Q4 2021 BWX Technologies Inc Earnings Call
Ladies and gentlemen, welcome to adopt technology.
Technology.
Fourth quarter 2021 earnings conference call.
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Following the company's prepared remarks, we will conduct a question and answer session.
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I would now like to turn the conference call over to our host Mark Kratz Bwxt's Vice President of Investor Relations. Please go ahead.
Thank you Andrea good evening, and welcome to Bwxt's fourth quarter and full year 2021 earnings call joining.
Joining me are <unk>, president and CEO , and Rob Lemasters Senior Vice President and CFO .
On today's call, we will reference the fourth quarter earnings presentation that is available on the investors section of the BWXT website.
We will also discuss certain matters that constitute forward looking statements.
Men's involve risks and uncertainties, including those described in the safe Harbor provision found in the investor materials and our SEC filings.
We will frequently discuss non-GAAP financial measures, which are reconciled to GAAP measures and those materials that Rex I will turn the call over to you.
You Mark and good evening, everyone before we get into the results I want to welcome Robb Lemasters to his first earnings call as <unk>.
Bwxt's Chief Financial Officer.
Rob was new to his role at our Investor Day, a few months ago.
When many of you met him for the first time since assuming his new role Robert impress me and all of US what is your appetite for detail his drive for continuous improvement and as disciplined stewardship of the company's financial resources.
As the company rolls off a multi year capital campaign and position itself for future accelerating growth.
Rob to focus on driving our financial results from several angles, including managing the glide path downward on Capex and maintenance levels in 2023, improving the efficiency of managed working capital and expanding margins through cost efficiencies and synergies within the company.
We will also assess how we can make small future investments to increase operational effectiveness and modernize operational support functions.
With the completion of two large capital campaigns and our near term focus on streamlined execution BWXT is firmly positioned to layer on new revenue and margin expansion from our growth vectors.
Our first step on that path is consolidating from three operating segments into two new segments will be called government operations and commercial operations.
This new organizational structure and lines up nicely with how we intend to leverage capabilities with each within each segment to more effectively meet customer's needs. We also expect this action to result in meaningful future strategic and cost synergies both for our customers and our shareholders turning now to earnings results earlier today, we reported strong fourth.
Quarter earnings of <unk>, 95 per share or $592 million of revenue wrapping up 2021 on a solid note in an otherwise challenging year.
We finished 2021 with earnings of 306.
Representing modest growth from 2020, So let me give you some color on what challenges we saw before providing a business update on the exciting progress we're making across BWXT.
First and foremost the COVID-19 pandemic persisted, we saw the heaviest impacts to operating productivity during the spikes that occurred in the first and third quarters, we had expected to gain back some efficiencies in the fourth quarter that we had forfeited earlier in the year. However, the unforeseen rapid spread of the Omicron variant limited progress once again, we continue to.
<unk> lingering disruption into early 2022, but we believe things are easing and then we're finally, turning the corner on Covid.
Hard to specifically define the full financial impact of these disruptions, but we estimate that it was well north of $10 million of operating income pressure across the year and Wisconsin traded within our coordinated business, where a majority of our workforce is necessarily onsite to manufacturer of critical components.
As I mentioned on the last call. The other major challenge in the Navy business came from workflow complications related to the installation of new large and complex machinery into operating factories, which itself was it got exacerbated by COVID-19 related supply chain and transportation disruptions and.
Services growth was delayed by the timing of major awards from government customers proving even our conservative estimates to be in hindsight aggressive.
Beyond operational challenges, we had some financial headwinds that express themselves and cash and earnings, namely the beginning of the roll off of Fas Cas pension reimbursements, which runs through segment operating income. Despite all the headwinds we were able to modestly grow earnings and achieve important operational and developmental milestones in an otherwise challenging year we.
Remain focused on executing against our robust backlog and advancing our growth initiatives and 2022 and in the years to come.
And the core Navy business, we are entering the last year of our major capital campaign. So the equipment installation bottlenecks that we experienced in 2021 should begin to abate.
Impressively, the resulting facilities and equipment should leave our flagship business with the necessary capacity to meet the production growth forecasted in the Navy Shipbuilding plan over the next few decades.
With our 2022 Capex budget, we are upgrading our scheduling in cost reporting systems to provide greater visibility commensurate with our investment in capacity. We also believe that if additional domestic demand surface from the U S Navy organically or from the needs of our allies in light of an increasingly contentious global landscape.
