Q2 2021 Savaria Corp Earnings Call
Good morning afternoon evening My name is Catherine and I will be your conference operator today.
Coal is stomach coded and at this time I'd like to welcome everyone to Safari corporations quota to 'twenty 'twenty One conference call.
All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. If you'd like to ask a question. During this time simply press Star then one on your telephone keypad.
If you would like to withdraw your question. Please press star two.
This call may contain forward looking statements, which are subject to the disclosure statement contained insofar as most recent press release issued on August 11th 'twenty 'twenty, one with respect to the quarter two 'twenty 'twenty one result.
Mr. Lascar, you May now begin your conference.
Thank you.
Okay.
We have a very very interesting.
Q2 EPS.
We've put up there.
In the press release that we gave that yesterday.
So we find that Oh acquisition and the GAAP, it's even more interesting than ever.
I think that's a perfect fit to seek to fix that.
Chip.
She may increase if we stick with that very yeah. Okay. That's a good time to say okay.
Okay.
Compliments on Italian salads is always very important when we make an acquisition.
And after that okay. Good.
You have been theory on that.
That all theories shooting, okay I think they are.
Oh, then they can do it at the manufacture a curved stairlift.
So what is that he's got his big well without this equals pent up manufacturing okay.
Curt Sallie.
That they will begin.
By the end of the year in Toronto to manufacture just outstanding products and the way that we manufactured at the peak. So we will learn from that and that's it. That's it goes shuttle leaves get be de lever in the Mexico about three days after the after the orders that are very impressive.
And I like it.
Very much so they they they bring that's imported okay. They bring that could get you to our company and they bring.
The cross selling of our Friday accept our hour I always subject to all the people, Okay and then in Europe. So.
That event.
Okay too to make some cross city, but dead and thank them, but they're a big improvement would be done by the people.
And again, that's a that's deandrea shook a day no worry about that.
I think that's changed shipyard work vision setting Saturday of projects in Europe and other countries.
So we speak about yesterday about the whether theres billions of T. That's we're comfortable with this number and after that the cable where we speak about.
The reaching our goal of 1 billion by 'twenty to 'twenty five.
And that we are very very happy what we see to reach said just number without key acquisition.
And just maybe a small a small one so my people look at my especially as.
We speak about that especially if they are on the phone okay.
So we will begin the question shortage I just want to see how can we see some of that.
This then shows.
Strong.
Order and we see that the commercial will come a piece is slowly okay. After.
When they make where it would be.
It was probably the peak would be resolved, but it's a bit. So we are very very enthusiastic about that so what are they getting the decal Kathleen. Thank you for your athletic shoes, and Michelle and Adam Mr. Sip SCA and Steve are on the call. Okay to answer to you guys. So again, thank you for that.
To.
We part of our.
Sorry, Okay, sorry, Okay, we need people to sandwich.
Sorry, that's another great chapter that we have this morning, and plus we have the mezzanine, but he says okay that will work for somebody else in their communications. So thank you Mr. <unk>.
For the for the hour scan as you said.
Schedule two to be.
And the key up you said Theres nobody saw that is they are very good communication. Thanks, again, so go where I got ready to clean the pay per hour for the call.
Okay. Thank you Martha so basically let me start to discuss the progress on the integration with them together.
The second quarter was the first quarter to include the full contribution of Invacare, where theyre very good start to our integration plan, we set up multiple committees that meet every two weeks to discuss fortunate these and make sure we keep on track.
These companies have been mostly meeting on themes, so far what would travel restriction do you think.
We haven't begun to meet in person would you give us a much better perspective example.
We had a chance to go to St. Louis to meet the team over Randy to discuss about the greater spending.
We have met in person would assume OND care in Toronto.
In terms of synergies we started to look at both cost of goods sold and indirect costs.
<unk> corporate costs being a public company.
Sure thing and integrating some of our products.
While we are making some headway on dulles saving.
Aside from certain administration saving most of these are not reflected in our results of Q2 as we are still in the early days.
So our major project underway is the capital investment after a factory in Toronto.
From a days of production of their free curve in Australia for reengineer the layout of their new production line has been designed.
Specialty equipment has been ordered from Europe.
