Q4 2020 Savaria Corp Earnings Call
Good morning, My name is James and I will be your conference operator today at this time I'd like to welcome everyone to <unk> Corporation, Q4, and full year, 2020 results Conference call.
All lines have been placed on mute to prevent any background noise and after the Speakers' remarks, there will be a question and answer session. If you would like to ask a question. During this time simply press Star then the number one on your telephone keypad, if you'd like to withdraw your question press the pound key.
This call may contain forward looking statements, which are subject to the disclosure statement contained and severity as most recent press release issued on March 24, 2021, with respect with Q4 and full year 2020 results. Thank.
Thank you Mr. Bourassa, you may begin your conference.
Okay. Thank you Jim.
Hi, everybody.
So and that's on the CEO I wasn't here for the last 30 days I'm sorry, yeah.
First of all Okay, I used to think huge and amenity.
And to be here this morning on it.
And just to speak to you and to thank you.
Yeah.
My accounts, okay, well would not be available debt, we ought to be a company help you with that and my cat six and over one 2 billion.
And next steps up 100 million this year.
And it's quite.
And the neat thing, but net debt is seeing reactivation and.
And if you were not that I cannot do that.
Got you Okay. When you speak with your diet feel right to us and the right.
Judy and then after that the industry put money yoki and buying some shares or and.
The bank Cookie right.
I want to thank you for your wife coffee and we did see it did to the success of <unk>. So that plays the first on the first thing I want to take this money I've said that we do a major acquisition and and you get.
And it was March cookie and we have very high and very happy I was looking at this company for many.
And many years.
And hi, Google and agreed with them that backup your debt.
Damn, Okay that was looking to buy assets.
I'll discuss about that okay, but we finished the game of paid debt rebate.
And.
And I'm very happy about that that would be very happy and very happy by the people that day that we meet that goal and had been scared and so they are great quality people.
And what was wrong with them and me I wish it will eliminate it from us.
Okay.
Was it just bigger February than before.
One thing is not improving as my English was it did what they did.
Thank you, okay cold water flow for your hard work my team Okay, but thank you and you can look at to take this translation and IP.
And so by activity.
And our marketing and the team will work with you with that and you know without working together and I think.
And after that and prediction sebastien and kind of guidance, Peter Aquino, who can look at what price it shouldn't worldwide of heat and eat at best.
And if we do after that typically with Randy a day.
And in North America, that's true about.
Working with canopy, and sat and act and less okay. He's there too.
Together entity and it was very good.
And all together.
And you're doing it that in my guidance so.
Again, thank you very much and speak with that to peak and.
And I'm sure you've got a and that would work to get air Nike Digital is a great guy. Thank you Vin and.
So our adjusted and then and we have for each morning, whereas our Steve our CFO, who is here and we as we set out there and you called out that season.
He was looking for a transaction with cash and to get and make it.
And he was speaking about it you have some question on debt on.
On span a horse on.
Sitting there so that she is sporty and young adults division after that would be without Skus Sobecki my son and.
And he can speak about the integration and see what to add debt.
The team has done tremendous work and debt footage 15, or 20 days since March the weekend day worked very hard to do.
But.
Sure that's it sandalwood Gladys and neuropathy debt would be net fortnight.
And we'll see be more about 'twenty 'twenty two.
But even without the synergies that would be big P and 'twenty, two and the future debt.
So we are very considerate and okay to make that work over why not do it.
And.
I think they are back on good a good result, and you get on Q3, Q4, and two and look good and very very optimistic about 222 axes and I T.
I see your city and not yet.
And then towards so.
And that's good for the question no one and they'll be for the question missed that and add up GAAP to add a little bit there and update went back on and are in 2020.
Actually Steve will provide the.
The financial update myself.
Yeah.
Alright, thanks, Thanks, Nick and thanks, Marcel and good morning, everyone I'll begin with some remarks regarding our 2020 fiscal year consolidated financial metrics.
