Q1 2021 Danaos Corp Earnings Call
Good day and welcome to the announced Corporation conference call to discuss the financial results for the three months ended March 31, 2021 has the reminder, today's call is being recorded hosting the call today is Dr. John <unk>, Chief Executive Officer of Gnl's Corporation, Mr. Hu of Annulus hobbies, Chief Financial Officer of day now incorporate.
Dr Christmas of Mr. Hot piece will be making some introductory comments and then we will open the call to a question and answer session I would now like to turn the call over to Mr of Angelus Hot piece to begin the call.
Thank you operator, good morning to everyone and thank you for joining us today.
Before we begin.
I quickly want to remind everyone that the 900 of remarks. This morning may contain certain forward looking statements and the actual results could differ materially from those projected the date.
These forward looking statements are made as of today and we undertake no obligation to update the <unk>.
Factors that might affect future outside of discussing non filings with the SEC and we encourage you to review these detailed safe Harbor and Lewis Clark for the steel doors.
Please also note that where we think the appropriate we will continue to refer to non-GAAP financial measure of such as the EBITDA adjusted EBITDA and adjusted net income to evaluate our business reconciliations of non-GAAP financial measures to GAAP financial measures all of them.
Noted in our earnings release and accompanying materials.
With that let me now turn the call over to the Doctor of course, that's who will provide the broad overview for the quarter John.
Thank you of annulus.
Good morning, and thank you all for joining today's call to discuss the jobs for the first quarter of 2021.
The dramatic turnaround and strength of the market in which we experienced at the beginning of the year continues unabated if not stronger.
I think the nature of the pandemic and swing slow down and the treadmill of operations has exacerbated the men.
And the line of sector ease of the limit of each of capacity.
The blockage of the Suez Canal.
The contributing the disruption of the supply chain and conditions will likely not more of my lives before the end of the year, possibly after the peak season.
The liner companies are reporting record profit and more importantly of signing multiyear contracts at significantly higher the metrics, which will keep the profitability at elevated levels.
The non operating all the restaurants shocked the range that skyrocketed to levels not seen proactively engage and what is more important duration has been.
The increase shows that vessels all of their 4000, Teu and secure core plus V S employment at very healthy levels.
Did you fall due to the sharp increase in rates and confidence of the market will remain strong.
The increase of new building order book.
As a result of the order book now stands at 17% of the existing fleet.
Which is higher compared to the 9% now.
End of 2020.
But it's still much lower than the 50% reached in 2000 the knee.
Unfortunately, the lack of shipyard capacity the hesitance of many market participants to all of the vessels with conventional tiered propulsion.
Both are inhibiting factors for the new orders and are keeping a lead on the excessive ordering.
In any event.
Suddenly all the vessels will not deliver until at least 2023.
The next two years should be lean in terms of fleet supply growth.
We believe that the expected strong demand growth post pandemic the cold.
Probably absorb the existing order book.
As far as the analysis concerned we're currently of the best ever position and reaping the benefits of the current market environment.
On April 12.
We completed a refinancing of a very competitive terms and culture of position the company successfully in the.
The U S book market.
The guest access to a very significant pool of capital.
The amortization profile of our debt, resulting in significant free cash flow per growth opportunities.
The stellar performance of the line of Shekhar had the number of should make sense then sequences for less.
First of all our shareholding in English the de valued at around $400 million.
Secondly, the might be cash flow generations human H M M.
Wish them to redeem early the bunch of at least we were holding so we will have 75 million cash injection in the second quarter of 2021.
Certainly line or sector performance eliminates counterparty reached for the foreseeable future.
Well the chartering front everything true we concluded the was down at the new record level.
These pictures are beginning to take effect and we expect the sheep improved metrics for every single quarter for this year.
Our strong financial standing.
The view of the future.
The bulk of decided to reinstate the fixed quarterly dividend of <unk>.
So on the 15th.
Zero point 50, a share.
The analysis has been reposition of the.
Growth company.
Handsomely rewarded the shareholders, who are the market share appreciation of more than 1000 per cent since our November 29 equity offering.
We believe that argue peaks of dividend will both expand our shareholder base to a new group of you.
The driven institutional investor and also enhance liquidity of the stuff.
All of the rights steps of the company is undertaking the last couple of years have been greatly appreciate the by the market and we'll continue along the same path of the future.
With that I'll hand, the call I'll go back to the if I can give us the will take you through the financials for the corporate line.
