Q3 2021 L B Foster Co Earnings Call

Good day, ladies and gentlemen, and welcome to L. B Foster's third quarter 2021 earnings conference call.

At this time all participants are in a listen only mode.

Later, we will conduct a question and answer session and instructions will follow at that time.

Everyone should require assistance during the conference. Please press star zero on your telephone.

As a reminder, this conference is being recorded.

I would now like to hand, the conference over to Stephanie Let's walk. Thank you. Please go ahead.

Thank you operator, good morning, everyone and welcome to L. B Foster's third quarter of 2021 earnings call. My name is Stephanie with Schwab, the company's Investor Relations Ms. Chen, our president and CEO, John Castle, and our Chief Financial Officer.

We'll be presenting our third quarter operating results and market outlook and business developments. This morning.

The company's corporate controller is also joining us this morning.

Well start the call with John providing his perspective on the Companys third quarter performance and updating you on significant business and market developments.

We will then review the company's third quarter financial results. John will then provide an overview of the Companys recently completed comprehensive strategy reassessment. We will then open the session up for questions at the conclusion of Don's remarks.

Today's slide presentation, along with our earnings release and financial disclosures were posted on our website. This morning and can be accessed on our Investor Relations page at L. B Foster Dot com.

Our comments this morning will follow the slides and the earnings presentation.

Some statements, we're making are forward looking and represent our current view of our markets and businesses today, including comments related to COVID-19. These forward looking statements reflect our opinions only as of the date of this presentation.

<unk> undertakes no obligation to revise or publicly release the results of any revisions to these statements in light of new information, except as required by securities laws.

For more detailed risks uncertainties and assumptions relating to our forward looking statements. Please see the disclosures in our earnings release and presentation.

We will also discuss non-GAAP financial metrics and encourage you to read our disclosures and reconciliation tables provided in today's earnings release.

Our accompanying earnings presentation carefully as you consider these metrics.

For the purpose of helping you understand the underlying performance of the company, we will be referring to adjusted EBITDA. Adjusted net income adjusted diluted EPS net debt and adjusted net leverage ratio during the presentation today as reflected in our reconciliation tables included in the appendix to the earnings.

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Additionally in September of 2020, we announced the equity sale of our Iowa Test and inspection services Division as a result of this divestiture, we have presented the test and inspection services business as a discontinued operation, including within the earnings release and presentation and have recast prior periods to reflect this change.

She will be focused on our results from continuing operations further in September of 2021, we announced the asset sale of our piling products division due to the nature of the sale. We have presented the piling products division within continuing operations in our financial statements, but we have adjusted certain metrics.

If you did in our presentation slides to reflect the sale for purposes of an even comparison.

So with that let me turn the call over to John Thank you, Stephanie and Hello, everyone and thank you for joining us today.

I will start the presentation with a company overview on page three of the presentation materials and highlight that our core L. B Foster is a company focused on building today's infrastructure.

You'll hear more about this as recover aspects of a reasonably complete complete the strategy.

Virtual Investor day scheduled for mid December.

But the key takeaways from the coffee will review perspective is that we are global solutions provider of engineered and manufactured products and services that build and support infrastructure.

Starting on page four let me provide you a few updates on the initiatives that we were able to accomplish in the third quarter, which I believe has helped to lay the groundwork for driving growth over the next several years.

I'll also discuss some of the market conditions, we are currently experiencing.

First we were able to complete our comprehensive strategy reassessment I led this process using an external consultant.

In all we spent six months leveraging the insights of the business leaders and industry experts inside and outside the company to establish a vision and strategy that we believe will increase shareholder returns over the long term.

One of our strategic outcomes versus the vascular piling products business, which we have completed just over a month ago. This transaction freed up significant amount of capital that we intend to redeploy through our businesses with stronger competitive position and more attractive and growing markets.

This transaction resulted in approximately $24 million proceeds with $23 million received during the quarter and the remainder anticipated to be received in Q1 of 2022.

We recorded a gain of approximately $3 million on that transaction.

We retained all pre closing liabilities associated with the division. We also began pre closing receivables, which we expect will provide additional cash upsides to the transaction.

A second step we completed to position the company to have ability to execute our strategy was the revision of our credit facility, which we completed in August of this quarter.

This revised agreement provides more capacity extends the maturity for additional two plus years and provides more accommodating covenants and lower interest costs.

