Q4 2020 TriMas Corp Earnings Call

Good day and welcome to the Trimas fourth quarter and full year 2020 earnings Conference call. Today's conference is being recorded at this time I would like to turn the conference over to MS. Sherry Lauderback. Please go ahead.

Thank you and welcome to the China Corporation's fourth quarter and full year 2020 earnings call participating on the call today are Tom Amato, Trimas, President and CEO and Bob Filipski, Our Chief Financial Officer. After our prepared remarks on our results and our outlook, we will open the call up for your questions.

In order to assist with the review or are resolved. We have included the press release and Powerpoint presentation on our company website at Www Dot try them ask for Dot com under the investors section. In addition, a replay of this call will be available later today by calling 8031112.

With a replay code of six for one three for eight three.

Before we get started I would like to remind everyone that our comments today, which are intended to supplement your understanding of China may contain forward looking statements that are inherently subject to a number of risks and uncertainties, including impacts from COVID-19, Please refer to our form 10-K and R. A.

Our 10-K that will be filed later today for a list of factors that could cause our results to differ from those anticipated in any forward looking statements.

We undertake no obligation to publicly update or revise any forward looking statements except as required by law. We would also direct your attention to our website where considerably more information may be found.

In addition, we would like to refer you to the appendix in our press release issued. This morning are included as part of this presentation for the reconciliations between GAAP and non-GAAP financial measures used during this conference call the.

For discussion on the call regarding our financial results will be or not be on an adjusted basis, excluding the impact of special items.

With that I'll turn the call over to Tom Amato, Trimas, as President and CEO Thomas.

Good morning, and welcome to <unk> fourth quarter earnings call.

As discussed over the past few quarters, we have all learned to endure changes to our daily routines to protect the health and safety of individuals in the communities, where we live and work.

It try mass we continued to take steps in each of our facilities to enhance social distancing and increase awareness of cleanliness and personal hygiene.

It remains our hope that in the coming months as vaccine availability increases our employees choose to get vaccinated.

We also look forward to a time when COVID-19 is fully treatable or better yet eradicated and when air travel and the related hotel and entertainment industries revert to pre pandemic activity levels.

This will not only benefit society, but we believe will benefit our company and our shareholders as <unk> is well positioned for a broader economic recovery and a number of product areas.

As I have said on earlier calls I extend my deepest appreciation to our employees around the world for their commitment and dedication during these challenging times.

Let's turn to slide three.

As we reflect on 2020, we.

We were able to continue our momentum towards executing against <unk> overarching strategy of course, we started the year newly repositioned as we successfully exited the vast majority of our activity in oil and gas related product lines in December of 2019, and thereby created a natural leveraging of <unk>.

Packaging business I'm try mass.

While this was in line with our strategy, we didn't recognize how important it would be to try and mass until later in the year.

Thanks to robust demand in our product lines, which support personal hygiene and cleaning to help fight the spread of germs performance in <unk> packaging group overcame weak demand and <unk> aerospace and specialty product segments to deliver solid sales earnings and cash flow results.

When disruption from the pandemic set in now one year ago, we relied on our trimas business model to immediately address the rapid changes, we were anticipating and seeing across our multi industry businesses.

I won't recap the many actions we took along the way, but I can report that our leadership team worked tirelessly throughout the year to support customer demands and also take steps to adjusted protect our longer range plans.

During 2020, we also completed three bolt on acquisitions RSA engineered products.

And for Ari and Repack as we continued to make progress against our strategy to build out our packaging and aerospace platforms.

We look forward to the contribution of these businesses will make to try and mass in the coming years. Additionally, we repurchased about three 6% of our shares outstanding which we continue to view as an efficient way to enhance value for our shareholders.

Finally, as we closed out the year, we launched our inaugural sustainability report, we have always been committed to improving <unk> with a keen focus on the environments in which we operate so it is exciting to start to start to share more of this data we look forward to updating our progress on these ESG initiatives as we go forward.

Let's turn to slide four.

As a reminder, 63% of <unk> revenues are reported in our packaging segment, where we again outperformed our expectations given what we believe has emerged as a secular global trend, resulting from a heightened awareness of handwashing improved personal hygiene and overall cleanliness.

<unk> Aerospace segment represents about 22% of our annual sales, where we where we supply engineered fasteners and fabricated products and assemblies into commercial business jet and military defense applications.

