Q3 2021 Materion Corp Earnings Call
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Greetings and welcome to the material in the third quarter 2021 earnings conference call. At this time, all participants are in a listen only mode.
Question and answer session will follow the formal presentation, if anyone should require operator assistance during the conference. Please press star zero on your telephone keypad.
As a reminder, this conference is being recorded I would now like to turn the conference over to your host John <unk>, Vice President Corporate Controller Investor Relations. Please go ahead Sir.
Good morning, and thank you everyone for joining us on our third quarter 2021 earnings Conference call. This is John <unk>, Vice President corporate controller, and Investor Relations for materials Corporation.
Before we begin our remarks this morning, I would like to point out that we have posted materials on the company's website that we will reference as part of today's review of the quarterly results.
Can also access the materials throughout the download feature on the earnings call webcast link.
With me today is jugal, <unk>, President and Chief Executive Officer, and Shelly Chadwick, Vice President and Chief Financial Officer.
Our format for todays conference call is as follows.
Hugo will provide opening comments on the quarter and an update on key strategic initiatives.
Following jugal Kelley will review detailed financial results for the quarter and then we will open the call for questions.
Let me remind investors that any forward looking statements made in this presentation, including those in the outlook section and during the question and answer portion are based on current expectations.
The company's actual future performance may materially differ from that contemplated by the forward looking statements as a result of a variety of factors.
Those factors are listed in the earnings press release, we issued this morning.
Additionally comments regarding earnings before interest and taxes net income and earnings per share reflect the adjusted GAAP numbers shown in attachment five in this morning's press release.
The adjustments are made in the prior year periods for comparative purposes, and removed special items noncash charges and certain discrete income tax adjustments.
And now I'll turn it over the call to jugal for his comments.
Thanks, John and welcome everyone.
We are really excited to be with you. This morning to share details of our third quarter of record performance and to talk more about the acquisition of H C F electronic materials, which closed yesterday.
This is an exciting time to train on.
Our sales are at all time high our pipeline of organic growth projects is robust and contributing significantly to top line growth our plants are performing well and delivering for our customers and some challenging conditions and we've just closed on the largest and most strategically important acquisition in our company's history.
We are delivering on all fronts and it's all thanks to our dedicated employees around the world.
In the third quarter, we delivered a record $216 million in value added sales up 31% from prior year.
Underlying market demand continues to be strong across many of our key end markets.
And we're starting to see recovery in aerospace and oil and gas aerospace.
Aerospace has now grown year on year for two consecutive quarters oil.
Oil and gas sorry second consecutive quarter of growth.
But what's most exciting to US is we are outgrowing markets as a result of our organic initiatives.
Our focus on investments in R&D over the past few years is paying off as we are launching more new products and applications than ever before.
Implications, which spanned across all key markets and in support of important megatrends.
Our sales into the EV market are doubling for the second consecutive year.
Growth in the semiconductor space is far outpacing market as we forge ahead with new applications in support of increased electronic content.
Introductions of new products, such as tough not to our increasing our total addressable market.
And our earnings are even more impressive.
120% year on year.
Delivering highest level of EPS a date.
Margins are almost 13% approaching our target of mid teens.
To achieve this level of profitability in the face of challenges such as staffing.
By chain and inflationary pressures, it's something we are extremely proud of.
We're not immune to these challenges, but our teams have stepped up and are delivering for our customers working closely with our suppliers and maintaining operational excellence.
We continue to effectively manage global supply chain and staffing needs to hard work and proactive planning.
Our value based pricing model precious metal pass through agreements and vertical integration continued to assist in mitigating the effects of inflationary pressures and our teams are keenly focused on operational excellence and effective cost control.
Along with our record financial performance, we continue to execute well on our key growth initiatives, including the engineered precision Kladstrup project.
Our new facility is now in the process of commissioning equipment and qualifying products in preparation for serving higher levels of demand next year.
We also continue to make other global investments in our facilities and R&D to support our broad growth objective.
In addition to our organic growth investments, we are extremely excited to highlight the completion of the HCS electronic materials acquisition.
This highly strategic and transformative addition, significantly increases our access to the high growth semiconductor market and aligns us with the top semiconductor manufacturers globally.
We announced the close of the transaction yesterday, and we're even more confident in the combined power of maturity on an H T. S. Electronic materials as you move forward as one company.
As a reminder, H T S. Electronic materials is a leading provider of high purity tantalum thin film materials used in the semiconductor industry as well as leading edge tantalum and niobium applications for the industrial and aerospace and defense markets.
