Q2 2021 AYRO Inc Earnings Call
Ladies and gentlemen, thank you for standing by and good morning, and welcome to the Arab Inc. Second quarter 2021 financial results and corporate update conference call. At this time all participants are in a listen only mode should you need assistance. Please signal conference specialist per person of the store keep all advice of euro.
After todays presentation, there will be and opportunity to ask questions to ask the question you May press. The Star then one on your telephone keypad to withdraw your question. Please press Star then two participants of this call of our advised that the audio of this conference call is being broadcast live over the Internet and also of being recorded for replay back purposes.
Webcast replay of the call will be available approximately one hour. After the end of call through November 11th 2021, now I would like to turn the conference ever and Scott Gordon and of course, I or the company's Investor Relations firm. Please go ahead Sir.
Thanks Cole good morning, and thank you for participating in today's conference call. Joining me for me Russ leadership team, a rock killer, President and Chief Executive Officer.
Curtis Smith, Chief Financial Officer.
During this call management will be making forward looking statements, including statements that address a roche and expectations for future performance or operational results.
Forward looking statements involve risks and other factors that may cause actual results to differ materially on those statements for more information about these risks. Please refer to the risk factors described and Arrow. It's most recently filed periodic reports on form 10-K filed with the SEC and he was press release and accompanying this call.
Kelly cautionary statements in it.
Today's conference call includes adjusted EBITDA, and non-GAAP financial measure and Ara believes can be useful in evaluating the performance you should not consider this additional information and isolation or as a substitute for results prepared in accordance with GAAP. A reconciliation of this non-GAAP financial measure to net loss its most.
Comparable GAAP financial measure please see the reconciliation table located and arrows earnings release.
Which is available on its website at www dot payroll dot com under the Investor tab the cause.
In fact of this call contains time sensitive information that is accurate only as of today August 11th 2021.
Except as required by law and a rug disclaims any obligation to publicly update or revise any information to reflect events or circumstances that occur. After this call. It is now my pleasure to turn the call over to CEO Rod Rod. Please go ahead.
Thank you Scott good morning to everyone on the call.
During the second quarter of 2021, we.
We continue to make significant progress in advancing arrow into the commercial manufacturer of electric vehicles are evs and doing so and accelerating volumes.
As we've talked about before we believe we have built a world class infrastructure and and ecosystem through our numerous partnerships with best of breed companies like Karma automotive.
Club car.
Gallery, and the element fleet management and.
And each of these partners address a key role and our ability to scale rapidly and efficiently and profitably.
In June our partner club car officially announced the launch of the current and the current is our next generation purpose built low speed utility truck that is ideally suited for universities campuses and venues and it comes with upgrades and features and safety over the first generation 411 EV.
This is a major milestone for arrow and and demonstrates our ability to bring innovative purpose built tvs to the market.
Now it's important to understand that the initial shipment of raw materials and parts for the club car current arrived from China late in the second quarter.
And when combined with our transition to assembling the current at Corvus facility in California as opposed to the previous generation 411 being manufactured in our Austin, Texas facility. This led to revenue declining sequentially by approximately 265000 and and unfortunately snapped our streak of six consecutive quarters.
Of sequential revenue growth.
However, I think it is critically important for me to emphasize and for our investors do understand that our sequential revenue decline is by no means indicative whatsoever of the future of barrel or the future demand profile for the current.
In fact, we won one could say it's just the opposite in fact purchase orders placed by club car and just the first two months following the current launch our value to the total of $4.9 million.
And we're seeing strong demand and anticipate future orders for not only club car, but also gallery and element, which each of each also have agreements with club car and in effect also serve as additional distribution outlets and vendors approved to sell the current to their commercial customers.
And looking at just college campuses, we believe Theres over 100000 trucks and light duty vehicles, each year, the need replacing and currently just 10% of those vehicles are evs and.
This is an incredible opportunity for Aero given the vehicle footprint and the emission advantages of the current not dementia and the 49% reduction and annual operating expenses per vehicle and we estimate the current would offer over traditional gas powered trucks.
Now, let me switch to the anticipated rollout and we talk about so often of our three of 11 Ax.
The three of 11 acts as our next generation three wheeled vehicle that will target the last mile and restaurant delivery markets and we reiterate our expected timeline.
We anticipate a soft introduction of the three of <unk> later this year with expected production to commence in 2022.