The credit agreement coupled with the proceeds from the <unk> divestiture positions us for continued investment in organic growth opportunities as well as the ability to execute on bolt on bolt on acquisitions, and the rail or free cash product space as they may come available from a market perspective, we arent colors, some challenges with inflation.

With impacting raw material cost and putting pressure on wages, we are taking pricing actions to mitigate the impact and expect to take more.

But it's difficult to offset all of the inflationary effects driving some erosion of margins in certain parts of the business.

In addition, like many industrial companies were experiencing supply chain disruptions as well as lingering COVID-19 related effects.

Specifically, our supply chain is experiencing headwinds, including delays in inbound raw materials and components. We continue to navigate through these challenges and to mitigate the effects on our margins where we can.

In the rail segment.

Our outlook for North America for freight and transit remains optimistic in the longer term today, however, depressed ridership levels continue to adversely impact our sales of some of our rail products we offer.

We expect that the coding the measurement business lines, which primarily serves the midstream energy market to remain weak despite rising energy prices.

Is the lack of investment in energy infrastructure continues to persist.

We're not projecting any meaningful recovery in this business unit from current levels for the foreseeable future and expect to continue to adjust the cost structure of this business have appropriate.

Setting aside the midstream energy market, we're seeing new infrastructure projects in plants.

Excluding activities associated with the divestiture of the piling business, our new orders increased by almost $20 million compared to Q3 of 2020.

Investments in transportation General infrastructure projects are progressing well always continue to investing in operational improvements and recent spending bills in United States, providing additional support for our served markets with the potential for the pending U S. Federal infrastructure Bill to provide additional uplift.

Bill will cover the financials in more detail with you shortly but I wanted to briefly touch on our results for the quarter as you'll see on page five.

Our revenues increased by approximately 10% over Q3 of last year included a number of positive developments among them.

A 56% increase in rail segment sales.

From our core rail products and increases in field services, particularly in the UK, where service work on the London Crossrail project continue to ramp up during the quarter. After many months of delays due to colder discretions.

In addition, the infrastructure solutions segment grew modestly over Q3 of 2020 due to the strength of our fabricated scale in precast concrete caused business units.

<unk> set the lingering impacts of midstream energy market.

Consolidated gross profit also increased compared to prior year, although the coatings and measurement business continues to be a drag on our results.

Additionally, I touched on earlier inflation and supply chain pressures impacted our margins in the other businesses in the quarter.

I am pleased with the new order activity during the quarter rail had a particularly strong quarter with $84 million in new orders, excluding piling activities. The infrastructure solutions segment was up over $4 million with a pre cast concrete orders up.

36% over Q3 of last year.

Our backlog continues to be very robust, finishing at a healthy $232 million.

Excluding the backlog related to the piling business. This would represent an increase of over $20 million compared to September 32020.

I'll also note that our precast concrete business is hitting at near record levels with backlog up 43% over September 30th.

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Our balance sheet continues to be very strong.

Utilizing some of the proceeds from piling divestiture.

We're able to reduce our net debt to $26 million at the end of the quarter.

With that as an overview I would like to turn over the call to Bill and then cover the financials in more details.

Bill.

Thanks, John and good morning, everyone I'll begin my review covering the third quarter results on slide number seven.

As a reminder, our piling business was divested at the end of the quarter and is not being treated as a discontinued operation.

Quarterly the amounts presented include the piling business results unless otherwise noted.

As John mentioned third quarter sales were $131 million up 11, 7 million or nine 9% over Q3 of last year.

We realized a modest increase in gross profit on the improved sales while the 17, 1% gross profit margin was 150 basis points down from last year, which I'll cover in more detail shortly.

Third quarter, selling and administrative expenses increased by $3 million or 17, 5%.

$3 $1 million, primarily driven by increased personnel costs as well as costs associated with our strategic transformation initiatives.

Selling and administrative expenses as a percentage of sales increased to 15, 4% up 100 basis points from the prior year quarter.

Third quarter net income from continuing operations was $2 $2 million or 21 per diluted share.

<unk> to $16 $6 million or $1 56 per diluted share last year.

Adjusted net income from continuing operations for the quarter was $200000 or <unk> <unk> per diluted share.

Paired to $1 million or 9% per diluted share last year.

Adjusted EBITDA totaled $4 4 million in the third quarter, a decrease of $3 million compared to Q3 of last year, driven primarily by the increase in selling and administrative expenses.