With a state of the Art center of excellence with highly skilled and technical talent HCS electronic materials serves all of the top semiconductor manufacturers globally.
Well this end market comprising 80% of their sales there is no market more compelling to us given the massive growth of chip demand and usage driven by new technologies were all exposed to everyday.
The proliferation of smart devices high speed connectivity autonomous driving artificial intelligence and the cloud all drive the need for greater computing power and semiconductors are at the heart of each of these global Mega trends.
We expect the demand for semiconductor applications to be sustainable and long lasting.
ACS electronic materials is a natural fit maturing on because it really checks all the boxes for us.
It aligns well with our strategy.
Brings high value proprietary products with critical scale and has compelling financial profile that will be immediately accretive to earnings and margins.
The addition of ACS electronic materials is the right next step for material.
To accelerate our global leadership in advanced material solutions provider, well aligned with the evolving growth Mega trends.
If you missed the announcement this acquisition in September I encourage you to visit our investor website for more details.
Now, let me share some comments on the remainder of this year and our expectation for full year results.
We delivered three consecutive quarters of exceptional performance and expect to continue this high level of performance as we finish out the year strong.
Taking into account normal year end seasonality, we expect Q4 earnings in the range of 95 to $1 five six raising our full year guidance once again to $3 73 to $3.83 an increase of 86% from the prior year.
I cannot express how proud I am of our global team's dedication to meeting our customers' needs and executing on our organic and inorganic growth initiatives.
I'd like to thank our teams for the hard work and dedication as we finish out this record setting year and as we officially welcomed the HCS electronic materials employees to the maturing on family.
Now, let me turn the call over to Shelly to cover the financial details.
Thanks, Jugal and welcome to everyone joining us on the call today.
During my comments I'll reference the slides posted on our website. This morning.
Starting on slide 11, as we mentioned materials delivered a record quarter for value added sales adjusted EBIT and adjusted EPS.
You added sales, which exclude the impact of pass through precious metal cost reached an all time high of $215 8 million up 31% from the prior year.
The increase was driven by robust demand across several end markets, including semiconductor automotive industrial and energy.
We delivered an adjusted EBIT margin of 12, 9% and record adjusted earnings per share of the dollar and Tencent.
Looking at Slide 12, our profitability was impacted by several key factors.
Adjusted EBIT in the quarter was $27 8 million.
From $14 1 million last year.
Our adjusted EBIT margin of 12, 9% represents a 430 basis point increase from a year ago.
The increase was largely driven by higher volumes, including organic outgrowth.
Is it a mix improved pricing and favorable operating performance, partially offset by higher SG&A and R&D expenses and plant startup costs related to our new engineered precision Kladstrup facility.
Our team continues to deliver despite operational and supply chain challenges.
The increase in SG&A and R&D this quarter represents higher variable compensation and our continued investment in R&D.
Despite the increased investment SG&A expense as a percent of VA sales improved 200 basis points year on year when adjusted for special items.
Now, let me review third quarter performance by business segment, starting with our performance alloys and composites business on slide 13.
Value added sales were $115 2 million, an increase of 41% compared to last year.
The year over year increase is driven by strong performance in the automotive industrial and aerospace and defense end markets.
As well as sales to the new engineered precision kladstrup customer.
We continue to see notable growth in our connector materials for the automotive market.
<unk> sales to E V specific applications and increasing content across global platforms.
Both the aerospace and energy markets continued rebounding from 2020 Love's.
Value added sales were also favorably impacted by higher beryllium hydroxide shipments and defense program revenue, which will not repeat at the same level in Q4.
EBIT, excluding special items was $20 8 million or 18, 1% of value added sales compared to $9 3 million or 11, 3% of value added sales in the prior year.
The increase was primarily due to increased sales volumes strong mix and improved operating performance.
Ph D reported double digit adjusted EBIT margins for the sixth consecutive quarter of 680 basis points from the prior year.
Now, let's turn to advanced materials on slide 14.
Value added sales was a quarterly record of $69 7 million up 27% versus the prior year and exceeding the previous record set in Q2.
The increase was driven by accelerating organic initiatives and strong demand across all end market applications.
EBIT, excluding special items was $9 2 million in the quarter compared to $5 8 million in the third quarter last year.
Adjusted EBIT margins improved year over year by 260 basis points to 13, 2%.
The improvement in adjusted EBIT margins was due to higher volume positive pricing and strong mix.
Finally, turning to the precision optics segment on slide 15.
