Q4 2021 Astec Industries Inc Earnings Call
Good morning, My name is Rob and I'll be your conference operator today.
At this time I would like to welcome everyone to the Aztec fourth quarter and full year 2021 results conference call.
All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session.
If you would like to ask a question. During this time simply press star followed by the number one on your telephone keypad, if you'd like to withdraw your question again press Star one.
Thank you, Steve Anderson Senior Vice President of Administration, and Investor Relations you May begin your conference.
Okay.
Thank you and welcome to the <unk> fourth quarter 2021 earnings Conference call. Joining me on today's call are Barry Ruffalo, Chief Executive Officer, and Becky Weyenberg Chief Financial Officer.
We began I'd like to let you know that our news release and presentation slides are posted for your convenience our website at www Dot Aztec industries Dot com under the Investor Relations tab.
And just a moment I'll turn the call over to Barry to provide his commentary and then Becky will summarize our financial results.
At this point I would like to remind you that our discussion. This morning may contain forward looking statements that relate to the future performance of the company our news release and slide two of our presentation provide additional details.
Please also note we will be referring to both GAAP and non-GAAP information, which we believe will be useful in assessing the company's financial results and now I will turn the call over to Barry.
Thank you, Steve and good morning, everyone and thank you for joining us.
By discussing key highlights from the quarter provide an update on the actions we are taking to drive operational and commercial excellence.
Also share more detail on what we're seeing in terms of demand and current market dynamics before turning the call over to Becky for details on our financial results.
And then we will highlight progress made on our continued strategic evolution and open the call for Q&A.
Turning to slide four the Aztec team continued to see topline growth during the quarter driven by strong market demand as customer sentiment remains positive.
Fourth quarter sales increased 12, 1% compared to last year, we grew backlog to record levels for the fifth consecutive quarter up more than double from the end of 2020.
I continue to be encouraged by conversations with customers as they are seeing robust demand and are eager to receive our industry leading solutions.
Second as we announced the release of preliminary results on February seven bottom line performance in the fourth quarter was negatively impacted by industry wide supply chain and logistics constraints and pandemic related labor restrictions.
I'm disappointed in the overall bottom line results during the quarter I'm proud of our teams continued to supply around operational excellence and adaptability as we executed on initiatives to combat. These headwinds that being said these challenges have continued into the early part of the first quarter of 2022.
We do continue however to realized benefits from several strategic initiatives to mitigate these industry headwinds.
We have been increasing prices to offset inflation proactively addressing supply chain disruptions and onboarding new talent.
Third we remain laser focused on operational and commercial excellence to provide our customers with exceptional value superior service and innovative industry, leading solutions. The positive trajectory. We haven't achieved since implementation of our transformation strategy has positioned our business well for future growth as we continued to build on our strong foundation.
Confident in our team's ability to execute over the long term despite near term challenges that we may face.
Fourth we remain positioned to execute and grow with a strong balance sheet and continued focus on operational excellence, enabling us to continue to operate in a challenging macro environment investing in growth and return cash to shareholders with a consistent practice of paying dividends.
Lastly, our business is well positioned for future profitable growth and to drive long term stakeholder value guided by the execution of our simplify focus growth strategy. This focus provides us with a stable framework to address the near term macro headwinds we are facing.
Turning to slide five.
I wanted to ask Tech business model continues to serve as our North Star. This framework gives our team the tools to navigate industry headwinds, while continuing to enable us to win across the rock the boat value chain.
We are taking actions to improve operations and meet elevated customer demand.
And hiring and training new employees to leveraging our footprint to reduce lead times optimize revenue and managing costs.
We continue driving operational excellence initiatives focused on identifying and validating multiple supply sources to mitigate supply and logistics disruptions.
We saw during the fourth quarter macro challenges across our industry did not abate, but our discipline initiatives lessened their impact and we expect our actions will help mitigate challenges going forward.
I am confident our continued focus on the one asset model will serve us well in the coming year and beyond.
Now on slide six I will review some of the key industry dynamics impacting our business and initiatives, we have in place to capture opportunities and address the industry trends.
As I mentioned in my opening remarks, we continue to see strong demand for our products across both our infrastructure solutions and materials solutions businesses.
Conversations with customers support a positive sales outlook well into 2022 with orders now being placed in 2023, a record backlog reflects continued strong demand for our solutions and we have initiatives in place to expand capacity.