I'll now cover our segment performance for the quarter reflected on slide number eight.

Third quarter rail segment revenues increased $10 million year over year with the increase primarily attributable to an increase in new rail deliveries and a modest uptick in our European operations during the quarter due in part to easing operating restrictions primarily in the UK.

Infrastructure solutions segment's revenues were up $1 $7 million.

The increases in revenues in both fabricated steel and precast concrete business units.

Revenues have increased in these businesses in line with improved demand and greater infrastructure project activity levels.

Partially offsetting this increase was a decline in the coatings and measurement business, which continues to face a challenging environment in the midstream energy market due to excess pipeline infrastructure capacity and lack of new investment.

<unk> segment gross profit increased by $1 million year over year, driven by the sales volume in the third quarter of 2021.

However, the rail gross profit margin declined by 140 basis points due primarily to product mix variation in the business year over year, coupled with escalating input costs in the business.

Infrastructure solutions gross profit declined $800000 from the prior year quarter, primarily driven by a $1 $3 million decline in coatings coatings and measurement margins.

This decline also drove the 180 basis point erosion versus the segment gross margin compared to last year's third quarter.

I'll now turn to our year to date results on slide number nine.

Year to date revenues were $407 million compared to $381 $8 million last year, representing an $18 $8 million increase or four 9%.

Gross profit decreased $6 1 million from the prior year comparable period, and the 16, 8% gross profit margin for the year to date period was a 240 basis point decrease from last year.

I'll provide a little more color on the revenue and gross profit performance in a moment.

Selling and administrative expenses totaled $57 8 million, a $1 $6 million increase or two 8% with the increase primarily driven by professional service costs, including expenses related to our comprehensive strategy reassessment that John will be covering.

In a few moments.

Selling and administrative expenses as a percentage of sales in the current year to date period decreased to 14, 4% down 30 basis points from last year's comparable period.

Year to date net income from continuing operations was $3 $9 million or <unk> 36 cents per diluted share compared with $23 $5 million or $2 21 per diluted share last year.

Year to date adjusted net income from continuing operations was $1 8 million or <unk> 17 per diluted share compared to $7 $9 million or <unk> 75 per diluted share last year.

Adjusted EBITDA totaled $15 $5 million in the first nine months of 2021, a decrease of $9 $6 million compared to last year.

Given primarily by the decline in gross profit in the infrastructure solutions segment.

Higher selling and administrative costs and favorable onetime items realized in the prior year period.

Cash flows used for operations totaled $6 $8 million year to date compared to $16 $2 million in cash provided by operations last year.

Collecting the increased working capital needs with the recovery of sales volumes, including safety stock purchases related to our current supply chain volatility.

Coupled with the lower operating margins, primarily in the infrastructure solutions segment.

Year to date capital expenditures declined to $3 6 million versus $7 $7 million last year.

Capital spending this year, primarily relates to the expansion of our precast concrete business line in Texas and expenditures for our ongoing.

Alimentation as we continue to progress toward retiring two legacy ERP systems.

We completed our Boise, Idaho implementation in Q3, and we have two additional locations coming up on that in Q4.

We estimate total annual capital spending at approximately $4 million to $6 million or approximately 1% of sales.

Okay.

I'll now circle back to our segment performance for the first nine months of 2021 on slide number 10.

Year to date rail sales increased by $19 8 million or nine 5% compared to last year with the sales increase primarily driven by more robust demand and favorable operating conditions in our primary rail markets. This year.

Year to date infrastructure solutions sales decreased by $1 million or 6% compared to the prior year period.

The decline was wholly attributable to the coatings and measurement business with a $28 $6 million decline in revenues driven by unfavorable conditions in the midstream energy market.

Both fabricated steel and precast concrete businesses had meaningful sales increases totaling $19 6 million and $7 $9 million respectively.

Rail segment gross profit increased by $2 9 million or seven 2% over the prior year period.

The increase was primarily driven by improved volumes in our friction management and contract services product categories during the period.

Segment gross profit margin of 19% declined by 40 basis points year over year on 10% higher rail products sales.

Infrastructure solutions gross profit decreased year over year by $9 million or.

Or 27, 3%.

The decrease was primarily attributable to the lower sales volume in the coatings and measurement business with gross margins down $11 $7 million versus last year.

As a result infrastructure solutions gross profit margin declined 510 basis points.

