Q3 2021 Universal Stainless & Alloy Products Inc Earnings Call
Yes.
Good day, everyone. Thank you for standing by and welcome to the Universal stainless steel third quarter 2021 conference call. At this time all participants are in a listen only mode.
After the Speakers' presentation, there will be a question and answer session.
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And now I would like to hand, the conference over to your Speaker today June fueling Gerry. Thank you. Please go ahead.
Thank you. Good morning. This is June Phil and.
Jerry of Comm partners and I also would like to welcome you to the Universal stainless conference call and webcast. We are here to discuss the company's third quarter 2021 results reported this morning with US from management are Denny Oates, Chairman, President and Chief Executive Officer, Chris Zimmer Executive Vice President.
The engine Chief commercial officer, and John <unk>, Vice President General Counsel and corporate Secretary.
Before I turn the call over to management, let me quickly review procedures.
After management has made formal remarks, we will take your questions. The conference operator will instruct you on procedures at that time.
Also please note that in this morning's call management will make forward looking statements under the private Securities Litigation Reform Act of 1995, I would like to remind you of the risks related to these statements which are more fully described in today's press release and in the company's filings with the securities and.
Change Commission with the formalities complete I would now like to turn the call over to Denny Oates Denny we are ready to begin.
Okay. Thanks, Jim.
Everyone. Thanks for joining us this morning.
Positive business momentum continued to build during the third quarter our.
Our backlog of.
$25 $1 million increased 27% from the second quarter reached.
Reaching the highest level since early 2019.
Strong order entry.
About 27% increase was on top of a 74% increase in the second quarter.
Gross bookings remained high at $58 million.
100, and September had the second highest order entry of the year.
Bookings are being driven by aerospace our largest market.
Demand has begun to ratchet up and more is expected in 2022 and 2023 with a planned step up of commercial airplane build rates traveled growth and expanding freight traffic.
And so our sales momentum moderated in the third quarter.
In total net sales of $37 2 million were off three 5% from the second quarter.
This was not the normal seasonality, we commonly see during summer months.
Like every industrial business I know, we wrestled with chronic supply chain issues, particularly trucking.
Coupled with labor shortages.
These factors negatively impacted our third quarter revenues by about two to $2 $5 million.
Our gross margin expanded to six 2% in the third quarter due to four factors.
Activity levels, and correspondingly lower fixed charges.
Reduced variable operating.
Per pound processed.
Surcharges, offset increasing raw material costs and.
And lastly, proactive pricing actions.
Our overall plan activity level in the third quarter as measured by pounds processed was up 6% from the second quarter.
And up 53% from the recent cyclical.
<unk> third quarter of 2020.
However, planned production remains almost 40% below pre pandemic levels.
We also receive forgiveness of our $10 million term note from the payback protection program.
And we recorded the gain and debt reduction this quarter, our balance sheet remains strong to support our strategic.
LOE initiatives and the ramp in our business.
Let's take a closer look at the third quarter results.
Net sales of $37 2 million in the third quarter compared to $38 5 million in the second quarter and $37 4 million in the third quarter of 2020.
We shipped $12 3 million pounds versus.
Issued 5 million pounds in the second quarter, and $12 1 million pounds in the 2023rd quarter.
Third quarter premium alloy sales totaled $5 9 million or 16% of sales virtually unchanged from the second quarter of 2021.
With the recovery in aerospace demand beginning to gain traction we expect.
Fourth to resume growth in our premium alloy starting in the first quarter of 2022.
Gross margin in the third quarter increased to $2 3 million or six 2% of sales from $2 2 million or five 6% of sales in the second quarter and a loss of $4 4 million or 11, 8% of sales.
In the third quarter of 2021.
Gross margin amounts included fixed cost absorption charges of $1 5 million $2 1 million and $4 3 million in each of the respective periods.
While activity levels have improved in recent quarters, they remain at historically low levels.
Since the fixed cost charges.
Our.
Our goal is to maximize operating leverage as we ramp up operations to meet growing demand, while mitigating the negative impact of upward spiral and raw material costs and general inflationary trends on labor and major operating supplies.
To be more specific depending upon grade third quarter surcharges rose, 20% to 30% largely.
Turning sharply higher commodity prices and increasing melt material cost.
We've announced four based price increases this year to stay ahead of double digit percentage increases in parts and consumable operating supplies like lubricants and refractories.
