Q1 2021 Orion Engineered Carbons SA Earnings Call
Greetings and welcome to Orion engineered carbons first quarter 2021 earnings conference call. At this time all participants are in a listen only mode. A question and answer session will follow the formal presentation.
If anyone should require operator assistance during the conference. Please press star zero on your telephone keypad. Please note. This conference is being recorded and will now turn the conference over to Wendy Wilson head of Investor Relations and corporate communications. Thank you you may begin.
Thank you operator, good morning, everyone and welcome to Orion engineered Carbons conference call to discuss our first quarter 2021 financial results.
I'm, Wendy Wilson head of Investor Relations and corporate communications.
With us today are Corning painter, Chief Executive Officer, and Lorin Crenshaw, Chief Financial Officer.
We issued our press release after the market closed yesterday, and we have posted a slide presentation to the Investor relations portion of our website.
We will be referencing this presentation during the call.
Before we begin I'd like to remind you that some of the comments made on today's call are forward looking statements.
These statements are subject to the risks and uncertainties as described and the company's filings with the SEC.
Actual results may differ materially from those described during the call.
In addition, all forward looking statements are made as of today may seven.
The company does not undertake to update any forward looking statements based on new circumstances or revised expectations.
All non-GAAP financial measures discussed during this call are reconciled to the most directly comparable GAAP measures in the table attached to our press release.
And we'll now turn the call over to Corning painter.
Thank you Wendy good morning, everyone and welcome to our first quarter earnings Conference call. Following such an extraordinary year I'm pleased that our business has started 2021 on such a strong footing.
Our specialty products are in high demand driving outstanding year over year and sequential volume growth on.
Our rubber business is solid realizing year over year and sequential volume gains and I want to thank the Orion commercial production and customer service and supply chain teams in particular.
For continuing to work safely in terms of COVID-19, and for their agility and managing a very active order book COVID-19 infection rates are very high and some of the communities, where we operate and we continue to believe we have had no workplace contagion.
From a community standpoint true to our corporate values. We contributed funds this quarter to Hutchinson County, United Way, and Texas to support residents impacted by Winter Storm Ori.
We operate a carbon black manufacturing facility in Hutchinson counties largest city border and I've had the privilege of being part of the community for the past 93 years and.
I'm proud to say that we were able to operate our cogeneration plant there through the storm, which took down so many power generators.
From a financial perspective, we reported first quarter adjusted EBITDA of $79 million up 11% year over year and up seven 4% sequentially led by the strength of our specialty business, notably our adjusted EBITDA margin was 19, 7% upsell.
70 basis points year over year with a specialty EBITDA margin of 27, 5% up 410 basis points year over year.
Looking to 2022, we're pleased to be gaining traction and many of our new offerings, particularly for advanced materials, such as conductive grades for lithium ion batteries and other applications. We also believe our rubber carbon black business is on track for a very robust 2020 two and the customers appreciate our really.
Liable local production that they can count on.
As I've said before we value agility, ensuring that on a sales and operations planning and logistics perspective, we remain ready to respond to whatever demand scenario ultimately transpires.
You can refer to slide number 17, and this earnings stack, if you're interested and how our business and have responded since the ongoing demand recovery that began roughly three quarters ago.
As we have moved into 2020, one consumer mobility trends are mixed globally. However, we may well see a vaccine driven lift as public policies. Currently limiting mobility are eventually relaxed on the commercial side of our business commercial freight trends remained strong and siem.
Likely to do so for the foreseeable future.
The original equipment market drives approximately 40% of rubber volumes and 11% of specialty volumes.
Bottomed around the second quarter of 2020, but picked up sharply roughly nine months ago and continues to trend favorably. Despite the well publicized global semiconductor shortfall disrupting production and numerous factories around the world.
Global light vehicle sales continue to show improvement year to date on a year over year basis. The combination of strong demand with supply chain snags does lead to relatively low dealership inventory levels. As a result, we expect both the specialty and rubber segments of our business serving.
The OE market to benefit as the supply chain issues are resolved and production levels normalize.
For the remainder of today's call and Loren and I will cover the first quarter results and provide an update on the sustainability and growth investments we have underway.
After our prepared remarks, we'll be happy to take your questions.
Okay.
Turning to our first quarter results in greater detail as you can see on slide four adjusted EBITDA rose to $79 million year over year, primarily driven by the sharp broad based demand recovery across most specialty applications and geographies, partially offset by the unfavorable.
