Q2 2021 Vishay Precision Group Inc Earnings Call
[music].
Good day and welcome to the V. P. G second quarter 2021 earnings conference call.
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Please note. This event is being recorded I would now like to turn the conference over to Steven Cantor. Please go ahead.
Thank you Betsy and good morning, everyone and welcome to <unk> 2021 second quarter earnings Conference call. Our Q2 press release and accompanying slides have been posted on our website an audio recording of today's call will also be available on the internet for a limited time and can be accessed on the V.
P G website.
Today's remarks are governed by the Safe Harbor provisions of the 1995 Private Securities Litigation Reform Act. Our actual results may vary from forward looking statements for a discussion of the risks associated with Btg's operations. We encourage you to refer to our SEC filings, especially the form 10.
K for the year ended December 31, 2020, and our other recent SEC filings on the call today are ziv, so shiny CEO and President and Bill Clancy, Chief Financial Officer, and now I'll turn the call to Z for some prepared remarks, please refer to slide 3 of the quarterly presentation.
Ziv.
Yeah.
Thank you Steve.
I will begin with some commentary on V. P. G's consolidated financial results and sales trends for the second quarter Bill will provide financial details and our outlook for the third quarter of 'twenty 'twenty 1.
Slide 3 we are pleased with our results for the second quarter.
We achieved solid sales performance of $75.3 million, we ended the quarter with a book to Bill of 1 point full as we grew our orders.
23.3 per cent sequentially.
I understand 5.4 million, reflecting strength across our businesses and end markets.
And the inclusion of D T S backlog.
We executed well operationally and group adjusted gross margin to 42.3 per cent.
Adjusted operating margin to 12.2 per cent and our adjusted EPS to <unk> 49 cents. We also generated strong cash flow and adjusted EBITDA margin of 16, 6%.
We are excited about the acquisition of D. T S, which we completed in June.
And we are.
In the final stages of completing the move of advanced sensor manufacturing to our new facility.
Moving to slide 4.
Looking at the second quarter sales results in more detail.
Sales grew 27, 4% from a year ago, and 6.7% from the first quarter.
On a sequential basis business trends were positive and we ended the second quarter with a book to Bill above 1.2 in all 3 reporting segments.
In each [noise] excuse me in each of our end markets. We had the book to Bill above 1 and with the exception of industrial weighing all the end markets, where it's 1.3, Ohio.
The individual end markets with formed as follows in the test and measurement market sales grew 12.9% demand in this market remains strong.
Strong levels.
All of those will it sustained levels compared to Q1, which reflected ongoing strength related to the semiconductor process control and test equipment.
Sales rose 24, 9% in the transportation market and orders increased 45, 3% due to the inclusion of the D. T S backlog.
Sales to the steel market group 8.
8.6% sequentially, reflecting increased customer activity and improved.
Fortunately, but even demand.
Still related orders continued to rebound in group 21.4 per cent.
While sales in general industrial was up modestly.
All this group, 42% driven by oil and gas and general tooling.
Sales and orders to the industrial weighing will flat.
In the avionics military and space market sales declined by 2.6% while orders grew 85 per cent from Q1, which included approximately 3 million form D. T S backlog.
The net result of these trends was.
It was a book to Bill of 1.4 for the second quarter and the backlog of 110.39 million an increase of $32 million from the first quarter of 2021 which includes $7.1 million of backlog from D. C. S.
Moving to slide 5.
Turning to the results by segment.
Foil technology products second quarter sales of 33.3 million well, 1.8% higher sequentially, primarily due to higher sales of precision foil resistors and Pacific instruments system.
Compared to a year ago FTP sales grew 4.8% primarily driven by advanced central.
While advanced sense, why while advanced sensor second quarter sales were 22, 6% higher than a year ago.
Revenue moderated from Q1 due to the transition to the new manufacturing facility.
We incurred $1.2 million of startup costs related.
Related to day to this transition in the second quarter.
We expect the transition impact on revenue to extend through Q3.
As we anticipate completing the move to our new facility in the third quarter.
Demand for those products continued to grow increasing approximately 19% sequentially.
Backlog for advanced sensors group.
More than 16% sequentially.
Which positions us for a good post transition the non REIT.
Adjusted gross margin for FTP was 42.6 per cent, increasing from 44% in the first quarter.
