Q1 2022 P&F Industries Inc Earnings Call
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You are currently on hold for the P and L Industries, Inc. First quarter of 2022 earnings call.
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Because every time I got good day and welcome to the <unk> Industries, Inc. First quarter of 2022 earnings call. Today's conference is being recorded at this time all participants are in a listen only mode.
Following management's remarks, there will be a question and answer session.
At any time during today's presentation, you need operator assistance. Please press star followed by the number zero at this time I would like to turn the conference over to Mr. Rich Richard Goodman, The Companys General Counsel. Please go ahead Sir.
Thank you operator, good morning, and welcome to Peanuts Industries first quarter 2022 conference call with US today from management are Richard Horowitz, Chairman, President and Chief Executive Officer, and Joseph Molino, Chief Operating Officer, and Chief Financial Officer.
Before we get started I'd like to remind you that any forward looking statements discussed on today's call by our management, including those related to the Companys future performance and outlook based upon the company's historical performance and current plans estimates and expectations, which are subject to various risks and uncertainties that could cause the companys actual results for future periods to differ materially.
Lee from those expressed in any forward looking statement made by or on behalf of the company. These risk factors and uncertainties are described in today's press release under forward looking statements as well as in our most recent SEC filings, Michigan slightly of the company's website, including our 2021 annual report on Form 10-K forward looking statements speak only as of the date on which they are made.
The company undertakes no obligation to update publicly or revise any forward looking statements, whether as a result of new information future developments or otherwise.
I would also like to remind all participants on this call, but as we announced in our April 25 press release as part of our efforts to streamline the conference call brass process.
The company has revised its procedures relating to the questions and answer portion of the earnings conference call eliminating the length of the questions from any particular stockholder or other color together with management's responses to 20 minutes. Additionally.
Additionally, please be aware that during the question and answer session management will only answer questions directly related to the company's results of operations or financial condition linked to the first quarter of 2022, we must insist that you would hear to this procedure.
It will not be entertaining any questions that go beyond the scope of this call and with that I would now like to turn the call over to Richard Horowitz Good morning, Richard.
Good morning, Richard Thank you so much and good morning, everybody. Thank you all for joining US just wanting to discuss <unk> results.
For the three months period ended March 31 22022.
I hope all of you are doing well in this country is the country in the world to try to exit the ill effects of this global pandemic that seems to continue and keep going.
Our thoughts and prayers go out to those who've lost loved loved ones due to this deadly disease.
Our thoughts and prayers go out to the victims of the current crisis in Ukraine.
Zoom come to a peaceful resolution.
During the first quarter of this year of 2022 Peanuts continue to encounter the ill effects of the COVID-19 global Pandemics.
The areas most affected were the ongoing difficulty of our sales force and counter in their effort to gain onsite product presentations.
And particularly in particular hampered the growth of our <unk> business to some degree.
The supply chain disruptions, which we will see about everyday in the news, which cause which caused the continues to cause major delays you were seeing that much needed inventories.
And Additionally, the access of course, we continue to incur most notably ocean freight costs remain at historic highs are adversely affecting our gross margins.
I would like to direct your attention to the Companys press release that we released earlier today, which includes the Companys March 31, 2022 balance sheet statement of operations statements of cash flows and discussion related to the company's results.
The three month period ended March 31 2022.
These results compared to the same period in 2021.
In order to make better use of everyones time, you have to be mindful of the purpose of this conference call I would like to remind all of you of the following.
First as we have done to several previous conference calls and has become a standard practice at this time.
We will move directly to a question and answer session and not restate what is already in this morning's press release secondly, please be aware that we will only be answering questions relating directly to the company's results of operations and financial condition, leading to the first quarter of 2022, we must insist that you would hear to this procedure matters.
We will not be entertaining any questions that go beyond the scope of this call.
And finally, please be mindful of the 20 minute time limit as previously noted, which we plan to enforce to the extent shareholders or what I call as the pertinent questions have multiple questions. Please confirm complete your portion of this Q&A session within a 20 minute time limit and then we will move on to the next question here.
And with that we will be happy to answer any pertinent questions that you may have at this time operator.
Alright. Thank you so much if you would like to ask a question. Please signal a pressing star one on your telephone keypad. If you are using a speaker phone. Please make sure. Your mute function is turned off to allow your signal to reach our equipment.
Again press star.
One to ask a question.
We will go ahead and take our first question from Andrew Shapiro with Lawndale capital management.
