Q1 2021 Shyft Group Inc Earnings Call
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Ladies and gentlemen, thank you for your patience. Please remain on the line you conference call will begin momentarily again, we do appreciate your patience. Please remain on the line you conference call will begin momentarily. Thank you.
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Good day, ladies and gentlemen, and welcome to the shift groups first quarter 'twenty 'twenty. One earnings result, all lines have been placed on a listen only mode and the floor will be opened for questions and comments. Following the presentation. If you should require assistance throughout the conference. Please press star zero on your telephone keypad to reach a live operator at this.
Time, it is my pleasure to turn the floor over to your host Jeremy pay grabs Sir the floor is yours.
Thank you Danielle and good morning, everyone and welcome to the <unk> group's first quarter 2021 earnings call.
Joining me on the call today are Daryl Adams, our President and Chief Executive Officer, and John <unk>, Our Chief Financial Officer for.
For today's call we've presentation deck, which has been filed with the SEC is also available on our website at the shift group dotcom.
You may download the deck from the Investor Relations section of our website to follow along with our presentation during the call.
Before we start todays call. Please turn to slide two of the presentation for our Safe Harbor statement.
You should be aware that certain statements made during todays conference call, which may include managements current outlook viewpoint predictions and projections regarding this shift group and its operations may be considered forward looking statements under the private Securities Litigation Reform Act of 1995.
I caution you that as with any prediction or projection. There are a number of factors that could cause the shift groups actual results to differ materially from projections and.
Although on risks that management believes could materially affect the results are identified on forms 10-K, and 10-Q filed with the SEC.
However, there may be other risks that we cannot anticipate.
On the call today, we will provide a segment update before moving on to a more detailed review of the results and our outlook for the remainder of 2021.
And we'll then open the line for Q&A.
I would also like to remind everyone that with the divestiture of the emergency response business last year on February one the revenues and expenses associated with the <unk> business as well as their on the liabilities have been reclassified as discontinued operations for all periods presented.
With this classification.
Kaisha the results discussed today will refer to continuing operations unless otherwise noted.
At this time and I'm pleased to turn the call over to Daryl for his comments beginning on slide three.
Thank you Juris good morning, everyone and thank you for joining us.
First quarter 2021 results.
Our performance and the first quarter and continues to demonstrate the success of our business strategy, which encompasses growth and higher margin product offerings within our core markets.
And increasing market share within our expanding geographic footprint and.
Ongoing productivity improvements within our operations.
As you can see on slide four the strategy.
Coupled with our commitment to invest and innovation sorry innovative products designed to meet customer needs resulted in our backlog increasing over 90% to a record $667 million for the quarter.
We are excited with this level or backlog and our strong start to the year.
We achieved first quarter revenues of $198 million and adjusted EBITDA of $19 2 million.
Please turn to slide five where I'll provide a segment update.
I'd like to start by sharing what we are experiencing with respect to supply chain uncertainty and chassis availability due to the semiconductor shortage.
During the first quarter, we saw little impact on our operations. However, based on our feedback from Oems and suppliers chest deliveries will be impacted at some level for the next several quarters.
We will continue to monitor the situation and adapting and accordingly, although with a higher than expected backlog we remain confident.
We will deliver on our original guidance for 2021.
Starting with fleet vehicles and services.
We continue to make progress and a variety of areas from.
From an operations perspective, our ongoing focus and investment and manufacturing capability continues to have an impact as.
As we set a new record and production at the Bristol facility.
The velocity and launch is progressing well.
We are slightly ahead of our ramp curve and have started hiring our second shift to accomplish the next phase of the ramp curve.
And happy with the quality of the product.
At this early stage of the launch and look forward to seeing the velocity product on the road.
Underscoring our flexible manufacturing strategy, we successfully completed the initial build a 500 truck bodies.
And our Kansas City facility.
And developing and introducing purpose built vehicles to meet our customers' wide ranging need continues to boost our backlog.
We have talked in the past about the velocity and three and are happy to report that we secured an initial order for more than 350 units.
We continue to make progress on the velocity, our two product and are preparing a demo vehicles for testing with a major customer of this month.
Moving to our specialty vehicles segment, we generated significant growth and sales and adjusted EBITDA is on.
Efforts continue to produce positive results.
The modem and market share during the quarter increased to 35% that's up over four points since 2018 and reflects the strength of our product offerings and our brand among motor homebuyers.
