Q1 2021 Teledyne Technologies Inc Earnings Call
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Ladies and gentlemen, and thank you for standing by and welcome to the Teledyne first quarter earnings call. At this time all participants are in listen only mode. Later, we'll have a question and answer session and instructions will be given at that time. If you should require assistance during todays call. Please press Star then zero as a reminder, today's call is being recorded and actually the constant.
Your host Jason and Bentleys. Please go ahead.
Good morning. Thank you everyone. This is Jason and then we use executive Vice President and I'd like to welcome folks to our first quarter 2021 earnings release Conference call. We released our earnings earlier. This morning before the market opened joining me today are teledyne.
As executive Chairman, Robert Mehrabian price.
And it and CEO Albert Jelly, Senior Vice President and CFO, Sue main and SVP General Counsel, Chief compliance Officer, and and Secretary Melanie Civic after remarks by Robert Al and Sue we will ask for your questions of course, though before we get started our attorneys have reminded me to tell you and all forward looking statements made this morning.
And are subject to various assumptions and caveats as noted in our SEC filings and our periodic earnings releases and in order to avoid potential selective disclosures. This call is simultaneously being webcast and a replay both via webcast and dialogue and it will be available for approximately one month.
Here is Robert.
Thank you, Jason and good morning, and thank you for joining our earnings call.
We began 2021 with the best first quarters Sands earnings operating margin and cash flow and the company's history.
Furthermore, we achieved these GAAP results, despite incurring $39 million or <unk> 79 per share of expenses related to the pending acquisition of player.
Excluding these non recurring charges earnings increased 39, 2% compared to last year.
Operating margin increased 426 basis points and <unk>.
Free cash flow nearly doubled.
In addition, and very pleased with the breadth and financial performance across Teledyne.
Year over year sales increased in nearly every major business category.
Commercial aerospace, which is now only 4% of our total sales.
And the recovery in our short cycle commercial and business is unfolding nicely and our government businesses are also growing and performing well in both cases strongest within our digital imaging segment.
Also in the first quarter.
We received all time record orders with a book to Bill of 115, ex resulting in quarter and backlog of approximately one $8 billion.
Given our strong first quarter, we now think and reasonable outlook.
The total company organic sales growth in 2021.
These are approximately 6% led by forecasted growth of about 10% in digital imaging and excluding flu.
And now with respect to the fair acquisition.
Over the last few months, while transaction and Certainteed progressively increased teledyne perform in person visits covering 90% of all clear on sites.
Several multiple location.
Most importantly, we were also granted access to the operating management and all pumped key functional areas to summarize.
People.
Products technology and manufacturing are outstanding.
And now even more excited about the prospect for a player as part of the Teledyne family.
Regarding timing.
Respective stockholder votes are scheduled for Thursday may 13.
And and pending approval, we expect to close early the following morning.
Assuming closing occurs as planned.
We expect to update our outlook in the July earnings release.
And include clear.
We remain confident.
Media and pre tax annual synergies greater than $40 million Our Inc.
Continue to expect EPS accretion, even on a GAAP basis in 2022 with EPS accretion.
Excluding our <unk> being substantially greater.
I will now comment on the performance of our four business segments.
Thank you Robert.
And instrumentation segment overall first quarter sales increased zero or <unk>, 5% versus last year.
Sales of environmental instruments increased 5% from last year.
Sales of most product categories increased with the strongest year over year organic growth reached operating from the gas and claim detection products acquired in 2019.
Sales of our electronic test and measurement systems increased four 8% year over year.
Sales of marine instrumentation decreased six 7% and the quarter. However.
Operating profit increased due to aggressive cost management and business simplification and standardization initiatives.
Overall instrument segment operating margin increased 291 basis points to 27%.
Turning to digital imaging segment.
First quarter sales increased six 7%.
GAAP segment operating margin.
It was 19, 7% and increase of 200 basis points year over year.
Now turning to the aerospace and defense Electronics segment.
First quarter sales declined three 3% as greater and defense sales were more than offset by a 28, 5% decline and sales of commercial aerospace products.
GAAP segment operating margin increased over 1000 basis points to 18, 7%.
Versus eight 6% and 2020.
And the engineered systems segment first quarter revenue increased eight 5%, primarily due to greater sales from defense and other manufacturing programs as well as the electronic manufacturing services products segment operating margin increase.
242 basis points, when compared with last year.