Welding robots vending machine and we have begun training, our operator engineering team.
We continue to expect to start production by the end of Q4.
The project will bring a high degree of automation or factory in Toronto, and we cut the time as Marshall said from three to four weeks two to three days, providing us a significant competitive advantage. So thank you to the team in Australia and.
It shouldn't need basis, I will now pass it on to Nick for some cross selling.
Thank you Sebastian.
With respect to cross selling we've begun an in depth review of our respective product lines, both within acceptability and patient annually.
Our sales leaders are working together to currently laying the groundwork for collaborative commercial strategies across all our brands.
We are managing and organizing our dealer channels in the U S Canada.
So accommodate the significant interest we received for North American made curbs stair lift.
In Europe, we have introduced our broader accessibility lineup to Andy Kerr sales team, including our view, let's glass elevator.
And indeed your dealers in Europe are also begun placing the first quarter's forgive interest including platform lift.
Within the patient handling we're exploring how best to optimize our sales efforts to better serve our customers.
This will involve the introduction of span bedframe pressured care products with an <unk> sales channel.
<unk> on a joint slimline, and leveraging hand care service and installation infrastructures.
We're also looking to jointly attend industry trade shows further bringing our sales teams together.
Well cross selling takes the most time to set up and develop in the long term. We believe it has the most upside potential.
However, you should not expect meaningful results from these activities in the short term as our people need time to learn the products and how best to sell them.
Well, we're in the midst of our integration was handicapped sure. We're still looking to do some tuck in acquisitions and as we mentioned in the past. These might include a dealer and a strategic region for a small manufacturer of a complimentary product.
We're well positioned to take advantage of these opportunities.
Right.
And with that I'll pass it back to Sebastian for some brief comments.
Well. Thank you Nick I, just wanted to bring to your attention a few supply chain challenges, we have experienced in our business recently.
Many other companies, we are facing headwinds with regards to supply chain delays in receiving our orders.
An increase in our cost of container that is difficult to draw direct labor, we'll do our best to continue to be proactive and despite these challenges we were able to deliver a strong results in the quarter.
We have recently implemented some price increase to our customer and most of our brands to help mitigate inflation.
We are all part to see some small margin equivalent in Q4.
I'll now turn it on to Steve for a financial review.
Thanks, Bob and good morning, everyone and thanks for being on the call. This morning, I'm going to begin with some remarks regarding our Q2.2021 consolidated financial metrics for.
For the quarter for the corporation generated revenue of 179 million more than double the $85 million reported in the second quarter last year, mainly due to the acquisition of handy here.
Profit and gross margin stood at $65 million and 36, 5%, respectively compared to $29 million is 34, 6% for the corresponding period last year.
The increase in gross profit over the prior year was attributable to a favorable product mix with the acquisition of Andy Kerr.
Adjusted EBITDA and adjusted EBITDA margin is $27.4 million.
And 15, 3%, respectively compared to $14.5 million or 17, 1% in Q2.2020.
A significant increase in adjusted EBITDA was mainly attributable to the acquisition of Andy here and ongoing corporate operation wise and cost containment efforts, partially offset by a reduction in the Covid 19 employment retention with government of Canada the substance.
Turning now to segmented results revenue from our accessibility segment was $130.8 million in Q2.2021 more than double when compared to $60.2 million generated Q2 'twenty.
The increase in revenue was mainly attributable to the acquisition of <unk>, which contributed an increase of 109, 6%.
It also organic growth of 12, 4% driven by the economic recovery from the global pandemic.
This growth was partially offset by a negative foreign currency impact of $4 eight for the quarter.
Adjusted EBITDA and adjusted EBITDA margin, both before head office costs stood at $23.4 million and 17, 9%, respectively as compared to $12.3 million and 24% for Q2.2020.
The significant increase in adjusted EBITDA is due to the acquisition of patient care, while the decrease in adjusted EBITDA margin is due to the reduction with Covid 19 employment retention in government of Canada subsidies, partially offset by cost containment efforts.
Revenue from our patient handling segment was $36.1 million for the quarter, an increase of $14.8 million or <unk> 69, 7% when compared to Q2.2020.
