Q1 2021 Profire Energy Inc Earnings Call
Okay.
[music].
Good afternoon, everyone and thank you for participating in today's conference call to discuss profile energy first quarter 2021 ended March 31, 2021.
Joining us today is the co CEO and CFO of profile energy, Ryan Oviatt and co CEO Cameron Tidball.
Before we begin today's call I would like to take a moment to read the company's safe Harbor statement.
And I made during this call that are not historical are forward looking statements.
Call contains forward looking statements, including but not limited to statements regarding the company's expected growth with both of them.
And with partnership expansion outside of the company's traditional markets and impact on supply chain.
All such forward looking statements are subject to uncertainty and changes in circumstances.
Forward looking statements are not guarantees of future results.
Or performance and involve risks uncertainties and assumptions.
That could cause actual events or results to differ materially from the events or results described Jim or anticipated by the forward looking statements and Dr.
Factors that could materially affect such forward looking statements include certain economic business.
Net market and regulatory factors identified in the company's periodic reports filed with the Securities and Exchange Commission.
All forward looking statements are made pursuant to the safe Harbor provisions of the private Securities litigation and he's gone out of 1995.
All forward looking statements are made and also only as of the date of this release and the company assumes no obligation to update forward looking statements to reflect subsequent events or circumstances, such as required by law.
Readers should not place undue reliance on these forward looking statements.
I would like to remind everyone that this call is being recorded and will be available for replay through may 28.
On May 21, starting later this evening.
And will be accessible via the link provided in yesterday's press release as well as the company's website at www coal fired energy Dot com.
Following their remarks of Mr. Oviatt, and Tidball, we will open the call to your questions as part of the question and answer session.
Mr There'll be at and chip ball will be joined by pro player Energy Vice President of operations, Jay Fugal, and Vice President of product development Patrick Fisher.
Now I would like to turn the conference over to co CEO and co fire energy Mr. Cameron Tidball. Please go ahead.
Thank you operator, and we welcome all of you who are joining us on the call today.
I'll start the call by providing some updates on the industry and our business and then I will turn the call over to Ryan to provide a review of the financials and outlook.
Following Ryan's remarks, I will share an update on our strategic direction and recent business development initiatives.
After the unprecedented challenges of 2020. The current year has shown signs of improvement and oil and gas markets. However, overall demand continues to trail pre pandemic levels since turning negative for the first time and history W. T I prices stabilized and over the past few months have rebounded.
And the mid $60 range, thanks to increasing optimism for future demand as COVID-19 restrictions continue to loosen and the northern hemisphere enters late spring and summer.
However, some regions such as India continue to be severely affected by the virus limiting the recovery of global economic activity.
Despite the strong price appreciation for crude oil and the first quarter.
Major e&ps are still not expected to ramp production activity in 2020, one given their ongoing commitment to capital discipline.
Rather than investment and expanded drilling programs, we expect operators to utilize excess cash flows towards debt reduction reinstatement of dividend programs and the maintenance of existing infrastructure.
Given the realities, we have and continue to face we believe that drilling and completion activity will continue to see improvement through the remainder of the year. This should result in increased opportunities for pro fires products and services.
We also remain encouraged by the sustained increase and focus from the industry to improve operational and environmental efficiencies of which profile solutions pertain.
These actions represent opportunities for pro fire to support the upgrade and retrofit market as well as to provide valuable preventative maintenance services.
I will now turn the call over to Ryan to discuss our financial results and outlook Brian.
Thanks, Kim as discussed 2021 has started off with improved optimism for the oil and gas industry.
With the uptick and our business and improved outlook for the year and we hope the worst of the pandemic behind us during Q1, we started to reinvest in our business to ensure we are well positioned to take advantage of the pending recovery.
The first major reinvestment was to remove the furlough program that impacted all of our employees for the majority of 2020.
Second we've begun hiring critical support roles that were eliminated in 2020 within our operations and back office support functions.
