Q1 2021 Consolidated Communications Holdings Inc Earnings Call
Yes.
Good morning, My name is tamika and I'll be your conference operator today at this time I would like to welcome everyone. Consolidated Communications first quarter earnings Conference call. Please be advised that today's conference is being recorded.
All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. If you'd like to ask a question. During this time simply press star followed by one on your telephone keypad.
If you would like to withdraw your question press the pound key.
Thank you I will now turn the call over to Jennifer Saudi Senior Vice President of Investor Relations and corporate Communications, Jennifer you May begin your conference.
Thank you and good morning, I'd like to welcome everyone to consolidated communications first quarter 2021 earnings call on.
On the call today are Bob you del President and Chief Executive Officer, and Steve Childers, Our Chief Financial Officer.
Bob's comments today will highlight our strategic initiatives and progress with our fiber build plans and Steve will provide details on our first quarter financial performance and an update on guidance for 2020 one.
Following the prepared remarks, we will open up the call for questions before.
Before we proceed I will remind you our earnings release financial statements and earnings presentation are all posted on the Investor Relations section of our website at consolidated Dot com.
Please review the Safe Harbor provisions on slide two of this presentation. Today's discussions include statements about expected future events and financial results that are forward looking and subject to certain risks and uncertainties.
A discussion of factors that may affect future results is contained and consolidated filings with the SEC and our 10-Q will be filed tomorrow.
Today's discussion will also include certain non-GAAP financial measures. Our earnings release includes reconciliations of these measures to the nearest GAAP equivalents.
I will now turn the call over to Bob you do.
Thank you Jennifer and good morning, everyone and we're excited to be with you today, especially pleased to update you on the early phases of our gigabit fiber growth plan, we have never been better positioned with a stronger balance sheet, a fully funded growth plan and our strong first quarter result to begin and investment here.
First quarter Mark the official start of our transformation as we set out to achieve a five year plan to upgrade at minimum $1 6 million locations. This will result, and more than 70% of our total $2 7 million addressable homes and businesses across our footprint.
Available to have gigabit broadband speeds or higher.
We're off to a great start having upgraded nearly 46000 pass things to gigabit fiber capable services in first quarter to put this into perspective, the first quarter number of fiber passing is upgraded is 20 times. The number we built and all of 2020, we're making great progress on fiber builds and network upgrades and I'm proud of what the.
<unk> accomplished and first quarter.
Our first quarter results reflect strong operational performance and execution, which produced stable revenue and a very fast start to our fiber builds and starting with our consumer channel broadband revenue grew two 6%.
And this is the eighth consecutive quarter of year over year broadband revenue growth. The consumer data <unk> grew 7% and we added more than 3800 fiber broadband connections a 10 times increase over the same period last year.
Our build rate with our build rate and first quarter. We are on track with our overall plan to upgrade at least 300000 locations and 2021 as outlined on slide six of our Investor day.
The gigabit fiber upgrades.
We're primarily in northern New England, California, and Texas cruise constructed 770 miles of new fiber, just and the first quarter, placing 288 fiber count or larger cables to meet the high capacity needs of our consumer commercial and carrier customers for years to come.
Our near net regional fiber networks provide for very attractive cost per passing for first quarter, we had a cost per passing of approximately $350 and it's in line with our expectations.
These early upgrades are very attractive and benefit from a large amount of aerial fiber across.
Our northern New England markets.
We believe this multi gig symmetrical nature of our fiber to the premise technology delivers a differentiated customer experience. Our go to market strategy has been meticulously planned out we will offer easy to understand packages attractive pricing and a stellar customer experience all to create a truly differentiated service.
Offering we're.
And we're excited about the many benefits these fiber services will provide our customers and their communities.
And the first quarter, we launched new fiber speeds and pricing tiers and upgraded markets customers can choose from three tiers of service was simple and transparent pricing structures. We also launched a dedicated.
Customer care channel for our gigabit fiber customers and kicked off a pilot of a new premium tech support feature we have streamlined our installation process and continue to reduce the intervals between customer order and fiber broadband installation to less than five days.
We are focused on delivering the best and home experience possible using the latest Wi Fi technology and advanced yet simple to use troubleshooting tools, our investments and our digital transformation projects will give our customers new self serve options, allowing them to do business with us and the manner, which they prefer.
