Q4 2020 Synalloy Corp Earnings Call
Ladies and gentlemen, this is the operator.
Today's conference is scheduled to begin shortly please convenient the whole. Thank you for your patience again todays conference is scheduled to begin shortly please convenience of whole. Thank you for your patience.
[music].
Good afternoon, everyone and thank you for participating in today's conference call to discuss scene of life's financial results for the fourth quarter and full year ended December 31 2020.
Joining us today are seen all the interim president and CEO of Greece Hotter C. F O Sally Cunningham and the company's outside of Investor Relations adviser, Sean Mansouri. Following their remarks, we'll open the call for your questions. Before we go further I would now like to turn the call over to Mr. Mansouri as he reads the company's safe Harbor statement within the <unk>.
Many of the private Securities Litigation Reform Act of 1995 that provides important cautions regarding forward looking statements. Sean. Please go ahead.
Thank you good afternoon, everyone and thank you all for joining our conference call to discuss Synalloy fourth quarter and full year 2020 financial results.
Before we continue we would like to remind all participants that the discussion today may contain certain forward looking statements pursuant to the safe Harbor provision of the federal Securities laws.
These statements are based on information currently available to us and are subject to various risks and uncertainties that could cause actual results to differ materially.
Send the lawyer advisors all of those listening to this call to review the latest 10-Q and 10-K posted on its website for a summary of these risks and uncertainties.
<unk> does not undertake the responsibility to update any forward looking statements.
Further the discussion today may include non-GAAP measures in accordance with regulation G. The company has reconciled these amounts back to the closest GAAP based measurement of <unk>.
Reconciliations can be found in the earnings press release issued earlier today and posted on the investors section of the company's website at Synalloy Dot com.
Please note that this call is available for replay via a webcast link that is also posted on the investors section of the company's website.
With that I'll turn the call over to the interim president and CEO of Synalloy, Chris Senner Chris.
Thank you Sean.
Good afternoon, everyone and thank you for joining today's call I Hope you of all continue to stay safe and well amid the ongoing challenges of the COVID-19 pandemic.
Wanted to start off by saying that I'm incredibly honored to be leading the team here at synalloy and have gained significant insight regarding our operations and capabilities since joining as the interim president and CEO of just a few months ago I've been particularly impressed by the dedicated employees throughout the organization, who have persevered through this unique time and continue to work hard.
Hard everyday to deliver high quality products and services to our customers. While this has certainly been a challenging year the commitment of our hard working team ensured that synalloy not only survived 'twenty 'twenty, but is now positioned to thrive for years to come.
Looking at how we closed out the year, our fourth quarter net sales came in as expected given our customers continued to be affected by the uncertainty.
<unk> from the pandemic. However, this did not prevent us from making progress on the things within our control we were able to take proactive steps to improve efficiency across our operations production and purchasing along with implementing new cost containment measures the.
Many of these initiatives are either just be being identified or only in the early stages. I am pleased to report that our efforts resulted in improving profitability across our businesses as we reported modest year over year and sequential increases in adjusted EBITDA and adjusted EBITDA margin for the fourth quarter.
That's just one example of our intent to remove costs that do not provide an economic payback, we have terminated our aircraft lease and are intent on selling that as soon as possible. We don't expect to realize meaningful upfront proceeds, but we will see savings on an ongoing basis and a similar approach.
Through the tireless efforts of Sally in the Finance Department, we have already begun to forecast the meaningful savings from our approach to outside service providers. These efforts will be ongoing in parallel to our work on the sales resource planning and manufacturing efficiency fronts, while I'm proud of the progress we have made thus far this is truly just the begin.
Of our work to transform this business and drive long term shareholder value we.
We have plenty of room for improvement and I'm excited to be a part of this organization as we grow together I'll dive deeper into each of our segments, but first I'd like to turn the call over to our CFO Sally Cunningham, who will walk you through our fourth quarter financial results in more detail from Sally.
