Q3 2021 Bel Fuse Inc Earnings Call
Good day and welcome to the Bel Fuse, Inc. Third quarter 2021 results conference call. Today's conference is demo coded and at this time I'd like to turn the conference over to Dan Bernstein, President and Chief Executive Officer. Please go ahead Sir.
Well. Thank you Catherine joining me on the call today, as we look to a week.
F O and then Hudson, our director of financial reporting before we begin the call I like gasoline to go over the Safe Harbor statement.
Thank you Dan and good morning, everybody before we start I'd like to read the following safe Harbor statement.
Except for historical information contained on this call. The matters discussed on this call such as statements regarding expectations concerning backlog and scale, our diversification strategy expectations concerning our long term growth and the impact of acquisition.
The anticipated impacts of our business and the estimated effect on our operating results of the ongoing material shortages and worldwide logistics situation.
Internal initiatives to improve margins.
Our expectations plans and intentions for fourth quarter and beyond.
With respect to our strategic focus is strategic plan community investment environmental impact and capital allocation are forward looking statements as described under the private Securities Litigation Reform Act of 1995 that involve risks and uncertainties.
Actual results could differ materially from bels projections.
Among the factors that could cause actual results to differ materially from such statements are the market concerns facing our customers the continuing viability of sectors that rely on our products the impact of health public health crises, such as the governmental social and economic effects of COVID-19, the effects of business.
And economic conditions differ.
Difficulties associated with integrating recently acquired companies capacity and supply constraints or difficulties.
Product development commercialization or technological difficulties, the regulatory and trade environment.
Risks associated with fluctuations in foreign currency exchange rates and interest rates uncertainties.
Uncertainties associated with legal proceedings, the market's acceptance of the company's new products and competitive responses to those new products.
The impact of changes to U S trade and tariff policies and the risk factors detailed from time to time in the company's SEC reports.
In light of the risks and uncertainties there can be no appearance that any forward looking statement will in fact prove to be correct. We undertake no obligation to update or revise any forward looking statements. We also may discuss non-GAAP results. During this call and reconciliations of our GAAP results to non-GAAP results have been included in our release.
I would now like to turn the call back to Dan for a general business update.
Thank you Lynn and thank everybody for joining our call today.
Before discussing the quarter I would like to thank our global manufacturing associates for their ongoing dedication to bell and their.
Average <unk> kept all our manufacturing sites up and running in the third quarter.
Thanks to our results, we achieved a third quarter of meaningful year over year sales growth.
With new record highs in both quarterly booking and in our backlog of orders at the call.
The increase in demand across all our major product groups.
The new way.
We've had substantial growth in C. U R E mobility, and the Circuit Protection Division Interestingly, though circuit protection, our oldest product line are the best quarters in our history.
Backlog is at an all time high Poland 319 billion at September 30.
Farooq will offer more details shortly.
Pleased to announce the accuracy.
Now that our acquisitions of <unk> and yes.
I'll now fully integrated into the belt family and both were immediately accretive to our results contributing a combined $12 4 million in sales and one 6 million net earnings since their respective acquisition dates on the cost side, we do see increases in labor and material logistical and all regions price increases.
We'll offset these all these costs going forward.
The global parts availability and logistics have pushed out approximately $10 million of expected sales in Q4.
<unk> sales into Q4 2021.
Rolling electrical blackouts in China is something we are closely monitoring.
The quarter also marked a big milestone for us as we concluded our ERP conversion project combining five systems into one since the inception of this product that was incurred a cost of $7 million with annual cost savings achieved.
We're excited about the data and analytic tools that the new system will provide and helping us better review and manage the profitability of our operations.
For the fourth quarter, we will continue working on several funds to streamline and simplify the business to improve our margins.
Yesterday, we announced exactly grill is a new addition to our board of directors.
<unk> is currently CEO of Asia asset partners, a company focus on organization culture Human capital planning and leadership development. In addition, she has a long career at Rollins College graduate school of business, which he held positions as assistant beat of emissions career development correct correct.
There are emissions.
Professor of managing our focus as a management recruitment selection retention and diversity in the workplace. We are pleased to have Jack is a member of <unk> Board as you embark on a variety of projects in the coming quarters, which include refreshing our strategy our growth plan ESG associate engagement and <unk>.
Sanjay and investing in the communities in which we live and work.
Yeah.
Through our route.
They'll run through the financial updates.