In addition to the current high levels of demand our customers continue to express optimism that future funding from U S infrastructure spending will drive additional growth and we continue to view the federal Highway Bill is a long term tailwind for our business.
We see significant near term demand for our products and we have a strategy in place to augment those market tailwind with incremental organic and inorganic growth initiatives moving forward.
Labor shortages continue to challenge the industry and the impact of COVID-19, and the omicron variant negatively impacted efficiencies.
We believe pandemic related challenges could persist in the near term, but are encouraged by improving trends being experienced now versus in early January our efforts to hire and retain key talent have been successful in growing the AD Tech team with head count up 14, 2% year over year, which I will discuss further in a moment.
Supply chain logistics disruptions, where an increasing concern throughout 2021 can you intensity, we observed in the fourth quarter was beyond levels, we've seen earlier in the year we.
We continued to deploy operational excellence initiatives and leverage our one as their business models increased throughput and mitigate the impact of these challenges we are investing capital for equipment to deliver products more effectively and exploring the expansion of our footprint into low cost territories and.
In addition, as we evaluate attractive acquisitions, we would expect these to provide additional capability as well as capacity improving our ability to serve elevated demand.
Finally, we anticipate higher commodity and transportation and logistics costs to continue across the industry through the first half of 2022.
We are a price leader in the markets, we serve and will implement further price increases as needed to offset higher inflationary costs.
On slide seven we provide an overview of the actions we have taken to address labor shortages, we have four key elements to hire and retain talent.
<unk> targeted recruitment improved engagement and retention practices improve the traction and the use of both internal and external recruiting resources.
As a result of these actions, we increased head count more than 14% in 2021.
We will remain committed to these plans into 2022 as we continue to need more talent to serve our large and growing backlog.
Our people are the key to our success and our ability to maintain our talented and dedicated workforce is vital to enable us to serve our customers and meet their growing demand.
On slide eight we provide more detail on our historical backlog as we achieved our fifth consecutive quarter of record backlog.
More than doubling the levels seen at the end of 2020, we.
We have confidence in the sustainability of our backlog as experience tells us that orders and backlog are rarely canceled our current expectations are that many of these orders will be converted to sales within approximately three quarters. We are implementing several initiatives to increase capacity to meet higher demand such as increasing head count and manufacturing facilities, adding manufacturing engineers to it.
<unk> project management capability investing in capital to expand facility output leveraging cross site manufacturing where possible.
Senior our journey of further automation.
We believe these actions will accelerate the conversion of our backlog to sales and better enable us to deliver and products to our customers at the desired time.
Supply chain and logistics challenges may impact our near term potential. However, the actions we are taking will pay dividends for years to come.
Next on slide nine I would like to update you on our ESG journey by highlighting areas of focus in 2022.
Next year, we will invest in resources to accelerate sustainability initiatives. We are establishing kpis are tracking at assessments for greenhouse gas emissions utility consumption and other material factors.
Cycle assessments on major product categories will further highlight the positive contribution and economic benefits of our product offering.
Also working on our ESG digital footprint kind of sustainable operations guideline playbook for all that tech segments.
Along with these investments and resources, we will continue to advance social initiatives with a focus on employee safety and welfare in addition to diversity equity and inclusion.
Both internally and in our communities.
Lastly, we will maintain sound governance practices the board oversight cyber security protection in auto discipline.
Our ESG journey continues to mature and evolve I remain proud of the progress we've made and excited about the strong foundation, we are establishing for our company's future.
With that I will now turn the call over to Becky to discuss our detailed financial results.
Thank you Barry and good morning, everyone moving to slide 11, we continue to see strength across all product lines with fourth quarter sales increased 12, 1% compared to the prior year quarter of $267 $8 million.
Equipment sales increased nine 8%, while part sales increased 16, 8%.
Domestic sales were up 18, 2% and international sales were down six 8%.
Due to strong end market demand, our growing backlog once again reached record levels, increasing 111, 5% to $766 million at quarter end, driven by higher materials solutions and infrastructure solutions orders, which.
We're up 122% and 105, 9% respectively.
Robust order activity is being driven by rising customer demand and our strong commercial excellence initiatives are positioning us to win new orders.
The macro challenges currently being faced begin to abate our focus on operational excellence will demonstrate our ability to deliver more value added services products and solutions to our customers.
Fourth quarter, adjusted EBITDA decreased 65, 2% to $8 million compared to the prior year period.