As a result of higher volume manufacturing efficiencies and higher inventory levels.
Book to Bill for FTP was 137 in the second quarter, which reflected a 17, 5% sequential.
Sequential increase in orders.
The strength in demand was driven by precision foil as these stores for a M S as well as for advanced sensors.
Before sensors segment reported another quarter of strong performance as it continued to manage well to COVID-19 related challenges facing India.
Second quarter sales of $17 to $17.2 million improved 1.7% from the first quarter.
And with 93.1% higher than a year ago.
Recall that in the second quarter of 'twenty 'twenty.
This segment was adversely affected by Covid related production limitations.
At our facility in India.
While COVID-19.
In infections rates remain an ongoing issue of course, many parts of India.
We continue to operate it's fully capacity given our exemption from COVID-19 restrictions due to the critical nature of our products.
The strategic growth initiatives to expand force sensors OEM business.
<unk> continues to perform well.
Oh, Yeah revenue grew 7% 7.5% sequentially.
Financially.
For Central's adjusted gross margin of 35, 4% in the second quarter declined modestly from a high level of 36% in the first quarter, but improved significantly from 19, 6% a year ago.
The sequential decline was primarily due to.
Unfavorable foreign exchange exchanges, partially offset by higher inventories in volume.
As we discussed in me.
We we expect gross margin for force sensors, if comparable revenue levels and book.
The mix to be 30% or above given higher costs.
Related to expanding our China manufacturing index.
And the expected impact of tariff for our China production for that.
Its level of 30% plus this is a step function improvement over the average margins. We recorded for this business over the last several years.
The book to Bill for force sensors of 1 point to 23.
Reflect all the momentum in our other markets, mainly precision agricultures and.
And consumer.
Sales of weighing and control systems in the second quarter of 24.8 million increased 18, 5% sequentially and $34.5 per cent for me a year ago.
Quench Lee the Ohio sales reflected the addition of approximately 3 million of sales from D. P. S as well as higher sales of force this weighing solutions and killed or debt.
Sales from our truck William Van with initiatives group.
123, 7 per cent for me a year ago, but softer than 9.5% sequentially.
Selecting slower industry production of trucks.
Advanced due to ICM component shortages.
We have seen increased customer interest in our solution since new you overloading regulations went into effect in may of 'twenty 'twenty 1.
And we expect this interest to translate Inc.
In all of those is.
Is the availability of new vehicles in pools, and the EU countries continue to amp up the enforcement of the new regulations.
Adjusted gross margin in the second quarter for WCS was 46, 6%, which includes adjustments for acquisition related cost as well as COVID-19 impacts.
And improved from 44.3 per cent in the first quarter.
Mainly due to the addition of D T S and higher revenue of WCS border.
In terms of all the trends.
In the WCS segment orders grew 41, 3% sequentially, reflecting the addition of D. T S as well as continued demand recovery for our steel related products.
We have discussed previously older 4 kettles, India, Seil generally driven by customers' capex budgets.
Which in case of killed typically have a 2 quarter lag relative to inflections in the steel market.
With regards to the steel market the book to Bill combined full Kelton DSI was 172, which is a positive indicator for revenue in the second half of this year and in 2020.2.
The result of these WCS all the trends in the second quarter was the book to Bill of 1.56.
Moving to slide 6.
Before turning the call to Bill.
I will make a few additional comments.
In terms of Covid, all our facilities.
Currently open and operational give.
Given the rise.
In Covid cases around the world, we continue to be proactive in taking measures wherever needed to protect our employees and our customers.
On behalf of the board and our management team.
I want to thank all of <unk> employees for their dedication and customer focus during this current wave of the pandemic.
I also want to comment.
On 1 of the key highlights for the quarter the acquisition of Dts on June 1st.
EPS is a leading manufacturer of data acquisition systems and sensors for product and safety testing.
It is an established in each market leader with a strong brand and superior technology as well as talented management team with a deep business and technical knowledge.
D T S not only adds complementary technology to our platform, but it brings unique engineering capabilities centered on utilization data acquisition and system integration with sensor technology for critical testing applications.
As a major supplier of embedded data acquisition and logging capabilities for crash test Dummies bps will give us.
Resin in the automotive market as well as add to our offering in the avionic military and defense market.
We believe the T. S will continue to benefit from the global need for specialized safety testing technology that these expanding formed automotive and avionics sectors to sports applications.
