Q4 2021 ENGlobal Corp Earnings Call
Ladies and gentlemen, thank you for your patience. The conference call will begin in just a few moments. Please do not disconnect your lines. Once again, the conference call.
Ladies and gentlemen, thank you for your patience the conference call will begin in just a few moments. Please do not disconnect your lines.
Once again the conference call will begin in just a few minutes. Thank you for continuing to hold.
Speaker Change: Thank you very much.
[music].
Good morning and welcome to the ENG's 2021 Annual Financial Results Conference call. Your host for this morning is Chief Executive Officer Mark Hess.
Good morning, and welcome to the <unk> 2021 annual financial results Conference call.
Your host for this morning is Chief Executive Officer, Marc Hess at the request of E. N. G. Today's call is being recorded and will be available for replay on the Investor Relations section of the company's corporate website, Www Dot and global Dot Com you may access the replay by dialing toll free 877.
At the request of ENG, today's call is being recorded and will be available for replay on the Investor Relations section of the company's corporate website, www.englobal.com. You may access the replay by dialing toll-free 877-481-4010 domestically or 919-882-2331 internationally.
4814010 domestically or 91988 U Q3, three one internationally.
and referencing conference ID 44765. This replay will be available shortly after the completion of this event through 9 a.m. Eastern Time on March 17th, 2022.
And referencing conference I'd 44765, this replay will be available shortly after the completion of this event through nine a M. Eastern time on March 17th 2022.
Speaker Change: I would like to inform all parties that your lines have now been placed in a listen-only mode until the question and answer segment of the call begins.
I would like to inform all parties that your lines have now been placed in a listen only mode until the question and answer segment of the call begins to ask a question in that segment you will receive instructions from the operator.
Speaker Change: To ask a question in that segment, you will receive instructions from the operator.
Speaker Change: At this point, I would like to turn the call over to Rick Eisenberg, Media Relations Director with Eisenberg Communications.
At this point I would like to turn the call over to Rick Eisenberg Media Relations director with Eisenberg Communications. Thank you operator, and thanks, everyone for joining us on this call before we begin I'd like to review our forward looking statements provision.
Rick Eisenberg: thank you operator and thanks everyone for joining us on this call before we begin i'd like to review our forward-looking statements
Rick Eisenberg: During today's conference call, company representatives may make forward-looking statements.
During today's conference call Company Representatives may make forward looking statements any statements made in this presentation about future operating results or other future events are forward looking statements under the safe Harbor provisions of the private Securities Litigation Reform.
Rick Eisenberg: Any statements made in this presentation about future operating results or other future events are forward-looking statements under the Safe Harbor Provision.
Rick Eisenberg: Private Securities Litigation Reform Act of 1995.
Act of 1995 please.
Rick Eisenberg: Please note that actual results achieved by the company may differ materially from such forward-looking statements.
Please note that actual results achieved by the company may differ materially from such forward looking statements.
Rick Eisenberg: A discussion of factors that could cause such differences appears in the risk factors section of the company's website.
The factors that could cause such differences appears in the risk factors section of the company's 10-K.
Speaker Change: Presenting on the call today will be Daryl Spriggs.
Presenting on the call today will be Daryl sprague's.
Daryl Spriggs: Darren Spriggs, ENG CFO , Marques, ENG CEO .
Darren Sprague's E N G CFO , Marc Hess E N G C E O.
Daryl Spriggs: Following the presentations, Darren Mark and Roger Westerlund, ENG's president, will be available for questions.
Following the presentations Darrin, Mark and Roger Westerlund E N G. As president will be available for questions and now I'll turn it over to Dan Sprague's Darren.
Daryl Spriggs: Now, I'll turn it over to Darren Spriggs. Darren.
Darren Spriggs: Thank you, Rick. I would also like to extend my welcome and appreciation for those on the call today.
Thank you Rick I would also like to extend my welcome and appreciation for those on the call today.
Darren Spriggs: For the year, we reported approximately $36.4 million in operating revenue and $37.1 million in direct operating costs.
For the year, we reported approximately $36 4 million in operating revenue.
And $37 1 million in direct operating cost.
Darren Spriggs: Included in the direct operating costs is $5.6 million related to underutilized staff and proposal costs, which has significantly increased.
Then the direct operating cost is $5 6 million related to them.
Staffing proposal cost.
Which has significantly increased over prior periods.