Thank you Dan Good morning, everybody sales by product segment for the third quarter of 2021 were as follows power solutions and protection sales were $63 million that is up 26% from last year's third quarter.
Our products that contribute to the E mobility end market led the group with a growth of 115% followed by <unk> and fuses as discussed previously we continue to exit our custom module business that was a negative contributor this quarter weaker sale or.
Our power solutions and protection group finished the third quarter with a robust backlog, which is up $126 million or almost 200% from yearend.
Connectivity solutions sales were $40 3 million, an increase of 5% from last year's third quarter with the continued rebound in the commercial aerospace market, which improved by $1 4 million or 59% from last year's third quarter.
Sales distribution channels were also strong reflecting a 23% increase from last year's third quarter the.
The defense sales were challenged this past quarter, resulting a 37% decrease the backlog of orders for our connectivity products grew by $30 million or 64% since year end.
Magnetic solutions were $46 3 billion that is up 20% from last year's third quarter led by higher demand for our integrated connector modules that are used in next generation switching applications or.
Our backlog of orders for magnetic products grew by $79 million or 184% since year end.
Preliminary gross profit margins by product segment for third quarter of 2021.
<unk> or <unk>.
Our solutions are protection had a gross margin of 26, 1% in the third quarter of 2021 that is up from $24.
Two we said that last year's third quarter.
Activity solutions gross margin was 24, 8% down from 29, 1% in the 2020 quarter.
<unk> solutions gross margin was 23, 1% down from 28, 3% in last year's third quarter.
On a consolidated basis gross profit margin decreased to 24, 5% in the third quarter.
Of 2021, as compared with 26, 8% in the third quarter 2020.
Industry wide increases in raw material pricing higher labor costs and unfavorable foreign exchange fluctuations during the third quarter of 2021 outpaced the benefits from pricing increases earlier in the year. The margin comparisons were also affected by $900000 in the Covid related subs.
<unk> received in last year's quarter that did not repeat.
On the R&D front costs were $5 9 million during the third quarter of 2021, an increase of $200000 from the third quarter of 2020, largely due to unfavorable FX.
SG&A expense was were $21 2 million or 14, 4% of sales up $1 8 million from a dollar perspective from third quarter last year, but represents a reduction as a percentage of sales.
The majority of the increase related to salaries and fringe benefits of $700000 as compared to the third quarter of 2020, and higher legal and professional fees of $400000.
We also started to see an uptick in travel expenses compared to the third quarter of 2020.
These factors resulted in income from operations of $8 9 million in the third quarter of 2021 as compared to $8 1 million in the third quarter of 2020.
On the interest expense side, there was $1 5 million in the third quarter of 2021 that is up from $1 2 million in the same quarter last year in connection with the refinancing of our credit agreement in the third quarter of 2021, we amortized the remaining deferred financing cost.
Costs associated with our prior credit agreement. This resulted in $820 charged to interest expense during this year's third quarter.
This was partially offset decreases in both LIBOR the company's spreads on its credit facility driven by EBITDA improvements and the overall reduction in our outstanding debt balances versus last year's third quarter. We.
We had a provision for income taxes of $1 5 million in the third quarter of 2021 compared to a benefit of $1 1 million during last year's third quarter. The benefit in the third quarter of 2020, primarily resulted from federal tax law changes related to guilty and the expiration of statutes of limitation on certain tax.
<unk>.
Earnings per share for class eight was.
Was <unk> 44 per share in the third quarter of 2021 as compared with earnings of <unk> 57 per share in the third quarter of 2020.
Earnings per share for class B shares was earnings of 47 per share in the third quarter of 2021 as compared with earnings of 61 per share in the third quarter of 2020.
On a non-GAAP basis, which excludes certain unusual and other nonrecurring items.
For our class a shares for 48 per share in the third quarter of 2021 as compared with earnings of <unk> 58 per share in the third quarter of 2020.
On a non-GAAP basis EPS for class B shares were earnings of 51 cents per share in the third quarter of 2021 as compared with earnings of $62 <unk> per share in the third quarter of 2020.
Shifting over to some balance sheet items, our cash and cash equivalents balance at September 32021 was $62 million a decrease of $23 million from December 31 2020.
During the first nine months of 2021, we made net payments of $16 $8 million in connection with the acquisitions of RMS at Eos $4 3 million of net payments towards our outstanding debt balance and used cash for capital additions of $4 2 million.