Over the next 12 months, we believe the D. T. S has the potential to generate $30 million or more in revenue with an adjusted EBITDA margin over 20 per cent.
We are continuing to look for attractive acquisitions.
The only piece that will further accelerate our growth and profitability.
I will now turn it over to Bill Clancy for additional financial details Bill.
Yeah.
Thanks, Steve.
Turning to page 7 and the reconciliation tables is a slide deck in the second quarter of 2021 we achieved revenues of $75.3 million.
Gross profit of $29.8 million or 39, 6% of sales.
Operating income of $4.9 million or 6.5% of revenues and net earnings per diluted share of 2009.
On an adjusted basis, which we lay out in a reconciliation table in the press release.
Gross profit was $31.9 million or 42.3 per cent of sales.
Operating income was $9.2 million or 12, 2% of sales and net earnings per diluted share was 49 cents.
Our second quarter 2020 on revenues grew 6.7% compared to $70.6 million in the first quarter.
And we're at 27, 4% above the second quarter a year ago.
Foreign exchange for the second quarter of 2021 positively impacted revenues by $2.8 million compared to a year ago and $200000 as compared to the first quarter of 2021.
The gross margin in the second quarter was 39, 6% compared to 45% in the first quarter.
On an adjusted basis second quarter gross margin of 42, 3% grew from the 45% in the first quarter of 2021.
Our operating margin was 6.5% for the second quarter of 2021.
Our second quarter adjusted operating margin was 12, 2% excluding acquisition purchase accounting adjustments.
Facility startup costs or advanced sensors acquisition costs.
Goodwill impairment charges related to Pacific answer it and COVID-19 related subsidies.
This represents an increase from the $8.7 per se.
We recorded in the first quarter of 2021.
Selling general and administrative expenses for the second quarter of 2021 were $22.5 million or 29.8 per cent of revenues compared to $18.6 million, but 31% of revenues for the second quarter of 2020.
The increase in SG&A of $3.9 million, mainly relates to $1.1 million for foreign exchange rate impact.
$1 million for bonus accruals 900000 related to the Dts acquisition 300000 of wage increases and 600000 of other costs.
The adjusted net earnings for the second quarter of 2021 were $6.7 million or <unk> 49 per diluted share.
Compared to $3.6 million or 27 cents per diluted share in the second quarter of 2020.
Adjusted EBITDA was $12.5 million or 16, 6% of revenue as compared to $8 million or $13.5 per se.
Capital expenditures was $2.6 million, the majority of which reflects purchases and related infrastructure for the new advanced sensor facility.
As a result of these investments we generated free cash flow of $4.2 million for the second quarter of 2021 as compared to $3.1 million for the second quarter of 2020.
We define adjusted free cash flow as cash from operating activities less capital expenditures plus sale of fixed assets.
We currently expect capex to be in the range of 20 million to $23 million for the full fiscal 2021.
This includes anticipated costs related to the newwave assets, our facility as well as manufacturing expansion and enhancement projects for precision resistors.
The GAAP tax rate in the second quarter was 6.1%, which includes a onetime tax benefit of approximately $1 million associated with the Dts acquisition.
We are assuming an operational tax rate in the range of 25 to 27 per se for the full year of 2021.
Moving to slide 8.
We ended the second quarter with 73.5.
<unk> 5 million of cash and cash equivalents and sort of long term debt of $60.7 million.
We believe that we have a strong balance sheet and ample liquidity to support our business requirements at the fund additional M&A opportunity.
At the outlook, given our order flow and backlog we are optimistic about the second half of 2021 and beyond.
For the third fiscal quarter, we expect net revenues to grow sequentially and being the range of 81 million to $87 million at constant second fiscal quarter of 2021 exchange rates.
In summary, we performed well in the second quarter growing our margins and adjusted EPS and generating good cash flow.
We had strong orders of $105.4 million across our business at a book to Bill ratio of 1.4.
We are pleased with the addition of Dts and what they bring to <unk> going forward.
With that let's open up the lines for questions. Thank you.
We will now begin the question and answer session.
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At this time, we will pause momentarily to assemble our roster.
The first question comes from John Friends Webb with Sidoti <unk> Company. Please go ahead.
Good morning, everybody and thanks for taking the questions.
Ziv I wanted to start with some of the end markets here.
