tried and true model that has led us to industry leading results for many decades over the past year, we've adapted to operate more efficiently than ever before with the without sacrificing our competitive edge.
And the critical elements of our business that make reliance a trusted and reliable business partner.
We will maintain our focus on opportunities to enhance our products and markets and geographical diversification.
Along with our ongoing commitment to strong pricing discipline and diligent.
Diligent expense control when needed inventory management.
Organic growth and innovation as.
And this was evident throughout the past year, our customers rely on reliance to continue to support them through trying times, often and greater capacity.
And on a more frequent basis.
So I continue to say.
And I will say again America is going to need reliance to rebuilt.
Thank you for your time and attention to debt and now I'll turn the call over to Karla to review, our operating results and demand trends karla.
Thanks, Jim and good morning, everyone.
I would like to join Jim and thinking everyone and a reliance family of companies for their truly amazing performance throughout 2020.
As an essential business, we were able to continue operating throughout the pandemic with our 2020 tons sold decreasing only 10, 8% compared to 2019 and.
Our average selling price was down nine 6% and 2020 compared to 2019 due to declining milk prices for most of the products. We sell during the first nine months of the year.
Despite these negative trends, we achieved a record gross profit margin in 2020.
And the fourth quarter of 2020 healthy demand conditions and the majority of our end markets resulted in our tons sold declining only one 3% compared to the prior quarter. This was the lowest Q4 seasonal decline we've experienced and the last 10 years.
And exceeded our guidance by a significant margin.
Despite customer holiday related closures and less shipping days typical of the fourth quarter, we experienced solid demand trends throughout the fourth quarter as the economy continues to regain momentum.
Supported by solid demand and rising input costs and metal pricing improved as mill price increases from many of the products, we sell accelerated throughout the fourth quarter with prices for certain carbon steel products, almost doubling which led to our average selling price.
Increasing four 6% compared to the third quarter of 2020 again exceeding our expectation.
The favorable demand and pricing conditions and the fourth quarter contributed to our record gross profit margin of 33.0%.
A 60 basis point improvement from the third quarter of 2020 and on a non-GAAP FIFO basis, which we believe is the best measure of our day to day operating performance. Our gross profit margin of 33, 6% increased 180 basis points.
And from 31, 8% and the third quarter of 2020.
Our record gross profit margin reflects the outstanding performance by our managers and the field, who effectively implemented price increases at the time that no announcement prior to receiving the higher cost metal into inventory and pushing our gross profit margin above all.
Already strong levels, resulting from our focus on higher margin orders.
Well, we are very pleased with our record Q4 and full year gross profit margin. We continue to believe our estimated sustainable gross profit margin range of 28% to 30% is appropriate as we navigate the ongoing COVID-19 pandemic and operate.
Through this uncertain environment.
That said.
Maintaining our strong gross profit margin remains a cornerstone of our business model. We believe our managers will continue to successfully leverage the significant investments we have made to expand and improve our value added processing capabilities and.
In fact, one of the key factors contributing to our record gross profit margin for the full year with our value added processing capabilities, which has increased in recent years as a result of our significant investments and state of the art equipment other.
The percentage of orders with value added processing declined to approximately 49% from 51% and 2019 due to changes and product mix caused by the pandemic.
Processed orders continue to serve as a stabilizer to our margin and challenging markets with declining demand and pricing trends.
And I'll now turn to a high level overview of the.
The conditions and our key end markets and.
And and nonresidential construction the largest market we serve remain relatively steady during the fourth quarter due to ongoing healthy bidding activity for new projects and the restart of projects that had been put on hold earlier and the year.
And we've been seeing quoting activity and the areas you might expect such as infrastructure projects schools utilities water and power strip malls and data and distribution centers.
Demand for the toll processing services, we provide to the automotive market was strong with activity back to pre pandemic levels and the fourth quarter and the automotive Oems and steel and aluminum nose continue to ramp production as a result of reopening following COVID-19 shutdowns and.
And the second quarter of 2020.