And as part of this effort to drive sales and market share growth, we're introducing nine new technologies.
On our upcoming 'twenty, two and 'twenty three value chassis.
Across our service value business, we've had several positive developments in the quarter exemplify our strategy and ability to create value from acquisitions.
Our Royal truck body team achieved record revenue and March while also doubling this backlog year over year.
Our recently expanded service body up to the center and Charlotte, Michigan was granted.
GM shift through status, which will benefit both oil and <unk> as we move forward.
As it relates to innovation Royal has expanded its service value offering to include and E coated steel body that meets or exceeds our competitors corrosion resistant levels now, enabling broader market use and northern states were harsher weather conditions exist and and.
<unk>, we continue to make manufacturing improvements and are on track to deliver on our integration plan.
With that I'll turn the call over to John discuss <unk> financial results for the first quarter and more detail as well as provide and update on our 2021 outlook beginning on slide six.
Thank you Daryl and good morning, everyone. Please turn to slide seven and I'll provide an overview of our financial results for the first quarter.
As Daryl indicated the shift group had a solid start to the year, achieving double digit revenue growth and seeing significant order volume that has taken our backlog to a record high.
This start positions us well, despite the current uncertainty and the broader supply chain.
Revenue for the first quarter was $197 9 million.
Up 11, 8% from the year ago quarter.
Income from continuing operations was $11 5 million compared to $11 $7 million a year ago.
Note that prior year results included a $2 six months favorable tax item related to the cares Act, which was partially offset by restructuring costs.
Taking these prior year adjustments into consideration adjusted net income increased 12% to $12 8 million.
From $11 4 million and the prior year.
Diluted earnings per share from continuing operations was <unk> 32 per share compared to 33 per share and the first quarter of 2020.
Adjusted EPS increased 13% to 36 per share from <unk> 32 per share a year ago.
First quarter 2021, adjusted EBITDA from continuing operations increased $19 $2 million increased to $19 2 million from $18 $4 million, while as a percentage of sales adjusted EBITDA from continuing operations declined to nine 7%.
Compared to 10 four.
Net of sales and the same period last year.
Let me now take you through the results by operating segment, beginning with fleet vehicles and services on slide eight.
Okay.
On Rps business, a solid first quarter working diligently to prepare for the anticipated production ramp in the coming months, while securing significant orders.
The business delivered revenue of $131 7 million.
Compared to a $100.
$7 million a year ago.
The decline was primarily due to lower cargo van up fit and field services volume, which was partially offset by increased walk in van sales year over year.
FBS adjusted EBITDA was $18 2 million versus $21 7 million a year ago.
Adjusted EBITDA margin was 13, 8% of sales, which includes the impact of preproduction costs related to the philosophy launch lower sales volumes and product mix, which collectively more than offset productivity gains.
Led by our innovative new product offerings, including the velocity and three we saw a significant order growth that resulted and FBS backlog and the $589 $6 million record high.
FBS backlog was up 38% sequentially and up a remarkable 95% compared to prior year.
While last mile delivery remains strong and contributes to a significant portion of the backlog. We are encouraged to see increased order activity from other locations, such as laundry and linen which were slower through most of 2020.
Please turn to slide nine for the specialty vehicles segment overview.
So the momentum that specialty vehicles had and the second half of last year carried over to 2021 as the business delivered strong revenue growth and motor home and service bodies.
Sales were $66 $2 million and increase of $24 9 million or 65% driven by a 56% increase and luxury motor coach chassis volume and a 109% increase and service body revenue, which is inclusive of the <unk> acquisition.
On an organic basis.
<unk> grew 41% in the quarter.
Adjusted EBITDA was $7 million or 10, 6% of sales compared to $3 7 million or 9% of sales and the same period last year.
Which was primarily driven by higher sales volumes and.
And productivity gains partially offset by mix.
This was the third consecutive quarter of double digit adjusted EBITDA, reflecting the benefits of our manufacturing initiatives and our acquisition strategy.
<unk> backlog was up 81% to $76 $9 million, which included 39% growth and motor home chassis backlog and a $26 million increase and our service body backlog again, demonstrating our ability to create value and execute on commercial synergies and our acquisitions.
Please turn to the liquidity and outlook update on slide 10.
We saw significant year over year improvement and our working capital management and quarter picking up where our team left off in 2020.