The restaurant delivery market is a $45 billion opportunity and the U S and it is significantly bigger than the campus and the stadium market opportunity. We are pursuing with the club car current.
And our efforts to target this large market are not being done in a vacuum.
Rather we are in constant discussions with dozens and dozens of restaurant change many of which are household names, but that we won't disclose for competitive reasons.
We are speaking with them about the features they are looking for and a delivery vehicle to Russell control of the delivery process away from the door Dash is the Uber eats and the Grubhub as the world, which are drastically cutting into the margin of these restaurants, given the ubiquity of fast food delivery of these days.
Our partner element is the worlds largest fleet management company and has extensive relationships with commercial and fleet buyers and the infrastructure to support all facets of our customer purchase or lease as well as maintenance storage and the like.
We do not believe any other EV manufacturer on the market today and as such a key partnership that can be pivotal and clothing negotiations and generating purchase orders.
Simply stated we cannot wait to launch the 311 of X and hopefully our ability to launch the current provide some comfort inn and proof of our ability to execute our strategy.
Now moving on to our electric vaccine and vehicle or the E V V and the recent surge and the Delta variant shows the vaccinations will continue to play a vital role and returning the country and the world the normalcy of eventually.
About a month ago, president by the announced the greater emphasis going forward on a desire to provide vaccinations at the community level.
Doing so closer to homes and at locations people are already familiar with and the shift away from centralized mass vaccination sides of.
The ABB can be and ideal resource and this given its small footprint and ability to be an all inclusive of distribution side, but.
But as I've mentioned before we are encouraged by the feedback we've received about the EBV and now we're simply having to work with the long sales cycle, the inherent when dealing with government agencies.
Lastly, I think it's important I'd like to point out the we had nearly $88 million and cash and at the end of Q2 and zero debt at the end of the quarter as well.
And with that I'll turn the call over to our CFO, Curt Smith, who will review our financial results Kurt.
Thank you Rod and good morning, everyone. Here's the summary of our fiscal second quarter 2021 financial results.
Revenue for the second quarter ended June 32021 grew 83% to $522000 from $286000 from the quarter ended June 30 of 2020.
The increased revenue was primarily due to additional sales of our trucks. The club car related powered food box sales to gallery cards as well as other vehicle time border options.
Gross margin percentage for the quarter ended June 30 of 2021 was 17, 5% as compared to 28, 1% per the quarter ended June 30 of 2020.
The decrease in gross margin percentage of was primarily due to an increase in tariffs on raw materials imported from China and.
And an increase and shipping costs due to the global COVID-19 pandemic.
Vehicle sales prices were included in January where increase in January 2021, the partially offset these cost increases.
Total operating expenses for the quarter ended June 30 of 2021 increased to $7 million $773000.
From $1 million $134000.
For the quarter ended June 30 of 2020.
The increased total operating expenses were primarily due to increase and research and development expenses as we continue to design and develop our next generation delivery vehicle as well as higher general and administrative expenses.
Research and development expenses rose from $181000 and the quarter ended June 30 of 2020 to $3.042 million for the quarter ended June 32021.
The higher R&D expenses were related to additional personnel cost for engineering design and research teams as we expanded the suite of option packages for our vehicles and initiated development of our next generation delivery vehicle during the first half of 2021.
Sales and marketing expense for the quarter ended June 30 of 2021 was $669000 and increase of $430000 over the over the $239000 and expenses during the same period of 2020.
Horizon from and expanded sales and marketing staff and marketing related initiatives surrounding our next generation delivery vehicle.
General and administrative expenses for the quarter ended June 30 of 2021 were $4.062 million as compared to $715000 for the same period and 2020.
Much of the increased G&A expense was tied to an increase of $1.47 million and stock based compensation expense during the 2021 period as well as $1 million and additional professional services to support public company reporting requirements and.
And an additional $596000 and compensation expenses due to corporate expansion.
Net loss attributable to common stockholders for the quarter ended June 32021 was $766 million on a GAAP basis versus the loss of 153 million for the same period and 2020.
The aforementioned increase and operating expenses largely drove the increased net loss for the quarter ended June 32021 are.
Our GAAP net loss per share for the quarter ended June 30 of 2021.
Was the negative <unk> 22 per share versus negative <unk> 18 per share and the quarter ended June 30 of 2020.
The weighted average common stock outstanding at June 30 of 2021 was $35 million 315044 shares as compared to $8 million 291351 share since June 32020.