Thank you, Chris and good afternoon, everyone and an effort to be more efficient with our conference calls.
Focus on key financial takeaways detailed information can be found in our earnings press release issued earlier today.
With that let's jump into our fourth quarter results net.
Sales were down to $55 9 million with the decline primarily driven by the curtailment of our Palmer operations earlier in the year as well the lower pipe and tube shipping.
As a reminder, we made the decision to curtail the Palmer of Texas business in April of 'twenty 'twenty as it no longer met our internal return thresholds.
Since allocated any cash generated from that business to reduce our line of credit.
Which I will touch on any of them on it.
Gross margin during the quarter increased 80 basis points over the prior year two of 11%.
As a result of the operational efficiencies and raw material price increases that were you successful successfully passed the go to our customers.
We also saw some impact of our ongoing operating cost reduction initiatives.
So that progress with hidden by some noise in our financial statements.
The one time, mostly noncash charges.
In the fourth quarter, we continue to scrutinize the carrying values of the goodwill on our balance sheet, which resulted in an impairment of $5 $5 million related to our while the tenant reporting unit.
We also had $1 $1 million of charges related to the severance payments to our former CEO of the result was the net loss in Q4 of $8 $6 million or 94 cents per share compared to a net losses of $9 million or 10 cents per share for the fourth quarter of 2019.
Adjusted EBITDA in Q4 increased 19% to $3 million and adjusted EBITDA margin also improved 170 basis points of $5 four per cent compared to the prior year period the.
The increases were primarily driven by improved the operational execution and the benefit of cost containment measures.
Lastly, looking at our liquidity position as of December 31, 2020.
Total debt was $61 $4 million, consisting of $49 million outstanding under our revolving credit facility and $12 3 million outstanding under the term black.
Representing a nearly 20 per cent reduction in debt compared to the December 31st 2019.
Subsequent to the end of the quarter, we entered into an agreement for a new revolving credit facility with BMO Harris Bank on January 15th 2021 the.
The new agreement provides us with the four year revolving credit facility that includes the.
That's the $150 million of borrowing capacity.
The result, we had $39 million of of available borrowing capacity under the new facility as of January 31, 2021, and are not currently subject to any financial covenants for.
Further details please see our press release and corresponding 8-K filings disseminated and filed on January 19th of 2021.
Now I'll turn it back or of any crisis.
Thanks Sally.
As I mentioned earlier since taking the helm as interim president and CEO of just a few months ago, we've already begun making strides in improving operational efficiency and effectiveness across the organization all of its still too early in the process to introduce a complete go forward strategy I would like to share of what we've been doing to put together a strategic plan that we believe will significantly increase.
<unk> shareholder value and maximize the potential of our business.
The management team and the board of directors had been looking at our businesses with fresh eyes, analyzing our strength as well as our weaknesses in the areas that we can improve upon I've always believed that before we can begin reengineering our processes. When you do invest in our employees and foster a culture of accountability and transparency across the organization during my visits to.
Our facilities I've heard some great ideas from our team about how we can continue to do better for our customers, while creating a culture that our employees are proud to give their best too.
We have already begun taking their feedback into account and combining it with some operational best practices around scheduling procurement and resource planning with the specific aim of improving throughput and asset efficiency.
Further we are working towards capitalizing on the diverse experiences and relationships of our employees across our different businesses as.
As we see many opportunities to work together to better service, our customers and leverage our intern individual and internal strength for the broader organization.
My hope is that we can build on some of our early wins to create a renewed sense of alignment throughout the organization.
Have a functioning as one unified team.
During this period it has become clear to me that there is tremendous value in the high quality products and services, we offer in our metals and chemical segments.
Gain further understanding of the intricacies of this company.
The left even more encouraged by its potential at.
At the end of the day, our business is fairly simple, we produce pipe and tubing for a variety of commercial industries and create manufacturer and blend chemicals for various applications, including many of the offer important environmental solutions.
