Q3 2021 North American Construction Group Ltd Earnings Call
Thanks, Peter Good morning, everyone.
Joe Lambert, our president and CEO is on the call here with us, but unfortunately is dealing with a rib injury and therefore will be savings energy for the Q&A session.
He has asked that I deliver these prepared remarks, which we've shortened up a bit this quarter given the one speaker approach.
I'll start out with safety and give a brief overview of the quarter.
And then close out with our expectations for Q4, and a few subject areas for 2022 before Joe and I take any questions you may have.
Slide four is our safety performance.
Our recordable injury rate remains flat as we are again generally at our pre pandemic workforce level, but need to continue to work in finding ways to engage our management and workforce to improve processes and practices and consequently, lower the rates.
We have put in additional training and effort into our Green hand program.
As our head count growth generally comes with less experienced operators.
This is nothing new to us, but reinforces our need for training teams and greening, our safety culture into all facets of the business.
Our one word overview of the quarter would be transitional.
Operational performance at all our states was particularly strong and conditions conditions were fairly steady throughout the three months.
The macro factors outside of our control remain present and continue to hamper our topline potential, but we will uphold all safety and risk mitigation protocols for as long as it takes.
Our oil sands work transition between different mine sites as Q3 experienced major fleet re mobilization to commence recent project wins.
Although we suffer a bit of utilization loss. During these transitions. These fleets are now set up for at a minimum a couple of years of $24 seven work.
Speaking of transition and regarding these recent wins it can be noted that we transitioned the majority of this work to our <unk> joint venture, which is a win win for US the producers in the region and of course, the mix to Cree first nation.
Our infrastructure external maintenance and work in other resource areas are also transitioning.
The Fargo Moorhead project reached financial close and is transitioning to project commencement and a more operational focus.
The team at the Northern Ontario Gold mine has transitioned to peak levels.
And our external maintenance program is transitioning to much higher capacities with the main shop expansion being completed on time and on budget.
And now moving directly into a further expansion of our component rebuild facility.
Yeah.
The financial review begins on slide 10.
We have changed things up slightly this quarter and moving forward, we will be disclosing what we've termed as total combined revenue.
For those of you that have followed us over the past few years Youll know that the impact of our joint ventures has grown from zero in Q3 2018, only three short years ago to what we see today, where in Q3 2021, approximately 35% of combined gross profit.
<unk> from our share of the various joint ventures.
Given the number of stakeholders involved these joint ventures are incredibly complex in nature, but as we stated in our Q3 financial report our goal is to simplify our disclosure for the reader of readers of these financials.
Our intention is for reported revenue to reflect our wholly owned entities with all other revenue and gross profit flowing through equity earnings.
For clarity, we have restated our results to ensure all comparable are accurate.
So with all that said total combined revenue for the quarter of $209 million was $90 million or 72% ahead of last year's Q3, which again is proving to be a difficult quarter to compare against for the pandemic reasons. We are all aware of.
The $209 million is actually a quarterly record for us as it is slightly beat out the pre pandemic quarter of Q1 2020.
That said revenue came in generally as expected as the quarter enjoyed consistent operating conditions.
Revenue achieved in the quarter was not driven by one specific factor, but by the broad listing of mine sites and business lines, which all continue to trend in the right direction.
The millennium Kearl and Syncrude mines have maintained their demand recovery trends and we continue to witness firsthand the long term resiliency of the oil Sands region.
The re mobilize fleet at the Fort Hills mine had a full quarter of operations and we remain very excited to be back on that site as they ramp up to full production.
Traditionally utilization of our fleet in the summer months is lower than Q1, and Q4, but the 52% operating utilization achieved in Q3 was impacted by the real world difficulties of workforce shortages, which we continue to experience.
Revenue from our joint ventures, a $43 million was an obvious record, beating last quarter's record by 20% and was primarily driven by achieving full capacity at the gold mine in northern Ontario.
Combined gross profit of 15, 6% is a noticeable improvement from the Q2 equivalent margin of 12, 4%. Despite a decrease in support from the wage subsidy program.
We are encouraged by the margins achieved in Q3 and they are trending in the right direction, even as we continue to face pressure from additional cost we need to incur related to isolation and quarantine protocols.
We estimate that these factors decreased gross margin around $3 million.
Primarily due to workforce vacancies, but also the additional direct costs we incur.
Moving to slide 11.
Adjusted EBITDA of 47 $5 million was up 28% for Q3 on the revenue factors mentioned already.
