Q3 2022 Standex International Corp Earnings Call
<unk> advisors. Please go ahead. Thank you operator and good morning. Please note that the presentation accompanying management's remarks can be found on the investor relations portion of the company's website at www Dot <unk> Dot com. Please refer to <unk> Safe Harbor statement on slide two matters that standex.
Management will discuss on today's conference call include predictions estimates expectations and other forward looking statements. These statements are subject to risks and uncertainties that could cause actual results to differ materially you should refer to <unk>. Most recent annual report of Form 10-K, as well as other SEC filings.
Public announcements for a detailed list of risk factors in addition.
To remind you that today's discussion will include references to the non-GAAP measures of EBIT, which is earnings before interest and taxes, adjusted EBIT, which is EBIT, excluding restructuring purchase accounting acquisition related expenses and onetime items, EBITDA, which is earnings before interest taxes depreciation and amortization.
Adjusted EBITDA, which is EBITDA, excluding restructuring purchase accounting acquisition related expenses and onetime items EBITDA margin and adjusted EBITDA margin. We will also refer to other non-GAAP measures included adjusted net income adjusted operating income adjusted net income from continuing operations adjusted.
<unk> per share adjusted operating margin free operating cash flow and pro forma net debt to EBITDA. These non-GAAP financial measures are intended to serve as a complement to results provided in accordance with the accounting principles generally accepted in the United States Standex believes that such information provides an additional measurement and consistent.
Oracle comparison of the company's performance a reconciliation from such non-GAAP measures to the most analogous GAAP measures may be found in the company's earnings release issued yesterday on the call <unk> is chairman President and Chief Executive Officer, David Dunbar, and Chief Financial Officer, and Treasurer at Amira Star Civic.
Thank you Gary Good morning, and welcome to our fiscal third quarter of 2022 conference call.
And then some continued in our fiscal third quarter with solid financial performance and a healthy pipeline and growing end markets and good execution by our global teams.
Our reposition business portfolio is increasingly aligned with sustainable global trends and we are expanding our range and penetration of innovative solutions.
I want to thank our employees, our executives and the board of directors for their continued dedication and support.
Now if everyone can turn to slide three key messages.
Revenue and consolidated adjusted operating margin continued to increase both year on year and sequentially with order strength share gains and productivity initiatives are significant contributors.
<unk> revenue growth was broad based with four of our five segments, increasing year on year and sequentially in particular, the electronics segment delivered record quarterly sales of nearly $80 million. We continued to see strong demand globally across many of our product lines.
<unk> backlog realizable under a year of approximately $151 million at the end of the third quarter represented a 57% year on year and 5% sequential increase.
In addition, the specialty solutions segment revenue increased approximately 20% year on year with continued positive trends in foodservice equipment markets returned to pre COVID-19 levels.
Consolidated adjusted operating margin of 13, 8%, our fourth consecutive quarter of record margin.
It was 160 basis point increase year on year, and 20 basis point improvement sequentially.
From a growth perspective, <unk> is aggressively pursuing new opportunities for applications in sectors with attractive growth profiles, where our technology and expertise into our significant competitive advantages.
End market trends in sectors, such as electric vehicles renewable energy commercialization of space and defense remained strong while foodservice and commercial aviation continued to recover.
Total company backlog realizable under one year of approximately $267 million at the end of the third quarter represented 51% increase year on year with strength of the electronics specialty solutions and engraving segments and a slight increase sequentially.
We continue to strengthen our customer value proposition through strategic acquisitions in March we announced the purchase of sensor solutions, a privately held Colorado based designer and manufacturer of hall effect sensors products. This is a complementary technology enhancing our existing solutions and high value sectors, such as electric vehicles and <unk>.
Real automation and medical end markets.
We're already seeing substantial sales synergies as we introduce our joint product offerings through our sales channels.
In addition, our previously announced solar panel project with Enel is progressing as we planned site in Brindisi, Italy has been selected for the pilot production phase.
As we navigated a challenging and dynamic operating environment, we continue to implement new tools and processes in our operating playbook.
All businesses have added more frequent bottoms up reviews of current and projected cost to respond rapidly to inflation with appropriate productivity and pricing actions. These efforts are complemented by an active calendar of lean initiatives and ongoing strategic sourcing actions.
Well, we are seeing signs of improved efficiency in <unk> North American engraving operations. We are also announcing today the additional actions globally, which will result in $2 million of annualized cost savings.
In the electronics segment, we are on plan to complete our Reed switch material substitution project in this quarter, reducing our exposure to future rhodium inflation.
In line with our disciplined and balanced approach to capital allocation, we announced today, a new $100 million share repurchase program.
Formula continues to drive a growing number of exciting new business opportunities and we see significant opportunity to further shareholder value creation.
<unk> balance sheet strength, and consistent cash flow generation position us well to execute on this program.
Adam and I will discuss our financial performance liquidity position and capital allocation in greater detail later in the call.
Regarding our financial outlook and fiscal fourth quarter 2022, we expect a slight sequential decrease in revenue and operating margin, but an increase year on year.