Adjusted EBITDA margin decreased 680 basis points to 3% and was primarily caused by increased SG&A manufacturing challenges supply chain disruptions and COVID-19 related employer restrictions the benefits from volume pricing and mix help reduce the impact of higher <unk>.
Inflation.
Adjusted SG&A expenses increased 27% year over year or $9 $9 million, primarily as a result of increased personnel costs related to the centralization initiatives that being said SG&A expenses were in line with the levels reported in the first three quarters of 2021.
Adjusted earnings per share decreased 59 cents to a loss of three cents compared to 56 cents in the fourth quarter of 2020.
And excludes $8 6 million or <unk> 37 cents of transformation restructuring and other costs.
<unk> $5 $7 million of costs associated with our ongoing transformation program.
Our adjusted effective tax rate for the quarter of 350% was primarily the result of the small loss incurred in the quarter.
Our full year adjusted tax rate was eight 9% driven by benefits such as the valuation allowance release in Brazil.
Net R&D credits driven by increased investments in engineering and stock compensation benefits.
On slide 12, we show the key drivers of our year over year adjusted EBITDA margin contraction of 680 basis points the negative impact from inflation was mostly offset by volume pricing and mix.
<unk> for manufacturing, which is usually a benefit it turned into a headwind this quarter due to the macro items mentioned earlier combined with higher SG&A and other expenses, we expect to offset inflation with price increases higher volume and favorable mix as we progress through 2022 and anticipate manufacturing.
<unk> will again become a tailwind moving on to slide 13.
Our infrastructure solutions sales increased 13, 6% to $190 million in the quarter, primarily driven by increased customer demand, particularly in domestic markets, where sales grew 23, 4%.
Equipment sales were up 13% and part sales grew nine 9% segment gross profit decreased eight 6% to $36 $1 million and gross margin decreased 460 basis points to 19% driven by supply chain disruptions COVID-19 related employee.
<unk> and higher inflation net of volume pricing of Nex infrastructure solutions backlog at the end of the quarter increased 105, 9% to $449 $3 million as we continued to see strong and increasing demand for highway construction and road building products across the country.
Turning to slide 14, our materials solutions sales increased eight 5% to $77.8 million compared to the same period, a year ago, driven by increased demand across the product lines and regions with domestic sales up five 3% and international sales up 16, 7%.
Versus the fourth quarter of 2020.
Segment gross profit decreased seven 3% to $16 $4 million and gross margin decreased 360 basis points to 21, 1% due to inflation.
Materials solutions backlog at the end of the quarter increased 122% to $313 $3 million driven by continued dealer restocking at strong market activity.
On Slide 15, we show full year results I will go over the details, but will highlight that net sales grew seven 1% and backlog more than doubled due to strong end market demand.
Adjusted earnings were negatively impacted by the macro factors mentioned earlier.
Turning to slide 16.
We continue to maintain a strong balance sheet with minimal debt and a net cash position of over $131 million.
Overall, we have available liquidity of $281 $9 million, including over $134 million of cash on hand, with only $2 9 million and total debt at the end of 2021.
With virtually no leverage we are well positioned to maintain a strong and flexible balance sheet with ample liquidity that we believe will enable us to withstand a variety of economic situations.
As stated in prior quarters, we will plan to operate in the general range of one and a half to two five times net debt to EBITDA.
Turning to slide 17.
Our disciplined capital deployment framework remains consistent with what we have previously shared.
We follow a targeted capital deployment approach within the context of our long term strategic objectives and related revenue earnings and cash flows in order to maximize shareholder value.
We estimate our capital expenditures will be between 30 and $40 million for the year ending December 31 2022.
Regarding acquisitions, the pipeline remains active and our strategic approach remains consistent with our focus on acquisitions that align with our strategic filters and financial criteria to support our growth pillar.
Importantly, we remain committed to delivering returns to shareholders and have done so through the funding of our dividend.
As we highlighted on our last call in the fourth quarter, we increased our quarterly dividend to <unk> 12 per share.
With that I will now turn it back over to Barry for his closing comments.
Thank you Becky.
Picking up on slide 18.
International business and global growth continued to be a priority for us in 2021 International sales grew 23% and also represented 23% of our total sales we are gaining traction in these markets and we'll continue to do so.
Secondly opportunities to drive growth will continue in our parts and service businesses.
During 2021 part sales grew 10% year over year, reflecting the momentum that we are gaining in this area.
Part sales have consistently averaged 30% of revenue in 2021.
