Q1 2022 Aecon Group Inc Earnings Call
Turning to slide eight backlog recurring revenue program and the pipeline of bidding opportunities for new work remain at strong levels across Canada.
New awards.
$1 2 billion in the first quarter.
We are close to the $1 billion more than the first quarter last year.
And we anticipate the number of new projects to be added to backlog in the coming months.
Including the Montreal Trudeau Airport rent station in Quebec, and the Kingstone Port modernization project in Central San Francisco intervene.
Acorn is also pre quantified on a number of large project bids due to be awarded in the next two years.
Including several procurements for the Ontario, <unk> line and this cobble subway extension.
<unk> rated.
And system.
We expect demand for our services to remain healthy for the foreseeable future as federal and local governments across Canada and the U S.
Identify investment in infrastructure as a key economic driver and an essential part of the transition to a net zero carbon economy through more sustainable and resilient infrastructure.
Trailing 12 months' recurring revenue was up 36% versus the prior period, primarily from growth in utilities operations.
Recurring revenue is expected to continue to grow driven by demand in the utility sector and the concessions segment is expected to see Apple traffic in Davita continue its recovery in 2022 from the impact of the COVID-19 pandemic.
Turning to slide nine we were very pleased to announce in April that generic on consortium was officially selected for the transformative multibillion dollar go expansion and electrification project in Ontario, and they are a progressive design build operate and maintain contract model.
<unk>, 50% share in specific joint venture undertaking construction and 28% share in the 25 year operations and maintenance partnership.
Anticipated to be the two largest projects undertaken by Acorn.
History.
The contract begins with a two year collaborative development phase to finalize the scope commercial structure and pricing of various elements of the project.
Certain construction and early works activities will comment during this phase with operations and maintenance anticipated to commence in the second quarter of 2024.
Further information on the contract value and schedule will be disclosed once the development phase is completed.
It is worth noting that this complex project extending across several regions and with multiple external interfaces.
Stakeholders.
<unk> operational elements is being delivered in the progressive and collaborative model.
This is a welcome evolution from what was traditionally procured under a fixed price lump sum contract structure for such large complex and multi year projects.
These collaborative target price approach between on express and <unk>.
Is designed to benefit all stakeholders.
I want to express my sincere thanks for the tremendous effort and incredible work by our team to secure this landmark project for corn and.
And we look forward to transforming transit together.
With our partners and clients.
Turning to slide 10, the <unk> expansion project is also a significant step in our continuing journey to be an industry leader in sustainability.
Acorn proudly released its third sustainability report.
Innovation on Earth day last week.
Outlining our progress and key accomplishments in responsible ESG practices.
The report highlights e-commerce initiatives to embed sustainability innovation and work towards net zero construction throughout its operations.
Acorn is pleased to report significant progress toward its target to achieve a 30% reduction in direct fuels to emission by 2030.
As a 16% year over year emissions reduction already achieved in 2021 on an intensity basis.
Sustainability is part of our DNA at Eagle and a key consideration in every decision we make as we continue to focus on building what matters to enable future generations to thrive.
Turning to slide 11.
Trends that I've spoken to already in terms of the strength of the construction market in Canada.
Both the public and private sectors.
Continue to be positive and well aligned to <unk> Diversifies construction segment.
In the concessions segment. In addition to expecting continued recovery in travel.
The Bermuda Airport during 2022.
There are a number of opportunities to add to the existing portfolio of Canadian and international concessions in the next 12 to 24 months.
Including in the U S.
<unk> innovative projects with private sector clients.
That support our collective focus on sustainability and the transition to a net zero economy.
And of course, our concession group will be a key player in the development and long term operations and maintenance contract for the <unk> expansion project ramping up over the next several years and ultimately driving a generational change that will significantly improve transit.
In Canada larger metropolitan area.
The overall outlook for 2022 is positive with construction continuing on a number of projects that ramped up in 2000 22021.
Strong level of backlog and a robust demand environment for <unk> services.
Including record revenue programs.
Thank you.
We will now I will turn the call over to analysts for questions.
Absolutely.
If you would like to ask a question. Please press star followed by one on your telephone keypad.
For any reason, we'd like to remove your question strong followed by again to ask a question star one.
Reminder, if you are you can you confirm please remember to take up your Haynesville before asking your question. We will pause here briefly as questions are registered.