This increase was primarily driven by the acquisition of <unk>, which contributed 77, 3% growth, partially offset by the negative foreign currency impact of seven 7% for the quarter.
Adjusted EBITDA and adjusted EBITDA margin, both before head office costs stood at $4.7 million or 12, 9%, respectively compared to $2.8 million and 13% for Q2.2020.
Similarly to the accessibility segment the significant increase in adjusted EBITDA is due to the acquisition of panic here, while the decrease in adjusted EBITDA margin.
Due to the reduction in Covid 19, employment retention government of Canada subsidies, partially offset by cost containment efforts.
Revenue from the adapted vehicle segment was $11.7 million, an increase of $8.6 million or 277% when compared to the same period in 2020.
Adjusted EBITDA and adjusted EBITDA margin, both before head office costs.
One 3 million and 11, 2%, respectively compared to a negligible amounts in Q2.2020.
The increases in revenue and adjusted EBITDA and adjusted EBITDA margin when comparing Q2.2021 to Q2.2020 or again, mainly due to the acquisition of Medicare the economic recovery from the global pandemic and partially offset by a reduction in Covid 19 appointments essentially government of Canada subsidies.
In Q2, 2021, net finance costs stood at $5.4 million up $3.9 million from the $1.5 million for the same period last year.
This was mainly due to higher interest expenses as a result of additional long term credit facilities related to the acquisition of Eddie here.
Net earnings reached $6.6 million or 10 cents per diluted share compared to $6.1 million or <unk> 12 cents per diluted share for the corresponding period last year.
When we exclude onetime costs adjusted earnings were $9.5 million or 15.
Per share up over 50% versus $6.3 million or 12 cents per share for the corresponding period last year.
That reinsurance and capital resources and liquidity.
It's driven by the solid profitability severity of generated cash flow from operations of $14.4 million in the quarter. We used this cash to primarily to reduce debt invest in capital projects and pay dividends.
As of June 32021, the Corporation had a net interest bearing debt position of.
279 million and was in compliance with all of its covenants.
On a pro forma last 12 months adjusted EBITDA basis, the corporation's debt to adjusted EBITDA ratio was approximately three five times.
In addition scenario has liquidity in excess of $125 million to fund the future projects and investments across the company.
Now taking a look forward.
The uncertainty around the future impacts of the ongoing global pandemic makes it difficult to predict future performance.
However, considering our financial performance year to date with an adjusted EBITDA of $44.7 million, coupled with current backlog levels and our confidence in the strategic integration plan with Andy care, we remain optimistic that we will achieve our previously stated goal of generating an adjusted EBITDA in excess of 100 million for fiscal <unk>.
'twenty one.
Please refer to our MD&A for the underlying assumptions used to prepare this guidance.
With a strong product portfolio, reaching over 40 countries, our increased distribution network combined with growing demand for mobility products, we are very well positioned for future growth.
And although I know, what I will turn the call back over to Marcella.
Thank you Steve.
You are the caller in Tibet CLK to make your comments okay.
You know the guy that people own obeisance 20 years okay.
English is that improving at all okay excuse me for decades, and the other thing in the country right now okay.
Our ratio of debt.
<unk>, Hi, Elizabeth, but what we see okay coming at the next two years.
Having that service at all Okay to add this ratio, okay, right now or over a tree, but going back okay smaller okay. In a couple of years so.
That's why I said I think told my guidance today, but you can read that in our MD&A, but what is very important in that case. Your question that you have to add to our guy Okay. My guy, okay or to myself. So.
So how quickly can you pass.
Uh huh.
There was some question from our people.
When that is.
If you'd like to ask a question. Please signal by pressing star one on your telephone keypad.
You're using a speaker phone. Please make sure your mute function is turned off to allow the signal free chocolate ma'am.
Again that is still one question for.
Just for a moment.
Thanks for taking my question.
Sure.
We will now take the first question from Derek Lessard TD Securities. Please go ahead.
We've also promoted D level or Felicia.
A lot going on but my first question is maybe on the organic revenue growth.
Probably the best you've seen in two years and I know you did point to the guidance.
Recovery, but just wondering if there was anything else driving that number that you'd like to highlight.
Steve.
Okay.
With respect to organic our organic revenue growth and again, thank you for highlighting.