The increase announced in March is benefiting shipments now while the other three increases.
We also to impact results as we move into 2022.
Variable operating cost per pound processed around 15 to April 18% lower than 2000, Twenty's third quarter, reflecting higher throughput and process improvements.
Controllable overhead spending is being tightly controlled with third quarter spend down 9% sequentially.
Beginning and remains 40% below pre pandemic levels.
Looking more closely at the headline grabbing increases in commodity prices.
Coal prices increase another 8% sequentially and are up 31% from the third quarter last year.
Chrome manganese in tungsten were up more than 30% during the quarter.
<unk> in a year on a year over year basis, Molly manganese ferrotitanium more than doubled while chrome orders rose more than 90%.
Scrap prices also more than doubled from the third quarter last year, but appear to have stabilized at a high level with expectation of sideways movement over the near term.
The positive misalignment.
Between the timing of surcharges and increasing melt costs continued to narrow as expect as we expect it can amount to less than $200000 during the quarter.
Power outages and related capacity reductions, primarily in China are adding to the volatile outlook for commodities this quarter and into 2022.
Selling general and administrative expenses of $5 million.
Or 13, 5% of sales were essentially unchanged from the second quarter, and we expect little change for the remainder of the year <unk>.
SG&A expenses remained 26% below pre COVID-19 levels.
Our effective tax rate for the third quarter was a negative 17.
Percent due to the impact of our tax free gain on the PPP loan forgiveness.
We recorded net income for the third quarter of $7 9 million or <unk> 87 per diluted share, which included a $10 million gain on that PPP loan forgiveness.
Before the gain the net loss for the third quarter narrowed to $2 one.
1 million or <unk> 23 per diluted share from a net loss of $2 $5 million or <unk> 28 per diluted share in the second quarter.
And net loss of $7 million or <unk> 79 per diluted share in the third quarter last year.
Third quarter, EBITDA was $12 $1 million, including the $10 million gain.
Adjusted EBITDA was $3 8 million versus $4 1 million in the 2021 second quarter and $635000 in the third quarter of 2020.
Looking at our financial position manage working capital at September 30 was $124 $4 million versus.
Versus $116 million at June 30, and $133 million at the end of the third quarter of 2020.
More specifically inventory increased $14 8 million or 12% to $135 $6 million from the end of the second quarter.
Of the $14 $8 million sequential increase.
Raw materials accounted for $5 4 million with $3 $6 million of the increase due to higher commodity prices and $1 $8 million due to increased melt volume and advanced buying a certain difficult to get items.
Work in process and supply inventory increased $9 4 million as our growing backlog entered production.
Third quarter receivables decreased by $1 6 million or seven 5% from the second quarter and were down $6 7 million or 25% from the third quarter last year.
As Dsos continue to improve.
Accounts payable increased $4 8 million or 19% from the second quarter of 2009 to $29 nine.
Million due primarily to higher melt activity and $1 3 million in capital spending related payables.
Capital spending in the third quarter totaled $2 million, bringing the year to date capital spend of $6 5 million third quarter, depreciation and amortization totaled $4 8 million.
Most.
We will spend this year has been for two strategic projects. The addition of a state of the art vacuum arc re mail furnace to support growth in premium products and an 18 ton crucible for our vacuum induction melting facility to further reduce operating costs as we scale up.
Both capital projects are generally on time and within budget.
We continue to.
The capital expenditures to approximate $11 million in 2021.
Total debt at September 30 was $51 5 million down $1 4 million or two 7% from the second quarter.
Excluding the $10 million note forgiveness total debt in the third quarter was up $8 6 million.
Or 20% sequentially on higher capital spending and working capital.
Total gross availability under the revolver stood at $39 million on September 30, providing more than ample liquidity for the expected ramp in activity.
Now, let's take a look at end markets, beginning with aerospace our largest market.
Our aerospace sales.
<unk> increased four 4% to $22 3 million or 60% of sales in the third quarter of 2021.
Up from $21 3 million or 55% of sales in the second quarter of 2021.
In the third quarter of 2020.
Aerospace sales were $25 1 million or 67% of sales.
Year to date 2021, aerospace sales are $65 8 million or 58% of total sales.
We continue to expect recovery in commercial aerospace demand to gain traction as we move through the fourth quarter.
