Q3 2021 Teledyne Technologies Inc Earnings Call
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[music] Your conference will begin momentarily please continue to hold.
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Ladies and gentlemen, thank you for standing by and welcome to the Teledyne third quarter earnings call. At this time all participants are in a listen only mode. Later, we will conduct a question answer session and instructions will be given at that time.
If you should require assistance during the call you can press Star then zero and as a reminder, this call is being recorded I would now like to turn the conference over to our host Mr. Jason <unk>. Please go ahead Sir.
Thanks, Brad and good morning, everyone. This is Jason <unk>.
Vice chairman at Teledyne and I'd like to.
Welcome everyone to our third quarter earnings release Conference calls and of course, we released our earnings earlier this margin.
We're the market open joining me today are teledyne's, chairman, President and CEO, Robert Mehrabian, Senior Vice President and CFO, Sue main and senior Vice President General Counsel, Chief compliance Officer, and Secretary Melanie <unk>.
After remarks by Robert and Sue we will ask for your questions.
However, before we get started attorneys have reminded me to tell you that all forward looking statements made this morning are subject to various assumptions risks and caveats as noted in the earnings release, and our periodic SEC filings and of course actual results may differ materially.
In order to avoid potential selective disclosures. This call is simultaneously being webcast and a replay both via webcast and Ireland will be available for approximately one month.
Here is Robert.
Thank you Jason Good morning, and thank you for joining our earnings call.
I'm very pleased with both our operational execution and our financial performance in the third quarter here.
We achieved record revenue.
75, 2% greater than last year.
Driven by organic growth of 11, 9% and the remaining 60 to 62, 2% sales increase contributed by Teledyne fear.
Revenue increased organically in every major business group.
What was especially strong in our commercial imaging and electronic test and measurement instrumentation businesses, where organic growth for each was greater than 20% in the quarters.
Okay.
Furthermore.
Orders exceeded sales for the fourth consecutive quarter. We then third quarter book to Bill of 1.1.
GAAP earnings per share of $2.81 increased 13, 3% compared to last year.
And was <unk> <unk> less than our record gap.
Third quarter earnings achieved in 2019.
However, excluding acquisition related charges earnings were $4 34 per share in the third quarter, an increase of 61, 9%.
On a comparable basis from 2020.
Cash flow was.
Third quarter record, allowing repayment of $300 million of debt.
While our leverage ratio declined to three three.
From three seven at the end of the second quarter.
Teledyne <unk> performed strongly in its first full course tuition.
The integration efforts have been Swift and we are increasingly excited about the long term future with teledyne.
We continue to accelerate the pace of planned synergies and currently.
We expect to achieve our annualized cost savings target of $80 million before the middle of 2022.
As opposed to the end of 2022 as we described in our July earnings call and compared with 2024 as noted when we announced the transaction in January of 2021.
Regarding our execution in the quarter.
<unk> is not immune to supply chain issues inflation and other operational challenges Hollywood.
To date, we have been successfully navigating and managing these issues and today, we're pleased to increase our full year sales margin and earnings outlook compared with the outlook we presented in July.
On a full year basis.
We now think a reasonable outlook for organic sales growth in 2021 is approximately 7% to seven 5%.
Led by forecasted growth of almost 13% in digital imaging, which excludes teledyne clear.
With contribution of $2 4 billion from digital imaging, including clear.
I will not further comment on the performance of the four business segments.
In our digital imaging segment.
Third quarter sales increased 210 17, 3%.
Largely due to the player acquisition.
Organic growth.
Our combined commercial and government imaging businesses was also very strong at 17, 9%.
Sales of industrial and scientific vision systems were not occurred and healthcare sales to return to pre pandemic levels.
GAAP segment operating margin was 12, 5%, but adjusted for transaction costs and purchase accounting segment margin was 23, 9%.
In our instrumentation segment overall quarter sales increased 9% versus last year.
Sales of.
<unk> electronic test and measurement systems.
Good Arcelor scopes and protocol analyzers were exceptionally strong and X earned increased 28% year over year to a record levels.
Sales of the environmental instruments increased seven 6% from last year with sales related to human health and safety market, such as drug discovery and gas and flame detection being strongest in the quarter.
Sales of Marine instrumentation increased three 2% in the quarter. In addition.
Orders were the strongest.
Strongest in the last six quarters.
Quarter book to Bill of 113.
Overall.
Instrumentation segment operating profit increased 24, 3% with.