Dividend payments of $2 4 million and interest payments of $1 7 million. These items were partially offset by $7 2 million in proceeds received from the sale of various properties.
Accounts receivable were 86 million as of September 32021, as compared with 71 4 million at December 31, 2020 the primary.
The driver of the increase related to the higher sales volume in the third quarter of 2021 as compared to the fourth quarter of 2021.
<unk> 2021 acquisitions of RMS and Eos also contributed to the increase in AR from year end accounting for $3 million to our receivables balance at September 30.
Days sales outstanding was 54 days at September 32021, an improvement from 57 days at December 31, 2020 and.
Inventories were $128 2 million at September 32021 up $28 million from December 31, 2020.
The increase was seen in raw materials and work in progress.
Was and was largely due to increased raw material purchases to accommodate our higher backlog of orders as well the inclusion of $2 6 million from 2021 acquired companies.
Accounts payable were $57 6 million at September 32021.
That is up $17 8 million from its level at December 31 2020 the.
The increase in AP was in line with the heightened purchasing volume of raw materials. During the first nine months of the year. In addition, the 2021 acquired companies accounted for $3 4 million of this increase from year end level.
Both total outstanding debt balance was $112 5 million as of September 32021, a decrease of $4 3 million since December 31 2020.
We had previously announced a refi that was closed on September 2nd there resulted in overall lower interest rates and spreads while eliminating all fixed principal payments and with that I'll turn the call back over to Dan Dan.
Thank you Farooq Catherine at this time, we'd like to open up the phone line for questions people might have.
Thank you if you'd like to ask a question. Please signal by pressing star one on your telephone keypad.
Ladies with Speaker phone. Please make sure your mute function is turned off to allow the signal to HR equipment.
Again that is star one to ask a question.
We will now take the first question from Theodore O'neill.
Health Research. Please go ahead thank.
Thank you congratulations on the good quarter.
Okay.
So.
I'm not sure I heard this right did you say there is $10 million of sales that get.
Pushed out of Q3 Theyre going to go into Q4.
Yes.
That's why we have not been restated basically it was material shortage.
Also logistics.
And then finally.
Some customers push back orders because they didn't have all the components.
Todd.
Do you have any.
And our customers.
Closed recently due to Covid.
None throughout the world Okay.
Now historically your fourth quarter has been down sequentially from third quarter and revenue is this push out of the $10 million enough to make it.
Not seasonal this year.
I'm going to let Bruce answer that question.
So I would say Q4, historically has been obviously lower sales versus Q3.
Really more about workdays available holliday's ordering patterns and just come up.
Some of the things are outside of our control. We certainly have the orders for it to be similar to levels to Q3, obviously, assuming you get the materials and so on so I think so.
To sum it up historically, yes little bit weaker we have the orders it just depends on how much we can actually get out assuming we get all the materials. Okay that makes sense. Thanks very much.
We'll now take the next question from Jim Ricchiuti at Needham <unk> Company. Please go ahead.
Thanks, Good morning.
Couple of questions.
You alluded to the price increases and I just wanted to go back to.
Some of the comments you made I think last quarter, where you said that.
Modest amount of the <unk>.
This increase was realized I think you said around 15%, but you thought the remainder.
Would be realized Q3 and Q4. So just curious how is that playing out the way you thought are you still seeing that.
Bulk of the increases kind of split between Q3 and Q4.
I would say I would say, yes, we do have you, maybe 10% to 10% to 15% of the customers that do have yearly contracts with us.
And some of those fall into next year.
But I think it's our goal that all pricing should be implemented.
By the end of this year.
Excluding that 10% of customers.
Yes, maybe one thing I'll just also.
So maybe just to build up of what Dan said.
Paul what do we put the price increases earlier this year. It takes a while for it to work through the system and obviously the world has continued to change and evolve as you think about all things cost. So this is definitely something we are monitoring on a case by case basis, but we'll definitely keep a close eye on it to see any further action is needed.
Got it yes, yes.
Yes, John Jim.
What <unk> said.
Looking at our pricing on a quarterly basis.
Every six months not every year. So we really are trying to stay on top of it.
To make up the difference if the difference between the price increases that we are facing.
Got it and I'm wondering how you're dealing with your own supply chain issues.
You are obviously dependent on suppliers.
For various components are you are you experiencing any kind of a deed commenced from any of your suppliers that might be.
Might be exacerbating your manufacturing and deliveries.
Absolutely yes.
That could be different suppliers.