Darren Spriggs: During the year, we have recorded an employee retention tax credit of $3.1 million for retaining our staff. In addition, our
During the year, we recorded a employee retention tax credit of $3 1 million for retaining our staff.
In addition, our P P M.
Darren Spriggs: also intended to retain our people was completely forgiven during the year.
Also intended to retaining our people what's completely forgiven during the year.
Darren Spriggs: These credits and the loan forgiveness totaling approximately $8 million are recorded in another income in accordance with GAAP.
These credits and the loan forgiveness totaling approximately 8 million are recorded in other income in accordance with GAAP.
Darren Spriggs: Our SG&A was $12.8 million for 2021.
Our SG&A was $12 8 million for for 2021.
Darren Spriggs: which included non-recurring legal and advisory fees of $300,000 and a non-collectible accounts receivable of $1.4 million, compared to $8.8 million.
Including nonrecurring legal and advisory fees of 300000, and an uncollectible accounts receivable of $1 4 million.
Compared to $8 8 million for last year.
Darren Spriggs: The remaining increase of $2.3 million is primarily related to investment in our business leaders and staff that Mark will discuss later in his comments.
The remaining increase of $2 3 million is primarily related to the investment in our business leaders.
That that Mark will discuss later in his comments.
Darren Spriggs: As a result, our net operating loss for 2021 was $5.6 million compared to $500,000 last year. Our income tax expense
As a result, our net operating loss for 2021 was $5 6 million compared to 500000 last year.
Our income tax expense consists of state income taxes, primarily in states that do not use net income to calculate taxes like Texas.
Darren Spriggs: Primarily in states that do not use net income to calculate tax like Texas.
Darren Spriggs: Our federal income tax expense is offset by an adjustment to the valuation allowance recorded again.
Our federal income tax expenses offset by an adjustment to the valuation allowance recorded against it.
Darren Spriggs: As a result, we recorded a net loss of $5.7 million or $0.18 per share for the year compared to a loss of $600,000 or $0.02 per share last year.
As a result, we recorded a net loss of $5 7 million or <unk> 18 per share for the year compared to a loss of 600000 or point to <unk> <unk> per share last year.
Darren Spriggs: We ended the year with $12.8 million in backlog compared to $24.3 million last year.
We ended the year with $12 8 million in backlog compared to $24 3 million last year.
Darren Spriggs: However, we saw an increase in our backlog in the fourth quarter of 4.4 million.
However, we saw an increase in our backlog in the fourth quarter of $4 4 million.
Darren Spriggs: Our cash balance was $19.2 million as of the end of the year, an increase of $5.5 million over last year. Last year's balance of $3.5 million.
Our cash balance was $19 2 million as of the end of the year, an increase of $5 5 million over last year.
Last year's balance of three point $13 7 million.
Darren Spriggs: Our working capital increased $12.2 million over last year to $26.2 million as of the end of 2021.
Our working capital increased $12 2 million over last year to $26 2 million as of the end of 2021.
Darren Spriggs: Significant changes in our working capital include the forgiveness of the PPE loan, of which $3.7 million was included.
Significant changes in our working capital includes if again that's on the T V alone.
Of which $3 7 million was included in working capital.
Darren Spriggs: and the issuance of approximately $20 million of equity during the year.
And the issuance of approximately $20 million of equity during the year.
Darren Spriggs: We believe that's cash on hand, along with internally generated funds, availability under the company's revolving credit facility.
We believe this cash on hand, along with internally generated funds.
They have the ability under the company's revolving credit facility.
Darren Spriggs: and other sources of working capital will be sufficient to funding Global's current operations and expected near-term growth.
And other sources of working capital will be sufficient to funding levels current operations and expected near term growth.
And now to you Mark.
Thank you Darren.
Darren Spriggs: As you mentioned, 2021 was a challenging year for us.
As you mentioned 2021 was a challenging year for US we reported in our press release. This morning, we had a significant decrease in our revenue for the year, mostly due to the continued impact of COVID-19 upon the segments of the energy industry in which we typically participate.
Darren Spriggs: We reported in our press release this morning, we had a significant decrease in our revenue for the year, mostly due to the continued impact of COVID-19 upon the segments of the energy industry in which we typically participate.
Darren Spriggs: Due to this impact, we were not able to replace several large commercial segment projects when they completed, which materially affected our top and bottom lines.
Due to this impact we were not able to replace several large commercial segment projects when they completed.
Materially affected our top and bottom line.
Darren Spriggs: Compounding the reduction in revenue was the cost of retaining our core talented employees that you referred to.
