Q4 2020 Interface Inc Earnings Call
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[music] zone.
Ladies and gentlemen, thank you for standing by and welcome to the Q4 and fiscal year 2020 interface, Inc Earnings Conference call.
At this time all participants are in a listen only mode. After the speaker's presentation. There will be a question and answer session to ask a question. During this session you will need to press star one on your telephone if you require any further assistance. Please press star zero I would now like to turn the call over to Christine needles corporate communications.
Please go ahead.
Good morning, and welcome to interfaces conference call regarding fourth quarter and full year 2020 results hosted by Dan Hendrix, Chairman and CEO, and Bruce Hausmann, Vice President and CFO.
During today's conference call any management comments regarding interfaces business, which are not historical information are forward looking statements within the meaning of federal securities laws.
<unk> looking statements include statements regarding the intent belief or current expectations of our management team as well as the assumptions on which such statements are based.
Any forward looking statements are not guarantees of future performance and involve a number of risks and uncertainties that could cause actual results to differ materially from any such statements, including risks and uncertainties associated with the ongoing COVID-19 pandemic and those described in our SEC filings. The company assumes no responsibility to update forward looking.
Statements.
Management's remarks during this call also refer to certain non-GAAP measures reconciliations of the non-GAAP measures to the most comparable GAAP measures and explanations for their youth are contained in the company's earnings release and form 8-K furnished with the SEC today.
Lastly, this call is being recorded and broadcast it for interface. It contains copyrighted material and may not be rerecorded or rebroadcast without interfaces express permission.
Your participation on the call confirms your consent to the company's taping and broadcasting of it.
After our prepared remarks, we will open up the call for questions now I'd like to turn the call over to Dan Hendrix, Chairman and CEO.
Thank you Christine good morning, and thank you for joining US today 2020 was a challenging year and we all experienced the impact of the global pandemic I am very proud of the interface team across the globe for your resilience. Thank you. Thank you.
Our response to the pandemic, we took swift action to put our people first we quickly moved our office based workforce to work from home and established stringent health and safety protocols to support our manufacturing team we.
We took significant actions to align our cost structure with the weaker demand environment.
It's helped to protect those margins and cash flow during this time.
Our cost reductions were temporary like freezing salaries and eliminating bonuses, but we.
Expect a significant portion will be permanent changes to the way we run our business. This gives us significant earnings power as our markets recover while we acted swiftly to control cost. We stayed focused on product innovation and our selling system. These competitive advantages position interface for long term success.
The fourth quarter came in as expected with sales of $277 million in line with the third quarter 2020 sales.
But down 18% compared to the fourth quarter of 2019 full year sales of $1 1 billion were down 18% compared to the sales for the full year 2019 interim.
Interface continues to deliver solid cash flows despite the soft demand caused by COVID-19, new.
Notably, we generated $119 million of cash from operations during the year.
Globally in some parts of APAC and Europe, we are seeing modestly improving trends the Americas have been slower to recover but the rollout of the vaccine we're hopeful the market will recover and new.
The administration's returned to the Paris climate accord and their focus on global warming should provide some tailwind for us we're excited about the potential of our new cradle to grave carbon negative offerings.
And we're seeing interest from customers across all industries and regions.
Turning to segments education retail health care and multifamily housing had been the first to show signs of recovery are.
Our retail segment was up 12% in the quarter and we're encouraged by our consumer online business and our Nora rubber brand has also shown resilience through the downturn with our focus on serving the healthcare and education segments.
Selling activity has increased in recent weeks, including a growing number of sales engagements.
<unk> sample activity in United States is approaching pre COVID-19 levels, which is a good leading indicator of a rebounding activity.
Lastly, as the macro environment begins to open we're seeing a number of major projects kickoff, including ones that had previously been put on hold and a meaningful growth in our project pipeline.
It is still unclear when we will see a full rebound in the office market, but we're starting to see overall signs of improvement we're anticipating demand a strength in the second half of 2021 major companies are allowing their employees to return to the office as we have at interface.
But also reconfiguring portions of their office footprint to create more open collaborative space. This is a large opportunity for us based on market data and the research. We're seeing we believe that most companies are ultimately planning some level of return to a physical office, we're positioned well to take advantage of this potential.
Recovery, we continue to be focused on product development with a robust launch pipeline planned for 2021 and in fact, we're on track to launch more styles and 2021 than we did in 2019 pre COVID-19.