Our liquidity and credit metrics are shown on slide number 11.

Total available funding capacity defined as our available capacity under our revolving credit facility plus our cash was approximately 103 5 million at quarter end.

Up from both the beginning of 2021 as well as September 30 of last year.

The improvement was due in part to the additional capacity under our revolving credit facility, which was amended and extended on more favorable terms during the quarter.

Net debt was $26 million on September 32021.

Compared to $39 $8 million last year, a reduction of approximately $13 $8 million over the last 12 months.

Our adjusted net leverage ratio for the trailing 12 months period is one two times.

We received approximately $23 million at closing for the piling divestiture, which was used to pay down our debt balance.

We're anticipating further debt reduction during the fourth quarter due to a seasonal reduction in working capital needs as well as our assumption that there will be no significant new restrictions related to the pandemic and continuing improvement in end market conditions.

Also we are still anticipating approximately $8 $5 million in income tax refunds, however, IRS processing timelines or extended well beyond historic levels and the $5 $3 million refund filed four remains outstanding.

We would like to believe this refund will be received in 2021.

But it may slip into next year.

An additional $3 2 million in federal tax refunds, we will file for as soon as the $5 $3 million is received.

We remind everyone that we have approximately $78 million in federal net operating loss carryforwards available that will substantially lower our cash tax burden in the future.

Slide 12 provides a breakdown of orders and revenue by segment over the last five quarters.

This information includes our piling business in all periods presented.

In the third quarter total orders were $138 $9 million compared to $130 5 million last year with the increase driven by the rail segment.

Excluding new orders related to the piling business order activity was up $19 6 million compared to the third quarter last year and $12 $2 million on a sequential basis.

Total orders in the third quarter were the highest level achieved since Q4 of 2019.

Our book to Bill ratio of one <unk> for the trailing 12 month period continues to trend favorably.

On slide number 13, youll see that the consolidated backlog, excluding the piling business stood at $229 $8 million as of the end of the third quarter.

An increase of $24 million compared to September September 30 of 2020, and $13 6 million compared to December 31 of 2020.

While the rail segment backlog increased slightly as compared to September 30 of 2020.

Construction segment backlog improved $19 $7 million over the last year, driven by the precast concrete products business unit.

As you can see our backlog remains robust at pre pandemic levels and our order rates trending are trending favorable both sequentially and year over year.

We remained focused on managing the operational challenges and supply chain issues, we face as we begin to execute our strategy, which John will cover next.

Thanks for the time and I'll turn it back over to John.

And still at the beginning of today's presentation. We discussed <unk> cluster is a company focused on providing products and services to build and support infrastructure.

As a result of our recent comprehensive strategic assessment, we defined at the underlying businesses in our portfolio is either growth or long term platforms. As you will see on page 15.

Today, we have a number of stable business that generate cash. These businesses may have limited topline growth potential, but we will continue to support other businesses with greater growth opportunities.

We'll refer to these businesses as our returns business.

We're also determined we have a number of businesses that we believe have greater growth potential by using technology and scale.

Great a larger market presence primarily in the rail space.

These businesses bring value to our customers by creating more productive assets enhancing operating efficiencies, making customer activity safer and more reliable and providing a more environmentally friendly profile by reducing the carbon footprint.

We will refer to these businesses as our growth businesses.

Our returns and growth businesses add value and together form the very solid stream board for creating shareholder value.

The growth platforms, we will receive a more significant allocation of vesting.

These are the businesses that we believe can maximize shareholder returns and have the market headroom for sustained growth.

As part of this assessment, we're realigning our management structure.

Correcting SG&A spending to enable the execution of the strategy.

Our goal is to transform the company to a more innovation focused provider of products and services to build and support infrastructure.

We believe these actions will translate into higher returns on invested capital and increase value for our shareholders.

You'll hear more about our strategy at our virtual Investor day in December.

On page 16, we are showcasing new and pending legislation that applies to our businesses both.

Both our precast in North America, real business, which have identified as having growth potential should benefit from increased spending on our national parks transit operations and freight rail.

A federal infrastructure Bill also has the potential to provide a further boost to our businesses as it relates to transportation rail and bridge rehab work.

On page 17, we continue to see signs of improving demand and investment in our primary served markets as we will translate to longer term growth.

For our business.

However, the global supply chain shock.