This will ensure we continue to deliver the exceptional customer service that profile, our customers have been accustomed to.
These roles will be Paramount as we continue to grow our business through entry into new markets as well as our partnerships with Spartan and controls and ECA, which Ken will talk more about in a moment with that let me turn to our financial results for the first quarter 2021 yesterday after the market closed we filed our <unk>.
And Q with the SEC and discussed the quarter's highlights and our press release.
As always and both of those documents are available on the investors section of our website. The transcript of this call will be posted in the coming days.
And the first quarter, we recognized $5 1 million and revenue, which represents a 10% decrease from Q4 as we indicated on our year end call in March we experienced an increased amount of year end spending in Q4, which was driven by the combination of the end of the presidential election cycle and the optimism associated.
With the COVID-19 vaccine revenue decreased 32% compared to the first quarter of 2020 debt.
Prior year quarter was mostly unaffected by the pandemic and the price war between Russia, and Saudi Arabia, which ultimately caused crude oil prices to turn negative in April 'twenty, and 'twenty and significantly impacted the subsequent 2020 quarterly result.
Gross profit for the quarter was $2 2 million as compared to $2 8 million and the fourth quarter of 'twenty, and 'twenty and $3 2 million and the year ago quarter. Gross margin was 42, 7% of revenues, a 20 basis point improvement from the prior year quarter, but still below our historical range due to the.
<unk> revenues caused by the pandemic.
Gross margin and the fourth quarter of 'twenty, and 'twenty was 48, 7%, which benefited from higher revenues during the period as previously noted.
Total operating expenses for the first quarter were approximately $3 million.
This represents a $216000 increase sequentially as we began to unwind COVID-19 related furloughs that were implemented last year.
And on a year over year basis operating expenses decreased 850000, reflecting the actions taken throughout 2020 to modify our cost structure for the unusual operating environment.
Typically G&A expenses for the first quarter decreased 22% R&D expense decreased 37% and depreciation and amortization expense increased 14% from the first quarter of 2020.
Net loss for the first quarter was approximately 602000 or one cent per share. This compares to net income of approximately 56000 or zero cents per diluted share and the fourth quarter of 2020, and a net loss of 365000 or one cents per share and the first quarter of last year.
Cash flow from operations and the first quarter was approximately $1 8 million compared to 271000 and the prior year quarter.
The quarters cash flow was achieved through strong cash collections on accounts receivable, good working capital management and the sale of our old building and Canada.
Our inventory balance at the end of the quarter was $8 1 million down from $8 4 million at the end of 2020.
We believe our current inventory levels, which are mostly finished goods remains sufficient to address our customers' orders and the near term.
However, we are closely monitoring inventory lead times and supply chain challenges in order to ensure we are able to remain a supplier of choice for our customers.
Cash and liquid investments totaled $19 4 million at March 31, 2021 compared to $17 6 million at the end of 2020.
And the company continues to operate debt free.
I will now turn the call over to Cam to provide a strategic overview of our business camera.
Thank you Ryan.
And the first quarter of 2021 and the weekly average rig count for North America increased to 522 from the fourth quarter average of 384, while this number has risen since the middle of last year. It still represents a 46 per cent decrease from the weekly average of 958 for the first quarter of 2020.
Towards the end of the quarter, we were pleased to announce that we had entered into strategic agreements with two Emerson impact partners Spartan controls and ACI.
These partnerships align with our strategy to grow and strengthen our core legacy business and to expand our presence and industrial combustion markets beyond upstream midstream and downstream transmission.
Spartan controls has the potential to bring profile of products to a wide range of industrial growth markets with their well positioned and respected brand and widespread footprint and western Canada, we look forward to enabling their sales and application experts currently we are focused on training initiatives.
To support their sales and engineering teams, which should lead to new revenue opportunities and the latter half of 2021.