As we look to grow our carpet tile share we plan to expand our embodies beauty collection to E. AAA in the first quarter of 2021, we first launched this product line in the Americas in the fourth quarter of 2020.
The industry first cradle to gate carbon negative carpet style styles are generating a lot of interest, particularly with our global end use customers as they work to meet their own publicly declared time bound commitments for carbon reduction.
And I'm proud to share the key elements of our carbon negative carpet tile innovations are now patent protected this.
<unk> U S. Patent award is the culmination of two decades of research and development that started in the early two thousands with our cool <unk> technology. This.
This is an incredible achievement for interface and further cements, our leadership position and competitive advantage.
We're not stopping there in select markets in Europe in the first quarter, we expect to launch our first cradle to gate carbon negative microtel carbon toll collection. The dealer channel is an important focus for us in the Americas are open air product platform is ideally positioned for the dealer market. It allow.
How's us to design manufacture and quickly bring to market sets of products that are attractive high quality and that meet today's budget needs to open their styles worked particularly well in areas with large floor plate footprints and we're expanding with new colors patterns in combinations in 2021.
These styles also appeal to customers in the commercial office tenant improvement and education segment is encourage you. This product launch has seen the fastest take up in the Americas marketplace and my memory.
On the resilient side, we continue to have significant opportunities within rubber <unk> products in EMEA, we just launched several new rubber cough styles and enormous family that play into the concrete look designed trend in.
In Americas, we plan to launch a new vinyl sheet offering designed to meet stringent infection control needs on patient floors and other health care applications.
This is an exciting expansion that complements our flooring opportunity in healthcare.
Also looking at additional resilient product category expansion opportunities.
Provide more updates on this later in the year.
Overall, we continue to drive innovation as we look to capitalize on trends and current market opportunities all while helping customers lower their carbon footprint of their projects. We continue to advance our manufacturing in line with our sustainability priorities and to standardize on new backing systems globally.
One Great example of this is our <unk> <unk>.
These backing offer the same performance qualities as our existing products that are made with materials that have a net negative carbon footprint when measured cradle to gate.
Supporting our work to Decarbonize, the built environment in our Europe manufacturing, we expect to transition our entire portfolio to our C class bio banking system in 2021.
These moves in our Americas, and Ian manufacturing should allow us to continue to meet growing customer demand for non petroleum based banking options.
Sustainability is top of mind for our customers is becoming table stakes several interface customers, including multiple large global technology and fortune 100 companies have chosen our products due to our carbon negative and non PVC offerings and it made commitments for our SEAQUEST <unk> product line.
Because every flooring, we sell it made carbon neutral through our carbon neutral floors program <unk>.
Interface helps end users achieve their carbon commitments, we provide lower carbon footprint across our entire portfolio.
These offerings in technology provide us with a competitive advantage carbon matters to our customers.
90% of our top customers have publicly declared their own time bound carbon reduction goals.
We are confident we will have even more success in the future because of our sustainability value proposition and the differentiation that our products bring to the market.
And carbon matters to us at interface, we are dedicated to finding solutions to reduce the carbon footprint of our products and our goal is to become a carbon negative enterprise by 2040.
These steps are good for interface good for our customers and good for the planet.
That I will turn it over to Bruce for Q4, and full year 2020 financial recap Bruce.
Thank you Dan and good morning, everyone.
Our fourth quarter results came in as expected with net sales of $276 9 million down 18% compared to the prior year period Dick.
Declines in carpet tile were somewhat moderated by a lesser declines in <unk> and rubber.
Sales in the Americas were down 27% with declines across all product categories other than rubber in EMEA sales were down 13% in local currency and down 7% in U S dollars.
Capital is down for the quarter, while LD team rubber were essentially flat.
Lastly, sales in Asia Pacific were down 12% in local currency and down 8% in U S dollars.
Declines in carpet tile were partially offset by a growth in rubber while other <unk> was flat.
However, some good signs as order levels have continued to stabilize.
Quarter adjusted gross profit margin was 35, 5% down 550 basis points from the prior year period.
Given the 29% decline in carpet tile production in the fourth quarter. We believe this is a solid margin that reflects our strong supply chain solid plant operations and our ability to flex our plant and cost structure to changes in demand.
We also continued to build earnings power through structural changes in our SG&A.
SG&A expenses were $77 3 million in the fourth quarter or 27, 9% of sales.