Sherri pressures labor shortages and lingering COVID-19 related disruptions are likely to remain a near term headwinds.

As I mentioned earlier the coding to measurement business is expected to remain weak. Despite rising energy prices is a lack of investment in energy infrastructure persists with no meaningful recovery expected for the foreseeable future.

The current inflationary environment is expected to continue to pressure margins. He's inflationary conditions are prevalent across the business, including labor wages.

In addition, we expect disruptions in raw materials labor availability supply chain.

Service partner resources to continue to 2022.

Continue to be vigilant in our actions to mitigate impacts of inflation and disruptions where possible.

Despite the present operating challenges we remain optimistic in the longer term prospects of our business order rates continuing to grow with an accelerated pace and some of our some of our business areas. Our backlog continues to rise and sales stands well above pre pandemic levels.

While global transit ridership remains depressed relative to historical levels. They have improved over last year and finally, the market need for environmentally friendly solutions enable operating efficiencies for our customers is stronger than ever.

We are transforming our business by investing resources in these core capabilities, which will translate into growth margin expansion and improved returns overtime.

We will be covering our strategy in greater detail at our Investor day planned for December 14th.

We believe it's an exciting time for L. B Foster as you can see on slide 18 from a market point of view, we have a strong value position.

Coupled with energized leadership team focused on it and actionable plan to grow our businesses and attractive core markets, where we have a strong competitive positions with innovative offerings that drive value.

This strategy continues to build on a couple of company's legacy of being a global provider of engineered manufactured products and services that builds and supports infrastructure.

Before I turn it back to the operator I'd like to thank the entire L. B Foster team for their hard work over the past quarter.

The team embraced the market headwinds, including supply chain disruptions impacts from Covid challenging labor market rising prices and the change in seals.

But came together aligned to the strategy that I've outlined I believe now more than ever we are poised to drive shareholder value into the future with our greatest asset our people.

I will turn it back to the operator.

Any questions. Thank you.

As a reminder, Seth question you will need the breasts are one on your telephone keypad.

Again that is star one to ask a question.

To withdraw your question Jess Brent basket.

Your first question comes from the line of Alex Rygiel from B Riley Your line is open.

Thank you good morning, everyone and thanks for taking my question.

Unlike the strategy a lot here and I look forward to a lot more additional information.

On the upcoming analyst meeting.

Wanted to see if you at this point are ready to disclose any sort of organic growth.

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That you may have.

<unk> cash flow targets or anything of that nature.

Hi, Alex Thanks for joining us today, and I'm glad that you and appreciated and got a sense of what we're doing to really understand what our value is in our core competencies of the company and how we're going to drive shareholder return and this now in the future.

We are going to cover this in greater detail on the 14th So I hope you can join that session, but I will tell you we're not.

Not going to be laying targets out today as well as targets on those days other than I think we really have a good appreciation of where the value is going to be coming from and how we're going to underpin the businesses with the return side and in cash generation.

Okay, and then congratulations on that very charged to backlog growth year over year.

I suspect that opportunities are continued to be pretty positive through the month of October so far.

That'd be great, but also wanted to get a sense as to how youre thinking about the margin profile and sort of the new work that was put into backlog.

Whether or not you've been able to adjust your pricing to sort of catch up to some of those inflated costs. Yeah. So again a good question and this these are the areas that we are addressing each and every day.

The divestiture of our piling business was came right out of our strategy.

Our strategy is really one of the first things we need to do because it was not accretive to the overall average margin of the company.

So that's going to put us in a better shape moving forward the growth of the backlog that you mentioned has also been significant and if you take out the piling we have shown a growth of $10 million from Q2 to Q3. So.

So we're going to and I think somewhere around 20 basis points is where the margin uplift is between quarters as well between Q2 and Q3. So we are showing some significant.

Improvements at least.

In our.

Go forward basis, I'm, not going to get into details of that but the.

The mix of business coming our way as more attractive as it relates to growing our margins.

Into the fourth quarter and into next year as well.

Very helpful. Thank you very much.

Thanks Al.

Your next question comes from the line of Chris Sakai from singular Research. Your line is now open.

Hi, good morning.

Chris.

Hi.

I had a question on.

The decline in gross margin just wanted to get your sense on.

If you could sort of quantify.

How much of the decline was due to.

The disruption in the supply chain, how much was from.

Covid related measures.

And how much was from inflation and then if I Miss something how much was from the rest.