Our current backlog and bookings reinforce the expectation that demand recovery will accelerate as we move into 2022 and 2023.
Another positive sign supply chain inventories have been worked down and are running generally lean in most instances, which is also reflected in our order entry.
Lastly, we have begun to hear rumblings of pull ins for engine parts, which contributes to our confidence.
The recovery in demand supported by the latest forecast for commercial airplane build rates and travel.
Trends.
737, Max build rate is moving towards 31 per month and will move even higher pending Chinese recertification.
Although nagging short term quality issues are holding back 787 production, we expect to return to five per month during 2022, along with gradual triple seven production increases.
<unk> recently confirmed its ambitious build rate plan first announced last may which closed for an average production rate of the <unk> hundred 20, or 45 aircraft per month.
In the fourth quarter of 2021, increasing to 64 by the second quarter of 2023.
As many as 75, when you look out to 2025.
Currently projected.
<unk> revenue passenger miles in 2021 will improve by 18% over 2020 and <unk>, 51% in 2022.
Reaching 61% of pre crisis levels.
Global trade is expected to strengthen in 2022 and support growing air cargo volumes.
Really the big picture for a minute Boeing's mid September annual forecast projected a total addressable aerospace market over the next 10 years at nine trillion.
Versus $8 five trillion projected last year and $8 7 million in pre pandemic 2019.
Boeing also projects 10 year global demand for 19000 commercial airplanes and up there 20.
Looking at 'twenty year commercial forecast through 2040 to more than 43500, new airplanes and increase of about 500 planes over the 2020 forecast.
Significant growth is also expected for dedicated freighters, including new and converted models due to expanding e-commerce, and airfreight speed and reliability.
Business jet flight hours in 2021 are expected to be almost 50% higher than a year ago and a growth above pre pandemic levels current projections call for up to 74 100, new business jet deliveries over the next decade valued at $238 billion.
Financial recovery among the airlines that are essential to their willingness to order new planes.
<unk> that recover recovery continued for Delta, which reported last week that revenue recovery in the September quarter reached 66% of 2019 levels compared with 51% in the June quarter, and just 25% at the start of the year, mainly due to strong consumer demand and growing improvement in business and international travel.
And while the aerospace after market continues to improve and defense spending should continue at current levels in 2022.
Our service center in forging customers continue to expect a stronger metal pole and the supply chain.
To accelerate for building, new planes and aftermarket strength in the fourth quarter and well into next year.
Excuse me.
The heavy equipment market remained our second largest market in the third quarter with sales of $7 $6 million or 20% of total sales versus sales of $9 3 million or 24% of sales in the 2021 second quarter.
Year to date, 2021 sales totaled $25 million or 22%.
And we're 53% higher than the same period of 2020.
Okay.
Metal fabrication markets drive plate sales the continued pickup in industrial manufacturing as well as high automotive retooling, a new model development drove the 53% growth in our heavy equipment market sales year to date in 2021.
While lower sales in the third quarter demonstrated the typical lumpiness in plate shipments as supply chain inventories adjust.
We expect <unk> sales to get back on track as bookings pick up in the fourth quarter in sales pick up in the first quarter based on conversations with our customers.
The oil and gas end market was our third largest market in the third.
A sale with sales of $4 million or 11% of total sales an increase of two 6% from the second quarter.
And up 47% from the 2023rd quarter.
Oil prices are at a seven year high trading north of $80 per barrel and natural gas prices were up 50% in the third quarter alone pointing to further recovery.
Quarterly activity.
As noted in our recent release Baker Hughes reported 264 drilling rigs were added in the U S over the past year, while international rig counts were up by 85, just last week.
The bottomline for the oil and gas supply chain is that more production equals more parts equals more demand for metal.
While there has been some excess.
Reengineering the channel, we see our bookings picking up and continue to expect moderate growth in the fourth quarter and further recovery in 2022.
General industrial market sales of $2 2 million or 6% of sales were down 4% from the second quarter of 2021, and 25% lower than the third quarter a year ago.
Our.
Inventory industrial market includes sales to the semiconductor medical and general manufacturing markets quarterly sales. These markets have been at record highs and near lows over the last year.
Although consistent sales growth has been elusive, we expect reasonable volume opportunities in 2022 is labor and supply chain challenges recede.
