Q1 2021 Lydall Inc Earnings Call
Yeah.
Okay.
Good morning, and welcome to <unk> first quarter 2021 earnings Conference call.
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After todays presentation, there will be and opportunity to ask questions.
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Please note. This event is being recorded I would now like to turn the conference over to Brendan Moynihan, Vice President Investor Relations. Please go ahead.
Thank you good morning, everyone and welcome to Lydall first quarter 2021 earnings conference call Joy.
Joining me on today's call are Sara Greenstein, President and Chief Executive Officer, and Randy Gonzales, Executive Vice President and Chief Financial Officer.
Sara will begin the call with a high level overview of the quarter, including the actions taken to solidify <unk> position as a world leader and specialty filtration and advanced materials solutions.
Randy will follow with the review of our financial performance and discuss the key business drivers by segment.
Sara will then conclude the call with a brief discussion on our current outlook immediate priorities and how we are well positioned for long term growth.
At the end of their remarks, we'll open the line for questions.
Our quarterly earnings release was issued along with the filing of our quarterly form 10-Q.
Both are available on our Investor Relations website, IR lydall dot com and can be used as reference for today's call along with the Q1 2021 earnings conference call presentation.
Which can be found at lydall dot com and the Investor Relations section.
As noted on slide two of this presentation any comments made on this conference call that may constitute forward looking statements are made available pursuant to the safe Harbor provision as defined in the securities laws.
Please also refer to the cautionary note concerning forward looking statements within light all the form 10-Q for further information.
In addition, we will be referring to non-GAAP financial measures during this conference call.
A reconciliation to GAAP financials can be found in the appendix of the presentation I just referenced.
With that let's turn to slide three and I'll turn the call over to Sarah.
Thank you Brandon and Hello, everyone, I hope that you're all doing well staying safe and.
And diligent to protect yourself and others as the world continues to battle the pandemic.
I'm delighted to be here today to share of another remarkably strong quarter for lydall, we felt of salad and sustaining sales growth across all three of our business segments. This quarter and continued marketer and expansion driven by our clear strategic focus and relentless commitment to operational excellence and our customer success.
Plenty of 'twenty was undeniably the euro PPE and melt blown for lydall last year, we supplied and now find fiber and outlet and filtration media for nearly 1 billion face masks.
By mid 2021 we will have capacity to supply filtration media for over $6 5 billion masks of annually and.
In January our engineering team and Rochester, New Hampshire commissioned our newest melt blown out of that it is one of the largest fine fiber and outbound producing machines and the world and it has been operating at full capacity since the beginning of this year shipping product to customers as quickly as we are able to load the trucks and our.
Shipping day.
We gained invaluable experience through the installation of the first machine and.
And we are using these insights to expedite the installation of our second asset and Rochester, and the third and fake Revlon and frame it.
And this momentum is allowing us to get a central lifesaving material into the hands of our customers and the team is executing on schedule and on budget.
Consistent with the expectation we previously outlined these assets are expected to be fully operational and early third quarter.
Our sealing business has kicked off the year and an incredible pace.
Third by strong backlog that we expect will remain in place through at least the first half of the year.
Demand for our high performance cryogenic insulation of surging driven by global demand for cryogenic gases like LNG liquefied petroleum and ethylene.
We're especially pleased to report a return to growth and technical Nonwovens and continued strong demand and our thermal acoustical solutions business this quarter and technical nonwovens or T. N. W. We have seen robust order levels and our industrial filtration segment, resulting in a.
Backlog G.
G O synthetic also continues to be and area of strength and the T. N W portfolio bolstered by strong demand and infrastructure and construction market with particular emphasis on sustainable materials and products.
And thermal acoustical solutions or task, we have seen the continued transformation of this business and the first quarter.
And this business weathered some significant challenges in 2020 from industry wide shut down too dramatic COVID-19 related staffing and Pat.
And Q1, our North American operations.
Rapid decline and COVID-19 cases, and the elimination of high cost of temporary labor, which contributed to significant margin expansion from the fourth quarter.
I'm incredibly proud of the hard work potassium has done to stabilize the operations, even as our customers worked through their specific supply chain challenge at.
This business is well positioned to capitalize on continued strong automotive demand going forward.
The lydall team is proactively and aggressively managing through the supply chain challenges, particularly and raw materials and logistics and.