<unk> segment operating margin, increasing 270 basis points or 247 basis points, excluding intangible asset amortization.
In the aerospace and defense Electronics segment third quarter sales increased.
11, 7% driven by eight 4% growth in defense <unk> space and industrial sales combined with a 27% increase in sales of commercial aerospace products versus last year's pandemic related top core.
Yes.
GAAP operating profit increased 34, 5% with margin 375 basis points greater than last year.
Finally.
In the engineered systems segment third.
Third quarter revenue increased one 4% both operating profit and margin declined slightly since we exited the higher margin thermal engine business earlier this year.
But before turning the call over to Sue.
Want to comment on our margin and earnings outlook.
For several years.
We've been on a journey towards our overall operating margin.
In the low teens to over 20%.
Over the last two and a half years, we have made tremendous progress.
With which that notwithstanding the pandemic.
The recent supply chain and inflationary inflationary pressures.
Today.
The approximate $1 increase in our earnings outlook is primarily the result of further improvement in our full year 2021 forecasted operating margin, which excluding acquisition related charges is a 100 basis points.
Better at approximately 21% from our 20% forecast in July.
And now to Sue.
Thank you Rob and good morning, everyone I will first discuss some additional financials for the quarter not covered by Robert and then I look at our fourth quarter and full year 2021 outlet.
In the third quarter cash flow from operating activities was $192 8 million.
Including all acquisition related costs.
Excluding acquisition related cash costs net of tax cash from operations was $194 9 million.
Compared with cash flow of $150 3 million.
For the same period of 2020.
Free cash flow that is cash from operating activities less capital expenditures.
Excluding acquisition related costs was $165 $7 million in the third.
Third quarter of 2021, compared with $135 1 million.
2020.
Capital expenditures were $29 $2 million in the third quarter compared to $15 2 million for the same period of 2020, depreciation and amortization expense was $92 million to place a third quarter of 2021 compared to $29 2 million in 2000.
<unk> 'twenty.
In addition, non cash inventory step up expense for the third quarter of 2021 with $35 2 million.
We ended the quarter with approximately $3 eight $9 billion of net debt that is approximately $4 billion of debt less cash of 551 $8 million.
Stock option compensation expense was $5 8 million for the third quarter of 2021 compared to $5 7 million for the same paid at 2020, resulting from the player acquisition restricted stock unit expense plus land claims was $1 8 million.
In the third quarter of 2021.
Turning to our outlook management currently believes that GAAP earnings per share in the fourth quarter of 2021 will be in the range of $2 53.
The $2 69 per share with non-GAAP earnings in the range of $4 seven to $4 17.
And for the full year 2021, our GAAP earnings per share outlook is $9 <unk> to $9 in 2009.
And on a non-GAAP basis $16 35.
To $16 45.
Compared with our prior outlook of $15 25.
The $15.
<unk>.
In 2021 full year estimated tax rate excluding discrete items is expected to be 23, 9%. In addition, we currently expect less discrete tax items in 2021 compared with 2020.
Now pass the call back to <unk>.
Yes.
Thank you too.
We would now like to take your questions operator, Brad if you're ready to proceed with the question and answers. Please go ahead.
Flat.
And ladies and gentlemen, if you do wish to ask a question. Please press. One then zero on your telephone keypad you can withdraw your question at any time by repeating the one zero command and if youre using a speakerphone. Please pick up the handset before pressing those numbers once again to ask a question press one and then zero at this time.
And we can go right now to Greg Konrad with Jefferies. Please go ahead.
Good morning, and great quarter.
Thank you Brad.
Maybe just to start I mean.
You talked about a lot of the higher outlook based on the margin.
At least on the beat it seems pretty broad based across segments. I mean, how do you think about the drivers there and just sustainability given tailwind there are potential headwinds and I think previously you've always had a target of how much margin expansion you'd like to capture per year.
Anything changed around that as margins have reset higher.
Yes.
Well.
I think.
Greg.
Our expectation.
Is that.
Our margins will keep increasing.
As we projected.
Yeah.
We think its still 50, maybe 60 basis points per year.
Above where we are and I say that.
Perhaps earlier I may have said, the 100 basis points, but our margins have moved up too.
21%.
On Q3, so it's kind of get a little tougher, but we intend to improve margins as we go along.
And then just I mean, you mentioned accelerating the FLIR synergies the middle of next year I mean, what allowed you to pull that forward and maybe what does that mean for the longer term potential to drive productivity.