IC manufacturers I think theres, a lot of hanky panky going on where some of our suppliers, even though we have orders on the books we've committed deliveries.
Someone might come in and try to buy.
Our artist Thomas.
It's a constant battle, we face every day and so far we've done a pretty good job managing it but that's definitely.
I would say it is definitely we see the permits.
Decommit weekly and we tried to address is based on our leverage and the relationships, we have with our suppliers, but definitely we see it constantly.
Is there is there.
Potential that the.
The magnitude of the impact that you called out for Q3 that $10 million.
It's replayed in Q4 does it does it get any worse in this environment. It sounds like you could have a situation where you have.
This kind of impact supply chain, just kind of rolling from one quarter to the next I'm not sure how to think about this.
I would I would tend to think that way again.
Maybe using $10 million as a barometer just because we never had this type of history before.
And we don't have a track record of this type of push outs.
Actually go with I'd say, probably will grow another $10 million that's.
Next quarter, but no.
Things change so rapidly.
It's a marketplace that we have for a long long time.
And again.
Mostly with some of the documents and then you throw in the logistics and the labor situation like who we think you can't find labor in China.
These are the valves we.
We face, but again I think thats why most customers have been pretty aggressively laying out their orders.
Give us strong visibility so we can make substantial substantial commitments that we couldnt make in the past.
That last question and I'll, just jump I'll jump back in the queue, but I'm just wondering you've called out now a couple of quarters, where you're seeing some recovery in commercial aerospace.
Yes, it's off.
On a low base, given how how that market has fallen.
But what I'm wondering is is how we might think about that business in 2022.
Are you anticipating.
That there could be a decent recovery that.
It is more meaningful revenues next year and commercial air.
Group.
Sure Yes.
Yes, so I think the way we would think about it is there is a there is a.
Strong ramp up quite frankly, a pretty steep ramp up that we're going through right now.
And as we scale our business up obviously.
Obviously introduces also your challenges, but I think we're pretty bullish on.
The build rates that are going on in the broader market.
I think too.
Our commercial.
Aerospace I would say from a bookings perspective.
North of roughly around 700%.
So it's.
The steep rise in but I think we're very bullish on that.
Yes, I think so I understand that we should get back to normal levels.
By the end of 2023 is that correct.
Does that is our best guidance at a Gaza four correct.
Okay.
A way to think about what normal is in terms of it because the business has changed a little bit and I'm just not sure it could be it sounds like it could be a fairly meaningful revenue event.
I think pre COVID-19.
So I can answer that one so pre COVID-19, our commercial aerospace business and this is just direct this is not what let me go through distribution.
Within the ballpark of call it $5 million per quarter.
And we've seen that.
Dipped down to around the $2 million mark per quarter.
Over this past year. So there is.
Quite a bit on the revenue side.
For a rebound there.
Got it. Thanks. Thank you. Thank you.
Congratulations on the quarter.
We'll now take the next question from Hendi, sometimes.
Gabelli from please go ahead.
Good morning, Dan Farmer Oak and Lynn.
Dan.
I'm wondering whether we can characterize bel fuse that is benefiting from.
Customers.
Like scrambling to get their parts, including like Bellevue products.
No I think again I think everybody is scrambling for products from toilet paper.
Two everything so I think anybody who's supplying anything today.
Having the largest visibility and creating substantial demand what makes us exciting with the new post COVID-19 world with people working from home more and the type of communication they needed to do properly.
The EV market, we really are playing some strong markets that are generating a lot of growth.
Got it.
So it is.
And then on the press release.
But areas like refresh.
Bel fuse will repress.
It's growth and operating strategy plans.
Any more color Ross.
No I think again.
Yes.
Been a 70 year old family run somewhat company and I think the board is taking a very aggressive stand of how we want to move the company forward and I think with.
With the roof, the young CFO coming aboard a lot of good ideas and a lot of energy.
I think the board is looking for him to re energize the <unk>.
Company and take a hard look at every part of Bell.
How we can improve it.
I think again I think it's a very exciting.
Hi, Mike Bell of how we move forward and prove to be a major catalyst to make that happen.
And then Dan.
How do you envision the path towards supply chain normalizing in the later part of 2022.
Assume that the inventory in the channel is also lower than normal so it will take a while but I'm wondering whether you can share.
Some insight into what kind of guideposts that we should be watching.
I think the guidepost. We know is generally we always said, we never had any visibility but from everybody. We talk to you in the industry, they're all saying that.