While seasonally negative cash flow from operating activities increased 92% year over year.
At the end of Q1, we had total liquidity of $136 million, including $10 million of cash on hand, and $126 million and borrowing availability.
Our current leverage ratio stands at <unk> six times, adjusted EBITDA, which provides us with ample liquidity to fund our operations and to continue to invest and our growth strategy.
We also returned $4 $2 million to shareholders and the quarter and the form of the regular dividend and the repurchase of 100000 shares at an average price of $33 45 per share.
Capex for the quarter was approximately $6 million and included investment in velocity production equipment and fabrication equipment at a number of facilities, which we are using to drive throughput and operational efficiencies across our company.
As noted in our prior earnings call, we expect Capex for the full year to be and the range of $20 million to $25 million.
Overall, we are pleased with the start to the year and the continued strength of our operations as.
And as widely noted across the industry. There is a high level of uncertainty and the supply chain currently and we will continue to closely monitor the chassis constraints and other supply dynamics.
That said given the continued strong demand and the high volume of Q1 and orders now and backlog. We believe we are well positioned for the year and are confident and our ability to offset the anticipated chassis shortfall and ultimately deliver on our initial guidance.
Based on this current view, we are pleased to reaffirm our 2021 guidance as follows.
Revenue in the range of $850 to $900 million.
And <unk>.
And <unk> $95 million to $105 million and adjusted EPS of.
And $1 65 to $1 85 per share.
Now I'll turn the call back to Daryl for closing remarks.
Thank you John.
Please turn to slide 11, where I'll provide closing remarks for the shift group.
Our results for the first quarter demonstrates the success of our business strategy the strength of our end markets and the tremendous efforts of the entire ship team.
We plan to continue investing and our future growth both organically and through acquisitions and these investments will be centered on new products and technologies to meet customer demand with a particular focus on new platforms, including EV.
And the shift group and we understand and appreciate the need for a greener tomorrow as well.
Gather customer insights and listen to their needs and a request of us.
And also evaluate the broad set of market offerings.
We feel that we are capable to be a major contributor and this transition.
Leveraging our decades of chassis development and build experience, we have begun investing and a development of a purpose built chassis solution that will efficiently aid and the customers transition to an EV future.
We will provide further details on this endeavor and the coming months and.
In summary.
We're off to a strong start in 2021 with all business units performing well and positioned to support the anticipated ramp up and our business for the remainder of the year.
With that operator, we are now ready for the Q&A portion of the call.
Thank you the floor is now open for questions. If you do have a question. Please press star one on your telephone keypad at this time questions will be taken and the order day were received is that anytime you question has been answered you can remove yourself from the queue by pressing one again, ladies and gentlemen, if you do have a question. Please press star one on your telephone.
And on keypad at this time.
Our first question comes from the.
And Dyer with Craig Hallum. Please state your question.
Thanks, Good morning, guys.
Just you talked you talked a little bit about supply chain as a primarily chassis or is it more widespread than that and I guess along those lines just looking at your backlog I think my takeaway is there was probably fairly significant upside to your guidance as the year goes along if you can if you can get all of those as.
Like is that fair to say.
Yes, Steve It is.
And with today's vehicles semiconductors seem to be pressing and every electronic product that's out there.
This mainly and the chassis, but where we're managing through the supply base, but we just want to identify it but to your point.
With the build in backlog.
And if we can get chassis.
<unk>.
Heckmann opportunities to beat the.
And the guidance.
Is it similar to a couple of years ago and it seems like we've been talking about chassis for a couple of years now as you guys probably are tired of talking about it.
Is it like a couple of years ago, where it's literally you'll get you'll get a bunch of them and you crank up the plant for a quarter and then and then you don't get any for a months.
Kind of hand to mouth like that.
Not right now, but we assume that it will get to that point and and yes.
Back and 18, when we and the chassis issue as you remember that's why we developed the velocity.
So.
And we developed the velocity on three other OEM platforms, and and now that chip issue is affecting those as well so.
And we continue to chase it and I think thats.
No.
And I don't think its going to stop right, there and as we get into the EV piece of this is going to continue to take additional.
Semi conductors and and other electronic items so.
I think it is just for the industry needs to catch up to the demand and once they do that I think it's.
And you'll be fine.
Do you have a good enough sense as to whether it's where the bulk of the impact is going to be I mean should we be bracing for a tougher Q2, and then things ease as the year goes on or is it just too.