Adjusted SG&A expenses were $72 7 million in the fourth quarter or 26, two percentage of sales, which represented a 260 basis point improvement over prior year as a percentage of net sales.
Fourth quarter operating income was $20 9 million compared to operating income of $27 9 million in the prior year period.
Fourth quarter 2020, adjusted operating income was $25 6 million versus adjusted operating income of $41 5 million in the fourth quarter last year.
Fourth quarter 2020, net income was $19 6 million or <unk> 33 per diluted share while adjusted net income was $16 million or <unk> 27 per diluted share.
And adjusted EBITDA was $37 2 million for the quarter. Please refer to our press release for reconciliations of our GAAP to non-GAAP numbers.
Looking at full year results net sales were $1 1 billion in 2020 down 17, 9% compared with $1 3 billion in 2019 Org.
Organic sales were down 18, 4% for the year gross margin was 37, 2% in 2020 and adjusted gross margin was 37, 7% down 240 basis points versus the adjusted gross margin in the prior year.
Adjusted SG&A expenses were $305 5 million or 27, 7% of sales compared to $389 $1 million per 29 percentage of sales in 2019.
This represents an $84 million year over year decrease in adjusted SG&A expense and a 130 basis points of improvement as a percentage of net sales.
Full year operating loss, which included a 121 million noncash charge related to impairment of goodwill and intangibles was $39 3 million in 2020 compared to operating income of $130 9 million in 2019.
Adjusted operating income was $110 5 million in 2020 down 26% versus adjusted operating income of $149 8 million in 2019.
Net loss was $71 9 million or minus $1 23 per share in 2020, compared with net income of $79 2 million per $1 34 per share in 2019.
Adjusted net income was $67 2 million per $1 15 per share in 2020, compared with adjusted net income of $93 5 million per $1 59 per share in 2019.
Turning to our balance sheet, we generated $21 $8 million of cash from operations in the fourth quarter of 2020 and had $398 million of liquidity at quarter end year end inventory was down $24 9 million from nine 8% compared to 2019, driven by a 29% year over year decrease in carpet finished.
<unk> inventory.
In sum, we effectively controlled costs and closely managed our working capital and cash flows during this ongoing period or soften demand.
We repaid $4 million of debt in the fourth quarter net debt. Our total debt minus cash on hand was $473 5 million at the end of the fourth quarter full.
Full year 2020, adjusted EBITDA was $145 7 million, resulting in a leverage ratio of three two times calculated as net debt divided by adjusted EBITDA Q.
Q4, 2000, Twenty's interest expense was $13 million, which included $7 5 million of one time charges related to November 300 million bond offering and a five year extension of our syndicated credit facility.
These two transactions materially strengthened our capital structure and the Companys balance sheet.
The bonds are due in eight years and our banking group was very supportive and renewing our credit facility for another five years.
Depreciation and amortization of $12 million in the fourth quarter versus $11 million in the prior year period and for the full year depreciation and amortization were $46 million versus $45 million in 2019 cash.
Capital expenditures were $16 1 million in the fourth quarter and $62 9 million for the full year of 2020 compared to $20 8 million in the fourth quarter of 2019, and $74 6 million for the full year in 2019.
Looking ahead at the full year of 2021, we anticipate continued soft demand in the first half of the year. However, we anticipate a recovery towards the back half of 2021 as the COVID-19 vaccine continues to rollout markets continue to open children continue to return to school and employees continuing to return it.
The office.
As Dan mentioned, we've created significant earnings power from the Swift actions, we took in 2020 to align our cost structure to demand.
We anticipate full year 2021, adjusted SG&A expenses of approximately $330 million, which is $59 million or 15% lower than the pre COVID-19 adjusted SG&A expenses that we saw in 2019.
As Dan mentioned, even with a return to normalcy, we will continue to limit many of our costs, such as travel and expense discretionary spending and hiring beyond sales and manufacturing personnel.
We continue to have a tight handle on the operational and financial levers that are in our control.
Looking at the first quarter of 2021, we expect revenue to be down both sequentially and year over year due to several factors first as you may recall the business is customarily softer in Q1 versus other quarters due to seasonality for comparison from the fourth quarter of 2018 to the first quarter of 2019.
Net sales sequentially declined $39 million due to seasonality and from the fourth quarter of 2019 to the first quarter of 2020 net sales sequentially declined $51 million due to seasonality and COVID-19.