And strengthening supplier and customer relationship that we do sell.
Our team continues to demonstrate the agility and acumen and phoned last year to turn of obstacles and two opportunity in 2020, one and beyond.
I'll turn it over to Randy for a more in depth look at our results for the quarter.
Thank you Sarah turning to slide four I'll briefly cover some key highlights for the first quarter and then provide an overview of our operating segment results.
As a reminder, we will be discussing adjusted financial metrics, including adjusted EBITDA by segment.
The complete reconciliation to comparable GAAP numbers is provided in the press release and earnings presentation.
First quarter of 2021, net sales of $227 $1 million increased 13, 3% or $26 $6 million from the same period and 2020 with all three business segments posting gains.
This was led by very strong growth of 21 six per cent and performance materials continued strength and thermal acoustical solutions, which grew eight 7% and.
And of returned to growth and technical Nonwovens, which grew seven 4%.
Organically consolidated sales grew 10, 8% with the weaker dollar increase and consolidated revenue by $7 $5 million or three seven percentage points, partially offset by a decline and tooling sales of $2 million or one percentage point.
Consolidated adjusted gross margin was 21, 4% and increase of 220 basis points from prior year led by increased volume across all business segments and favorable mix of filtration products, partially offset by higher costs and task.
Adjusted EBITDA for the first quarter of $24 $4 million increased $4.4 million or 22% from last year, resulting in an adjusted EBITDA margin of 10, 7% up 70 basis points from last year.
Performance materials adjusted EBITDA margin was robust at 26.5%, while both past and P and W segments saw sequential EBITDA margin expansion of 290 basis points and 170 basis points respectively.
First quarter interest expense of $3 4 million hours was up $600000 driven by higher interest rates.
Our strong financial performance enabled us to take advantage of favorable credit markets and execute a new credit facility in April.
The new facility includes a term loan of $176 million of revolver of $170 million and has a term of five years maturing in April 2026.
We anticipate this will save approximately $4 million of interest expense over the remainder of the year.
Our effective tax rate of 35, 7% was higher driven by the mix of higher tax foreign earnings and the quarter, but we still expect the full year rate to be and the range of 27% of 28%.
Adjusted earnings per share of <unk> 35 was up 15, SaaS or 75% from the first quarter of 2020.
Turning to slide five.
The highlight our continued focus on cash and liquidity.
On a trailing 12 month basis free cash flow was $15 million down from prior year on higher working capital driven by higher sales.
Higher cash payments for incentive compensation as well as cash outflows associated with previously announced restructuring programs.
Weidel ended the first quarter with a strong cash balance of $88 $7 million, including of debt pay down of $9 $5 million and the quarter.
Net debt of $172 million improved by $28 million compared to the same period and 2020.
The resulting and a net debt leverage ratio of two four times.
Capital spending and the first quarter was $8 $1 million net.
Net of $6 $5 million of government funding related to our global multi zone capacity expansion.
These critical investments are nearing completion with approximately $4 million remaining to span primarily and the second quarter.
For the full year, we continue to project capital spending of $35 million to $40 million net of approximately $8 million of government spending.
Finally last week, we announced board approval of a $30 million share repurchase program driven by the confidence we have and our strategy and the continued expectation of delivering strong sustainable cash flows.
This program is consistent with the capital allocation strategy, we shared at last year's Investor Day.
We are now able to return capital directly to shareholders, even as we continue to pay down debt and fund key organic growth investments.
Moving to slide six I'll cover our performance materials segment, which includes the filtration and sealing and advanced solutions sub segments.
Sales of $79 $3 million increased $14 $1 million or 21, 6% from first quarter of 2020.
Led by continued strong demand for specialty filtration as well as higher sales of sealing products.
Filtration sales expanded 32, 7% from prior year supplemented by additional Melco and production capacity and our Rochester, New Hampshire facility.
Sales and sealing and advanced solutions were up 14, 4% or $5 $7 million from prior year and $5 $4 million sequentially.
Our sealing product lines benefited from robust demand and key end markets, including agriculture construction and transportation.
In addition, our advanced solutions saw particularly strong sales and cryogenic specialty insulation products.
As a result of the strength in these key end markets as well as productivity initiatives restructuring actions and favorable mix adjusted segment EBITDA margin and the first quarter was 26, 5% up sharply from prior year.
Restructuring actions announced last year are nearly complete.