Our businesses our businesses in this segment have been severely impacted by the effects of the pandemic given the reduced aircraft production build rates.

The balance of Tri Mrs business, or 15% is in our specialty products segment, where we predominantly supply steel cylinders and natural gas engines and compressors into the welding and HVAC military and defense and oil and gas end markets, while volume in our specialty product segment has been weak due to the pandemic through <unk>.

Lyft realignment efforts. This segment is also positively contributing to <unk> overall earnings and cash flow generation.

Moreover, we anticipate our specialty products segment, particularly our Norris cylinder business will begin to recover first when the effects from the pandemic begin to subside.

Yeah.

Driven by the exceptional performance of <unk> packaging group.

And favorable tax planning actions, our consolidated fourth quarter results were better than expected net.

Net sales for the quarter were $188 2 million up 10, 1% as compared to prior year period, and up two 7% net of currency and acquisitions.

Consolidated operating profit for the quarter was $21 1 million or 11, two percentage of sales essentially flat as compared to the prior year quarter, where conversion on higher sales in our packaging segment.

It was more than offset by weak demand in our aerospace segment and the impact of falloff of demand had on aerospace is profitability.

Net income was $16 5 million or <unk> 38 per share an increase of 22, 6% as compared to 31 cents per share in the prior year period, driven by lower Q for 2020 tax rate, which was aided by tax planning actions.

As noted despite challenges from the pandemic, we performed well for the year net sales were $770 million up six 4% as compared to the prior year period, and up <unk>, 5% net of currency and acquisitions.

Consolidated operating profit for the year was $100 2 million or 13% of sales up four 1% as the benefit of higher sales was partially offset by demand related production inefficiencies.

And higher noncash D&A and stock comp.

Net income was $68 9 million or $1 57 per share up nearly eight 3% as compared to $1 45 per share in 2019.

Let's turn to slide five.

While in the fourth quarter of last year, we had surplus cash from our recent divestiture. We also finished 2020 with a strong balance sheet, even after stock buybacks and completing three acquisitions during the year net.

Net debt was $272 million and our leverage was one seven times.

We have ample liquidity with cash and availability under our credit agreement in excess of $300 million.

We also finished the year by continuing to increase our momentum in the LTM EBITDA, which was it which was $156 8 million at the end of the year as compared to $154 1 million at the end of Q3 in 2020.

So again, we're very pleased with these results for the quarter and the year and thank the wider <unk> team for their dedication and commitment.

I will now turn the call over to Bob who will take us through our segment results. Bob. Thank you Tom If we turn to slide seven I would like to begin my comments with a review of our packaging segment.

I would first like to highlight there trying assets packaging group reported record quarterly sales and operating profit for its fourth fiscal quarter. This represents the third consecutive quarter of record quarterly result in this accomplishment is a testimony to the hard work and dedication of all of our packaging team members globally, who achieved.

These outcomes despite the unprecedented nature of the pandemic and its many impacts.

Fourth quarter net sales of $124 $3 million increased more than $30 million or 35% net of foreign currency compared to the year ago period organically, we achieved robust sales growth of $23 5 million up 25% acquisitions contributed an incremental.

$5 2 million in sales and the impact from foreign currency translation added $1 6 million.

Sales of our dispensing products used in beauty and personal care and home care applications that help price the spread of germs led the way increasing approximately $19 $8 million.

<unk> continues to experience robust demand due to the COVID-19 pandemic I should also note that the level of this increase was greater than we anticipated heading into the fourth quarter. We believe that customers bought ahead of the Chinese new year to ensure availability of supply, which we believe will also have a dampening effect on first quarter 'twenty.

21 sales levels that Tom will speak to later.

Sales of products used in food and beverage applications were also higher increasing approximately $8 4 million sales of dispensers caps and closures used in food and beverage applications improved approximately $3 9 million versus the prior year's quarter, while sales of our recently acquired bag in box product line contributed.

For $5 million as well.

Operating profit increased $4 $7 million for $24 2 million driven by the sales increase operating margin of 19, 4% was 130 basis points lower versus the same period a year ago. The decline was due primarily to a less favorable product sales mix and the dilutive impact.

Recent acquisitions, primarily re pack, which was below breakeven in Q4, given demand challenges in one of its primary markets. The quick serve restaurant industry that has been severely impacted by the pandemic.