The margin of 22, 7%, which reflects total combined revenue is a strong achieve achievement across many business lines and indicative of where we see ourselves as trending in the right direction, but with improvements still possible.
Included in EBITDA is direct.
General and administrative expenses in the quarter of $7 $1 million equivalent to four 3% of revenue.
This spending percentage is consistent with expectation and the slight uptick in expense relates to the G&A spending in Australia of Dji trading.
Our LOE G&A rate continues to be achieved through cost discipline and strict attention paid to discretionary and nonessential spending.
Going from EBITDA to EBIT.
<unk> expense depreciation equivalent to 11, 2% of revenue, which reflected the depletion depreciation rate of our entire business.
When looking at just the wholly owned entities in our heavy equipment fleet, which many of you are used to us talking about the depreciation percentage for the quarter was 13%.
And reflected an effective use of our fleet this quarter.
Adjusted earnings per share for the quarter of 50.
It was driven by $24 1 million.
From adjusted EBIT net of interest and taxes.
Interest specifically continues to hold posting a four 3% rate and a $4 $5 million cash expense in the quarter.
We continue to benefit from both posted bank rates as well as competitive rates and equipment financing.
Moving to slide 12, I'll summarize our cash flow.
Net cash provided by operations of $32 million was produced by the business and includes the impact of non cash balances that aren't immediately apparent.
Given the neutral working capital results in the quarter. The difference between this figure and EBITDA. Besides of course, the interest is the accumulation of cash in our joint ventures, which typically declared dividends in Q4.
Sustaining maintenance capital of $19 8 million was dedicated to the maintenance of the existing fleet in anticipation of what we see as being a very busy winter season.
Moving to our balance sheet on slide 13.
Liquidity of $190 million reflects our strong liquidity position this year as we benefit from the issuance of $75 million of convertible debentures early in June on.
On a trailing 12 month basis, our senior leverage ratio as calculated by our credit facility is now at one six times.
Net debt levels remained consistent over the three months as the free cash flow generated in the quarter was used for the initial cash acquisition cost to purchase dji trading.
On slide 14, we have provided our current debt composition, which is conveniently split into three primary buckets being our credit facility equipment financing and convertible debentures.
With the extension now out to October 2024, and the strength of our current leverage ratios, we have no near term financing decisions on our plate at the moment.
Moving along to slide 16, you will see our Q4 priorities.
This slide provides insight into the immediate objectives that we are currently focused on and you will see them coming up again as they relate to our 2022 outlook.
On slide 17, we have provided our guidance for 2021.
Of note and of course is an increases to EBITDA and EPS, which are primarily driven by our expectations of the Fargo Moorhead project now that it has officially reached financial close.
The initial quarter of this complex project is challenging to forecast and this is reflected in the ranges we have provided.
Furthermore, given the cash distribution profile of the two joint ventures, managing that project, we have left the free cash flow range constant.
We couldnt be more excited about the prospects for this project, but it is difficult to estimate the exact cash timing of how the joint ventures will distribute cash.
Looking out to 2022 on.
On slide 19.
We have started with our equipment utilization.
Chart.
This is such a critical kpis for us.
And one that will attract closely for 2022.
As was mentioned earlier, we had strong demand with fleet mobilization and some opportune pre winter maintenance items made the Q2 to Q3 gains quite modest.
We fully expect pre pandemic levels.
Going forward and being more closely following our longer term trend line.
Slide 20 highlights the major milestone win of the infrastructure project and our Red River Alliance with <unk> and <unk>.
As the largest infrastructure project in company history.
We have of course identified the success of this project as critical to our longer term goals.
We have prioritized demanding planning fleet management and procurement work with the goal of a smooth project start when we commence commence earthworks in the spring.
We have mentioned previously that we can leverage projects like this the.
The flood diversion project here in Alberta, The Spring Bank Reservoir project in Calgary to be more specific is an example of this we are pleased to say our partnership with the same Quebec company, we were bidding the Quebec.
Mining projects with is qualified to bid on spring Bank and we are looking forward to submitting a competitive bid early next year.
On slide 21.
We reiterate and show the progress of our diversification strategy.
As we've consistently messaged, we expect to grow diversification, while growing and supporting our long term oil sands clients with high utilization of our large fleet while at the same time, improving the utilization of smaller fleet outside the oil Sands region.