Yes, hi.
I hope this won't count against the time here can you repeat what the rules are here on the 20 minutes you want me to just ask.
You May ask your question or back out into the queue. Please.
You just keep calling on your questions Andrew.
And then.
20 minutes later.
Okay.
Alright.
Can you expand on the discussion on the price increases your press release said you instituted at the beginning of April and what are they across both high Tech and Florida pneumatic product lines and how are they impacted your orders and sales.
Yeah, I thought that are in our press release I thought you had said it clearly, but I'll repeat it anyway.
The did the cost increases are like what you see in here every day in the news.
Prices of gas prices up of Ocean freight which are.
Roughly five times.
They ask about cost increases Richard I asked about price increases where do they across both high Tech and Florida pneumatic.
And have they impacted your orders and sales.
I apologize, yes, we've had price increases in all throughout our company NOL is Arthur.
We're asking.
What are the across the board.
Hi Tech in Florida.
Right.
And then mostly it impacted your orders and sales and housing in your orders and sales are or are your customers. Rebelling are you keeping that similar pace you had otherwise said things were kind of weak you know growing hasn't stopped your growth in unit sales.
I I S.
I have not noticed anything sort of negative in that regard Joe you can you can chime in I havent noticed the thing I think people realize that.
It's a way of the world right now so you can add.
Yeah every customers saw this coming they're seeing the same price increases from every competitor so.
At some point could prices get to the point, where it just tamps down demand period for the whole industry sure, but I don't think this round of price increases had that kind of effect.
Okay, and it's not having an effect on market share that you see.
No. That's what we can say, okay, and I think your preliminary comments discuss that you.
Still not getting it into and having onsite visits as much as you'd like.
Has the instances of onsite visiting.
And getting in.
On the P. T G side as well as your North American aerospace like Boeing and suppliers as well as Airbus has any of that opened up at all or is it the same as it was last quarter.
Yeah.
Things have relaxed a bit and it varies from company to company of course.
Each company has its own set of parameters that works for them, but in general I would say.
I mean, if I were to give it given that.
I would say, maybe 60% to 70% of the customers are taking business now Airbus and.
And Boeing do but on a very limited basis, but they still do but.
But we are we are seeing it loosen up a little bit not not not like we wanted to be but better.
And it's actually yesterday.
No I would agree I, just we've never really had much trouble getting into Boeing the issue has been more about the critical people at Boeing.
Decisions regarding new product haven't always been available because they haven't been in the office. So we can get in but the people we want to see aren't always there. So it slows you down a bit.
Okay.
And it is as the doors are opening for the visits.
Is that following and flowing through with your expectations that orders have been and are following.
Again, it depends on the customer.
The bigger customers like Airbus, which are new customers are going to be new customers. There. Its a much much slower process. It's not just like this as I know you know what's not to like.
Like selling a toothbrush.
Engineered products and stuff like that so all of them are a little you know the more engines I would say the more engineered the product is the more.
Have a lag there is.
Joe you want to add I think that yes.
Yeah. That's agreed I would say that we have seen more activity on the P. T. G side because of the fact that it's it's well it is an engineered sale, it's a little bit simpler process.
We are seeing the flow of opportunities grow there as we get out in the field. So we're pretty open about that.
And with respect to P. T. G. In the gears is a decline in orders from a large P. T G customer that partially offset the gains from your acquisition of Jackson gear.
That you see as temporary or more long lasting.
Joe you can answer that yeah, it's it's temporary we've.
We had some technical issues with a product or a product line. We resolve those so we expect those orders to resume.
And yes. It did impact you know obviously it brought down the total number we would have seen a greater impact from the acquisition if not for that.
Sure Awesome.
Regarding Florida pneumatic what's the present status of the large late 2021 home depot order you built inventory for in Florida pneumatic in Q4 that couldn't get shipped out in the March quarter did they get shipped out yet during the present quarter or what is it.
Expected timing.
Yeah, Yeah, it's a it's all shipped at this point, it's all been shipped.
It's <unk>.
The last two or three weeks.
Awesome.
Yes, and regarding the transition of your products and home depot to your new Husky tools that I guess just got shipped.
Over how many quarters or years.
Where the discontinued products being sold by home depot and is this the time horizon around the same duration you would expect your new line of tools to be made for insult to home depot.
Yeah. The short answer to that question is yes.
But Joe you can give more details.
Just yeah I would say this first of all it wasn't a complete reset with every tool being.