And as you may recall, the first quarter of 2020 had 14 weeks of operating activity versus 13 weeks in the first quarter of 2021.
When you pull all this together we're likely to see net sales declined sequentially from the fourth quarter of 2020 to the first quarter of 2021 by approximately $25 million.
Looking at gross profit percentage, we estimate Q1 2021, adjusted gross profit percentage will be approximately 37% to 38%. Our best estimate of Q1 2021, adjusted SG&A expense is that it'll be about one fourth of the full year's estimated $330 million.
Interest and other expenses $8 9 million per quarter, and we estimate that 2021 adjusted tax rate will be approximately 27%.
Fully diluted share count at the end of 2020 was $58 7 million shares.
As we continue to Vigilantly manage cash flow, we have moderated capital spending plans and anticipate capital expenditures to be $30 million for the full year of 2021.
And then lastly, we're anticipating moderate levels of input cost inflation in 2021, but we anticipate passing those cost increases to our customers through price increases with that I would like to turn the call back to Dan for concluding remarks.
Thank you Bruce I am proud of the team and what we accomplished in 2020 as a result of our efforts we will recognize as a United Nations Climate Action Now award recipient and one of the fast company's most innovative companies.
We were once again recognized among the top leaders among global brands in the 2020 Globescan sustainability leaders report.
In addition to our environmental initiative interfaces, continuing our commitment to social initiatives in our business, we established a global diversity equity and inclusion task force to develop our long term strategy. We are embarking on this journey with a thoughtful and measured approach seeking input from our employees to identify specific.
Areas of opportunities globally, we want every employee to feel they belong and that they can thrive at interface as.
As with our other ESG initiatives, our board of directors and executive leadership team will have oversight and monitor our progress in this important area.
As we move into 2021, we continue to put our people first, especially with health and safety protocols to mitigate any COVID-19 related matters we.
We'd like to thank our employees for their perseverance through this uncertain here, we expect to enter and exit 2021 from a position of strength and be successful resilient and agile during these changing times with that I'll open up for questions operator.
Thank you Laura if anybody would like to ask a question. Please press star one on your telephone keypad again that would be star one on your telephone keypad.
Question comes from Kathryn Thompson from Thompson Research Your line is open.
Good morning, and thank you for taking my questions today.
I have a follow up question on inflation and that's a trend that we've been watching for a lot of different category, but it's not just from raw materials that is health care and several other bucket.
A couple of questions for this new youre, passing on pricing, but to kind of give me your hedging and timing you have a little youre, a little bit different than some of your peers in terms the cost flow through.
Help us understand what we can expect in terms of timing.
And then also could you give us.
Some color just in terms of other inflationary pressures beyond raw materials. Thank you.
Good morning, Kathryn This is Bruce Hausmann. Thanks for the question, we're really focused in this area.
We have a very unique supply chain, which is highly concentrated on recycled materials. So unlike a lot of our competitors, we have a competitive advantage.
There were less susceptible to the <unk>.
Rises and falls in the spiking us that often happens with Virgin materials. So thats a competitive advantage for US. We also have long term contracts in place with our suppliers, where we're able to get great visibility into what inflation is coming so in terms of timing, it's probably more likely to come in in the back half of 2021.
We've had great success, historically at passing cost increases over to our customers, which we're planning to do and which we're teeing up our costs and infrastructure around to be able to do in the back half.
Rough numbers, if you sort of think about a blended rate on did.
Could you add new mentioned input cost and health care at all of that stuff all that stuff its probably around a three percentage increase if you blend everything in whether it's yarn late tax PVC healthcare et cetera.
So those are the kinds of numbers that we're looking at right now for the year and again, we plan on mitigating it with price increases.
Richard has already taken some actions.
Okay.
And then on Tuesday.
In a post COVID-19 world, but what type of feedback youre receiving for customers.
Types of projects either products throughout the day more or less less willing to include new projects.
And really is there have you seen any change in <unk> and a greater focus on software.
Hard surface.
Flooring products.
Hey, good morning, Kathryn This is Bruce again.
The most resilient product that we've had throughout the pandemic has been rubber.
And as you know our Nora products focus very strongly around health care and education.
We've done extremely well, we continue to see great traction in that area, followed by <unk> and then followed by carpet.
I think as more and more customers are looking at their office space and looking how they want to potentially reconfigure it in a post COVID-19 world.