Thank you John and good morning, again to everyone I will briefly review the results for the quarter.
And then we will open the call of the Q&A today.
We are reporting adjusted EPS for the first quarter of 2021 of two point $83 per share.
Our adjusted net income of $58 million.
Compared to adjusted EPS of $1, one dollar and 34 cents per share or $33.3 million for.
For the first quarter of 2020.
This increase between the two quarters is mainly the result of the $25 9 million increase in operating revenues.
It's one of the half million dollar improvement in finance costs.
The $3 9 million dollar gain from partial collection of our Hanjin claim.
Partially offset by higher total operating expenses, mainly due to the increase in the average size of our fleet.
Between the two quarters.
More specifically operating revenues increased by $25 9 million the.
The other than $32 1 million in the current quarter compared for the Hudson and $6 2 million in the first quarter of 2020 the.
This increase is attributed to a $15 4 million increase in revenues as a result of higher charter rates and the improved fleet utilization and $10 $5 million of incremental revenues as a result of the vessel additions in our fleet between the two quarters.
Vessel operating expenses increased by $5 1 million to $31 1 million in the current quarter from 26 million of in the first corporate of 10 to 20.
The result of the increase in the average number of vessels in our fleet.
One of the average daily vessel operating cost increased to $5954 per day for the current quarter.
From 5005, rather than $22 per day.
In the first quarter of 2020, and this increase is mainly attributed to COVID-19 related increase in Peru. The remuneration. However, our daily Opex of course still remains as one of the most competitive in the industry.
G&A expenses increased by $5 1 million the $10 9 million in the current quarter compared to $5 8 million in the first quarter of plenty plenty.
Mainly due to $4 $6 million of recognition of the noncash stock based compensation.
And the increased management fees due to the increased size of our fleet.
Interest expense, excluding finance costs amortization of non accruals.
Decreased by 2 million the $10 2 million in the current quarter compared to $12 2 million in the first quarter of towards the 'twenty.
This improvement is mainly attributed to a reduction of our debt service cost by approximately one five per cent between the two periods.
Adjusted EBITDA increased by 33, 9% or $24 4, million% to 9% of $6 3 million in the current quarter.
From $71 9 million in the first quarter of kind of 'twenty for the reasons outlined earlier on this call.
We would like to note. Additionally that the results.
For the first quarter of 2021 that are reported today.
Though the improved across the board versus the first quarter of 2020 day.
Do not fully capture the significant improvement in the market fundamentals.
Couple of outlined by our CEO earlier of this call.
This is all the analytically laid out in the Investor presentation book has already been posted on our website, which we encourage you to review the few of the highlights are.
Asset values have improved with the top of the perhaps value of our fleet today at 268 billion.
On the basis of Q1, 2021 vessel valuations provided by independent brokers and.
Include the.
The charts of the premium wherever applicable in accordance with our finance agreements.
Our zim equity position is valued today at around $400 million, while at the same time the evaluation of the Zama H M. M bonds has also improved.
And we expect most of it to convert into cash within the second quarter of 2021.
We have been notified of this effect by both H M M and then that.
But they will proceed with early redemptions I had all of the 2023 and 2024 maturities of these notes.
And we expect the cash inflow of $76 2 million.
To come in over the next couple of months.
And within the second quarter over the year.
On the back of the stronger asset values.
That's the value of Jeremy line currently stands at the hub and the $54 6 million, which.
Which translates to a value of our 49% participation of $75 8 million.
On the basis of of all the above we current recalculate, our net asset value at $1 87 billion or $90.
$99 per share.
On the operating side over the past six months, we have fixed 33 vessels at significantly higher rates than previously.
And we they know the investor presentations the analytically the layout the improved charter arrangements for all sorts of the three vessels some of which have already come into effect, while some others will gradually start coming into effect within the cycle than the third quarter.
Of this year.
As a result of these improved fixtures our contract backlog stands at $1 2 billion.
Our contracted revenues for 2021 alone currently stands at $575 million.
Already and how the than 13 million of 25% higher than total operating revenues of 2020, which were 462 million.
We still only have three 7%.
All of our operating days open for this year.
And we expect.
The overall improvement in revenues to exceed the heavier than $22 million in 2021.
Versus 2020 on the back of the contracts.
Additionally, since there's no marginal cost associated with these increasing our top line such improvement should be expected to also to the down to our EBITDA.
With that I would like to thank you for listening to this first part of our call.