And while it is early we're seeing a very positive penetration rate in our recent cohorts or recently built and neighborhoods that are in line with our expectations and similar to our previous fiber builds and New York and New Hampshire, and comparable stages is a powerful combination of delivering not only the fastest symmetrical speeds, but also a <unk>.
<unk> formed customer experience keyed, our value proposition for our new fiber services.
We have proven experience with public private partnerships and have completed seven already and are well positioned to take advantage of any additional funding to expand broadband into rural America over the last three months. We have won bids for 13 additional municipal partnerships and dozens more in the planning stages not to mention our track record with state and fed.
Well programs simply put we understand the funding sources, we have the right relationships and we have the infrastructure in place to build fiber at a scale and at a lower cost when additional dollars become available.
Turning to our commercial and carrier channel I'll begin by recapping our strategy.
Both of these customer groups leverage our best in class IP or native Ethernet core, which rides are robust fiber networks.
Our commercial go to market strategy is based on leveraging our network and service experiences as we grow data and Ethernet revenue.
Our sales teams are focused on network and we utilize our solutions based sales approach approach.
Many conversations with prospects begin with technology and discussions around their business challenges, we provide simple solutions for these evolving business opportunities through our experienced sales force and we work to become a trusted adviser for our customers.
We have and expanded product portfolio, which includes best in breed partners like below cloud Palo Alto, Siena, and Cisco, which supports our ability to provide end to end solutions. Our network reach solutions based sales approach and strong local presence are key differentiators for us and the commercial channel.
And there is a strong demand for our pro connect unified communications platform as demonstrated by revenue growth of over 7% and the quarter.
As businesses leverage this benefits and flexibility of this service across.
Office and remote employees. We are also seeing increased demand for switched Ethernet services and SD Wan.
As an example, we recently won a contract for a 69 sites School network and Minnesota. This five year $4 million contract includes dedicated Internet and managed security services and we won this business based on our ultra fast reliable internet connectivity.
As we build out carrier grade capacity, we increased on net buildings, 11% year over year more on net buildings mean more opportunities to win business, our strength and capital structure enables us to support this channel better than ever before.
Moving to our carrier team. This channel continues to be very active on deals of all sizes as we leverage our core regional fiber networks to create and capture regional and national carrier demand as well as the emerging <unk> network opportunities.
The carrier product mix like commercial is weighted towards Ethernet and we are seeing more interest and carrier grade wave solutions as well.
Carrier team is doing a great job of up selling on any opportunity and has a solid success with 100 gig upgrades.
Our primary differentiators within the commercial and carrier channel or the experience of our sales team and our ability to be nimble and proactive with reliable solutions that we can deliver and a timely manner. It.
It was cleared during the height of COVID-19 customer decision, making was slower and businesses were positive and delaying some of their network upgrade plans. We are optimistic about business recovery and remain focused on targeting the vast majority of our sales on network. This correlates to higher margins increased upsell opportunities and greater ability to ensure the best customer experience.
<unk>, which ultimately contributes to higher customer retention.
I will now turn the call over to Steve who will provide more insight on our first quarter 2021 financial results Steve.
Thanks, Bob and good morning to everyone and we're pleased to report today on a remarkable start to the year. In addition to sharing our strong Q1 results. I'll also update you on a couple of recent refinancing and I'll also reiterate our 2021 guidance our first quarter financial summary can be found on slide four of our presentation on.
Operating revenue totaled $324 8 million for the quarter and was down approximately.
Approximately one quarter of 1% compared to a year ago, adjusted EBITDA totaled $126 6 million down three 8% and was in line with our expectations as we start to ramp our fiber expansion plan now and looking at revenue results commercial and carrier revenue totaled $144 three.
And in the first quarter down $2 7 million.
Or one 8%, primarily due to equipment sales and the timing of construction projects data and transport revenue totaled $90 3 million and was up approximately 1% and the first quarter. This compares to the 2% growth we achieved last year, and which is still our target for 2021.
Voice revenue declined $1 4 million or three 2%, which is consistent with improved voice trends, we experienced throughout 2020 <unk>.
Commercial other products and services revenues declined $2 million driven by a decline on a pole attachment revenue and lower equipment sales, but customers who held off on equipment purchases purchases in 2020 are starting to Reengage again, especially within the medical sector.
Now turning to our consumer channel revenue totaled $123 million, which represents a year over year decline of two 7%. This decline is within expectations is primarily driven by voice reductions.