Unknown right now.
I mean, I think if you listen to what the Oems have been saying I think <unk> from a production standpoint is is the trough for them I would say as we get through April and.
And really into maybe later in the second quarter, we have a supply of chassis on hand and in flow.
To support to support and Q2 and so it will really be maybe more of a second half dynamic for us, but I think that said, we're still in a position here due to ramp.
Significantly and the second quarter.
With the work done by the team from <unk>.
Perspective, and so.
I think.
Theres, certainly some impact and frankly, a ton of uncertainty is when you look and the back of the year, but we feel very comfortable with where we are from a guidance perspective, and how it will play out.
Okay last one for me and I'll turn it over.
Im wondering what youre seeing on the labor front hearing a lot about not only shortages of bodies, but also price pressures how are you guys managing and your locations.
Yes.
Steve I think.
Two biggest locations, our Bristol and and share.
Sure.
We mentioned on the previous call that we made some adjustments to the PE and retention items and Bruce. So we continue to monitor that but right now we're not seeing it we're seeing.
A good flow and and Charlotte, we are ramping up and and due to the chassis shortage we were.
We're not going to accelerate as fast, but we refined and employees there as well so.
I think Bristol will continue to have.
Struggles due to the motor home group.
Both.
Button share loss and we're managing through it.
And in Charlotte, we feel comfortable hitting the number of people we need for the ramp up on velocity.
And once the chassis continue to flow.
Got it thanks, Chris.
Thank you.
Our next question comes from Matt Koranda with Roth Capital. Please state your question.
Yes.
Hey, guys. Thanks.
Just wanted to talk at the us and the order environment that we're seeing.
Obviously running at a very high blood. So it looks like implied in your numbers versus the fourth quarter, but wanted to see if you could maybe just touch on sort of the mix of the order book and Q1 that was velocity versus legacy product.
And then just for the rest of the year or is there going to be seasonality to the bookings cadence for the rest of the year and a slowdown unexpected relative to these very high levels or are we just sort of running all out and still on the bookings front.
Yes.
I think that as we look at it.
And so again really strong volume in the first quarter.
And Thats continued into April as well.
Velocity.
A significant part of that I think if you if you look at what we previously announced in terms of the 3000 net.
Unit order our backlog levels are approximately.
Approximately double that at this point and so velocity.
And we feel very good about how velocities position and the market and the need that it fits from a customer perspective.
I think that said, we continue to see all aspects of the business from arc and van.
Truck body.
And I noted the fact that we're starting to see some laundry and linen as well as some I'll call it more retail type customers.
Pick up from and ordering perspective, as well so it's a little bit.
A little bit broader than it was maybe in the fourth quarter.
But.
Still feel pretty.
Still pretty positive for us and it.
I think maybe two to your question on.
On the seasonality piece I would expect at some point.
Particularly given our the customer ordering patterns historically that we will see a slowdown here in Q3.
Yes.
More as they prepare for their 2022 purchases.
Given the fact that we're essentially sold out on the EPS side of the business.
Plus or minus given.
Semiconductor issue plays out.
Okay, Great and then I wanted to ask more specifically on the chassis supply issue, obviously velocity was sort of started up.
And the wake of some of the the old legacy chassis issues that you had several years ago.
Just wanted to see if you could break down or maybe qualitatively talk about the flow of chassis on the legacy product versus velocity and how we should be thinking about your ability to fulfill velocity versus legacy product as we move through the year here.
Yeah, I think Matt most of the.
So the velocity F products and as it builds on the transit.
And as where we are having some issues we still continue to.
Run the <unk>, II, which were the vehicles getting sent out for dental unit, but.
On that plant.
Right down and <unk> is still operating and we're still do an update there on <unk>.
And in Kansas City with the transit is we had some velocity Jesse out of there and then our update and Kansas City.
And as having some chassis issues.
But we are and as well as Detroit custom chassis, but we are seeing chassis flow from freightliner and they.
So we're a little curious to why Freightliner and Atlantis can still continue to build and Ford and GM are struggling so.
It's the timing issue with these guys and maybe some of their plants you on some of them came out of that Texas issue with the Prost and.
And then they hit a shutdown.
They're trying to catch up so I do think it will it will work itself out, but yes, we do.
We thought we had the answer.
And we had chassis issues and <unk> with these three new products.