It's been.
A couple of years here.
It's really on the back of the residential sector that continues to be very very strong.
So in terms of what we would highlight is just the commercial hasn't come back yet.
Yes, I think that a lot of the landlords in various of the building owners, we're waiting to see sustained foot traffic before they make certain investments.
So right now, it's really being driven by the residential which is carrying us through here.
I guess, probably the best color I can give you as it relates to what's driving the organic growth and accessibility.
Okay and.
Maybe just switch gears here.
On the on your view.
With respect to the evolution of margins this year, particularly as you mentioned you're dealing with numerous.
Options to maybe the supply chain.
I'm, particularly curious about how it relates to some of the the handicap synergies.
And maybe on on your lead times and ability to meet your current customer demand.
Okay, and then maybe you Sebastian will comment after me, okay, but to me I see a very.
Organic growth in the future, Okay, and sudden death was not very good in the last couple.
A couple of years up here about our girl with IP and ice.
Share it with my people I won't be that that will have to be better and.
We were better in Q2, and we will continue to be a lot better lucky by this mix of projects right now available looking to.
And again.
In the past Okay. They were sitting just.
Great Stanley and Stanley Okay.
Next is the deposit but right now they have our house all of our products is Texas work for our people in the in Europe. Okay.
In other countries, so it's quite exciting okay and.
He said he had mentioned that it's not overnight that we can make a dis.
Synergy, but its one time lucky because the dealer of you referred to Dubai.
More project co pay from the same place like it because they know what kind of service. They can have okay right now within <unk> and Thats what would be just a very good couple of months update to do and you can't argue with that where it came oaky.
Two two carried a service and installation and everything that I think that will be driving this okay. What we'll see in the coming year. So I am quite excited to do to be a mix of products that will get offered to to everybody. So I think the growth it would be that I am very.
We are optimistic looking what are what do we have to see and more importantly that they came to be getting okay. This is a good acquisition. So good people a few from the floor.
I've got I've been Turkey, that's another good complement look into that project.
So that that we'll see some some good increase in that.
And that's the best way to accept more to add.
Yeah, I think that's a very good question and it takes some time and we have to be careful when certain because sometimes we have competitors are listening on the call, but if you go back to what is public we see that in the first two years will make 12 million of synergies and towards more skewed by a few basket the curve Australia.
Which we are doing in Toronto, Theres more opportunity on purchasing maybe not the best year because of inflation, but do you think he purchasing when we're looking at it and cross selling and you said it started and then with the Veolia for Nova.
That's sort of Australia will happen next year with some of the surrounding yet haven't dealt with them to care in Toronto and I think early time, yes, it's a bit longer than it was before not because necessarily a supply chain, but our backlog is quite high right now in the residential sector. So maybe we are one or two weeks more than that where in the past.
Okay, Thanks for that and.
But maybe just one housekeeping for Steve.
Can you just kind of give us the cadence and maybe a level of Capex, we should expect particularly given.
The investment in the Toronto, but.
Okay.
Significant part of the Toronto floods and this one is actually already been made.
So that that project I would say, we're probably have spent all of that already our level of capex on a go forward basis, it's going to be.
In line with our Q to.
Q2 run rate and year to date, where we're sitting.
Okay. Thank you.
We will now take the next question from Michael demo Scotia Bank. Please go ahead.
Hey, good morning, everybody.
The first question Hi, the first question again on legacy accessibility I mean, you've indicated again on this call as well you know in the last couple of quarters its been you.
You know very strong residential and commercial has lagged or are you getting market signals that commercial is.
You know on the cusp of a rebound I guess I guess the way I'm thinking about it you know if we're not seeing that now with the reopening and when should we expect that to start to play out.
So, Minnesota and there are a couple of min Xu with my my answer to that.
You know we've got too many commercial site. It was it was not an operation that catering dependably okay.
Not in operation, even right now so it would take maybe a little time, okay, but all the improvement there.
And then on commercial or P. A part of that has to be accessible to people, who just people lucky.
That need that they are more of them. So.
I would ask Ebony Saturday bathroom complement that it's a bit my answer.
Yeah, Yeah sure sure myself.
It is it is difficult Michael So we don't have a crystal ball to tell them exactly what quarter is going to pick up.