We completed the sale of our German facility and the first quarter and we expect the remaining actions to be completed and second quarter with the exit of our Netherlands facility.
The total investment for this program is estimated at $18 million or $2 million lower than initially anticipated and the run rate savings of $5 million to $6 million remains in line with our expectations.
Slide seven covers our technical Nonwovens segment.
Overall first quarter sales were $61 7 million up seven 4% from prior year or one 8% adjusted for foreign exchange.
Industrial filtration sales grew by 16% globally, driven primarily by stronger demand in China, where power cement and steel projects and the absence of COVID-19 related shutdowns in first quarter of last year.
Advanced material sales were down two 9% on software domestic demand, partially offset by higher sales of medical and Geo synthetic products.
In terms of profitability segment, EBITDA grew by $1 $5 million or 22%, primarily due to volume and productivity.
And the abuse EBITA margin of 13, 5% was up 160 basis points from prior year.
Turning to slide eight I'll discuss the results in our thermal acoustical solutions or cash segment.
Automotive demand and the first quarter remained robust despite global supply chain issues that impacted our OEM customers.
First quarter sales of $91 million were up eight 7% from prior year with parts sales growing 11, 9%, partially offset by lower tooling sales.
Part sales were up in all regions.
The task team eliminated higher cost temporary labor and reduced higher cost outsourcing of select parts as we saw a rapid decline and COVID-19 cases throughout the first quarter.
These factors combined with continued operational improvements resulted in a sequential EBITDA improvement of $2 $8 million and EBITDA margin expansion of 290 basis points to five 2%.
That concludes our review of the first quarter segment results I'll now turn it back the Sara for her closing comments.
Thank you Randy let's turn to slide nine as we complete the successful execution of our expanded specialty filtration of investment we have turned our focus and earn of towards the grow and differentiate phase of our strategy, including our innovation pipeline and.
In February we were excited to share the lydall hepa filtration products have successfully made it to Mars book.
The box of the module Annapolis perseverance Rover the.
Lots of the module powered in part by Lydall specialty filtration and Knowhow is working to extract enough oxygen out of the Mars atmosphere to enable future of man's landings and exploration.
Closer to home we are continuing gets all of this world those pressing challenges.
Our strong innovation pipeline, which addresses key global Megatrends will support the post pandemic economic rebound.
Stricter industrial emission regulations will drive continued demand for higher performance outdoor air quality solution.
And for high performance sealing solutions across a myriad of end use applications.
And ultra low temperature insulation for cryogenic applications remains robust.
Recent announcements related to the domestic infrastructure investment are likely to continue to benefit our G. O synthetics business, while the accelerated E V adoption and Leverages, the lydall deep OEM customer partnership and engineering expertise and vehicle light weighting thermal management and acoustical abating.
Net product.
From our expanded specialty filtration center of excellence to our unique theory of it he said that thermal insulation products, but it saved multiple large scale automotive lunches lydall continues to punch above our weight class and further solidifies our position of the go to resource for specialty.
Tracing and advanced materials innovation for our clients.
In closing, we remain confident and the achievement of our and they should target and our execution roadmap and our ability to deliver long term profitable growth.
With that let's open the call for questions.
We will now begin the question and answer session to ask the question you May Press Star then one on your telephone keypad.
If you were using a speakerphone please pick up your handset before pressing the keys.
And at any time of your question has been addressed and you would like to withdraw your question. Please press Star then two.
At this time, we will pause momentarily to assemble our roster.
The first question comes from Chris Moore with C. J S Securities. Please go ahead.
Hey, good morning, guys. Thanks for taking a few questions good.
Good morning, Good morning, Chris Good morning, Good morning, and maybe we could start with the with the EBITDA. So obviously Q Q1, EBITDA very strong 24.4 million.
You know very Simplistically, if you annualize that you're at you know 97, and a half million can you kind of walk through the the puts and takes as to why the 97 million number you know could be higher low things like seasonality of the new melt blown capacity and Q3, you know showing strength things like that.
Sure. Chris This is fair I'll I'll take a stab at it and I am sure Randy away and.
And if need be so.
Thanks, again, and reflecting on the first quarter.
It reflects the strength of of lydall portfolio as well as our ability to flex. According to customers' needs I think as you heard and the remarks, we have strong demand really across the portfolio.