We are currently restructuring <unk> footprint as we carve out and integrate this business in the throes of the pandemic and expect meaningful improvement as we progress through 2021.

Adjusted EBITDA increased $5 1 million in the quarter or approximately 20% to $30 2 million versus the prior year quarter of 25 point too.

As we exit Q4, I wanted to highlight a couple of trends likely to impact our packaging group's 2021 performance first while we continue to experience solid order intake for many of our beauty and personal care and home care products. We are beginning to see some customers push out orders as they assess market demand.

And order planning levels for our products in light of COVID-19, vaccines, becoming more widely available.

Secondly, during Q4, we noted increases in the cost of resin that have only accelerated into the first quarter of this year. For example, the cost of polypropylene resin Wanna Ricky's key input cost has increased more than 50% in the United States. Since November 2020, and is currently forecasted to remain at these levels or higher into the <unk>.

Quarter of this year.

<unk> mechanisms in our contracts allow for the pass through of material cost increases. This occurs on a lag basis, which will present, an operating margin headwind that we anticipate will pursue it.

At least through the end of second quarter.

Turning to slide eight I will now update you on our Tri mass Aerospace group net sales for the quarter declined approximately $11 million or 23, 5% for $37 million.

Sales of Corp, fastener products and machine components declined approximately 17 million or 36% compared to the year ago period. As a result of continued low travel demand and related reductions in aircraft build rates due to the global pandemic.

Sales of fasteners were also lower as compared to Q4 2019 due to the 737, Max grounding, which we had expected.

S day engineered products acquired in February 2020 contributed $5 9 million of sales, which helped offset a portion of the organic sales decline.

Operating profit declined $7 2 million to just half a million for the quarter due to significantly lower sales volume and a less favorable sales mix operating profit margin was one 3% down from 15, 8% in Q4, a year ago as a result of lower absorption of fixed costs on the sales volume.

Decline in ongoing production inefficiencies inefficiencies associated with the impacts of the pandemic.

However, tri net aerospace was still able to achieve adjusted EBITDA for the quarter of 13, 5% as we do carry a significant amount of noncash depreciation and intangible amortization in this segment.

While we anticipate the run rate experienced during the second half of 2020, an approximate 35% decline in organic volume from 2019 will persist into 2021. This segment will benefit from a full year sales at RSA and ramp up of our more recent new business awards, albeit at significantly.

Lower volumes than originally expected at the time the programs. We were awarded the Tri Mass Aerospace leadership team continues to evaluate additional practical steps to further align our manufacturing footprint and related cost structure with current demand levels, while balancing its priority of investing in new and innovative products to support its global customers.

And positioning itself for future business opportunities.

Moving to slide nine I will now review our specialty product segment.

Net sales in the fourth quarter declined $1 6 million or approximately 6% compared to the same period, a year ago higher sales of steel cylinders used in construction and each back end markets were more than offset by lower sales of engines and compressors used in upstream oil and gas applications each for the North America.

Market is industrial economic activity in oil and gas pricing continue to be impacted by the effects of the global pandemic opt.

Operating profit for the quarter was $3 5 million or 13% of sales as compared to $2 5 million and eight 7% in the year ago period operating margin improved in the current year's quarter as a result of a more favorable product mix and also benefited from prior cost realignment actions in response to the Panther.

<unk> reduced end market demand.

Adjusted EBITDA of $4 5 million or 16, 7% of sales was significantly better than the prior quarter of $3 4 million or 11, 9% of sales a 480 basis point improvement on a year over year basis.

We will continue to closely monitor end market demand impacted by the effects of the pandemic as we believe these businesses are well positioned for early win and then our industrial end market recovery with increased operating leverage as a result of the 2020 realignment actions.

With that I will turn the call back over to Tom to discuss outlook and his concluding remarks Tom.

Thank you Bob.

Turning to slide 11, given that we continue to operate in this pandemic period with a great deal of uncertainty, which makes it challenging to forecast demand levels in our end markets. We are only providing Q1 outlook at this time, along with some broader views on the full year.

We plan to reassess returning to full year guidance, when we announced first quarter results at which time, we hope to have better information and overall market dynamics.

We would note that in Q1 of last year, we did not start to feel the effects of the pandemic until later in the quarter and our packaging segment and there were no meaningful impact impacts yet in our aerospace and specialty products segments.