Adjusted EBITDA, a non-GAAP measure was the negative $5.9 million for the quarter ended June 32021 versus negative $683000 for the quarter ended June 30 of 2020.
Adjusted EBITDA for the quarter ended June 30 of 2021, including the adjustments.
Of $129000, and depreciation and amortization expense and $1.64 million of stock based compensation.
I am pleased to report that our contracted backlog is as of June 30 of 2021 was $1.816 million, which we expect to be fulfilled over the next few months.
Turning to the balance sheet cash at June 30 of 2021 was $87.9 million of $51.1 million increase as compared to $36.8 million and cash at December 31 of 2020.
The strengthened cash position is due to the two registered direct offerings completed in the first quarter of 2021 offset by the net loss net of some of the net losses and the first and second quarters of 2021.
Total debt at June 32020, 110 versus 22000 of December 31, 2020.
As of June 30 of 2021, the company had 36 million 304362 common shares outstanding.
This concludes my prepared remarks, and I'd like to turn the call back over to Rod for any remaining remarks.
Thank you Kurt.
And with each passing quarter, we've come closer to commercial sales of meaning meaningful volumes of Evs and.
The second quarter of 2021 was an important one in this regard given our launch of the club car current.
We expect the current to increase our revenues in future quarters, and we are even more eager to launch of three of 11 actions of the restaurant delivery market next year.
I hope many of you saw the the press release, we issued yesterday that we received the second purchase order within two months from club car of an additional $2.9 million.
We're continuing to build our ecosystem to ensure that our manufacturing and our sales footprint of <unk>.
Rapid lease scalable and that we can reach commercial fleet and enterprise customers with the help of our quarter corporate partners.
Club car Gallery and element fleet management.
I'd like to thank all of our shareholders for their support.
And I look forward to sharing additional accomplishments and developments as they unfold.
And I think with that I'd like to turn the call back over to the operator, so that we can begin the question and answer session.
Operator.
Ladies and gentlemen, if you wish to ask a question on today's call you would need to press the star key followed by the number one on your telephone. If your question has been answered and you wish to withdraw. Your question you may do so by pressing Star then two.
And we're using a speakerphone please pick up your handset before entering your request and speaking on the call one of them and pleased for the first question.
And our first question today will come from Barry Sine with Spartan Capital Securities. Please go ahead.
Hey, good morning, gentlemen, a couple of questions. If you don't mind. Please.
The first of all on the looking at the expenses you reported on the income statement Kurt.
Called out a little bit and and I'm going to hope to get a little bit more detail on both the R&D line of about $3 million and the G&A line of about $4 million. If you could give a little bit more visibility, what's going on with each of those and I know Curt you called out some of that was non cash stock based compensation and I know that.
Is broken out in your EBITDA reconciliation, but if you could give us a rough breakout of how much of that was in R&D and how much was the G&A to kind of help us understand whats driving those two numbers.
Oh sure Barry good to hear from you.
And.
On the or on the R&D side obviously.
As you all know we went public.
And based on our via reverse merger on May 28 of last year. So the six months ended June 32020.
<unk> was as the private company before we were able obviously to start development of the three of 11 acts of next generation delivery vehicle. So the majority of the art and the increase in R&D is very much I would say, 90% of that 80.90 per cent of that is tied to the development design and development of the three of 11 X next generation vehicle, which we've been.
Working on for the entirety of the balance of 2021 are the start of 'twenty first half of 2020 one here.
So that's going to be the lion's share of that and then on the.
Your question on the G&A side, obviously, yes, a lot of that of stock based compensation again.
It is almost comparing apples to oranges and when we talk about that because we were a private company for the majority of the first half of 2020.
Whereas the Republic governance, and the first half of 2021, so I would say the stock based comp is more of of its really a factor of the stock price as you well know.
As well as obviously the legal professional fees all like that the way that we incurred of the public company for the first six months of the year here. Obviously, we went through our first 10-K during the first.
During the first quarter of the year, which is obviously a lot much more involved and the than the standard audit for the first quarter of the previous year. So anyway, that's the major differences there.
And on those two numbers roughly indicative of what we might expect for the next two quarters of the year.
$3 million of R&D per quarter, and 4 million per G&A per quarter or will we see that trend higher.
I think thats pretty indicative between now and then.
For the first half of the second half.
Getting pretty close.