And Mercedes is still shifting to <unk> coming on board, which is positive so maybe longer term having the.
And five or six chassis will level out if anybody has a problem right now theyre trying to build up the velocity on the transit and <unk>.
They're struggling to get his chassis.
Okay Fair enough and then.
Oh, sorry go ahead.
And sorry, sorry, Matt and.
And that's just not an issue with us right.
Industry issue, which is affecting anybody that's trying to get chassis. So it's nothing particular assets.
The board with all the.
Up Fitters and builders today.
Yes fair enough.
And then just last one on FBS backlog.
I guess.
Did I hear you correctly, and saying that Youre, probably sold out on FBS slots through the end of the year just wanted to see how quickly. We think we can deliver on that backlog and obviously, it's a high quality problem to have having a really high backlog, but at what point does the high backlog start to detour orders is there any concern on around sort of how that plays out.
Yes, I would say at this point it is not the turret orders.
I think.
And kind of gets to Steve Steve's question earlier, I think our backlog puts us in a position.
Certainly be at the high end or potentially above above guidance and.
And so it's really a question of flow, but it's been nice to see sort of continued demand here, we've seen little to no.
Cancellations.
And from customers given the fact that they haven't been able to get chassis and so we're viewing this more as a timing from a timing perspective, but feel very comfortable with where we are from a 2021 standpoint.
Okay, great. Thanks, guys I'll jump back in queue guys. Thank you.
Thanks, Matt.
Our next.
Question comes from Mike Zaremski with <unk> Securities. Please state your question.
Hey, good morning, guys.
And my final confirm hey, there I just wanted to confirm and the first quarter here.
The backlog that you have is all day.
And based on backlog and didn't have any or very few issues with getting chassis and shipping during the first quarter itself. So all of the backlog is.
Positive business not negative.
Got negative shortages related correct.
That's correct, Mike and.
And even through April we've to debt.
At this point, we've seen limited impact to our operations.
Great.
And just to follow up on Matt's question do you have enough orders.
On the chassis is premised on you still anticipate.
Tyler's if you still have issues with Ford and GM and about half of the.
Year.
And how you plan to kind of.
Navigate.
And when if and when things do get a little bit tight for you on certain brands just build whatever you can get and there is enough and about half to meet that full year guidance.
At the current time.
Yes, Mike.
It would be nice if our customers would let us do that but.
And they orders business and the brand of vehicles. They want so they are willing to wait for the chassis.
So the people that did order the Atlantis vehicles, we'll be getting on Mercedes we get and I'm sure forward when they start back up later this month or even if it moves in early June theyre going to ramp up pretty quick and.
Get the supply flow and again so.
We can't just switch over the customers wouldn't appreciate that so we just have to stick with the orders and the specs that they put in the appeal.
I guess the question was more can you just shift around and what gets built.
And knowing that's the right.
Does that change their brand and you can pull forward and pull back Daters and you get.
The chassis are you with various debt on certain days with certain customers.
Yeah.
And it's.
I guess going on and totally understand your question. So if we were.
Yeah.
The plant and so we can't really.
We received more chassis because we do have the orders that we put in with the Atlantis to give us the quantity. We have right now the supply is so tight they won't be able to increase that volume and thats, what youre asking and so we can move it to another plant and build ahead debt that would not be able to happen.
I'll follow up on that question separately.
And just move on quickly on too.
Just some of your expansion plans.
And they're already.
You did get a local or state subsidy and Pennsylvania for example to build a new facility there.
I wasn't sure how how youre running and Pennsylvania, right now and what if any other states.
We can day is to give you a some kind of cash break or subsidy to build some more capacity going forward.
And I think in terms of Pennsylvania, and we've been operating there for a number of years now certainly the east coast and and the North and northeast market is essential for us from a truck body perspective.
Yeah as you look at what we're trying to do there and our search continues for facility, but really trying to.
Sure.
The model plant.
Where we can build.
Velocity and dwell outfit.
Mount service bodies.
And just coming off that as well and so we're really looking to expand the operations there.
And and across the product portfolio I would say as you look at 2021.
I think it'll be Youll see limited impact from that potentially some investment later in the year.
But thats kind of where we are.
Okay.
My last topic here is on your on your EV strategy appreciate to hear your <unk>.
<unk> got some kind of.
Platform and development.
And as you plan to kind of develop one EV platform for classes two through six and has having a modular capabilities as far as battery or.
