Q1 2022 Luxfer Holdings PLC Earnings Call
Is about to begin.
[music].
Good morning, My name is Katie and I will be your conference operator today welcome to Deluxe first first quarter 2022 earnings conference call all lines have been muted.
After the Speakers' prepared remarks, we will hold a question and answer session now I will turn the call over to Mike Gaiden, Vice President and Investor Relations from Luxor, Mike. Please go ahead.
Thank you Katie and welcome everyone to <unk> first quarter 2022 earnings call with me today is our local mascara, What's first Chief Executive Officer, Andy Butcher, <unk>, Chief Executive Officer, designate and Steve Webster Lux first Chief Financial Officer.
On today's call, we will provide details of our first quarter 2022 performance as detailed in the press release issued yesterday.
Today's webcast is accompanied by a presentation that can be accessed at locks for dot com. Please note any references to non-GAAP financials are reconciled in the appendix of the presentation before we begin a friendly reminder, that any forward looking statements made about the company's expected financial results are subject to future risks and uncertainties.
We undertake no obligation to update any forward looking statements, whether as a result of new information future events or otherwise please refer to the safe Harbor statements on slide two of today's presentation for further details now.
Now I will turn the call over to Willow for his summary comments on the quarter after which Steve will provide details of our financial results.
Steve's remarks, although we'll introduce Andy who will discuss <unk> first outlook before Q&A Hello. Please go ahead.
Thank you, Mike and welcome everyone.
Please turn to slide three.
I am pleased to share with you today details of our solid execution in the first quarter.
I want to start by expressing my thanks to the entire lots for team, who once again navigated difficult supply chain conditions in the quarter to put our customers first.
I also want to express my appreciation to our customers for their collaboration and support amid ongoing labor and material shortages.
On this page I want to highlight three key messages.
First we delivered 14% year over year sales growth in the first quarter.
Driven by an 8% uplift from the Sci acquisition as well as our success in passing through cost inflation.
While raw material availability impacted our volumes.
And input cost inflation impacted our profitability.
Q1, adjusted diluted EPS of <unk> 33 cents places us on a strong footing to start the year.
Our electric.
Good solid results helped by a robust industrial demand and successful inflation pass through.
While gasoline. This Q1 results were challenged by inflation and material availability.
Our 2022 growth expectations for this business units remain unchanged given the strong demand and order backlog.
Our balance sheet remains solid with a net debt to EBITDA ratio of 1.1.
Second we remain focused on meeting high levels of demand by navigating through supply chain constraints.
We are generating an elevated pace of order flow across many of our end markets, including industrial and aerospace.
And see the potential for rising defense activity.
This quarter, we implemented multiple actions.
To offset inflation in our input cost.
And we also advanced our efforts to further diversify our supplier base to increase supply chain resiliency.
Consistent with our expectations at the year's onset we did see some evidence of incremental improvements in the broader supply chain during the quarter.
Third.
Our solid Q1 performance and healthy backlog have enabled us to improve our 2022 adjusted diluted EPS guidance range to a range of $1.35 to $1.50 from the earlier range of $1 <unk> to $1 50.
In addition, our Q1 results and outlook for the balance of the year.
Underscore our confidence in delivering on our EPS goal of $2 or more by 2025.
Turning to slide four I would like to provide more details on our supply chain recovery efforts.
Yeah.
Lux for like many other manufacturers continues to navigate strenuous supply chain conditions as outlined do our Q4 earnings call in February .
The ongoing for somebody sure at U S. Magnesium continues to limit availability of magnesium in U S and at the same time supplies of carbon fiber zircon sand and other key raw materials also remained tight.
However, we are making progress.
Internally and externally to address these unprecedented conditions.
We continue to qualify alternate suppliers for key raw materials, like magnesium zircon side and carbon fiber.
Success from our efforts to secure timely and cost effective procurement.
Gives us greater confidence in delivering on our 2022 financial forecast.
In March the Rio Tinto, Richard B mind, our primary supplier of zircon sand.
Lifted it's forced mature.
Consistent with our expectations for incremental supply chain improvement as the current year progresses.
These tight supply chain conditions persist against the backdrop of sustained high level of demand from our customers.
Current oil pricing conditions underscored the value proposition of our products, serving their transportation and energy applications.
The geopolitical backdrop also brings the potential for heightened demand for our military and humanitarian relief offerings.