The supply get back from 45 weeks down to 22 weeks. They are all predicting this.
Ended the second quarter.
<unk>.
Somewhat more normalized now I don't know if it will go out 45 weeks and 12 weeks to 22 weeks, but I think everybody is confident.
So the lead times should be dropping by the end of the second quarter of next year.
And I think maybe just to build off of that in India as well, that's a little bit of a nuanced question and the reason being is we obviously play in various end markets and so we're going through a fundamental transformation right. So <unk> being one of them.
And all things electrification for example, so.
So Dan commentary.
There'll be some that don't.
It will ramp up more like the commercial air we just talked about as well and maybe some we see a little bit of a loosening up also I think that mix and diversity that we have embedded should position us well for when that day comes.
Got it and then farnell.
Are we at a point, where the pelikan share the magnitude of cells to E mobility.
Okay.
Let us let us maybe think about that and the reason is just it.
It's the from a tracking perspective, it's something that we're trying to trying to have a little more clarity on and just the way it's selling.
But we hear you hendi.
Well, we want to put that out there at some point, but I think right now we're just working our way through it and want to make sure that a clean number out there.
So let us get back to you on that unless.
Dennis.
You had I think we need to.
To get a little more I think that's definitely our Peru project.
Okay.
Recurring sales on E mobility, if that would be yes, okay.
Hendi ill caution that we may build on that later, there's a couple of more things that we've got a <unk>, but this is kind of just clear ones. If you will.
Alright, so in the third quarter of F. 'twenty, one E mobility sales were $3 9 million and that compared to one 8 million in last year's third quarter.
Okay.
And then Glenn on final do you have.
Year over year organic sales growth, including <unk> $12 4 million.
Sales contribution from alright, and in the U S.
Okay.
Year over year organic.
Sales growth so that you can.
Just drop at RMS Nielsen that would be the number.
That's right.
I see okay 12.
$12 4 million.
That's it. Thank you and then a great performance in Q3, all the best for Q4.
Thank you so much.
Thank you we will now take the next question from Mike Hughes.
SGS capital. Please go ahead.
Good morning, Thanks for taking my questions first I wanted to follow up on the pricing discussion you.
Gross margins were pressured by 230 basis points year over year in the just reported quarter, so assuming that.
The cost side stays the same from from where it is right today.
Do you recover that margin degradation by one Q 'twenty two or is it is it further out than that.
Okay.
Yes so.
So it's a good question as Dan alluded to.
Some customers are kind of 30 day hour notification somewhere 60, some are annual contracts, but putting all that aside for a minute.
As we look at Q4, barring any kind of cigna.
Significant fluctuation FX, we should be.
On a similar path to Q3.
We just showed for this year, obviously Q3 last year had some noise in it from some of the Covid subsidies and do the things that we've talked about it and understanding that just the nature of the business, where the backlog kind of the backlog that we're working and burning off here in Q4 is kind of effectively priced in so when we think about pricing there will be a little more forward. So I.
I think we will see some give us some of the reactions and actions, we're taking we will see some of that.
Start to trickle into the first quarter.
Okay.
I'm, sorry, just to back that up.
Number one.
The major focus of everybody in the organization.
Since Peru come aboard its really to look at our margins.
Every area, we can do to improve our margins going forward.
It's a commitment throughout the whole organization to reevaluate how we do everything.
Assesses and so forth.
It will improve to where we have to get to.
Okay and are you on FIFO, our LIFO accounting.
So we utilize standard cost.
And then in Ventura County.
Okay and then what is your long term operating margin goal.
Have you put one out there.
We don't have guidance on that.
Just given overall, we don't we don't provide forward.
Guidance here.
But we know we want to be north of where we're at today.
Okay. Okay, and then you made a comment and I know this isn't unique to your company, but you made a comment about.
Tracking rolling electrical blackouts in China. So can you just speak to.
If that impacted your production or your suppliers productions in the third quarter and when the impact started to occur and if youre still seeing it.
Yes.
It hasn't it hasn't impacted our suppliers and ourselves.
Some of US who have generators governments as you can't use the generals, but what we have been able to do.
Is manage it by overtime, so we shut down Monday Tuesday, the workers, who works at a Sunday.
So far in our supplies have been flexible is just the concern that's been spreading.
To all of our investors and people ask us.
What's going on with blackout and generally we've seen it in the summer or pre Olympics when they want to address the smog issue in China.
They do change their policy and how they want it.