We should be able to shoehorn some of some of that into our workload planning systems and enhanced capacity.
On that note and as an update on the Argus nuclear powered submarine task force, we continue to standby as they perform an 18 month assessment of their needs and potential partnerships.
While we don't have any specific update on potential roles for our company. We continue to engage our navy customer and in parallel are performing a self evaluation on the capabilities and capacity that we could offer to support the security partnership.
Beyond Navy work, we are leveraging our category one license to grow the business about a year ago BWXT was awarded a contract from the National Nuclear Security administration to design and prototype demonstration system for uranium conversion and purification I am well.
I'm pleased to report that the project is running ahead of schedule and we look to transition to production and scale the process over the next year or two.
On the government services side Bwxt's joint venture received authority to proceed on the Savannah River integrated mission cleanup contract and we are currently in transition and satisfying all deliverable requirements, we anticipate a fee bearing activity begin in the spring and this long term project is.
It is expected to provide solid EBITDA growth for the business over the course of 2022 and 2023.
Shortly after the Savannah River Award the Department Department of Energy awarded the Pantex and Y 12, MMO contract to another competitor. However, the award was subsequently protested and the Doe has paused the award pending corrective actions ultimately we remain optimistic about the BWXT team's competitive proposal and will await a determination.
From the Department of Energy Lastly, and government operations, we continue to make progress on multiple micro reactor programs. We completed another design review for the strategic capabilities office and we are now in receipt of the RFP for the demonstration phase.
We anticipate that it will be awarded around the middle of the year.
And commercial operations long duration life extension projects continued to progress on schedule and more recently, we've seen positive developments around the long term small modular reactor opportunities in early December , Ontario power generation selected the GE Hitachi.
<unk> solution to deploy at the Darlington nuclear site, which is already licensed for new nuclear build they intend to leverage the strength of the Ontario based supply chain inclusive of BWXT to construct candidates first commercial grid scale SME as early as 2028.
As more provinces of nations Decarbonize, we're seeing renewed interest in nuclear power as a component of Green energy portfolios. Shortly after the <unk> announcement, Bwxt's GE, Hitachi and Santos Green energy announced the intention to cooperate on deploying 10 small modular reactors in Poland by the early 2000 <unk>.
The Tennessee Valley Authority is also exploring the construction of multiple advanced reactors, starting with the GE Hitachi SLR.
BWXT intends to leverage its unique facilities and skilled workforce, which.
Which we are well suited to manufacture a wide range of projects products, including reactor pressure vessels reactor internals and other key nuclear components.
Lastly, I want to provide you with a detailed update on the commercialization efforts for the Tech 99 generator product line as we see a clear path for our submission of our new drug application to the FDA by the end of the quarter all production equipment is installed and commissioned.
All facility modifications are complete and we are operationally ready we completed cold chemistry runs in the fourth quarter and have produced repetitive hot chemistry batches at full scale. This month the results from those from these 700 Curie batches have been positive and are being used to validate our quality control methods.
Which will be integrated into the data package for the FDA.
We utilize the drug substance.
Successfully label, our Tech 99, with the most widely used cold kits in North America also a critical input to the FDA package, we remain confident that such data will support regulatory and commercial market acceptance for the BWXT generator given that our product meets the needs of the pharma pharmacopoeia standards for Tech 99.
Yes.
We also held a formal type b meeting with the FDA a few weeks ago.
We were pleased with the feedback and are shaping our package to drive a high quality submission.
The FDA agreed that strengthening the moly 99 supply chain remains a priority in fact over the last two months. This for agility has been on full display with the shutdown of the <unk> reactor in the Netherlands that supplies, 20% of the world's moly 99 to that end, we intend to request a priority review with our submission to the FDA as a reminder, the.
BWXT product uses targets that will ultimately be irradiated and a power reactor in Ontario, meaning that continuity supply is a highly attractive feature of our offering offering.
So what is left prior to FDA submission in the coming weeks, we will complete testing of the radio pharmacy line.
Following that we will conduct validation and qualification using cold and hot material through the entire production sequence. This is the last component of the testing phase.
Final tasks to complete three registration batches, which entails three runs of hot chemistry through the full process, yielding the data required for a high quality FDA data package.