E C I, a longstanding provider of process controls and automation solutions, and Pennsylvania, Ohio, and West Virginia will support our strategy to increase our strong and user footprint and the Marcellus shale region, you see ice reputation and expertise complements our sales and service strategy. We are encouraged by the <unk>.
<unk> achieved and the first quarter as E. C. I was in the top quartile for customer sales.
Prior to the pandemic, we were working on the expansion of our sales team focused on downstream petrochemical and industrial combustion and the first quarter and as part of our investment strategy. We resumed our search and we are happy to report that we were able to fill this role and the second quarter.
This well qualified and experienced sales and business development asset will be pivotal to identification and development of new project opportunities and alternative combustion markets.
COVID-19 continues to impact our traditional sales process due to the various travel restrictions and our customers' pandemic response plans, however, our industry and our customers remain rely on our products and services and solutions. They continue to work with us directly through Oems and other reseller.
And to procure our products service and expertise.
During the first quarter, we engaged in a project and design discussions with our midstream energy infrastructure company regarding a major 3100 project to upgrade several critical thermal appliances.
And we're excited to report profiles proposal was accepted purchase orders were received and we are currently in process of project execution installation and commissioning.
Profile continues to demonstrate a compelling story to our existing and future customers with similar application needs.
<unk> expertise and design application credibility product availability and cost competitiveness and project turnaround are key components that we will continue to present and exploit.
And the quarter, we collaborated with our food and beverage manufacturer to support a combustion process need and one of their plants.
We received the purchase order and expect to complete installation towards the end of the quarter. This project utilized core profile technology and represents potential repeat opportunities outside of our traditional markets.
On our prior call, we announced the successful installation of our P. F 3100 solution on a hydrogen production unit. This unit has been developed by a leading integrator and innovator of clean energy solutions that continues to test and develop their product with a goal of fourth quarter commercialization.
Projects, such as this demonstrate the capability and reach our solutions and team can support.
We also completed the successful installation of our critical thermal appliance upgrade for a major renewable fuel producer with our P. F. 'twenty 200 technology, we continue to explore additional opportunities in this and other adjacent markets.
We continue to see increased adoption of the P. F 'twenty 200.
Our existing and new customers and.
As customers have greater opportunity to see it in person and to witness firsthand the incredible improvements we have integrated into our latest system.
Field performance, coupled with customer feedback is validation of our product development and safety approval process.
And some of our highlights have shown the P. F 3100 pipeline continues to grow we are encouraged by the breadth of applications and projects that we are capable of supporting.
We expect this to continue to expand as we work with our partners gain broader installation experience and introduce and solidify our brand and new industries and markets.
<unk> balance sheet remains well positioned for potential investment opportunities. We continue to conduct ongoing due diligence on potential acquisition prospects that are a fit for our core business as well as new market opportunities that can utilize our products and technology or leverage our reputation and significant cut.
Or base.
We remain committed and focused in the careful and strategic use of these assets.
Before we turn to questions, Ryan and I would like to express appreciation and to thank our employees for their continued dedication and contributions towards the success of the company.
Operator would you please provide the appropriate instructions. So we can get the Q&A started.
Certainly we will now begin the question and answer session.
And to join the question queue. You May Press Star then one on your telephone keypad.
And your tone and acknowledging your request.
You're using a speakerphone, please pick up your handset before pressing and and kids.
To withdraw your question. Please press Star then two.
I'll pause for a moment as callers join the queue.
Our first question is from John White with Roth Capital John White Your line is open.
Good morning, John.
Hi.
Hey, guys and congratulation.
Congratulations on the midstream deal I know you worked really hard to get into that subset of the of the energy industry.
Thank you.
You mentioned hiring a new business development executives.
Would you mind, telling us a little bit more about.
His or her.
Background, there and what industry, they're joining you from.
Yeah definitely so.
So we should qualify that this person and he is not an executive with pro fire at least not yet.
But he has a direct sales.