And we are realizing that and also keep in mind the expanded installed base that we delivered here in 2021, starting at the very beginning of the year and we have two new machines coming online here in the near future.
As well as the natural seasonality that would say that are our second and third quarters are typically a.
Higher and higher in general so.
And I hope that gives you enough perspective to think about it and the non linear way.
Right now that's the start but I appreciate it.
Maybe maybe I'll just switch to test for a second so.
And again tests revenue very strong up almost 12% adjusted.
Adjusted EBITDA margins improved 290 basis points to five two per cent what would it take to get back to the 10% EBITDA margins that you did in Q1 of 'twenty.
Sure. So we've talked a lot about pads right and we know what happened in 2020 and what actions we took.
And and have signaled that we're doing what's within our control to not only stabilize the continue to transform that business back to where it should be and indeed will be the first quarter.
The improvement reflects that.
And what I would say is at its lack.
And that's about what it's going to take we're doing what is required to get it there.
And making sure that we remain flexible to is still tumultuous supply chain.
And and flex of according to the demand of our customers, Chris So I have no concerns about our ability to get there when we do I think is.
And to some extent outside of our control based on what's happening and that supply chain right now, but my expectation is with the actions that we've taken and with what we continue to do and the improvement we see and the overall operations.
Broadly that the.
We will we will certainly get there its demand.
And the supply chain and start to.
Even out.
Got it and I appreciate that.
And last one from me just.
Talking about Melbourne and little bit so.
The expanding the milk bone capacity should be at full capacity, probably some some time and in second half of this year. So.
If you if you match that against the COVID-19 backdrop.
Is it reasonable to assume that the P. P. T cells would peak in 2020 two and the first of all is that a fair statement and secondly does that dovetail with when you would expect to really be ramping on the higher and commercial and residential filtration units, that's being driven by the enhanced their quality requirements.
Sure.
Dissect that a little of that first in terms of when the capacity comes online I think I mentioned and and our remarks that the first of the three of machines with the up running and at full capacity.
Very very early this year and the knowledge and experience that we now have and that.
Gives us great confidence that the second and third machine will come online no later than the very beginning of the third quarter with the expectation that they are running at full capacity there to four.
That's the timing the second of all of it you said.
We have we have said and and it and it holds that we have customer contracts in place for much of that capacity across the three machines and are purposely keeping some of that capacity open. So that we can ramp up the production of.
The IQ material coming off of this expanded.
The capacity and yes. The expectation is that we are doing so in 2022 and and at finding a a more.
More of natural equilibrium at the point that it that it settled out 'twenty 2020, two and beyond really 2023.
The the pipeline and the customer development work is well underway and it will we will deploy the capacity that we have the according to the demand and an opportunity thereof.
Extremely helpful. I'll jump back in line. Thank you very much thanks, Chris and I Express.
Again, if you have a question. Please press Star then one on the Touchtone phone the.
The next question comes from John French Rub with Sidoti and company. Please go ahead.
Good morning, sorry, Randy a great quarter.
Sorry.
On the on your last comments.
And I'm curious if there are any startup inefficiencies when you're when you bought the new loan production line up and the first quarter and if so can you quantify what it was.
So you know as I mentioned we.
And he stood that machine up and.
And really.
Under budget and faster than we anticipated.
And we're running at.
Greater than kind of the business case, we ease.
And in advance of what the expectation was and.
And it's why I have the confidence that I do and our execution here on the second and third lines.
Okay. So so this is pretty much the max or the anticipated margin contribution from that business. What we're seeing right now is that a fair assessment.
No no.
Yeah.
Yeah, I would say no and because I think you know and.
The performance materials business there are multiple.
Businesses and applications that we deliver there and and you know.
And we see strength across that entire portfolio.
Growth in terms of demand and mix.
And I think that you can expect to see further margin expansion from that business and the ensuing quarters.
Could you just remind me what businesses are a drag from <unk> P M.
What businesses are wide cleanup of.
Dragging down the offer of performance.
And what what are dragging it down.
Hello through and so I mean, if we if we start from a base of what the EBITDA margins were last year and this business Sean So in Q1 of 2020.
They were at 16%. So now you know now we're at 26 and a half per side. So what I would tell you is the combination of factors is driving that increased margin.
Including the volume, we're getting and the leverage on the fixed cost base for the sealing products.
Remember that.
We will see even more expansion given the backlog and the demand, we're seeing and that business because we just exited one of the German facilities that was.
