Q3 2021 Charah Solutions Inc Earnings Call
[music].
Good day and thank you for standing by welcome to the show our solutions third quarter 2021 earnings call. At this time all participants are in a listen only mode. After the speaker's presentation. There will be a question and answer session to ask a question. During the session you will need to press star one on your telephone please be advised that today's.
The conference is being recorded.
You require any further assistance please press star zero.
I'd now like to hand, the conference over to your Speaker today, Steve Brown, Vice President of legal affairs, and corporate Secretary of isolation.
Thank you operator.
Everyone and thank you for joining us today, we appreciate your participation in our third quarter 2021 earnings call and we look forward to sharing our prepared remarks and answering your questions.
We hope you've had a chance to review the press release, we issued yesterday after the market close.
If not you can find the press release as well as a supplemental investor presentation. You may follow during our prepared remarks on the investors section of our website at www Dot shara dot com or IR <unk> com.
With me today on our call are Scott Sewell, President and Chief Executive Officer, and Roger Shannon, Chief Financial Officer and Treasurer.
Following their prepared remarks, we will conduct the customary question and answer session.
Before we begin I would like to remind you that remarks regarding Charlotte solution.
Statements that are forward looking statements within the meaning of the private Securities Litigation Reform Act.
These forward looking statements are subject to risks and uncertainties that could cause actual results to be materially different from those disclosed in our earnings releases and conference calls those risks include among others matters that we have described in our earnings press release as well as in our filings with the Securities and Exchange Commission, including the quarterly report.
Our Form 10-Q and our.
<unk> annual reports on Form 10-K, we disclaim any obligation to update these forward looking statements except as required by law.
During this conference call, we will refer to certain non-GAAP financial measures, we provide reconciliations to the nearest alcohol GAAP measures in our earnings press release and supplemental presentation again. Thank you for joining US today now I would like to turn the call over to Scott Sewell, our president and CEO Scott.
Thanks, Steve and good morning, everyone. Thank you for joining us for our earnings call today.
We have had a very successful year to date with excellent progress and capitalizing on opportunities for significant new business with.
But 2021 already setting a new record for awards, we are optimistic about the remainder of this year as well as our continued market opportunities.
During the third quarter, we continued to execute and ramping up new project or advancing our ERP projects we.
We maintained a strong safety and operational record during a challenging environment, resulting from the COVID-19, pandemic and a tight labor market.
Our financial results for the quarter reflect this performance as.
As you hopefully saw in our press release last evening, we now expect to be in the upper half of our initial 2021 guidance ranges for revenues adjusted EBITDA and adjusted free cash flow and have adjusted these ranges accordingly.
During the quarter, we were pleased to complete a debt financing that provides us with significantly more financial flexibility.
A much improved maturity profile and lower cash debt service requirements than the previous arrangement.
We believe this new structure together with a new credit facility that we announced yesterday will be beneficial in growing our business.
This morning, I'll briefly review our progress this quarter in winning awards and advancing our projects.
I'll also update you on our bid pipeline and our ESG initiatives.
Roger will then review our financial performance during the quarter and year to date provide additional detail on recent financing initiatives and address our revised 2021 guidance.
Beginning with New awards.
Through early November we have received $805 million of new business Awards, which.
Which exceeds the record level of $715 million for all of 2020.
The total this year to date includes approximately $140 million of New awards received since our second quarter earnings call in August.
These recent awards included three remediation projects for a long standing southeastern utility customer.
And byproduct sales and marketing contracts with two mid western power companies, one of which is a new customer for sure.
Our ability to continue to add new customers and New awards with our power generation partners speaks to the essential nature of our services and the reputation experience and resiliency of our industry leading team.
Notwithstanding the excellent results already this year.
A strong potential to exceed the $805 million by year end.
We still have more than $2 $6 billion of pending proposals with some expected to be decided in the fourth quarter. So most will not be awarded until 2022.
We have also identified nearly $7 billion of opportunities across our businesses.
We are optimistic about the prospects for converting some of these opportunities into additional new business that will further add to the predictability of our revenue stream and layer on growth well into the future.
Based on market data as well as our discussions with existing and potential customers. We expect that 2022 will be a robust year for bid activity with more solicitations expected as well as larger project sizes than we bid on this year.
As the partner of choice for solving our customers' most complex environmental challenges.
As an industry leader in quality safety and compliance we are ideally situated to help utilities and power generation companies deliver on their impoundment closure requirements and needs.