Slide 22 is self explanatory and we would note that the increasing awards are coming with longer terms and create a multiplying effect on backlog.
Slide 23 highlights our robust bid pipeline two tenders.
We would highlight are again, the spring Bank reservoir project, which after many years of starts and stops is now moving forward with RFP for submit all.
And the other is a return of one of the Quebec mining contracts, which we originally thought we had lost we have re tender. This project with our same Quebec partners and are looking forward to seeing the outcome.
Slide 24 highlights some of our operational.
<unk> initiatives as you can see we are putting a major focus on the emission side of our business.
Solar power.
Idaho reduction machine monitoring are all areas, we can get quick tangible emission reductions with existing technology.
Longer term.
We are looking at alternative fuels electric vehicles and hybrids for emission reduction.
We established feet fleet fuel measurement processes here in 2021, and we'll set baselines and targets for our 2022 program.
On slide 25, we highlight our continued push for a more diversified workforce.
We have great training and development programs and continued safety and proficiency in all areas of our business.
Slide 26.
Highlights the growth in our indigenous partnerships.
This structure continues to grow in the mining industry as its a win win for all parties.
There is a direct correlation between our partnerships topline growth.
And the benefits received by the indigenous communities they represent.
Lastly, but certainly not least is our quantitative 2022 outlook.
On slide 27.
We believe this slide again, albeit quantitatively.
Illustrates the success, we have achieved by sticking with our strategy and our commitment to be the safe low cost sustainable contractor.
The outlook is predicated on operational excellence and we couldnt be more excited heading into what we consider to be a landmark year for <unk>.
As Joe mentioned in his letter to shareholders and while we all knew were part of building something very impressive.
The ability for us to project out earnings in the range of $2 15 to $2 55 is the result of a decade's worth of steady momentum.
We fully understand the need to execute but feel confident that we have the people the projects the contracts and the equipment in place to do so.
I will now hand, the call back to Peter for the Q&A session.
Thank you.
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After a brief hospital to begin the Q&A session.
And your first question will come from Tim on a shallow with ATB capital markets. Your line is open.
Hey, good morning, everyone.
Good morning, Tim.
I was just wondering if you could elaborate a little bit on the <unk>.
Guidance range for 2022.
<unk> contemplate when you think about the lower end.
And also the higher end.
I'd say more than anything else.
Utilization on the smaller end of our fleet, where we have less commitment almost all of our.
150 ton trucks are committed.
So it's really.
That stop in summer works that may or may not have more materials and then.
The last thing I'd say.
Joint ventures, and our partnerships.
And there are opportunities to grow.
Okay.
Do you need to gain any new.
Work that.
That higher end.
Yourself.
Suzanne.
It's newer work, but its more work that doesn't get committed to until spring typically for the lower utilized and of our fleet, which sits in summer.
More so than winter so.
From now through March or April.
90, plus percent booked on what we plan versus what we have in that outlook.
The opportunity is.
Getting more and better utilization and historically in summer or other works.
So for achieving what we have we certainly don't need anymore.
But if theres other opportunities come along.
We will certainly assess them as they come to.
Okay.
Guidance for 2021 was up let's take the answers that can increase strong Q4, I imagine some of that has to do with revenue.
<unk>.
<unk> earned on the Fargo Moorhead project is there anything else.
Q4 looks.
Making it super sale.
Right.
The mob and demob, we saw impacting us in Q3.
<unk> has set us up.
Well on the jobs for winter.
There is no significant.
Malware demoed happening in Q4, so often we would have.
And demoed happening in November between job between summer and winter jobs.
And so I think that's the primary driver.
Okay got it and.
Last one for me here.
<unk> mentioned in the MD&A, just some impacts from Covid related.
Guess isolation.
I would assume which impacted your labor.
Ability in Q3.
Is that mitigating in Q4 to what extent.
And could you speak just a little bit about the labor market in the year.
We're looking at currently and what you were expecting 2022.
I guess, we continue to expect that Covid protocols.
<unk> our impacts in Q3.
More related to direct cases.
There is more vaccinated people so.
Vaccinate people Didnt have to if they were not symptomatic. They werent quarantined for 14 days like you would have seen in Q2 or or before.
And we fully expect that Theres more vaccinations going forward, we're going to see.
Less impact on the Covid protocols.
And what was the second question again Tim.
Just around labor markets.
Yes.
We're still feeling some.
In fact, we've always had issues with the <unk>.
Heavy equipment technicians.