Compounding the reduction in revenue was the cost of retaining our core talented employees that you referred to.
Another factor that affected.
Darren Spriggs: Our performance last year was that also due to COVID, a number of our current clients and potential customers and their staffs were still working from home and in many cases reducing their staffing level.
Our performance last year was that also due to COVID-19 a number of our current clients and potential customers and their staffs were still working from home and in many cases, reducing their staffing levels.
Darren Spriggs: As a result, more and more of these clients and potential customers began seeking a broader range of services from their service providers.
As a result, more and more of these clients and potential customers began seeking a broader range of services from their service providers.
Darren Spriggs: Preference for one-stop shopping for complete engineering, procurement, fabrication, or EPF, or engineering, procurement, fabrication, and construction, or EPC, project delivery.
Our preference for one stop shopping for complete engineering procurement fabrication or EPS or engineering procurement fabrication and construction or EPC project delivery, which reduces the complexity of dealing with multiple service providers on a single project.
Darren Spriggs: which reduces the complexity of dealing with multiple service providers on a single project.
Last year, therefore, we undertook a number of initiatives designed to better align ourselves with the needs of our clients.
Darren Spriggs: Last year, therefore, we undertook a number of initiatives designed to better align ourselves with the needs of our clients.
Darren Spriggs: At the center of these initiatives was our recruitment of seasoned and well connected leaders for most of our focus markets, renewables, integration, automation, government services, and traditional oil and gas.
At the center of these initiatives was our recruitment of seasoned and world.
<unk> leaders for most of our focus markets renewables integration automation government services and traditional oil and gas.
Darren Spriggs: This process started in late 2020 with the addition of our President, Roger Westerlin, who then, through collaboration with each of our new and existing leaders, developed and implemented improved strategies for each respective market.
This process started in late 2020, with the addition of our President Roger Westerlund.
Then through collaboration with each of our new exist, new and existing leaders developed and implemented improved strategies for each respective market.
Darren Spriggs: These strategies, as I mentioned, are aimed at targeted customers and increasing our capabilities and core competencies in order to provide a broader range of services desired by them.
These strategies as I mentioned are aimed at targeted customers and increasing our capabilities in core competencies in order to provide a broader range of services desired by them.
Darren Spriggs: For example, last October we added light field construction to our capability.
For example, last October we added like field construction to our capabilities.
Darren Spriggs: The following month, we broadened our carbon capture expertise and partnered with a leading technology university to build a prototype CO2 sequestration reactor designed for capturing the carbon dioxide formed during the generation and other industrial processes and storing it so that it not...
The following month, we broadened our carbon capture expertise and partnered with a leading technology University to build a prototype cotwo sequestration reactor design for capturing the carbon dioxide formed during the generation and other industrial processes and storing it so that it not.
<unk> is not released into the atmosphere.
Darren Spriggs: In early this month to satisfy the significant increase in demand for field services in the Permian Basin, we commenced operations based out of Monaghan, Texas.
And early this month to satisfy the significant increase in demand for field services in the Permian Basin, we commenced operations based out of Monahan, Texas.
Darren Spriggs: Not only will that office provide its own direct field services, it will also connect clients with our engineering and project support teams from our Houston, Denver and Tulsa offices.
Not only will that office provide its own direct field services. It will also connect clients with our engineering and project support teams from our Houston, Denver, Tulsa, and Tulsa offices, as well as our fabrication facilities in Henderson, Texas, and our integration facilities in Houston as needed.
Darren Spriggs: as well as our fabrication facilities in Anderson, Texas and our integration facilities in Houston as needed.
Darren Spriggs: As a result, our current and future Permian Basin clients can receive complete EPC, EPF project delivery services from conception to complete.
As a result, our current and future Permian basin clients can receive complete EPC ETF project delivery services from conception to completion.
Lastly, during 2021, we moved our Houston sales and engineering office to be within easier reach of many of our major clients.
Darren Spriggs: Lastly, during 2021, we moved our Houston sales and engineering office to be within easier reach of many of our major clients.
Darren Spriggs: And we rebranded ourselves, creating a new logo, new website, and new marketing materials to introduce our broadened capabilities to our clients and potential customers.
And we rebranded ourselves, creating a new logo, new website, and new marketing materials to introduce our broadened capabilities to our clients and potential customers.
Darren Spriggs: The first indication that these changes are producing positive results is that in the fourth quarter of last year, our quarterly backlog increased for the first time in over a year.