Our first question goes to corporate question with Raymond James.
Your line is open you can draw.
Good morning, everybody.
Thanks Curtis.
Can you comment on the competitive environment, you're seeing today, it seems like youre going against fewer global and domestic contractors.
Many of <unk> exited Canada so.
I'm wondering if that.
Does it allow you to be more selective when bidding for work and is that being reflected in the contract.
Or is that your you are being able to garner.
Okay, Frederic I Wouldnt take this one.
You'll see the pipeline of construction.
Opportunities.
For the future as you know.
<unk> is a <unk>.
Develop.
Finance engineer.
And also operates the.
Assets.
And it's quite good perspective.
I would tend to say that there is more and more to build.
And.
Yes, youre right it seem less and less constructive.
But at the end of the day Shortlisted.
Shortly Tom made of three.
Three players.
So there is still competition, what we have to try to.
To achieve it is.
Discipline and innovation within our business.
I tend to say and then used to say.
Backlog definitely is not an issue for <unk>.
E Com.
We are quietly, but surely growing on our journey to Derisk our backlog.
And as you've been able to see I mean, we are $6 4 billion.
At the end of Q1 2022, we have not taken.
One major single global lump sum superior to 1 billion during the last three years and our backlog is very comfortable everything is about.
Selectivity.
About quality of what we can acquire you also seem that new.
New awards during the quarter were at $1 2 billion, which is the.
Which is quite good.
What's important rather than <unk>.
I think trying to assess if there will be less or more competitive.
It's about going on.
Our objective of balancing our activity and this is what make a corn at the same time unique in the Canadian market when you see the <unk>.
Diversity of our activity and our organization that Lewis to be focused with the best team and we are seeing the best strategy on each of the sector.
This resilience and this is what we are looking at.
Year to come.
Sean the way did I hear you right. When you said you hadn't taken a single lump sum contract of over $1 billion in the last three years.
Yes, you have heard me right Frederic.
And our backlog they have been.
That's great Okay great.
The question on the topic Du Jour is inflation I think you historically shown that you've done <unk> and <unk>.
Relation is ramp and when commodity prices are elevated so I was just wondering what.
Can you can you share your thoughts here a lot of large.
Investors Akshay wondering about that.
Yes.
Execution is key.
I mean.
This is.
Always.
My key points.
So we deal with this through our continuous improvement I'm extremely happy with the result, and the enthusiasm.
Around the company, we deal with it's about education, our <unk> University Ive never been that strong about is the way, we procure and here we arrived to the disruptions.
That we may face on.
On the first quarter Amit.
It was important.
Thanks to the vaccine that was a game changer.
Not adventurous as the <unk>.
First.
COVID-19 virus and the following various web.
We still have to isolate and.
And Tiger teams.
When we have a positive case. So this has been a disruption on the supply chain yes.
Yes, we have some issue with inflation or what we call from time to time eicher inflation.
And volatility because sometimes it goes up and it goes down very quickly so.
We have now a very strong centralized procurement team that that can be even better with this we also have to deal I mean in terms of disruption of the supply chain with scarcity or even absence of some materials key materials for example.
You will not find today in Canada, one singular kg of seamless.
<unk> Steve.
We have a lot of issues to get <unk> and <unk> saw some value for our industrial job. So.
This creates some some issue.
All our clients are well aware about the inflation issues and we are discussing with them either to find alternative or to find solution or through our procurement department be able to cope with it as much as we can.
Thank you Cedric.
Our next question goes to Jacob bout with CIBC Jacob your.
Your line is open.
Good morning.
Sure.
I want to continue on with the supply chain issue discussion there and maybe you can comment on.
How should we be thinking about project delays are you seeing any.
And were due to the supply chain.
Issues and then specifically on the inflationary pressures. It's your expectation that you will see some margin pressure through 2022.
Yes, Youre right.
When I'm speaking about disruption of the supply chain.
This adds some consequences on our schedules and we asked to find alternatives, we have to find new ways of being able to deliver on time I mean, it's it's part of our asphalt on continuous improvement what I call. The religion of the critical path on each of our.
Doug we may come back to this a little.
A little later so.
What is also to be noted is that <unk> been keeping a strong it capacity to build it with at all components.
In.
We are not a company used to set contract everything everywhere it means that firstly.