There is a significant amount of value of this company already has to offer so it's going to be incumbent on us as the management team to maximize all of our resources to ensure every operating business is best positioned to succeed.
And our metal segment, we have three businesses that are leaders in their respective specialties, our welded pipe and tube reporting unit includes Brisbane, Matt, which is the largest domestic manufacturer of stainless welded pipe.
And American stainless tubing, which is the most well regarded brand and high end ornamental stainless steel tubing. We also have specialty pipe and tube, which is the leading U S distributor of large diameter of heavy wall seamless pipe and tubing.
These businesses service of variety of industries, several of which we anticipate to rebound from the effort the effects of the pandemic.
As we continue to evaluate what we can do to maximize the potential of these three operating businesses.
We'll continually be supported by a dedicated group of employees, who are committed to providing the best service possible to our customers.
And in our chemical segment, one of which I'm sitting at today manufacturers chemicals manufacturers lubricants of surfactants, the farmers reaction intermediaries and sulfate of fats and oils through proprietary product development and manufacturing processes.
And we also have Cri tolling, which provides outside manufacturing of resources to produce quality finished goods for large global chemical companies. Both of these businesses serve a wide range of end markets, including paper carpet textiles metals and mining agriculture of petroleum and automotive while our chemical segment is still a relatively minor poor.
All of our revenue of.
It does have a better margin profile than our metal segment and of vantage, we hope to better leverage and capitalize on as we move forward.
We believe this segment offers our current customers of tremendous amount of value and we're just scratching the surface in terms of its capabilities for additional products and services across various end markets.
Most importantly.
And I wanted to make sure the I emphasize that the supplies across both of our segments. We are very focused on growth and there's no question that we can operate more efficiently.
This will have the dual effect of not just improving our margins, but also providing the opportunity to improve throughput and create additional opportunities to further support our businesses by increasing capacity where warranted.
Though we see a cost structure that can be optimized I want to be very clear that we are not planning on cost cutting our weight of prosperity everything we do across our corporate infrastructure will be enacted with the primary goal of setting up our businesses for profitable growth.
Although we have so much to do we are energized by the potential in our businesses and we believe there are many growth and margin opportunities for us to work towards.
I also look forward to further building out our strategic roadmap, which will include opportunities for growth that is both organic and through acquisitions, where.
Were moving this business in the right direction and are committed to providing value added solutions to our customers that can drive profitability and return the company to growth.
Before taking questions.
Just like to thank our employees again for their dedication to synalloy.
You have been incredibly welcoming engaging in open minded as we work together to improve our company.
For those that I've not yet met I look forward to getting to know each and every one of you.
Operator, we'll now open it up for Q&A.
Thank you Sir as a reminder to ask the question you will need the press star one on your telephone keypad again by the Star then the number one on your telephone keypad P standby, while we compile the Q&A roster.
And our first the question will come from David Secret.
Your line is open.
Hey, congratulations on the new credit facility.
Thanks, David and it's nice to see.
So just a question here I noticed with the changed lenders of all much are you saving each month on interest expense with.
The the new.
Flexibility that you have.
Sally there may be a question for you.
Yes.
And that's of Great question I don't have that exact number off the top of my hand, right here, but I can tell you. There are of interest rate is lower so there is significant savings are gone for it I just don't have the exact number in front of me Okay. Yeah no problem. Thank you.
Another question, so I noticed in the the credit agreement.
Mentions that we.
That you could make acquisitions up to $25 million not to exceed 100 billion of over four years.
So I you know I guess, Chris in conjunction with your comments, we could expect at some point some.
The inorganic.
The acquisitions that.
Is that kind of what I read into.
Yeah, well you want obviously plan for the future and provide the goal of the new credit facility was to provide synalloy with as much flexibility as possible for future growth.