Brand, New I think there was.
Don't quote me there was some refreshing of some similar tools or was the discontinuation of a couple of tools adjust.
Upgrades to some older tools it was a bit of everything.
And this happens every four or five years sometimes.
You know you can have parts of lives that change out sooner or later, but.
You know every four or five years and again in this case some of them already even.
Brand new tools. So you know it's just the way you you take a step back you reset the displays you talk to the the brand people there and discuss changes that you might want to make so these things happen throughout the relationship from time to time and there's no set.
Period, when it happens, but it does seem to.
It happens every four or five years okay.
Okay.
As of the March call. In addition to the large home depot order. We just discussed you said the inventory you built up to increase safety stocks was not yet where you felt fully stocked and would still take a few months.
And it's now been a few months do you feel the company is now at desirable levels and have the out of stock problem's been address.
Again, that's a that's a.
Dual product, sometimes issue and other things.
We're not totally out of the woods, but were very from what we're being told we're very very close to being out of the woods. Joe you can add on.
Going forward I don't anticipate any meaningful impact on sales as a result of being short on product right. Okay.
And would you expect I guess over time, the inventory levels would be coming down and cash would be generated or that is going to take a greater visibility and improvement in the supply chain.
No. What you were just saying is accurate Andrew Okay. We are we are forecasting that the inventories will be coming down pretty you know pretty.
Pretty dramatically in the short term.
Can you expand on the change in the distribution channel strategy at Florida, pneumatic that you're employing in the automotive sub sector and referred to in the press release and is it a temporary or more.
And the change in the strategies temporary and more and what's more long lasting impacts in both revenues and well as margins.
I'll, let I'll, let Joe answer that.
Short answer again is it's not a short term thing it's how we're moving forward with Joe you can go ahead, yes, so up until some time last year.
We would sell product to Amazon.
They would take ownership of the product title of the product and fulfill orders sometime last year, we started working with a third party.
Selling them the product who would burn worked with Amazon to fulfill orders the product is still fulfilled by Amazon, but theres an intermediary there are certain things that this intermediary provides to us and our partnership that are that are positive to us. So it's just a different.
A different way of doing it it doesn't really affect the consumer and it really anyway. It just a little easier.
To manage the situation with a third party.
And I'll, let you go.
I asked this question to Andrew but are the reason we ship.
The home depot in the second quarter was because that's when they wanted it and that's and we knew that right from the start we just we didn't we didn't want to take a chance and not get the material in and get off on the wrong foot with everything going on with the shipping and all that stuff. So we that's why we ended up taking it out a little bit earlier.
Mhm Okay.
You talk about a decent growth in the OEM high Tech area can.
Can you discuss any new products or your experience in the OEM area that you've introduced where.
You see the increased shipments to two large customers is that something transitory or more long lasting.
You're talking about in the gears business or in our OEM business I'm sorry OEM.
Oh go ahead Joe.
Well, there's nothing new we you know we've expanded our relationship with with our larger our largest customer there, but it isn't.
It's not a new customer into the market isn't even particularly new for us.
Right. It's just we're just doing more business in other products. That's a path that we can that we can accommodate them with.
As we as weird as the relationship grows they have more confidence in our quality and our delivery schedules. So they give us more business different things.
Okay, which is not insignificant.
It's not insignificant.
Right.
The.
On the prior call there was approximately $3 million.
Comprised I think of two big tax refunds or mud.
About a dollar a share that.
That is coming to the company over the course of the next year and a half or so.
What's the current visibility on the timing and receipt of those two cash payments.
Okay again, I'll, let Joe give you the specifics of it but.
There's nothing changing in terms of the timing of it except that we did get the the government refunds for list for the prior year or we got that about four or five weeks ago.
That was a million drove what was 1 billion three I believe.
Let's call it a million 350, and it was for the 'twenty 'twenty return.
Right and that's received right the others are still to the answer.
That's the N O L refund.
Essentially yes, yes.
And so that we are out of the 3 million and then the rest is the primarily employee retention credit, which youre not going to see until 2023.
Yeah, well thanks credit.
That's right Joe.
That credit was part of the 2021 return so it's not just that number obviously, there's the rest of our resolve that affect that figure, but yes that we are expecting a refund sometime next year.
Okay, well that I don't necessarily have to ask about it next quarter.
I'll put it off so that's why I wanted to wait right.
Okay.
If we get it we'll tell you.
Okay and.