Okay, and then a couple of questions on just helping us understand revenue visibility for the rest of the year. So you've given US a couple of book clues and I want to make sure I'm interpreting these all correctly and number one we have $4.9 million.
In orders of the club of our current.
You mentioned backlog of $1.8 million.
And the end of Q2, but that was at June 30th so that the pursuit of RASM.
And as an inclusion of the second.
And what are you also mentioned that would be expected to ship over a six month period and I know there of supply chain constraints facing everybody globally not just you.
So when we see a press release and our MAU.
Mines, how long out should we think about that being reported and then on top of the of two press releases you talked about.
Perhaps additional.
What's the prospect that we might see additional on.
<unk> that might get shipped during the course of 2021.
Yes. Good good question Barry This rod yeah, the $4.9 million you've seen that was one purchase order that we got in June from club car of the initial Po for the for the New club car current the.
The $2.9 million and addition to that we got that does not reflect any incremental demand for Q4, nor does it reflect any incremental demand that we might see from element fleet management of gallery cards that was purely orders from club car with the visibility that they had for demand.
And they created themselves so nothing from element, even though we are working closely with element element has a fairly healthy forecasts, but.
But we we are just now shipping demo units through club car two element to get them to some of their key customers one of the nice things about element versus.
A different approach and club car.
The elements of the largest lead management company and the world firm, formerly part of GE.
On the managed 100000 vehicles with one of the largest e-commerce companies of the World I think we know who they are.
And when when they find an opportunity it's not four of five vehicles. It's hundreds of vehicles. So again. This $4.9 million wanted does not reflect any demand from club card and Q4, nor does it reflect any demand that we will see likely see from element or gallery cards. So.
One interesting point, where I think the investors listening as we did $1.6 million of all of last year that was what we did all of last year. These two orders of $4.9 million.
Far surpassed what we did all of last year and I think you hit the nail on the head our challenges and we're working through that right. Now is how do we ensure that we have ample supply to support all of this of which the the long pole and the tenant is of course lithium batteries. So we're working that right now with our supply chain and.
We're optimistic but it is a challenge I think every every EV manufacturer and the world right. Now is just trying to get their unfair share of lithium batteries.
Hey, Barry Let me, let me I want to correct.
Clarify one thing.
And your previous question about do we expect that to be steady state of the spend to be steady state on the G&A and R&D side on the G&A G&A side, Yes, R&D I would expect that the uptick a little bit over the course of the rest of the year. So just.
Wanted to clarify that and I think and Curt comment on this but I think it's important also to note Barry did that uptick and.
And R&D.
It's purely a function of the development of three of 11 Ax.
As we near completion of that and we go to mass production and R&D number will come down of course.
If I can kind of try and pin you down a little bit more on revenue visibility. So you mentioned that those orders are not in <unk>.
<unk> of <unk>, so it sounds like Youre, saying, you expect to get on that $4.9 million out during the course of three Q and then you also talked about additional orders from gallery and element and.
And I thought gallery is the club car dealer of themselves and an element would go through so any orders as a result of those two would be additional club orders correct.
Well actually all of the Marsh.
And for all the listeners bear you May know there is a little better than some.
Even though gallery is yes, a club car dealer.
But the primary business. They have is using the club car vehicle of 411 current as a platform for building their mobile hospitality vehicles. They create the demand that is their solution, but yes. They are of club car dealer. So when I highlight when I say it doesn't include any gallery volume, it's because galleries volume is generated by.
Gallery, it's not the typical volume that you would see through a traditional club car dealer element being brand, new but youre right all of that volume flows through.
The room club car because club.
Club car has the exclusive rights on it but both gallery of course being the dealer of club car and element and now has a contract with club car authorizing them to resell the club car current.
And then just the timing on that $4.9 million and that's all <unk>.
No.
I will tell you. This is purely a function of our ability to get the battery supply.
We've got demand for for it but it will be a function of how how successful we are and getting.
Getting additional lithium supply.
Okay, and then on the 311 and ask you gave US a couple of close but I don't want and start to put those together so.
And you talked about a.
A soft launch in 2021, so 2021 that goes until midnight on December 30, <unk>, which I assume youre not going to wait until then and then production in 2022 and again that goes through December 31, So I assume it's not going to be that late.
And you also talked about the current mentioned that about 90% of your of $3 million and capital spending was to develop that vehicle. So where we are we on that vehicle I mean do you still have just pay per sketches or.