We stand prepared to deliver any additional needs for U S. R. NATO troops with countermeasure flares, Flameless ration heaters and other defense products to support efforts towards reinforcing security in the European region.
We also remain ready to supply additional orders for mras and humanitarian relief products to support those impacted by the devastating war in Ukraine.
We continue to collaborate with our customers to proactively manage our elevated backlog.
Our customer first approach along with our ability to secure additional inventory supply positions us well to capture additional growth I'll make this busy and demanding economic backdrop.
Now, let me turn the call over to Steve for details on our first quarter financial performance.
Thanks, Luke I'll start on slide five where some of the summary of our performance by end market.
As a reminder, we classify ourselves into three key end markets Defense first response, and health care transportation, which includes alternative fuel aerospace and automotive and general industrial.
Real.
On this slide we've included numbers for Q1, 2022, as well as the two preceding full financial years.
The commentary on this slide references the current quarter only.
In the defense first response and health care end markets sales increased by two 9% for the quarter.
We saw strong demand for magnesium powders used in military flash, which was partially tempered with lower replenishment of disaster relief products on the heels of decreased pandemic related order flow.
Quarterly sales and transportation grew 11, 6%.
While the Sci acquisition continued to positively impact sales in this end market, we enjoyed a continuation of double digit growth in our auto catalysis products driven by wider adoption of gasoline particulate filtration.
There was good momentum in the quarter and the outlook remains encouraging for this end market in 2022.
Sales in the general industrial end market increased 28, 4% for the quarter driven by strong Elektron performance supported by action to offset rising cost inflation.
Furthermore, within.
Within gas cylinders specialty industrial cylinders continued to recover well from pandemic lows.
Overall, we delivered solid performance in a challenging operating environment and feel optimistic about continuing broad based demand recovery throughout the remaining three quarters of 2022.
Now please turn to slide six for a summary of our first quarter P&L results.
First quarter sales of $97 million increased $11 $8 million or 13, 8% from the prior year.
Including $7 $1 million of incremental <unk> sales, which accounted for eight 3% growth, but our total revenue.
Quarterly revenue also benefited from $9 $4 million of price, which accounted for 11% of our total sales increase and offset rising material and labor costs as well as other supply chain disruptions.
Excluding price and acquisitions volume declined by $3 $5 million as we were unable to fulfill strong demand due to supply chain constraints.
Consolidated adjusted EBITDA of $16 $1 million for the quarter decreased $1 $6 million or 9.0% from the prior year.
So we took additional price actions in the quarter. This effort did not fully offset the aggregate impact of both cost inflation and other supply chain disruptions.
However, we expect that this outcome in the first quarter.
As we continue to implement further price adjustments, we remain confident in our ability to pass through cost inflation to our customers through surcharges adjustments or other contractual means.
All in we delivered a strong performance to start the year given supply chain constraints amid continued elevated levels of order flow.
Let's review our segment results on slide seven.
Elektron sales of $54 $6 million grew 11, 4% from the prior year drill.
Driven by general industrial demand and strong performance of magnesium powders using countermeasure flares.
EBITDA increased even more than sales at 14, 5% helped by tiny cost cost correct.
Gas cylinders segment sales grew 17, 1% to $43 4 million, including $7 $1 million and additional sales from the Sci acquisition.
While demand levels remained high inventory availability constraints sales.
EBITDA of $2 $7 million decline from the prior year's $6.0 million with input cost inflation and Sci losses impacting profitability.
As a reminder, we closed the <unk> acquisition in March of last year hadn't starts in Q2, SCO is expected to deliver year over year profitability improvements.
Given strong order backlog and supply chain actions underway, we remain confident in achieving this division's expectations for 2022.
Now, let's review, our key balance sheet and cash flow metrics on slide eight.
Okay.
<unk> continues to benefit from our strong capital position.
We have utilized our balance sheet to help ensure inventory for our customers at the time of heightened supply chain uncertainty.
We experienced a $10 $3 million of free cash outflow in the quarter as our working capital increased by $18 million sequentially to $106 $4 million.
And we paid $6 6 million in cash restructuring payments.
Primarily related to our 2019 close with manufacturing operations in France.
This Q1 free cash outflow is consistent with our typical cash flow seasonality.
Yeah.
While our working capital at 27, 4% of annualized sales sits above our targeted band of 21% to 23% we view our incremental investments in inventory as a key differentiator in the long term pillar of our customer first strategy.