I will now turn the call to Sue who will offer some additional commentary regarding the second quarter and our full year 2021 outlook. Thank you Alan Good morning, everyone. I will first discuss some additional financials for the quarter not covered by Robert and App and then I will.
And as Scott second quarter, and full year 2021 outlet.
And the first quarter cash flow from operating activities was $124 9 million.
Compared with cash flow of $76 $5 million, let the same period of 2020.
First quarter free cash flow that is cash from operating activities less capital expenditures was $107 3 million and the first quarter of 2021, compared with $56 $2 million and 2020.
Excluding after tax cash payments related to the free and transaction first quarter free cash flow was $110 $1 million.
Capital expenditures and $17 6 million and the third quarter compared to $22 million from the same period and 2020 day.
Depreciation and amortization expense from $29 3 million for both the first quarter of 2021 and 2020.
We ended the quarter with $9 $1 million and net debt that is approximately $3 billion to $4 billion of debt less cash of approximately $3 3 billion.
Higher cash and debt balances at April four 2021 included the proceeds of debt encouraging plan and the cash portion of the consideration for the free interest acquisition.
Stock option compensation expense was $4 2 million from the first quarter and 2021 compared to $7 $4 million for this okay and 2020.
Turning to our outlet management currently believes that earnings per share and the second quarter, and 2021 will be and a range of $2 and 85.
And $2 95 per share and for the full year 2021 earnings per share outlook and $12 to $12 and <unk>.
And each case is do not reflect the pending acquisition and floor and related acquisition and financing costs.
And 22021 full year estimated tax rate excluding discrete items is expected to be 22, 6%. In addition, we currently expect less discrete tax items in 2021, and with 2020 I will now pass the call back to Robert <unk>.
Do you assume we would now like to take your questions Sean if you're ready to proceed with the questions and answers. Please go ahead.
Thank you and ladies and gentlemen, if you do have a question for todays conference. Please press one and then zero on your Touchtone phone, you'll hear acknowledgment that you've been placed and Q you may remove yourself from queue at any time by pressing one zero again. Our first question is going to come from the line of Ken or I'm, sorry, Greg Konrad from Jefferies. Please go ahead.
Good morning.
And Greg.
Maybe just to start on margins.
And I get to full year, I mean, it seems like at least and instrumentation and engineered systems Youre, probably running well ahead of the guidance that you laid out last quarter can you maybe just update us on your thoughts on organic margins for the year.
Yes.
Greg.
Instrumentation.
When we started the year.
Because it's primarily insurance cycle business, we were not sure about commerce revenue and.
And therefore, our margins we would have.
Tell me projected margin improvement of about 10 basis points.
We think the margins are now gone and be closer to 110, and 40 basis points for the year, which is an increase of about 130 basis points.
Moving to the second and one which is engineered systems that you mentioned.
We had very strong first quarter.
Primarily because we shipped all of Florida turbine engines.
That was due to.
To finish.
That production cycle and the first quarter. So our margins were a healthy 14 over 14, 2%.
We were initially projecting margins for the year of and about 18 basis point improvement current day, because primarily health and per score in there and we think overall margins for this segment would increase too.
About 180 basis points.
The rest of the year moderating closer to the 12 to 12, 2%.
This business as normal and the experience.
I think those words into two areas that you asked and Bud.
That's helpful. And then you mentioned that you.
Visited over 90% of the FLIR sites I mean, any update just when we think about synergies or and maybe some of the potential longer term revenue synergies just anything surprising as you continue the diligence into the close.
I think the most important thing that we found out and our visits.
And the quality of the operations.
Operations and the people, we really haven't focused yet on <unk>.
Revenue synergies while.
We've looked at synergies in the operating area.
Primarily by using some of the methodologies Greg that we've used in our own operations such as.
Procurement savings, which have been substantial and Florida last year and are supposed to be the same this year.
As well as.
Some of the cost reductions.
That we mentioned earlier of these of the.
The $40 million of cost savings that.
We expect to enjoin, the first year and growing to $80 million over time.
And those does would be the synergies that at this time in terms of revenue synergies, we haven't really looked at that very closely and frankly, we operating.
And different markets.
And all the things that we can all be USD Luca very quickly would be how do we jointly go to market and in areas, where we have complementary products.
And then just last one I mean, I remember back to <unk>.