We are seeing difficulty is ramping up.
Again think it's mostly because of the travel restrictions and.
This isn't anything unusual for us in oil sands.
Given given the balloons of previous times. This this is areas, where our training and recruiting is setup for so we do expect some impact.
In Q4, but it's nothing we're not used to mitigating.
Okay.
You think theres any risks.
Q1.
Activity levels around just being able to staff.
Equipment.
No whatever we get rolling here in Q4, we'll continue going through the Q1 site. So.
Whatever impact we have on the recruiting side, we'll know pretty soon.
And I think generally.
Mitigate those in the past and I think once you get them, they're there they're right.
Okay I appreciate the detail so I'll turn it back.
No worries.
And your next question will come from Brian SaaS agreement James Your line is open.
Thanks, Good morning, guys.
I just wanted to get your sense on how the structure of I guess the multiple use in multiple service agreements have changed over time.
Specifically, whether youre seeing the desire for those contracts to be longer term commitments than than you've seen in the past.
Okay.
What I'd say is its Brian.
The base contract or are exactly the same it's.
The awards within them.
This is going back about.
Four five years ago, where we were.
You got the first long term.
Overburden commitment awarded under an MSA.
<unk>.
I believe that client has seen the value in that.
And we're seeing that expand so what used to be a five year MSA that might get it.
Six months or one year overburden.
Award underneath it now.
Now get a two year Overburden award.
Or longer.
Because they want that fleet committed.
Okay. That's good color and then maybe taking the lead driver in our backlog to Brian.
No Sir I was talking about the multiplying effect, it's not just getting the award it's getting longer term ones.
Right, Okay that makes sense and then just on telematics.
On the strategy going forwards, there and really how could this impact the margin profile longer term.
Yes.
Got about I think 70 units.
150 planned for year end.
And then ultimately upwards of potentially 800 of our fleet.
And then.
From ESG to operating costs.
Tell him actually is pretty exciting area.
It's just early days I'd like to be able to get some reporting out and show you what the real real life impacts these are but.
Being able to monitor your idled being able to trigger.
Sheen automatic machine actions instead of operator or a mechanic actions.
Being able to.
<unk> the components and.
The characteristics of a failure before it happens.
And identify those things are all.
All areas that help extend component life.
Improve operations Theres also.
Many areas of the reporting side of telematics.
You know just the GPS or the tonnage reports of the cycle times from an operating perspective that are advantageous.
So ESG operating efficiency.
Maintenance component cost, it's got a lot of different <unk>.
Areas that can drive.
Opportunities for us in.
Great. Thanks, that's it for me.
Thanks Brent.
Your next question will come from Maxim <unk> with National Bank Financial your line is open.
Hi, good morning, gentlemen.
Morning, Mike.
John Hope you feel better soon.
Hey, guys.
Couple of questions from me.
When do we think about the winter.
Visibility in the oil Sands do you mind, maybe just.
Comparing how that outlook right now is stacking versus 2019, so when it got pre pandemic we bought.
<unk> to basically to normal or how should we think about that that bucket.
I would.
As far as this winter.
Absolutely say, we are back to pre pandemic.
Normals.
And normal as being that 2019, which was a significant.
Areas of growth and opportunity for us.
It's definitely a fully booked order for winter I'd say.
Okay. That's good to hear and then overall in terms of the bid pipeline and maybe do you mind, maybe talking outside of oil sands, how that pipeline compares to maybe.
Now versus nine months ago, if it's possible.
Yes.
It's.
We've seen a bit more infrastructure is certainly the spring Bank dam line.
We don't see tight.
High frequency of the infrastructure jobs. So it's great to see it if we have one or two at a time that's great.
I'd say, we're still seeing a lot of different <unk>.
Commodity areas recently I've heard.
Areas of.
U S mining that are that are enquiring early stages.
But it's extremely strong commodity market so from gold.
Iron ore to cold or whatever.
I think we will continue to see.
Bid opportunities.
The pipeline is probably at or slightly higher than what it was nine months ago.
Just because of that and we report.
Combined after noon and because we actually did things together in that pipeline and.
So I think it's extremely strong and not just from a size standpoint, but from a diversification standpoint.
I think it will give us great opportunities.
This is typically a slow time now kind of now between now and.
Early.
Early spring.
Other than possibly the spring make damn one there's not a lot of orders that happen there, but we still do you still expect that.
Significant bidding activity during that time frame.