For the year. The corporation generated revenue of 354, 5 million down $19 8 million or five 3% compared to 2019, mainly due to the economic slowdown caused by the global COVID-19 pandemic.
Gross profit and gross margin stood at $122 1 million and 34, 5%, respectively compared to $125 3 million and 33, 5% for 2019.
The decrease in gross profit was attributable to the sales decline caused by the pandemic, while the increase in gross margin was mainly attributable to a more favorable product mix continued realization of gear them and to lift integration related synergies derived from the corporation's accessibility segment as well as some benefits from the Canadian wage subsidy.
Graham.
Adjusted EBITDA and adjusted EBITDA margin overall stood at $59 8 million and 16, 9%, respectively compared to $55 6 million and 14, 9% and 2019.
The increases in adjusted EBITDA and adjusted EBITDA margin were mainly attributable to a better product mix continued realization of scarab and select related synergies pertaining to our accessibility segment as previously noted.
$6 9 million COVID-19, employment retention government of Canada subsidy and corporation wide cost containment efforts.
Now I'll move on to our segment results.
Revenue from our accessibility segment was 25, $257 3.002 million 20, a decrease of $8 4 million or three 2% compared to 2019.
The contraction in revenue was mainly attributable to the continued impact of the economic slowdown a repercussion of the global COVID-19 pandemic.
While our residential sales remained strong throughout the year, we saw a decrease and our commercial sales, which caused the overall top line to decline for the segment.
Adjusted EBITDA and adjusted EBITDA margin.
Both before head office costs stood at $51 1 million and 19, 9%, respectively compared to $44 2 million and 16, 6% for 2019.
The improvements in both metrics were due to a better product mix continued realization of GAAP into lift related synergies and ongoing cost containment efforts.
Revenue from our patient handling segment was $79 3 million for the year, a decrease of $7 5 million or eight 7% when compared to 2019.
Organically revenue contracted mainly attributable to reduced access to and reduced volume of sales from the long term care market caused by COVID-19, pandemic targeted lockdowns and restrictions.
Adjusted EBITDA and adjusted EBITDA margin for the patient handling segment, both before head office costs.
Stood at $10 4 million, and 13, 1%, respectively compared to $12 1 million and 14% for 'twenty and 19.
The decrease on both metrics was mainly due to the reduced volume of sales and the long term care market as previously noted.
A suboptimal 2020 revenue product mix, and lower fixed cost absorption and our spend business.
This was partially offset by the contribution from our silver Lee acquisition made in Q3 of 2019.
Revenue generated from the adapted vehicle segment was $17 9 million for the year, a decrease of $3 9 million or 18% when compared to the same period and.
And 2019.
Adjusted EBITDA and adjusted EBITDA margin, both before head office costs finished at point $6 million and three 4%, respectively compared to <unk> nine.
And $9 million and 4% for 2019.
The decreases in revenue and adjusted EBITDA, when comparing 2020 to 2019 were mainly due to an economic slowdown and a repercussion of the global COVID-19 pandemic.
Now turning to some financial liquidity metrics. The corporation ended the year with $54 2 million of cash implying a positive net cash position of $4 4 million and.
The combination of strong earnings and for.
For the year and discipline in terms of working capital management and capital expenditures were key and continuing to improve our cash position all while in the midst of the COVID-19 pandemic.
And looking ahead, although it remains very difficult to quantify the continued impact of the current pandemic accurately based on the results to date during the first quarter of 2021, coupled with the cooperations confidence and the strategic integration plan on A&D care and that is underway and strong underlying long term growth.
Fundamentals for our markets management anticipates, the corporation will be able to achieve adjusted EBITDA in excess of 100 million true fiscal 2020 one.
And with that this completes my prepared remarks, and I'll turn the call back over to you Marshall.
Well, thank you very much DRP thinking youll make a tremendous job.
And it's.
It's always easier and we have good number but debt.
And the way a great. Thank you very much and go for the question.
At this time I'd like to remind everyone in order to ask a question. Please press star followed by the number one on your telephone keypad.