Our facility the debt manufactured those sealing products and as.
And as well as you know what we talked about the cryo.
And the Melbourne, and so you know I don't think it's a matter of of what's the drag I think it's a matter of what increased the the margin substantially and will continue to do so based on the you know the demand, we're seeing and all of those key markets.
Got it and then and has.
All of the labor cost issues behind you could sorry kind of sounded like you said, you're just the volume leverage going forward and the amaze suggests to me that the labor cost issues or something in the rearview mirror.
Yeah, So John as I mentioned in the remarks right. The the high costs temporary staffing the measures that we had to take and 2020 and we recovered from the Q2 shutdown and and all of that that came thereafter.
And is concluded.
Okay.
Part of the 10-Q the had mentioned there was still some of the in the quarter.
It's the work of whatever but maybe I'm wrong, right, but that island, yes, I would say that.
And we're sitting here.
The quarter has concluded.
And right and I'm answering and real time and yes. It is okay that that's the only yesterday and it's exactly that sits behind the perfect.
And and so he has suggested large project works coming back across both of these segments of our two segments and and that's benefiting you and that also the case.
The large project works, yes, we mentioned and like the T N W business.
And you know as the industrial filtration and requirements increase and the demand for ever improving technology and capability is there, we're seeing that and and our backlog across our businesses that do that work of contribute to that work, whether it's outdoor or indoor air quality.
Applications.
Great and one last question I guess for Randy.
The the interest expense savings that you mentioned and your comments I guess, there's two questions here was the forming and savings for the balance of the year was that versus a year ago and secondly, I know you had a hedge in place the kind of helped you with the Euro dollar rate is that no longer part of the mix.
So so yeah, John and answer to the first question. So the $4 million and interest expense savings is in the year. It's in 2021. So what we had previously guided with regards to full year interest expense was $14 million, so that puts us at around <unk>.
$10 million and the specifics around that are and our old credit agreement, we had a LIBOR floor of 1% that is now eliminated.
Plus the pricing going forward and currently we're on the pricing grid there'll be a savings of an additional 125 basis points. So the combination of those two.
<unk> will generate savings of of more than 200 basis points from where we were before and that's how you get to the $4 million of savings in 2021.
With regards to I think you're asking about the I think you were asking about the cross currency swap. We do have currently a cross currency swap in place between the U S dollar and the Euro. We also have an interest rate hedge in place. So I don't know if your requests.
And we're asking about the interest rate hedge or the cross currency swap and we have I was actually.
And with the interest rate hedge since the since you've read the the debt I was curious if that's still in place and it's the P&L.
It was the same day one place, yes, that's correct.
Okay all right.
And I'll follow up if you want the definitely top of thanks to my questions of burner again, great quarter.
Sure. Thank you John.
The next question comes from Arvind singer with G O sphere of capital. Please go ahead.
Thank you good morning.
Great quarter, guys and I'm glad to see you guys are buying your shares back, although I guess I'm, a little bit concerned with the liquidity.
Yeah being somewhat limited the share buyback will not help that so how are you thinking about that.
Of cash returns of shareholders balancing you know are the different factors of play here.
Sure and thanks, I'll I'll take that and I'm sure Randy will comment if if he.
And if he wants to as well I think you know how and how the.
The share repurchase announcement is intended is and it reflects the confidence that we have and the strategy that we've laid out and our execution roadmap thereof.
And it reflects the the balance sheet and the ever strengthening position of the balance sheet and it's consistent with our capital allocation strategy in terms of where how we would deploy capital and frankly it gives us the optionality that that if we see that opportunity exists.
Given the volatility the Tonight, and our stock price and the stock market and that.
And that we would.
He would be able to opportunistically exercise that and and it again is just consistent with the strategy our confidence in it and our ability to execute what we've done where the balance sheet is and what we've articulated the capital allocation strategy to be.
And the other thing all of that our vendors with with the liquidity cash on the balance sheet, where we stand now $88 $7 million. In addition to the credit facility. We've expanded the capacity from 304 million to $346 million that gives us the available liquidity under the <unk>.
Of all of our it expands that significantly practically doubled from $42 million of available liquidity on the revolver under our old credit agreement to now $84 million of available liquidity on the revolver.
Oh, great. The second question is the more of kind of trying to understand the strategic imperatives.