We commenced operations at our new facility in Kentucky, and late November and also recently broke ground on a new Greenfield tolling facility in Texas with Earth focused on carbon steel tolling to support increased capacity of our toll processing customers, who are primarily and that.
Producers and their end users.
Demand in heavy industry for both agricultural and construction equipment rebounded solid levels and the fourth quarter as production schedules continued to ramp.
And customary openings from COVID-19 related shutdowns and to meet equipment dealer restocking needs.
Semiconductor demand steadily improved from the third quarter of 2020, and the market continues to be one of our strongest.
And in regard to aerospace and I'd like to remind you all that our aerospace businesses service diverse segments with commercial aerospace representing roughly half of our aerospace exposure.
Amanda and commercial aerospace further declined and the fourth quarter as a direct result of reduced air travel due to COVID-19, which has reduced airplane build rate.
We believe the fourth quarter represented the trough.
And that said demand and the military defense and space portions of our aerospace business remained stable at solid levels throughout the fourth quarter.
Finally demand and the energy sector, which is mainly oil and natural gas remained under pressure and the fourth quarter of 2023.
And throughout 2020, we took prudent cost reduction measures, including the closure of certain facilities, which helps strengthen our overall efficiency and position us to support a recovery and that's market.
We are optimistic on both demand and pricing trends and the first quarter of 2021, as we have experienced strength and both so far and the first quarter.
Before I turn it over to Arthur.
I would like to commend our folks on our improved safety performance and 2020 and remind them to keep her personal and 2021.
Thank you and Arthur will now review our financial result, Arthur.
Thank you Carla and good morning, everyone I'll start with our sales discussion.
Third quarter 2020 sales were down 12, 8% from the prior year period and as our markets continue to recover following the reopening of the economy.
Approximately half of the decline and our sales can be attributed to our business and supporting the commercial aerospace and energy end markets as evidenced by the disproportionately higher declined and our sales of aluminum and alloy product.
And the full year of 2020 sales were down 19, 7% from 2019.
Approximately half of the decline in sales was due to lower shipping volumes across all major end markets, we sell to and the remaining half was due to lower average selling prices. However, both recovering demand and pricing from the reopening of the economy and the third and fourth quarters.
2020 helped to mitigate the annual decline and our sales.
And as Jim and Karla highlighted we generated a record quarterly gross profit margin of 33% and the fourth quarter of 2020.
Up 60 basis points from both Q3, 'twenty, and 'twenty, and Q4, and 2019 and and.
Our record gross profit margin of 31.5%, putting a full year of 2020.
120 basis points from our previous annual record.
33% in 2019.
Our non-GAAP FIFO gross profit margin and the fourth quarter of 2020 was up 450 basis points from Q4 2019 and for the full year of 'twenty and 'twenty was up 280 basis points from 2019.
Please refer to our earnings release, where we provide a reconciliation of LIFO and <unk>.
Non-GAAP FIFO gross profit margin for each reported period.
We incurred LIFO expense of $15 5 million and the fourth quarter of 2020.
Due to rapidly increasing mill costs for most of our product however for the full year of 2020.
Still recognized LIFO income of 22 million and is there a cost of inventory on hand at the end of the year, we're still below the levels at the beginning of the year.
This compares to a LIFO income and the fourth quarter and full year of 2019 of $81 million and $156 million respectively.
We ended 2020, what's on LIFO reserve on.
And and 15 6 million on our balance sheet.
Based on current market conditions.
And we expect to incur and annual LIFO expense of $340 million in 'twenty and 'twenty one.
And with our accounting policy we.
Allocate our annual estimate on a pro rata basis and each quarter and.
Our current projected Q1, 2021, LIFO expense is $85 million.
And as in prior years, we will update our expectations each quarter based upon our inventory cost and metal pricing trends.
Turning to expenses.
Our fourth quarter, non-GAAP, SG&A expenses decreased 51 million or nine 9%.
And our fourth quarter of 2019, and a seven 9% reduction and ship.
And the full year.