In addition, our accelerating sales volume within the quarter contributed to our elevated working capital position at period end.
We remain committed to our long standing target of 21% to 23% working capital as a percentage of annualized sales.
I'd expect migration to this level of supply chain conditions normalize.
With net debt of $68 7 million, our net debt to EBITDA measured just one one times.
I'm also pleased to report that on a trailing 12 month basis, we delivered 15, 5% ROIC.
Based on adjusted earnings.
We continue to enjoy both a tactical and strategic flexibility afforded by our capital positioning.
Next I would like to review our capital allocation priorities on slide nine.
Our capital allocation priorities remain unchanged with a focus first and foremost on reinvestments in our business to drive organic growth as well as return of capital to shareholders and evaluation of value, creating bolt on M&A.
As we announced on March 10th our board increased our quarterly dividend by 4% to 13 per ordinary share up from 12, 5% per share previously.
And during the first quarter, we also repurchased one $5 million worth of shares adding to a $6 $4 million in 2021 buyback activity.
Let's now review, our updated 2022 expectations on slide 10.
We continue to forecast 2022 to be a strong year for luck stuff.
We now expect to deliver adjusted diluted EPS of $1 35 to $1 50 up from $1 30 to $1 50 earlier.
We expect revenue growth of 12% to 20% to underpin this earnings forecast.
From a high level broad based demand remains a tailwind for our overall portfolio.
Like in 2021, we expect alternative fuels as well as specialty products to drive growth in our gas cylinders business.
At the same time, new product introductions like <unk> Unitize group rations should help drive growth in our Elektron segment.
Further normalization in aerospace one of the sectors hardest hit by COVID-19 should serve as an incremental positive to both divisions.
As mentioned earlier, we continue to address the challenges brought by tight raw material availability.
Including ongoing efforts to pass through cost inflation to our customers.
From a return on capital and capital structure perspective luxury remains in a position of strength.
Following our $18 2 million dollar contribution last year, we have no need to make a contribution to our UK pension plan this year.
Which will support our 2022 free cash flow.
We expect to make the remaining cash payment for the French manufacturing facility. We closed in 2019 later this year.
And now I'd like to turn the call back over to a life to introduce Andy Butcher, our CEO designate.
Thank you Steve.
I am pleased to introduce Andy to all of those joining us today.
Andy is a 30 year veteran of <unk> and a key global growth leader.
He has been a leader of Luxor gas cylinder since 2008.
And has been instrumental in driving the growth of the composite cylinder portfolio through new applications and end markets such as alternative fuel.
Andy has led successful Asia business development as well as the recent Sci bolt on acquisition.
He has been my key business partner for the last five years.
And holds a broad range of core competencies to drive strategic growth and lean operations.
He is passionate about <unk> values and culture.
And I know luxury will be in great hands with Andy as the CEO , beginning may 6th Andy over to you.
Thank you for the kind introduction and Hello, everyone.
Pleasure to speak with you today.
I am excited to leave lead Luxor as the company's next CEO and to put my experience to good use.
I take the reins with Luxor in a strong position with an attractive long term growth outlook with favorable trends in many of the markets that we serve.
We will continue to succeed in the future by putting our customer first.
Pursuing an agenda of organic growth.
Collaborating as a team.
And further investing in product innovation.
I'll also evaluating complementary bolt on acquisitions.
Let's turn now to slide 12 to review our progress on our transformation plans.
<unk> today is in a strong position.
Our transformation plan at the last several years is permanently removed significant annual costs.
Enhanced our ability to drive strong free cash flow.
Simplified our manufacturing footprint.
We focused our portfolio on high margin growing end markets.
<unk> next chapter we will now work to accelerate growth.
Harnessing the macro and secular tailwind benefiting our portfolio.
And driving new product development, while pursuing selective bolt on acquisitions.
We will leverage our top line expansion with a renewed commitment to excellence throughout all areas of our business.
And we will support this with investments in the further development of our World class team.
Against this backdrop, we will continue to progress towards our goal of $2 or more in adjusted diluted EPS in 2025.
I'd like to conclude my comments today with a reminder of why <unk> is an attractive long term growth investments as detailed on slide 13.
Utilizing our core competency in materials engineering, <unk> serves attractive niche markets with differentiated technology and products.
The low cost structure achieved by our transformation plan will continue to make a positive and sustained impact on our business.