Cadcam drawings or are there other actual mock ups does one exist somewhere and and R&D lab has one been driven where are we actually in that development process. Good.
Good question. So let me let me start with this.
<unk>.
Our expected launch of it and non mass production with our launch of it will be before Thanksgiving anything after Thanksgiving and it's hard to get anybody's attention as we all know so well be library likely before Thanksgiving.
We're about halfway through development.
We are working with one of the preeminent automotive engineering firms and the world.
We're negotiating on the contract while we work in parallel with them, but once we once we sign that debt will be and AK events, we will announce that.
We will.
And what would you.
You asked if there was another form of that question and answering the Denver.
And so.
Where are we just had.
Yes catches the we have CAD Cam is there a vehicle and they've been driven.
And so.
So we will have.
We will have.
Prototypes for customers to be able to see in late Q4 with with the focus of trying to deliver of.
Vehicles that then our some of our key customers that are part of our advisory Council can actually look at touch feel and and.
And test hopefully in Q1, and that's what we're looking at.
And I wish I could tell him talk about our automotive engineering partner because our plan is to take some of these prospective customers. Some of these large quick service restaurant chains and take them to our partner and lithium actually experienced the vehicle.
So yes.
And we're definitely.
Beyond the <unk>.
Sketches and drawings were far beyond and Barry to your question. We also have some static very static mock ups, they're working on debt, where we test ergonomics things like that fit and finish the all like that.
And so those are well shrouded the disappointment.
Okay.
That's great that's a lot more visibility and my last question.
<unk> ended the quarter with.
$87 million and cash $87.9 million and cash negative EBITDA was just under $6 million.
And we talked about G&A is going to be roughly static but.
The R&D may creep up a bit from Q2 levels, So what does that cash and get us.
Hopefully that cash and that's a pretty sizable amount of cash.
The fully funds remaining developed and of the three of <unk> getting to.
Unit shipments and getting to profitability based on unit volume shipments of both the current and the 311 ex did you comment on that.
Yes sure.
Kurt.
And that cash balance.
Current course, and speed that should get us to the cash flow positive by Q1 of 2020 <unk> hundred 23, so that should get us to where we can turn the corner on our own.
Wow, Okay, and that's a nice surprise I didn't know that thank you very much.
And our next question will come from Harold Weber with Ages capital. Please go ahead.
Hi, good morning, guys.
In regard to of the.
Club car orders.
And would you say this is somewhat indicative of the way the product is ramping I mean, they're talking about getting an order of it until the 3 million every other month.
So is it feasible to extrapolate anything from the it seems like the demand is increasing and getting more feedback on that asset might be developing drilling where the.
From that channel.
And.
The if I understood you correctly.
And we're planning to deliver that stuff this year.
Depending on.
I guess the battery supply is the biggest issue is that right is that reasonably right.
Yeah.
And I'll tell you the difference because we signed our contract or agreement with club car and March of 2019.
<unk> 19, and so it's been over two two and a half years roughly now the.
And the difference is the first vehicle the club car sold.
Many of the dealers to be candid were little skeptical because it was not of it was not a vehicle that the club Corp could influence the features and the design.
But this new vehicle list.
And I think it took some convincing of the dealer channel and.
And club core significantly influence and we spent almost $2 million and development of this next generation vehicle. It has their design and they owned exclusively or their license of exclusively and as a result of that we made many feature changes as the request of them and their channel and.
And not to mentioned they've got more familiar with it.
Originally it was a channel that had been and business since the $19.58, but had primarily sold commercial utility vehicles, and the and golf cars and so this was a bit of a change for them, but now two and a half years into it.
We're seeing significant demand and again.
I'd much rather be and the situation, where I'm, Jason supplied and trying to get demand and.
And not to mention some of the opportunities elements, bringing to us looking for demos right now.
And are quite quite significant.
And tell you right now, but yes.
Yes.
And I encourage reach out book club car, if you'd like but we're very optimistic that the volumes will continue to grow with them.
Right and another question and just comment on the fact that club card now has become owned by.
The different entity and that relationship is developing.
In regard to.
The more transparency between the is going slow and you had talked about.
Yes, that's a good question and in fact.
We had of quarterly business review of them about four or five weeks ago, and I've never seen the I've never seen leadership, so happy and the reason why is when they were under the Ingersoll Rand umbrella.