You gave us adjusted numbers because there were large expenses and you kind of did that this quarter and I'm, assuming that will continue going forward, but any updated thoughts on even if it's not the present the number at least presenting ex amortization just given that's probably going to be fairly accretive as you get into next year.
Yes.
I think.
The.
EPS accretion.
I assume.
You need to be.
Was substantial.
Partially because there we really improved margins.
More clear on the other hand.
If we exclude intangibles.
As you said would be substantial and the one time cost debt we will.
We think that in 2022.
And we should have.
EPS accretion of about 20%.
And more.
Of course again, excluding the intangibles, which is substantial.
The reason for that is twofold, one is the savings what I mentioned.
And there is even in last years.
Revenue and earnings that they had in 2020.
The margins operating margins after all of those onetime costs and on a GAAP basis.
Were 16, 5%, which to US is a very healthy margin as you know, we this quarter and we've been up to 17.
17 five.
But 65 is very good and if we can improve that and obviously.
And we would get substantial accretion.
Ex intangibles.
Thank you.
Thank you Greg.
Thank you and then next we're going to go to the line of.
Blake Gendron from Wolfe Research. Please go ahead.
Yes, thanks for the time this morning.
Wanted to follow up on the synergy question, maybe not so much focus on cost or revenue, but working capital here in terms of supply chain overlap is there any way we can think about maybe free cash conversion on a standalone basis versus.
Incremental synergies there when you combine the two entities.
Yes.
I think so.
And again, we got.
To do this properly blank or have to exclude the one time charges because we while we have some hands on R&R charges at this time for diverse growth.
Year, we don't have a really good handle on what players charges would be.
The one area I think the conversion overall.
And was.
He is going to be better than 100%.
Having said that.
<unk>.
In inventory buildup.
That's clear.
From what we saw in 19 and 20 less substantial non partially because of the.
Elevated skin temperatures.
And programs that they enjoyed so they have a significant inventory buildup in data and some other areas that we have to look at very carefully and.
And we may have to drive those up we may have to write those down, but we'll see as we get to it.
But overall, our projections are that we.
We ourselves should have.
Free cash flow debt surpasses slightly surpasses last year and last year was a record year for us at 540.
$7 million and $445 million. So if we can exceed that ourselves and do well with the free cash.
Cash flow, that's very important slide because we intend to pay down our debt.
As fast as we possibly can over the next two years.
That's really helpful color wanted to switch gears to digital imaging you called out strength in some of the short cycle markets, specifically industrial scientific and geospatial.
Does that include healthcare, because we're seeing hospital volumes improve so I'm wondering if that could be and incremental tailwind as we move forward here and the vaccine rollout and and normalization and then very small exposure to commercial aero and in digital imaging, but wondering how you expect that to evolve over the medium to longer term.
Let me, let me start with the healthcare.
Health care year over year.
19, 2019 to 2020, we had about a 13, 7% decrease in revenue from <unk> 255 million to $220 million.
This year we.
We're starting to see some.
Improvements.
And we anticipate.
Between our.
Cmos X Ray.
Panels.
And as well as some of the.
Equipment that we surprise.
Florida X Ray sources.
And we would have an increase of about 9% over last year to approximately $240 million. So that kind of speaks to what you just said.
And the recovery is a little slower than we anticipated, but it is that we are getting some really good orders in that domain more in the flat panel displays with the X Ray sources.
Lagging a little bit, but still coming up.
Going back to the question Lisa.
Yes.
Regular.
And the commercial systems commercial Aero and digital imaging.
The small cell.
Second.
And not that dependent on.
The airline traffic is different.
Than anything else is primarily in space.
Domain.
And we have not seen any deterioration there and actually we think that our aerospace and defense and the debit agents and imaging domain.
And we think we'll see about a 7% improvement in revenue. This year from $2 70 last year two may be $2 90. This year. So.
The only area of aerospace that we've taking.
Some punishment is in the aerospace businesses and Teledyne.
Norm of defense and aerospace domain.
Makes sense really appreciate the time, thanks for the answers.
Sure.
Thank you and.
Next we'll go to the line of Jim Ricchiuti from Needham and company. Please go ahead.
Hi, good morning.
Just a couple of questions just you alluded to the fact that <unk> seen a little bit of.
Stronger margin profile and parts of the instrumentation business I'm, just wondering as you look out into <unk>.
The second half of the year.
Where do you see the most opportunity for margin expansion and the different business units.
It sounds like you are with healthcare coming on digital imaging margins look better.
