Q4 2020 Watsco Inc Earnings Call
Good day and welcome to the Watsco fourth quarter 2020 earnings conference call on.
All participants will be in listen only mode.
After todays presentation, there will be an opportunity to ask questions.
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Please note. This event is being recorded I would now like to turn the conference over to Albert on its CEO. Please go ahead.
Good morning, everyone and hope everyone is healthy and safe.
And welcome to Watsco is fourth quarter earnings call.
This is Alan Amit Chairman and CEO and.
And with me is a J Ahmed President Paul.
Paul Johnston Executive Vice President and Barry Logan also executive Vice President.
That would be normally do before we start here's our cautionary statement.
The conference call has forward looking statements as defined by U S C C laws and regulators.
Pursuant to the Safe Harbor provisions of these various laws ultimate results may differ materially.
The forward look each day.
Now onto our financial report.
Watsco produced another record year with sales net income and earnings per share reaching record levels.
We generated record cash flow of $534 million during the year well in excess of our goal of generating cash flow greater than net income.
This further strengthened our balance sheet, which is now debt free and provides us the capacity to make almost any size investment to grow our business.
We also announced this morning, a 10% increase on our annual dividend to $7.80 per share that reflects our confidence in our business.
'twenty 'twenty results were driven by steady growth with market share gains in our U S residential HVAC equipment business.
Which grew 10% for the year and 17% during the fourth quarter.
Oh monitors continue to invest in their homes.
Yeah.
Replacement sales at higher efficiencies remain strong from early summer.
Through today.
Looking long term, we see opportunity to be a significant participant in contributor and efforts to address.
I'm a change.
Sales of high efficiency products have long been a component of our business.
And have grown steadily.
Our sales mix over the past decade.
This is an interesting data point there are over 110 billion installed H P. A C systems, the United States.
In which you're operating under old efficiency standards that resulted for the user and higher energy.
Hughes and cost to them.
It's important to note, we will explore and evaluate impactful opportunities to.
To make progress in our marketplace.
We believe the combination of watsco technology platforms.
Industry, leading scale.
Access to capital.
Customer relationships and unrivaled OEM relationships.
Provide a strong foundation and long term benefits for all stakeholders all stakeholders involved.
We also continue to invest in our industry, leading technology platforms, leading to greater adoption, new customer acquisition and market share gains.
User growth on Watsco is E commerce platform a good indicator of overall tech adoption was up 20%.
During 2020.
This is important as sales growth rates for customers that are active users outpaced growth rates of non users.
Also customer attrition among active users is a fraction of non users another good indicator of the effectiveness.
Now some more detailed examples of our progress.
Weekly users of our mobile apps increased increased 27% in 'twenty 'twenty with over 120000 downloads.
The number of E Commerce transactions grew 20% this year to 1.2 million online orders.
Our annualized E Commerce sales run rate is 33% versus 31% at the end of last year in certain markets, it's over 50%.
Our curbside or dock side pick up services expand it to more locations and now includes no contact payment functionality.
The technology has only been available since this summer and already over 22000 orders.
For Phil.
By more than 3000 unique users.
Two of our newer innovative platforms gained momentum in 'twenty 'twenty.
We call them.
On the call there.
And credit for comfort.
These platforms help digitize the relationship between contractors and homeowners.
On buying and financing replacement HVAC systems.
On call are is growing exponentially contract has provided digital proposals to over 109000 hospitals.
Using the tool during last year and.
And generated nearly $350 million in gross merchandise value for our customers at 89% increase over last year.
And credit for comfort process, 40% more digital financing applications in 'twenty 'twenty versus 2019, resulting in more than 180% increase in third party funded loans.
This tool helps homeowners afford much needed X V E Z systems.
Investments in inventory management software have also benefited the company, yielding lower inventory improved turns and contributing to our record cash flow and operating efficiency.
These examples are exciting and we believe its still early in terms of reaching the full potential of our technology investments.
As always feel free to schedule, a zoom call with us and we can further explain our technology and its progress.
Yeah, one very important thought as we end this prepared remarks, our 'twenty 'twenty results are testament to the efforts of our valued employees across the watsco network with.
We deeply appreciate their cut their commitment.
With that a J, Paul Barry and I are happy to answer your questions.
This is a bit.