Opportunities related to dealer expansion cross selling strategic accounts and new product development rounds out our organic growth initiatives.
These are long term pursuits, and our dedicated team is working hard to realize our potential.
We're gaining momentum across these areas and I am confident are related to strategic initiatives will drive future profitable growth across our businesses.
I'll conclude on slide 19, with our key investment highlights which remain consistent.
Overall, our team made great progress on our simplify focus growth strategy in 2021 against the challenging macro backdrop, particularly in the fourth quarter.
I am proud of the progress that our team continues to make on our transformation strategy.
We still have a long path ahead of us, but the past two years have demonstrated our team's ability to adapt to changing market conditions and remain laser focused on positioning our organization for long term growth.
Our customers remain at the core of everything we do at <unk>.
And I look forward to continuing on our evolutionary path as we serve our longstanding customers with industry, leading innovative solutions and the best in class service.
We have made a lot of progress as an organization over the past few years and have significant runway ahead of us for growth.
Looking forward in 2022, we experienced a significant drop off in the Covid related labor restrictions, we experienced in the fourth quarter of 2021, along with a spike in January 2022.
Although there is still uncertainty with how the pandemic will affect us moving forward the supply chain logistics issues will have an impact on our ability to deliver products and grow revenue throughout the year.
Teams continue to address these issues on a day to day basis by managing current suppliers certifying new suppliers driving new designed to minimize the impact from the supply base and lean on each other as one asked Dr. Minimize all disruptions.
As I spend time with our customers and events like world of concrete the national asphalt Pavement Association annual meeting the U S comp posting council annual meeting and on the phone day to day I know our markets are strong and our customers have a book of work that takes us well into 2022 with confidence that the demand will be president well beyond the current year we are.
Remain committed to our long term financial targets and I'm optimistic for the future of add Doug is we continue to execute our strategy and confident that we are building a stronger and more agile organization.
Our strategic initiatives and focus on our commercial and operational excellence are driving continuous improvement profitable growth and long term stakeholder value.
With that operator, now we're ready to open up the call for any questions.
At this time I would like to remind everyone in order to ask a question Press Star then the number one on your telephone keypad.
Your first question comes from the line of Meg Dobra from Baird. Your line is open.
Hey, good morning, everyone. It's Joe Grabowski on for Mig This morning.
Good morning, Joe.
Good morning.
We will start with manufacturing efficiencies, obviously, a big swing factor in the quarter from a 200 to 250 basis point benefit in <unk>, and <unk> or 240 basis point headwind in <unk>, how much of the swing was specifically due to the omicron Spike and noninterest Mike has subsided.
How do you think this will look in the first quarter and beyond the first quarter.
Hey, Joe This is very rough low thanks for the question and good morning again.
Yes.
As reported in our pre release.
The impact from the omicron.
Virus and the pandemic in general were really a big contributor to the quarter. We saw that as a matter of fact, we had one site in South Africa actually shut down.
For four months also in addition to the omicron for a countrywide strikes so that was another impact.
For the quarter as well, but back to the <unk>. We saw the omicron cases start to spike really through Q4.
Joe we saw that actually peak.
In the early parts of January of 2022, where we had roughly about 10% of our employees actually had tested positive and that doesn't even take into account. The quarantines that came along with those subsequently Joe I can tell you that.
Today, I think we have a report of three positive cases across the whole company.
Just as you see kind of in a public forum.
It spikes through the end of last year into January and now.
It's basically not impacting us at all so we feel good Joe that as we've been able to build our workforce up over the course of 2021.
To get to that.
A 14% increase in head count as we finished 2021 that ideally.
The issues were dealing with.
Yes, moving forward are not omni crown, but then turned into primarily supply chain and so I don't think we are in any different.
Position other than a lot of other than compared to a lot of companies. Although I would tell you that we've got a great.
Procurement team that's worked hard.
We've got an escalation process that ultimately if I have to get involved I've had many phone calls with suppliers. So it's an all hands on deck situation when it comes to the supply chain.
And so we're managing that pretty proactively as we enter into 2022.
So again manufacturing efficiencies were a benefit in two Q3 Q once we get past the.
The absenteeism.
It's a supply chain that much worse today than it was.
Hey, and <unk>.
Or again once we get pass absenteeism, maybe the efficiencies go back to be in our benefit.
Yeah. So one thing that I am proud of Joe is that as you're pointing out as well when we finished 2020 at around 23.8 or 9% gross margins, we were able to hold that as we went through Q3 of 2021.