But it is one of the company are.
One of the strongest things, we're seeing and be a industrial space is the whole energy transition slash green check opportunity of dog light all of this unique and having the filtration and you know opportunity, which is kind of which is the.
Which of the unique strength to have and is likely the last for a while but but in terms of the energy transition.
And I know you mentioned and you better of the past about evs and you'll be positioned the but I would assume that you know the amount of noise abatement or filtration needed.
And.
Yeah.
The car and it's significantly less.
Ben and of conventional internal combustion engine sort of how you're seeing the opportunity of said, whether it's carbon capture or.
LNG or renewable gas and be the renewable diesel or hybrids and you know that whole space is that something where you.
You have technology that gives you the long term yeah of course.
Most of them on that or is that something about the wood looked at it as an area to the two off the charts to really get towards the rest of them.
Yeah, our a and good question I mean, so there's a lot there right.
And so rather than the speak off the cuff, what they take a few components of that to answer that so let's start with the EV electric vehicle conversation I I've I've.
Stated and and we'll restate that when you look at the transition from internal combustion engines to hybrid vehicles to electric vehicles.
Lydall is very well positioned to support our global Oems through that transition.
And and we believe that four of lydall that that transition will be a tailwind for us because of the engineering challenges that exist.
And the nature of the products that we make and the materials expertise that we have coming to bear as they work to solve those problems and I mean, the acoustical abatement is above one but really when you think about it.
The the protections required and our and our electric vehicle and different than and internal combustion engine and the need for ever increasing light weighting.
Fibers based products are a wonderful solution to those and and the combination of our know how and that space combined with the material that kind of of experience that that can go into the manufacturing of the part we believe.
And are seeing a the there being some real strength there beyond the V you talked about.
The the the cryogenic and or a different.
Sources of energy and what I would say and I I I touched on it in the March but we are certainly seeing and.
Significant demand for our solutions and applications around.
Temperature high temperature of extreme temperature environments, and we have a solution today and even more important and I think is a continuing pipeline of solutions to.
To address those kind of extreme applications.
And whether it's the LNG, whether its ethylene whether it's hydrogen transport as an example, the.
So that's the work that we do today and a pipeline that we are actively working on with with customers and that space.
Great. Thank you.
Thank you Arvind.
The next question comes from rent and guessing with Neuberger. Please go ahead.
Hey, guys.
Hey, good morning Grant.
Uh huh.
This is the claw some of us.
And the area of who's in filtration, where.
Uh huh.
The the mask opportunity sort of holds in there and the industrial opportunity sort of accelerates.
Such that we may actually need to bring on additional capacity does that.
And is that just way too optimistic or is that something that you guys.
I feel like you need to be pulling the trigger on and the next maybe 12 months from now and that's sort of like a decision point.
So Randy you know it is a good question.
And and I will answer it by saying.
And you know it.
Any further investments that we make would be consistent with the strategy that we have and the portfolio of focus that we have.
And as well as the financial expectations that we have for any capital deployed where I sit today and and looking at the pipeline that we have the capacity that we have and the and the engineering and application capability I and I am.
And very comfortable with the footprint decisions that we've made and yet when you ask the question a year from now right Oh as we know a lot can change and and we would make decisions consistent with the strategy that we've articulated and the expectations there of.
Yeah.
If we were to need that what I would say is we are bringing on.
Manufacturing capacity this.
And this year and 2021 that we have strong customer demand for for both current products and innovative products coming through the portfolio and we continue to shrink and that innovation portfolio, which would inform any further capacity decisions and organic investments that we might make.
And <unk>.
I guess asked another way.
It's the P P and the opportunity a level of demand.
Proving a little more sustainable slash, maybe growing the growth orientation and versus what you would've expected maybe six months ago, because I know you've been bullish on book.
Oh God friction of it yes.
What I would say is you know the fact that we've got long term customer contracts.
More of that capacity that we're still bringing online speaks to the strength and sustainability of that demand and.
And the.
Innovation pipeline that we have in parallel.
And towards or from primarily focus towards the I a queue.
Portfolio speaks to strong demand all around.
Okay, great. Thank you.
Thanks Ryan.
This concludes our question and answer session and Lydall is first quarter 2021 earnings conference call.
Thank you for attending today's presentation you may now disconnect.
Okay.
Okay.
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Yeah.
Okay.
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Uh huh.