Particularly with your commentary in the steel market.
Flattish business, but if I heard you correctly you said the book to Bill in Steel was 172 I Wonder if you could talk a little bit about debt, what's the duration of the delivery times in that business kind of put it into context force.
Yes.
Yes.
Regarding the steel market to John which is mainly represented by the Italian calpol debt.
Hum the indication is that the many companies and as you see the.
The metal prices are going up or starting to reinvest to increasing capacity and improving.
The cost reduction in the steel mills, we have seen a very strong demand of 172.
Equally the backlog.
Say day lead time for those bullshit, driven all between I would say at home too.
5.4 to 4 to 5 months bill for the old those debt that we currently older intake. The storm older intake that we currently see will be reflected in a much higher sales as I indicated.
Half of the U S.
To the first and.
Into the first half of 'twenty 'twenty 2.
Got it.
Similarly in the avionics and defense and military business.
What kind of order trends, you're seeing in that marketplace has seen any kind of strength there.
There its kind of also been kind of flattish.
Yes, the we have seen an improvement on the on the on the on the a M S.
A M S.
To build <unk> for the company was.
Well he's the 1 was 167 for the second quarter, and we have seen much stronger demand coming back from.
Bullshit, mainly for precision lose these tools.
And and Pacific instruments.
Which which Oh what did it go was muscle force, yes, so we don't see a rebound.
In demand.
And is that all deliverables this calendar year.
So yes, it is expected to be shipped yes, yes, the day lead time.
The lead time, Inc.
Those are cool.
The type of product.
I would expect it to be more.
More in line with all of you know repeatable business. Therefore, it is expected to be shipped in the second half of this deal.
Got it and just on D. T S. Great contribution from the from the business from the get go I Wonder if you could talk a little bit about how that revenue performance is today versus maybe debt pre COVID-19 levels. During 2019 is it up to that level.
Some opportunity can you just put it in context for us.
Well in fact.
Just just to give you D. T S. As we have reported 3 billion dollar revenue growth small adjusted gross margin of 64% adjusted operating margin of 32, 6% in fact, the company before we acquired them when we looked at the historical numbers, we have not seen any.
It has significant impact.
Due to Covid.
And we do see a continuation in momentum.
For Dth business due to the fact the delta there.
He is a continuation.
The strength in the automotive business, the testing and introducing new car models and this is and this is really a V T S.
Cool cool business automotive safety. In addition, the 80% of its business. In addition to 20% which is a M. S safety, which is also a fairly strong.
There is strong demand therefore.
The Dts continues to go slogan, we have not seen any significant decline.
By the Covid environment.
Okay, all right. Thanks for that <unk>, I'll actually get back into queue. Thank you.
Thank you.
The next question is from Sarkies share button with B Riley Securities. Please go ahead.
Hi, Good morning, and thank you for taking my question here.
Good morning.
Good morning, Jackie.
So just wanted to touch on the outlook here pretty strong right 81 million to $87 million in third quarter sales.
Obviously dts is folded into that Youre seeing strong book to bills in across all your segments.
And just just to help me with my math here, if if youre going to close let's say on the low end and $81 million quarter, Shouldnt EBITDA kind of being that let's call it $14 million to $15 million range on the low end helped me understand if the contribution assumptions are correct or should we see anything different from a profitability standpoint.
As you know sakes too we don't give any guidance, we go it profitability or margins for the following 4 <unk> for the next quarter. In this case, it's Q3 only sales guidance. The sales guidance of 81 to 87, which is the which leap, which lets say it to meet the point, it's 1.9 million higher.
We are looking sequentially, we are looking at favorable impact of the full quarter of Bts, which we would expect it to be another $5 million is a full quarter effect.
In addition to to another 4 million are being delivered by our by our steel related products, which is Kent can DSI.
In in FTP.
We are looking at a few factors on 1 hand, we have the a S transition in Q2, which in Q3, which is expected to be finalized, which we would expect to see some lower margins due to the fact that we are putting in place.
Qualifying the last piece of the equipment naturally in Q4, we should see it much.
Higher revenues once the transition has been completed in addition to the fact that historically in Q3. We had also you will be in the seasonality effect coming from Europe. In addition to the fact that mainly FTP is being impacted by having less working day.
Due to the Israeli national holidays, which are all in in September for D. C. You. So.
Given all the ups and downs.