We remain committed to this exciting nuclear medicine market and expect to build our growth not only through the tech 99 generator line, but also through expansion into therapeutics and contract drug manufacturing enabled by multiple major partnerships some of which we have disclosed publicly.
Finally, we believe that this portfolio consisting of uniquely position defense and commercial nuclear power assets.
Bind with multiple shots on goal provides for our investors high predictability in our core defense and clean energy businesses with growth Optionality and compelling adjacent nuclear markets and with that let me turn the turn the call over to Rob.
Thanks for the kind words of support and good evening everyone.
I agree there is much honing we can do as we prepare for these interesting growth markets to bear fruit after years of investments and strategic positioning under <unk> leadership I look forward to taking on that challenge with an excellent team around me.
Let's start with total company results on slide four of the earnings presentation.
Fourth quarter revenue was strong at $592 million up 6% compared with the fourth quarter last year driven by growth in both nuclear operations and nuclear power segments.
This resulted in about $2 1 billion for the full year as slightly lower nuclear operations revenue was offset by higher nuclear power segment revenue.
Fourth quarter adjusted EBITDA was also robust at $123 million up 18% with EBITDA margins 200 basis points higher than the fourth quarter 2020, driven.
Driven by stronger operating margins in the nuclear power segment, and increasing depreciation in both NRG and NPG.
For the full year, EBITDA was down 2% to $418 million.
This result also included $15 6 million of net <unk> pension headwind or 4% of adjusted EBITDA. So underlying EBITDA would have been up in 2021, despite the multiple businesses business challenges, we face last year.
Fourth quarter earnings were <unk> 95 per share a high watermark for the company and up 28% when compared with 74 cents per share in the fourth quarter of 2020.
I would note that fourth quarter earnings benefited from a lower tax rate that was driven by a state tax reimbursement that had a corresponding negative impact to NRG operating income state.
State taxes are considered part of our cost base in government contracts and this change required a reversal.
Full year 2021 earnings were $3 <unk> per share a modest 1% increase compared with the prior year again. These results include a significant step down in government reimbursed pension costs as well as some of the challenges throughout the year related to COVID-19 and award delays.
We have a detailed 2021 EPS bridge on slide five to provide all of the puts and takes.
Let me quickly step through fourth quarter and full year 2021 segment results on slide six and seven which are reported in the old segmentation.
In the fourth quarter nuclear operations generated $453 million of revenue up 6% driven by higher labor volume and higher long lead material production operating income was $85 8 million also up 6% and <unk> operating margin was 18, 9%.
And the nuclear power group revenue was $114 million up 7% driven by higher fuel and fuel handling and more field service activity on the commercial power side.
Revenues also benefited from higher BWXT medical sales, which were up 15%.
Segment operating income was $23 million up significantly driven by higher revenue and a more favorable sales mix.
Margins were a robust 21.
21% for the quarter.
Lastly, nuclear services operating income was down $2 2 million to $6 1 million on lower contract fees and some higher costs in the fourth quarter.
For the full year <unk> revenue was down about 1% as higher labor volume and incremental revenue from uranium processing was more than offset by lower long lead material production.
Operating income was down 5%, primarily driven by less bad cash income.
But this year's performance was also negatively impacted by productivity inefficiencies that came from capital equipment installation bottlenecks and persistent COVID-19 related absences that we were unable to overcome throughout the year. Despite our best efforts to work overtime and hire additional labor.
Operating margins finished the year at 19%.
Sure.
Nuclear power segment revenue was up 10% on higher fuel and fuel handling and increased field service activity on the commercial power business.
BWXT medical sales were also a driver as that business was up more than 20% this year.
<unk> operating income was down slightly and margins compressed to 13, 1%, primarily driven by less government Covid relief and.
And finally nuclear services finished the year with $27 $9 million in operating income a little higher than last year on better overall contract fee performance.
Before turning to guidance I would like to spend a minute on the re segmentation that rec spoke of earlier.
As you can see on slide eight we are combining the legacy MLG and MSG segments into the new government operations segment.
Our legacy NPG is moving to the new commercial operations segment.
We are eliminating the legacy other segment, which held R&D activity as well as tech 99 pre commercialization cost.
Those costs will be moved to their respective new segments on a project by project basis.
You will recall at our Investor day, we outlined the tech 99 pre commercialization spend as having been running at about $20 million per year of P&L investment in 2021, and our expectation was that it would run a little higher in 2022 before that effort is fully stood up so.