Power Gen market declined to $800000 or 2% of sales compared with $1 4 million or 4% of sales in the second quarter, and $1 6 million or 4% of sales in the third quarter of 2020.
Maintenance demand as is accounted for most of our power Gen sales in recent years normal third quarter seasonality was exceptionally strong.
Our journey here, we expect maintenance activity to improve coupled with some benefit from increased gas turbine backlogs at major Oems.
In summary, then during the third quarter, we had positive mark a moment market momentum our backlog increased to $25 1 million the highest level since the first quarter of 2000.
<unk> team.
Gross bookings were healthy at $58 million.
Sales did moderate somewhat in the third quarter.
As we wrestled with the same supply chain challenges in labor shortages conferring virtually all industrial businesses.
Our third quarter gross margin increased to six 2% of sales due to higher activity.
Nine levels, and correspondingly lower fixed charges controlled spending and prudent pricing and surcharge management.
We received forgiveness on our $10 million PPP term loan and recorded the gain and debt reduction during the quarter.
Excluding the gain the net loss for the quarter narrowed to $2 1 million or 20.
<unk> <unk> per diluted share, while adjusted EBITDA was $3 8 million.
We continue to move forward with our growth initiatives, including the addition of the new var furnaces as well as an 18 ton crucible.
While we expect the current supply chain and labor challenges to persist through the rest of the year. We are determined to make further progress in the.
Throughput or and take full advantage of a recovering markets, especially aerospace as we move into 2022.
In closing I want to recognize and thank each of our employees. We've wrestled together with many unprecedented challenges over the past 15 months and I remain in all of how each of you is powering through to overcome each of those challenges.
With markets.
Fourth recovering and your continued commitment I remain extremely confident in universal's future.
That concludes my formal remarks.
Lovely, we're ready to take some questions.
As a reminder to ask a question you will need to press Star and then the number one on your telephone keypad.
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Again that will be star and then the number one on your telephone.
Your question.
Yeah.
Our first question comes from the line of Mike.
CGS.
Capital Your line is now open.
Good morning, Thanks for taking my questions first.
Alright.
Good good. Thank you first question just is on the inventory days.
I know this is partially a function of.
The revenue falling off so significantly over the past year, but really drifted up over the past few years I think there.
North of 300 days now can you.
Maybe I'll address that issue and where you see them falling out over the next few quarters.
If you look at the next few quarters, you will see those numbers improve and the reason for that will be youll see higher sales volume as the number one contributor to that the.
The other point I would make as you look at our uniquely look at our inventory levels.
Just ex that the growth in backlog, which has been in.
Our backlog is basically doubled here in the last six months nine months.
Is the fact, we carry about five or $6 million of what I'll call R&D inventory as.
As we work on approvals that our north Jackson facility.
Primarily for premium what we call premium melted.
Vacuum induction melted products.
The other issue that I would call out this morning, as I mentioned that some of my script is we have had.
A spike in <unk>.
Commodity prices.
Which has caused a fairly sizable increase in our inventory carrying costs as well.
From a P&L.
Standpoint that is a pass through to the supply chain via our surcharge mechanism.
But the cash out the door upfront as we purchase those raw materials and increase our melt schedules.
Is pretty significant.
Okay, and then just thinking about the backlog I think it's roughly 100.
It probably $9 million now.
And if you go back to.
On a quarterly basis back to 2007.
Historic we converted 75% of your backlog into revenue in the following quarters that that's obviously not happening in this environment.
Just over the last three years that number to conversion is 50.
20%.
Assuming that's not going to happen in the December quarter. So could you just give us.
Maybe a way to think about the December quarter, our revenue and gross margins I'm not sure you gave guidance, but maybe just some rough.
A rough parameters.
We don't give guidance, but I can.
50, or 66% of the $125 million is scheduled to ship next year.
And in 34% is scheduled to ship before the end of this year.
34% of the 125, yes.
Yes.
Okay.
And then so we don't we don't.
Tell you this but I figured I assume you can figure that one out.
I appreciate that and then just the gross margins on a go forward basis. It seems like there is a number of things that should drive them higher.
Number one.
The fact that year to date, there is $6 million that you directly charged.
Rather than capitalizing and the inventories thats going to be a nice boost to gross margins on a go forward basis right because it hasnt been capitalized in inventory.
Your costs are lower on the inventory right.
Correct.
Okay and then the second thing can you help.