Yes.
If you go to instrumentation.
We did have some significant improvements in margin and.
And environmental and test and measurement in the.
Sure.
First quarter and we expect those to continue for the rest of the year. We also had some improvement and margin in the marine businesses, even though revenue as al mentioned was down somewhat weaker.
We think.
The revenue will catch up.
The rest of the year and.
And as that does the margins there and we can improve also so we think overall and instrumentation.
We have the best margins and the environmental area about 23%.
Second best margins in our test and measurement over 21% and marine is approaching 19 over 19% when you're rolling it all up we're going to get close to 29% and instrumentation and I think that's going to be healthy, Florida, especially from marine as we.
Spec because of oil prices going up to about 65 currently.
And if that improves then I think that segment is going to do really well and Thats why I said our outlook for the margins improved a 130 basis points since January of this year.
Got it and.
Robert.
And all of the well publicized reports about.
Component constraints and now maybe you want to.
Response, and this are you guys seeing any disruption and the business from this or are you able to manage and supply chain well enough.
And both first ideas.
And we're seeing constraints, Jim Theres no question about debt.
Royalty and the <unk>.
Electronics.
Martin components as well as in free.
And circuit boards.
It's affecting and lot of our businesses.
But having said that.
We have even though we do have Barry.
Tight control of our inventory.
Have accrual buying some of the credit income components ahead of time and the other thing is because of our collaborative and cross.
Teledyne effort.
And procurement weighted.
We're able now to approach our suppliers us one.
Fairly large customers.
And get their forecasts in terms of.
Their timelines for delivering product and putting orders ahead of time.
Having said all our debt.
And we're managing it.
But.
We also.
Job.
Getting products from.
Foundries for example.
That come to our wafers that we get in that case, we are fortunate because the guys who supplies less wafers are also our customers. So and some areas. We think we are going to be okay, and other areas I'm very cautious be optimistic but.
This thing Ken Great day spin out of control and.
And then we'll have to deal with it again.
Yeah. Okay. The last question. Thank you for that.
And last question, just with nice bookings number for the quarter and backlog and I'm just wondering as we think about.
The way, you're characterizing the business and.
And the acceleration and growth debt.
It seems to be suggested and the recent filings looking out to next year.
Where do you see the potential for accelerating growth and which areas of the business I assume some of the businesses that have been weaker that recover but I'm just wondering if theres anything else you can call out.
I think our primary area of digital imaging.
Well for me to say digital imaging is going to grow organically, 10% year over year, I don't know firebird and done something like debt. So it's pretty extraordinary stu to kind of predict that and I think we'll end the year with the book to Bill and digital imaging of one point or maybe 110.
So thats our first area.
I think and their instrumentation area.
And we are right now just over one but a lot of that short cycle businesses.
Marine comes back as we expect and the other areas come back guys and we expect we think.
Especially and test and measurement will recover as much as 8% growth in environmental and 6% six 5% and.
And if marine comes back that would be another 2%. So overall I think instrumentation.
Should give us about 535, 2% for the year for US that's again very good because those are the highest margin businesses engineered systems, I think would be fairly flat year over year.
Don't expect aerospace to really come back that much. This year, it's probably a two year cycle, but our defense businesses are $1 billion. Okay.
And so anticipate in aerospace and defense combined to enjoy a 4% margin 4%.
Revenue improvement this year.
All of that together and Youre going to end up with about 6% towards the company, which would be one of our healthier.
Organic growth rates and revenue in the recent past.
Okay.
Very helpful. Thank you.
Thank you.
Yeah.
And then next we're going to go to the line of Joe Giordano from Cowen. Please go ahead.
Yes.
Hi, everyone and good morning.
Good morning, Joe.
Yes, I just wanted to talk about semiconductor and test and measurement and and how youre thinking about.
And sustainability of strength there given some of the plans from some of the large manufacturers and I know youre on that more on the R&D side, but just curious to hear your color there.
Test and measurement.
Let me start there.
We are really enjoying a good year and test and measurement primarily.
Because of being able to put new products continuously.
We have to as you know we have two areas that we focus on day one of them is a similar scopes and.
And the other is protocols, which are the rules that chips communicate with one and others.
We continue to put new products and like last week alone, we announced three products and a similar scope and protocols, but more importantly, what our guys have been able to do is marry those two businesses. Those two products together so now people can.
The protocol.
Development and analysis using del Sylar scopes.