Third quarter value added sales were $31 2 million up 10% compared to the prior year period.
But does this increases across key end markets, including industrial automotive and consumer electronics.
Partially offset by declines in medical and defense were some program revenues has developed slower than expected.
EBIT, excluding special items was $3 5 million or 11, 2% of value added sales a sequential improvement of 230 basis points.
As a reminder, with precision optics being largely project based the impact of program timing can have a significant impact on mix and margins from quarter to quarter.
Year to date adjusted EBIT margins are up 30 basis points from prior year.
And EBITDA margins for this business are a healthy 19, 9% year to date.
290 basis points versus the prior year.
Moving now to cash and liquidity on slide 16.
We ended the third quarter of 2021 with a net debt position of $61 5 million and approximately $319 million available on the company's credit facility.
At the end of the quarter, we were well below our targeted leverage range of one and a half to three times net debt to EBITDA.
With the closure of the HCS electronic materials acquisition yesterday, we've included a pro forma column to show leverage still within the range, even with the acquisition layered onto our actual results.
Regarding capital allocation, we maintain a disciplined and balanced approach focusing on organic growth opportunities returning capital to shareholders through our dividend and the pursuit of strategic inorganic opportunities.
We were thrilled to be able to complete the transformational acquisition of HCS electronic materials, using an attractive financing structure with an appealing cost of capital.
Consistent with our comments over the course of the year, we expect capital spending of around 100 million for 2021.
The higher amount is attributed to our strong pipeline of organic growth opportunities, particularly the new engineered precision clad strip project as well as promising opportunities in each of our segments.
Now, let's turn to the guidance summary on slide 17.
We expect to close out this record year strong with fourth quarter earnings in the range of 95 to $1.05 per share an increase of 43% from the prior year at the midpoint.
This performance reflects normal Q4 seasonality and the Q3 timing a Phd beryllium hydroxide and defense revenue mentioned earlier.
We haven't included an estimated five cents for two months of HCS electronic materials, which is 13th without purchase amortization.
As a result, we are raising full year 2021 adjusted earnings guidance to $3 73.
To $3.83 per share.
The midpoint of the revised guidance represents an 86% increase from the prior year.
On this slide we have noted a few modeling assumptions for you.
Overall, we expect a very strong finish to 2021 capping off a record year for materials.
We are delivering on our organic and inorganic initiatives and meeting strong end market demand.
While continuing to position the company for sustainable profitable growth.
This concludes our prepared remarks, we will now open the line for questions.
Okay.
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One moment, please while we poll for questions.
Yeah.
Our first question is from Marco Rodriguez with Stonegate capital markets. Please proceed with your question.
Hi, Good morning, everybody. Thank you for taking my questions. Good morning, Good morning Marco.
I was wondering if maybe you guys can spend a little bit of time on some of the constraints that obviously everybody is experiencing and specific maybe on the labor challenges that you might have also been experiencing and in relation to that if maybe you can talk about the rising wages that you have.
Kind of how do you experience here and wondering how you are maybe thinking through that rising costs, and how you might be able to reduce that impact in the long term.
Yes, Michael and as you noted I mean, those challenges I think are in the industry and they seem to be everywhere right. Both on the supply chain side as well as the labor side.
Our team has just done a fantastic job.
Working through in each of our plants getting people getting them trained it has been it has clearly been a challenge training as you can imagine has been probably the biggest challenge after finding people.
We view these many creative ways to be able to have a job theaters.
Incentivize people to interview with US and then further incentivize people to join our company and then our team has done a nice job of putting together the training programs because the jobs require that the folks come in and get the proper training safety being our overall.
And priority, making sure that we can do things in a safe way and so training is important.
And then getting those people getting those people started so it hasn't been a challenge no question, but I think the team has done a very nice job as demonstrated by I think the sales that we've had across the board and really in all of our markets.
With regard to I think some of the cost impacts and things I'll, let them Kelly, maybe just comment on the on the call.
Yeah sure.
So you know on the wage side you know I think every company is dealing with the challenges of how to not only attract but also retain their talent and so we've been you know.
More selective with going through and trying to make sure that our wage rates are at market and keeping up with market. So we've done increases where we felt they were needed to you know to keep rewarding our people and keep them energized just stay with materials. So you know not only are we trying to attract but we're also trying to retain yeah. I think the other thing to note on that.
Related to Chili's, indicating is we've got a we've got a model that we really established the company to ensure that.