<unk> impact of rubber market dynamics, and Korea, which have compressed margins.
And one time $2 million cost impact related to winter storm already.
And higher incentive compensation accruals year over year.
At this time I'll turn the call over to Laura.
Thanks, Corning revenue was up seven 2% year over year and increased roughly 14, 1% from the fourth quarter, reflecting a continuation of the strong recovery trends we've observed for the past three quarters now contra.
Contribution margin rose 11, 6% year over year, mainly due to higher specialty volumes.
Adjusted EBITDA increased 11% year over year to $70 $9 million, reflecting strong operating leverage partially offset by the factors mentioned by Corning earlier.
Finally, we reported adjusted net income for the quarter of $31 $2 million up 17% year over year on higher adjusted EBITDA.
The bridges on slide six provide greater detail and supportive of the comments I just shared on our quarterly results.
Slide seven details our year to date sources and uses of cash.
On a full year basis, we expect net debt to rise moderately year over year by an amount resembling a year to date increase and working capital assuming that oil prices average near current levels for the balance of the year.
Our first quarter results reflected this trend directionally with strong profitability being offset by the change in working capital and capital to investments that advance our sustainability and growth initiatives.
We expect next year to follow a similar pattern as this year from a discretionary cash flow perspective.
Before delivering substantial free cash flow and 2023 and beyond.
Slide eight summarizes our leverage and liquidity profile as of the end of the first quarter.
Liquidity available at any leverage level was $310 million at quarter end.
At the current stage of the economic cycle.
And at three three times, we are less and a turn higher than our steady state target net leverage of two to two five times.
We expect that ratio to continue drifting downward throughout the year and to ultimately approach targeted levels by year end as economic conditions and our earnings continued to normalize.
Overall, the strong state of our liquidity and the absence of any significant debt maturities until 2024 gives us confidence and our ability to successfully navigate any demand scenario that transpires fund.
Fund, our sustainability related investments and the U S.
And advanced select strategic growth initiatives that will position us to emerge stronger and with greater earnings capacity in the coming years.
Moving to slide nine specialty volumes increased 22, 4% year over year and rose nine 2% sequentially vol.
Volumes were up year over year across most end markets and geographies.
From a profitability perspective, adjusted EBITDA increased 41, 3% year over year, reflecting strong operating leverage.
The next slide breaks out the major year over year drivers of adjusted EBITDA for the specialty business. The most significant of which was higher volume.
And market wise polymers, and coatings were particularly strong geography.
Geography wise, the Europe, Middle East and Asia Pacific regions showed the greatest relative strength.
Turning to slide 11 rubber volumes were up three 3% year on year and up 6% sequentially.
Geographically and Margie volumes rose and China, while volumes were flat to down and our tire business across most regions with the exception of the Asia Pacific region.
However, higher volumes did not translate into higher adjusted EBITDA due to a combination of the impact of Korea market dynamics.
Roughly $2 million drag related to winter storm Yuri.
And unfavorable regional sales mix with volumes rising disproportionately in areas such as the Asia Pacific region, where our margins are simply lower.
Collectively these factors drove the decline and adjusted EBITDA, which fell 12, 9% year over year, despite higher volume.
Slide 12 shows the development of adjusted EBITDA for the rubber carbon black business as I just described in greater detail with that I will turn the call back over to Corning.
Thanks, Lauren turning to capital allocation, our EPA investments and North America continue to advance.
After COVID-19 related delays caused us to declare force majeure related to our efforts to install emission control systems at our Ivanhoe, Louisiana and Orange, Texas facilities, we ultimately got the Orange, Texas facility on stream per the original schedule.
With regard to Ivanhoe, our current project schedule, which we share regularly with the EPA calls for completion and the third quarter.
Overall, our growth strategy remains centered on expanding capacity in the differentiated segments of our business. The results of this approach are reflected in our business mix with approximately 75% of our adjusted EBITDA, driven by specialty and technical rubber grades and.
An example of this strategy and action is that we have kicked off and expansion of our gas black production capacity in Germany, which is expected to be completed and phases over the next several years with the initial impact in 2021 and building into the future.
These actions will set the stage for incremental high margin premium grade growth and the coming years and have the potential and gradually add an incremental $7 million to $10 million of adjusted EBITDA to our run rate building to that level over the next five years.