The first indication that these changes are producing positive results is that in the fourth quarter of last year, our quarterly backlog increased for the first time in over a year.
Darren Spriggs: Another indication that these initiatives are paying off is that the opportunity pipeline for our base recurring business, meaning the total value of outstanding proposals for which we believe our base recurring business has a reasonable chance of landing, has grown to over $300,000.
Another indication that these initiatives are paying off as it the opportunity pipeline for our base recurring business, meaning the total value of outstanding proposals for which we believe are base current recurring business has a reasonable chance of landing.
Has grown to over $350 million.
Darren Spriggs: Additionally, during the first quarter of 2022, we've been awarded a $4.4 million contract extension by the US Defense Logistics Agency, a two
Additionally, during the first quarter of 2022, we've been awarded a $4 $4 million contract extension by the U S Defense Logistics agency.
A $2 2 million.
Darren Spriggs: in orders to build parking lot security trailers, and most impressively, we've been selected by a confidential client for a major renewable fuels plant intended to produce over a hundred
And orders to build <unk>.
Arcing lot security trailers, and most impressively we've been selected by a confidential client for a major renewable fuels plant intended to produce over 100 million.
Darren Spriggs: million gallons per year of sustainable aviation fuel and renewable diesel fuel from renewable feedstocks, among others.
Gallons per year of sustainable aviation fuel and renewable diesel fuel from renewable feedstocks among others.
This project.
Darren Spriggs: which followed up on the hydrogen plant.
Which followed up on the hydrogen plant.
Darren Spriggs: that we delivered to Seaboard Energy last June , and is in the startup phase now, will utilize license processes from our technology partners.
That we delivered the Seaboard energy last June and is in the startup phase now will utilize licensed processes from our technology partner these processes produce renewable jet and diesel fuels with a low carbon footprint, thus, helping limit the release of greenhouse gases into the atmosphere.
Darren Spriggs: These processes produce renewable jet and diesel fuels with a low carbon footprint, thus helping limit the release of greenhouse gases into the atmosphere.
Looking forward we believe.
Darren Spriggs: We are now positioned ourselves well to potentially capture several other large projects in the renewable and green energy space. These projects...
We are now positioned ourselves well to potentially capture several other large projects in the renewable and green energy space. These projects.
Darren Spriggs: worth anywhere from $30 million to well in excess of $100 million each.
Worth anywhere from $30 million to well in excess of $100 million each.
Darren Spriggs: At the present time, in fact, we estimate that our opportunity pipeline for such projects totals over $750 million.
At the present time in fact, we estimate that our opportunity pipeline for such projects totals over $750 million.
Darren Spriggs: In addition to these opportunities, we're now also well positioned to take advantage of numerous smaller capital EPC project opportunities.
In addition to these opportunities were now also well positioned to take advantage of numerous smaller capital EPC project opportunities.
Darren Spriggs: These opportunities, we estimate, now total over $100 million in our pipeline.
These opportunities we estimate now total over $100 million in our pipeline.
We are guardedly optimistic that we can convert these refi a reasonable portion of these combined pipeline of over $1 2 billion to secure business for this year.
Darren Spriggs: a reasonable portion of these combined pipeline of over $1.2 billion to secure business for this year.
Darren Spriggs: As always, safety continues to be our highest focus and priority. We have shared details of our safety programs, Zero Impact, and First Things First with you in the past.
As always safety continues to be our highest focus and priority. We have shared details of our safety programs zero impact and first things first with you in the past.
Darren Spriggs: A strong commitment to safety is not only paramount for the health and well-being of our employees, it also makes us a more attractive and reputable service provider in the eyes of our clients.
A strong commitment to safety is not only paramount for the <unk>.
Health and well being of our employees. It also makes us more attractive and reputable service provider in the eyes of our clients.
And speaking of employees.
Darren Spriggs: I would like to take this opportunity to thank all of our hardworking and dedicated employees.
I would like to take this opportunity to thank all of our hardworking and dedicated employees for all of their efforts getting us through this transition period to where we are today, we could not have done it without them.
Darren Spriggs: for all of their efforts getting us through this transition period to where we are today. We could not have done it without them.
Darren Spriggs: Lastly, we continue to believe wholeheartedly in our people and the expert strategies that they have chosen and implemented.
Lastly, we continue to believe wholeheartedly and our people and the expert strategies that they have chosen and implemented.