Operator, we're now ready to open the call the Q&A.
Thank you we will now begin the question and answer session.
Ask the question you May Press Star then one on your Touchtone phone.
If you are using a speakerphone. Please pick up your handset before pressing the cheese if at any time of your question has been addressed and he would like to withdraw. Your question. Please press Star then two.
The first question today will come from Randy <unk> with Jefferies. Please go ahead.
Oh, the John an evangelist how's it going.
Hi, Randy how are you.
Doing well doing well yeah first congrats on the dividend announcement I know that's been a goal for a while now something we haven't seen since 2008. So good to see the dividend back with that can you provide some more color on maybe how you decided on that 50 cents per share or $2 per year.
Year, and do you plan on growing it in the coming quarters or years.
Yeah.
You know we did not really.
The net hedge.
Any kind of the let's.
Let's say specific debt yield target.
We looked at.
That's more or less a two.
He is currently.
The change the dividend on our peers.
And the.
We just formulated the the board decided on the.
This kind of the number.
The which as I said, you know, we don't want to position the mouse as the yield company.
Because what we have delivered to our share of whole George who is really growth.
And growth.
Our growth in profit.
Profits.
It doesn't necessarily always growth has to be growth by adding assets.
It's very good to have growth in profit without adding assets by exploiting the assets best wishes and shake the significant part of the strategy that we have been following.
[laughter].
Got it and yeah, it's certainly still.
Still a very small component right of your annual EBITDA, we're talking 40 million bucks or so an annual EBITDA of.
400 to 500, right. So I guess as their plans for growth in the coming quarters and years of just kind of a let's just stick it at $2 have of base dividend and then use the rest for <unk>.
The other return of capital or acquisitions.
Definitely.
Our.
The chief strategy relies of growth of the company.
And.
We believe that are going to be significant.
Investments of that.
No.
We'll be done.
In the future.
What we are doing at this moment is really.
Building a war chest.
The order.
Really true whatever the growth we're going to have.
It's going to be at pre T secured with significant let's.
Let's say equity component of not just the loading up on debt.
Got it that's why and then I guess with that Segway, you've monetized as M and H M. M bonds already refinanced your debt clearly substantial cash flow with all of these contracts that you've been signing.
<unk> also reduced your leverage you know pretty dramatically here of the last quarters and years. So I guess what are your plans for that excess cash going forward do you have a target net debt or leverage goal or is additional growth the secondhand.
The acquisitions the the top priority.
Yeah.
Yeah.
I think.
As I said at this moment.
Ah well, we are really in the position that we are making a lot of money.
The market is overheated.
You know there is no point.
In spending.
Let's say the money.
The day one.
Expenses vessels, because then the.
We wouldn't have done anything.
Yeah.
We are going as I said.
The evaluate the situation.
We're going to have debt.
Much of.
The more clarity.
On the actual environmental direction of <unk>.
Shipping.
The towards the end of the year.
And this is going really to drive.
The investments that we're going to do until then as I said, we will be building of war chest.
Got it good.
Good day, and then I guess lastly on the chartering front you still of a few vessels coming available in the next few months, how do you balance that in terms of maybe maximizing the run year, one year rate versus kind of of getting some more duration for two years three years four years, what are you seeing in kind of a nord.
More duration for some of these charters on the vessels coming available.
Well the only thing I can tell you is that.
You know from the vessels that we are currently discussing and negotiating of about 4000 Teu. We are discussing at the four year plus of durations.
Wow, the smaller ones will go between the net shape, probably two to three years, we're not looking really to just maximize the next 12 months.
We wanted to have a niche.
It's a great or the diesel.
Ability.
Although as I said.
Oh actually 'twenty 'twenty two.
It's going to be a very lean here in terms of deliveries actually considerably less than 2021.
And then of course 2023, it's picking up.
The show.
So.
The.
Let's say the shortage.
In.
The charter market is going to continue for some time.
Yep.
We tend to agree thanks, so much congrats again.
Thank you. Thank you.
And the next question standard will come from Chris Wetherbee with Citigroup. Please go ahead.
Hey, good morning, guys James on for Chris.
I just wanted to tighten the comment you know me good morning, Yeah.
Just wanted to touch on the comment you made about.
And sort of preparing the war chest.
In the context of basically the dividend and growing it and just wanted to understand how you were sort of balancing that versus deleveraging across it and if it was really sort of when you're thinking of preparing the.
War chest doesn't work.