Two major strategic initiatives that will expand our capacity to meet increasing demand and shift our earnings mix. Even further towards differentiated market segments are the 25 Kt expansion of her Ravenna, Italy facility and the construction of a 65% to 70 Kt Greenfield facility in Hawaii.
China.
Ravenna is on track to begin ramping up and early 2022 and pop a in 2023.
Finally, turning to our outlook for the balance of the year, although our customers visibility into the second half is less clear than usual, we are reinstating full year 2021, adjusted EBITDA guidance and the range of 250 million to $280 million.
And while the COVID-19 situation remains challenging and many countries, we are confident and our ability to navigate 2021 and beyond successfully.
We believe that the strong demand will persist through the second quarter looking into the second half. However, some customers are not providing forecast yet while others are but with significant caveat.
Obviously, the COVID-19 situation, particularly in North America, and Europe is a key factor and numerous supply chain challenges are and play as well.
And with the combination of less unusual customer visibility.
Restocking activity likely moderating expected less favorable specialty product mix and typical fourth quarter seasonality patterns. The mid point of our adjusted EBITDA guidance anticipates commercial trends moderate and the second half.
The upper end of our guidance range reflects our best estimate of our earnings potential. If we are wrong about the second half moderation and instead see a scenario where the first half momentum continues unabated better than expected second half specialty product mix and less seasonal weakness and the fourth quarter than usual amongst us.
Other possible factors gives.
And given the many uncertainties today, our primary goal is simply to remain agile and ready to respond to whatever demand scenario transpires.
And closing the key messages I'd like to reiterate is that our business is doing very well, we've reinstated guidance, we're making headway and our differentiated products with new investments to bolster. This further we are progressing our sustainability and growth investments and we're on track to generate substantial free cash flow in 2023 and <unk>.
Yeah.
We look forward to the ongoing support of our investors as we continue to profitably and responsibly grow Orion in the coming years with that operator. Please open the line for questions.
Yes.
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Our first question is from Josh Spector with UBS. Please proceed.
Yeah, Hey, guys. Thanks for taking my question I was wondering if you could expand on what's going on in Korea, and how that's impacting you and I guess I would've thought that would've made it and have more of a volume impact, but youre alluding to what's going on more as a margin or cost and pack. So any detail you can provide there would be helpful.
Yeah. So what we have there is also as first of all good morning by the way we have here.
Couple of customer specific situations and as their customer specific there is a limit to what we can say, but I'll just say, we're taking action and working through it and this is all on our guidance at this point.
Okay is there any.
Does it resolve and the next quarter or is it something your guidance assumes persist through the year.
And I expect to make progress, but I do think debt.
Because it's customer specific Josh is just kind of hard to lay out specific solution or what we see the timing because this is all subject to discussions.
Josh I would say, we don't expect some quick resolution and that's all and our guidance.
Okay fair enough.
And just curious on special team broadly then where.
Where do you think you're at from I guess more of a normalized margin perspective, I guess I still large and continue to see some pressure as higher costs flow through and given where oil is today versus where it was but obviously demand remains strong mix is a bit better.
How are you thinking about things trend sequentially into <unk> and maybe into the second half.
So I think I really think visa's this separate individual markets more than the overall mix from an overall mix perspective. However, one element is where are we constrained right and right now we have constraints on a number of our higher margin specialty products. That's one of the reasons why we mentioned that the battle.
And that king activity, so to the extent that we are constrained on the growth and some of those areas that that obviously put some pressure on us for the mix and that's one of the things we look at as we go into the second quarter between potential changes and market demand, but also just.
And capacity issues, but that's a challenge.
And Josh rather than quarter by quarter last last quarter, I mentioned $6 80 to 690 GP per ton for the full year on average that's still a good number.
And it incorporates actions that our team has taken to offset price.
And to offset raw material increases due to oil price. So that number is still good.
Okay. Thank you that's helpful I'll turn it over thanks.
Thanks, Josh.
Our next question is from Mike <unk> with Barclays. Please proceed.
Great. Thanks, and good morning, guys.
And I guess.
First the color on the full year guide was super helpful and it's clear on the moderating impacts you're expecting and second half, but just curious how you're seeing things trend into Q2, obviously you don't get your already repeated and you talked about channel inventories being low, but we're also seeing some OEM production slowed down. So can you just kind of help us think about her.
And how.
We should see all of that shakeout sequentially here for QQ.
So we think Q2 is going to be a strong quarter for us.