Capital allocation wise is the beautiful focus more towards making new acquisitions to permanently lower the company's average debt levels.
Or returning capital to shareholders with the reinstatement of the dividend rate indoor selected stock buybacks.
It's all it's all it's all it's all on the same Sol in the same plateau and me we look at them as we as we've discussed we look at that every time, we have a board meeting or board discussions and we and we balance our.
Our company needs in terms of cash.
Cash buyback dividends and if there's a if there's a company that we're looking to buy it's going to be accretive and help us our marketing wise into the bottom line.
We would consider that as well.
I don't know if they're mutually exclusive.
But as I said as I said at the last call and I'll and I'll say it again now.
We review that we will do that very regularly.
And you know where we.
We don't need it.
I say this respectfully, we don't need to be reminded because we know exactly what what is needed and what is required.
We want to do it's just a question I have is when we feel that it's a comfort to do it we don't want to put ourselves in a position that we are now we have a dividend and then we have to discontinue it again, we don't want that to happen. So when we when we if and when the time comes that we do a dividend you can be rest assured that our plan is to continue with illness doctors godforsaken unforeseen.
Things developed by Catherine with the pin down okay.
I want to move on because I know I only have about 10 more minutes, maybe a little less is the.
So I'm glad they're watching the time or so closely on previous calls you said you were still very actively looking at tools businesses aerospace automotive industrial.
Can you update us on the focus of the acquisition process is that broad based or have you narrowed in on areas that youre looking at and.
Do you have the bandwidth right now to even do that as you are integrating Jackson.
What we liked the gear and I think we said this in the press release also we liked the gear space.
There are definitely big player in that space now our business is with it with this acquisition essentially doubled.
And it's not a it's not a business of gigantic companies, so where we're a real factor in that business now and we have a very wide range with our last two acquisitions. So I think it's given a choice that that is an area that we feel very comfortable.
Expanding having said that if something comes up that base to our other businesses tools et cetera et cetera.
Get them as well.
Okay.
In the aerospace side.
You had a while ago, you had jiffy and new math Hicks.
Acquisitions, and you were had the opportunity you know you've got a full suite of P. N F tools, including new ones that can serve aerospace from either Florida pneumatic.
Jiffy Hy Tech Pneumatics all of these various things and you're ready to present that once you were able to get into the facilities and as you described.
Get into the right purchasing people for the long engineering process.
Do you maintain that high level of confidence that that these tools that you had developed.
In the sense of it had to be deferred at getting into them.
That they are still somewhat state of the art.
Yeah.
They you have an attractive opportunity.
That they're likely to.
To glom onto in their long engineering cycle.
There's something in advance store enhanced about your tools versus someone else's.
I think we're fine I think what part of that Joe do great.
Yeah, not only hot fine, we we have never really.
Completely stopped working with the technical people.
At Boeing and Airbus on thing. So you know yeah, we're very state of the art because we're talking to them right now about things so I'm not worried about us falling behind.
Right Okay.
You just got to be able to get into them.
Yes, yes, alright.
Well I'd like to perhaps reserve the extra two minutes for next quarter's call I'm done.
[laughter]. Unfortunately, we don't do it we're not that's not our plan, but if any other questions you want to ask Andrew. Please do we have two minutes left happy to happy to ask them to you know I'd love to yield my two minutes to someone else in the queue since they've been so patient wait okay.
Alright, Thank you stay well and stay safe.
As a reminder to the audience that is star one to ask a question do you find your question has been answered you may remove yourself from the queue by pressing Star Kim We'll go ahead and take our next question from Timothy Timothy stable. Please go ahead.
Good morning, I am four 5% of the company roughly.
Richard You said that we look at capital allocation all the time, obviously looking at this earnings report.
We've got a decline in earnings the company hasn't made money in years.
<unk> had a strategy in place yet we had a good robust discussion about that at the last conference call.
In the context of a Boeing Max out.
The volatility used to say the least in the crude oil market, but I think it you know when the subject of capital allocation comes up I think that you should be as concentrated as possible because we havent made money for years here and I think it bears asking you and not Joe two two.
To reassert if you can.
Ria search the imperatives and the compelling nature of the company you're building because shareholders have been suffering with no profits for for years here and I've been excited at times, Okay, they've got a strategy, but it hasn't come through and so when we look at you guys continuing as you are.