Same store SG&A expenses declined 241 million or 11, 5% on a 10.8% reduction and shipments.
The decline and SG&A expenses was due to reduced spend across every major expense category.
And as you've heard us say before approximately 60% to 65% of our SG&A expenses are people related.
And when looking at the 11.5% year over year decline and same store SG&A expenses.
Approximately half of the decrease was people related and our head count declined 14% compared to the prior year and.
In addition, lower incentive pay.
Lower gross profit and pre tax income levels also contributed to the decline and our compensation costs.
Although we are entering the first quarter of 2021 with a more efficient expense structure.
Because of strong volume and pricing trends.
We expect our expenses will increase and their first quarter of 2021 from the fourth quarter of 2020, consistent with seasonal trends.
I will address our Q1 2021 outlook for demand and pricing shortly.
On a full year of 'twenty and 'twenty, our effective income tax rate declined to 22, 1% from 24% and 2019.
Mainly due to our lower pretax income level in 2020.
We currently anticipate on a full year 2021 effective income tax rate will be 24%.
Our strong gross profit margin and effective expense management resulted in $2 on one of earnings per diluted share and the fourth quarter of 'twenty and 'twenty well above our outlook of dollar and $32 40 per diluted share, but down 17.6.
Percent from $2.44 and the fourth quarter of 2019, mainly due to reduced demand levels related to the pandemic with commercial aerospace and energy end market sales being significant contributors to the decline and our sales.
And comparison to the third quarter of 2020.
Fourth quarter non-GAAP earnings per diluted share of $2.01 was up 7.5% from dollar 87 due to improved pricing.
Strong gross profit margin and recovering demand in most end markets.
Turning to our balance sheet and cash flow, we generated strong cash flow from operations and $230 2 million during the fourth quarter due to our profitable operations and effective working capital management, including our focus on right sizing our inventory levels at the end of the year on.
Total debt outstanding was $1 six 6 billion, resulting in net debt to EBITDA multiple of one one times.
So at the end of the year no borrowings were outstanding on our $1 5 billion revolving credit facility.
As mentioned last quarter, we significantly strengthened our liquidity position.
The successful completion of both our 900 million senior notes offering and amended and restated $1 5 billion five year unsecured revolving credit facility.
The facility Amendment combined with the proceeds from the notes offering provides us with ample liquidity and an improved debt maturity profile.
I'll now turn to our outlook.
While macroeconomic uncertainty stemming from the COVID-19 pandemic continues.
Favorable market conditions have persisted so far into the first quarter of 2021.
And with improving demand and additional mill price increases on many carbon and stainless steel products.
This environment allows us to maintain higher gross profit margin levels as we increase our selling price prior to receiving the higher cost metal and our inventory.
We expect these favorable conditions to continue and the remainder of the first quarter.
And as a result of these favorable conditions and the normal seasonal improvement we estimate on tons. So we'll be up 10% to 12% and the first quarter of 2021 competitor and our fourth quarter of 2020.
We also expect our average selling price and the first quarter of 2021 will be up 12% to 14% compared to the fourth quarter of 2020.
Based on these expectations. We currently anticipate non-GAAP earnings per diluted share and the range of $3.40 to $3 50 and for the first quarter of 2021.
And clothing.
And I'm very pleased with our fourth quarter 2020 financial and operational results.
Outstanding execution by all of our employees greatly contributed to our success in 2020.
Our efforts coupled with our resilient business model.
And disciplined execution of our strategy.
And you and another quarter of solid profitability and cash flow.
Enabling us to continue supporting our growth and stockholder return priorities.
That concludes our prepared remarks, thank you for your attention and at this time, we'd like to open the call up to questions operator.
And at this time, we will be conducting a question and answer session.
If you'd like to ask a question. Please press star one on your telephone keypad and confirmation tone will indicate your line is in the question queue.
Price start to if you'd like to remove your question from the queue for participants using speaker equipment and may be necessary to pick up your hand, and I said before pressing the star keys.
One moment, please while we poll for questions.