Activity and take cost out of the business.
I think.
In addition to wages.
Which.
A significant amount.
Net benefits.
About $45 million the more important thing that we've been able to manage to do is reduce dependence on third party consultants.
Legal savings.
And frankly lobbies as you know.
Greg We don't and we don't have lobbyists teledyne so.
Of course, the board fees and public relations.
So on those helped but third party consultants and legal and lobbying.
Others.
$28 million $30 million.
And then just last one for me.
You briefly mentioned inflation.
Before I mean, how do you think about the offsets there how much within the supply chain versus are there specific areas of the business, where maybe you have more flexibility around pricing just trying to think about broader risk of price mix.
So far what we look at the PPI Inflations are pretty high we're not experiencing as much.
We anticipated in our enterprise ratios to us from our suppliers.
Having said that some of our suppliers more recently have come out with 2025% price increases.
Good part of it is we have long term agreements with some of them. So those would moderate as for ourselves. So far this year, we've been able to increase prices on the average about 2%.
That means in some some businesses.
We can.
Obviously increased prices because we have long term contracts good but in other businesses. We do have the ability to increase prices on the average rates increased 2%. Our intention is to continue doing that.
Perhaps especially next year, we'll start thoroughly and see how much elasticity, we have in our prices.
Thank you.
And next we can go to line of Mike Macquarie with Wolfe Research. Please go ahead.
Hey, good morning, everyone. Thank you for the time.
So.
I'm just curious.
With 10 year government business are there any watch items like new starts or programs are significant ramps.
That youre, keeping a closer eye on while the U S is operating under this continuing resolution.
Yes, Mike I think.
First let me start by saying our government businesses are about 26, 27% of our total.
The two opportunities that we are keeping an eye on.
Our underwater vehicles.
There is a medium underwater.
You will be.
That the government is soliciting.
Proposals on.
We are bidding on that.
R R.
Engineered systems on our marine businesses together, just like we do with gliders and other things and then there is the large underwater vehicle.
That we expect.
To bid on.
Some of the other job.
In digital imaging we.
Have.
The wide field last view or what's called W. S D.
Early warning satellite that's an opportunity for us.
Our next generation overhead persistent infrared or peer is another one.
And.
That's the downside if there is a downside is we have to re bid.
At our NASCAR program, where we call policy, which the mission systems program.
Later this year when we bid on it yet, but the decision would be later and there's always a risk when you are doing that but overall there is a broad range of new programs that.
Are available to us even under the continuing resolution.
Got it.
And then to the point in your release about the recovering the longer cycle business. Now that you have that would you sort of be willing to talk about the early trends that you're seeing into next year within the business.
Right now.
I would say.
The <unk>.
Unfortunately, it would be in.
Our marine businesses, primarily because the oil prices as you're.
Well aware might have moved up significantly.
And we had a book to bill of 113.
This quarter.
We also think that we will have more opportunities on the aerospace and defense businesses, especially on the aerospace side.
As.
People start traveling more.
We think that.
Marine May have an upside next year of maybe $25 million of controls, which is our computers that debt.
On various aircraft that can have a similar number 20% to 25% towards our longer cycle businesses.
So far.
<unk>.
The shorter cycle, which they are.
Other side of the instruments.
We enjoyed a 9% increase overall and PNM, our test and measurement is doing well.
And we hope that with our new products that we keep developing that'll have a.
You'll have some bulk next years too.
Got it thank you.
Thank you Ron.
And next we can go to the line of Elizabeth Grenfell with Bank of America. Please go ahead.
Hi, good morning.
Let me think about the FLIR <unk>.
<unk> and the acceleration on the timeline for achieving.
The initial cost savings.
Where do you think we could potentially see additional upside to I think before the top side had been to a $100 million.
How much how much additional headwind how much additional headroom is there.
And to achieving additional additional cost synergies and savings.
Elizabeth Let me start with I hope I Didnt misquote myself.
Our top side savings.
Richmond moved forward from 2024 through 2022 is $80 million.
Having said that.
<unk>.
There are.
There are other opportunities.
But there would be more opportunities.
Developing products between clears.
Offerings and teledyne's offerings.
And.
As we move the revenue up.
And keep our cost down we think that will help improve our margins but.
We haven't factored that.
That in the.
The revenue synergies yet.
Because right now we are still integrating we have integrated some of the businesses very quickly like they make.
Mid range vision systems.