For Q1, we expect consolidated sales to be 4% to 9% higher.

As compared to the same quarter last year, driven by <unk> packaging group, which we anticipate will be up 18% to 23%.

We expect about half for the growth to come from acquisitions and the remainder to be driven by increases in sales of products used in a personal hygiene and cleaning applications.

With respect to our aerospace and specialty products segment, we anticipate our sales to be lower than in the prior year quarter due primarily to the impact of the pandemic as we are comparing to a prior year quarter that had not yet been impacted by the pandemic.

We do anticipate earnings per share will be in the 34 to 39 set range as compared to 34 for the prior year quarter.

As we consider.

For full year for trimas and our businesses.

We expect our packaging group to deliver higher sales than in 2020.

Driven primarily by acquisitions.

As of now however, when we consider the second quarter of 'twenty one for the first.

Through the fourth quarter of 'twenty, one we are anticipating lower organic sales as compared to the comparable quarters in 2020.

This is the result of our expectation that some of the unusually high activity of pandemic related sales partially will recede.

And also customers adjusting their overall purchase planning levels.

I would also like to note that we have entered into a new multiyear contract with one of our largest packaging retail customers that commits us to relocate production of existing purchases of certain dispenser products into North America versus what versus what is currently imported.

The specific onshoring project will require one time capital spending of an incremental $20 million of Barbara above our normalized capital spending levels, but spread out over the next few years.

We also anticipate our aerospace segment to be up versus 2020, driven by both a full year of acquisition sales.

And meaningful stocking orders a specialized fasteners from a few distributors that begins in Q1, which we certainly welcome for what will otherwise be another challenging year until new aircraft build rates begin to recover.

With respect to our specialty products segment, we are planning for an essentially flat sales year. However, we continue to believe our specialty product segment will benefit first from a market recovery.

Let's turn to slide 12.

Overall, we are pleased with the progress we have made and focusing <unk> portfolio of businesses over the past two years, particularly with our higher concentration in packaging.

As we continue to advance <unk> packaging group, we believe <unk> is uniquely positioned to increase shareholder value once specialty products and then our aerospace businesses start to recover.

And turning to slide 13.

<unk> will continue executing against our capital allocation strategy.

Ensuring that we operate our businesses and a culture of kaizen and built upon a foundation of operational excellence utilizing our <unk> business model to track and measure our near term performance and proactively adjust as markets change.

Reinvesting our cash flow first to improve and grow our businesses organically and to also ensure net debt remains in check to protect our shareholders.

And deploying capital to enhance organic growth through M&A and also returning value to shareholders through treasury actions such as share buybacks.

We continue to believe <unk> is an exciting company to invest in and with that I'll turn the call back to Sharon Sheri. Thanks, Tom at this point, we'd like to open the call up for your question.

Thank you if you'd like to ask a question. Please signal by pressing star one on your telephone keypad.

You're using a speaker phone. Please make sure your mute function is turned off to allow your signal to reach our equipment again press star one to ask a question, we'll pause for just a moment to allow everyone an opportunity to signal.

And our first question comes from Brendan <unk> with CJS Securities. Please go ahead.

Good morning, I, just wanted to start off with.

Looking at the packaging segment.

It seems like obviously theres some some potential.

Headwinds and you know maybe in pharma or or beauty.

Hum.

But I really want to get into the home care just from looking at some of the what the CPG or saying it seems like at least some of them feel you know there is a potential for gist.

Just at elevated levels of clean supply purchases beyond.

As a result of the pandemic, even beyond the pandemic and certainly.

You know debt your your guidance makes sense in that.

It's hard to tell at this point and and obviously like you said you know who those customers are holding off on purchasing so clearly they are trying to be conservative.

You know, which again makes sense, but do you see that as a possibility could you is it possible that that this.

And grow even at this higher level if if.

Some of the behaviors around cleaning them, you know cleaning shared spaces and in homes.

<unk> maintained itself beyond beyond just the just 2020.

Hey, Brent.

Good morning, and thank you for the question, it's really a great question.

Currently for our packaging business home care is a.

Smaller percentage of our revenue that being said, it's an important part of our business.

And we.

We had really an outstanding year last year in that product line and what we defined are in that product line would be capped and closures push pull caps as well as some triggers trigger sprayers and some other products, but certainly when we look at that product line, we do expect to see.

Continued activity going forward.