<unk> quantified how much the three price increases that are going to start to flow through gross margins will help gross margins.
In terms of putting an exact dollar figure on it.
Thats a challenging thing to do what I would say is if you look at the March increase we're already benefiting from that.
If you look at the grades that we had price increases in and the timing of shipments of those products.
Those other three price increase will start to hit late this year and into next year.
But keep in mind in the back of your mind, what's what's transpiring here.
We are seeing inflation on parts and consumables.
And we're told we're our goal is to grow our gross profit margins to do that we need to stay ahead of the inflationary trends not only in those categories, but also in labor.
So that's essentially what we're doing so as things go down the road in the 2000 22022, rather you.
You should see higher activity levels that will.
Who is the fixed cost absorption issues, we've been wrestling with we've got process improvements.
Which will continue to work to improve our productivity and offset some of the inflationary trends, we've got price base price increases to also offset.
And then we've got surcharges as a pass through for the raw materials.
Improve it all together and we would expect to see continuous improvement.
By that I mean increases in our gross profit in each quarter going forward.
Okay and the reason there is no I'm not trying to be evasive on the selling price during the problem is it's a.
There are some variables in there its difficult to quantify we know we've got significant.
So you bought veterinary items already that we are buying so it really depends upon the the amount of inflation as we go through 2022 as to what the impact is going to be on the gross profit of the selling prices.
Net net basis.
Understood.
Just one more question I think on the last call you indicated.
Inflation desire to hire maybe 100 people over the next few quarters.
Where does that stand and if you are short of that number how much of a gating factor or is it on revenue growth.
It is a definite issue in terms of revenue growth that has been to date.
I would say.
Say that we have seen very modest improvements in terms of applications and hiring over the last two or three weeks.
So it's a relatively short period of time, but we have seen a noticeable improvement there we are supplementing our hourly workforce with outside contractors as best we can.
But there is no doubt there is a challenge there as far as the absolute.
<unk> number of people, we need that moves around a little bit based upon the backlog backlog has continued to grow so arguably we need a little bit more than 800 that 100 number.
As I sit here today.
Have you made any progress have you hired on a net basis since the last call.
Yes, yes, but it's relatively nominal.
It's not something I'm jumping up and down and saying that that problem is over all I'm, saying is directionally.
If you are an optimistic I am we have seen some improvement in applications and in hiring and our net head count is up.
It's nowhere near where it needs to be so that as that continues to be one of the major issues were wrestling with as is everybody.
Because I know in manufacturing these days.
Okay and my last question.
This came up on the last call, but any additional thoughts on.
Hiring a CFO.
We're continuing to work our internal plan, which is to evaluate our internal candidates and compare to outside options in this.
I think I said on our last call. So we're going to take this year to do that.
Okay. Thank you very much I appreciate it.
Yes.
Yeah.
Our next question comes from the line of Phil Gibbs with Keybanc Capital. Your line is now open.
Hey, Dan good morning.
Bill are you doing.
Good.
Can you elaborate a little bit on the comment that you made during your script on engine pull ins and what that.
What that means or suggests.
Maybe.
Maybe related.
Cycles, just in terms of what that signifies.
Well, we've been looking at demand and inventory levels right. So we're going through a multiple quarters of destocking.
Over the next next step in aerospace recycling as a start to replenish inventories.
And if you look at that a little checkup.
It's all that normally happens in recoveries.
I'm going to start to see some of the Oems start to pull in request through forgers and then into us. So we're beginning to hear some rumblings.
I think I used so I'm, not saying that any of our backlog is due to that but we're beginning to hear some talk about <unk>.
In the supply chain about can you accelerate some things normally pull ins like that in other words, we need to metal and the forgings faster than we told you before suggests that things are starting to heat up a little quicker than people anticipated.
Which from our standpoint continues to support our view that we'll see continued improvement in aerospace.
Okay.
Thank you and then on the.
The oil and gas side.
Sales picked up marginally, but yeah, obviously rig counts sequentially I'm talking about obviously rig counts are starting to move up and Theres a lot of thoughts for <unk>.
Our greater spending next year.
Maybe talk a little bit about what youre seeing in <unk> and in that supply chain and what share.
Customers are telling you.
Earlier this year I think I said on the call what we're hearing in the marketplace was kind of sideways movement with.
Appreciable improvement in the second half of 2020.