Right. Okay. No. That's super helpful. And then just maybe a couple of cleanup questions for Jason If I may.
Just in terms of the Fargo Moorhead in relation to I know that you're not commenting on sort of cash flow dynamics, specifically, but because its <unk> project, how should we think about sort of the investments on working capital on your side I'm done kind of milestones do you mind, maybe just kind of working through the mechanics of that if that's possible.
Yeah, So the way it's financed.
There will be no working capital required of the joint venture partner, so it won't affect us from a.
Our working capital perspective.
Where youll see it accumulated that investment in affiliates.
On the balance sheet, but really what that means is as we book.
Earnings the cash may not come with it it might be delayed, but that's where the delay would happen.
The the tricky part for year end as on December 31, we will have to determine our percentage of completion.
Particularly for the C JV, which is the construction JV.
And that's where we see some uncertainty in where.
We're not exactly sure where where that will get a.
Assessed and however, whatever percentage of completion as determined thats how much net income we would we would report as adjusted EPS.
Okay.
Thank you so much and then.
Wanted to ask you about the.
The rebuild activity.
That you perform for third parties.
I presume given some of the OEM constraints right now that should be the robots business do you mind, maybe commenting if you have enough parts to be able to undertake all this work.
Yeah.
Haven't had any issues so far Max there there is some hints of some shipping in some.
And costs going higher so they can especially see transport.
And we have seen with certain vendors.
Certain items that are seem to be on back order longer than normal I don't think we've seen anything systematic.
Certainly we've been doing quite a few second life rebuild didn't have a few.
In the shop right now.
We're doing more for our partnership as the first priority and our <unk> partnership.
But we're also doing quite a few for customers and clients.
And in the oil sands.
And we've done a few for outside the oil sands.
We will get some of those numbers in front of you here pretty quick because I.
I think it's a really exciting time, because we are approaching I don't know if you remember, but when we first.
Delta office and shop, I talked about and the ability to generate about $30 million of external maintenance out of there and then.
Obviously, we've had few things like Covid interrupt at.
And then I think I think we're gonna be very close to that level. This year.
And I think we're gonna have opportunity to exceed that next year and certainly in the expansion of our Remanufacturing side.
And looking at bringing some hydraulic components into there.
It's because we've got great demand of our own site and increasing demand from external so we've done a lot more track cranes, a lot more rebuilds for external maintenance than we have in quite a while.
That's super helpful and actually just one follow up if I may in terms of the shipping cost.
Will this be impacting <unk> business or is that a pass through.
On an basis.
Okay.
Predominantly a pass through I think one thing it will do is it will just drive us to look forward sourcing closer to.
To your customers so.
<unk> has a Canadian customer theyre going to try and source equipment in Canada, there, it's kind of a strange customer they're going to try and source in Australia because.
It's mostly the.
The overseas shipping side that says the most problematic.
Right. Okay. That's super helpful. Thank you so much that's it for me.
No worries thanks.
Your next question will come from Aaron Macneil with TD Securities. Your line is open.
Hey, guys.
Good morning, Aaron next five years or so.
The context of your guidance, you, obviously speak to that.
Capital allocation priorities in 2021, but you kind of leave it blank in 2022. So I guess later went to SaaS can you rank the usual suspects like organic growth capital acquisitions debt reduction and CIB.
Our dividend increases any updated thoughts there.
Right.
We're going to have those discussions predominantly with our board and.
Our next board meeting, where we go through our strategy in.
Part of what we talked about this being a transitional quarter.
It's kind of pushed that off typically we would be having some of those discussions now and be presenting them and I think we've just pushed it off to the to the new year. So I really wouldn't want to comment until I have had those conversations I think you've seen our typical allocations.
Allocations and.
We just try and make efficient capital is so dependent upon what share prices and things like that it can change so.
I wouldn't want to comment because I don't want to be able to have those.
Strategy discussions with our board.
Sure.
It's understandable and so just on Fargo Moorhead, now that you're sort of getting.
Getting started.
Can you share any.
Context, or first impressions on potential.
Operational challenges or not maybe not challenges, but differences relative to the core business or things.
He might have to change operationally.
We've got guys on site, where we're manning up there.
Our Berry has been down there our VP of operations.
It's actually.
<unk> tested some equipment and some of the areas just to see how the material behaves.
Don't expect from the Earth work side of things.
Anything unusual this is very <unk>.
Similar work to what we do this as a building.
Building earthen dams in soft underfoot conditions, which we have.