The regulatory environment continues to be favorable for our business.
As we have discussed on previous calls there continues to be significant activity at a number of states as they move toward a more prescriptive approach to the means and methods of Ash pond remediation at the federal level, we believe that the environmental protection agency under the button administration will accelerate its efforts on rate.
Little requirements.
Beneficiary issue guidelines and ash impoundment closure deadlines, which could result in additional market opportunities for sure.
For example, the EPA expected to publish sometime this month a proposed rule addressing facilities that were closed prior to October 2015, which are viewed as still presenting a recognized environmental concern.
This could include impoundments, where landfills, where coal combustion residuals are interacting with the environment or where there is wastewater generation that is impacting the environment.
Following a public comment period this rule for legacy facilities could become effective in late 2022.
We also see potential additional market opportunities for our byproduct sales business.
We're recently enacted infrastructure legislation could increase the demand for concrete this.
This legislation provides for an investment of one two trillion dollars.
Over a multi year period, and the infrastructure and transportation systems, including bridges and roads airports rail transit port.
And electric vehicle charging stations as well as broadband water and energy systems.
As you know <unk> serves as a highly attractive economic and environmental alternative to Portland cement and the production of ready mixed concrete and concrete products.
Turning to an update on our businesses our ERP services business continues to be a compelling one stop solution for our customers looking to address the environmental and economic challenges associated with retiring older or less economically viable fossil generation assets.
At our Gibbons Creek project in Texas, we achieved a major milestone by completing a planned implosion in demolition of the plant in October.
Remediation efforts at the project continues to progress on plan and below budget.
We expect remediation of the ash and <unk> to be substantially completed by year end with work on remediation landfill still ahead as planned.
Demolition complete we expect scrap sales to accelerate in the fourth quarter and continue into the year ahead.
We are also nearing completion of Purcell redevelopment and expect partial sale activity to pick up in early 2022.
We are looking forward to our acquisition of the Avon Lake plant in Ohio, when the plant ceases operation in April of next year.
We will assume responsibility for demolition of plant and environmental remediation and sustainable redevelopment of the site as we are doing it Gibbons Creek.
Cited about the opportunity to support the citizens and government of the city of Avon Lake to Repurpose this property for public use and enjoyment.
We are very pleased with our performance at our ongoing ERP projects and we continue to believe that <unk> possesses unique competitive advantages and benefits for our utility customers compared with other alternatives.
Your T represents an area for significant growth and profitability and we continue to devote resources to expand these opportunities.
And our remediation and compliance business work is progressing on schedule and on budget on several large projects in the southeast.
Including a coal ash reclamation project for Dominion energy and two long term ash pond closure by removal project for another south eastern utility.
The first phase the Dominion project is expected to be substantially completed by year end with an expected ramp of second phase beginning in 2022.
We also began work on three new Ash pond remediation contracts that were awarded recently by the previously mentioned south eastern utility customer.
Next I'd like to touch on our ESG initiatives as we've indicated previously sustainability is at the heart of our business, we practice resource conservation and recovery through the beneficial recycling of coal Ash Ash impoundment closure services and remediation and redevelopment of land for community and commercial.
Use.
These activities reduce greenhouse gas emissions decreased landfill disposal can serve national resources and protect our waterways.
And our inaugural ESG report issued earlier this year, we laid out 2021 objectives in several key areas. We are on track or ahead of plan with respect to these goals.
A few examples in the area of safety, we have maintained our excellent safety record with zero loss time injuries. This year to date.
And a total recordable incident rate of <unk>, which is below our goal of four 6% or lower.
We are pleased that our safety performance was recognized this year with several awards for construction safety and employee safety.
In terms of environmental we have increased both the number and quality of site audits and inspections with site team environmental compliance inspections, nearly doubling since 2020.
Year to date, we have not received any notices of violation or notices of deficiency.
We are also on track to remediate or Redeveloped sustainably, 90% of land owned.
Such as Pepsi Brookhaven, BC Cobb and Gibbons Creek sites.
I would also note that our new credit facility with JP Morgan Chase Bank.
As a sustainability linked loan with potential for pricing and fee reductions tied to the achievement of our ESG goals.
On a one and five year basis.
Before turning the call over to Roger I would like to thank our dedicated <unk> solutions employees, who are working every day to help our customers ensure service reliability and to address their environmental and recycling needs.
We remain committed to keeping our people safe supporting our customers and growing our business.