Consumer broadband revenue was $65 8 million up two 6% and represents our eighth consecutive quarter of growth on a year over year basis.
The consumer data on <unk> in the first quarter was $55 24 up 7% year over year, we expect to continue to grow data on <unk> as we increased speeds and upsell customers, especially as we roll out fiber to the Prem one gig product.
Consumer voice revenue for the recent quarter was down six 4% or $2 8 million from a year ago. Our increasingly competitive broadband offers combined with measured rate increases are contributing to our ability to sustain the improved revenue trends we realized in 2020.
Video and video revenue, which was down $2 3 million and on a standalone basis video slightly negative on a margin basis, given the accelerating and increases in content costs. We are capping our organic video services and are focused on retaining the high speed data customer relationship as we pursue new and.
And in demand streaming partnerships. We believe this strategy will meet our customers viewing preferences, while allowing us to avoid constant cost with no capex spend.
Network access revenues totaled $31 6 million up slightly from a year ago declines and special access were offset by an increase and the Universal service fund revenues driven by higher rates during the quarter.
Subsidy revenue was down approximately $1 1 million due to lower funding from the Texas high cost funds and the first quarter. The mandated reduction and state funding is under review, but the Texas PUC and we expect a revised order within the next week or so and we are optimistic that funding will be restored and close to previous levels.
Other products and services increased $6 2 million due to $6 to $6 5 million and non recurring revenue with network builds for public private partnerships. These relationships allow us to partner with these entities to deliver enhanced and increased broadband services.
To date, we have completed seven builds with approximately 14000, passing and currently have five more projects and progress.
Now turning to operating expenses, excluding depreciation and amortization operating expenses totaled 200, 200, $210 8 million and increase of $5 3 million or two 6% overall expenses would have declined $2 $7 million and normalizing for the onetime PPP build cost and the <unk>.
Start up expenses related to our fiber expansion.
Cost of services and products increased $6 2 million, primarily due to costs relating to the public private partnership network build that I just mentioned combined with the added expense from the Universal service fees driven by the higher factors within the first quarter and as a reminder of the Universal service costs are basically a pass through to EBITDA neutral.
On a cost declined 967000, or 1.4%, primarily due to a client and employee salaries and benefits as a risk as a result, and a reduction in head count and the current quarter advertising expense increase in conjunction with the promotion of our new fiber speeds.
Net interest expense for the first quarter was $48 4 million and increase of $16 3 million from a year ago. This change was primarily as a result of our October 2nd global refinancing and the receipt of the $350 million initial search like strategic investments interest expense increased $5 $6 million due to the higher <unk>.
Mix of senior secured notes and our external debt structure as well and see additional term loans in the quarter. Additionally, non cash interest on our search like note combined with the amortization and deferred financing cost and discounts totaled $10 2 million I'll provide an update on our go forward cost of capital and just some debt.
Additionally on March 31, we recognized a non cash loss of $57 6 million related to the increase and fair value on the contingent payment right to certainly upon receipt of all approvals and the completion and the second close and the searchlight transaction.
We expect which we expect to occur and the third quarter. The CPR will be converted to common stock.
Cash distributions from the company's wireless partnerships totaled $9 4 million and the first quarter down 700000 from a year ago.
As we stated on our last call, we expect wireless distributions to be in line with past annual run rates and and <unk> and in the range of 37% to $39 million for 2021.
Adjusted net income per share, including the $6 3 million new shares common shares issued as part of the first closing with search like last October was 21 per share compared to <unk> 23 per share a year ago.
Capex was approximately $76 million and the first quarter, reflecting a higher level of spending supporting our fiber network expansion project and investment and digital transformation and technology.
Now I'll update you on our capital structure, which is outlined on page seven of our slide deck. As a reminder, we completed the global refinancing last October the extended maturities improved leverage and increased liquidity.
The result was a fully funded build plans and a much stronger balance sheet based on a recent favorable market conditions. We continue to take action to improve our overall financial position and reduce our cost of capital and January we raised $150 million under our term loans add existing terms and March we issued 400 million.
And senior secured notes of 5% due 2028, we used those proceeds to pay down term debt in conjunction with the bank re pricing on April 5th we completed the bank re pricing, which resulted in a 150 basis point improvement as we were able to reduce both the coupon and the LIBOR floor. This results in.
$18 million and annual cash interest savings and additionally, since the $400 million Paydown on the term loan was applied and the order of the next scheduled maturity, which effectively eliminated to 1% or $14 million per year principal amortization from the lines of this facility as a result of these transactions we have.