Makes us stronger, but much more reliable with our own workforce, what we call our boots on the ground.
That we can control much better than having to go to the market in <unk>.
<unk> helps us I mean during the last months.
In terms of your question on margin.
Jacob.
Obviously, we've been in this environment for a while there this is.
Just a 2022 issue.
It was happening through certainly the back half of last year as well.
<unk>.
So it's not a step change in 2022, we manage through.
<unk>.
The challenges with that I think it certainly reduces.
To increase margins, but I think.
Compared to last year, when you exclude sues.
We still expect to see.
Good margin performance this year relative to last year.
But certainly it takes the.
Take the edge off.
Some of the upside potential for sure.
Okay, and maybe just a follow up here. So looking at your backlog for the next 12 months I think you are at.
Just over $3 1 billion, how much of that backlog do you think is at risk due to.
Future supply chain issues.
I pushed pushed out.
We don't really see any risk to.
That backlog in terms of.
The current schedule.
Obviously.
Building on my comments on the previous question. This isn't a new phenomenon. That's just happened today. These are all projects, we bid and the like.
Walt this is projects we bid in the last little while where we built this into with the climb into schedules into procurement.
Processes.
And projects that were already underway.
Most of the procurement system early in the project so.
It's not a case of.
Projects moving wholesale to the right is just dealing with individual challenges.
Certain aspects of the projects as we go along but its not a case of whole projects moving to the right.
Okay.
Thank you for your answers.
Thank you Jacob.
Our next question comes at a bit more accordingly with data.
Dan.
Hey, good morning, John Yes. Thank you very much good morning, John and David.
Yes.
Yes, we do think that we are seeing increased momentum or from the U S. With recent contract awards.
Could you talk maybe about your bidding pipeline in the U S and how important do you see the U S.
On the road.
Yes, Youre right.
Our.
Our strategy plan that we have renewed during the first quarter of 2022 for the three years to come is about growth.
And it's about profitable growth.
Our top some of the points I mean that was the first question Brian Frederick here. This morning.
The U S and.
International.
Is it going to be an important point.
We added quite a new job.
In the Washington State I mean, it's 126 million U S.
Donald job, it's perfectly within our core competency you probably remember a few months ago I was telling you I mean, we cannot change country and change activity. So it goes quite well the idea is to strengthen our presence in the Washington State and then slowly going south along.
The West coast, but also trying to find the right.
Opportunities we.
We also have been.
Prequalified.
On a medium size Q3 in the United States.
Section one.
So there is a very important pipeline not only in season, when we have a look at it I mean TVT.
He is at least 50% of what is coming.
Out into <unk>.
In near future in the United States. So we are.
Extremely.
Extremely attentive to two days.
Okay, that's great and when we look at your overall booking activity.
Great. So far when we look at Q1 with the go train expansion.
You still have to keep it.
Yeah.
Bidding opportunities on the table. So could you talk a little bit about how do you manage that.
The risks with labor these days.
Okay just to finish off the last question.
No time to tell you about water opportunities in U S. I mean, we have very strong partnership you probably know that.
We have been prequalified on jobin.
In California, another one.
We are the preferred bidder on Oregon State and we are finalizing it under a progressive design build.
Schema.
That's very important because it will be part of the.
In the future.
Regarding the pipeline and the 50 billion as I've said I mean, the issue is not to select everything.
We will select one needs a project, where our core competency gives us a real competitive advantage. So far thanks to our boots on the ground we.
No issues.
About KCP flavors, but we are I mean, we are extremely prudent when we select.
As a job that will become target.
To be able to execute them properly.
Okay, and obviously <unk> is a key project for a column there's discussion about the next leg of the project the last.
Given the recent news flow in Montreal.
Hoffman and argue that the timing of the contract award will be made in 2023 years.
So.
First of all our point of focus today in Montreal is a present Graham job I mean, we we still have three years, we are extremely focused on the <unk>.
Delivery, you probably can see I mean, our Montreal, some trains running up and down we are well advanced in all our testing program I'm extremely happy with the pace of the work coming on on these drops. So this is at the moment all our main point of focus.
Yes, it seems to be that there will be some delay for the next phases.
I would tend to say that we have activity I mean strong activity during the two years to come.
You probably also know that we have been awarded these the renovation at the Montreal to Toulouse or both.
We are not solving it.
We will see our cat is going to develop.