And again, if you'd like to ask a question. Please press star followed by the number one on your telephone keypad and our.
Our first question comes from the line of Michael domain with Scotiabank go ahead. Please your line is open.
Hey, good morning, guys Hi.
Hi.
Hi, so going back to the.
The synergy opportunities highlighted and the initial press release, the 12 million and.
And where you can break that out or help us better understand how much of that is cost related.
And how much of that is revenue related I guess my thinking is that the revenue synergies are likely to be realized or sizeable sorry on this deal, but likely to be realized.
You know I think you commented on in 'twenty, and 'twenty, two and beyond and so just something around that please.
Okay.
So this one a day, we true that world and acre 100 million over 100 million and you know, it's coming from some plus and minuses Ross and minor something different that segment that day.
Just the time of the year day, one would be weaker but they are there.
I will go out here, so really a P. I prefer okay too to add we will have more and see about this question after the second quarter.
Okay fair enough.
Sure enough yellow line, so maybe sticking to maybe some of the near term stuff.
The vaccine has been widely disseminated on more widely disseminated and the U S. So far and Q1 and you know, especially amongst and senior population are you are you getting better access to customers and patient handling and at.
At this point I mean.
And maybe just what variables to consider before expecting a full recovery and that business.
And cut off sure Hey, Yeah, Hey, Michael.
Yes, I mean cautiously optimistic I would say.
You'll note that the vaccine rollout has been a bit on all over the place you know from country to country and the U S to your point, yes, they have been.
Quite successful in terms of the rollout to date and.
So in terms of you know what.
What that means for us as it relates to you know accessing long term care facilities for our sales guys and.
Our I guess, our services and installation teams and it.
It is looking better and just looking up.
I would say again lights at the end of the terms on what's been about eight weeks or so give or take where we've seen some improvements there. So I think when we publish our Q1 results. We should have you know.
And a little bit more color as to how we ended the quarter.
And I would say January and February still kind of and the misfit, but as we kind of get into March and we finish off March we're looking to have a strong finish to the quarter and we should be able to provide a little more color as to what the rollout looks like on our Q1 comes out and May well.
We'll see how it progresses through the spring, but yes, it is improving and so throughout 2021, we should see a pickup in volumes there from our patient handling business.
Got you and if I can squeeze and one more.
Maybe a little bit of detail on the margin performance and patient handling from Q3 or from Q4 into Q3, and just let it got a little bit better there and maybe just your thoughts on how to think about margins and our business and 2021, given from the higher resin prices and and the potential impact to the phone product.
I'm sure that the margin performance there in Q4.
It was quite strong as you noted there was a big jump from Q3 to Q4, I think were at 15, and 15, 7% and the fourth quarter and we did have a strong.
You know strong December and especially.
Especially in Canada. So there was some good good bed sales there in December. So hopefully also had a very very strong December. So we had a good ended the year I would say within patient handling.
<unk> to that margin improvement that you saw on the numbers.
And going forward.
Combine ourselves because we'll be reported our patient handling along with handy care going forward.
You know handicap, the lift up program that they implemented last year.
I would say at a pretty dramatic effect on the margins within their patient handling segment and they ended the year I think it was 13.4% or so within the patient handling business and the fourth quarter and that was kind of an uptick from their Q3 results where they were over 11%.
So I guess when you think about is combined.
Somewhere in that 14% is something that we would like to aim for it'll depend on again, how kind of volumes pick up and how that fixed cost absorption is over to be achieved over the next few quarters, but that's something that we would strive for is to get back up and on an annual basis and that kind of 13, and 14% and building on that as volumes increase over the back half of 2021.
Gotcha and any consideration on the resident Mexico, just in terms of and a potential margin impact.
And the revenues again, it's tricky because as we exit the Covid you know how that growth is going to materialize.
It's difficult to predict and.
And again the rollout is a it's very different from whether it be country to country and state to state and.
So you know were some states that are kind of into more advanced in terms of their there and Mike.