If we were experiencing cost pressures, whether it's supply chain pressures labor pressures you know anything like that but we really are taking a look at those in a very careful way and working with our customers and in an appropriate way to to recognize those so I think the teams build a model around that and this is demonstrated by I think our margin.
Yes.
Got it very helpful. And then in regard to that also kind of an offshoot if you will.
A lot of individuals are obviously you're in it.
Impacted by these rising inflation cost and a lot of companies are raising their prices suppliers like yourselves are also pushing through the the additional costs I'm, assuming and I saw some remarks about price mix benefit for you guys. This quarter or are you finding it.
Really easy if you will to kind of push through price increases to counteract the inflation when you might be.
Receiving.
Well I wouldn't necessarily say, it's relatively easy because I think anytime youre looking at pricing, it's an issue whether it's a supplier that's coming to us.
That's clearly a challenge we don't just simply accept the price up.
They bring forward and I'm sure that's the same.
With our customers as well I think it's really important for us to do to build the right story and help our customers understand what the situation is and be able to demonstrate the clear market dynamics.
Of course customers kind of have that feeling today, just because they are probably experiencing that from really all of their suppliers, but I think we've done again, a nice job, where we demonstrate to our customers and what the what the dynamic is and why we're doing what we're doing and then I'll have a thoughtful discussion and then from that be able to.
Those are those are pricing, but I wouldn't I wouldn't say, it's necessarily easy, but I think it is something that.
We're able to have a good thoughtful discussion with them and one of the things that's really beneficial about our company.
Now is that we have the the metal pass through so where we're seeing inflation kind of other materials.
Utilities, some shipping rates, so we're not experiencing big raw material increases that we need to go out and recover because we've got those pass through mechanisms straight to our customers so well.
While it's not easy never easy to get price, we're dealing with a bit of a smaller impact than maybe comedy.
Got it.
And then switching gears here to the.
Closing of the spark acquisition can you maybe walk through some of your near term integration efforts.
Any specific goals you are looking to achieve here.
Yeah, I think one of the things that Denmark, where we have a really good handle on is because a year ago. We did the optics falters acquisition and so we established a model that I think we're very well doing that and we're basically using as much of that model into the integration efforts here with them with <unk> electronic materials.
We've got an integration leader that we've put in place a full time integration leader, we've got functional support and really we're looking at integration from two fronts. One is more of a process integration and the other one is more of a business integration.
But at the same time, we want to make sure that AC.
Electronic materials continues to do well what they have done which is support customers deliver great products, great quality on time, and so we don't want to disrupt that so we do have a fairly detailed integration model that we put together both from a process side and from a business side with a leader and with the functional support and at the same time, making sure that the business continues to.
Ron and perform well like it has over the last several years.
Got it.
And then in terms of some of your end markets.
Semiconductor growth all wanted to slides looks pretty strong in the quarter.
And I know that obviously semiconductor is there's been a pretty strong market for some time here.
Lot of.
<unk> pushing that particular market higher but at the same time, you know everyone was aware of the semiconductor shortages that are out there and I'm curious if.
Your growth that you've experienced in that market is maybe been somewhat cap because of that and if not how should we be kind of thinking about those impacts at the semiconductor market and how that relates to your growth.
Semiconductor has been a very good market for us for a number of quarters now and to your point Theres definitely market tailwind, but I think at the same time you know when you look at our growth over the last several quarters, you'll see that our growth is substantially above.
General market growth for semiconductor and that's as a result of the great work. The team has done on getting organic initiatives, we've talked a lot about our aluminum scandium targets and they've been a really really growth.
Driver for US. We've also got what we call microelectronic packaging, which is basically packaging units, where we put one of the customers I should say put semiconductor.
Material and chips inside of it or.
A liability.
That's also been a been a great growth Avenue for us in terms of organic organic growth. So so first of all I think our growth is really built around a number of organic initiatives combined with the general tailwind on the Mark.
<unk>.
With regard to I think.
Where it's headed and kind of what's the what's the situation with the backlog maybe that's occurring now clearly there is a shortage.
Supporting our customers to the best of our ability that we can I mean as we're getting the orders then I would expect that this backlog will clear out maybe over the next.
Some people are predicting maybe even a little bit more than a year and then as it does we expect to continue to support but we are we are running our facilities to support our customers in a full in a full way. So we continue to be excited about this market.
Got it and last question for me on the automotive growth side also a really strong number I believe was 81% year over year can you kind of help us understand and I know that leverages. The EV market can you help us understand some of the main drivers there is that.
Kind of a function of Jason easier year over year comps versus the shut downs or are you taking market share new applications, just any color there.