And business professionals so.
He comes to us from them.
I won't name the company, but.
And well known competitor in the thermal appliance and thermal burner industry. So.
He has over 10 years' experience with combustion working and refineries Petro Chem.
And that space, so really lucky to find and find them.
We're happy to have him on board look forward to over the coming quarters to see what he can do to to help us either grow organically build out the sales channels, but for the most part to start and he'll be working on the debt.
The Gulf region.
Sounds good thanks, thanks, very much for the additional detail.
And your traditional upstream business.
Are you seeing any particular focus of activity according to base and or fly.
Alright.
For the most part we've relatively stayed the course, obviously Permian leads the way with production and.
Drilling and completing activity overall, however, the BMS ratio to well by our experience is a little lower and that area, but still remains to be strong the Marcellus as ware profilers invested heavily over the last couple of years continues to be very strong, but we are seeing and.
Nice.
And we'll call it a steady uptick in all areas, except the Bakken is as everyone knows is struggling the most.
Okay, well nice job at getting through what is hopefully the worst part of this storm and.
I'll pass it on.
Thank you and John Thanks, John.
The next question is from Rob Brown with Lake Street capital markets well, Brian Your line is open.
Thank you Ryan.
I just wanted to follow up on that 3100 projects that you talked about receiving orders could you give us a sense of the size of the project and and maybe.
And just a onetime project or the other.
On growth opportunities and that customer vertical.
Yeah, Great question. So this this project is specifically, what we internally call the downstream side of midstream and.
That being bigger heaters and similar to some other things we've done in the past for.
Some of the large e&ps, who have these big midstream facilities.
So the size and magnitude we did three three of the appliances that we'll be doing here and the quarter. We're actually commissioning two of them today, which is great and we've got a team out there, but these are more and the six figure on line low six figures. So just over 100, but there they are nice sized projects we built.
Leave that these types of applications, we've really done well with them over the last three years and Canada started to do some and Oklahoma and these are first that we've really gotten and west Texas area and so we know these exist. We know the there's a lot of them out there, where we're trying to get our sales team.
Not to not be afraid at least not that they ever were afraid of these but they exist and almost all of our territories and.
Great opportunity, there, often very old and antiquated and they're ripe for for being upgraded.
Okay great.
And here and then and.
You talked about the UCI and.
And the quarter, having an impact could you just sort of quantify or give us time and quantify it but give us a sense of the impact there and and how that relationship's been and growing out of the gate.
Yeah, well, we've had them aboard for pretty much the whole first quarter, we solidified things late Q4, and they're well established and upstream midstream and.
In the Marcellus region.
Our strategy was to work with them closer and we thought it gave us broader and user focus with their relationships their size of the sales team and all of those some of the revenue that was generated as we mentioned there and the top quartile top 25% of custom revenue for Q1 was probably revenue profile would get any ways.
We would probably estimate that 50% of their revenue was new revenue, which is great.
So so far things are going very well there with ECR, we like we like the combined strategy. Our teams are getting better at working together and and.
And and collaborating on opportunities and the goal is really is to just bring as much as we can direct through the direct channel and as well through them.
Okay excellent and.
And maybe you talked about kind of the balance sheet strength that you have and and what opportunities that opens up on the on the M&A side.
Obviously, you cant say exactly but what some of the areas youre thinking about and and how do you see that and where are you at maturity of that effort.
Brian and I've done a bit of a talking here you want to tackle this first.
Yeah, I was going to jump in here and.
Good question, Rob we we certainly have obviously this last year has presented some very unusual challenges and circumstances for us that we were working through but even through that we've continued to evaluate.
Various investment opportunities some of that being M&A, obviously, we've been able to do some things with partnerships as we've been talking.
And we're looking at other products.
Product channel that we've got internally how.
How to build that were to build that what what process to us.
In doing that whether we do it all homegrown or where you're partnering with other strategic partners. So there's certainly a number of things that we're looking at and the.