<unk> vision systems, and those we have capital dried away.
That's worked out really well.
But we're still working on the rest of the stuff like in the marine Raymarine in our marine businesses.
There are opportunities there and opportunities we achieved.
Raymarine businesses.
And our.
Software businesses and underwater software businesses.
<unk>.
We're working on all of those as we do that I think those would create more savings as we go forward.
Okay, and then as you continue to Delever, how how are you considering or thinking about the M&A environment and.
And additional opportunities.
To grow Inorganically.
Yes.
First on the Delevering.
Where we're not sitting at <unk> three.
Thanks.
Net debt to EBITDA.
We hope to take that down.
To about two seven by the end of 2022.
That would be our marker.
As we look at that when you kind of start getting confident that youre going to go there you'll start looking at larger acquisition potentials, because those things take time to get eight nine months, but in the interim.
We will look at and we are looking at smaller acquisitions.
As we did back in 2017, when we acquired <unk>.
<unk>.
Debt to EBITDA ratio was trading high.
We're very quickly delever over the next three years within the interim we also brought about $500 million.
Smaller assets so well.
The short term, we do small acquisitions in the longer term.
We've promised our promised.
Rating agencies that we wont do anything very big until we assure we can hit our targets.
Okay. Thank you.
Thank you Allison.
And next we'll go to the line.
Jim Ricchiuti with Needham <unk> Company. Please go ahead.
Hi, good morning.
Robert.
Question on the.
On the FLIR business.
Yeah.
Organic growth there it looks like it was fairly modest.
And I don't recall them, having much of an ESP contribution in last year's Q3 is any of this yet either portfolio realignment.
The commercial business appears to be doing okay. I think the machine vision business, probably was pretty healthy.
They are government related business that was a little slower.
No actually Jim if I may.
There.
ESG business.
Which was part of their components, which they make the sensors in the solutions business as a commercial solution businesses.
<unk> generated about $40 million in revenue last year in Q3.
I would say $35 million to $40 million.
And then Q3 last year, including that was about $466 million.
This year's third quarter. The revenue is $474 million. So if you do it.
No.
Revenue sorry.
If you if you were too.
Look at it apples to apples and then take the quality out of the 466, we're looking more like a 426 or 27 last year versus the $4 74. This is a significant growth there.
<unk>.
They've had we've had.
Reasonably good growth in our defense segment.
Declared a different segment.
Advanced.
Three 5%.
This year versus last year, primarily coming from the unmanned systems.
There's been growth in the commercial as well as in the.
Defense businesses, if you were to moderate things.
It was to subtract BSD sales last year third quarter.
No. Thanks for clarifying that Youre right. They did about $90 million in Q2, and even though it was down to 40 million in Q3, that's still a fairly significant contribution thanks for pointing that out Robert.
On the test and measurement business you guys have.
<unk> really well there and what I'm wondering is.
Structurally is there anything changing in that.
Business in that market is it market share gains is it.
Is it the activity Youre seeing in the protocol analyzer business are you gaining share do you think in the scopes business.
Yes, Jim quote.
<unk>.
What first of all we are hitting on all cylinders on our protocol annualize their businesses.
If you combine our protocol analyzers on a select group of sales that was a record for US all time record this quarter.
We see very strong demand for our protocol analyzers like PCI express as well as.
High definition multi media video products. The other thing that we've been successful that is.
We've combined our.
Ausiello scopes with our protocol analyzers, which saves a significant amount of time for engineers that are developing interfaces between product and that's been a real.
When our Florida, So it's a combination good markets, where oscilloscope a great market for protocol analyzers at an upside when you combine the two together with new products.
Got it.
Two quick final question shifts and this next question maybe difficult to answer, but you do seem to be navigating the component environment fairly well, but I'm wondering if you can.
I'd say.
Whether theres been any identifiable.
Disruption to revenues or in other words revenues that you, perhaps would have been able to achieve in the quarter, but you just it's just challenging to get parts.
Yes, Jim Thats, a great question, yes, I can answer that.
We track that one very closely.
First.
In the quarter.
We probably data and to enjoy about $40 million of revenue that we could add.
Because of the shortages now.
We were fortunate because the way our portfolio of business is laid out and as you are very familiar with where we can make some of that up in other places we have a balanced portfolio. These shortages are not teething everything we do.
And by the way those are not lost sales there just move to Q4, we expect to have a similar number in Q4, we're looking at Q1 of next year I'd say similar ratios.