Matt There is great opportunity for all products in all segment.
As you know we continue to diversify the corporation.
The new <unk>, particularly around health care and education were way less dependent on office that we ever happened before it's only about 47% of our revenue now.
But we're well positioned.
For our customers, who are looking at ways to create a new office environment in a pre COVID-19 world and or other R&R activity that we think is going to happen as there's less urbanization and theres less the densification of office.
In a post Covid world.
Thanks, Bruce Kevin I'd say that we're getting traction on our dealer strategy, particularly United States. We introduced open air which is a product that really hits.
Hits squarely in the dealer market and.
And I've never seen a quicker takeover of any product that we've introduced even over entropy.
I Love, our online business non product much more of our online business is really exploding as well and.
And carbon matter story is resonating with our customers in the United States, we're winning business.
Every day, because carbon matters in our carbon negative products.
The fact, we got a patent issued on that product and.
And now we're rolling it out in Europe, and we're going to roll it out in Asia as well, so I'm really sorry about everything that's going on now we have a non PVC back as well.
<unk> that allows us to compete in markets, where we were held out because the BBC. So.
I like our strategy and growing the top line.
Okay, great. Thank you very much.
And your next question will come from David Macgregor from long Bauer. Your line is open.
Yes, good morning, everyone.
One or two David.
Yeah. Good morning wanted to ask you a little bit about the gross margins and 35, 5% up 150 basis points.
Normally from a seasonality standpoint fourth quarter is a little bit third per quarter, not by a lot, but a little bit which would if we look at third quarter grew seven point to and I realize there was a lot of other things going on in the background, which suggests that was maybe a couple of hundred basis points.
Other pressure in here so.
I know theres a lot of parts in the gross margin.
But is it possible to unpack this a little bit for us and just help us understand some of.
Of the moving parts I mean, there is the raw material inflation, which you've already indicated you didnt feel was.
Maybe as big of a deal because of your yarn in your contracted but.
We are maybe a little more aggressive in terms of quoting activity just given the 29% decline in production in carpet tile.
You talked about the dealer strategy, you're rolling that out I'm guessing that that.
Gratulation is by the way end up being a route.
Pick up but I'm guessing that that was maybe a little source of gross margin pressure as well.
Just unpack that for us it will give the color.
Yeah. Thanks, David This is Bruce.
As I hear your question I think one of the things you are trying to get at is are we seeing any pricing pressure in the answer to that is no. Our pricing continues to hang in there strong really the biggest impact that we had in Q4 around gross margin was just that our volume was down and our carpet tile plants and it was down 29%.
<unk> in the fourth quarter was down 27% for the year and so there's just there's just less fixed cost.
Leverage in a situation like that we have been done a great average supply chain has done a great job at managing.
Input cost inflation has done a great job of passing that through to customers to the extent that we've seen any of that and I also want to just thank our our operators. They have done a great job of flexing the plants up and down as demand has changed so.
We feel we're really pleased with the gross margins that we saw in Q4, and we remain optimistic around gross margins as we go into next year.
Due to the very agile operators.
And due to the mechanisms that we have in place to maintain strong gross margins, yes, I would say that we've reengineered open air where we are.
We're not taking the gross margin hit the price points, we're selling it to that.
We changed the threat ups and we changed that would make that product to make it more efficient products, though.
<unk> taken dilutive margins on that product.
Okay. So as you rollout debt your product I mean, initially I think the expectation was that could be mildly dilutive to gross margins now you are saying.
It would be neutral to gross margins.
On this on this one particular product yes.
Okay. So I guess, that's kind of brings around the question of how do we think about incremental gross margins.
Non operating margins with incremental gross margins for 2021.
Just based on everything that you feel those before you know.
Yes, David This is Bruce we're really we're mainly <unk>.
Providing some guidance around the first quarter, which we think will be around 37% to 38%.
It's a little bit of a.
Sort of see how it plays out in terms of top line volume, obviously is topline volume picks up.
Continue to get additional fixed cost leverage.
Which helps us a lot on that line and.
Then we will just.
We're going to we're going to kind of keep watching this quarter by quarter and month by month, and we're going to make sure that we that we continue debt.
The critical part of our cost structure and we're also continuing to rightsize. This company based on what we see on the top line.
I am not happy with 331, either we had to add back a lot of bonuses and variable costs into that but we're continuing to rightsize the company and we're not done right sizing interface going forward, David I think Dan was referring.