Real time.
Our observation of the signals and that is that's going to be a very good for job for debt area.
You also asked me about.
Semi.
And in digital imaging is primarily where we focus on the semi market.
And there.
As mask and wafer inspection.
That's been a really good market for us.
If you look and if I look at our growth in vision systems, which includes flat panel displays as well as semi inspection, we anticipate that year over year to be about 12%, 13% revenue growth. So that kind of speaks for debt and then lastly, I would pause.
And to us one.
Samsung of wide digital imaging.
And relative relevant and semiconductor markets are doing so well for us.
We do have a product that comes out of our Mems foundry in.
Canada.
And these are pellet accounts, which are very slim.
<unk>.
Yeah.
110, talented human hair thickness, but 6% to 18 inches in diameter.
Consumable products that are used in extreme youll reiterate.
Competency for very fine.
Semiconductors day, essentially our screens that protect the wafers below them and.
In that area, we've really done well and have not captured both marsh and guy and we have a wonderful customer data and so overall and to answer your question test and measurement I talked about and in the semi the products that we supply to them are doing crazy growth.
And just a follow up on one of the other questions asked already about.
And your ability to source components and the scarcity going on.
How do you get comfortable with <unk> ability to do that historically and now that you are taking over there and your ability to be able to source that much and additional debt you'd need to cover their operations as well as smoothly as you've covered you're wrong.
The answer is Jim I don't know yet.
But having said that.
We are.
Because as I mentioned, they do have substantial inventory and we have to obviously dig into that to see what areas and <unk>.
I think that.
And I would be.
Right now and area that we will have to bring our procurement to it on the other hand.
Clear also gets wafers and they also make a lot of their own sensors and the crude and uncalled side. So as long as we can enjoy having debt.
Wafers and as long as we can enjoy doing some ups and development, especially in India, and Tim an IDE for the cold and Vox.
<unk> ex in for the.
And <unk> I think it should be alright, but having said all of that we just haven't looked at debt deeply.
Anticipate that there'll be some challenges but.
We'll deal with those just like we did with challenges that come up and our businesses.
Thank you.
Thank you Joe.
And once again, ladies and gentlemen, if you do have a question. Please press one and zero at this time next well go to the line of Andrew Buscaglia from Burma and Bird capital markets. Please go ahead.
Okay.
Good morning, guys.
Good morning, and I was hoping you could could.
Could you talk a little bit about.
So just to clarify digital imaging or you're calling for.
10%, both from a full year growth and he gave the sub components there and then.
I don't believe you gave you talked about.
A couple of the segments I don't believe you talked about margins for <unk>.
Digital imaging or A&D electronics, which.
And at least for A&D had a really strong start to the year just so what's kind of your outlook on those margins there.
Okay. Let me, let me start with a day margins. Please.
Right now we think.
Digital imaging margins.
Should go up to or up about 150 basis points over last year.
And just north of 21%, let's say, 21%.
<unk> net based on defense, we're going to have significant margin improvement as al mentioned, we had a really good uptake and the first quarter, partially because we had one time charges last year and in our aerospace, but nevertheless, having said that we think the margins are going to be approaching 89, 5% may be 18.
Six which would be 490 basis points improvement over last year.
And engineered systems is going to be relatively flat.
You take the instruments margin that I mentioned, before and which was 21, 29% and bringing it to all the way down we think.
Company operating margin.
I mentioned in January that we think we thought it would be about 17%.
Now we are projecting the total company operating margin to be closer for the year to 17, 6%.
Sure.
Okay. All of this is excluding of course anything that has to do with the acquisition of <unk>.
I don't know Ed and I answered all your questions.
And and digital imaging.
Top line, there and they gave some sub component.
Look there, but I think you had called for about 9% growth.
Per the year is that closer to 10, and you were saying yes.
And it is closer and.
Led by our <unk>.
Vision products cameras, including scientific camera sensors.
As I mentioned, Florida semi flat panel display et cetera, and.
Sure.
Everything there is.
<unk> going to do well and the only area that may be flat year over year, as our geospatial and everything else seems to be growing and three new world.
Okay and then.
Lastly, I yeah.
Little bit difficult and just getting to the midpoint of your guide and I think it might be yes.
Are you should we be modeling and some.
From transaction costs to add back or.
And secondly, the interest expense was elevated this.
This quarter, if you I guess, you can't really assume a flatline or you got to add that back and how do you I guess, how you would get to.