So.
It's kind of a shifting game, but we make it up.
By pulling in from other parts of our portfolio, having said that we.
We have an extremely active program from the procurement side.
Where we have a major initiative in procurement automation, but we also have procurement.
Working with large interestingly with our suppliers in the far east who provide us <unk>.
They have access to components that go to into the OSB CBA and they're helping us get some of the computer chips and other components that we need and we also have some dedicated people in the far east doing the same thing. So it's a combination take the $40 million.
<unk> forward to take $40 million from next this current quarter pushing forward pulling some stuff where we can.
<unk>.
As I said before we're navigating gains I think so far we've done okay.
Got it.
And last question you alluded to is there a fairly strong book to Bill.
And marine can you give us a sense of book to Bill in.
The various segments digital imaging in the A&D.
Sure sure sure Jim.
Let me start with.
Marine I gave that in environmental and test and measurement.
One point to five in Q3.
Recall that we had in TNF, we had record sales in Q3, so at one point to arrive as pretty good digital imaging I would say 1112.
<unk>, which is our defense.
And aerospace businesses, one point those six.
In engineered systems.
All five above.
Jan Mono overall that brings it to about one month.
Got it thanks very much congratulations on the quarter.
Thank you Jim.
And well move to line of Andrew Buscaglia with Sternberg. Please go ahead.
Good morning, guys.
And that book to Bill.
Can you go into.
Digital imaging can you indicate how bookings are portfolio <unk>.
Yeah.
Okay.
Others.
In the one one in the digital imaging side.
Okay, Okay, so still above one though.
Yes.
Okay, Okay and then.
Sorry, what was that.
No I said in the digital imaging side.
Yes.
Okay and.
You talked to.
Fairly.
Positively about about government.
Are you still gaining our fair share of government awards potentially.
With FLIR helped.
Are there any of that related to FLIR that you could talk to and then maybe not so much near term, but anything you see on the horizon in 2022.
And that was always kind of a.
So our spot for them in terms of.
Winning new awards that are meaningful.
Yes.
I got to tell you that.
We're holding our own there.
Things have moved a little to the right.
But we've got some nice orders.
Especially for example.
U S border patrol, where we delivered light vehicle surveillance systems.
We have some DARPA program on.
That could lead to other activities in the personal protective biosystems.
<unk>.
Overall, I think we're holding our own there and I expect we'll do okay, but you know again.
Andrew.
What is to me what's important is even if you look at our government businesses with flare.
We have a balanced portfolio.
Unfortunately, they may have suffered a little bit because to focus the portfolio.
<unk> grown year between our engineered systems the clear unmanned.
Both ground and air systems and integrated systems, and then we have our of course, our defense programs.
In our aerospace and defense so.
We gained about three 5%.
In those programs in our government programs in Q3.
That made some modest when you look at the overall growth of 11, 9% organic.
But I'm happy with that if we can keep that case in this times point.
Forward, we should be okay.
Okay.
And maybe just lastly, youre seeing some of your longer cycle businesses pick up a bit.
I know, it's small but can you just comment on what's going on with energy specifically.
Yes.
The energy exposure.
Yes, I'll take that first is because of.
Sure.
<unk> oil prices.
We.
We expect that we get about a 3% increase.
From 2021 to 2022.
<unk>.
In total sales from let's say 150 million up.
Maybe to $175 million.
That's a little more of that 3% as I think about it but.
It's more like two one, but having said that.
<unk>.
Again.
Yeah.
I'll call back on what we've constructed our portfolio.
We get 3% here, 4% there.
We get.
Defense.
We got in energy, we get in our short cycle businesses, and then of course digital imaging, which hitting on all cylinders there.
We think we are gone.
Okay.
So there is upside in energy, but I'm not counting on it to move the whole company the oil company with node because of all the pieces that we have put together that protect us by the way on the downside as you work through.
Yeah.
Thanks Robert.
Thank you.
Do we have any other questions coming up.
Currently just have Joe as Joe's line is open and nobody following Joe.
Okay, Joe Hey.
Hey, guys can you hear me.
Yes, yes.
Hey, good morning.
You kind of hinted at this already but if you were to kind of think about flair ex the ESP. What do you think this is like the true growth rate, you're exiting 'twenty one into 'twenty, two and is that kind of a sustainable rate into 'twenty two.
Yes.
Right now it appears.
Subtract, our ESP, which as I mentioned, we had no revenue this year.