Many years and many millions of cubic meters of experiencing.
Ed.
The workforce.
I think we're going to continue to see.
Especially with.
Increasing demand for people on our equipment operators and such but I think again most of that anticipated and I think it was a long term job like this it's gonna be.
Very desirable positions to work at.
Understood.
And then maybe just in the context of all the global supply chain challenges.
Could you give us an update on dji, presumably I would assume that they would be.
Getting a lot more inbounds now than me they typically get in the past.
They've had great demand side I think there is some challenges coming up on shipping and it's.
It's going to be on <unk>.
Constant availability and like I said, I think it changes where they try and source equipment. So.
When you had two assets one in Canada, one in Australia.
And the one in Canada might've been worth more even with the shipping.
And then the one in Australia, but now it isn't because of the shipping cost it's.
It's just they're very in touch with this marketplace.
In both the asset value and the transportation and logistics costs.
So you know I fully expect them to adapt they've been.
It's extremely good at adapting and amazing what they've been able to achieve without being able to leave their home state as I mentioned in our shareholder letter.
And.
They've got worldwide, if they're if they're stuck trying to source things from <unk>.
One area requiring shipping to another.
Be an issue, but I don't think thats going to be the issue and I think.
Clean them and us and our own contacts and knowledge of the marketplace I think we'll be just fine.
And getting back to normal levels of business, which is already at actually.
Understood.
Thanks.
No I'll take that.
Yeah.
<unk>.
Again, if you would like to ask a question you May press star one on your Touchtone phone.
And your next question will come from John Gibson with BMO capital markets. Your line is open.
Good morning, guys.
Sorry, if I missed this but just when you look at the spring bank debt.
Can you give any sense like is it similar to the Fargo Moorhead in terms of size and scope and if the project does go ahead do you have much in the <unk>.
By way of timing.
It's a much smaller scope John it.
I think it was announced publicly with a number to it there was in the <unk>.
400 million on area, but.
You know, it's a smaller job.
We would expect it to be submitted.
<unk>.
And awarded before summer.
And we will.
We'll update as we go so we picked our partners our partner being the.
Same guide we've partnered with in Quebec, because theyre extremely strong in.
Rolled concrete and so we think between.
Our skills in Arizona.
A very strong team the other thing that's different I would say is there's not a short listing of bidders.
So there's somewhere in the neighborhood of seven or eight teams.
Believe the pre qualified and they'll go all the way through to the bidding. So it is a lot more.
Competitive and it's not been shortened down to.
Three or four teams like we've seen some of those larger jobs.
And.
And anything else you want to know about that certainly takes no antibiotics.
That's great. Thanks Seth.
Second one on the Quebec Goldmine that came back in your business pipeline I know you referenced the $100 million and are also a $300 million contract.
Can you disclose which one that came back in your bid pipeline.
This was a smaller one.
Okay.
Update on the on the larger one.
Well, we were it was not awarded to US It was awarded but we still arent positive. It was awarded at the same scope.
It looked like it might've been.
Awarded us a continuation to a local contractor.
And doing an assessment for <unk>.
For self mining.
So.
I'm, just guessing at that John but.
Yeah.
Not positive it was awarded as.
A full term and scope as what we tendered.
Okay Fair enough, Thanks, and last one for me out of losses, I guess different.
And the way that Erin I should I guess when you look at the dividend I realize your multiple is probably still not where you want it to be Oh boy, we've seen a bit of an expansion along with the stock kind of late I guess your coffee or guidance.
You are in your free cash flow looks are very positive I guess, what would you need to see in order to implement a higher dividend.
I don't think we'd have to see much Jon I think really we need to have that conversation with our board I think we need to get out of this transitional timeframe.
And getting to a more predictable environment as far as Covid and.
Adam.
We need to have the discussion and I think it's an area that will have a great amount of consideration and contemplation.
Okay great.
It's nice to see the stock respond. This morning was also congrats.
Thanks, Thanks, John.
Okay.
This concludes the Q&A section of the call I will now pass the call over to Joe Lambert, President and CEO for closing comments.
Thanks, Peter and my Thanks to you all for joining us today.
And for your continued interest in our growth and diversification journey.
I'm very excited about.
Where we're going and our opportunities to advance our business in 2022.
And what we all hope and expect will be.
Much healthier and more stable environment.
Thanks again.
Thank you everyone. This concludes the North American construction group Q3, 2021 conference call.