The fact that we were able to grow our cash position a little bit this last quarter through the sale of our building and.
And some good working capital.
And the movements are certainly good as well, though at the same time, we look forward and see additional challenges that we will need to face certainly some challenging circumstances on the supply side with vendors and our levels of inventory, we've been able to manage inventory down a little bit over the last.
Year, and Thats helped us get through some of those challenging circumstances, but we also believe we're going to need to reinvest.
And potentially grow that a little bit because of lead times and other things that are challenging there. So we certainly are looking across the spectrum of opportunities and needs and see a lot of activity a lot of things happening that we certainly want to invest in and we hope to be making some more strategic moves with that cash.
And throughout this year.
Okay, great. Thank you I'll turn it over.
Excellent thanks, Rob.
Once again, if you have a question. Please press Star then one.
Our next question is from John Mcilveen with Dawson, James Jim Mcilroy. Your line is open.
Good afternoon, and thank you.
It sounds like volume.
Fantastic doing well.
Thanks.
Ryan and your comments you talked about.
Reinvesting in the business.
And.
I'm wondering if.
The increase we saw in Q1 as the beginning of further increases as the year progresses or what.
Or have you pretty much.
You've completed that that process.
I would have to say it it's probably a beginning and it was.
A big step because of the unwinding of the furloughs, which we did.
And we if you look at our head count or I guess, if I communicate our head count we're still down quite significantly from where we were a year ago were on average I think about 90 employees company wide right now.
A year ago, we were at about 120, maybe even 125, so were down very significantly from that and and some of that is strategic and how we've repositioned ourselves, but some of it is also in capacity within our operations and our support functions. So we have begun to re hire a few roles.
To improve those support functions and make sure that we can continue to grow and support our customers throughout that process.
We're not planning to go Crazy, we're not planning to return to 125 anytime soon but there are a few other roles that we will probably bring on later in the year, but some of that is also dependent on realizing some of what we anticipate in this.
Recovery so.
It is certainly and investment there will probably be a bit more throughout the year, but we're going to be very strategic and pragmatic about how we do that where we do it.
And why and then as I mentioned, we'll also be using.
Some of our money to reinvest in.
And.
Our restructured or re prioritized R&D plan for product development.
Which may have a few roles associated with that as well.
Inventory reinvestment and some other things, but from a G&A perspective.
As a first step, but we will probably see some modest increases as we move forward as well.
Okay.
And before the pandemic hit the plan was too.
Increased spending in and selling and marketing in order to drive the topline.
Is that completely off the table now or is that.
Still something that you're evaluating.
And as as business improves.
Certainly something that we're continuing to evaluate and we do believe that there's value there it will probably be.
Structured and prioritized a little bit differently than we were focusing on doing a year or two years ago as part of the plan that you mentioned we.
We do believe that we need to invest and market things in certain ways as Cam highlighted that 3100 project that we did with the large cabin and style heaters. We believe there is a lot more that we can chase there and so we'll probably allocate more into that effort specifically to grow that part of the business.
Continue to invest and focus in the downstream petrochemical area, especially with this additional sales person that we have.
So certainly continue to do that maybe slightly prioritize differently.
Cam anything you want to add or comment on there.
I think you captured it perfectly it's a great opportunity for us, but again, we're going to be very careful and pragmatic about it we just.
And we're blessed to have this nest egg, we don't want to just sit on it we obviously realize that's investor monies and we want to get a return on that but we will be we'll be cautious and smart with it.
Alright, and one more.
And you've mentioned inventory a few times.
And I just wanted to understand.
Or what's going on R. R.
And our customers demanding short lead times and so you have to sit on more inventory or are.
Or you feel like it's a way to win business. If you can deliver quickly and so youre willing to invest and inventory. It seems like you're you're much more sanguine about sitting on high inventory balances that and you have and the past.