He will not begin the question and answer session to ask a question you May Press Star then one on your Touchtone zone. If you are using a speakerphone. Please pick up your handset before pressing Keith Kimmel.
John Your question. Please go ahead sorry.
At this time, we will pause momentarily to assemble our roster.
The first question today comes from Stephen Volkmann of Jefferies. Please go ahead.
These statements.
Okay.
Guys. Thanks for taking my question.
I guess, maybe just to kick us I mean, obviously 2020 was an extraordinary year in in lots of ways in terms of the stay at home spending in your market share gains and improvements in E commerce et cetera, but of course that sets us up for you know what is potentially a difficult comparison in 2021.
Especially as the year progresses. So I'm wondering maybe you can give us your thoughts about how you think the market will kind of on a you know be unveiled in 'twenty and 'twenty, one relative to the opportunities for continued growth.
Well I'll start with an answer and then I'll turn to Paul Johnson to talk about the industry I'll talk about ourselves.
I think that we will.
We are set up to continue to grow over a number of years, we've talked about technology adoption that we've talked about our financial strength with allows us to continue our active M&A program.
We have a lot of things we can do to continue our growth regardless of what happens to the industry.
And we feel very confident in that statement.
All you on talking about the market index, yeah that the market the market in 'twenty 'twenty, one you know.
It's tough to make a comparison, obviously to 2020, because we had so many ups and downs and ebbs and flows and inventory issues and such.
However, I think it's fair to say that the industry will remain strong during the year, new construction remains strong replacement demand.
Still seeing that are following through.
You know with where we ended last year. We're beginning this year you know on the rates on the right footing.
I think theres another phenomenon out there that's that's helping in changing the replacement dynamics on that is.
We're seeing homeowners stay in their homes.
For longer periods, and I don't mean because of the pandemic I mean, they're not flipping houses as they were in the early two thousands.
We're seeing them stay in their homes 13 14 years.
Which is a good indicator that when something does happen to your air conditioning system, you're probably going to replace it as opposed to repair it.
You'd have more of a tendency to to repair if youre planning to sell your home.
So I'm bullish on that secondly, I'm also bullish on the idea that we have markets, where we have.
Very good market share and we have markets, where our market share isn't as as high as we think it should be so we still have the market share gains that we're striving for and going for.
And we have great partners are working with us on the OEM side to help make that happen.
Good Paul.
Okay. Thanks, so much and my house is a we're going on your 'twenty actually so I get your point.
Quick follow up if I could I was really surprised by the inventory levels. You guys. Just did a really good job of keeping our debt under reps as we ended the year and I'm curious whether that's just more you know the strong demand in the industry and you might've, even preferred to have them a little higher or is that actually.
The new normal with all the information technology kind of benefits that you've added to your inventory management. That's a great question, Let me turn to it P. J for the answer.
Sure.
It's a combination of all of the above there were supply chain supply chain constraints in the industry. There was strong demand and our technology enabled us to fill customer orders and take market share and show sales growth in that environment as well as it gave us new insight and tools to attack, what we called nonperforming inventory.
Inventory that's a.
Probably been on our shelves for too long.
So its back with more detail and more talent focused on it we were able to move some of that old product out of the network as well so it's a mix and the confluence of all three factors and certainly those efforts continue going into 2021 and beyond.
Okay I could add.
Kind of on one more thing to that and that is you know that hey, Jay did a great job on not only getting the technology, we needed with the system side of it. So we had a visibility all the way through to what the inventories should.
But also we were able to fortunately for us before the pandemic ad.
We had people from different different walks of life and the purchasing and inventory management systems people from retail.
Some different commodities mixed in with our group of people that knew the HVAC industry.
So I think it it boat had bode well once we got into the pandemic that are people had varied backgrounds and capabilities and we're able to.
Work hand in glove with our our Oems and our other suppliers to make sure that a we had a proper cadence of inventory machines.
Yourself.
Sorry, sorry, sorry, I, probably we use technology, that's really shorthand, it's really people process and technology.
Allergy just enables great people and great processes and create change and our increased profitability.
Yeah, just to add a layer of members to it and the other.
The reduction year over year, it was around $120 million.
Which is pretty astounding number and I think part of the question is how much of that.
Is temporary versus permanent right.
We've got three assets in a cut through the conversations on it.
And more than well more than half I would say its permanent reduction on the point of view on technology and Recalibrating how are how our stores.