It's called advanced on their vaccine programs and also in terms of their loosening of of of certain moves.
Movements and restrictions, so there'd be and facilities or elsewhere.
And it does have an impact and again, our patient handling business. We do have a big portion of it is here in Canada and as I think you will test and Canada, the rollout hasn't been as fast and fluid as it has been and the states. So that's also something to consider here that we do have a pretty big Canadian business with and patient handling as well.
Got you I'll leave it there guys and congrats for for all the achievements and the last several months.
Thank you very much.
Yeah.
Our next question comes from the line of Zachary over shed with National Bank Financial go ahead. Please your line is open.
Good morning, everyone. Congrats on the quarter. Thank you.
I was hoping you could give us a little bit more color about the progress on integration, thus far concrete steps that you've been able to take and the last 20 days or so given the quick closing.
That's the best St John to answer that one.
Sure Zach.
She has to basically and just just had a 20 day is very sharp and so far what we did a bit that we have there.
Create some commodity for the extra GBP and on a patient and Lee.
And then to start and just kind of cymbalta and different potential and what does the timeline would be in charge of debt for sure. We can and do everything and the same time, we have to go step by step and.
But the most important and as people are very happy to contribute the bring and antibody or to the table. So I think it's a very good start and we are.
Talking about cross selling opportunity and especially in Europe.
So we are training and the people and that's a start and whats interesting is getting them and thought was already a customer a and b carat and here you can pull out read and all that the cheddar. So day on discussing Ikea I'll get it can work more together.
And the delisting from the company is happening and mitigates happening tomorrow. So that's a that's part of the integration as well and one thing importantly, we are confirming the first 20 days that we are going to manufacture some curved stairlift into a factory and Toronto.
And so that's and that's something that should start in Q4 and that will be a very big because at the and right. Now we are shipping each total if two by ear to North America, and so we are right.
Spending up and when you buy and each year.
And the most important that will give us a very good speed to the market to offer a tremendously lead time.
And time to our customer. So we have we're going to do debt with a lot of automation and for drawings from machinery, so and that would be.
Interesting to see what I paid on debt and the future alright, so on great starting point and day and I'm sure and the next few quarter, you will see a dollar and whether it's me and you can see the road to 2000 20 billion is standard.
That's very helpful. Thanks in terms of your sales teams will there be a bit of a ramp up as they're trained on the new product lines are are they familiar enough already.
So it'll be fairly a fairly smooth transition.
And that's.
And basically a Z.
Well shall we assume that that would be a transition and it takes time and would pick. An example of the Giulia sake. If we go on a retrofit market. He was the final customer today and my thanks to a true six months, but if you're talking about on new construction is one to two years. So I wouldn't be current theme on the excited about the relief and you have up and I guess the answer is yes, but we have to go to the bank.
First we have to train our sales team after that the dealers on the Diavik location and had been treated with we'd get some marketing going so it's just that's why Marcel was saying 'twenty 'twenty two we should start to see a lot of cross selling because it takes time.
And overnight and but different.
And Fortunately is fantastic and anything from the Sterling from North America I'm sure some of our dealer.
And the knock on the door over and D care also vary up and cause they want maybe 12 access but the first step is to train the people.
Yeah and Sebastian.
Concrete geography.
Again, I put said your attention and I'll tell you that we will be I think a day pledget keep on selling okay, and you wrap up our unit, okay, and that's a huge market.
Well, we just received all day poor at two in Germany, and Italy, but.
But and we are left with and you cared to have so many contacts per day and they.
And then it goes why they are doing and.
And if we came up a path to a week or two will be and who would do okay.
A major step in our EBITDA oaky and 22, okay, because the paywall will sow project of Saturday and unit.
And that's why I'm doing it right now.
Sumit.
Okay.
No.
We update that that want to do to make on debt.
Great color, Thanks, and just one last one from me.
In terms of your leverage comfort zone, following and transaction on health care, obviously, a big bite and a required.
And debt, but you guys were talking about.