So the unification of those costs was a logical next reporting step to get a full picture of our commercial businesses financial performance.
And as these new growth vectors emerge we will continue to evaluate how to optimize manage and report the businesses.
While we expect some cost efficiencies the main reasons for making this re segmentation where operational and are found in to core opportunities.
As our technical services business grows the transfer and cross training of personnel and capabilities will need to be managed seamlessly.
Unification of NRG and MSG under one roof, we'll provide more cohesive decision making.
Second as our micro reactor and advanced fuel efforts begin to become larger business lines. They can benefit from the facilities and supporting costs already present in other parts of the government operations family real synergies seem highly possible with this new structure.
Moving to 2002.
2022 guidance on slide nine today's guidance closely aligns with our medium term guidance that we established in early 2021, which includes the addition of annual EBITDA growth expectations and EBITDA ranges for the reporting segments.
We have also included cash from operations guidance.
Note that we are providing guidance on the new reporting segments as we affect this transition in the first quarter of 2022.
As we laid out at our Investor Day, we see total company revenue and EBITDA growth of about 3% to 4%. This year, we are reiterating our 2022 EPS range of $3 five.
To $3 25.
We anticipate about $260 million to $290 million of operating cash flow and see our capital expenditures in the range of 180 million to $200 million.
In the business segments, we expect government operations revenue to grow 3% to 4% and EBITDA is expected to be in a range of $400 million to $410 million representing high single digit growth in.
In commercial operations, we anticipate a range of 2% to 6% revenue growth with more of the upside variability around the medical business.
Given continued investment in commercializing the Tech 99 product line commercial operations EBITDA is expected to be $40 million to $45 million.
We have provided other information on this page to support modeling 2020 to expectations.
I also want to provide some color on the cadence for how we see earnings shaping up this year there.
There are a number of business items that are influencing the shape of the year, but by and large not dissimilar to prior years.
First as Rex mentioned and in line with the others are what others are seeing in this industry. We see some pressures from Covid related absences early this year with the omicron variance spike.
Most of its impact manifested itself in an inability to get efficiency gains and labor productivity in our core Navy business. So we expect that part of our business to be a little depressed in the first quarter.
And government operations the transition on Savannah River is occurring in the first quarter and this is non fee bearing work, which is also expected to have outsized earnings in the fourth quarter. When we typically conduct award fee true ups.
And the commercial operation segment, we see increased field service activity in the spring and fall driving higher second and fourth quarter profit and a typical low cycle for medical isotopes in the first quarter due to a regular planned maintenance outage of a large cyclotron, where we generate some product.
All said, we expect about 20% of our annual earnings guidance coming through in the first quarter stepping up for the middle part of the year and finishing strongly in the fourth quarter similar to but not as sharp as the 2021 profile.
On slide 10, we have provided a 2022 guidance bridge.
Since Investor Day, we've made some minor updates to some of the components on this slide.
And core operations. We originally provided a range of 10% to 30 cents of earnings growth in 2022, which was predicated around large potential services awards, we have revise that range to $2 15 to 25, given updates on service contract Awards.
We raised the lower end of that range given that we have successfully begun transition on the Savannah River contract. However, we are lowering the high end of the range given that the pantex Y 12 contract has been pulled back per BOE corrective action ultimately, resulting in a delayed transition.
Besides those items the businesses are largely in line with how we saw it in November .
There has been no change to expected net Fas Cas headwind of $17 million in 2022.
Other below the line adjustments include pension interest expense and tax rate that result in modest headwinds, which are generally offset by a lower share count.
Lastly, I want to wrap up with some remarks on M&A since leading that function for over a year and a half I have taken a close look at several acquisition targets, but many have fallen short of meeting enough of our strategic and financial criteria.
We will remain disciplined in our approach and continue to strongly prefer small tuck ins to our core government and clean energy businesses.
Yeah.
On the other side of M&A, we continuously and unemotional evaluate the current portfolio as we think about the best ways to optimize shareholder value.
While it is an iterative process and circumstances can change we have looked at our businesses and do not see anything that would unlock shareholder value through separation at this time.
We believe that as new growth materializes, the value will manifest in the share price or we will evaluate suitable alternatives.