And they were willing to accommodate and already pre negotiated bucket for acquisition opportunities versus having to go through and re amend the loan agreement and incur amendment fees. We just wanted to say hey give us some flexibility to accomplish our mission should something be attractive to the board for our growth.
The opportunity.
Yeah.
That makes sense good now.
Now I noticed you know of headquarters enrichment 275 miles from any manufacturing facility.
He plans to consolidate corporate infrastructure you know it seems like.
Got it.
Maybe a good place to start.
Is that something that's been considered.
Yeah. It's a great question Theres, a very large dedicated team at Richmond that sally's built that is functioning extremely well, obviously with the pandemic of.
Of the World has moved to somewhat of a remote structure and the of the functions of finance accounting HR I T team are centralized in Richmond and in operating efficiently at the moment.
Got it okay, no that makes sense.
Full year 'twenty 'twenty EBITDA was $9 2 million, so you know and a better business cycle.
Are you comfortable giving us like a reasonable goal as to what we could expect them you know improving business cycle.
Yeah. It's a great question, obviously with you know, there's a improving general economy with the pandemic.
Say winding down and you have out of our metal segment, a tailwind and overall commodity pricing, increasing so I would without giving a specific number I would say the conditions are ripe for our.
The improved performance in 'twenty one.
Good thank you.
I don't I don't want to take all of the all the questions here, but I do have a few more kind of can I give you. Some more questions go ahead, David Okay. So.
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I noticed a CR I told them you know, they're at 50% capacity, if I remember correctly in previous calls.
So.
Is there a.
A renewed focus to like pursue toll manufacturing so that we have more of our capacity being used and you know that fixed expenses being being taken advantage of that.
The timely question for me since I'm sitting here at manufacturers actually right now and really looking at our product mix for what we are producing and whether its a reaction or of blend and what we can do with cri.
Definitely there are significant opportunities to have our two chemicals businesses work more streamlined together and that's why I'm here on the floor just really.
Looking under the covers on what we can do to optimize our asset efficiency and throughput and utilization.
We do have a tremendous asset base here of that that can create a lot of great products and the R&D team at both facilities are dedicated to coming up with products and solutions for our customers that we just have to go out and sell it none of the business and I'm fully confident we'll be able to do that.
Got it thank you.
One of the competitors the Synalloy Olympic Steel mentioned, the I don't know a week or two ago that they were having some shortage in trucking.
And there's some challenges connected with that.
Has synalloy been able to you know has there been any optimization and like freight logistics with.
U P G being able to use you know.
Some of their trucking is there any.
I mean have you run into that same problem that Olympic steel mentioned or are we how are you doing in that area.
I would say I mean, I guess, that's a couple of questions. There. Yeah. It is Florida has not entered into any agreement with U P. G on any shared service throughput or efficiency to date. So.
With respect to synalloy's logistic needs of and.
I don't know what Mr. Siegel said at Olympic but you know there is a supply constrained with flatbed trucking, which is our primary use of.
The metal segment chemical segment, it's more are for tolling or freighting for third party customer freight so they're really negotiating the free and in an outbound of our plants, but we haven't seen the that has not been the constraint of our business for us.
Okay, Alright, you know with all of the emphasis towards Green energy. It does seem as though I have any product that they could sell.
Hum.
And to that those initiatives.
Yeah, it's funny I take the again a very another timely question. It's almost you were sitting here with me it feels like Oh, there was the our surfactant business is as a product that goes into a significant amount of green chemicals, and Oh I was talking to one of our lab technicians, there's of large backlog growing of surfactants and the application of.
Surfactants, whether it be anti microbial for clothing antimicrobial for surface applications, whether it be glass cleaners table cleaners, obviously sanitizer was of a large pickup in tailwind of the business last year. So absolutely. The the world is a is a heavy focus on that.
Got it.
Maybe just.
One or two questions more so I noticed in the 10-K as of December 31st 526 employees.
With your cost containment measures.