Yeah, I'll comment that Cam I think you can add here as well.
We continue to see supply chain challenges as far as getting product in.
We're managing very well, we believe our proprietary products our systems the components associated with that but even with those and the large inventory levels that we carry we are seeing significant increases and lead times.
For those components and then the focus that we've had over the last couple of years in providing solutions not just BMS controllers, our units boxes, but the whole package the whole solutions for our customers, that's where we're seeing and even greater challenge as far as valves and fill and oil and other.
And third party components that we have to procure and then <unk>.
Build our full solution and provided to customers. So.
So we certainly are seeing longer lead times associated with that and supply chain shortages as many other industries are experiencing right now and we've talked internally about not only about the need for us to be able to supply quickly to continue to support our customers, but strategically how can we turn.
This to be an advantage for us and and Cam I think thats, where you could comment here a little bit.
Yes, we definitely look at this as an opportunity to two two and a way shift the way Big oil has operated in North America for a long time now were naive to think we can do this on our own but the fact of the matter is.
What Ryan has portrayed.
We will see slowdown where we already are seeing yet this is probably the worst supply chain.
I guess feel that we've had and in 20 years.
The way that the global economy is moving or not moving or moving slowly costs will increase of course, so what we're what we're planning to do as Ryan mentioned is use this as an advantage or an opportunity to go to the clients to our customers and.
And lock in.
Solidifies specification for example will get sometimes from from Oems production equipment manufacturers, the spec will say profile on.
And the burner management.
And what that means to one O M is okay and your P. A profile of a box to another OEM. It means do I need the burner to another OEM it might it just means several things. So we've we feel and we've worked at this for the last five years and will continue to work on it but we have to tell the story, we have to have customer.
And I understand that if they don't lock and specification if they don't work with us to book.
Further understand their their forecasts and what theyre going to need it's not that profile won't have the product because profile in our space is the biggest pockets to go get that product and to store it and to hold it but if we don't have it it's not that somebody else will have and it won't exist. So it won't be ordered it'll be on it'll be back order for so long.
And so we're working on with operations that profile a strategy to go out to the customers and to you in a way to share. This message that they've got to get ahead of this and it won't be because we don't want a supplier or we can't afford to just won't exist and that's what we're getting from our vendors that you need to get your orders out and.
Jay is on the call his team's order and things out quite a quite a bit and events and as Ryan mentioned that will be part of our investment because it is one of those things. If you have it it makes a difference, but we're gonna definitely favorite customers, who who lock in with US and work together as opposed to those who just rely on the way.
Has it been in the past.
Alright, very good debt. That's that's helpful. Thanks, a lot guys and good luck with everything.
Yeah. Thanks, Jim Thanks, Jim.
Okay.
And next question is from John Bair, with ascend wealth advisors on bar.
Your line is open.
Thank you.
Non.
How are you guys doing.
But we're doing well yeah.
I wanted to.
Kind of touch on something that you just were talking about before I get into my main question, but when you're working on these projects.
And in advance or trying to work with these customers do they.
Did they provide any.
One.
Funding at all.
But some of them.
Equipment that you're trying to build for them.
That's a great question and actually with some of our projects the larger projects.
And specifically that midstream when we mentioned here on the call, we will often and ask for some money upfront on the larger project, especially if it's a product we don't normally stock.
And with <unk> for some of these larger applications that is sometimes prevalent. So yeah. There is an opportunity to get some of the.
It's the standard industry Pos process to get some upfront this will continue as well as debt.
As we engage and get into larger projects, we hope and and are planning for in refining and Petro Chem that as the normal course of business.
Okay very good.
Well my broader question was this and we're <unk>.
Seeing no vaccination rates going up.
Generally speaking.
Many companies different industries are announcing their reopening their offices and bringing employees back in and so forth.
And.
Not only and this call, but and previous ones mentioned debt.
Obviously, not being able to get out and personally interact with our potential customers and customers and a drag on this whole sales process.