Opportunity for growth projects and checking transactions from your press release and I'm wondering if your leverage comfort zone and smoothed out.
Okay.
I'll take this one more so I mean, yeah.
When we close the deal to hinder your deal we're closing about three six times.
Leverage on and yes, we do have.
Additional credit available to us for small potential tuck in acquisitions or future a future growth opportunities and our focus is on Andy here and to integrate that business.
First and foremost I mean, the three points on at three six times leverage that we are closing and that is higher than where we have been clearly historically and <unk> and higher than where we are and where we'd like to be so our focus is going to be on deleveraging that fairly quickly.
Yeah and James.
The debt again, I increase my volume that you're very welcome.
Just to add that the guys seen for years and years and years that that's over two okay that I am not comfortable but suddenly they were at $3 68, Nikki and.
And I sleep very well every night and since March 5th Okay. Why are paid because I am so confident and the team down day head on P that we meet that day will speak and speak Okay, and they want to act okay and.
We know that the segment that are sitting there okay.
Excuse me, but cannot be worse, okay. So it would be less debt there.
And.
And in the project and we know that it will be minimal, but it would be minimal and then 22% range. We can really report too okay. So.
And I am very optimistic that we will see and 22 is why okay I can't tolerate it and.
And three six appeal on at three eight and Mickey no plug and because we know debt.
At this cash flow at day 100 million, but when you would be at day, one, Turkey 150, and a couple of years okay.
And that they will see that we can.
And be more to debt, okay, and we will be debt.
That's a day at two P, maybe and course, IV and shocking, but it's nothing because we had the ex pension to do it's why with over 100 million debt in excess of what we need to.
To be sure that we can take some nicorette is total acquisition are.
And we make expansion and net in Brazil.
On a go right now, but we'll wait and debate but.
It will go day okay.
Population over 200 million.
So what would be day, rocky and Wuhan.
And bring the Pea and our Thursday at least because.
The six and some of these current Stanley is should be need americare debt with anybody.
And freight is expensive and we'd be more expensive and the future.
So what do we buy and we go and China, We will have two to two and the equipment to make the coast David directly on the territory and example, we go in and.
In Brazil, and I and colors on Brazil, just wondering I don't know why but at six to eight and the Bcl 200 of millions. Okay. If we go a day with a machine to it so.
So we see that the even and will have net modular, but we can deliver something back and treaty.
And so try to be modular and we don't need the pizza Guy and he wants to put that no. Other Iraqi you don't need to San Fran and the standard okay.
The next day, so it must be arity, when do we add the deep with me on place Okay.
It's even better because we had a better drawing on the steps that he then if it's a multiyear project. So it's why I'm. So enthusiastic about that and how does that look at that a major investment because right now we're making major win and we can do so much improvement, but so much and.
<unk> debt will come from greater on debt.
Okay.
Right and so it's really appreciate it I'll turn it over.
Thank you.
And again as a reminder, if you'd like to ask a question. Please press star and then one on your telephone keypad. Our next question comes from the line of Nick Agostino from Laurentian Bank Securities Go ahead. Please your line is open.
Yes. Good morning, I guess, just wanted to get a little bit more color on the EBITDA target for 2021, you mentioned.
Q1 performance and you also highlighted growth prospects that you've seen to date and I'm. Just wondering if you can provide some color as to what that performance has been like and where the growth prospects are coming from I guess for <unk> for the first three months any any color you can provide there.
And specifically on the accessibility side of the market what's driving.
And the performance you are seeing thus far.
And maybe Steve or somebody chicken complete debt that did advocate.
And Bob Zelnick after that the cash.
And I should say, we have very strong like nature to them and.
Got it and.
And as an example, yeah.
And I was.
Looking at the booking a day for residential elevators okay.
And our.
Our backlog is one that and did it and <unk>.
And so we're very busy very busy on debt and I can't get too and we'll be good day of the year as I mentioned, okay, I see because I looked at my that's okay. So I see debt on span okay more on your U S sided T day begin to have more and more.