With respect to the first let's talk to the ship issue why that that's out there and car companies do shift production around to other models, there's probably and net improvement for replacement tire as this plays out so while that's a factor out there we don't see that as a huge impact for us.
And to some degree demand thats may be pushed down a little bit now right you would expect to see later in the year from that perspective.
But specifically I think the market dynamics and remained quite good for the second quarter, it's really been and get into the second half of the year, we hear customers, having some caution.
Meaning I think is going to be good but is it going to be at the current levels.
Got it that's helpful. And then maybe as a follow up just two quick ones on cash flow and in fact and restaurants your slide seven.
First on working capital if we just assume and energy prices stay flat from here would you assume working capital to stay flat or move higher or lower by year end and then second that other line item I think it was a use of $10 million of cash this quarter, where would you expect that to roughly shake out on a full year basis.
And for working capital I think if oil prices stay where they are.
Somewhere in that $40 million to $50 million use of cash is where we would expect it to be.
And depending upon our sales volumes for the balance of the year and.
And in terms of other.
You could use.
I would actually combine other and the change in provision line and tell you to use something like $20 million to $25 million for the entity for the full year.
Great. Thank you guys.
Our next question is from.
Kevin Hocevar with Northcoast.
Northcoast research. Please proceed.
Hey, good morning, everybody.
Kevin I'm.
I'm wondering if you could comment on.
How capacity utilization is now in the business.
If I look at Slide 21, you show your capacity and it looks like in 2020, you're at 867000 tons of volumes and then.
You mentioned.
Current available capacity at 180, 190000 and fun.
So thats 1052.
You sold 254000 tons in the quarter, So and I don't think Theres, a ton of seasonality and the business. So.
If you annualize that it seems to suggest youre operating at pretty high.
Utilization rates, so I guess I'm curious your take in terms of.
How is the operating rates on the assets and how.
How do you expect that to go going forward, well I guess, you've given some color there, but what type of rates are you operating at.
Currently.
Yes, so we're at high rates right now, let's say above 90 in the EMEA and the APAC region and the Americas, I'd say, we're more and the seventies, but thats very much around specific lines that drive that and the relative demand for those specific lines.
Okay.
And in terms of.
Price and.
And specialty it seems like.
There's been some inflation and here you have to go to the market and pushed through the inflationary pressures with pricing and.
Typically I think and a typical year, there's a little bit of a lag there. So there can be some price cost pinch on.
As you do that but given the strong environment. How would you say that that's going have you been able to push through pricing pretty pretty quickly and timely on the specialty side or or do you see any pension and the price cost there.
And the market dynamics are very favorable to pricing right. Now I mean demand is very high capacity is limited supply and demand laws are what they are.
So we have been working that I am frankly disappointed and we don't have more to show for that at this point, but that's something we're going to continue to work through this year.
Okay, Alright, thank you very much.
Our next question is from Jeff <unk>.
<unk> with J P. Morgan. Please proceed.
Thanks very much.
And your.
And your rubber black business, there really wasn't very much growth at all and.
And I think.
Your competitor and Massachusetts.
And <unk>.
Both the United States Europe, I think their volumes grew about 10% and.
And.
I think they are profit increase was enormous.
What happened.
So if I'm going to just speak to our business versus comparing it to your hypothetical player there.
And say that first of all we've made our moves in terms of pricing and where we think the appropriate value is and that plays out sometimes in the marketplace.
As we indicated and overall as we look at it the Korea market dynamics had a play for us that we although we show right now if you look at the trailing 12 months we're at.
Down from where we were let's say at the end of 2019, we would expect that to get back to roughly on par with where we were at the end of 2019 and.
And finally, if we look to China, we play in different spaces. So we're heavily margie there so a different sort of play and the rubber business. We have that is going into actual tires for us is much more on the multinationals with whom we might have global agreements and so a different sort of situation for us and different market, we're really playing.
And as we're a very small part of that overall rubber market in China.
No I excluded that that is I think your competitor grew 30% and Shanghai, but I think and the United States and Europe.
10%, yes, we saw that and so I think there is this thing plays out to I think what comes out of the annual pricing and volume negotiations.
And what do you see and that in part is where we are and where they are in that space.
And we don't break down our volume performance for each area as I indicated a moment ago, our European loading is really quite high.
Okay. So on.
If you look at your first quarter revenues and you think through the year.
Do you think your revenues would be lower and any quarter versus the first quarter and if they were in which segment, Mike they'd be lower and why.