Thinking about deleveraging or sort of building up the cash position just trying to understand the more specifically what you had net about that specific comment.
Yeah at present I don't think there was any let's say the leveraging pressure because of.
I think of that there are of leverage.
It's pretty low.
And it's.
It's continuously.
The let's say being reduced because of the.
<unk> of which we're going to have.
Ah The war chest I was describing his practice of leap.
We will be.
And looking at let's say too.
The monetize.
On the.
Our.
Operating assets.
And one of those where the bonds, which.
They are getting let's say the dean.
The other one.
Is the share of holding.
I mean at some stage.
That will form part of of our war chest.
And if I may add as we continue to monetize as John mentioned in the non operating assets.
And the cash starts building up.
We already have a dividend in place.
So that the capital allocation decision has been made for the time being we will have to face capital allocation decisions going forward.
The priority of is gonna be growth.
On.
On the assets that are at the forefront of.
The environmental.
You vessels of the future.
And the.
At some point.
It will have to be we will continuously evaluate capital allocation and if we consider that certain of the cash kind of go towards the leverage into further.
The Napoli of debt load.
May be a decision are we going to take them.
But we cannot say at this point exactly what the topic of who's gonna be unless we see how the.
The growth.
The spectrum of the village.
Got it so.
So I think one.
One of the things that's sort of embedded in that comment is it more of a sort of thinking about newer vessels.
Sort of newer technology around propulsion versus secondhand.
Like a fair assessment.
Based on like your view about where you would sort of put that war chest.
They've just been.
And.
You know.
Uh huh.
As I said at the moment there is no clarity.
That's true.
What exactly the <unk>.
The viral mentality of relations will look like.
We have two fronts one is the idea of mode.
Wherever we have that all of these E size of discussion.
This.
Of this discussion of each Oh, we lead.
A reduction in sheep speed.
So the existing fleet.
Two of greater or smaller extent really needs to slow down to achieve these targets.
Plus of course for the.
Actually affect the supply.
And the the other hand.
We have the.
European community.
I mean, the wanted to impose.
The EPS.
Shipping and we have.
Yet no clue as to how this is going to look like and how it is going to affect.
Let's say the.
The old versus new.
The vessel.
What type of technology.
Going to.
Practically too.
Tried to push stalwarts.
We have seen for example that are the.
The LNG.
The has been.
I mean, even of the European Union.
LNG is not considered as a kind of the transitory.
And more and that's why I stopped funding.
LNG kind of related projects.
Oh and the other half of the World Bank.
Really sad that it doesn't make sense.
True go to make all of the infrastructure to go through all of the Jeep.
Tuesday kind of boom.
The current base.
Yeah.
A few of them.
And we should know.
Tried to concentrate and other.
The fully Decarbonize solutions so.
It's really there is as I said there is no clarity.
When there is no clarity.
The best strategy.
It's really to make the war chest and be ready.
To fight and face.
Whatever situation.
Yes.
Yeah.
Got it and so not to belabor the point book.
And just to be clear it does seem like there is.
And as you've pointed out.
Cash flow is improving and you will be building up a fair amount of cash, but it doesn't necessarily seem like you have the.
I guess the definitive plan for deploying it until you actually see an opportunity, which I guess married the essentially more of.
There's the potential dividend increase of ore.
A substantial to the bonds or something else on the table. It's just a matter of like what opportunity presents itself and being opportunistic as it were.
Yeah, exactly I mean, a two day.
The the company.
Having of will continue to have significant growth.
In terms of let's say income.
Purely by exploiting the market and it's end of the vessels in the best possible manner.
When the time is right.
We will try and exploit also.
The new technology.
In order to put the company.
Really in the.
And in the growth era or the.
The basis of the eight because.
The nice future, which is really.
Every one sequence.
Got it and true.
I guess the more.
Near term question.
Opex per day was a bit higher than where you thought you'd called out some.
One time like items around COVID-19 cruise and there's probably some vessel mix in the quarter as well, but like how should we think about essentially your opex per day on a per day basis for the ship per your fleet on a more normalized basis.
Any sort of color or context.
Context, you could provide would be great. Thank you.
Yeah.
Yeah, Yeah go ahead of us.
Yeah, Let me just give you some context there.
There's two issues around the Opex increase one is.
The granting of bonuses to our crews.
In relation to the COVID-19, the saga that they've had to endure having.
Having to spend way more time than they usually get onboard the ships and with great difficulties in changing crews in the children and so forth.