We are looking all in all day.
At the midpoint, it's round about.
As I said 9 millions all upside.
With respect to the second quarter.
Yes, understood and I think that kind of sets up for the next question. So regarding kind of the order strength and typically the September quarter for you guys, it's fairly seasonal so.
Do you think the fourth quarter of this year at least from a topline perspective looks better than the third quarter that you've outlined or should we expect something kind of in this zip code.
The guidance you've provided for the third quarter.
Well.
If I may say, so if he's not we're moving into the full fourth quarter guidance.
At least to.
You know based on what we have indicated we are expecting to have.
Second strong second half year.
Yes, no understood and then finally for me you know for advanced sensors. It sounded like some of the transition might have acted as a headwind to revenues in this quarter and you still expect to kind of complete the moving into third quarter here.
Wanted to get an understanding of I think you mentioned in the prepared remarks backlog grew 16% Q on Q for advanced sensors. So what would the run rate be for for sales. If you will on an annualized basis for that product category.
So at this point in time in the second quarter since we realized $1.2 million of startup cost and the expectation would be also to be at the 178 times debt in the third quarter we.
We are still a you know qualifying some key equipment processes.
Do we.
We chose to an extent does not allow us to get to the full net to the full capacity.
The expectation is that by the end of the third quarter of once a day.
Transition has been completed we would have.
In place.
The additional 25 per cent of equipment capacity in respect to Q1, depending on the product mix.
And the backlog.
With the additional equipment capacity, we would be able to support too.
Much higher revenue in the fourth quarter once the transition has been completed.
Thank you I'll hop back in the queue.
The next question comes from <expletive> Ryan with Colliers. Please go ahead.
Thank you.
With the you know deep broad end market exposure you have in the.
Supply chain concerns that we've heard about are kind of across the board with most companies did you see any revenue pushed or deferred out of Q2 and was there I know you've had logistic cost increases but were there any specific margin impacts.
Due to the supply chain.
Okay. So in regards to supply chain, we have seen an increased logistics costs, mainly for force sensors was coming from Asia.
2 where you will find the United States, Oh, I would say logistic surcharge. We are we have been discussing with the customers to our [noise].
To increase the prices or to allow for additional logistics surcharge in order to offset these effects.
In addition to debt.
As you know and and there is some discussion regarding cheap shortage. So in terms of sourcing components, we have not experienced any significant impact to date to our supply chain from the global cheap shortage.
Delivery lead time to our customers remain competitive and we continue to monitor it.
Very very well.
In some cases, we have seen higher component costs as we work to ensure the supply and we are trying to pass it to our customers. We are also increasing inventories in some key IC components like microprocessors, where we identified.
Identified there is a potential shortage.
But yeah we.
We do not believe that those additional costs will be significant in the third quarter in.
In the second quarter.
And I did mentioned debt to.
Before there is an impact in new vehicle in new vehicles being introduced to the market due to components availability.
We estimate that these headwinds for approximately $400000 level for additional revenue in the second quarter and probably also in the third quarter coming.
Mainly for our onboard weighing products line.
But those would be probably the main super.
Fly chain concerns.
We have identified.
Okay, great. Thank you and force sensors I think you said there was a nice increase in the OEM business I'm not sure if I caught the percent increase or if you gave the actual dollar amount and as that business coming from existing customers or are you seeing new wins there.
So I did identify that the there is an upside for OEM business. It is coming from precision AG, but also for our consumer customers.
Being from new applications, and I would say to an extent.
We we had those customers, but but but the business has grown those have been designed deemed it.
This came to fruition and now we're starting to realize the larger production volume mainly again in precision AG, but also in consumer mill full force sensors, which while consumer was fairly small little pulse full central's before.
Okay. Thank you on the end market test and measurement you mentioned strong Sammy.
Or are you seeing any kind of digestion period or kind of a consolidation period for your semi business.
Going through the second half of this year or are you still seeing some pretty strong underlying trends.
When I speak about our semi business, which mainly relate to precision resistors. The demand. We currently realize he's come it is coming from the OEM. If I look at the sales channel and distribute those are they still have a fairly low level of inventory. So at this point in time.
We do believe that.
Once those inventories will be depleted its I will stay with those in debt and they have not placed any sticky.
Significant orders in the last.
The 6 months of this year, we would expect to see an additional demand coming.