Would that affect synalloy, its ability to execute in an improving business cycle.
No absolutely not I would argue that you are again as I mentioned earlier, where I kind of cost cut our way to prosperity. We we are going to invest in and the right people processes.
And that is what our <unk>.
Primary focus is finding the eliminating the operational inefficiencies and the costs associated with that and redeploying that into productive uses to increase our margin profile and uncover additional business opportunities.
That makes sense.
And then just one of the thing you know of nickels up 13% in the fourth quarter.
It went even higher through March I know, it's corrected some recently, but.
I think that probably helps with inventory profits I would think in first quarter.
But how have you has the team could figure it out of hedging strategy. So that we're not we don't have inventory losses.
Order after quarter after quarter.
Yeah. That's that's an interesting question of.
Again, I want to level set on nickel nickel is a component in our stainless products.
But when you look at the percent of of nickel within the products, it's not a significant driver of inventory increases or decreases the global commodity market and you look at hot roll of cold rolled steel as a large driver of that and the additional thing that we have and can pass through it does become a timing issue is the surcharges day.
We either pass through from the mill and we pass through to our customers or not so at the end of the day, regardless of nickel prices. If you look back in history of nickel was 50000 of tonnage 16 ish thousand of ton today.
Our job is to have the right inventory on the floor and the production queue and out to our customers on time, so we can minimize regardless of the market condition.
We can minimize the effects of global commodity prices on our income statement balance sheet.
That makes sense.
Well, that's all I have thank you other good a good hearing your voice and <unk>.
Look forward to the months ahead.
Thanks, David they are of Great night.
You too.
And David just to circle back on your one of your earlier question. The the interest savings per month of the approximately $100000 per month.
Okay excellent well.
Thank you.
Alright.
And your next question will come from Mike Hughes with S. G F capital. Please proceed.
Thanks for taking my questions.
First one the the prior management team said during a good cycle EBITDA could approach I think they said $40 million I assume palmar accounted for maybe 5 million of that so just just $35 million does that still seem like a right number T N of in a good environment for EBITDA.
Hey, Mike Thanks for the question.
Obviously, we want to maximize our EBITDA in any cycle and in order to give you a specific number and I can't speak to the prior management and how they calculate that number.
But we are positioned to significantly improve our EBITDA with the business improvements in operational efficiencies and working capital management that we are implementing.
I can I can.
Can't give me the exact number.
At this point, but I can tell you the for strategic Division strategic.
For strategic throughput.
It should should improve.
Okay.
Do you of any forward looking metrics like backlog.
That'd be maybe bottomed out that you'd be willing to provide or how they may be the have not bottomed out at this point.
I can regarding our fourth quarter backlog there is a oh, what I would define a significant improvement in backlog.
But at the end of the day and any business. It's what part of what are you actually delivering to customers that call. So.
The the.
The.
Product delivered to customers what generates revenue not backlog.
Yeah.
Yes.
Are you referring sequentially.
Our year over year.
From third quarter to fourth quarter.
Okay.
And I assume you mean on a volume kind of unit basis not in dollar terms because of your just purely would've benefited from higher nickel and her steel in the fourth quarter is that correct.
Correct.
I think I'll tell you may be able to answer the sequential prop. The sequential question with Q4 of <unk> 19 to Q4 of 'twenty.
While we may have to make to get you that answer.
Yeah, I have to get back to you.
Okay. That's fine one of your private competitors has I think taken three base metal price increases over the last few months have you done the same.
Yeah, we're we're looking at pricing, giving I'm sure you're aware of what's going on with a T I and they're putting their coil group and the two primary domestic producers NASA or the combo.
We're looking at pricing on a daily basis for passing through pricing as fast as we're seeing it come through to us.
Oh kind of we have across the pricing daily will pass through daily.
Okay.
And then a lot of manufacturers are having a difficult time.
Attracting and retaining employees. So what's your employee retention looks like and is there any unusual wage inflation that we should think about for this coming year.