And to the extent that the.
Situation continues to be difficult. This is going to be an additional cost item on the opex.
And we also have something else, which is typical for every Q1, let's say of most normal years.
There's a lot of bulk ordering in the first quarter, which is.
In place if you wish for Opex and this is the normalizes throughout the remaining quarters of the year.
So as of ballpark figure at this point.
I would say the $5800 of day are they.
The average for the year is sort of our target the malware budget.
Got it alright, well thank you.
And the next question will come from them or in October.
Clarksons Plateau Securities. Please go ahead.
Thank you hi, John and a bunch of all of them.
Hi, Omar.
Yeah, the good well nice to see things shaping up so nicely.
The first analysis.
Guys have plenty of different sources of income and cash and you've made it pretty clear you're building up of war chest and wanted to just maybe ask I know not to belabor the point too much but you know you have the $75 million cash coming in in the second quarter from the redemption of those two bonds and then potentially the monetizing of of them.
When you think about you know the the war chest is there any possibility of that maybe some of that cash is cash.
That aside for a special dividend.
Okay.
Yeah.
Yeah to be honest as I said, we are giving the dividend.
The purely because.
We want to.
To enlarge our share holders days to investors, who are really require the dividend dog all of the shirts and stuff.
We believe that the.
We are very well positioned to.
Invest.
This war chest.
And that's why the reason that we have.
Building.
So there's no intention of just distributing.
Yeah.
Let's say the.
Money out otherwise, it's north of the war chest of otherwise youre talking about dividends distributions.
Yeah, that's clear thanks for that I, just wanted to to ask it.
Maybe just in terms of then of you know.
Of the you discussed the order book and how it's risen obviously at the higher levels of and the nice thing of course is that the vast majority of these orders have come with long term contracts of two.
Of the liners.
So that the speculation or the speculative order book is very very minimal you know on the last call you mentioned not really being not interested in ordering vessels against long term contract.
It sounds like maybe am I reading you right that maybe you are reassessing bad debt do you think that the returns makes sense or starting to make sense vis vis. The you know we're taking into account the environmental change in the fuel propulsion.
Are the opportunities you see in the new building front to order vessels with the right equipment.
That gives you long term visibility and the good return.
Yeah.
Well you know.
To date.
The liner companies are awash with cash.
And.
Sure.
If you're going to do of long term deal with a line of company.
It has to be more competitive.
From let's say the liner company.
Using cash.
Cash flow of its own.
We have participated.
Yeah, you know in the law.
Let's say six to eight months.
Couple of the tenders around reaching the end resulted the liner companies.
Doing.
Yeah.
Let's see the ordering directly.
And the.
To be honest.
I'm not there to compete.
On a single digit.
Equity returns.
And.
For the 10 year sort of show.
In an environment of about 10 years, if you think what we have in 'twenty payment, where we are in the in 2020.
Hell of a lot of things can happen in between.
Yeah, No I agree.
Hum.
Maybe just one final one you know as you think about the the war chest of being built you talked about the the monetizing of the non operating assets.
Do you feel about especially as you mentioned asset prices have gone much higher and it's expensive. How do you think how do you feel about monetizing some of your of your older operating assets.
Especially you know the you said the sub 3000 Teu vessels can those be also of source of of cash for four of workout.
You know.
Of course, this is always something that we've examined.
The problem is that today.
Ah I mean by.
The value that someone is paying for these ships.
Is less.
And then.
But the actual.
Present value of the charter book.
Plus scrap.
Of the shape of the bases of the available.
The charter rates and durations to date, so what's the point.
Oh, just holding the yeah the.
The nice source of income and cash fully depreciated assets.
Exactly I think people who are doing who are selling are people, who would like maybe to invest.
And the other of sector some private entities.
And the.
On the other hand, maybe you know there are funds.
Who wants to get out.
We do not really having the prevailing prices they've made the good debt.
The return on their investment and they just want to get out.
And they are selling.
Uh huh.
But for ourselves doesn't really make sense.
Okay, John that's clear thank you very much.
Thank you.
And the next question will come from Andrea <unk> with Jefferies. Please go ahead.
Hi here from the credit side I mean first of all yeah, just chime in and say congrats on the results clearly fantastic.
And.
I hate to be a broken record, but you know got a lot of questions around this war chest and work to do.
And in the context of you, having just issued a bond in refi the structure I mean, I think the takeaway from bond investors at that point was that the the funding mix was going to improve over time.