These new programs and we will be able to.
To apply.
With the best possible group to be Prequalified, and then eventually to be awarded.
Okay, that's great and maybe last one for me.
You talk about the concession opportunities that you see these days how would you cut where do you see the where would you see the greatest proportionate fees over the next few years between concession in.
MMA.
So there are still a few projects.
And urban transportation.
For our concession I mean for example, the Antara align what we call the Rss win which is the.
Rolling stock systems operation and maintenance I mean, we have a very strong team pre qualified we have delivered our technical offer two days ago, and we will deliver our financial officer at the end of.
Q2 saw transportation still have some opportunities in the energy sectors with private developers. We we can see very very interesting project coming on the table.
Internationally I mean, we.
We are extremely happy with our operation in Bermuda, and we are trying to replicate this these operations. So we have a development team extremely active on.
On this one.
The second question within your last question Benoit.
Paul.
So do you have any unfortunately.
Whether there is any update or yeah.
Nothing nothing to update.
Other than.
What we've said.
Consistently which is we're certainly open to M&A opportunities.
Not just that took in type of opportunities that we've seen over the last few years.
Some thing.
On a larger scale as well.
And so we're active on that front.
Nothing to update.
At this point in time.
We certainly believe M&A plays a role.
Our ongoing growth.
That's great color. Thank you very much prototypes.
Thank you Omar.
Our next question is Chris Murray with ATT NCB capital market.
Your line is open. Please go ahead.
Yes, thanks folks.
And then John let me just turning back to your commentary around maybe the go rail expansion and the progressive design build and thank you for the comment about the about where you guys have been on fixed price contracts and lots of oil.
Thinking about that and thinking about.
Go forward in the portfolio right now you are running about call. It two thirds fixed price versus versus variable price here or.
I guess cost plus unit price.
How do we think about that mix when we think about the stability in your backlog going forward are.
Are you starting to aim to try to bring that fixed price component down to maybe 50% or just how should we think about.
What the backlog, maybe it looks like in two or three years.
Yes, Youre right.
This is our strategy and it has been our strategy for a few years now.
To derisk our backlog so mechanically.
The proportion of fixed price within this backlog is going to go down. So you you have spoken about 50% of that can be a good target.
And this is going to happen you you probably see <unk> increase.
Two $722 million.
Trailing 12 months.
Q1, 2022 of recurring revenue I mean this is also part of the of the equation and this is what we are I would say working on it.
We we have been.
Advocating and discussing with our main clients for the last 20 months about these new ways of procuring jobs. So it doesn't mean that all fixed price jobs are that in all unit price or MSA or time and materials are good I mean, it's a little more complex.
What is sure is that certain projects due to their complexity.
We do not want any more to go through fixed price procurement method and the global expansion.
The new name now we have to be all used with this is encore.
Contango corridor.
And our group named is on express.
It is very interesting because.
Dale.
Half of it is about operation.
Is about economy benefit.
For the greater Toronto area and the commuter.
We are going to define commonly with metro links the exact strategy of operation, we won't and we have been talking a lot about it and part of the award is a boundless and with this we are going to build together with metro links the scope of the capex of the <unk>.
Construction and the price of the Capex. So it's a very it's a very interesting model it.
I'd say its a game changer in our industry.
And I think we are we are on the on the right way cruises.
Okay.
The complexity around this but is it fair to think that that's a better way to think about the margin profile. It's not necessarily at these types of contracts will carry a higher margin is maybe just there is a chance of having a more certain margin is a better way to think about it.
Yes, I think Youre right I mean, it's exactly as I say.
It's not all bad on one side all good on the other side I mean, it's it's about selectivity and it's about not being trapped under an environment, where you have very little capacity in case of problem to find the adequate solution.
Okay.
My next question just thinking about the Bermuda Airport.
The U S Airlines are talking about moving back.
Certainly the capacity numbers call it 70% to 80% of 2019 levels as we move into the summer I know you talked a little bit about.
You've had some issues early in the quarter.
But I guess some improvement through the quarter could you just give us an idea of how you folks are seeing.
Operations at the airport today relative to maybe 2019 levels.
And what your expectations are as we move into the summer period on the recovery.
Yes, so it's picking up nicely actually in the last couple of months as you said January and February .
With AUM of chrome.
Traffics or.
We were operating.
In the high 30% range in January and February versus 2019.