And we reduced our ongoing cost of capital and <unk>.
Contributed over $30 million and incremental incremental cash flow to support our growth plan.
With respect to liquidity, we have over $325 million of cash on the balance sheet and with the Undrawn revolver, we have approximately $550 million on liquidity and.
Additionally, we expect to receive the $75 million from the second stage of investment from certainly in the third quarter. Once we secure the requisite regulatory approvals.
The strong cash and liquidity position further reinforces our fully funded long term value creation plan.
I will now review and reiterate our full year 2021 guidance, which is outlined on slide nine.
Capital expenditures are still expected to be and a range of $400 million to $420 million compared to prior year spin rates. This guidance guidance fully reflects increased investment levels driven by our bills and success based capex for our fiber expansion plan.
Our adjusted.
EBITDA is still expected to be and a range of $500 million to $510 million cash.
Cash interest expense guidance, which was updated with the reprice of the term loan as previously discussed is now expected to be and a range of $130 million to $135 million.
And.
We expect to pick the searchlight investment at least through 2022, and we have the election to do so through 2025 cash.
Cash income taxes remain unchanged and are expected to be and a range of $2 million to $4 million.
We've had a very productive and exciting first quarter and we're extremely well positioned to execute on our transformational fiber expansion plan with that I'll now turn the call back over to Bob.
Thank you Steve.
Finally, I'll provide a brief update on the second closing that Steve referenced with Searchlight capital partners you can see the investments steps associated with this partnership on slide eight of our presentation. This week, our shareholders approved the issuance of shares to search like as part of this transaction, we expect to obtain the applicable.
State and FCC approvals and third quarter, which will then trigger the remaining $75 million of investment with.
With our strong balance sheet and strategic partner and search like we are building and on an excellent platform for the future and we're very focused and on our way to becoming a fiber <unk> broadband company.
As we enter into the next phase of our growth and transformation our strategic priorities continue to guide our work as outlined on slide 10.
Our number one priority is accelerating our favorability to scale and grow broadband services and the markets that we serve we will also leverage our fiber assets to continue to grow our commercial and carrier data services and we're focused on transforming the customer experience to make it easier for our customers to do business with us we're very confident.
And our plan and ability to deliver a different differentiated superior fiber product offering with an excellent customer experience and digital capabilities.
These priorities put us on a path to return to top line revenue growth and 2023 and this return to growth is extremely exciting. Our plan is fully funded and we are executing on our fiber expansion growth effort as we build momentum and become a stronger fiber based broadband provider.
In closing I want to thank our dedicated employees, who work hard every day to serve our customers and execute on our bold growth plans and our path forward is all about building long term sustainability and value for our investors our customers and our employees and we have a strong stable business a significantly improved financial.
<unk> position and our growth plan that is transforming our company and the communities that we serve I couldnt be more excited for what the future holds for us.
Tamika I think we're now ready to take questions at this time.
At this time, if you'd like to and I would like to remind everyone in order to ask a question Press Star then the number one on your telephone keypad, we'll pause for just a moment to compile the Q&A roster.
Yeah.
Okay.
Your first question comes from the line of Gregory Williams with Cowen and company.
Great. Thanks for taking my questions you are off to a good start and I had a couple of questions on that good start with fiber to the home.
One you did reiterate your capex, but it's really great to see that your cost per home passed is coming in pretty low at $350 per home.
Or do you see that trajectory going.
And I imagine you just dealt with the low hanging fruit so to speak in terms of homes and so as we think about the next tranche of homes and the next few quarters, where do you see that trajectory in light of your Capex guidance.
And as a tangent.
And I know, it's early and you have your early learnings, but are you seeing the cost to connect the success based capex the drop the <unk> coming in and.
We're on that $750 level.
And then my last question if I may is on the cadence.
And we built out 46000 homes that leaves and another 154000 to go for the year, how should I think about the cadence.
Is it bulkier and the warmer months and then maybe as it cools down and the fourth quarter slowdown or is it sort of a linear ramp our steady ramp up thanks.
Yes on Greg Good morning, and thanks for the questions.
Let me start with the Capex.
First.
And both the castings and success base.
Youre right I mean, we're dealing with the lower hanging fruit, if you will and the places that we could move most quickly and order to get the debt.
And machine running.