And in consideration of the pandemic and supply chain issues I think that was a pretty good feet with all.
All the inflation that we also were impacted with through that same timeframe.
So we believe as we move forward into 2022, Joe we'll start to reclaim that gross margin and have less over.
Less under absorption on the labor front as we move through 2022.
Got it and maybe sticking with the waterfall chart moving over to inflation.
Got 250 basis points worse than the fourth quarter versus Q2 in <unk>, we have seen steel prices come down pretty significantly from the fourth quarter at least.
Spot market I guess, what's the outlook for the <unk>.
Magnitude of inflation as we go through 2022.
Yes, good question, Joe I'll approach it maybe from two different perspectives.
We do see this deal, especially on the coil side of it to dropdown plate hasn't really done that we've got a generally I would say a pretty even mix across our company regards to plate and coil, where we can switch to coil. We obviously have so we're trying to take advantage of that situation as much as possible.
But ultimately as we've said over the last couple of quarters, Joe We see as we move through 2022 that that price cost.
The element that we've been talking a lot about pricing over the last year or so we will start to see that neutralize out in and ideally Joe we started to see some of those manufacturing efficiencies as Becky called out in the script, it's come back and help us offset like they have over the last many quarters. So we feel good.
Is that.
The supply chain issues are.
They were they were about as bad as they could get in Q4, I think that they've been pretty status quo is a veteran in 2022.
So it's a lot of asking that we feel good about the pricing.
We don't see a lot of inflationary pressures on top of what we've experienced although there will be some.
Obviously.
But it's really going to come down in the supply chain in regards to what we're able to get from revenue growth.
And really kind of maximizing the labor efficiencies.
Got it and if I could just sneak in one more quick one.
Head count up 14% in 2021 revenue up 7% when do you expect the increased head count can lead to higher throughput and thoughts on SG&A in 2022.
Yes, I would say that we obviously as you add that for US anyway, Joe that number of people teammates into the company. There is inefficiencies obviously that come just from the training element that we've also been dealing with of course across the course of 2021, if you look at those that 500.
New associates, we've added to the company, it's really been pretty evenly over the last three or four quarters that we've added those so we should start to see some of those efficiencies.
And effectiveness of our Labor force continues to get stronger as we go through.
The 2022 timeframe and.
Yes, I think that was it.
On the SG&A.
Joe I'm going to turn that over to Becky.
Yes on the SG&A on a year over year basis, we are seeing about 4%, maybe a little bit higher than 4% inflation largely from wages and benefits.
So incremental people in their personnel will always have some open positions and we're seeing our travel coming up along with our participation in <unk>. So we've done all of the current rate, we will divest pulses right around the corner. So we are getting back out there more so.
So we do expect our range on SG&A to be somewhere in that 56% to $58 million.
Each quarter this year.
Okay. Thank you.
Your next question comes from the line of Stanley Elliott from Stifel. Your line is open.
Hey, good morning, everybody. Thank you all for taking the question.
Thank you piggy backing on that SG&A comment.
How much longer I guess on the ERP system. It seems like we're fairly early in the process, but that should be a pretty good run rate.
For the time being until we get a little more progress on that.
Yes, we're expecting that to go up quite a bit this year Youre right were very early in 2021. The focus was largely on the blueprint said, we're in design phase and we are developing.
Eloping our prototype our first prototype write ups as we speak and by the end of the year, we will have our prototypes and will go live with our first site in 2023.
So we have.
Another three years to go.
And so the run rate certainly yes.
It's higher as you start implementing and.
Getting the people on board and more people involved. So we do expect that to go up and we think that will be in the range of $25 million to $30 million per year going forward.
Perfect and then.
So any comment on dealer inventories imagine there is still fairly low but would be curious about that and then kind of as a follow on.
You mentioned some.
Contractors customers, having good visibility this year taken some orders in 'twenty three maybe highlight some of the things you're doing to protect the price cost on the on the out orders.
Okay.
Hey, Good morning. This is Barry thanks for the question. So you are correct our dealer inventories, although we have seen them slightly go up probably single digit percentage points its still much much lower than it needs to be in order to really be able to support the demand in the marketplace that our customers are are bringing through so we still have a lot of.
Dealers that have orders in that start out as a.
Inventory unit, but by the time, we actually ship it as retail and as a customer name on it. So we have we're still.