Actually operating stock products and the other part.
Thanks for putting on products.
So and certainly more than half and is I would call it a permanent reduction.
That's perfect. Thank you guys.
You bet.
The next question is from David Manthey things.
Go ahead Craig.
David.
Hey, good morning, Hi, I hope, it's not too cold where you are.
No no in Tampa.
[laughter]. That's ahead of the Super Bowl [laughter], Yeah, we're absolutely fine and actually a little a little warm yesterday in the eighties, but.
As always hoping you can disaggregate the organic equipment growth units versus price mix. There and then your outlook for 2021 as it relates to pricing.
Barry you want to take a shot.
Sure All day on the first if you look at the full year, which I think is the responsible way to look at it.
Potential business up 10% almost all all unit growth are very low.
Little price, if any a slight benefit on mix.
So unit growth this year and for the quarter.
Again, I would say a very simple a circumstance almost all unit growth.
Almost no price and a slight amount of mix benefit.
Hmm.
Okay.
With copper and steel on everything being up should we expect that 'twenty 'twenty, one we could actually see a positive impact there Barry.
Hello to grips on that discussion there is what the Oems make products and what their costs are.
Cost inputs are right. So almost all the Oems already announced pricing actions price increases for 2021.
And that will flow through the inventory cycle and into the season this year.
So I don't think we're ready to call it because it's a crystal ball, but there has been pricing announced and we'll see how that sits through the market. This year.
We do sell a non equipment products.
On that consist of metals right and there is inflation going on in that and those prices have been.
Been increasing and accounts for some of the fourth quarters.
Benefit that you see in the non equipment growth.
Are you you're more encyclopedic than me about that but I think it's some helpful price increases heading into 2021.
Correct got it okay.
And just to stay on that theme of the other HVAC products I'm, assuming there was some volume there I know you had.
A major initiative that you're working on and I.
I'm, assuming that some of that growth was early returns from that program.
Can you just talk about the trends that youre seeing in the early returns from the initiative relative to other HVAC products.
Okay.
Hi, I guess, we can take a shot at it Paul without.
Yeah, I don't think a lot of it was I don't think a lot of it was from the the early parts of our initiative I just think a lot of it was a little bit of pent up demand with some of the equipment spot on.
Spotting that we had that.
Equipment wasn't available so people had to repair their product had to repair a furniture you know that's been that's been probably the tightest market for everybody right now.
As far as price increases you know a lot of the steel and copper prices as Barry mentioned did occur in the fourth quarter, they had a benefit but really.
Really not material in the overall scheme of Watsco as you know revenues for the quarter.
I think more of that's going to kind of bleed into perhaps in the first and second quarter of this year, we'll have a better idea for what's going to happen price wise with those commodities.
Good to hear alright, thanks for the update guys.
Sure.
The next question is from Jeff Hammond of Keybanc capital markets. Please go ahead good morning.
Hey, good morning, good morning, everyone.
Just on the good color on the U S. Resi HVAC can you just.
Kind of update us on you know, whether it would be the quarter or full year.
You saw from the businesses outside the U S, which still seem to be a headwind and then just commercial truck trends for Q and into a into 'twenty 'twenty one.
Barry.
Hey, Jeff.
Well first Oh.
S market, we speak to that pretty directly in the press release, our other international our international business is really split into two other markets Canada Josh.
Jonathan It looked a lot like the United States at the end of the day a good market.
The commercial market underperforming residential but on whole.
Canada grew its sales and profits in 2020, so that'd be Latin America, that's where a lot.
On an American business, which we do publish on our 10-K, you can gain some data from it.
That's mostly a commercial business and that's the business that.
Went down in sales and profits this year.
Probably low to the tune of about about 20 cents a share if I look at the full year.
So when we speak about our results.
You know again put a placeholder for a lot in America, which.
But the recovery this year end and after costing us about 20 this year.
Oh, okay.
<unk> market and on like Youre seeing in everyone's discussion commercial market is improving but still lagging and.
On May 21 could be a year of recovery that can have some benefit.
Well wait and see it and and talked about it as it happens, but I'll give you a sense of 2020.
Okay. That's helpful and then just.
Just on the SG&A line can you just talk about maybe puts and takes as you think about that into other.
Into 'twenty 'twenty, one certainly good incrementals are very good incrementals on the back half, but it seems like a lot of companies you know tamped down on costs.