More potentially for the longer term more more uplift opportunity so yeah.

Yes.

We expect to expand our presence in that area.

Did an acquisition actually a little over a year ago that landed us in that product line. So that was that was time quite well. So we're pretty pleased with that product line and we do expect that to continue to growth.

Okay, Great and then.

Going off that I.

I guess, what we're within.

You know within packaging would you see maybe more of a headwind I know.

A competitor of yours, they called out pharmaceuticals as being a.

A tougher comp for this year because of <unk>.

The reduction in cold and flu. This year is that is that an impact.

And you guys as well or is your are you are you do you play in different areas as well there.

Yes, we're largely indifferent areas of pharmaceutical and nutraceutical and again as we look at that debt business was impacted negatively last year and so as we look at it this year.

We're going to keep our eye on it but we don't see a particular undercurrent, we're worried about it but to be specific.

When we look our sales in 2020.

For Inordinately high.

In the areas of lotion pumps, and former pumps and you can imagine that's that's what's used to defense Sanitizers soap and then as he hands get dry low <unk> as well.

Sure.

Those are the product lines that we expect might pull back a little bit and we're planning that they'll pull back a little bit into 2021.

But when we look across most of our other product lines. We don't see we didn't see as much of an uptick in 2020 as we did with those product lines and that's why we're at least from a planning level being.

Being very cautious on those product lines for 2021.

Okay, great. Thank you I appreciate it.

Thank you.

Thank you and once again, if you'd like to ask a question. Please press star one.

We'll take our next question from Steve Barger with Keybanc capital markets. Please go ahead.

Hey, good morning, everybody. This is Ken Newman on for Steve.

Good morning, Ken I can.

Good morning.

I was just curious if you could talk a little bit more about some of the margin expectations across the various segments, particularly for for Aero in the first quarter.

Obviously, you're guiding revenue up sequentially from fourth quarter.

Maybe just talk a little bit about you know how much of the of the margin impact that you saw this fourth quarter was from just lower cost absorption and just whether or not you think you can get back to that the high single low double digit type of margin profile for the year.

Yes, Ken Thank you.

I think the.

For the absorption question is one that is most challenging because we did take.

Sizable cost actions as we move through 2020 in response to the impacts of the pandemic.

And the balance we're trying to strike there is to reduce costs to the greatest extent possible, but at the same time not to jeopardize our ability to continue to serve these customers longer term because frankly in the aerospace business, we're playing for the for the long game.

And you know.

Jim mentioned the up.

Fairly significant distributor stocking orders we received.

For certain of our higher and.

Fastener products.

You know that's a great example, where if we had just taken a machete through the through the garden and chopped heads indiscriminately.

That being in a position to a have secured debt order be let alone fulfill it and and so we're cautiously optimistic as the volumes of that ramp up we will see better absorption, but again as we move into the year.

Thank the counterbalance to that good news is you know where.

We're sort of further removed or down the supply chain and it's hard for us to see what level of inventory Destocking may continue to occur in 2021.

Which of course goes again the volumes in our what I'll call our core products.

So that's.

That's sort of the balance we're trying to strike and as we look out at this point in time, we're trying to be.

Conservative in the sense of how much of that Destocking might hit us until we move further through the year and have evidence that is either.

More or less of a headwind versus what we planned for.

Right.

So if I speak about that kind of in the context of them. Obviously I think everybody did some took some cost out.

Structurally and temporary at the height of the pandemic.

As I think about just the the the idea of improving margins potentially is on better absorption.

Should we be aware of any of the temporary costs can be coming back in or how should we think about the timing of flow through of those temporary costs reentering the enterprise.

I think it will they'll only reenter it to the extent our volume upticks.

Justify adding those costs back and they're variable and in that sense, well scale or or Conversely, not depending on how volume of production goes.

And I'll, just sort of offer up as well Ken.

Ken maybe not specifically rated related to your question, but what we're trying to do during this period of low demand.

I'll make some structural changes to our manufacturing footprint, which frankly, we could not have even come close to in 2019, given the high demand and pull rates in many of our facilities. So.

The benefit of that.

<unk>, we believe as the markets start to recover ultimately in the future is gaining some nice operating leverage out of our aerospace business now.

That's that's not this year its probably a few years out, but we're positioning our business for that type of gain in it.

To take advantage of some early wins as markets recover.

Understood.