Still working hard to try and get those inventory levels for our dealers up to where they really need to be.
Great guys. Thanks, very much and talk to you soon.
Again, if you would like to ask a question Press Star then the number one on your telephone keypad.
Next question comes from the line of Steve <unk> from Sidoti Your line is open.
Good morning, everyone.
Wanted to ask about the Capex guidance.
The last couple of years, where the.
Spending is going to be.
Yes, we really understand the last two years from a historical perspective, and largely that was due to COVID-19 and our lack of.
Our mechanical engineers from those projects that we have higher thats been part of our hiring this year, we have many projects in flight and we do expect to be in the range.
$30 million to $35 million $40 million.
This share.
Hey, Steve Let me just add on a little bit too I would tell you that so so what types of things are we spending that capital on.
So as of right now we have five of our facilities that were actually spending capital on have approved capital for expansion.
To support our demand. So we're excited about that our employees are excited about that.
Going to take us a little while to get that construction in place, but we've also spend money on more automation, we spend money on.
Equipment replacements in order to have more throughput.
We reduced costs, but also give us more.
Quantities and so I think we are.
When I look back I mean in the past the company has spent a lot of money on office reduce in office upgrades and now we're spending money on capital, that's really going to create value for our customers and our shareholders.
On top of that and maybe if ill just take a second to talk a little bit about other things we're doing for capacity.
<unk>.
With our operational excellence initiatives that we started.
Two years ago now we have many of those value stream maps and those types of exercises done where we can see capacity up Pasadena enhancement opportunities. If we can get the supply chain in place in order to support it with the components to really drive those types of volumes, we talked about the site expansion I think just the fact that over the last.
Year, or so Steve we've talked a lot about labor being our big constraint and now that we've actually gained traction in being able to hire people. We believe that that's also kind of a fundamental change for our business that's going to allow us to get some of those volume facilities more effectively.
Do you feel like you don't have the ample production capacity is that.
Holding you back right now or or is it component shortages in labor. So is that something that could be an issue later in terms of production capacity being an issue.
I would say to kind of go to the back half of your question. We've done much better on labor I don't see labor as being a constraint. Although we do have more people to hire into the company as we move through 2022, assuming we have the same type of success that the team has driven over the last couple of quarters I think that that will be less of an issue I think.
Ultimately that.
Additional head count will allow us to have more <unk>.
<unk>.
Through our facilities, but it is going to be really constrained ultimately Steve by the supply chain and at this point in time as I alluded to earlier Q4 was about as bad as we've seen it and it's been about really status quo as we move into 2022, so far so as that starts to come back around.
With the labor in place with the operational excellence initiatives in place with the capital investment. We've made we should be able to leverage some of that demand and turn it into growth as we get to the latter half of 2022 and into 2023.
Great and if I could get one more in just sort of circling around here on free cash flow for this year, how youre thinking about working capital clearly up this year I can understand inventory being way up to manage supply chain constraints do you see a pullback at some point next year, where that can be a benefit to cash flow.
That's a very good question and a challenging one it really depends on our supply chain and our ability to have the throughput I will say on our international side. We are poised for growth. So we will continue to grow.
Our needs for cash flow on the international side, but again it'll come down to that throughput. So I wouldnt expect another big Spike.
I think just add one more color around that as you can imagine Steve I mean.
And many of the components that we have in our raw today, it's to support that growth and production throughput.
Throughput, but when you have three or four things that don't show up that Kent, you can't finish or complete the unit.
That impacts us from actually being able to ship. It. So it's kind of where we think we have the inventory in place to be able to support the growth. We just need to make sure. We have all the inventory in place to be able to get it shipped.
Fair enough.
Thanks, very much everyone.
Thank you once again.
Once again, if you would like to ask a question Press Star then the number one on your telephone keypad.
And there are no further questions at this time, Mr. Steve Anderson I turn the call back over to you for some closing comments.
Alright, Thank you Rob and we appreciate everyone's participation on this conference call. Thank you for your interest in <unk>.
As today's news release indicates the call has been recorded a replay of the conference call will be available through March 14th 2022, and an archived webcast will be available for 90 days. The transcript will be available under the Investor Relations section of the <unk> industries website within the next seven days all of this information is contained in.
The news release distributed earlier this morning, so as Rob said this concludes our call and as always I'm happy to connect if you have additional questions. Thank you have a good day.
And this does conclude today's conference call. Thank you for your participation you may now disconnect.
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