When combined with our strong balance sheet and our free cash flow generation, we have a long runway to create shareholder value by accelerating growth and by committing to excellence in all aspects of our business, while maintaining our customer first approach.
With that also.
Turn the call back over to a load for a few additional remarks.
Thank you Andy.
I want to take this opportunity to thank <unk> employees shareholders customers and the board for their support during the last five years.
I am proud of all that we have accomplished together.
To form the foundation of a strong near and long term outlook that Andy just outlined.
I look forward to remaining a lot for supporter and shareholder.
Now I'd like to turn the call over to the operator to begin the question and answer session. Operator. Please go ahead.
Sir at this time.
If you would like to ask a question. Please press the star and one on your Touchtone phone.
May remove yourself from the queue at any time by pressing the pound key.
Once again that is star one to ask a question, we will pause for a moment to allow questions to queue.
Yeah.
Thank you our first question will come from Chris Moore with CJS Securities.
Good morning, guys. If first of all look very sorry to see you go Andy and Steve Welcome to your new roles.
What's the biggest difference.
<unk> that we can expect from the change in management.
Sure. That's a loaded question, Chris So first of all thank you Bob.
I will start, but then I'll give andy and Steve the opportunity to jump in.
And I think the one thing to keep in mind is that we have a very strong board.
Board that's been in place now for a while and the leadership team essentially remains the same both Steve and Andy have been part of the leadership team.
So while I think in my view the largest change is going to be is the completion of the transformation plan to get the right cost structure.
And truly.
Flipping over to the growth side, and driving incremental growth organically and through bolt on acquisition because for the past four years, we had been.
More focused on the cost transformation and then but we got caught by Covid, but Andy welcome your thoughts.
Good morning, Chris Thank you Luke.
Hello can I wasn't aligned we've worked closely together for the last five years or more so we're having a smooth transition we share a lot of the same values.
<unk> passion and enthusiasm phylloxera Sim.
Similar views on cost and on growth.
From an operational excellence perspective, we've got a strong leadership team. They remain the same and I'm looking forward to working with him and leading them.
Leading all of our employees.
Strategically as I said in my comments, an alert reinforced we're moving now from a focus on cost reduction to growth and I will be looking to accelerate that.
Reinforcing our strong model based on commitment to excellence.
We'll be investing in our people and our leadership so I'm confident we'll have a smooth transition.
Terrific. Thank you I appreciate that you've been addressing certainly in Q1 and addressing inflation with cost pass throughs can you talk a little bit about how that differs from price increases that looks for and what the expectation is you know six to 12 months from now is there is there potential to get back some.
Some of.
Of those you know.
Cost pass throughs.
Sure I'll take that.
Chris So I think when we talk about cost pass through like this is to clarify that I think we are passing through our costs and we are doing that successfully to our customers really it's a bit of only a nominal <unk> ratio on back versus pricing. I mean these are in some cases because of surcharges, but in majority of cases these are price.
<unk> adjustments.
As we look at on the other side and assuming that inflation tapers off and we might even see some material.
Inflation come back or deflation coming through.
And quite a few cases.
We may have to give it back but I think in a large majority of the cases.
We will look to be able to keep it because it's not just a material. We also face inflation from labor cost perspective inflation from a freight perspective.
So it's too early to tell.
One thing to keep in mind is that our contracts often.
<unk> worked against us when the costs are going up but they work in our favor when the costs are going down because the pricing is set based on lagging 12 months. So I think from that perspective.
And when the cost starts going down we will at least see a PDR, where we'll see the reverse of what is happening now.
Yeah.
Got it I appreciate that last one from me revenue growth guide stays at 12% to 20% for the year, what what's the volume assumption within that growth.
Thanks, Chris I'll tell you that I think it's similar to what we said at our Q4. So you could imagine around half of the total growth is down to volume and half of it approximately is down to price and theres a little bit of.
Packed from the Sci acquisition this quarter, but as we said in the in the call that that sort of goes away as we move through the year. So you can assume around 50 50.
Got it I appreciate it I'll jump back in line.
Thanks, Thank you.
Our next question comes from Phil Gibbs with Keybanc capital.
Hey, good morning.
Thanks, Phil.
Okay.
Pretty pretty big dichotomy between electrons price cost benefits in gas cylinders price cost headwind I'm sure again, a lot of that is timing, but should we think the the level of price cost benefits in elektron at the margin normalize.
And the gas cylinders business.