Turning to our SG&A number that right and so that data.
We continue to take a hard look at that number going to continue to look at that and we've got a lot of initiatives to try and.
Think about how to restructure and replace going forward, Yes, we've talked about prior David. This is Bruce again, we've talked about it before but really where we're principally focused on.
Operating income margins and at the end of the day, that's what we need to be driving and that's where we need to continue improving.
Now, sometimes the mix between GP and SG&A will change, but we're going to use those levers inside the middle of the P&L to get to the right outcome on the bottom.
We're seeing some positive activity.
David.
We're saying we're doing sampling Christine.
We're seeing sampling pickup we're seeing rfps picked up.
We're seeing customer visit is picking up.
And we're seeing a lot of interest in our carbon negative products.
Last question then.
To elaborate further on that debt would how much of that from the U S versus overseas and.
How much of that is cost per se.
Say.
Yes, if you go to Asia Pacific is coming back Asia, I won't say Pacific Asia, Australia has been okay, but.
China is coming back and is starting to come back the debt.
Biggest positive to me is that our U S business is starting to feel a lot more activity, we're starting to see some big rfps come through we're starting to share a lot more sampling activity.
People are more active and more positive and I think we are hitting the market with the right kind of products to be honest with you.
Yes.
Congratulations.
I hand, it over to someone else and I'll get back in queue. Thanks.
Thanks, David Thank you David.
Again, if anybody would like to ask a question. Please press star one on your telephone Keypad. Your next question comes from Keith Hughes from curious your line is open.
Thank you.
Question on the SG&A you had.
Good run here in 2020 cutting that down given the falloff in the market.
I guess would the demand youre talking about here for 'twenty, one I don't really understand why you talked about taking costs out permanently why is the SG&A estimate for the year why is it going up so much considering that now it looks like there's still a little from.
So why is it still kind of uncertain at this point, what kind of spending is coming back.
But all the spending coming back on that number really Keith the variable comp that we added back.
Salary increases in bonuses that we budgeted.
And all of that is variable comp.
The bonuses, obviously variable comp and you have to earn it.
The performance targets.
We had 363 31, there's 25 million of variable comp that we put back in there.
So I'll focus on how to reduce debt, yes, I'll now focus on how to reduce the SG&A cost Bruce.
So I'm looking at Bruce.
Keith.
Bruce you take up by though is we're really focused on how to continue to continue to go after that number.
Okay.
This is Bruce one number that I just wanted to make sure.
Go ahead.
I think it's day, one number I want to make sure you are aware of the glass.
Yes, if you talk about that as kind of flat correct and there was a lot of furlough and that that number words funded by governments around the world.
But we're gonna campaign, and I'm really looking at SG&A and go after it Keith one thing I wanted to mentioned that Bruce is that structurally if you look at the number compared to 2019, it's down 15%, we've taken about $59 million of costs out of the SG&A structure, which is which is a which is a great outcome.
That the money that comes back as Dan mentioned only comes back if we hit our targets because of the variable comp.
There were some things that we did in 2020, where we stopped four one K match.
There weren't very many bonuses paid very very few and so Angela and the stock comp and our stock comp was basically zero in 2020. So now as we think about 2021.
Out of that stuff resets and we're just we're trying to bake that into our thinking.
As we we want to hit our targets for the upcoming year.
Container challenge that structure.
Great.
Okay second question.
Ed.
So that's early Daniel which of your cash.
Quoting samples or something like that would be back to pre COVID-19 hi.
This range would that worldwide.
Just give you some specifics.
He was asking about sampling activity and he's asking about geography, the U S versus Europe versus us other than most of the debt.
Activity is picking up everywhere around the world to be honest with you you've got pockets of strength in Europe, and where they've had the lockdowns in the second Lockdowns, we're seeing less activity, but the most encouraging to me is what's going on in the U S.
Okay alright. Thanks.
Thanks for asking the questions.
Thank you Keith.
I have no further questions. Thank you I'll turn the call back over to the presenters for closing remarks.
Thank you all for listening to our call and we're very encouraged about the vaccine rollout. We're very encouraged about how we're positioned in the marketplace to win.
And hopefully we will have a lot better conversations positive conversations in next quarter. Thank you.
Yeah.
Thank you everyone. This will conclude today's conference call you may now disconnect.
Okay.
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