With that I'll turn it over to Roger Shannon our CFO.
Thanks Scott.
I'll continue with a review of our financial results and provide an update on our cash flow balance sheet liquidity and revised 2021 guidance.
As Scott noted I will also address recent financing initiatives that we were pleased to complete this quarter.
Before reviewing our third quarter and year to date results I would like to remind you that the accounting treatment for our ERP services is different from our three other lines of business.
Profit and loss results for <unk> services are captured in two lines on the income statement.
Gains on sales of property and equipment net and other operating expenses from <unk> services.
Thus the ERP business is not included in our revenues or our gross profit that is included in operating income and adjusted EBITDA.
I'll start with our third quarter 2021 results.
For the third quarter revenue increased $21 million or 33% to $84 2 million as compared to $63 1 million for the third quarter of 2020. This increase was primarily driven by an increase in remediation and compliance services revenue from the commencement of new project work.
Partially offset by a decrease in fossil services revenue due to project completions byproduct sales were slightly lower than the year ago period due to the dissolution of our joint venture Ash ventures LLC in the second quarter of 2021 and decreases in international Ash supplies.
Other SCM.
<unk> from increases in shipping rates, partially offset by increased plant production as utility customers production recovered from the COVID-19 dip and the effects of the 2020 Hurricanes.
Gross profit increased $1 1 million or 13% to $9 4 million as compared to $8 3 million for the third quarter of 2020.
This increase was primarily driven by an increase in gross profit from our remediation and compliance services from the commencement of new project work, partially offset by a decrease in gross profit on our fossil services due to project completions.
And on our byproduct sales due to the dissolution of our ash venture LLC joint venture in the second quarter of 2021.
Gross profit as a percentage of revenue declined to 11, 2% for the third quarter of 2021 from 13, 2% for the third quarter of 2020.
The decrease was primarily attributable to the dissolution of our joint venture and Ash ventures LLC earlier this year.
Net loss attributable to <unk> solutions decreased to $2 5 million or 60% to $1 7 million as compared to $4 $2 million for the third quarter of 2020.
The decrease loss was primarily due to a decrease in impairment expense.
Gains on sales of property and equipment net resulting from the commencement of operations at the Gibbons Creek project.
Again on a CRO settlements.
And the increase in gross profit as previously discussed.
These positive drivers were partially offset by a $7 $1 million reduction in expense from the exploration of our purchase option liability on our structural fill sites that benefited 2020, but did not reoccur in 2021.
Other operating expenses for <unk> services, and a decrease in income from equity method investment.
Adjusted EBITDA increased $3 5 million or 50%.
The $10 $4 million as compared to $6 9 million for the third quarter of 2020.
For the nine month period ended September 32021, our results were as follows.
Revenue increased $33 1 million or 20% to $199 8 million as compared to $166 7 million for the nine months ended September 32020.
The increase was primarily driven by an increase in remediation and compliance services revenue from the commencement of new project work, partially offset by a decrease in byproduct sales and a decrease in fossil services revenue due to project completions.
The decrease in byproduct sales was primarily due to a decrease in supply from international sources.
Increases in shipping rates and the dissolution of our ash venture LLC joint venture in the second quarter of 2021.
Partially offset by increased plant production as previously mentioned.
New ash sales sites.
Gross profit increased $3 5 million or 19% to $22 million as compared to $18 4 million for the nine months ended September 32020.
The increase was primarily driven by an increase in gross profit from our remediation and compliance services from the commencement of new project work, partially offset by a decrease in gross profit on byproduct sales due to the dissolution of our Ash ventures LLC joint venture as previously mentioned.
And on our fossil services due to project completions.
Gross profit as a percentage of revenue was essentially unchanged at 11% for 2021 period versus 11, 1% for the 2020 period.
Net loss attributable to <unk> solutions decreased $14 9 million or 68% to $7 1 million.
As compared to $22 million for the nine months ended September 32020.
The decrease loss was primarily due to the absence of expenses associated with amending our credit facility in 2020.
Gains on sales of property and equipment net.
In other operating income for <unk> services, a decrease in impairment expense a gain on a sales type lease from an ERP project.
The previously mentioned increase in gross profit and a gain on a CRO settlements.
These favorable drivers were partially offset by $7 $1 million reduction in expense from the exploration of our purchase option liability.
Our structural fill sites that benefited 2020, but did not recur in 2021 as I previously mentioned Andy.