And our first question is from Seth Rosenfeld with Exane Bnb BNP.
Please proceed with your question.
Okay.
Good afternoon. Thank you for taking our questions today, and Karla and Arthur Congratulations on the new roles.
I had two different questions. Please.
And I have two different questions. Please the first on on the impact on product mix and price realizations and secondly on the day. Please on product mix I remember last quarter I believe you spoke and some linked by the impact of weak aerospace energy volumes weighing on your mix and on Asp's youre sounding a bit more optimistic now than a few months back and how confident are.
And that inflection and to what extent can we see asp's not just from Q1, but going forward and to outpace the strength and standard grades.
And if I may a separate question on the M&A. Please I think in your prepared remarks, you commented on a more broad scope and business is under consideration for M&A and please.
Your line is an update on what that implies in terms of the types of businesses, you're looking at going forward.
Thank you.
Yeah, Hi, Seth this is Jim and good to hear from you and I'll I'll talk about your second question first on the M&A front and I'll.
Flip it over to Karl and Bill and I can talk about individual products, but from M&A standpoint are the pipeline is full we've looked at a lot I believe we've looked at over 100, and this year and know when what when I say, we looked at 100, we didn't do.
And do deep dives on 100, and we just looked at and say that this is something we'd be interested and.
The ones that we actually did.
And get involved with and and took a deeper dive and we we just didn't find any of that debt.
Our work to the way, we would like to however.
And there's a lot of interesting companies out there are some adjacent businesses that arent. Your traditional service centers were expanding our view a little bit there, but we still have a strict criteria for wherever we're very proud of what we've we've go to reliance where you're we're very loyal to our shareholders where you for.
On her on a quality of earnings and not just driving.
Driving our top line up for any reason, but where we're and I'm encouraged I think there's a there will be something that oh, it'll pop this year that will be interested in and and Oh.
It's just part of our part of our day on a on acquisitions or are alive, and well and and we're going to you know a fifth pick the one ones from multiple who will see how it all works out that are that fit our.
Our criteria, but I'm on.
Enthusiastic about it.
And so we're going to we're going to keep that and our quiver. If you will on the products themselves and they're going on from a past karla and build a kind of jumped in and we're we're pleasantly surprised on.
And on some fronts and some of them are or you know exactly what we thought that we're going to be but I think and bill can talk to the aerospace I believe we've bottomed out on that and hopefully we have and.
We'll be able to that was from a slow climb out of that.
And energy is what it is although energy shown a little bit of signs of signs of relief or a payout ratio and so those are general statements out and why do I go to that's true.
We'll go to bill.
And you can talk about aerospace film.
Yeah, Hey, Seth it's bill on the aerospace side as Jim said, we think we bottomed out.
And Q4 last year.
And we still know we have a challenging environment on the aerospace side.
We look to see a slow gradual recovery on the commercial aerospace side of the business we've.
We've done a lot to rightsize our business both in terms of head count and inventory and we will continue to look at that and manage it.
Accordingly, and then as we've said the other side of the equation is the defense military and space side of the business continues to be very strong so that part of it is.
It is very positive.
Hey, Seth it's Karla and I was just that and a little probably a little more specific laughing to your question about the fact that we spent.
At that time, and the third quarter and a little more about our product mix and the impact it had on our average sell price because there was a much more significant impact at that time.
And Q2, we saw you know.
A big downturn and a lot of our products that aerospace kind of was winding down at a slower pace and some of our other end markets from Q2 to Q3, and then as we saw some other markets coming back more in Q3, it had a bigger impact on the net so.
That's why we spent a lot of time and they're talking about it I think you know Arthur gave some color in his comments about Q4, and where are we getting to and you just see some pressure on energy and aerospace during the fourth quarter compared to third quarter, but we think we hit and.
And both of those markets and that did show up and our aluminum and alloy sales you could see those down a little more of that carbon and stainless and Q4 compared to Q3.