And <unk> and then you know demand kind of came back quickly. So just how you're thinking some you know some of those tamped down costs or temp costs start to come back and impact our SG&A. Thanks.
Go ahead Barry.
Yeah, well again, three factors I think and the answer just a kind of on Budweiser zone. So 2020 I'm you're.
You're right on.
Early reaction to all the the knives that would fall in.
Helping with the wood.
Cost reduction and provoking cost reduction for good reasons.
Second was interesting.
They need to deal with double digit demand thereafter for the next eight months [laughter]. So certainly southern cost immediately come back into the equation on the 20th when he played out.
And then third are taken.
Technology, what what did we do can we do can continue to do what they think technology, which no other whole all kinds of technology is to improve cost.
Especially on them.
See gain of of all the technology that's intended in that.
Oh, that's nice and abstract answer if I look at 2021, I would say this half or half or SG&A or people.
And commission growth.
Growth in incentive pay.
You want that to happen, we would expect that to happen.
Next year, and so that would be on G&A increases for example in that category.
<unk>, which is about 15% of SG&A.
As I think flat this year, that's an accomplishment.
Our teams went to the landlords in and dealt with the realities of what was going on in the market and this year's rent is flat well that was you know otherwise intended to or likely to increase.
Some of those savings will be capped and sustained into next year.
So if I try to summarize it without another 10 minutes of explanation.
We would see some SG&A growth next year.
Just in the reality of what happened in 2020.
We are making investments on our distribution network in 'twenty and 'twenty one.
With people and locations.
And.
We see the opportunity we have a really OEM.
Partnership and in many of those efforts and we're going to go out and expand our network some net.
Next year and there'll be some nice unit growth for that.
Otherwise technology will help pinch those increases.
And again I would expect not the same performance, but a moderate increase next year.
Okay. Thanks for the Cologuard.
Yeah.
The next question is from Chris Dankert of Longbow Research. Please go ahead good morning, Chris.
Good morning, guys. Thanks for taking the question.
I guess, just kind of looking into 'twenty, one on mute gray.
Great Great performance on the gross margin in the back half of 'twenty definitely got things stabilized I guess, you're on Latin America is a moving piece I know, there's some mixed dynamics going on but how do we think about gross margin into the new year, just any puts and takes you'd call out or anything to kind of bear in mind. Besides just the typical price volume mix.
Well.
It's something that we're focused on.
And whatever improvements you saw this year or last year I should say, we continue to believe this year will show improvement as well.
Because of our focus and because of their ability to do something about it.
Sure.
On the internal systems and approach to the marketplace.
I mean, I do assume Latin America was a piece of kind of what the headwind was kind of late 19 early 'twenty, though.
Yeah.
1920.
Barry if you understand that I go ahead and answer Yes go ahead ask your question again, so what what's what what's the what are you going to.
Yeah, sorry, so I think gross margins just kind of on a year over year basis in the you know the latter half of 2019 early half of 2020, we're facing some year over year headwinds I'm just curious how much of Latin America was was playing a role in a net gross margin decline earlier than in 2020.
No not at all on the margins internationally look like the U S margins gross margins. So there's no algebra affects the mix of income.
Sure, it's really the blocking and tackling of getting pricing in the market.
Technology, there was a big pricing initiative going on to improve how.
How are we you know.
The price of our products go to market.
And you talked earlier about.
Inflation I think there's a lack of inflation in 2020 opportunity inflation might help we'll see.
Don't know until we get into the season.
But those are the larger moving pieces.
Got it got it alright, and then I guess something we haven't touched on lately just any update on on Russell Sigler either in terms of investments being made there kind of what's required in terms of investments you know the likelihood of kind of further consolidation of ownership, but anything you can share there would be great.
Well, we can't share much where youre on a minority position and we're very supportive of anything they want from us.
And that's all I can say is we.
We don't we have no idea what their intentions are in terms of.
Divesting more ownership.
Yes, you are in terms of I mean, how are they pulling on you know some of the technology tools are they fully integrated in terms of how they come with Oncall air that type of thing well. We can tell you is that we're very pleased with their performance.
Understood.
Thanks, so much guys.
Our next question is from Jeff Sprague of.
Vertical research. Please go ahead morning, Jeff Hey, good morning, everyone. Thanks for the question.