I guess in our minds, it's just a question of.
It's more win as opposed to if.
A lot of these commercial investments that we're seeing upgrades to various buildings.
Either they're waiting right I'm not sure if you've been downtown recently, but its still you know.
I wouldn't say it goes down, but but it's very much.
Yeah. The foot traffic is much much lower than what we've seen previously even though the economies are opening up it is taking some time for restaurants to have the confidence I mean, they're just trying to hire staff and bring people back in.
Schools as well as pricing, we're seeing schools open up again in certain areas schools are going back virtual because of the smaller outbreak. They are happening. So I think theres just a lot of uncertainty on the commercial space before they're making those investments did.
Did they do want to see I.
I guess, a more sustained recovery.
So with that being said I think.
So our previous comments the residential is really carrying us here in the organic growth, which is very positive and we're seeing very good momentum there.
And then commercial you know whether it's this quarter next quarter I mean, it will come back and that will help sustain the momentum in organic growth. So.
We're not overly nervous about it we haven't as Beth mentioned.
Very good backlog as it relates to residential orders.
So we're quite confident where we are now and when commercial does come back.
Alright, that's very helpful. Thank you and maybe just on the residential.
Quarter over quarter.
Is the strength of the backlog strengthen.
But this one just I guess, if youre tracking residential permits just trying to get a sense for you know if you're still seeing positive momentum in residential here.
Well, maybe I said that he had covid complement that could be okay on that.
But I can see me I see that number okay and the number is quite important okay and.
We see our residential native matrices like.
Our order is like critical.
That's C. At the same time, it's why we're very optimistic when we speak to through our dealers.
And even on the Jamaican installation, okay. We're a very strong number appeared from that where we have the reconciliation but for sure. Okay. D. Data is very important in our operation and they are very optimistic of what the court orders a pizza with us. So I think it's just nice nice sales.
Got me, so that's where you want to complement my answer.
I think we are very lucky we have a good backdrop in Europe also does that give us a bit more certainty for them.
The end of the year to make sure. We can have a good growth again, so I think for sure. We have done a lot of our marketing activities and a review lift.
I thought it would end up with a size of your lyft, sometimes we end up with other products like it cleared for infinity, but differently.
Benjamin quite good on the residential sector and I think the pending as that people don't travel they want to stay on and do a lot of project. So differently we were lucky.
Okay, Great and maybe just one more and thanks for the color by the way, but I wanted to ask a question on the new line and ramped in for Sterling.
Could you talk to the additional capacity that's expected to come online you know I guess from what I've understood Handy care have been shipping stair lifts to North America through freight.
So therefore, I guess should we think about the sales coming on line outer Brampton as replacing.
The old sales or should they be incremental I'm just trying to gauge whether this is a revenue story or a margin story at first.
So electronic and go Okay. I mean, I think it's a combination of boat differently, we were a bit subside. So does this hiding the freight so we are doing it to save some crazy, but the biggest thing is really the opportunity to manufacture curves to lengthen or shorten time. So we're going to see a lot of cross selling and at the beginning of the project might be I'm, asking well why are we buying one thing.
Sebastian you you're going to sleep they are not going to work. So you guys don't worry about it we're doing it for the future and definitely we are planning to do much more than that what is that things are going to correct. An answer we're going to be ready for it to have a good year next year on our current study.
And just to add on that.
Yeah.
Yes, I would rather like to complement on that that Covid that you know that over years over a year is a project that is very good on the margin okay over.
Over 20% Okay.
Curt Sallie.
Saturday Cookie that would be a major product for us in the future, Okay, and just out of pocket of manufacturing, our south Indian Liberty and three days, Okay, all across North America.
I don't do an okay to be too much optimistic okay.
But I am very optimistic about to manufacture something okay and deliver that in that in less than three days. So.
Thank you for your questions next one please.
We'll now take the next question from Nick Agostino.
Securities. Please go ahead.
Yeah.
Oh sure sure and good morning, and congrats on the results are very impressive certainly applaud the organic growth rate.
My questions first is on the ocean tax liens and ceiling lift you guys talked about I guess realizing cost synergies.
As we all know I think Hendi care.