That was closer to 50% in March.
Month to date in April we're in the mid to high 50% range versus.
2019, so is <unk>.
Building nicely, we do expect that trend to continue through the summer.
Announcements from.
Air, Canada and others in the last few days.
Quickly, adding routes back to their network.
Which should benefit Bermuda.
Because that's one of the flights that hasnt been going in and out.
Some of the U S Airlines that service Bermuda same thing so is building nicely over the last couple of months and the trends look positive through the summer.
Okay.
Do you have an idea of where you think youre going to be through the peak season, whether it be 70% to 80% or maybe it's still a bit below that.
At this point.
Yes, I think it can get certainly back to that kind of level I think we see the average for the year.
Being around 60%.
If you look at.
Close to the end of April that we would be tracking well below that needs to be in that 70% to 80% range.
Get to that $60 average over the year.
We certainly think we are on track for that.
Alright thats helpful. Thanks folks.
Thank you Chris.
Our next question Theres, a microcontroller with.
Securities Michael Your line is open. Please go ahead.
Thank you good morning.
Right.
First question is about the backlog you had a nice sequential improvement quarter over quarter and overall backlog, but.
Particularly the backlog a portion expected to be executed over the next 12 months was up.
About $400 million or 15%, which was very strong I'm. Just wondering if you can comment on on particularly that that piece of the next 12 months portion.
And how we think about that that improvement you saw in the quarter because it was quite strong.
Yes, Youre right I mean, it went from $2 7 billion to $3 1 billion.
So.
You an idea I mean, what what can be a year of 2022 and the first element is the is the revenue increase that we add during the during the first quarter as David said I mean, we don't see a lot of vendors of these backlog that is forecasted to be executed during the next 12 months.
Pushed on the ride so far.
Enrollment is I mean, I just consider we have these women and so forth.
I think the other thing.
Yes.
If you go back a quarter.
The question was the other way around which is why is your next 12 month backlog.
Relative to 12 months ago. We said then is always an element.
In the first quarter of two of the year, where we are with bookings backlog is.
Going to be worked off in the current year and seasonal businesses like road building.
Transportation generally.
<unk> fit into that category so.
We've seen good.
Good pickups in lots of areas.
That's helpful. Thanks, and then.
You've had a number of questions about inflation and I think.
And suggested a couple of times. This is not a case of projects or risk of projects moving to the right, but you mentioned youre dealing with certain challenges I guess sort of a two part question number one can you be a little bit more specific about.
The specific challenges or issues you are dealing with as it relates to inflation in.
And then I guess secondly.
Dave you mentioned that maybe some of the upside is.
There is no longer quite what it was given the inflationary pressures I guess I'm wondering how has your visibility around margin performance and what you. What you think you can achieve this year, how has that changed or evolved over the next over the last several quarters as a result of it.
Sherri pressures is is there much more risk around what you think you can accomplish this year in view of these pressures and challenges or.
If you could just kind of comment on that that'd be helpful.
Yes.
I will begin more generally and then David maybe a little more specific I mean first of all.
You have to understand that it's not as.
We're making more money when price of supplies go down and we are making less money when price of supplies.
It's much more.
This we are I mean construction is about <unk>, we are used to deal with some sort of.
We just sort of a phenomenon, although at the moment I mean volatility and some of them. We can face very quick movement on the price of commodities.
The second part of my answer would be that we.
We have built during the last two years of very strong procurement team centralized at a corner and we have changed to leads and our way of procuring our supplies.
It means that once we get to an award and we try to negotiate the best advance payment.
Our down payment with our client we tend to as quick as possible.
Fix the level of price by procuring much earlier than what we were doing it.
In the years before so it's a change of mentality.
There is much more productivity.
As the procurement side much more professionalism.
David.
Yes to your question Mike.
Visibility improved from a quarter ago I would say.
We stay in the environment we're in today.
Ability has improved in terms of where they are.
Have the backlog.
More of the backlog, we're going to be working off this year in place that allows us obviously to lock in pricing with suppliers.
In index.
Escalation with our clients on those contracts so from that point of view a lot more of this now is fixed and in place.
But the key here is volatility.
Volatility, we're in an environment, where things can change quickly.
And so we can certainly operate.
In the environment, we're in today through the year.
Got it.
<unk> and.
An environment, where things can change quickly.