I guess, maybe somewhat following up on that last point I, just wonder if you could speak a little bit to what you are seeing and the potential M&A landscape and I imagine, there's a little bit of tug of war a business is good so perhaps people on eager to sell but by the same token it.
It does seem like the technology changes maybe are you know kind of increasing the pressure on some other smaller guys. So just the state of play there should we expect you know.
The other M&A to happen in 2021, maybe some color on that.
The activity on your pipeline.
Well I'll make a general statement and Barry who leaves our M&A can.
Provide more information.
Watsco isn't a big acquirer.
And what.
That's part of our.
Overall, our strategy, we have a $5 billion revenue and a 40 billion dollar industry. So our share.
Has a lot of room to grow and we use our balance sheet to support M&A.
And we are active and we do think.
There's no promise, but we do think we'll have M&A this year.
And I do think that the reputation for our culture.
For a different kind of an acquirer or not disruptive we're supportive.
And all the other things that we add the capital the equity for that keep people in their organization. Our 401k, which is our donations are on watsco shares.
No.
That that sort of thing is culturally are attractive I believe.
And.
As I said lots of opportunity says were only 5 billion out of the 40 billion and now some of them are very small, but it doesn't matter to us.
We just try to bring in people that.
Wanted to continue working and continuing building what they have with our support.
And Barry.
Yeah, Jeff just a first Jessica welcome back.
Yeah, two things I think to remind everyone of is the focus of M&A is.
Other regional superpower businesses that are in this industry, we're not attempting to roll up a fragmented industry. We're focused on the largest of targets that will drive.
You know growth in share.
On platforms to build on and invest in.
The second big.
Big Big picture fundamentally is we would rather invest in.
And businesses when they're growing in reaching a greater strength, we're not turnaround experts, we're not looking for a dip in the market.
To buy we're looking to invest in strengthening business. So I think this environment. After everyone has been through a lot. This year net net is stronger now than it was a year ago.
I'd say that presents us an opportunity.
And certainly gives us confidence in where the good businesses are.
So having said that for 2021, I'll never I'll never be able to predict the thing.
Other than to say some other targets that.
We're technology.
The discussions were the reason for the discussion.
Along with performance I think that we can bring about after it can happen now that we're through some of the well.
Weird medicine.
And again the foundations are stronger today than they were a year ago. So I would expect some great conversation, whether theres, great transactions or not is still to be seen but.
There's got to be a great transaction Barry Cup.
Sure [laughter].
We're very optimistic about debt no guarantees, but we're very optimistic.
Great well, thank you for that color and good to be back on the beat Barry. Thanks.
Your next question is from Steve Tusa.
Please go ahead low stage.
Sure.
Hey, guys How's it going on.
Doing good come visit.
I'd love to its a little snowy up here.
A question for you on carrier set their backlog in residential was up three X year over year backlogs not typically the type of thing you know we talk about in residential, especially not in December did you guys get out in front of you know if somebody is price increases or you know they own.
Ability concerns and.
And order a bunch debt you know they'll deliver to you guys and in the first half here.
My other question.
Who wants to volunteer for that answer.
I will it's no we did not we did not do huge pre buys we did we did several buys just to make sure that we were refilling the inventory that we lost.
We still had a deficit in.
Very selective one thing that we did during the entire.
The entire pandemic is even when everybody else was cancelling orders, we maintained a cadence of putting in orders and maintained our order board throughout the entire pandemic.
And so we really didn't.
We had shortages, yes, but we didn't have you know these these yo Yo type the inventory movements like a lot of people did so well.
We feel that we finished the year in good shape on inventory, yes, we have a concern you know going into 2021 that we'll be able to maintain that status, but we're.
We're working diligently with our Oems on a daily and weekly basis to make sure that we're getting the fulfillment we need on what we have on order.
Yeah, I I guess that wouldn't be an inventory right. If it was backlog for them that's something they would kind of shifts you guys.
You know in the first half or whatever yeah.
So I mean I think it's.
On a unusual that debt you'd be allowed to just kind of like you know price to pay per order and get terms and you know they would essentially be holding you know whenever wherever they have on finished goods they have.
So none of that activity.
You know like I say, we've got our orders we put our orders in the way we always have.
Okay, we have a pre buy like we always do we're not trying to be unusual here.