Darren Spriggs: I am proud and excited to report that we are now seeing real results directly related to these efforts.
I am proud and excited to report that we are now seeing real results directly related to these efforts and we are therefore very optimistic about 2022 and the future of <unk> global.
Darren Spriggs: And we are therefore very optimistic about 2022 and the future of.
Speaker Change: This concludes my prepared remarks and now I'd like to turn it all back over to the operator.
This concludes my prepared remarks, and now I'd like to turn the call back over to the operator for questions.
Speaker Change: Thank you. Ladies and gentlemen, the floor is now open for questions.
Thank you ladies and gentlemen, the floor is now open for questions. If you have any questions or comments. Please press star one on your phone at this time.
Speaker Change: If you have any questions or comments, please press star 1 on your phone at this time. If you wish to remove yourself from the queue, you may press star 2.
Wish to remove yourself from the queue you May press star two.
Speaker Change: We do ask that if you are listening via speakerphone to please pick up your handset for optimum sound quality. Once again, if you have any questions, please press star 1 on your phone now.
We do ask that if youre listening via speakerphone. Please pick up your handset for optimum sound quality. Once again, if you have any questions. Please press star one on your phone now.
Speaker Change: Our first question today is coming from Jeffrey Campbell at Alliance Global Partners. Your line is live. You may begin.
Our first question today is coming from Jeffrey Campbell at Alliance Global partners.
Your line is live you may begin.
Hi, Mark and good morning.
Jeffrey Campbell: I have three questions I'll ask this morning. The first one is, can you provide some more color?
I have three questions I'll ask this morning. The first one is can you provide some more color.
Jeffrey Campbell: on the type of commercial projects most negatively affected by COVID-19, and if you expect any or all of these to come up for renewal again in 2022.
On the type of commercial projects, most negatively affected by COVID-19, and if you expect any or all of these to come up for renewal again in 2022.
Speaker Change: So, as you know, we're a project-based company, which means that we typically are not working on repeat.
So.
As you know we're up excuse me we are a project based company.
Which means that we typically.
Are not working on repeat.
Projects.
Speaker Change: So we work with our clients and our clients will have repeat projects.
So we work with our clients and our clients will have repeat projects, but it's not the same ones. So while.
Speaker Change: but it's not the same one. So while...
Yes.
Speaker Change: you know, we will get repeat work from our clients. It won't be the same project. So as these projects complete, if there's not another one in our client's queue, then that's where we're not able to replace that.
We will we will get repeat work from our clients it won't be the same project. So as these projects complete.
Not another one in our clients Q, then that's where we are not able to replace that work what we see coming from our clients is a significant increase in the projects in their queue not.
Speaker Change: What we see coming from our clients is a significant increase in the projects and their queue. Not only increase in number of projects, but also the funding levels. So that's why we're
Not only increase the number of projects, but also the funding levels. So that's why we're so optimistic about this year.
Speaker Change: Okay, great. Thanks for that color. You recently announced a renewable fuels contract that indicated the ability to produce both diesel and jet fuel, as opposed to the seaboard project, which I believe was primarily renewable.
Okay, great thanks for that color.
You recently announced renewable fuels contract that indicated the ability to produce both diesel and jet fuel as opposed to the Seaboard project, which I believe was primarily renewable diesel can.
Speaker Change: Can you discuss the meaningful differences between these projects and if you believe this sort of fuel flexibility is likely to be required in the future?
Can you discuss the meaningful differences between these projects and if you believe this sort of fuel flexibility is likely to be required in the future.
Speaker Change: I wouldn't, I'll answer the last part of that first. I don't know if the flexibility to produce SAF or renewable jet fuel versus diesel is a requirement. I think the way the client is looking at it is it's an opportunity and so they can then produce whichever one is most economical at the given market.
I wouldn't I'll answer the last part of that first I don't know if the flexibility to produce.
For renewable.
Jet fuel versus diesel as a requirement I think the way the client is looking at it is it's an opportunity and so they can then produce whichever one is most economical at the given market.
At any given time.
Speaker Change: And so, depending upon the sales price of diesel versus jet fuel, they can change.
And so depending upon the sales price of.
Diesel versus.
Jet fuel they can change.
Their output the same input so they have the same they are using the same.
Speaker Change: So they have the same, they're using the same feature.
Feedstock for either one.
Speaker Change: It's a slight increase in the cost of the project in order to be able to switch between the two outputs.
It's a slight increase in the in the cost of the project in order to be able to switch between the two.