You will see in our outlook.
We have said.
Everything is subject to these external economic factors changing more radically.
<unk>.
So I think it's.
I think we have good visibility for 2022 based on backlog in place everything we know today about.
The supply chain challenges.
But if things change again, then obviously.
We'll have to react to that.
As we go.
Okay. That's helpful. Thank you.
Thank you Michael.
Our next question does the management Baidu with <unk> capital markets. Your line is open. Please go ahead.
Thank you and good morning.
Just wanted to robots to the topic of margins in the backlog.
Maybe just starting with <unk>.
Let's see here so yes.
Yes, yes, more work that's going to be so.
Completed in the next 12 months or so but the backlog is still mainly fixed price. So.
Good topline growth, but any color on margins going forward as we transition was the backlog towards different types of contracts.
Sure.
Yes.
As you know, we don't give specific margin guidance.
Or any particular year.
And so I go back to my comments at the beginning which is.
Relative to last year, excluding <unk>, we still expect margins to be.
Slightly ahead.
<unk>.
Yeah.
I think as we look.
Further out we do think with.
The quality of the backlog.
And the.
Ability to select the project profile.
We're targeting from a margin perspective.
We do see opportunities for margins to improve over time, but.
Yes, I don't want to give a specific margin target for this year.
I understand that's helpful.
Even just thinking about it longer term as you go through this transition that you're talking about the types of contracts they were pursuing and the types of projects. They can be working on where do you see.
Generally sort of the potential for the margins to grow over time.
Yes same thing.
Don't have a long term margin target.
Disclose either.
<unk>.
But in general we said, it's more a case of.
All fixed price jobs are bad.
Non fixed price jobs with good and the margin profile of one is significantly higher than the other.
It's a mix in both.
In both spaces so.
We do think the progression into less.
Fixed price work.
More recurring revenue and MSA type work.
It does lead to.
Low margin stability and predictability over time.
And we do going back to my previous call is the type of backlog, we're adding even fixed price backlog, we expect to see good margins.
<unk>.
But it is really about <unk>.
The stability.
Flexibility of margins.
Ship from fixed price to non fixed price kind of addresses.
Okay got it.
Wanted to ask.
But the recurring revenue profile unlicensed increased quarter over quarter some of it.
Pacific Electric.
<unk> acquisition I'm wondering if you can just talk about some of the other drivers of the increase in that business and how you could further accelerate the growth.
So that part of the portfolio.
Yes.
Youre right I mean utility that has been a big part, but also Bermuda increasing in some in.
In our road.
Business.
It's a common effort.
And it's also a strategy.
Means that you can see from the last quarters I mean, what is the trend.
This is our strategy to increase our recurring revenue.
So it's mixed in balance it's exactly what we want to achieve.
Yes, I think thats right its not just coming from utility work.
Also at.
An increase in recurring revenue in the nuclear space as well.
Contributing to that but the biggest driver is utilities. It's the biggest portion of that I would say, it's a function of.
The capital programs that we see.
A number of our utility clients were.
Typically.
The majority of that work this year will be any different in terms of how busy we are in Q2 Q3 and the early parts of Q4.
But this year.
I think those capital programs with so much going on.
She had is starting the year early we've been more winter work in the utility space.
Just because of the volume.
Yes.
And both telecommunications.
Gas distribution and transmission space.
<unk>.
Thank you.
We had a very strong environment for utility type services right. So we expect to see that.
Proportion grow.
Over the next.
12 to 24 months.
And just to finish on that topic are there a lot of.
Tuck in M&A opportunities to try to really grow the business faster.
Yes, I mean, we've done.
Profit is in.
Took.
Acquisitions over the last few years.
Most of those have been in the utility space.
We still think there is opportunities.
For more we also think is opt.
Opportunity for us.
With utilities.
<unk> in the U S as well so.
Sure.
For sure there is further took.
<unk> opportunities as well as through organic growth opportunities.
Alright, thank you.
Internationally.
There are currently no further questions registered at this time, so I'll turn the conference back over to the management team for any closing remarks.
Great well, thanks, everyone for joining us today and as always welcome questions that you may have for the call at a great rest of your day.
Yes.
This concludes today's income group 2020, Q1 earnings call. Thank you for your participation you can now disconnect your lines.
[music].
Okay.
Sure.
Yes.
Sure.