And the absence of $6 $9 million of income from discontinued operations net of tax recorded in the comparable 2020 period.
Other operating expenses from your T services and a decrease in income from an equity method investment.
Adjusted EBITDA increased $13 8 million to $26 4 million as compared to $12 6 million for the nine months ended September 32020.
Now turning to our cash flow.
Operating cash flow was negative $8 $2 million for the quarter, a decrease of $9 9 million.
From positive $1 $7 million in the comparable 2020 period.
The decrease was partially attributable to noncash adjustments to net loss and changes in working capital.
Adjusted free cash flow was negative $6 5 million, a decrease of $6 $8 million from positive $300000 in the comparable 2020 period.
The decrease was primarily attributable to the decrease in operating cash flow and an increase of $2 2 million in capital expenditures, including $1 $4 million of demolition cost at our Gibbons Creek <unk> project.
These changes were partially offset by an increase of $5 $3 million in proceeds from the sale of property and equipment, including proceeds from scrap sales at our Gibbons Creek <unk> project.
For the nine months to date operating cash flow was $2 million, a decrease of $8 9 million from $10 $9 million in the comparable 2020 period.
The decrease was primarily attributable to noncash adjustments to net loss, partially offset by the absence of discontinued operations and its net working capital requirements.
Adjusted free cash flow was $40 million, an increase of $32 million from $8 million in the comparable 2020 period.
This increase was primarily attributable to $34 $9 million of cash and restricted cash from the Gibbons Creek <unk> transaction and an increase of $9 $4 million in proceeds from the sale of property equipment, including the proceeds from scrap sales at our Gibbons Creek <unk> project.
These changes were partially offset by a decrease in operating cash flow as previously discussed and an increase of $3 5 million in capital expenditures, including $2 $4 million of demolition cost in our Gibbons Creek ERP project.
Before reviewing our quarter end balance sheet and liquidity I'll address the financing initiatives that we undertook this quarter.
In August we issued $135 million of eight 5% unsecured senior notes with a maturity of August 31 2026.
We used the net proceeds from this offering of $123 $1 million after debt issuance costs together with the $13 million of proceeds from an equity issuance to b Riley to repay all loans and borrowings outstanding under our credit facility and revolver, which totaled 126.
$6 5 million.
Following this repayment the credit facility was terminated.
The letters of credit outstanding under the revolver at termination, where cash collateralized with the proceeds from a $17 $9 million promissory note, we issued to B Riley effective with the closing of this financing.
This refinancing provides us with greater financial flexibility relative to the credit facility as the notes did not have financial covenants.
We will not be required to comply with the net leverage and fixed charge coverage ratios on a quarterly basis as we were under our previous credit agreement.
In addition, the notes are bullet maturities and thus did not require amortization of principal prior to maturity. Unlike the credit facility.
Interest expense on the notes is comparable to the level, we incurred on the credit facility, but.
Cash used for debt service is lower on the notes as there is no amortization of principal.
With a 2026 maturity date, the notes improve our maturity profile relative to the credit facility, which would have matured next year.
At September 30, we had cash and restricted cash balances totaling $71 1 million an increase of $41 8 million from December 31 2020.
The increase was primarily due to the receipt of restricted cash from the promissory note.
Gibbons Creek, <unk> transactions and for specific remediation and compliance projects.
Our gross consolidated debt at September 32021 was $176 8 million, which was an increase of $13 million from a $166 million as of December 31 2020.
The increase is primarily due to the B Riley promissory note and supportive outstanding letters of credit.
And an increase in equipment loans and capital leases, partially offset by the net activity, resulting from the termination of the credit facility and proceeds from the offering of senior notes.
Subsequent to the end of the quarter as we announced yesterday, we closed on a new credit agreement with Jpmorgan Chase Bank.
The credit agreement provides for a four year senior secured revolving credit facility of up to $30 million plus.
Plus an additional $5 million of capacity that is available for letters of credit which are supported by cash collateral provided by the company at our option.
Availability under the credit agreement is subject to a borrowing base calculated based on the value of certain eligible inventory accounts receivable and equipment at the company.
We are not subject to any financial covenants under the new facility and less liquidity falls below a minimum level in which case, we would be required to ensure that the fixed charge coverage ratio as defined in the credit agreement is not less than 1.0 to 1.0.
We do not expect to draw under the new facility, although we do intend to reissue and replace existing letters of credit under the new facility.