Now that we've been through the financials, let me just pause and say that I'm very eager to be part of this unique company and to have the opportunity to help drive bwxt's exciting long term durable growth prospects with solid businesses underpinning, our advancements and new technologies, we plan to expand and explore new growth vectors, all of which I believe.
<unk> will create meaningful value overtime with that let me hand, it back to Mark.
Thanks, Rob that concludes todays prepared remarks operator. Please go ahead and open the line for questions.
We will now begin question and answer session.
Ask a question you May press Star then one on your telephone keypad.
If youre using a speakerphone please pick up your handset before pressing the keys.
To withdraw your question. Please press Star then two.
At this time, we will pause momentarily to assemble our roster.
Okay.
And our first question will come from Michael Rollins.
Please go ahead.
Hey, good afternoon, guys. Thanks for taking my questions here.
Maybe.
I guess, either wrecks or Rob.
Can you.
Energy bookings in the quarter for one point basically $1 2 billion can you just remind us what what included in there.
And then.
As part of that booking.
What was sort of contemplated for for inflation and sort of hedging against.
Whether it was a range of raw material costs other sort of input cost do you expect to get the same margins that you historically had on future work here.
Yes, Michael let me.
And good afternoon by the way, let me start with that one maybe flip it over to Rob for a little bit on the materials.
Inflation aspects that was that was an order that related to the prior pricing agreement, which as you know had for Virginia and Columbia.
So we have some growth coming out of nuclear operations this year with Columbia feathering in.
And of course, continuing on the Virginia program. So that was really just a funding that was a funding bookings what that was okay. In terms of how we structure those pricing agreements I think you know that we build escalation in raw materials and labor and.
And protect.
To some extent protect against.
Sort of hedge against inflation by by use of firm quotes from our suppliers.
And to some extent, what we what we plan in the pricing agreement with our government customer maybe Rob you could add some flavor, yes sure on the supply side.
We're monitoring all of what's going on as you are in terms of raw material pricing as you know we sign up these of pricing agreements. We generally have very good visibility on how that schedule is going to play out over multiple years, we have almost three quarters of the materials sort of known.
Sure.
Sizing up these pricing agreements. So then we're sort of exposed to some extent on that remaining quarter, but we are constantly monitoring that we have escalation of our agreements and we try to get as much of that in the door as we can and then monitor that over time and of course as we signed subsequent pricing agreements. If we actually see some sort of escalation I get that a lot.
And we will try to bake that into the next pricing agreement to make sure we're protected adequately.
Got it got it that makes sense and then just shifting gears on the the FDA submission to the Tech 99, I know you guys laid out more of a detailed roadmap at the Investor day, but I guess seemingly the submission has probably slipped here I think you said by the end of first quarter I mean.
Seemingly slipped.
Good chunk, but should we.
Kind of assume that everything you laid out.
In terms of the commercialization and ramp.
Still on track or will this con.
Call It call it a 90 day delay.
Any sort of.
Or create any sort of headwinds on that kind of plan you threw out there last year.
No I feel really good about where we are Michael a few quarters ago. I said that we would expect a submitted by around the end of the year I was deliberately you're hedging a little bit in my language, because we were experiencing COVID-19 things and supplier issues in <unk> and.
In particular, we were having trouble getting texts and from Italy at that time because of Covid issue.
Where it stands right now radio Chem is completely done and we've been doing hot runs as I said in the script here radio farm is completely done and we're doing some integration testing and software testing over there and then the facility modifications are all completely done. So we have this gleaming factory ready to go that we're running product through high product and tagging it to <unk>.
Kids and so.
We are very well pleased with the progress and see very little schedule risk between now and the FDA submission and an even more so more importantly, really as I see no risk about the product quality we've always.
We've always suggested that there's no technological risk here, it's really just about the industrialization of the technology and I maintain that position that's going to be.
Great product for the market.
And we're very close to the finish line.
Got it thanks, a lot guys I'll jump back in the queue. Thanks.
Thanks, Michael.
The next question comes from Bob <unk>.
CJS Securities. Please go ahead.
Good afternoon, and thanks for taking my questions.
Hi, Bob I wanted to pick I wanted to pick up on just on the last comments on the FDA submission timeline.
We are really excited to hear about the hot chemistry running in that kind of stops so.
You mentioned Youre seeking priority review from the FDA could you remind us what that means and then kind of the timeline for incremental questions from them and how it plays out and what gives you confidence you know what the FDA is seeking in this submission given that these.