And ranking those drivers would be helpful.
Yeah, you know auto has been a great market for us and we've really been focused on auto are the last several years and I think the growth is it.
Suddenly the.
The comps are helpful. But when you look at Q3 last year, there was already starting to be a bit of a recovery I think and so I think our growth is coming from a number of different fronts. One the general market growth that's happening.
Clearly we are having a lot of success on the EV side as we indicated we're doubling our sales for the <unk> specific applications for the second year in a row.
We've got a lot of.
Play that we do on the connector side and as we know electronics content on the auto continues to increase so that means connector usage continues to increase and therefore, our content continues to increase so we've we're really very fortunate I think to have materials that are used in the connector market. We also have a very heavily.
<unk> towards our European and Asian OEM.
Williams and European and Asian, Oems I think are doing a lot better I would say and this is the situation then probably perhaps the north American Oems.
So we've got a majority of our content is actually on the European and Asian OEM side.
And and then and then general content that we keep keep priming across our across the board I think of with a with global our global platforms. So number of things that are contributing to our automotive.
Motive sales, we're very excited about where automotive is headed for us in particular I think the EV content continues to be exciting for us.
And and then I think the general electronics growth continues to be exciting for us.
Got it thanks, a lot guys I really appreciate the time.
Hey, Thanks for taking my friend.
Our next question is from Phil Gibbs with Keybanc capital markets. Please proceed with your question.
Hi, Thanks, good morning.
Morning Bill.
The the energy sales really took off this quarter relative to the rate you've been on the last several quarters I think probably the highest level since mid 2019 late 2019. So what are you seeing that what are you seeing there.
Yeah, how much is related to oil and gas and other things because I know, you're not just oil and gas but.
Yeah, maybe some color there because I know, it's obviously helpful for your mix.
Right. It is an energy for us I mean, a couple of big areas for energy fill or in the oil and gas and the neither one is our smart glass applications oil and gas as we indicated is starting to show signs of recovery rig count is up by roughly about $5 50, a rig count versus about $3 50 at the end of the end of last year. So that's certainly helping and I think the recovery in oil and gas.
As a as a contributing factor smart glasses is really another nice contributing factor for us with.
With constructions built.
Building construction, especially commercial constructions.
And and remodeling up and so that's I think contributing as well. So it is a good mix for us both on the smart glass side and oil and gas side.
Thanks, Jugal and I'm a man on the they're not working capital. It was a very large use of cash this quarter, particularly as it related to inventory and accounts receivable.
What was that related to inflation was that related to you're getting ahead of the clad ramp I mean, maybe bring us through some of that it was surprising in terms of the use to us.
Yeah, I'll take that one Phil So I think it's a bit of a mix you know the AAR is up with our sales being up and there is some mix in there. The inventory piece is I think you know a tale of two cities that it's somewhat the pricing as you know our our inventory balance hold to the full value of the inventory, including the pass through metal and some of those precious metals are up to.
<unk> and then we have some cases where were carrying some extra inventory given the supply chain issues that are prevalent we want to make sure we're able to service our customers. So youre seeing our you know our safety stocks go up a little bit, but it's really to support this great level of business that we've got going right now.
Thank you and my last one I missed.
Missed the very.
Very very beginning of the call but can.
Anything you could provide us in terms of the the the ramp on the new cloud facility. I know you mentioned you had some start up costs this quarter, which are obviously expected, but where where are you there and how.
Are you sure you're poised to hit the ground running in 2022. Thanks.
Yeah, as we noted I think in our prior calls as well that we were going to have startup costs, a little bit in the first half of the year, but ramping up in the third quarter and fourth quarter and thats to be expected as we're getting this facility ready.
And to be able to go into.
And to higher levels of production into into 'twenty. Two so I would say, we're we've got equipment installed we're sort of in a commissioning final phase.
Now we will do that.
In Q3, and we did that in Q3, we're doing that again here in Q4, as we're getting a product build it is going to be.
A lot of testing testing on our site testing on the customer side.
And then and then our intent is to to go ahead and start running the facility from a production level.
Starting in the first half of next year so.
The team is exactly right on track it is in line with the schedule that we had developed with the customer and we're quite quite excited about that.
Thanks, everybody.
Okay. Thanks, Phil.
Our next question is from Marissa Hernandez with Sidoti. Please proceed with your question.
Good morning, and congratulations on the results.
Thanks for that good morning, Melissa.
So I wanted to ask about the optics false or integration.