Upon re issuance and cancellation of the existing letters of credit the cash collateral securing the existing letters of credit will be released and will be used to repay the $17 $9 million promissory note b Riley in full.
On a pro forma basis that would result in a $17 9 million reduction in both gross and net debt levels as of September 30, as well as a $17 $9 million reduction in restricted cash.
Our liquidity at September 30 consisted of our unrestricted cash of $22 million.
This was reduced from the prior quarter, because we terminated our credit facility in August as noted.
On a pro forma basis for expected availability under the new J P. Morgan facility liquidity at September 32021 would have been approximately $34 million.
I will conclude by addressing our revised 2021 guidance.
As Scott noted based on our strong financial performance this year to date and our outlook for the fourth quarter.
We now expect to be in the upper half of our initial guidance ranges for revenue adjusted EBITDA and adjusted free cash flow.
Our revised guidance is as follows.
Revenue of 280 million to $300 million as.
As compared to the previous range of 260 million to $300 million.
Our net loss attributable to <unk> solutions, Inc, a $5 million to zero, which is unchanged from the previous guidance.
Adjusted EBITDA of 37 million to $40 million as compared to the previous range of $35 million to $40 million and adjusted free cash flow of $35 million to $38 million as compared to the previous range of 33 million to $38 million.
I'll make a couple of observations for you to keep in mind with respect to the guidance.
Our adjusted free cash flow guidance is 35 million to $38 million.
<unk> for the first nine months of the year were $40 million, which implies that we expect the fourth quarter to be modestly negative.
This expected outcome is primarily attributable to the timing of cash inflows and outflows at our Gibbons Creek <unk> project.
Recall that we had $34 $9 million of receipts of cash and restricted cash when we close this transaction in February of this year.
The cash outlays for demolition and remediation ramp up over the balance of this year and continue into 2022.
Of course as parcel sales at Gibbons Creek began that will further improve adjusted free cash flow.
Our adjusted EBITDA guidance is $37 million to $40 million.
As you May recall, we had a $5 $6 million gain on a sales type lease from an ERP project in early 2021.
That transaction actually closed on December 30, <unk> of last year, but the gain was not booked until early January of this year.
Because of the required accounting treatment for the <unk> transaction. The gain was not included in revenue, but it is included in adjusted EBITDA.
And thinking about our EBITDA progression from 'twenty, one to 'twenty two.
$5 $6 million should be backed out of this year's results.
As we have previously discussed earlier in the year.
The gain was noncash so it did not affect operating or adjusted free cash flows for 2021.
Lastly, as we discussed in our previous calls our guidance is based on certain assumptions, which are discussed in more detail in our earnings release.
With that I'll turn the call back to Scott.
Thanks Roger.
And in closing we hope you agree that our growth in contract awards and expansion of our service offerings and our laser focus on environmental sustainability will continue to position. The company for long term success, we remain committed to enhancing long term value and positioning ourselves to take advantage of the expanding market opportunities while continuing to strengthen.
<unk> our balance sheet.
Importantly, we are closely aligned with our power generation partners, environmental remediation and sustainability initiatives, which should provide <unk> solutions with significant growth potential for many years to come.
Thank you again for your interest and participation with that operator, let's begin the Q&A session.
At this time, if you would like to ask a question press star one on your telephone keypad again that is star and the number one for questions. We will pause for a moment to compile the Q&A roster.
Your first question is from the line of Brian Butler with Stifel.
Good morning, Brian Thanks for taking the questions.
Let's just start on on the awards you had another really strong awards year to date and the 805.
I guess, yes.
You outlined you have $2 6 billion of pending bids and another $7 billion of opportunities.
What's the right way to think about opportunity our expectations for awards going into 2022, I mean is this the potential for another record year or do you see as kind of.
We hit the peak now it is going to start to kind of.
Come down a level.
Yes, great.
Great question, Brian Obviously, we're very excited about having.
Now three years in a row of record wins.
At $805 million right now year to date in 2021, which is a great accomplishment for the team.
I think kind of as you think about the future and you think about it.
The commentary that we had in the prepared remarks relative to that pipeline and that pipeline building.
We've got $2 $6 billion in pending bids right now.
Other potential $7 billion come.
Coming after that.
And I believe.
Just.
It kind of the way we laid out in our prepared remarks.
We feel that there will be.
Some wins here.
In the back half of it in Q4 of this year, but really.
The bigger potential is for some some good things to happen in 2022.
Again, we haven't we haven't finished our budgeting or anything else for next year.