Okay. Yeah. Most of most other manufacturers I think continued building product you know during the off season, where they normally wouldn't have shutdowns Ryan.
Ryan I think that was pretty much universal across the Oems did.
Did you speaking to the Oems I think it's pretty clear that you know Goodman lost some share whether it was their fault or not are you seeing any kind of do you expect any kind of swings I mean, you you you pretty much you know serve them. All so it's not like it's a negative or positive for you guys either way.
Do you see any kind of a swing swings back. This year you know between between the guys that kind of won and lost in in 'twenty.
I guess, that's a that's 100 dollar question that everybody has you know well will well the dealers are go back to a you know the branches day first the work that they were loyal to that they couldnt get availability or they lost and they went to other brands.
And I guess are you know that's what everybody's marketing plans are all about being able to maintain the share gains that they picked up in prior year.
And then one just one last one I've noticed good minions acquiring a few distributors recently I think it's been selective and mostly around their daikon brand and we also understand Ferguson is kind of looking to be a bit more aggressive here they put out some pretty publicly aggressive targets.
You've noticed on kind of around.
Around the block if you will.
That's a little bit of an increase in competition.
Competition is always strong.
And.
Why didn't you mentioned and others are it's a very fragmented industry.
That we think we have advantages that others don't have.
And we've had that for a number of years as evidenced by the growth that we've had I don't see any reason why that's not going to continue.
I think we're actually getting stronger I'm more optimistic about the future than anything we've done in the past.
We're on a roll.
Right quite clearly the digital stuff has worked out for you guys. So congrats on it.
Just beginning.
Yeah, great. Thank you so much appreciate it.
This is adrian going back a question to the market share, which ties right into what.
Conversation was now is that we saw huge on.
Our new growth and new customers.
From the watsco companies, which.
Which is exciting and at the same time, we're seeing all time low attrition rates of customers. So I think what that tells you is that customers are finding.
It's very good to buy product in a lots of companies. We are we're good partners to these contractors. It's are we trying to make it easy for them to do business with US we try to help them grow their businesses and that's getting more and more valued and appreciated.
Is that it sounds like a j's up for arrays al So [laughter] well I agree with that.
[laughter] thanks, guys.
Good to talk to you.
Yeah.
Again, if you have a question. Please press Star then one the next question is a follow up from Chris Dankert of Longbow Research. Please go ahead, Hi, Chris Hey.
Guys just one more from me I guess, we talked about your inventory OEM inventory, let's go down one level I mean, what are you seeing at the customer level. I mean are they still stocking a bit more than normal still kind of skittish about being able to get product on time, just what are you hearing back from from customers on and what their inventory position looks like Paul why don't you take that yeah.
Yeah, most of it most of the dealers and contractors, who we do business with really don't maintain any inventory just based on inventory in parts and supplies.
So that that really isn't the issue some of the larger.
Larger contractors do carry some inventory, but it's they really rely on the most part the industry relies on the other distributors who supply inventory.
Do we think Theres, some contractors, who may have income.
Been concerned about the shortages of last year and there they're trying to put some inventory in place. Yes. I think there is some of that happening to what extent I really wouldn't have a read on that right now.
Got it thanks, so much.
It also remains true the vast majority of our customers rely on us for their inventory yeah, that's right yeah.
Got it.
Example, we have a lot of our business units that.
Called paper.
It's probably pushing a $1 billion in terms of revenue as part of watsco.
I would say 99, 9% of what they sell today was ordered within the last six hours there none of their customers are out.
Okay, drawing from inventory replenishing with us, it's like I said de Minimis debt that's overstating it.
And then some other 95% 95% on the market I mean.
Dealers carry motors in passengers in some Wang said, some copper tubing refrigerant, but generally not equipment.
Got it thanks, so much.
This concludes our question and answer session I would like to turn the conference back over to Albert.
Well, thanks for listening and I'll talk to age everybody's Reyes.
Well, we appreciate your interest I just want to give.
Give you the confidence level that I have that where it really on a roll here I think.
I think we're very strong and good go on to get stronger.
Business is solid.
The start of the year.
And I hope it continues.
And take us up on our offer call us about.
Learning more about the technology initiative, it's a game changer.
And other than that I wish you all to stay safe and stay healthy and we'll talk next quarter Bye Bye now.
Yeah.
The conference is now concluded thank you for Dominican Inc.
Hum.