From from distributors, but at this point in time, the main driving force for the demand of the OEM.
Therefore, we do not expect.
At this point in time to see major changes as we move into the second half of this year.
Okay. Thank you.
Yeah.
As a reminder, if you have a question. Please press star then 1 can be joined into the queue.
The next question comes from Bill Day Xylem with tightened capital. Please go ahead. Thank.
Thank you a couple of questions first of all relative to Pacific instruments, and the fact, they had sequential revenue growth and yet you did the goodwill write off would you kind of discuss that those 2 contrasting aspects.
Yeah, Bill I can I can handle that I mean basically this is.
Yes, the goodwill impairment test is always based on an accounting calculation now you look at what you presented our proposed to avid.
Forecast from a year ago, and even though we've seen sequential increases in revenue for precision mentioned.
The full year, we still see it.
Not hitting the targets and just based on the accounting methodology running through the process. We took the impairment this quarter.
And now for Pacific instruments.
All of the goodwill has been completely written off.
Thank you and then a totally different question you have your revenue model and that you have published in prior presentations and with that it would indicate that that 75 million of revenues that the EPS would be closer to 42 cents high in that model y.
Did you end up being.
Being above the revenue model.
Ah well.
We will build this is a very good question. The target model. We have introduced in 2019 did not include the debt time, the acquisition of bps and DSI, we also need to update it for.
For the exchange rate, which has been which also has been changed dramatically mainly the.
The Israeli shekel and you buy the we may see the you see the foreign exchange rate effect, which is 8 times with negative quarter over quarter, but also a quarter of a year ago.
So we are in the process of updating debt the modal and anticipate to introducing <unk> in the fourth quarter.
Great. Thank you and and the implication then as Ive would be for the third quarter and that you would also end up with earnings that would be above what the what the model would otherwise indicate.
Given the 2 it okay given the 2 acquisitions.
It has not been the debt we have not accounted in the model.
Aye.
I would assume that your COVID-19.
Great.
But but but please bear in mind that the model itself.
It doesn't come plus topline, but also it will fit ability and cost related to the targets. So so once we would update the model based on the.
Based on on integrating and updating the exchange rates, we would be able to.
<unk> provides as we did before with more comprehensive modal which accounts for all those moving parts.
Oh, that's that's very helpful and I'm just thinking in terms of the 62 to 87 cents of earnings is that that model indicates that the $80 million to $85 million of revenues. We can just recognize.
Recognize that the model is not entirely taking everything into account and the 2 acquisitions are accretive to that model. So.
That that's just directionally the way to be thinking about it then it sounds like.
You, you'll absolutely call. It the model at that time did account for pure organic growth.
Which which would would be in a way for every additional incremental revenue there will be a certain percentage dropping into the pretax level. Once we have accounts for those 2 acquisitions, we should accounts not only for the topline revenue, but we should also it.
<unk>.
For what.
For the fixed cost and the SG&A cost associated with those with those companies before the complete modal has fully volume has to be revised.
And we will provide the children.
Thank you and thank you for having our acquisitions that are accretive.
And.
Beneficial to the model.
Right.
Thank you.
Thank you.
The next question is a follow up from John Frans Rep with Sidoti <unk> Company. Please go ahead.
Actually it's it's very much along the lines of the last 2 questions I was essentially going to ask.
With the 4 accretive acquisitions.
How does it how does it change at 30% to 50% incremental op margin.
So to answer or not depending on how you feel comfortable.
Well, John as I said.
We will have to revise the modal.
At this time, the modal doesn't only accounts for those acquisition and also to update the exchange rate. So.
Therefore, the top line.
Topline revenue.
It does not correlate to the bottom line profitability.
In respect to the modal we just have to revise the modal.
Okay that was my follow up question, but ziv revising it the way it sounds like it's a good day.
Congratulations.
Thank you John.
As a reminder, if you have a question. Please press star then 1 to be joined to the queue.
Yeah.
This concludes our question and answer session I would like to turn the conference back over to Steve Cantor for any closing remarks.
Thank you before concluding I want to note debt, we will be participating in a number of investor conferences in September, including the Sidoti Colliers and D. A davidson conferences and we'll be posting some information about debt on our website with that I'd like.
Thank you all for joining our call and have a good day.
The conference has now concluded. Thank you for attending today's presentation you may now disconnect.