But I think as always we want to we want to we want to grow we will always want to.
Continually improve.
Our goal is going to be to.
<unk> 22.
Another record year.
That's going to be our challenge and our goal to our teams here and we think the opportunity is out there and it's just up to us to close on it.
Okay. That's helpful. I mean on that $2 6 billion of attending are those all awards that should be awarded in the fourth quarter 'twenty, one or sometime in 2022 are there any ones that could drag out.
Beyond that.
Theres always a possibility that some drag out and I think the way we framed it.
Earlier was what we think.
Maybe some will something will happen in Q4, but the vast majority.
We will be in 2022, and then some slip into 2023 kind of per the typical cycle, but I would say if you think about that two six.
Our portion of that will come in 2022.
Okay.
Hi.
I guess, let's switch over to embarrass source.
We didn't talk about that too much on the call can we just get an update on where that stands and maybe expectations in the fourth quarter and what youre thinking about going into 2022 for that for that product line.
Yes.
Great question again, Enviro source Youre right, we didnt speak too much to it.
So many other great stories to talk about.
It would be.
What we did with the credit facility and kind of shoring up things there and the other new awards as.
As well as adjusting guidance, but.
<unk> continues to be a primary focus of ours, we are closing in on the <unk>.
Contract.
To install.
And hopefully have that be able to announce that early in 2022.
And then.
As we look we look forward to the future. There is definitely other opportunities out there to get additional viral sources on the ground over the next several years.
But I would I would remind you once we get the contract takes about a year to install and start generating revenue so even with announcing <unk> in early 2022 would not have any impact on the.
Kind of R 22 outlook would have more impact on 2023, but there's still getting great reception out there from from our customers and ready to put one in the ground.
Okay.
Does that opportunity kind of going forward I guess in 2022 and beyond how does that compare to the $7 billion opportunity.
On the other part of the business.
It's.
So I think the way, we think about that as we have inside of that $7 billion.
There may be a few that we've kind of targeted.
But kind of outside of that $7 billion, we definitely have aspirations for more.
Multiple others to put on the ground as we move forward, but.
So it's kind of.
One foot in one foot out on that one there.
Okay, and then when you mentioned the credit new credit facility.
Could you give some color on what's the current rate on that facility and what's the potential range dependent upon the ESG.
Performance.
Sure Roger you want to touch on that yes.
Really happy with this this facility with JP Morgan and spin up.
Very.
Gratifying for us to be able to refinance starting with the $135 million of bonds that have eight 5% coupon.
The ABL facility is priced at LIBOR plus 225.
I don't think Thats, an excellent rate for that.
The.
ESG linked incentive would be.
A reduction a slight reduction in the facility fee.
As well as a reduction in that plus $2 25 spread based on the annual achievement of these goals.
There are.
Like you said the prepared remarks the goals are.
Lined with the goals already set forth ESG report.
And the opportunity.
This is up two five basis points per year.
<unk> reduced from plus 225 to $2 20 based.
Based on the movement of those goals.
Alright, perfect and one last one for me on capital spending expectation is and therefore that 2021 guidance and how should we think about capital spending for 2022.
You've probably seen that.
The notes to the Q that we did add some capital leases.
Ordered over the course of the year.
Directly related to.
Roger.
As announced this year.
Okay.
Kind of talk consistently last quarter as well as disciplined in that.
Financial flexibility that we've gotten from from our refinancings.
We expect to see some benefits from.
The way that we're able to finance on that.
Okay.
We did have.
An increase in the second half of this year, we obviously haven't put out guidance for next year, yet, but we've kind of talked about.
<unk>.
Somewhere in.
$15 million to $20 million range.
Capex not including virus source next year.
Perfect. Thank you very much for taking my questions.
Thanks, Brian.
<unk>.
Again, if you would like to ask a question press star one.
Again that is star and the number one if you would like to ask a question.
There are no further questions I will turn the call back over to the speakers.
Great. Thank you operator, and thank you everyone else, we really appreciate everyone's time and continued interest in <unk> solutions and look forward to speaking with you again next time, when we report out on on full year.
20.
From 'twenty one sorry.
But more importantly on this veterans day, we'd like to recognize all of our employees that have served our country and thank you.
Everyone and all the veterans all over the country.
For their service over the year. So thank you and we appreciate everybody's time.
Ladies and gentlemen. This concludes today's conference call you may now disconnect.
Okay.
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Yes.
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Sure.
Uh huh.
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