And we're seeing some activity in Q1, and both aerospace and energy a little more than in Q4, which has been a positive but nothing really significant that we're anticipating any huge changes in our product mix or average sell price as we go into the quarter.
Very clear thank you so much.
And as a reminder, if anyone has any questions you May press star one on your telephone keypad doing so and ensuring that you'd do joined <unk>.
A question in queue and our next question is from Phil Gibbs with Keybanc capital markets. Please proceed with your question.
Hey, Thanks, Good morning, happy a happy new year.
And I feel I worry about it.
And are doing well doing well and snowy cleve.
And I'm, not and southern Cal but.
And what I get.
Capex for 'twenty and 'twenty one.
Should we expect a couple of hundred million this year.
And I believe we sit on our comments.
245 billion and yeah. It's it's it's like in the past.
Pretty good.
Division between growth and and maintenance as we've stated before and the pass it for and we need.
<unk> million $90 million to $100 million a year on what we call maintenance, but.
Yeah.
Not maintenance maintenance some of it is but some of it is buying it as is.
Replacing older equipment, but the equipment that we have debt.
And replacing the older equipment as much about it.
But much better technology, and tighter tolerances and things that we can actually charge more for so that's a portion of the Capex and then you know we've got some growth initiatives and there are some innovative.
Programs that we're gonna be rolling out to my T of.
Enhancements and every but yeah you can.
And believe we said 245.
Okay and on most of US go ahead karla sorry.
Oh, Yeah, and this is Arthur and just from a cash spend for <unk>.
Cash spend perspective, we think get on your cash burn will be north of that because yeah. There's.
On a lot of delays you know and 22020 with approved projects due to Covid and what have you. So theres going to be some some catch up spend so I think on that.
Full year 2021 perspective, we could probably be north of $2 45, maybe even closer to the 300.
Okay.
And on the thank you for that on the on the auto side that business given your tolling tends to be just in time.
And a lot of the businesses from what I remember so with some of these shutdowns which are.
And just interim based intra quarter.
What are you seeing there or are they telling you to stage less material, while while they take this downtime or they they still and and catch up mode from from last year.
Yeah, Hey, Phil it's bill.
And what we're hearing so far the mills are continuing to produce and so.
Some of the shutdowns, we still think the impact from the <unk>.
The chip shortage is going to be minimal to our business, but we are we are probably storing more material today than before.
And we think that.
They're going to be a bit and catch up mode.
Going forward, but so.
And so far auto remained strong and the outlook remains strong and we're watching the situation with chips very closely.
Okay and then my my last one here Bill says good good segue, because you mentioned chips.
And what's what's the pipeline look like for you all on the on the semi side, because you're you're obviously dealing with a lot of new.
Capacity growth and your business is tends to favor more of the new builds versus the consumables, but.
And what water.
What are your customers telling you in terms of how long this the cycle.
It is going to last and it looks like it looks like just on the surface. It's got some legs and.
It does feel I agree with that.
I think we said that our outlook, we think it was going to be strong and you know for the through the first half.
For the first time I think we could probably go out beyond that based on what our customers are telling us.
I'm seeing some forecast where theyre looking at double digit growth for multiple years.
Semiconductor is one of those markets. It can it can really stop on a dime. So we watch it very closely but this.
And it does look like it's got legs and is going to be strong for the foreseeable future.
Thank you.
Yeah.
And we have reached the end of the question and answer session and I will now turn the call over to Jim Hoffman for closing remarks.
Hello, and thank you again and so all of you on the call today for your time and attention both the co.
And with 19 pandemic continues to have unprecedented impact on the global economy I could not be more pleased with our strong financial results and operating performance and 2020 and I'd like to thank each and every one of our reliance employees for their courage tenacity and resolved they continue to.
Straight through the spend on.
And further relentless focus on each and every day on the health safety and wellbeing of themselves and their coworkers their families and their communities.
We'd also like to thank our investors for your continued support and commitment to relaunch and please stay safe and healthy.
This concludes today's conference and you may disconnect. Your lines at this time. Thank you for your participation.
Okay.
Yeah.