Realizing obviously that.
And the companies have cut back their spending so that that's probably the first and foremost part but.
Now that we've got prices have come back pretty pretty strongly even see and nat gas prices spot prices.
And they'll close to three Bucks.
That that's an encouraging tailwind hopefully.
And so what I'm wondering is what are you seeing from your customers or hearing from your customers about trying to get in.
In front of them again on a face to face basis are they.
Putting any kind of restrictions are they asking you are your sales force and vaccinated and how.
How do you see how is that.
Playing out right now.
Great question, so far to my knowledge, nobody is asking for that level.
Level of detail on vaccinations. However, we have how to you and we provide them are our COVID-19 response plan to certain customers and how we're dealing with things.
Even if we're just shipping day some of the companies that just order for our team members that go out more and more we're able to get on sites, it's not locked down near as much as it had been previously Q1 really started to change towards the end of Q4.
So we're able to get out with customers, even the northeast I know if anyone on the call is works and Manhattan or Chicago. They know theyre not really go into the offices, but for US, we're able to get out and the field.
Quite prevalent really hasnt.
It hasn't been as big and issue.
And that's why some of the things we highlighted in the call and our ability to get out and actually our customers love to feel and touch what we're doing they love.
Getting them.
For example, we will.
Meeting with our customer and the northeast and they had stated they didn't want to move to the 2200. They wanted to stay on the 'twenty 100, which is 10 years old now well, we just did somewhat of a mini trade show, we'll call it with them.
Last month here and we had 75 other people out on our site and one of the supervisors heads of of the department that oversees burner production equipment saw the 'twenty 200, and said why aren't we doing this were switching and.
So as customers can see as they see new products and it's not just our electronics, we want to show them some of our packaged solutions because as they see these things and they're gonna want it. So it's definitely a great thing for us the sales team has noticeably been more active.
Active and out with customers and they had been previously they're all loving it which is great. It's good for their morale as well.
So were we.
We're not.
We're not as limited as we were previously.
Well that that's a that's good insight there that's good to hear because yes, it was and what kind of follow up and say you know.
How permanently changed do you think the whole sales process is going to be mean people who have been used over the last year.
Now to be interacting.
Teleconferencing and so forth.
But it sounds like.
Really the in person kind of thing is really going to be meaningful.
Once there's more of a truly open that goes on is that is that a fair statement do you think.
Yeah definitely fair statement, we do think that it's changed forever. We don't think it will swing and stay where it is today you know if you asked me and three years, we'll all the office towers be empty no I think people will go back to some sort of hybrid of home working at home and and the office and and most companies will want to do the same.
As well, but.
We will say Ryan and I've been incredibly impressed with how the team has adopted not just from a sales process, but from a technical support even a service support.
All departments within profile have adapted well to what customers need.
And this this I think will allow us to have just a really nice hybrid again.
Some of these companies that have downsized their office space.
Well for now they don't always have people and the offices and and so we will.
And we will continue to employ technology video technology training online training via video conference and it's worked well and it's just it's nice to get that debt that tactile thing that that humans seem to like.
Sure.
Sure.
Good. Thank you. Thank you for.
Taking my questions and look forward to senior debt conference sometime.
Before too long.
Sounds good thank and garrison.
Yep.
It's aman thanks.
Alright.
This concludes the question and answer session I would now like to turn the conference back over to Carolyn said ball for any closing remarks.
Well. Thank you everyone for joining us on our call today to discuss our first quarter 2021 results. We appreciate your continued support of profile and as always we are available for any discussion or question that you might have also we will be participating and the three part advisors virtual east.
Coast ideas conference in June.
And have a great day.
Okay.
This concludes today's conference call you may disconnect. Your lines. Thank you for participating and have a pleasant day.
Okay.
Yeah.
Yeah.
Yeah.
And.
And.
Okay.
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Okay.
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