Normalizes as well.
Yeah.
Yes, I think Thats, a fair way to look at it it is only timing in our view and I think it's a fair assumption to say that both will normalize now in elektron side I think we are benefiting from pricing and a bit of mix that's working in our favor too.
But I would say by the end of the year, both would be down to more normal levels with elektron keeping some of the gains in gasoline are recovering from the current situation.
Okay.
<unk> was surprised to see cylinders look like take a step back I'm sure. Some of that was due to the customers.
Timing in some of the supply chain inefficiencies that youre talking about but.
As the cylinders business is expected to be be relieved of some of those some of those challenges as the year goes on it just look like a low low low quarter, a low watermark for top line.
Yes, it was.
Some of it was expected and somewhat a little worse than expected to be honest, Phil and it was all driven by supply chain constraints and in some cases the supply chain constrains were internal make to us in other cases, the supply chain constraints, we're at the customers on other products, which means they delayed their orders as well.
Overall, I think that what Steve and I said earlier, we remain very confident in our full year outlook, because we have been able to secure appropriate our carbon fiber our customer supply chain conditions are easing and our order backlog remains very healthy in addition, the price versus inflation.
Dynamics within cylinders starts catching up.
As you know annual pricing is set based on.
The lagging 12 months of price index, so putting all that together, while the Q1 results.
On its own May look concerning we remain confident about full year outlook and the long term growth prospects of cylinders.
Now as <unk>.
How should we think about cylinders normalizing in terms of those those spreads as the year progresses or is it going to normalize pretty quickly in the in the second quarter.
No I think it'll be longer so I think it's end of the year progresses I think by <unk>.
End of the year. So I think if you think about Q1 next year, we would expect it to be now.
Much better balance in fact in favor, but keep in mind that also depends on how inflation plays out I mean, it's been a very volatile market.
If inflation starts coming down then it would normalize sooner, but current level, we are not banking on inflation coming down we are banking on our own cost pass through actions.
Okay. Thanks very much.
Thanks Pam.
Thank you. Our next question will come from Craig Irwin with Roth capital.
Hi, Good morning, and I also want to express my welcome to Andy was great to meet you recently and look.
Sad to see you go hopefully our paths will cross in the future.
I wanted to start off.
And maybe a little bit deeper on the gas cylinder side.
There's a little bit of chatter in the market about potential Christian very large hydrogen projects in Europe .
And then there's an obvious acceleration.
In North America, and hydrogen markets and you do have a very interesting supply position. There can you maybe frame out for us the scope of opportunities that you are looking at right now.
Maybe if you can talk about that.
A little color on the character of projects that could be coming to bid.
And how important this is as a driver for the company over the next couple of years.
Sure.
Thanks, Craig first of all thank you for your wishes.
Thank you for your ongoing support as we chartered earlier I think Andy would be a great new leader for not for and drive growth, especially given his passion on alternative fuel including hydrogen.
To your broader question in our hydrogen remains very important to US. We are very pleased with hydrogens momentum in U S. So for the past few years. The majority of the hydrogen momentum in terms of sales and backlog it used to be in Europe , but over the past six nine months and especially more recently <unk>.
I'm very pleased with the momentum and U S building up as well so.
So it's no longer Sanofi now some government funded research going on in Europe , but it is truly becoming a commercial opportunity.
To build upon that yeah, even in Europe now that we are done with many of our pilot applications trial applications and trial orders.
We are very excited about the opportunities that are in the pipeline.
Both from bulk gas transportation perspective, and also truly from on vehicle demand remember our focus is mostly on heavy vehicles.
Both of those are very good and positive opportunities for US now clearly we need to windows and we'll win our fair share or hopefully more than our fair share of those opportunities.
But we are pleased with the pipeline in Europe , and we are pleased with actual sales and orders in U S right now.
Overall I mean, this remains an area to invest.
As you know we are investing in new products, a higher pressure cylinders for hydrogen we are looking at doing our own bulk gas transportation integration and building those modules ourselves and we are investing in new design resources as well so very good opportunity for us.
Excellent that's really good to hear so on your last call you were quite conservative about expectations for <unk>.
Given high gas prices and.
Global shortage of natural gas I guess, particularly in Europe .
It seems like there may be could be a little bit of an opportunity for that product.
Has anything changed.
So you now have a very cautious outlook for Sally Mag or is this something where you think you could see a little a little sales acceleration over the course of this year.