The more unsecured versus secured debt.
Natural deleveraging with paying down the secured I think I've heard you multiple clients talk about the current ship valuations are way overvalued underwriting and single digit equity returns.
Just trying to take that and then understand the need to build this war chest against that and just have it on the balance sheet because I guess.
With the desk profiles that you have do you have a very flexible setup, where you could prepay secured debt.
And of course, a half of those excess cash proceeds and then when's the market actually turns and you see opportunities.
Can you go in kind of real average back rather than cash.
Paying an average interest cost for the next and then having the cash on balance sheet. So just wanted to try and understand a little bit more how you think about that.
I'm, sorry, if I may John.
Very quickly after English so we are not.
A pinch point committing to future capital allocation decisions and obviously.
Having a big pile of cash sitting on your balance sheet.
It's not the most productive use of capital if this happens for for a long time right and all we're saying is that in the in the pilot of our capital allocation decisions growth is at the forefront as a true.
B, we believe.
And then the.
If we can use.
Excess cash to further delever improved the credit profile of the company.
And the credit ratings for the Mopper, which would further improve our.
The pricing on accessing the bond market.
May very well do so.
We will have the option open.
Set the priorities.
The deleveraging is one of them.
But if we can if we can source projects that produce returns.
That meets our return threshold criteria.
But at the end of the day.
The make the company more profitable.
And we entered into accretive projects.
We win we will do so as a matter of priority always with the focus on maintaining a low leverage as we have stated.
Before.
Okay. That's helpful. I mean, if I may follow up on that day, I realize it's tough against growth opportunities, but if we just say across the cycle.
Do you have a view of what you think is the right leverage for this business.
I think we.
We have set the target between three to four times.
We are at this point with our last 12 months EBITDA, we are at four times.
On the basis of all of our 2021 run rate EBITDA, which is 95% contracted so we know what it is we are below three three times.
And by year end and with the war chest pumping up net on the net debt to EBITDA basis is going to be way below three times.
So you said that the leverage.
Leverage levels between three to four is within the comfort of the idea of what we are what we.
We consider a safe and sound capital structure.
And I think we have every ability to pursue them.
In the interior of it may come down, but then one who pursue growth may go up three of three and a half time sort of whatever.
Yeah, but that makes sense, if you can underwrite the double digit unlevered returns.
Yeah.
Okay. Thank you.
Okay.
And the next question will come from Georgia, Berman with Cabot Lodge. Please go ahead.
Colin Murra of gentlemen, and congratulations to a great quarter.
Thank you.
I'm I'm someone new to the company recently became shareholder question I had on the position in Zim share I said, obviously, it's working out quite well for you have you considered or would you consider maybe spinning of those shares off to you our shareholders as a distribution.
And as we said.
You know there is no let's.
Let's say special dividend.
Uh huh.
We want.
Yeah.
Let's say all of these non operating assets of the company.
The end to be used for.
What are the growth of the company.
And eventually investors will be rewarded by growth.
The company not by the liquidation of the company.
Fair enough.
If you were to monetize the position what kind of tax consequences would there be on on the company.
Obviously, you don't know the.
Great.
Yeah, there are no tax consequences of the company.
Okay, Great and I wanted to say congratulations you're of the first company in the shipping scenario in general that has stayed at the.
Basically publicly today on the conference.
Not looking to buy additional chips I think that is a very good position to be in especially with the changing environmental situation here that you take the wait and see attitude.
Yeah.
Yeah well.
That said the market each of our ceded.
Shipping.
It's always.
And we will always be a cyclical business.
And Oh, we have made our investments in the low part of the cycle.
Now its the time just the leap rewards.
Yeah do you as a one off of a large fleet of containers ships do you have any insight into when the.
The stacking up of ships for example of at the Los Angeles Port of Los Angeles, when that is going to normalize.
And that's nothing really of that.
We are involved in the that are you should really ask the Los Angeles Port authorities there.
[laughter], Okay, I look forward to a photo of a bright future for you and thanks for taking my call today.
Thank you.
At this time of the parents, we have no further questions and I would like to turn the conference back over to Dr. <unk> for any further comments or closing remarks.
Well.
Thank you very much for your interest in the mouse.
After the start of great quarter will continue to work towards delivering improved returns for our shareholders. Thank you.
The conference has now concluded. Thank you for attending today's presentation and have a wonderful afternoon.