Outputs.
Speaker Change: A typical plant like this would cost somewhere...
A typical plant like this.
Wood wood costs somewhere and this is.
Speaker Change: It's a semi-greenfield plant, so there's some existing infrastructure, and so typically the cost of a plant is dependent upon quite a few factors.
It's a semi greenfield plant. So there is some existing infrastructure and so typically the cost of a plant is dependent upon them quite a few factors.
Speaker Change: Those factors are, you know, availability of land, utilities, et cetera, et cetera, et cetera.
Those factors are availability of land utilities, et cetera, et cetera et cetera.
Speaker Change: So in this particular case, there's some infrastructure already available, and so I'm not sure exactly what the cost of this plant is.
So in this particular case.
There is there is some infrastructure already available.
So I'm not sure exactly what the what the cost of this plant is but.
Speaker Change: Typically, these plants run anywhere from 300 to 450 million.
Typically these plants run anywhere from $300 million to $450 million.
Okay.
Speaker Change: Well, it sounds like from what, just to follow up on that, it sounds like from what you said that apples to apples.
Well it sounds like from what just to follow up on that it sounds like from what you said that.
Apples to apples.
Speaker Change: The cost for the increased flexibility is not onerous or not hugely significant. Is that fair?
Costs for the increased.
Flexibility is not does not onerous are not hugely significant is that fair.
That's fair.
Speaker Change: Okay, great. Thanks. And my last question is with regard to the carbon capture and sequestration effort that you noted in your prepared remarks, just wanted to.
Okay, great. Thanks.
My last question is with.
Hard to the carbon capture and sequestration efforts issue.
Noted in your prepared remarks, just wanted to see.
Speaker Change: see if we get a little bit more color on it, you know, how's it progressing? What's sort of the overall timeline for this? And what's the first endpoint expected should the research that's ongoing be successful?
If we get a little bit more color on it how is it progressing what's sort of the overall timeline for this and what's the first endpoint expected should be.
Research this ongoing be successful.
Yeah.
So the as I as I.
Speaker Change: believe we where we are in that project, I believe is we have we've gone through the first phase of building this reactor.
Believe we where we are in that project I believe as we have.
We've gone through the first phase of.
Building this.
Reactor.
It's a <unk>.
Speaker Change: a situation where a reactor is on a skid and so it can be moved around.
Situation, where reactors on our skid and so it can be moved around.
Speaker Change: We've designed and this kid and.
We've designed in the skid in.
And.
Speaker Change: We did all the engineering and now we're in the fabrication phase.
We did all the engineering and now we're in the fabrication phase.
Speaker Change: This would then be turned back over to the university and they would utilize this for testing purposes.
This would then be turned back over to the University and they would.
Utilize this for testing purposes around the country.
Speaker Change: Got it. And do you have any kind of a rough timeline as to when the, between the 2 of you, you'll determine that you've had the success that you hoped going in or.
Got it.
Do you have any kind of a rough.
<unk>.
Between the <unk> yield determined that <unk>.
<unk> had the success of your hopes going down or.
Or not or that there needs to be some additional changes or just kind of trying to get an idea of what the overall timeline of the scope of this.
Speaker Change: Just kind of trying to get an idea of what the overall timeline of the scope.
Speaker Change: Yeah, I don't have that at my fingertips. I'm happy to get back to
Yes, I don't have that at my fingertips, I'm happy to get back to you on it.
Speaker Change: I would say it's within six months, but I don't have the exact.
I would say, it's within six months, but I don't have the exact timeframe.
Speaker Change: That's fine, six months to a year, that's very helpful. Thank you. Okay.
That's fine that's six months a year.
Very helpful. Thank you okay.
Once again, ladies and gentlemen, the floor is open for questions. If you have any questions or comments. Please press star one on your phone now.
Speaker Change: If you have any questions or comments, please press star 1 on your phone now.
We have no further questions in queue at this time.
Speaker Change: Well, thank you very much, Operator, and thank you, everyone, for listening to us this morning, and we look forward to hearing from you.
Well. Thank you very much operator, and thank you everyone for listening to US. This morning, and we look forward to hearing from you.
You all have a great day.
Speaker Change: Thank you ladies and gentlemen. This does conclude today's event. You may disconnect at this time and have a wonderful day. We thank you for your participation.
Thank you ladies and gentlemen, this does conclude todays event you may disconnect at this time and have a wonderful day, we thank you for your participation.
Okay.