The.
And we're very restricted on some things that they could do on a great example of that is every time, we had a win.
They were not allowed to communicated I thought initially it was because they didn't want to telegraph any wins of their competitor. It had nothing to do with that the reason why they didn't want to communicate any wins before is because if they did and the CEO of Ingersoll Rand got a question he might not know how to answer it all of that has gone now theyre now under the umbrella.
<unk> equity they run autonomously theyre not part of a bigger company like Ingersoll Rand and the management stayed in place and are very excited about it. So it's all good theres nothing but goodness that came out of that transaction.
Okay terrific.
Right.
And our next question will come from Alex anger with Cisco. Please go ahead.
Oh, hi, good morning.
Good morning.
Well I have a question like you know I noticed the there's a lot of infiltrating occupancy of the Doctor John.
And you try to have added about <unk> <unk>, but anything to desktop.
Detail on clean northeast light is it needs at the May top of the I'm not sure that is locked up inside of <unk> going on on the stock and just wanted to be part of the different pump.
And of course.
I Couldnt.
I didn't get all of that question can you repeat it again or.
The operating here.
And then can you try to like the northeast talked a lot of insights and he's bleeding on quite a bit.
Is that any possibility that you can have any debt in fact rating.
And Thats true.
And.
And he says what the insider trading.
Ask about insider trading.
The question debt.
What's the quality of about insiders.
Yes, and that means so those were all like all of the companies start to begin the premises and.
Hi, Bob.
Selling those Tom.
Uh huh.
And I'm not sure I understand the question, specifically and we don't we don't know of any insider trading.
Oh I'm not sure of the question.
Are you asking about.
Are you asking about employees or the leadership, yes, they'll share employees and by sending the share yeah, those yellow zone.
The.
His stocks.
Yeah.
Yes, Im happy to speak to you maybe.
May be referring to me and I'm happy to address that.
You May know that we were a public company until may 28th as Curt said early of 2020.
And as part of the the terms of the.
The reverse merger, we completed and as we locked up all employees when I say locked up I mean, we restricted them from selling any shares for 12 months.
And.
And like many companies do and executives within those companies I myself and other members of the board. We filed what are called <unk>, one plans and I think many of you know where the <unk>. One plan is and we fall of those months ago and and that's a.
I think a healthy disciplined way to diversify someone's.
Investment portfolio.
And.
And I took advantage of that because for the first couple of years here.
And I took a little to no compensation zero and.
And as we approach the period of time, where.
Where we were going to be unlocked or released.
The tend to be five one and place back in the spring and and did did sell some shares as a function of that over a period of time.
If that's what you were asking I hope that I hope that helps you, but at the same time I do think it's important and I've never been more bullish on this company ever and.
And I've been doing this 39 years and I will tell you and I mentioned, it and the remarks earlier that even though we're very excited about the.
The growth, we're seeing on our light duty electric trucks and next generation club car current and it's growing quite nicely for us and we love the relationship we have.
The opportunity to be disruptive and restaurant delivery and farm and grocery delivery and will tell you is.
And there's one of the biggest opportunities I've seen and our career and the approach that we're taking as Youll see and the announcement later this fall like I said before Thanksgiving.
And I think it's a game changer and.
I don't say that with any embellishment I would say that would be.
Being very very candid, we've got a team here and many of us agree with.
Work and early stage industries before and I will tell you we are.
I think we're better positioned than anybody.
And because we choose to.
Only announce things when theyre substitutive of material that when you hear what we're doing and then begin to see it next year I think we're going to and a very different place and we are today.
I hope everyone understands I am as bullish and excited about disc opportunity of this company as I've ever been about any opportunity and.
And I've had some good ones.
And once again, if you'd like to ask a question. Please press Star then one.
Yes.
Yes.
And this will conclude our question and answer session I'd like to turn the conference back over to Rod Kelly for any closing remarks.
Well very good.
I want to thank all of you for for one investing in us or listening to us and participating on today's call. Thank you for your interest and Aero I was very sincere when I talked about where we are today, but more importantly about where we're going.
On a very much look forward to sharing our progress on our next quarterly conference when.
And when we report our third quarter results in November and.
Thank you very much again for your interest and narrow and I look forward to speaking you again.
Have a wonderful day. Thank you.
The conference has now concluded. Thank you for attending today's presentation. You may now disconnect your lines at this time.
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