The midpoint of your guide with some other below the line items.
Well.
<unk>.
If you look at the guidance that <unk> provided the 12 per ton.
$12 to $12 20.
That excludes transaction costs.
You have to look at it.
At this time.
And I have to look at ex.
And excluding interest and expenses related to the FLIR acquisition as well and some of the legal expenses that come above that line.
No.
Once we acquire flair.
Assuming the share.
Shareholders approved the transaction.
And then what we will do is we'll have to put the interest.
In the for the total company.
As part of our <unk>.
Moving forward normal.
Costs and GAAP, but they are going to be some other costs associated with the transaction that we share economy substantial those would be one time charges and as we talked earlier, we call dosing tangibles.
And later on and also would be some inventory write ups and other things having said all of that the 12% to 12 20 and excludes creates clear transaction costs, which in the first growth stage.
We're about $39 million.
Five nine outfit was above the line, which was legal fees and.
Also fees for.
Bankers and.
And the rest of it.
And about $33 million was Inc.
<unk> and getting the bonds and getting.
Redeeming some of the.
Bonds that we already had outstanding so I hope that addresses your question income come July with kind of clean this up and do it.
Inc.
What did we say in April as Teledyne stand alone.
How are we looking at FLIR, what we expect to happen there and we learned a lot more about them as day do their own earnings.
I think its may 6th.
And then will project, what the combined company would be alike.
And without the onetime costs and.
And as I mentioned earlier.
We think.
And it's going to be accretive even on a GAAP basis in 2022.
Got it.
And I was hoping and Robert.
Provide a little more color on one more thing.
The S four.
The internal projections that we had for their defense technologies business was about a 12% CAGR.
It seems like you can learn more about the company here.
Thinking about quality of the assets and the people.
Are those some of those projections and something you'd sign off on that there.
And that there is a lot of growth and that defense segment, just hasnt transpired for that company to date.
Hi.
Yes, let me.
Let me start and.
Andrew if I may.
With that later precautions.
And.
We are a little up.
How should I put it with a little bit.
Concerned that maybe the projections for them and we're in a little aggressive Mds for having said that.
We have now looked at their businesses.
And a little differently then.
The way days reported in the two segments, which is the industrial segment and the defense segment, we've gone back.
And drew and looked at the businesses from a divisional perspective, the way they were in 2014 reached.
Six divisions, so we've gone back and Fortunately debt.
And did not and good enough to provide us with the financial data.
And those divisions.
And then they have added two new things to it and im going to come to defense question that your assets.
One of them is a small.
Vision product.
That they bought Inc.
In Canada point Grey, which day reported as part that there is.
Components business.
And that business.
It's fairly stable, it's a small business of the order of $80 million now coming to the next area, which is new so now they have kind of if you look at it the way I just mentioned that eight divisions the way we look at it.
The way we look at the Defense segment is really has one part of it that is really new and Thats.
Net unmanned systems, both UAV and ground based and mud systems and that is enjoyed really good growth.
Mainly because they've made some good acquisitions.
And they are also and starting with <unk> and.
And acquisition they made in 2016, <unk> dynamics, which makes it a very small uavs and day, they've enjoyed about $260 million and revenue in 2020 in debt and manned segment, which is both growth base and Uavs.
Yes.
That business I think will grow.
And I think that business will grow significantly from our perspective and.
And.
I am hoping day real growing enough to make up for some of the decrement.
And that we see from the <unk>.
Business day provide.
Elevated skin temperature products that are going to go down maybe last year, where normally 100 medium dollars go down to less than 20, or whatever and having said that so we are hoping that as you mentioned the defense businesses because of the acquisition.
Now kicking in full years that those would make up the.
And the decrement in DSD business I don't know if I've answered your question, but I think that's the best I can do at this time.
That's helpful. Thank you.
Thank you.
And at this time I have no further questions in queue.
Thank you Sean.
I would now ask Jason to conclude our conference call and Jason Thanks, Robert and again, thanks to everyone for joining the call. This morning of course, if you have follow up questions. Please feel free to call, maybe a number and the earnings release and Sean If you could end the call and provide the replay details for everyone and appreciate it good day, yes.
Thank you, ladies and gentlemen, today's call will be available for replay after 10 am today through $5 28, 2021, you may access the AT&T teleconference replay system at anytime by dialing 806, 62071041 or internationally and four zero to 90 7008.
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