I think it would be in the mid single digits.
Just like we think Canada should be.
Yes, and then if you were to contemplate yes go ahead.
So I'll.
I'll just say this.
When we started the year.
Joe.
So when they started the year.
We said our organic growth would be five and a half two 6%.
To summer time in July we said it'd be six 6% and then.
When we came.
Today.
I said it would be between 7% seven 5% seven two products so I am hoping.
And.
Use the words, hoping.
When I say mid single digits nine 5%.
That would be a good beginning for us next year.
Yes understood.
Yeah.
We're talking about getting to look at $80 million run rate in savings by mid 'twenty two for clear when does that kind of imply for <unk>.
There is going to talk EBITDA, whatever is easiest to talk about.
Well I think.
I've mentioned earlier.
We anticipate to improve our margins.
260 basis points.
Across the company year over year.
And whether it's.
Non-GAAP or EBITDA by the way our EBITDA is about this quarter was 24, 2%.
I think.
That.
That will help improve our non-GAAP margins.
<unk>.
For our players today.
About 24%, which is significantly higher than we've enjoyed historically.
And for 'twenty, one our overall margin we expect.
The non-GAAP margin, which excludes of course the.
Intangibles.
Cost of associated with.
Purchase accounting if you go to 21% and if we can enjoy 50 basis points on top of that some.
Some of the contributions serious contribution coming from clear, we'd be very happy with that again.
Bear with me on this Joe.
I am giving you what I see in January happening throughout next year as we get to January of nothing terrible happens in the world.
Hopefully, we'll do better but right now I'll stay with the 50 basis points.
And then just one last question more high level.
And Theres been talk.
Stories recently about <unk>.
Kinda within nuclear gliders and sub orbital and can you just talk about like what this means for space based detection and fencing and where you guys are positioned there and how that market can develop further given my kind of new threats that we need to deal with.
Yes, we have.
We are too.
Examples that I can give you one of them is in our.
Engineered systems segment.
We have a contract where we are developing a.
Wind tunnel.
Sure.
Vehicles.
That our job.
After Nate.
Nature that you just mentioned.
That's very important because to test hypersonic vehicles.
You want to have a wind tunnel to be able to do that are hot wind tunnel.
A small program and a $50 million, which we think will be followed by.
Bigger program that is specifically for hypersonic vehicles.
And the other side.
We do have sensors.
And this segment in a flare.
And also especially.
That I met digital imaging in general, but we have.
<unk> that are being developed on used.
Computers.
Edge computers.
That are located on various vehicles for detection of high speed Ms Stopes.
And.
If that market starts growing then we do have a series of product and then we have.
One that I cannot describe to emerge we do have a very strong.
Program.
Program size of multiple programs in our imaging businesses here in <unk>.
Sure.
Locate.
In program and other sensors on satellites.
Space vehicles.
And those are classified programs and we are enjoying some.
Really good.
Opportunities.
That's actually led to growth.
Imaging programs.
Thanks, guys.
Thank you very much.
We do have a follow up question will go to the line of Mike Macquarie.
Research. Please go ahead.
Hey, Thanks for letting me back on.
Unless I missed it somewhere.
Robert would you be able to go around the horn on the change in growth rate at the segments that drove the change in guidance.
Yes.
Yeah.
Let me see.
I can do that.
So.
In July.
We.
Anticipated.
The growth rate in instruments would be about 662%.
Expect that to continue.
In digital imaging.
In July.
In our aerospace and defense segment in July we anticipated four 4% about.
And now we think it would be closer to six.
Engineered systems, we expect it to stink about one 7% in English shrink 12, 7% when you add those up.
Mike.
In July we anticipated that.
Our organic growth would be about six 6%.
If you add the numbers up that I just mentioned.
<unk>.
And round them up.
It'll be between 7% to 75%, let's say seven 5%.
Organic growth and that's kind of going around the horn as you mentioned.
Thank you.
For sure.
And currently no further questions in queue.
Thank you.
It's Brad I'll now ask Jason to conclude the conference call. Please.
Thanks, Robert and again.
If anyone has follow up questions. My number is on the earnings release, please feel free to call an email me and Brad If you give the replay information conclude the call we'd be appreciated. Thanks, everyone. Certainly thank you and ladies and gentlemen, the conference will be available for replay after 10 o'clock a M Pacific today and running through November 27th at Midnight.
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8140.
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Yeah.
Hi, pardon me the CFO.