Well I'll just speak I can tell Laura and wants to jump in but I mean, I think there is one element of this is just the seasonality and while.
The fourth quarter as a way off I'm not sure that.
And the business cycle is totally escaped seasonality.
And I would say that our second quarter is likely to be amongst our strongest and for reasons Corning decided the fourth quarter for seasonality reasons would would be.
Weaker and the way we we look at things I would also just follow on the prior question to say.
And one quarter doesn't make a year and this rubber carbon black business is tracking towards.
More than 90% of 2019 volumes for the full year and so we're going to have a strong year for this business and we're going to see strong growth year over year.
And for this business.
Okay.
And you made any progress with your <unk> negotiation.
So we indicated last year that we didn't think last year was a likely year for any solutions in terms of.
A settlement and separate from the arbitration, we thought it was possible. This year just the way things played out.
On a broad brush comment like that Theres really not very much we can say and until we either.
Have a settlement or we go all the way to the ending of arbitration and I would expect.
<unk> to go into 2022, if it goes on all the way.
And then lastly can you can you talk about what your competitive advantages are if you have some in the EV market that is how does your product portfolio compared to your competitors. What are you trying to do that they're not doing.
Or are you trying to do the same things that theyre doing but you are just a little bit later to the market.
So theres different attitudes and different carbon additives that go into a lithium ion battery that compete for space and that and I think that we're likely to see a solution and the and where theres a mix of materials that are inside the electrodes and those materials.
And right now our play in that space is around the acetylene black.
So there is I would say one other player who is also in that space and.
And there's plenty of battery manufacturers for us all to kind of focus on so we're really very focused on.
And the people, we are and development programs with for their needs and make other people focus on other players.
What are your revenues from that area.
I don't think we're going to go to that I would say right now our EV portfolio is a relatively small part of our overall conductors business for Orion right now, but I think the positive thing for US is that we were gaining these qualifications and where we've seen it and the price increases.
And so forth, we've announced around the acetylene black to enable us to kind of work.
We work our way out of previous supply arrangements to be able to reallocate more and more of this product into the EV space. We've said before that we saw the let's say EBITDA potential of the acquisition being and let's say the upper single digits in terms of EBITDA for Orion.
And so obviously and the fullness of time as this business continues to this very rapid growth that would be and opportunity for further investment for us.
Great. Thank you so much.
Our next question is from John 10, one tank with C. J S Securities. Please proceed.
Hi, Good morning, guys. Thank you for taking my questions and very nice quarter and good work on on raising the guidance.
First of all had a lot of that is and answered already is that corn and can you just talk about the day Robert dynamic entering 2022, I know you've made a comment on them being looking pretty robust. So far can we expect I guess that debt.
I seem to come up as you had maybe expected.
Before the pandemic.
While the supply and demand dynamics similar or are people, adding capacity and just help me think about how you're thinking about pricing and volume and the out year.
Yes.
And that we're looking at a very good and 2022, you can just see the confidence the stimulus and all of this I think it is an improving situation. This whole thing with the chips are is ultimately going to get resolved for us going forward.
You see as the vaccines have come out what's happened and the us in terms of mobility and many of you've driven anywhere you've experienced that personally.
We see.
And number of expansions of different tire companies moving forwards and number of the Asian tire manufacturers. So that kind of long term pressure. If you look at the notch data and you compare what they think demand.
And domestic supply is going to be there is quite a GAAP that builds over the next several years.
And we've seen customers wanting to negotiate early this year and so I would read that as a sign that.
People people recognize 2022 is going to be tight.
Got it is there a kind of a ballpark pricing increase or maybe and margin expansion.
And you said Youre looking at getting these early discussions and positive outlook.
No I think we've never given let's say a target and I think for competitive reasons, we wouldn't want to do that and this this sort of a setting.
Okay fair enough.
Just on inflation and <unk>.
General and I know, you've gone through Cogs, and and oil prices and everything else is there any concern on your capex and the cost to complete your EPS investments that debt those costs may rise and the near term or do you have that's pretty locked down.
So I would say.
Near term costs typically are ranked because that equipments all.
Procured it's more like the later projects, where you'd have to look and see but for this point, we see ourselves being able to hold the budget.
Okay, Great and then.
Sorry last one from me.
Whoops.
How much.
How much have you factored any potential benefit from an infrastructure bill.
And into future performance I mean, the obvious thing would be that the batteries are mentioned.