Okay.
But we haven't seen an appreciable improvement, we basically have seen that mindset pushed into 2022.
So as we've talked to our customers today.
They point to what's happening with the price of oil and natural gas and so forth.
Increase the increase in spending is anticipated next year more.
One <unk>.
They would also point to the fact that they are working their inventories down but they still have there's still a little heavy in certain grades and sizes.
So our expectation is we'll see we saw a little bit of gradual improvement there in the third quarter.
But that should accelerate as we go through 2022.
That's what they're telling us.
We're active.
<unk> you had the overhead charge carrying charge in the third quarter as well as that is that something thats going to be with you in the fourth quarter, two or is that anticipation is largely done on that.
I can't say for certain it's done I would say, it's 50 50 at this point in time.
It depends upon how things play out here over the next month or so.
We're having active discussions on that subject is going to be a function of what our activity levels ended up being.
Generally our accounting practices have a very specific level of activity at each one of our plants to the degree we exceed.
To be honest level based upon historical performance, then we would stop that practice.
Okay.
And then my last one two.
Two parter I do appreciate it you said the price to price the surcharge is pretty matched.
In the third quarter.
What's the outlook.
For Q4 and then.
How should we be thinking about net working capital in Q4.
As far as surcharges will depths, obviously, we know theyre going to be up in October and November.
Probably up a little bit in December but flat lines.
Okay.
For flattening out a little bit.
So as you think that through I would expect us to be basically in alignment, we're slightly positive in the third quarter.
We should be in balance in the fourth quarter.
That said I have to admit the commodity markets are a little bit crazy right now they always are but they are especially volatile at this point in time.
In terms of getting a read on what the direction is going to be with some of the things that are going on in China with power some of the capacity reductions.
The la strike Thats now over but I know they are struggling they get capacity back up it's caused a lot of disruptions in the supply chain.
As far as working capital goes as you look at the fourth quarter.
And I would expect working capital in general to be up but not as much as the increase in the third quarter.
We expect to have higher sales, so that should drive higher.
Receivables.
We're going to be melting at a comparable level, maybe slightly below on the A&D front, but more on the vacuum.
I wish and melting front in the fourth quarter.
And as you think about that Youre going to see what we have been melting here over the third quarter moving through the rest of the operations as we continue to ramp those operations up.
So I would think inventory is going to be up but not nowhere near what it was in the third.
Third quarter in.
Terms of increase.
And the payables will track what we do from a melting standpoint, so we think they would be.
And the $30 million range.
Okay.
Thanks Denny.
Youre welcome.
Again to ask a question you will need to press Star and then.
Acumen, Doug one on your telephone keypad.
Yeah.
Okay.
Yes.
Okay.
Okay, we have a follow up question Mike.
SGS capital your line is now open.
Thanks for taking my follow up question on the tool steel plate market I think you've said that historically the big driver is new auto models.
<unk>.
Does that will that be the case.
For Evs, just how does that business play out on a go forward basis.
Yes that would be positive for the plate market that we serve anything any kind of retooling the automakers do which requires new jigs and fixtures and so forth, there's a new EV plant going in.
Where is that in Tennessee.
Great.
So those kinds of things will benefit us.
Difficult for me to say what percent or what volume it will be but that would go into the same general category that we typically referenced in terms of new model retooling work that gets done.
Okay.
And are you one of the few tool.
Tools steel plate Manny.
Manufacturers in the United States is that right.
Correct.
So does that mean youre your margins for that business, a little bit higher than the rest of the business or not.
Our margins in that business are attractive.
And is it what percent of revenues from that business.
It has ranged over the years from low double digit steady, 11% up to high teens.
Okay and then last question in past cycles did you have the direct fifth fixed cost.
Under absorption charges I don't remember that happening in the past or is that wrong.
It happened for a couple of quarters in 2016.
But not to the magnitude we have today.
Okay, great. Thank you very much.
Welcome.
Okay. There are no further questions at this time I'll hand back the call over to Mr. Dennis Oates for closing remarks.
Thank you.
Once again I want to thank everybody for joining us this morning.
I look forward to updating you on our effort to take advantage of market opportunities.
And our growth initiatives on our next call.
And believe it or not January 2020 to be well stay safe and enjoy your holidays and have a good day.
This concludes today's conference call. Thank you for participating you may now disconnect.
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