Yeah, we're not seeing significant wage inflation I would say are the ability to hire and retain talented employees is a challenge everywhere.
For the voice of the typically in certain of.
Difficult depending on the employer base around the plant.
And we are having some issues, finding and keeping and retaining talent, where its a highly competitive market.
In terms of wage inflation.
We don't see with the standard cost of living.
You know situation there that we're seeing right now.
Okay, and then just two more questions for you I think of the 10-K. It's stated that you reauthorize the buyback on February 17th So what's your ability to buy back stock at this point.
If you look we do have some restrictions in our loan agreement in terms of the amount we can buy back and that's obviously subject to our availability within our revolving credit agreement.
So there is capacity should the board decided to.
You know pursue some buybacks.
Is there like a restricted payments basket is that sort of how it works.
Yeah, but I would have to get you the exact amount in terms of what the number is.
Okay and then my last question is kind of a fall of two one of the the prior questions I think of the 10-K. It indicates that just the fluctuations of nickel last share.
Resulted in unfavorable operating impact of $5 3 million in the prior year was six point.
$4 million mm Theres, a big move up in nickel in the fourth quarter and then as you pointed out an even larger to move up in steel. So does that kind of reverse itself in the first quarter I remember.
Over the last few years, when nickel withdrawn or steel would run you'd have the big inventory profit was is that happened in the first quarter as the accounting methodology changed.
There's typically a tail on it in terms of you know either of price increase of price decrease and obviously steel or nickel. So as we're cycling through that in a few of inventory on the floor that you're selling or selling that into a higher market given the general commodity pricing. So you typically see that anywhere from three to six months of lag in terms.
Of the reflection on the income statement.
Okay. So you should be sitting on a a better first half hopefully as long as demand holds up.
The demand is very robust right now.
And what about on the because we've been focusing on the metal side can you what about just demand on the chemical side.
It's the similar it's you know the.
The amount of opportunities, we're seeing from new customers and existing customers.
Chemicals business from the tolling standpoint.
The reduction in volume when all of our customers.
Increased their internal capacity because of their overall reduction in demand now as demand is increasing but they are limited to their production capacity. That's one manufacturers and cri start to see a tremendous amount of opportunity because we have the we have capacity to help solve our customers' needs.
Okay. Good well one last one for you just do you have of Capex number for 2021.
Oh, we do have a proved capex number sallie Mae of that in front of you.
Yes.
The capex numbers for $4 million.
For 2021.
Okay. Thank you I appreciate it.
Thanks, Mike.
And your next question will come from Charles Gold with Truest. Your line is open.
Thank you Chris.
Chris just one question.
A lot of Sally I hope you're doing well.
Thank you for stepping into the job and.
Keeping the screen of the core on the.
The uptick and.
Getting the company ready to take advantage of the opportunities that will come with the stimulus and hopefully an interest of infrastructure Bill.
Question involves your title as interim.
Before your title and.
What is the game play and I know you can't at the tip of the exact day, what is the board's goal and having a permanent.
The C E O.
Thanks, Charles and hope you're doing well I appreciate the question.
As you know that's not up to me, it's up to the board what I can tell you is I'm, having an absolute blast and loving every day and working my tail off here and really loved the people of synalloy.
You know as we continue to make progress and obviously I'm a major shareholder.
You know I'll be actively involved in working with the board to assess what makes the most sense for long term value creation.
So there hasnt been a.
The immediate direction given yet.
So the so you're saying, there's the possibility that you could become the permanent CEO.
If the board asks the board.
Third the likes me enough, yes and no.
I'm loving it so it's.
Obviously, you have to I have to perform.
Thank you.
Thanks Charles.
Youre welcome.
Again, if you would like to ask the question Press Star then the number one on your telephone keypad.
And your next question comes from the line of Charles Neuhauser with Meanwhile, investment. Please proceed.