Hoping for a dollar a plethora of earnings per share of whatever it is I would hope for versus the notion that you could possibly sell this can be for upwards of three times. The current stock price as far as capital allocation goes the shareholders deserve the outside shareholder deserve to know that the board is robustly looking and considering those things are not.
Just the fact that the CEO needs to make wanted to have $1 billion a year each year.
So I'm not trying to be nasty, but these shareholders and I as a 4.5% owner of asthma you right now for reassurance that.
How these strategies are as compelling.
In your own words, what makes them so compelling that youre going to make money for me and all of us because we've been waiting a long time and I hope you can appreciate that and I know you can appreciate that thought I'd like to hear your response.
Yeah, Tim and all due respect I believe that's an earnings question. That's an earnings the earnings question.
So I'll go there.
Let me answer the question.
I believe if I don't if I don't if I'm not correct I would be surprised.
Joe you can tell me, if I'm wrong, but I think before the pandemic. The company was making profits every year and that's two years ago and my right Joe.
We were let's just go back in time, a little bit the company was profitable in 2018, a 2019 was a.
Transition year, we have we made a lot of money in 2019, but we had a big sale of an asset there.
We were doing were down to two companies right, we've got a oh.
All company, Florida, pneumatic and we've got high Tech, while Florida pneumatic was doing quite well.
We're engineering, a complete turnaround of the Hi Tech business beginning in 2019 for those of you that remember there was a time when most of the high Tech physics business was large heavy duty impact wrenches sold into oil and gas industrial areas that business has gone mostly to Chinese tools.
So that was our business. So as we had brought in a new President Bakken 17 18.
We tried to we tried and have successfully engineered a turnaround of that business, but the profits that we had which were quite large in terms of margin are not as robust in the new business worried there nice they're healthy.
But we're not finished with that turnaround and you know on a consolidated basis, our it's going to take a little longer to get there. So I don't think there's anything wrong with the strategy and then of course I don't have to remind everybody about the elephant in the room that they don't make 737 Max is at the pace. They were making them that was a huge customer for us.
With the highest gross margins in the history of the company.
So you know until that comes back and we have every believes in reason to believe it will.
That's gonna have a huge impact on the bottom line. So I don't think there's anything wrong with our strategy we've changed up our strategy on the the Internet product, we have a robust industrial product line that I think is poised to take advantage of the infrastructure project. We've got huge opportunities in rolling up gear companies are with with the Hi Tech business. So.
I don't think there's a darn thing wrong with our strategy, but we're not finished okay. So.
So I don't know how else to answer that but I think you will see those numbers come.
Yeah, and Tim Okay, Let me know.
I'll just answer a little further just to you.
None of US can know none of us are.
All of Crystal balls, we're not Superman and I only mean that in a respectful way so we can't.
Sure you have anything.
Anybody in the World can sure anybody in the world of whats going on in craziness, but I say, what Joe was saying is absolutely correct.
I think that I think are without getting very specific our backlog in both of our companies right now is extremely healthy extremely healthy as.
Is as good as I can remember it in several years.
And the when the pandemic hit most everybody lost money here, we were and we were no different but before that we were rolling anything we're doing just fine and we would have continued and now we brought in during that time, we bought another company now which is strategically I said in the press release strategically is a very good very good fit for us and it's paid and we're seeing the dividends already.
<unk> been paid off and we are very comfortable with that.
We're not we're not comfortable being an unprofitable company and it's only because of the pandemic and things are absolutely turning around I don't know if that makes you feel any better or any worse, but that's you know.
And I think it's a fair question you're asking.
Given the what I think is the right answer so I think they're very answers I. Appreciate the color. That's good color. That's good commentary I think shareholders deserve at least to know frankly do you guys have a goal or a or a belief in any case not a projection.
That the strategies can earn what any good solid businessman would want to earn which is the double digit double digit eventually whenever a double digit return on equity for the investment made.
Can you reassure the shareholders that they get.
That's perfect.
<unk> not projected you'll journeys don't read that the attorneys don't need to be about just that you'd rather good faith, that's an expression of good isn't it.
As an expression of goodwill.
Is that.
I'm sorry go ahead.
But in all due respect.
We're not we're not looking at you in the eye, we're not we're not doing any of that so we're very comfortable with where we are and we think if we were not going to be making money. We wouldn't be here, we wouldn't be the company more banks or banks still confident we just have new agreement as I'm sure you've read about it.
Essentially of our agreement everybody feels very comfortable with where we are our advisors Our board management, where we're on the right Road and that's the best I can tell you I can't promise you well the bags the bank the.