Alright, Chris So that's a good question.

Again, as I mentioned earlier with Alex <unk> those are ongoing issues that we're facing each and everyday related to COVID-19 impacts.

The supply chain disruptions moving different components around that we need to do.

I will let bill give you a little more color on what we are seeing.

But I also before we get into that.

Our team here has done a fantastic job.

Everyday coming into a different situation.

Ill be labor or beat inflation or.

The effects of the Covid of keeping things really moving in a very positive light and a 20 basis point improvement from quarter over quarter.

And our position has been really fantastic results, but I'll, let bill give you a little more color on some of the details and make you.

To bring you up to speed on that go ahead, yes, thanks, John and good morning, Chris.

Maybe refer you to slide number eight our Q3 segment results I will just make a couple of comments there.

If you look at the gross profit on a year over year basis.

There was $200000 increase.

The rail segment saw about $1 million increase in gross profit.

Third 40 basis points sequentially.

Year over year deterioration.

That was largely driven by <unk>.

Product mix, a little I'd say more so product mix than inflationary costs impacting the business within our rail.

For that year over year comparison, and as John indicated.

The rail segment actually from a sequential basis point of view was pretty flat.

In terms of gross profit percent from Q2 to Q3. So I mean that shows that we were able to manage the overall business and maintain gross profit percent. Despite those supply chain headwinds that we've been facing.

On the infrastructure side.

A little more of a deterioration that you can see on a year over year basis with the revenue up $1 7 million gross margin.

<unk> were down $800000 on a basis point point of view it was 180 basis points.

You recall the issue that we have on our coatings and measurement business was about a 390 basis point year over year decline in gross profit in coatings in measurement, specifically and I think that the.

Coatings <unk> measurement gross profit declined in the quarter was $1 $3 million. So you can see the balance of the business was higher.

On a year over year basis.

With the sales revenue, which.

We're pretty pleased with but we continue to have that headwind in coatings in measurement and then the last thing I would say is if you just think about the year to date results.

Over on slide number nine we have $18 $8 million increase in revenue.

But a $6 million decline in gross profit if you flip to the next page you'll see that the the margins in our rail business is doing are doing pretty well on a year over year basis down 40 basis points.

Year over year, but nice revenue growth.

But the key takeaway there is our coatings and measurement business. Its revenue is down about 27 $28 million year over year with a margin decline of $12 million. So I mean, it's pretty clear to see that the year over year impact on a year to date basis is driven by coatings and <unk>.

<unk> and we're continuing to monitor that business to make sure we maintain cash neutrality here in the short term.

What the recovery looks like.

Okay, great. Thanks, and then.

You know what.

What are you guys doing to sort of.

Protect against.

Future supply chain disruption.

Yeah, So well first of all were.

Alright.

Get our energy.

Engineering team mobilized so really looking at.

Our supply chain and looking for vulnerabilities related to how many suppliers, we have and where they're located.

So they've done a really nice job of like you would typically do with supply chain looking at costs Theyre looking at.

Assuring that we have the components, we need and we are uplifting some of those components.

And making sure that we have those available in our inventories.

So those are the most important things we're doing is make sure that we have a number of suppliers alternatives.

As well as building up some inventories to make that happen I think bill could give a little color on some of the details we've done there as well, yes, Chris if you neutralize for the piling divestiture that occurred for the quarter Youll notice that there was a pretty substantial increase in inventory in the quarter more than what you would normally expect to see some of that was due to the.

Disruptions that we've had in shipments just because of the ability to get product out the door to customers. But then there's also some element of that which would be us buying material opportunistically to make sure that we have the availability of raw materials to be able to support fulfilling out the backlog.

So.

Those are some of the actions that we're taking working with our vendors on our sourcing arrangements as well as buying a bit more than we otherwise would.

Okay, great. Thanks.

At this time to ask a question. Please press star one.

Again to ask a question please press star one.

Speakers there are no further questions at this time I would now like to turn the conference back over to John Castle.

Thank you Blue and thank you everybody for joining us today.

And please join us on December 14th.

We are going to rollout more comprehensive view of the strategy and really give.

Everybody understanding of not just what the company is today and but more importantly, where we're going into the future. So thanks again, everybody be safe and thanks for joining us today and have a great balance of your week Bye bye.

This concludes today's conference call. Thank you for participating and have a wonderful day you may all disconnect.

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