Has done a good job when it comes to ceiling lift sales in general I'm, just wondering from a sales synergy perspective is there anything that you can.
I have learned that you can.
Use when it comes to selling the ceiling lift into the North American market.
Our products that is that these guys were already doing.
From a marketing or just sales in general.
Yeah, Nick and subsequent shaft EMEA, okay, but just to mention that.
Pick about access and access to the Texas can be day, okay, but what private coffee from that from a span okay and.
Okay on the basically okay. That's the present directly at 20% up ourselves. Okay. So we have not to forget that.
And then I think looking at it.
The cross selling of the two company on that that would be just like in the future, Okay with where it was.
Before time located knowing exactly.
Well it sounds like they were to come in by themselves when it would be great, but I am sure.
Sure that you've got right is more appropriate to answer to you Nick.
So any color.
Thank you Mike.
So in terms of what we've learned I believe that was your question Nick.
Maybe we need to learn from.
Yes from Andy Kerr for own operations in terms of selling more to bring this product in North America.
First I would say that that the ceiling lift and sling part of the business.
It was actually very strong in the second quarter and it has been for most of the year. So there's been a very good rebound in sales of those products in those categories.
So again any care contributed much of that in the quarter.
What we're seeing and what we're working on together is trying to kind of put our sales forces together and realize where we might be able to open up more pockets of growth for us and whether it would be going into certain of.
Spanish channels, which are complementary hendi curious channels.
Whether it would be looking at into the product products that we haven't seen where we might be able to use kind of the best of both right. So if there are certain R&D projects that we're working on independently maybe we joined forces there and see if we can't be a bit more efficient in how we go about our R&D.
Spending and then development so.
There's a lot to do on both the synergy side, whether it be on the tracks that that is something that we're looking at kind of how the tracks are installed.
Can get whether it be utilizing.
And I'm curious I think I mentioned that in the call there are service installation infrastructure.
So kind of promote I guess not only maintenance programs on some of our existing products, we weren't necessarily able to servicing but also looking at how we might be able to leverage them. We're looking at our own contracts, where currently we don't necessarily have our own infrastructure and installation capacity.
And we're using third parties. So maybe those are opportunities for us to now use you Sandy curious Andrew.
And if you were supposed to do that work. So there's a lot that we're working on is it still early days. The cross selling is maybe the biggest potential for us both on patient handling and accessibility. So it just takes the most time for it to really kind of develop and kind of Hercules there. So.
Please follow up with us in the subsequent quarters and how those are developing.
Okay I appreciate that color.
And then my second question is just looking at the an answer as you wish but we're halfway through Q3, we certainly hear the optimism when it comes to the EBITDA for the full year.
You got a sense as to where residential versus commercial ships can you maybe talk to some of the other products the platforms and just straight stair sales.
Are they are you seen an uptick as we're moving through through the year and into Q3.
And even on the vehicle side, you guys had a nice I know, it's still small, but it's a nice snapback in terms of that demand is does it look like it's going to be sustainable in the second half of the year and I know in the past you are restructuring your own division.
Sorry adapted vehicles that is to get north of 10% you're there now with the handy care how much more margin can you you think you can push it higher on the vehicle side as you do your own restructuring.
Okay, Steve what are their answer after a just an equipment that they will do okay.
Just said that the I think we will go with that okay to a ratio of 30%.
And for sure maybe we can have some synergy both together.
And I am don't forget that the people okay.
Chad Okay are just that they need some there's some transportation.
I am very optimistic that we can have some growth in datacom and meet our objectives, okay for a combined 13% in the future.
Steve do you have something to add to me.
Yeah, So maybe I'll I'll take this maybe just to start on the beginning of next question. There you had mentioned the other products.
So yes, I mean as you can imagine straight stair lifts along with curve stair lifts have been performing well going into the residential our residential client when you talked about platform lift so many platform lifts, whether it be the vertical platforms or the unclaimed platform lifts lots.
Lots of that is sold into the commercial setting. So I think we addressed that earlier about commercial is a bit slower. So that you can imagine sales of those products kind of coincide with how our commercial sales are growing and then finally, maybe on the vehicles.