And so we're we're going to see that Capex number creep up as we get into underground, especially in northern New England, where we know of some duct work and and repairs to do so I would expect it to trend.
Towards the the.
$4, 50, and northern New England, and probably between 500, and and $5 50, and some of the areas, where we have to do buried work, but on the average it will it will move towards that 500 number as we progress through the year there'll be some that are 700, 800, and there will be some that are and the 300 range, but it will average out in that.
500.
500 range I think towards the end of the year on the.
Success based side, we're actually because we don't have all the all Wi Fi gear that we want from an experience perspective, we're in the four to $4 50 range.
On the install.
The installs are going fairly quickly.
It's a lot more efficient of and install it's primarily plug and play and and so we're looking at ways.
To continue to.
Tweak the talent pool that we that we put on that and so right now we're using high cost labor to make sure.
The more technically proficient folks to make sure that nothing goes wrong and we can improve on the process, but as we.
Smoothed that out I think there'll be higher equipment cost with more Wi Fi components and it'll.
Increase above the 450 range that we're seeing right now.
So those things are well within our expectations.
On the cadence.
I think the early learnings are.
That we can ramp construction fairly quickly.
And where we're feeling real good about first quarter and we've got roughly 70000 planned and second quarter and and then we will ramp through the end of the year because we can do some construction.
Through the winter months, as we've proven and first quarter and northern New England, and it will just be weather dependent and the fourth quarter to a certain degree, but we have other markets that were building and like Texas, and California, where we can continue to get and passing and.
And the and the tougher winter months, so the portfolio, serving us well the only risk I see.
Is availability of materials, and so far we've been well positioned for that and.
And worked ahead with our vendors and haven't seen that impact our build rate or forecast for for 2021 at this stage. So I think I covered all III.
You did thank you great color.
Your next question is from the line of Eric Loop, Joe with Wells Fargo.
Eric Good morning, Hey.
Hey, good morning, everyone and thanks for taking the question.
Yes, I was wondering you mentioned the supply chain shortages, we've heard about that particularly on the chip market, Bob about and concerns building. So you've had and it sounds like you haven't seen anything yet, but do you see anything on the future that could potentially impact the trajectory of the build pace or.
Do you have enough purchase orders and that you feel pretty well insulated at least through the end of this year.
Yes.
Great question Eric.
We feel really good with the purchase.
Orders that we have out there.
Pretty well planned out through the end of the year.
There's always a chance that someone won't deliver on what they've committed to or they'll delay of delivery and and so far because of the scale of the build we're doing and and our relationships with suppliers.
It's it's.
And we're feeling pretty good theres been a little bit of a challenge on fiber with resin now becoming a day.
<unk>.
Commodity.
And that's hard to get and that makes plastics and chief and so we're hearing that.
It could affect slice cases, and things like that but but we feel like.
We're in a good shape from a supplier perspective on the chipset issue.
And we put those electronics orders in very early and and we're seeing the delivery. So far hit on target. So I don't foresee it affecting us for for this year as long as the pose.
And are committed to deliver on time.
Okay, Great and then just one more for me.
Maybe you could talk about Steve.
<unk> phase two program I believe that sunset at the end of this year can you just kind of remind us any impact that will have as we kind of roll on model three to 2022 and on EBITDA and free cash flow.
Yes.
Yes.
This is Steve yes, so I think as we've talked before the auction to kind of get a different path on us and maybe what we had expected we really kind of pivoted towards between illuminate b directly. Your question today, we get $48 million, a year and Caf II funding as we pivot towards art off that start of 2022, that's going to drop down to about $6 million a year.
And annual revenue, but again I remind you that our build plan and I don't believe the searchlight investment was predicated on.
Long time.
On a dependency on cash on Caf II.
Our non op. So we said that unfortunately, we pivoted towards expanding our build plan and that's why we went from 1 million passing for actually for $1 $3 million to $1 million six was because we wanted to we want to be selective and the art offer some sparks that we're really going to be high cost reserve pricing was going to zero and so I think where we are going to take a step down just on total.
In 2022, but we will make that up from a retail basis.
People and accept the one gig product and <unk>.
And within a two year window and so were.
We're really focused on the build plan and maximize and execution on that.
Okay, great. Thanks for taking the questions.
Your next question comes from the line of Michael Rollins with Citi.
Yes.
Just curious where you're upgrading fiber to over the next few years, what percentage of that overlaps with cable competition and.