On the pipe as something that would be probably use heavy construction and higher usage. All of these things flowing through do you guys have you thought about the beneficial impact on that at all as zone.
And the potential for that deal to be fast and get closer.
Certainly we have I think for us if we look at it and where we are and loading right now as I indicated earlier somewhat high and there is a little bit of and opportunity in North America, but I'd also just says okay. So and when we think about where are the areas we need to put emphasis on which are the directions, we might want to reallocate current capacity.
<unk> towards and we do think about that and Kevin I would add is if you want to start thinking about 2022, I would refer you to slide 21.
And what Youll see is that.
And if we.
We're able to sell say, 90% plus of 2019 volume we would still have another 80 K t's.
To really maximize our operating leverage so even if this year we were at 90% plus you look at that chart because another 80, K t's of upside just from operating leverage and.
And 2022 without considering any price and so.
We'll see how the economy transpire.
But we think there is.
And the leverage into next year.
And I think those dynamics then.
And are certainly going to be a plus for us in terms of loading Ravenna for next year as well.
Okay got it and just to go back on the infrastructure if that Bill passed is what would you expect your tax rate to culture.
Well today, the way that our profitability mix by geography happens to be.
We wouldn't expect a significant impact.
Because of.
And.
America's profitability levels.
Not being perhaps as high as you might expect due.
And do too.
Specific factors that.
Are confidential.
And just to build out and we've talked about we still use the us as an opportunity for us and our specialty.
Business.
Got it understood. Thank you.
Our next question is from Laurence Alexander with Jefferies. Please proceed.
Hi, there I guess, just a couple of things.
What are you seeing specifically and the wire and cable and building materials markets are you seeing any signs of a turn on those.
And when you say so those are I'd say fairly robust areas right now.
It turns you mean coming off or do you.
And our youth speculating about return Laurence.
And just we just want to flesh out kind of how you're seeing sequential momentum and dose.
I think we see those I think we see most maher.
Markets for us and a sequential way.
Remaining robust.
The question for Us overall.
It's just when you go into the second quarter and you talk to customers there's.
And certain degree of less certainty and with some of them a little bit of a caution.
But I think if we think immediately sequentially I expect a good second quarter.
Okay.
And.
How are the.
Discussions are evolving and the industry around decarbonization and implications.
And for feedstock availability.
So far I'd say, there's a lot of confidence around feedstock availability for a variety of reasons, but I would just point out that we are a party to black cycle, which is a tire and of life higher recycling program, which is part of that overall process.
And create carbon black oil, which can then be used to make new carbon black.
We also are involved in what I'd say is green carbon black so from renewable sources, we've had pretax nature for a number of years, but we're also and a program using forest products are developing.
And the capability used forest products and the same way so there's options for us for sure in terms of a more sustainable approach on carbon black.
And where did those two fits on the cost curve relative to conventional carbon blacks.
Well I think it's very early to say, where they are compared to that it would especially and we think about the renewable and agricultural and so forth like that there is certainly a challenge to make the yield there are challenged to make the full range of carbon Black's that kind of thing I think when you think about.
And of life tire recycling youre looking at whats and overall solution that's needed for the industry and in an environment, where maybe you don't want to burn used tires and cement sales.
And how is the <unk>.
Pipeline for bolt on acquisitions.
So I'd say, we consider acquisitions there is.
It depends upon how broadly when describes a bolt on and different people can disagree on that but there certainly are.
Let's say adjacent opportunities for sure in terms of specific in carbon Black will there is a limited number of major players and then Theres markets places like China, which is still quite fragmented.
And some people have participated in that.
But I mean should we expect you to be active in that store.
And let's see kind of degree of appetite.
So I mean, I think we would always be app, we would always investigate and gave good consideration to and attractive M&A activity, particularly those that were closed and.
But we also wouldn't have a lot to say until we had something to say.
Fair enough okay. Thank you.
As a reminder, this star one on your telephone keypad, if he would like to ask a question and we'll just pause from Vietnam and see if there's any final questions.
Okay. There are no further questions I would like to turn the conference back over to Corning painter for closing comments.
Okay, well. Thank you for everyone, who took part in today's call. We know your time is valuable and there is other places you can be so we greatly appreciate you spending this time with us and your interest and Orion engineered carbons have a good rest of your day. Thank you.
Thank you. This does conclude today's conference you may disconnect. Your lines at this time and thank you for your participation.
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