The banks are just happy making money off the company up as much as anything as long as they can get their money back. So like the most important thing is is that the faith and the good faith with with the shareholders and it's really the outside shareholder base, but I appreciate the color and thank you for it and Oh, We've got three my time with you. Mr. Shapiro has another question to follow up on I don't know, but.
Other shareholder. Thank you. Thank you very much.
Okay. Thank you, Tim and stay well.
Thank you.
We can go ahead and take our next question from John Adams with Robert Baird.
Hey, guys. This is more of a comment and you can comment on it or just listen in and sleep on it.
I've, followed this company and for.
A handful of decades, you know did you.
2020 years been a shareholder for many years and Tim's comments and I've never spoke of the tip of my life for met him you know I I a couple of weeks ago paging through some of your financials and I get to the piece on the ownership.
Of your company and I know you guys are.
Joe and Richard you guys wallets are on the table in a large way and then I started looking at some of the other board members where have been around since the mid seventies.
And most of these folks I own substantially more than these guys that is received you know probably over the years several hundred thousand dollars. It would be encouraging to see these guys. Maybe it's a message to these folks hey put your money where your mouth is and then Tim's last comments.
If the corporate finance.
Environment is such where this company is truly worth those kinds of multiples why would we not if nothing else consider it.
And where he.
If a company is worth 15 Bucks a share.
You know there was execution rest to go earn a dollar and get it to 15 Bucks a share in the market. So.
A longtime shareholder patient Guy feel like you know some of the things that Tim had mentioned hold some merit and just wanted to make those comments.
I'm I'm I'm at a loss as to what what the question is if you're running well. The question was here it was more of a comment.
It's disappointing to see your board own so less modest you two guys are there's a handful of folks that own de minimis amounts of shares after being on the board since the mid Seventy's 2004, 2000 and for 2012 are you know and there's been plenty of all.
Tony These to buy right now for example, and my question is why would the management of this company.
It who's fiduciary responsibility responsibility is to maximize shareholder value go do a chart on this company last 20 years it hasn't done well at all probably got down to it the things worth 15 to be to be more but you know to the point.
These were 15 Bucks a share and this this environment.
You know why would the board not consider are seeing what the company is worth.
Well of course, Youre, not youre not privy to any discussions that we have at the board level or even individually. So I guess, that's a question I can't answer that question, but.
Now I don't know I really don't know what to say about that Ah I would not we can't we can't tell the board members what to what where they spend their money.
And by the way I don't know of anybody who's been on board since the seventies, except for me.
I can think of.
Kenneth Sheriff I don't think.
Not in the seventies that's correct.
Okay, well, maybe I wrote my notes.
Yes.
Long tenured nonetheless, but maybe you just said.
I understand that what we look at the way the gel and I look at it.
Our board members are really very tuned into our business and understand that very very well.
And if they can have eight whatever their personal reasons after theyre not blind.
And the company that I found.
But what's the pocket book and tell them.
You know that's not what I can do.
Look at the value that they give us and each one of them has a value to us.
So we will replace that person and we have replaced people in the past.
When that comes.
And more than that when you know when and where we feel the company is in the evaluation and the time is right. We would always we would consider anything you know right. So.
So I can't really comment on M&A or.
That kind of stuff.
As you know.
Loaded questions I can't answer, yes, well, hey, just thanks for listening and I appreciate it okay with that.
Bye bye.
Okay.
All right. We'll go ahead and take our next question again from Andrew Shapiro. Please go ahead.
Oh, I'm, sorry, I I already used up my time, but.
I didn't know this thing was turned off on it.
Okay.
Okay.
Yeah.
Okay. We can go ahead and take our next question again from Timothy Davis.
Actually I have no further questions I would just I didn't I got into the call late so I wasn't clear on what the exact rules, where so I I am done gentlemen, thank you for the discussion and I Hope you are considering what the what we all have this what we have to say thank you for your work.
Alright, thank you.
All right well. It appears there are no further questions at this time, Mr. Horowitz I'd like to turn the conference back to you for any additional or closing remarks.
Sure. So I'd like to thank you all for taking the time today to be on the call with us and.
Look forward to speaking it on the Q2 numbers when they when they come out.
Sometimes during the summer, but in the meantime, we hope that everybody said stay safe and well.
Have a good day everybody.
And this concludes today's call. Thank you all for your participation you may now disconnect.
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