Just one one more for me and I'll jump back into queue, obviously, the balance sheet still looks like it's in really good shape. Despite a lot of expenditures for acquisitions, and obviously still under your two times leverage portfolio. Our target I'm, sorry can you just talk a little bit to the M&A pipeline and where youre seeing.

<unk> are.

Are there still deals out there for a packet that a bit more packaging focused are you seeing any any any assets on the aero side, they're looking a bit more appealing.

Yeah look last year was tough right because there was certainly.

Number of months, where folks hung hunkered down and deals were pulled or anyone even thinking about a deal just had to focus on their business for so.

We're glad that periods behind us where.

Starting to anticipate.

Are some deals that were.

That traded about three or so years ago.

That are in the hands of private equity right now and by definition private equity is temporary capital. So our expectation is that we could start to see some assets come back to market.

As the pandemic is operating in the pandemic becomes a little bit more stabilized and predictable.

That were acquired.

A short period to go so we're keeping our eyes open on some of those assets as well as.

For more niche place debt.

We're aware of and that would be that would augment our current product line.

On the on the aerospace side.

Again, a little bit still a little bit challenging, but yes, we're there's a number of.

Smaller companies, we're looking for some bolt on type acquisitions there.

Debt debt, we're working on but the challenge is as you can imagine.

Owners of those businesses are coming to grips with different valuations given performance levels. So.

It's a process.

We're working on it it's part of what we call programmatic M&A to grow try mass for the long long run and we expect.

Over the coming.

A few years to continue to remain active, especially as you said with our balance sheet.

That's great color. Thanks.

Thanks, Ken.

Thank you and as a reminder to our audience you may ask your question by pressing star one.

And we have enough for another question here.

Go ahead.

Hey, Thanks again. This is that this is kind of a minimum one more follow up here I just wanted to ask a little bit about the longer term margin profile for packaging obviously.

You'd already talked at length about the headwinds that you expect from an organic perspective within that business and now you've got you know.

Potential headwinds from.

The lag in price increases for the material pass through but as I kind of think about that.

And weigh it against.

Maybe a more normalized mix back towards your industrial side of your business and then of course, the impact of acquisitions from a pharma, which I think we're.

Still pretty good from a margin perspective.

Is there any way that you can kind of help us think about you know year end margins.

Being either up or down or even flat year over year.

Just given all the moving pieces.

Yeah, I would think.

We're going to be pretty consistent with the margins that we have then.

Performing at in that business.

You do have as you point out the higher margin business associated with Ferrari.

At the same time.

That's counterbalanced with.

Lower margins in re pack and then again as we look at the full year of what I'll call our core packaging Ricky business.

We're not counting necessarily on a big jump.

Recovery in industrial markets now if that happens that will certainly be.

Favorable to margins, but as long as we're more heavily weighted to the beauty <unk> home.

Home beauty and personal care side of the mix I think the margins are going to be kind of in that low 20, and 21% range.

Got it.

And then last one from me.

I guess switching back to the specialty products segment, obviously, you've taken out a lot of cost there and the margin profile has been pretty good despite how.

Volatile debt market has been.

Even with the revenue down sequentially into the first quarter that you're guiding is low double digit margins kind of the new baseline for that segment and just you know how do you see how much more work is there to do in that segment from a cost out perspective, and how do you see the margin progression.

So.

If nothing changes.

That's a reasonable assumption, but I would say debt.

Modest.

Uptick in the.

Markets, where our Aero engine, although it's a small part of our revenue base and specialty products and even try mass overall with a small uptick in.

<unk>.

Those end markets.

Our margin profile will change rapidly because those are very profitable its a very profitable business and it is sort of weighing down the margin as well that plus.

Activities that we have underway within our Norris cylinder business, we expect to drive margin in the future as well so if nothing changes and we sort of stay in the area. The area where were in terms of sales activity for a prolonged period. Then we'll continue to do some some cost management and automation to.

To move the needle a bit but the major changes will come with higher revenue activity.

Got it that's very helpful. Thanks again.

Thanks, Ken and we have no additional questions at this time.

Okay I'd like to thank you for joining us on our earnings call and we look forward to updating you again next quarter continue to wash your hands ideally with a try mass dispensing product and stay safe and healthy.

And this concludes today's call. Thank you all for your participation you may now disconnect.

Yeah.

Okay.

Yeah.

[music].

Okay.