Or stuff like that.
And or is it going to be and outsource platform with someone is going to be giving you kind of like with motive and <unk>.
Sending you the.
Skateboard and Youll be doing your usual, partly built work on top of it just on what's the just to kind of what you're planning there as far as on having your own Tvs.
And you almost had me Michael I didn't give you the answer but we're going to hold off on that and so probably at our analyst day on the share some more details.
Alright, Alright, I'll pass along thanks, so much Joe.
Yeah.
I tried.
Yes.
I'll give you that.
And good luck.
Thank you.
Okay. Our next question comes from <unk>.
Phoenix is low <unk> with Raymond James Please state your question.
Hey, good morning, everybody.
Good morning.
Hey, I was hoping we could touch on EBITDA margins real quick and specifically and the fleet vehicles segment.
I think obviously down slightly year over year.
And what you did mention that the velocity preproduction costs for weighing on that and the quarter is there any way you could quantify how much of a drag that was to margins.
Yes, it was about.
If you look at the Fts business it was about two points.
Okay.
Okay. That's super helpful and then and then.
And I'm really trying to think through some of the bigger picture margin puts and take within that segment.
And obviously preproduction and ramp.
It sounds like chassis supply wasn't as much of an issue and <unk>, but I imagine premium trade and other supply chain headwinds where may be and there anyway, I guess bigger picture question, John I'm, just trying to parse through some on the puts and takes and how you think about the margin profile of that segment longer term.
Yeah.
And historically, we've talked about that business being in the 15%, 15% to 17% range from an EBITDA perspective, I think we are.
We're certainly comfortable with that I think as you look at the quarter.
We had the preproduction costs, which.
I think is understandable given the ramp here and we expect and the second quarter. Some of the inflation dynamics that Daryl alluded to really on the labor side of things and some rate changes, we did to secure labor and employment. There is also a headwind and the quarter and then we were also impacted by year over year by.
By some of the mixed dynamics, particularly with upset as well as our field. We had a large field services order last year that did not repeat this year and so those are two of our higher margin product lines or product offerings.
And so we had some natural natural mixed headwinds this year and so I think that 15% to 17% range is still a good number for us.
Okay very helpful. And then just my last one I'm curious if we could touch on the and three a little bit I know you mentioned I think 350 orders already and <unk>.
Can you maybe broadly talk about how that product has been received and the markets.
And then just on the production production ramp there it sounds like chassis is not as much of an issue right now.
But if you could just touch on how you're thinking how quickly you can ramp through the year on on that product specifically.
Yes. This is daryl ill take it so we have.
Not every customer likes the Mercedes and three.
Just as a chassis.
I think there is a cost to it right, it's a little bit more costly than let's say.
Dodge Ram Pro Master, even a transit.
And customers like it and.
In order to fulfill their need and we need to build on all of them.
We do on and the Freightliner a forward custom chassis today.
So in particular, there is only a couple that like it so.
We'd like to $3 50 orders and I sort of for the year and.
We expect to be hearing back from them I think probably.
Later this year for 2022.
But.
Helpful thing is.
With the velocity.
Whatever chassis this and go down and the exact same wine that we havent share lot.
So.
It just goes back to the success of our design and the.
The talent of the engineers and our flexible manufacturing process, where we want to be able to build.
Multiple products and our same facility so we don't get.
And we can level out the order flow.
On the Bill.
Orders and not shut the plant down and so what.
We're happy with that order and obviously that vehicles just came out.
The forward was first.
<unk> first and then Mercedes and ours come and so we're happy with what we see.
Got it very helpful. Appreciate the time.
Thank you.
That was our final question I will turn the call back over to Jerry for closing remarks.
Thank you Daniela.
Turn to slide 13 for some additional information.
Many of you on today's call should have received an E mail to save the date for the upcoming virtual analyst Investor Day next month on Tuesday June eight.
And virtual event, and we plan to share our long term strategic outlook and financial goals.
And would like to attend and we encourage you to register at our website and we'll be providing additional details on the event in the coming weeks and look.
For participation.
Also in early June you'll have an opportunity and meet with us virtually at the upcoming Craig Hallum Conference.
That I'd like to thank you for participating on today's call and and have a great day.
Thank you. Thank you. This concludes today's conference call. We thank you for your participation you may disconnect. Your lines at this time and have a great day.
Okay.
Okay.
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Hum.
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