How is that going in your view you mentioned Shelly that.
You know at Sprout chip based so quarter to quarter. There are variations how do you see it tracking versus your initial expectations in terms of potential for Martin and additions to sales.
Yeah, I think there's two things here one is the integration and then the second part you talked about sort of the.
How the business in general runs with a more of a project based.
Contracts that we have with our customers. So I think the integration is going really well, we've we put the two organizations together, we created a global organization led by Ian Rebecca.
And I think we've gone out we've got a strong team of individuals.
That are focused on the operational side as well as the growth side and as we indicated.
When we did the acquisition a year ago, our main purpose for firing up the exposure supposed to create this global organization that could drive top line growth and and we would expect to see synergies in the 2% to three to four year timeframe and I think we're exactly on track of being able to do that.
The teams are collectively looking at each end market and how each end market can be serviced with a global a global organization. So very excited about that.
I know the team has actually got a get together that theyre doing here in December to continue to further our work and refine our strategies for our four that I think the other part which is which is related to just strictly.
Strictly to the business. So it's not a optics mozer's issue or let's say the legacy issue is just how that business runs I mean, there is a lot of business that we have there that is a bit more project based.
So you'll see that and then historically you've seen that in the.
The margin profile of that.
Our business, both the topline and the bottom line so but overall, we're very pleased with how things are progressing and looking forward to.
Some more good things from from the team.
Thank you for that explanation no on the HCA two so quick question on the accounting.
Can we assume that what you are guiding for depreciation for the full year.
You know we strip out those two months and that's a good base number to use for 2022.
Yeah merits. So the depreciation we you know we have a good handle on the purchase amortization as an estimate as you might expect we've got to work to do there on the opening balance sheet and the valuation. So we've made an estimate. This is the reason why we provided EPS impact for two months, both with and without amortization. So you can understand the earnings power and we'll work through.
As to the assignment of the purchase price over the next few months.
Perfect. Thank you.
Uh-huh.
Our next question comes from Phil Gibbs with Keybanc capital markets. Please proceed with your question.
Thanks.
Kind of going off that question I know you've got a couple of months of H C. And this fourth quarter is there any implied.
EPS accretion from from the business in the fourth quarter in your guidance or are we should we expect.
Purchase price accounting impacts to impact that in Q4.
So what we're saying what we're estimating is that even with the purchase price amortization that it would be five cents accretive for the two months and without the purchase price amortization to be about 13. So we've got that work to do but we wanted to give you a feel for what the two month impact would be in our guide.
So when you actually report your numbers a few months from now is that purchase price accounting going to be included in that guidance range, but it will it will yes, and how long should we expect those accounting impacts to last.
I'm not sure if I follow you mean, how how long when we amortize the intangibles.
Is that what the differences is it basically the noncash amortization, that's going to stick with you for a while yeah, yeah, yeah yeah.
Okay. So that's that's a.
That's an ongoing.
Yeah Yeah.
As you know Phil you know many companies report EPS without purchase amortization you know companies that are precedent that's something we're taking a look at so we wanted to show you you know what the what the EPS is without purchase amortization.
No that's helpful. I appreciate it thanks, so much.
Sure.
Yeah.
Ladies and gentlemen, we have reached the end of the question and answer session and I would like to turn the call back over to John <unk> for closing remarks.
Thank you. This is John <unk> and this concludes our third quarter of 2021 earnings call. A recorded playback of this call will be available on the Companys web site <unk> dot com wed like to thank all of you for participating on this call. This morning, and your interest in material and will be available to answer any follow up questions. My direct number is 216383.
Or 010, thank you.
Okay.
This concludes today's conference you may disconnect your lines at this time. Thank you for your participation.
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Okay.
Okay.
Yes.
Thanks.
Yes.
Okay.
Yes.
Yeah.
Okay.
Okay.
Okay.
Yeah.
Okay.
Yeah.
Okay.
Uh huh.
Okay.
[music].
Yes.
Yeah.
Okay.
Yeah.
[music].
Yes.
Right.
[music].
Yes.
[music].
Okay.
Yes.
Oh.
[music].
Okay.
Yeah.
Okay.
Yeah.
[music].
Okay.
[music].
Uh huh.
[music].
Okay.
Okay.
Yes.
[music].
Mhm.
Hum.
Hmm.
[music].
Uh huh.
[music].
Uh huh.
Okay.
[music].
Okay.
Okay.
[music].
Okay.
Yeah.
Yes.
Mhm.
[music].
[music].
Okay.
Yes.