Ordered and that they were adding eight last year already.
So it's very it's very good and I'm very proud of that so good work for the team down there.
So that's our money and you don't Gotta went bad debt.
And.
And what was Cotwo as a stock for the first quarter. Okay. Because they are very concentrated on commercial and unsub at Yaqui ear and two auto Okay. We are.
We have a good mix of D. A.
And to show and that has been true and then they are more and.
So what the commercial will come back okay.
It was up in schools and school and the school is closed okay. Neither on.
And blends two and a true, but and I think everybody is safe and maybe I could platform okay.
And they will wait and so so it was coming back. So we have so many so many and they still think are right in line, okay that debt.
Will that be what it will that be nickel and had been soon what is soon okay.
No that's a good day access to be day.
There is growth in the people once they own and.
And people located state nowhere net Gui to just aging out shortly and we know what's happening on that okay and.
Yeah, Seth and say.
Okay.
Our I was hoping that you will stay with assets.
And that's that's that's okay too to have this kind of the debt.
And that we keep more and more so it would be running but I I see other coming soon and that's why I'm very optimistic but it's coming.
It's coming when it's gonna be exactly and on and it's been a one year. Okay. We know the first quarter is always so okay. So that's that's the stomach.
So it isn't the same thing here, but.
And we have video and music IP that we would do and.
Later quarter, Okay, you will see exactly what that I mean, a key waste coming which quarter Iraqi shrunk and what equals that big So after Q2 I will give you some.
You will see some very good result, and you will see it the way it's got me he and decrease.
Okay I appreciate that that's great color.
If I could my next question would be just on ban conversion or adaptability.
What I think last year, you announced the restructuring of that unit I believe the goal was to get to somewhere around 10% EBITDA margins can you maybe give us an update.
And where you are today and achieving debt restructuring.
Do you have and next question.
But seriously I imagine and Fannie Mae F N B cologuard and with channel K.
And even a day like and could that cause.
I don't know that Google is true at eight o'clock updated and cannot go out.
Very bad period for people and whichever very badly and if you need it that Manny.
And what he's been the sweet spot and you heard Julie to Quebec and.
So it's it's not busy it wasn't that easy, but I think we are looking this year on each make a breakeven.
Okay. That's it from me thank you.
And connect.
Our next question comes from the line of Louis <unk> from <unk> Capital and go ahead. Please your line is open.
Good morning.
Good morning.
So today I'm here on behalf of Philip and Crumbly.
My first question relates to the Viewless and <unk>.
What are you indicated that you aim to reach sales of 600 units per year by the end of 2023.
Can you comment on the progress achieved on that front in Q4 and Q1.
Yes, I would come in and debt, but here I am and expert here, okay. So betsy.
Thank you.
So basically yes.
And we said earlier and that he would like to do 600 units by 2023, and I would say right. Now we are probably at the base of a 150 and I think we'll exit the year at a base of 200 units.
Our year and defense deal with C and we'd do another marketing and that type of activity would do and that type of R&D to improve their products and now it is <unk> compliant and for Europe.
And I think anybody cares going to fewer bids Dallas and just the potential for.
So that will be very interesting and got them and <unk> will start to have a good day push and Germany.
Listen and tell you, we're working hard to make some assays. So I think really where you will see that we will get there, but again and Julien. It's a product that takes time because some time on can you go and some are circumcised Alice at night.
And so many months or years of construction. We're also doing some conversion on some multi unit project and we measure a cold. So we know a bit that we are on the right trend to achieve our targets in the next day by 2023.
And that'll be our answer unfortunately.
Thank you that's helpful. Hum on my next question in the past few months have you seen cost inflation on raw materials, such as steel and industrial and how are you aware inflation will get what accelerates can you talk about the levers that somebody on to mitigate the potential impact on its margin profile.
Let's see.
And so they can see the unfortunate and there has it been penetration I think it's hard to do I'd like that takes from fire. We are kind of like here is that prices are really from just table, we have a good contract with our suppliers and.