These things.
Don't happen all the time right so rare event.
Big opportunity, but what kind of insights you have as to what they are seeking and obviously what you are submitting.
Yes, sure. So I'd say, there's a couple of answers to that Bob.
One is we've had a series of meetings with the FDA to update them on our progress on our approach and so they have visibility all along as we go through this development, including this type B meeting.
That I referred to in the script and so they know what we're doing and we know what their expectations are so thats one aspect of it but the other.
Sort of.
Second aspect to it and there's a couple of dimensions to this one is that we have some consultants who have been involved in the FDA approval of radiopharmaceutical medical devices for decades that know exactly what the FDA are looking for and of course, we have our own experience team.
The final point.
On all of this is that there is a there is a published pharmacopeia out there that that has the parameters that the drug must satisfy from a quality control perspective for it to meet the FDA standards and so we had the pharmacopeia we have experts on the outside experts on the inside and we have this running dialogue with the FDA.
Itself and so I don't think anybody is going to be surprised about what we submit and we're certainly not going to be surprised about what expectations. They have on the FDA side of the equation.
Said, a priority review would typically get you an approval timeline in the range of six to seven months something like that.
Unless.
Unless we get a complete response letter and they require additional information, which would extend the timeline, but certainly we're hoping to avoid that by by delivering a very comprehensive and complete package on the front end.
Okay. That's very exciting and then I think you may have touched on this at the analyst day, but I figure I'll just add.
Asking in this context as well obviously a lot of time has passed since you. Originally thought you would be submitting we're getting very close to the submission finished languishes exciting can you talk about how the underlying markets developed during this time period.
Yes, so from your opportunity set and also from a you mentioned something about the Netherlands reactors. So from a competitive supply standpoint, how the market has developed and how you are situated to fit in.
Yes, sure Bob I'll try to try to do that.
So we.
There are other competitors that are developing Molly for four.
For commercialization Shine is a name that you hear a lot shines in a different place in the value chain and we are they are delivering.
The moly itself, we moved up the value chain and are delivering the generator product.
It's kind of a generic offering in the sense that that whatever customer could use their own cold kits with our offering so we're in a little different place in the value chain. I think we're ahead of others that are that are competitors.
And to the market.
Obviously, there are already established players like <unk> and curiam.
And of course, they maintain their competitive position, but their product as I've said from the beginning is based around.
Uranium targets in some cases weapons grade uranium.
And at the very least high assay low enriched uranium Irish uses industrial Molly metal. So we have a non proliferation advantage since ours is produced on a commercial power reactor ultimately we have a continuity supply advantage and then because it is industrial Molly metal.
Very limited nuclear waste stream. So we have waste advantages cost advantages continuity of supply advantages and proliferation risk advantages and all of that makes for a very compelling offering and we believe that the market uptake for the product will be quite strong.
I might also add just to touch on some of the other aspects of the broader BWXT medical as you know in Investor day, we laid out exactly as Rex said that that part of our portfolio. The core product there in the diagnostics area of the market has gotten better in general and we feel good about that overall the business as you know has.
A couple of other exciting opportunities for it.
We still have that exciting core naughty on portfolio, which includes a couple of key products there.
As well as <unk> and that really is doing quite well for us. That's the second sort of growth opportunity that really has panned out well within that portfolio and then thirdly, I think we shared that therapeutics opportunity that we see.
And the related contract drug manufacturing opportunity as it relates to therapeutics and when when you summarize those three markets.
Diagnostics opportunity that <unk> said, the <unk> portfolio and then the therapeutics, we really stand to really have a pretty good.
The outlook for that industry, it's really gotten better and as you know it culminates in kind of those statistics that we put out there of getting to almost $200 million of revenue a couple of years out and $75 million EBITDA across those three business.
Business lines, if you will.
Okay. That's super Thank you so much.
Youre welcome.
Okay.
Once again, if you would like to ask a question. Please press Star then one.
Please go ahead will be re assemble the roster.
Yes.
I'm showing no further questions at this time I will turn the conference back over to Mark Kratz for any closing remarks.
Thank you Andrea Thank you for joining us today that concludes this conference call. If you have further questions. You can reach me by phone at 90, $803 $65 4300 or E mail at investors at BWXT Dot com.
Okay.
The conference has now concluded. Thank you for attending today's presentation and you may now disconnect.
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