Ron the situation.
At this point in time, it's something we've seen but it hasnt really affected our topline and bottom line growth.
Okay. Okay, and then just last question.
SG&A and R&D costs.
Can we take the third quarter and just extrapolate that into the future.
Barring a big.
A ramp in revenues is that fair enough.
Yes.
That's fair.
I think with more.
Erez.
Seemingly everything is just more on any.
Inflationary environment and everything is costing more but I think just on average it should be a little more status quo.
Okay. Thank you very much.
Once again as a reminder to ask a question. Please press star one on your telephone keypad.
We'll now take the next question from Edward <unk> private.
Private Investor. Please go ahead.
Yes. Thank you.
Couple of questions Dan could you address.
Your utilization and capacity for your.
Company in your plants, what is the total capacity and what percentage of utilities utilization are you at now.
I would think the majority of our factories are running full tilt and.
And most of them are scheduling all the time to get as much as we can out of the factory within the limits of the labor laws of that country.
So I don't think we have many factories.
Running at seven years, 60%.
I think we're running pretty hard now we are looking we do a lot of manufacturing for one product group or magnetic product group.
Looking to build a new facility in China.
Validate our operations, there and give you some added space.
But at this point, we would generally use over time.
Got it.
The means of capital investment.
Like the <unk> transaction in January where you move your equipment into your Minnesota facility.
If that <unk> build this increases would you have to increase the space in Minnesota.
No.
Most of that we had additional space and we have we had added $5 to 10000 square feet.
You are to our building or at least just came due.
Do like six months ago. So we have space, but that is tend to be a highly automated production processes.
A lot of stamping of molding equipment, which are very expensive.
For that.
Get high output you have to run those operations.
Seven days, a week 24 hour shifts and that's out of the company, we acquired with doing it.
So again, we were able to still hauling a lot of it in and just added Midland space.
Another question.
Please go ahead, let me just back up.
So we bought the company. They went out they were at a current run rate of about 20% of what they did in the pit.
So again, we have a lot of utilization of equipment.
Yeah.
As you know.
That ramp up and build up over the next two or three years.
And your Magnetics business do you have any concern about the.
Supply for a rare earth minerals or what is your need for minerals.
Well not that much.
We do have copper.
On wire.
Generally while average wire in plastics and metals, but we don't really have.
Concerns about rare Earth.
Yes.
And on the <unk> on the magnetic side, we're doing all we do use that rights and so forth, but it has not has not been a problem yet.
I think we looked overall I think our number one problem from a material standpoint is dealing with.
The large ICEE.
IC companies.
And getting Ics in on a timely manner.
Last question and a follow up on Mike's question on the R&D. The R&D has gone from 5 million to five and a half and five nine is that a good thing is that that could indicate new products are coming for next year in the European.
Yeah.
I think the.
Maybe maybe I misunderstand the question, but if the question is are we confident in where we're spending our dollars to get good NPI out there. That's a good return on the managed services.
Yes, I think as we're looking to focus the business with focus on margins. It's just really more of a refocus and realignment of our R&D efforts. So I think where we sit today.
We're we're feeling good with what we have we add strategically where it needs to be but I think we're just shifting our focus a little bit.
To be a little more focused.
Okay Alright.
I think the question is it looks like you had a substantial increase in R&D.
After new product, but I think a lot of the increase came from the FX.
That's right Dan.
A lot of our R&D.
Staff, the engineers are in China, and in Europe, and with the strengthening renminbi and euro.
Over the past year, especially since Q3 last year.
Yes.
The same local costs translate into much higher USD.
Wasn't adding more people I think.
The major question you were asking.
Similar to that yes, that's right. Thank you very much I'll go back to the queue.
That concludes today's question and answer session I would now like to turn the call.
October.
Catherine.
And then you just wanted to confirm if anybody has any more questions one more time.
Of course, if you'd like to ask a question. Please press star one on your telephone keypad.
There are no further questions I would like to turn the call back to you.
Thank you Catherine and thank you everybody and taking time out of your business scheduled to speak to US today. We appreciate your time.
Yeah.
Appreciate you investing about I hope you have all have a nice weekend.
That concludes today's call. Thank you for your participation you may now disconnect.
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Good day and welcome to the Bel Fuse, Inc. Third quarter 2021 results Conference call. Today's conference is being recorded and at this time I'd like to turn the conference over to Dan <unk>, President and Chief Executive Officer. Please go ahead Sir.