Sure.
Good question, Yes, I mean, clearly our outlook on selling magazine better given the high oil pricing in the current dynamic.
And last quarter to be fine.
Cautious, but also trying to remind people that it's.
It's one of our product lines, we have many other product lines, because you know oil pricing goes up and down but in today's environment. We are definitely more bullish on solid back then we were at the end of Q4.
And our order rates and sales rate support a better outlook than we would have put otherwise.
We are very pleased with our ongoing partnership and success of our new products, including products that we use in the Permian basin because.
Because historically that was the area, where we had lower penetration. So penetration is good new products doing well and the macro in terms of oil prices in the fever. So I think it's all good in the solid Mac front, but it's one of our many products. We just got born during the 2018 to 19 change in oil pricing.
So it's a key important product and it's going to be positive this year.
That's good to hear and then last question are there any other products that you would call out is potentially a very interesting this year.
Things that could potentially see strengthening demand.
And maybe even surprised to the upside.
The surprise to the upside from new products. Besides what we've talked about in terms of alternate fuel and oil and gas is likely to be on our defense side. So the two products, which Steve briefly mention one is our new MRE to meals ready to eat which we call the <unk> format.
And also our chemical decontamination kits. So we have new products in those areas that.
That we have launched recently and we expect a good momentum we are seeing good momentum.
But with the current defense situation those things could have more upside, but we're not baking any of that in our forecast we want to make sure that we secure those and then be able to talk about it but I think that's where we'll see.
Side. This year is on the defense side with new products.
Understood. Thanks, again for taking my questions.
Thank you once again, if you would like to ask a question. Please press star one on your Touchtone phone.
Our next question comes from Chip Moore with E F Hutton.
Hi, Good morning, Thanks, first look I'd like to say best wishes and good luck at Lennox.
Well and Andy congratulations on the new role.
Okay.
Telling on that last one you referenced the geopolitical backdrop.
Indications there for some of your end markets.
Can you expand a bit on your visibility into some of that demand that you're seeing that emerge and then.
How are you positioning to meet that obviously, we saw the inventory build is that related.
Or any color you can get us there.
Yeah, Thanks, Hi, our visions and that.
Welcome to lots for family coverage, Andy and Steve are going to be great leaders going forward in the future on the defense side.
Yes, we have seen a lot of momentum we are prepared and some of the inventory build is for that reason, we want to make sure that we have sufficient supply.
Key raw material, including magnesium to serve that demand levels.
But at this stage.
It does not converted to actual orders and I think that's not unusual but we are definitely seeing heightened activity in hydro inaugurate Euro recently seen an announcement about us being awarded the and 295 product contract as well, which typically has been.
Any other time.
Three to six month lag between when those discussions Dod versus when they convert to orders. So we hope to be able to give you more of an update in the Q2 earnings call on where we are positioned and how we stand in terms of order backlog.
Yeah.
Perfect. Thanks for that and maybe just one last one for me Andy Love to get your perspective as an incoming CEO what do you see.
As the biggest opportunities I guess in sort of the medium to long term and then.
What are your thoughts on organic versus M&A, if they differ at all thanks everybody.
Thank you. Thank you chip nice too.
Nice to talk to you.
Yes.
The change from from focusing on cost and the success of the transferred.
Transformation plan, giving us a platform now to really really move on an accelerated basis towards a focus towards growth.
The most exciting thing I think about taking on the leadership of <unk>.
At this time.
Our first priority and our first focus area is on the organic growth so the opportunities within our alternative fuel, including hydrogen as we were discussing earlier is particularly exciting but not just that we have a broad range of new products coming forward, which is going to help with our with our organic.
I see the acquisition opportunity in acquisitions to be around focused strategic bolt on bolt on acquisitions.
Call. It active pipeline of those so I look forward to working with the team on that.
But our key focus over the next few years is that long term organic growth.
Yeah.
Great. Thanks for that I appreciate you guys, taking the questions. Thanks again.
Thanks Chip appreciate it.
Yeah.
Thank you and encore recording of this conference call will be available in about two hours a link to the recording of this webcast will be available on <unk> website at www Dot Lux for Dot com. Thank you for joining US today. The next regular scheduled call will be in July of 2022, when the comp.
Any discussion of second quarter 2022 financial results. This and so Luxor conference call you may now disconnect.
Okay.
[music].
Yeah.
Okay.
Yeah.