And can you remind us of how you think about the share opportunity from that.
As you get into those markets and compete with the fiber.
Thanks, Mike.
When you think about the way our plan is built we assumed that we were in a duopoly position and.
And all cases.
And reality, we have 81% of our market.
Overlaps with one competitor and and theirs.
Small percentage three or four that has.
Two competitors.
And the rest has.
And it was roughly 11% I think that has no competitor and and the majority of the builder and the duopoly situation our experience is.
We ended up with a.
35 plus percent.
Penetration and.
And duopoly situation when we have one gig offering and in fact and some of the more mature.
And areas after about three years, we've got a 40% plus 42% and some cases.
And our initial experience in.
Our fiber cohorts.
Where there is no competition really we were and the 60% plus and a matter of six months and.
Where there is competition.
After roughly two years, we're at 30.
6% actually 38% and New York, where we had to.
And the.
Broadband partnership and.
And we have charter as a competitor there so.
I think mid 30, percents, which is what it is and our model.
Is very doable and our expectation is 40.
And 40% plus.
And in your experience.
Given the importance of broadband, especially.
As many of US and you mean environments and some form over the last year, plus so and Youre experienced why why does.
Everyone or all loans have broadband what are the reasons that you signed for that.
GAAP, where it's not 100% penetration and the homes in the market for free.
For you and your competitors.
I think it's going to be rare.
I think that you got seasonal homes.
That arent fully.
Full time occupied you've got some debt just won't won't.
Depend on on Internet at home and instead, we'll use satellite, but I don't think youre going to see that remain and the 91% or whatever the rate is nationwide for prolong I think it is going to be like.
Telecom.
Growth of voice of America, it's going to get replaced by broadband and.
And Thats, why Youre seeing a rush to interest and and investing in this space.
Thanks.
As a reminder to ask a question press star one on your telephone keypad.
Your next question is from the line of Rob Williams with epic on credit investment.
Hey, guys. Thanks for taking the question hope everyone's well just a quick one for me.
You've added a nice amount of homes. So far I was wondering if you can give us just some color and early days on the penetration rates I know Bob.
Alluded to some of it but kind of how do we think about of debt 321000 homes that are at gig enabled.
What is the what's.
With the data subs for that debt right now is a broader just overall penetration rate.
Yes, we're going to get more detailed and.
And the penetration rates as the year progresses, and so it's really hard to give you a.
A number without putting it in the context of how long those homes have been available so and the and.
And the homes that have been three years.
Available with a gigabit fiber based product or longer our penetration is above 35%, 36% and.
Most recently deployed Holmes it really depends on.
And for example, and northern New England, and it's been harder to do direct door to door sales and.
And so.
It's.
It's trending.
More and more closely to.
Our plan of <unk>.
Expecting 20% and the first 15% to 20% and the first year.
Getting close to.
Hi, <unk> and the second year, and then mid thirties and the third year.
But in the and the areas where.
We've got a.
Longtime history and in the mid south and the longer term.
Fiber gig.
And he has and the west coast.
We're in the $36, 40% to 42% range. So so we're looking at we're looking at it at a cohort by cohort, but towards the end of the year as we.
And build the momentum and second quarter third quarter there'll be more metrics that we're sharing because this is really the investment year and the and the transition of turning the ship.
And to a growth engine and we will give you more examples on the overall fiber base as we as we blow out the metrics further.
Great, Yes, I think everyone and appreciate that and then I guess my final one is just kind of getting back to some of the cost side and on the inflation pressures potentially are you or I guess are the contracts and the orders you guys put in or they are already fixed price are you getting the adjustment if costs are rising.
Yes.
Those that we've put in and now are fixed price.
And we oppose that we're letting OE into 2022.
We're watching the cost of materials carefully but.
But so.
And so far.
And we feel confident that there is room for some movement.
Prices go up.
Great. Thanks, everybody appreciate it.
As a reminder to ask a question. Please press star one on your telephone keypad.
To ask a question press star one.
At this time there are no further questions I will turn the call back over to Mr. Bob <unk>. Please go ahead Sir.
Well thanks, everyone for joining the call today, we're very excited about our progress and first quarter and well into the second quarter ramp and and we appreciate you tuning in and look forward to updating you on our first quarter, our second quarter results. Thank you.
Have a great day.
This concludes today's conference call you may now disconnect.
Okay.
Yeah.
Okay.
And then.
[music] and.