And we have some inventory all sorts of incentives is going up and why.
It was on cost saving project to try to offset some of the increase will do a lot of parts and also basically is due to raw material, which is everything we are seeing on the sheet metal and from time to time, and we always do some smiling and could increase to our customer. So I think if there is inflation.
And what time would be able to push it out to our customers sweat and thank you should be able to see some.
Q2 on the margins going forward and maybe there will be a small bump quarter, but we don't see a big change and going forward.
Thank you and that's it for me.
Thank you.
Our next question comes from the line of Michael do made with Scotiabank go ahead. Please your line is open.
Hey, Thank you for taking the follow ups.
And so prior to being acquired I believe and handicap it was and the process of expanding its physical footprint and North America.
You know develop themselves stair lifts.
You know given you have some floor space and just wanted to get your sense of thinking in terms of how you're going to build that that new capacity and.
And he sensitive timeline.
And then maybe if I can just squeeze in a quick follow up there just what capex expectations should be in 'twenty, one yeah Sebastian.
And so basically day yet.
Footprint for gross to net was on the agenda and the cure on base succeed and sort of opening a new factory and we have 15 factories and we have decided to make it and Toronto with the team on Wednesday cure basically and now we're looking or and layout and the answer is getting done and.
And we expect by Q4 to be and production that's on target.
In terms of Capex, and Steve and you want to that extent and before we are and from a capex grateful It is true company.
Sure. Thanks.
Typically we see about 2% to 3% Capex run rate, that's our normal range, but the underlying business for Saverio and we have a few projects and the pipeline. This year for for handicapped us who will be coming in a little bit above that for 2020, one, but but afterwards, we expect to get back in line with sort of our 2% to 3% typical run rate.
Perfect. Thank you guys.
Thank you Michael.
Our next question comes from the line of Derek Lessard with TD Securities Go ahead. Please your line is open.
Good morning, everybody and Marcellus path back on our company the pre lets pause like so many of the east zone. So just.
Couple of questions from me.
And again on the integration you've had some time now since you announced the deal.
And I know you've put out your synergy target and I'm not expecting you guys to change that but I was just wondering if.
If you've been able to identify.
Other areas or.
Or items that could maybe make your original estimates whether it's on the timeline or amount seem seem conservative or is there something thats got and you even more excited and then when you first announced the transaction.
Uh huh.
And it makes.
Sir your debt at.
<unk> asked me the same.
Same question, Okay Africa too.
Okay and would it be able to make and it and Sarah K Mart Girenko day based on some number now is just you know some some from golar okay. Some.
And you know something I believe for a K to I can't answer to you, Okay. What's a little less of what's on the I preferred debt and give you that this is coming because we add some stats update that for us Okay. What is coming.
Okay, that's fair and.
The last one from me as I was wondering if you guys are able to and you've quantified and the past maybe the major buckets that drove the EBITDA and the quarter, whether it was the wage subsidy and the government are synergies and cost containment.
Steve you want to take this one.
Sure Yeah. So we did.
We did have a few of those that you mentioned, we had the continued garvin to synergies. There was some there was also some co.
Covid.
Ladies and wage subsidies come through it as noted.
And we did have.
Continued cost containment efforts that we've been seeing and the last few quarters a lot of that with just range.
Reining in spending a little bit and tightening the Buffalo and when it comes to obviously travel and discretionary spending.
So really it's a combination of those.
Those of those factors.
Steve are you able to what was the I guess the Covid contribution.
For the year the on.
Wage subsidy you mean.
Yeah, sorry in the quarter, yes.
And the quarter it was $2 5 million.
Okay. Thank you.
And there are no further questions in queue at this time I'd like to turn the call back over to our presenters.
Okay Joe.
James Okay. Thank you very much and thank you everybody to be that this morning. Thank you to my team and.
See you after the second quarter, So I see you in August.
And ladies and gentlemen, and this does conclude today's conference call you may now disconnect.
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