Hi.
You are you are there was a lot of time and money spent on the proxy contest and I assume that you must have had too.
Provide fairly detailed the projections to the bank to get your new credit line of established you've said that you've come into the job and you feel.
Did you see things of better than you.
So it may be.
Six nine months ago, I can't remember exactly what you said, but that was the gist of your comment.
And so I don't understand why you're having difficulty.
Quantifying the.
The margin potential earning power.
Up side whatever that.
You're looking for to make all of this time and effort.
Worthwhile.
I'm sure of $9 stock price is not a lot.
What you would consider a desirable and so the question becomes when the you're going to feel comfortable putting some numbers out.
In the public realm to get people to come to the same conclusions that the.
The company's stock is undervalued in the desirable investment.
Yeah, Charles that's a great question and I've I've been a leader of that you have got to understand and thoroughly investigate and confirm and validate what we believe and if you've read you know the.
The.
The presentations that we that were released last year I firmly standby of those numbers.
Obviously of gateway involved here as our new IR firm, we are planning for.
Brode shows of getting in more investors excited about the business and but at the end of the day, we need to build credibility and I want to make sure that we can deliver the results that we say and once we Sam I need absolute confidence that that I can deliver on those numbers and I don't think we're talking you know.
Yours from now for giving specific numbers and guidance I think we're talking quarters from now so I'm fully committed to getting us to a point, where we can provide.
More future clarity on EBITDA guidance for all of our investors, including myself as the major shareholder.
Okay very good thank you.
Thanks Charles.
Yeah.
And your next question comes from the line of Ronald Brandt. Please proceed.
Hello, Chris and.
Welcome to Cleveland, Tennessee, as you May know I was the former owner of manufacturers chemicals.
And I served as CEO from 2006 until 2011 for Synalloy.
I think are the things that you're that you're doing or.
A breath of fresh air and.
I appreciate your being where you are and are the new board.
One of the comments I wanted to make regarding the chemical business, which as.
You know it's been a solid performer.
Since we sold the business to send all the way in 1997.
We have three types of business toll.
Chemical intermediates the other chemical companies and then to the end users.
The profitability gets better as you go down the line to finally the end users so.
My question is give.
Given the current situation regarding the sales force.
Manufacturers chemicals and Cri.
Are there plans to.
Intensifies the sales force by addition of the some good folks.
It's a very sales and tenancy of businesses as you're finding out compared to the steel business.
We had many many competitors so it's very important that that there's a strong sales effort.
Yeah, right all of that that's obviously a great question and yes is the unbelievable business with I've, probably talked to 15 individuals today of that were employed by you when you own the business and the the longevity of the work force here of the commitment of the work force here and the passion. They have I mean this this is the team.
And it really everywhere I've seen of soon or they have the will to win and it's extremely exciting to be around or a group of energetic people like that but I think you're absolutely right.
We have to have a truly a reinvigorated sales effort within the business. The sales cycle is completely different here. There is a lot of the a lot of process that goes into it from customer acceptance to having their chemists approved product in.
No. There is a long lead time, so there is going to be a renewed effort and customer a new.
New customer growth customer retention and overall customer service that we're going to put into the chemicals business. That's wonderful news.
And I'd love to meet you one day went out of it next time of my down here of love to Yep, Okay that sounds like a good plan I'd love to meet you too.
Lots of conversations with them over the last few months, but.
I look forward the meeting you as well.
Thanks Ronald same here.
Excuse me speakers I'm not showing any further questions. At this time. This concludes our question and answer session I would now like to turn the call back over to Mr. Hunter for closing remarks.
Great. Thank you.
Well, we'd like to thank everyone for listening to today's call and we look forward to speaking with you again, when we report our first quarter 2021 results in May and now I'm going to get back to work everyone have a good night.
Ladies and gentlemen. This concludes today's teleconference. You may disconnect. Your lines at this time. Thank you for your participation.
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