We did have a good a good uptick here in this quarter. It was nice to see the organic growth come back within that segment for us any carrier as well as contributors. So when you look at the margins. There I think it was a combination of their business, having some good margins as well as those improvements that you'd mentioned that we're making here.
Our facility here have been actually I guess over the past call it.
12 months or so to.
To kind of realign ourselves for lower production volume. So it's a combination of all of that where the margins go with I mean, it's difficult for me to really kind of guide you there, but I think where we are today is a pretty good point, we'll see over the next quarter or two we can make some incremental improvements on top of that.
Thank you Nick.
Thank you guys.
The next.
Question from Zachary <unk> at National Bank Financial Please go ahead.
Good morning Zach.
Taking my questions.
Most of them have already been answered by the previous questions. So just one for me, but I'd be interested to hear about your plans for your marketing program can you give us the rundown.
Oh very good question Okay.
And I would try to to answer that the key.
Couch.
That's I would add on something that is already out and I'm, sorry, but we have very funny that you knew that we'd make an acquisition and we feel in good situation that they too.
Look inaccuracy market endpoint of key marketing strategy, Okay, two to seven hour to go to on cross selling.
Medical but didn't make a huge acquisition, but that said that the people who don't have money, but now have 125 million to do.
Good day strategic plan, Okay on marketing in Europe.
Okay and even in the in the west of the space. Okay. When we were with manufacture into onto the Curt Sallie.
So.
Hi.
But again the key that we have one was greater than 25 million, okay to use it to push this association okay. Great partnership that we all with the we have with the it and you can okay.
So what is the amount that.
You will have an answer can be okay next like water and we have already instead of does your plan, Okay. Where's that but you will see the color of that in the in our next quarter, Okay and our next called conference call. That's what would have been at three months.
That's my read of it I'll turn it over.
Got it. Thank you. Thank you.
We'll now take the next question from Louis Chita.
Got it.
Alright.
Securities. Please go ahead.
Thank you good morning.
Oh sure.
So I'm, calling on behalf of who they probably just one question for me can't provide more details on your initiatives in Europe.
Have you been successful at cross selling our new cancer product are there and how would you characterize the market level of interest are you live currently in Europe. Thank you.
Okay. Thank you and then maybe it's the best CLO because that will then speak to our intermodal.
What degree of Bob's question, Okay, but you'd always just a start it will start to Kate since our since the acquisition on March four so.
So it takes time zippy, but why is it very.
Importantly at the beginning okay.
Our.
Team, Okay from and scale are understood by our products and they are very interested like did you see growth opportunity in that.
Nothing crazy, but when you have okay, some products to an organization.
Magic, Okay synergy is that so we feel again very important to see that our team at the NCI are very very enthusiastic to work with us at our prior to CAD in Europe.
So that's not for the fact that complements again, yeah, So basically where we started to ever have some small success April color. This week in Europe.
And the care of the ever introduced and get them in person client that phone to these areas and we already have some small success. So some people have.
Interest will be more of a one stop shop. So do you think that's a start or do you live in Europe, and I think that Havent done it.
It took some time to talk about the where we are studying at the beginning of a trend in Germany and ends with so I think that that's just started and different too we are making some training with the <unk> team and its kindergarten with the theme every week, that's something which is on the agenda people know what's important so differently.
That's going on and the stair lift I would say North America, yes. Some of our dealer has may be reached when they care about a lot of them are kind of waiting that chart will start.
So that's really I think next year, you would see more numbers on questioning Australia and North America. Once we manufacture here, but I think that that will start after of course. So we are aligning our R&D or maybe for David for the future. What one can do that in the future neuropathy as some products that we might bring over there. So do you think the one stop shop isn't out there.
Right.
Thank you.
Thank you that's helpful I'll turn it over.
I see.
It depends on no further questions at this time, Mr. Ferris I'd like to turn the conference back to you for any additional or closing remarks.
Okay. So and I think you guys should be dead. Okay for this call I take again, let's see our story our growth story, Okay. You have to you.
You take care of the communication of that thank you very much. Thank you again for our amazing with yourself and thank you my internal guy attitude, but expect that this call and.
Everybody's very enthusiast so.
And I will see you in three months bye.
That concludes today's call. Thank you for your participation you may now disconnect.