<unk> quarterly decrease primarily reflects the financial impact of the COVID-19, Lockdown in Shanghai, China, which we currently estimate will differ sales of approximately 7 million to $9 million from our electronics segment from the fiscal fourth quarter 2022 into the following quarter.
<unk> fiscal 2023, we are well positioned for further revenue and margin improvement at end market trends remained strong our new business opportunity pipeline continues to grow and our focus on continuous improvement through ongoing productivity and efficiency actions become further embedded in our segments.
Our outlook assumes a continued macroeconomic recovery.
Now please turn to slide four and that will begin to discuss our segment performance and outlook beginning with electronics.
Segment revenue of $80 million increased approximately $15 million or 23% year on year, reflecting broad end market strength across all geographies, including renewable energy electric transportation solar and military aerospace markets.
The electronics segment had strong operating leverage within approximately 24% segment margin, resulting in $19 million and adjusted operating income or <unk>, 56% year on year increase.
Due to revenue growth pricing and productivity actions.
We continue to enjoy a favorable mix between well established relationships with new customers first EU sales from new business opportunities are forecast to be approximately $17 million in fiscal 2022.
37% increase year on year, and our NPL funnel has grown to approximately $65 million and.
The 10% increase year on year.
The picture on slide four highlights a concrete example of how our customer intimacy model creates lasting deep relationships.
In this case, an initial signal application in 2018 opened the door to future opportunities expanding our relationships over 10 applications and $4 million of annual sales.
Regarding our fourth quarter fiscal 'twenty two outlook, we expect a moderate sequential decrease in revenue and operating margin, despite our growing backlog and strong end market demand.
Headwinds from the COVID-19, Lockdown in Shanghai, China will push some sales into the following quarter.
And we will be only partially offset by continued strong demand across key end markets.
Please turn to slide five for a discussion of the engraving segment.
Revenue of $37 million increased just over 3% year on year due to positive trends in North America and soft drink demand.
Operating income of $5 $7 million grew 27% due to volume growth as well as efficiency and productivity actions.
Meanwhile, sales of approximately $15 million increased nearly 14% year on year due to positive trends in software and tools laser engraving and tool finishing.
The picture on slide five highlights a significant <unk> opportunity with the recent customer through our one partner solution. We are able to offer a comprehensive solution on a global basis from design prototyping and execution of the final product a significant competitive advantage in this case, we designed the texture in Europe , and then delivered the engraving with our customers.
Chosen toolmakers in Asia.
In regard to our fiscal fourth quarter outlook, we expect a slight sequential decrease in engraving segment revenue and operating margin due to the timing of projects and geographic mix. We also expect continued growth in our soft cream offering.
Now turning to slide six the scientific segment.
As expected scientific revenue of $19 million decreased approximately $5 million year on year, or 22%, reflecting lower demand for COVID-19 vaccine storage, partially offset by sales in pharmaceutical clinical laboratories, and academic institutions and markets.
Operating income of approximately $4 million decreased approximately.
Approximately $1 6 million or <unk>, 28% due to lower volume and higher freight costs, partially offset by pricing actions.
As highlighted on slide six the pace of new product introductions and scientific is steadily increasing the scientific segment is the first in the industry to launch stability and temperature test chambers with natural refrigerants and variable speed compressors with a patent applications pending.
In our fiscal fourth quarter sequentially, we expect revenue to be similar in operating margin to decrease slightly we expect strong demand from smaller regional pharmacies in doctors' offices to offset lower sales from large national pharmacy chains.
Our new product development effort remains very active positioning us well for future new sources of revenue with a focus on innovative proprietary technologies.
Turning to the engineering technologies segment on slide seven.
Revenue of approximately $21 million increased $1 million or nearly 5% year on year on continued growth in commercial aviation defense and medical end markets. This was partially offset by the absence of the previously divested and genetics business, which contributed approximately $4 million in revenue to last year's third quarter.
Sure.
Operating income of $2 million increased approximately $1 million or 87%.
Reflecting volume growth and project mix.
As highlighted here engineering technologies is expanding its European presence pictured are in aluminum tank solution delivered to a large European spacecraft manufacturer and an example of <unk> titanium hot forming efforts at our spin craft UK site.
Besides a significant technical and market expertise, we offer a cost effective local manufacturers solution for the fast growing European space sector.
On a sequential basis, we expect fiscal fourth quarter revenue to be similar to slightly higher due to strength in commercial space as we secure an increasing number of new business wins.
We expect a slight to moderate the increase in operating margin due to the leverage associated with volume and productivity initiatives.
Please turn to slide eight specialty solutions.
Specialty solutions revenue of $32 million increased to just over $5 million or 20% year on year due to growth in foodservice equipment and refuse and markets.
Operating income of $3 6 million decreased approximately $600000 or 15%, reflecting the impact of material inflation and increased freight costs, primarily in the hydraulics business, partially offset by volume growth and pricing actions.
Order trends were strong with specialties backlog realizable under a year of $48 million, increasing approximately 170% year on year and 7% sequentially.
Pictured on slide eight reflects our recent redesign of our successful package X cylinder to further improve its operating life and.
Fiscal fourth quarter, we expect a slight sequential increase in revenue and moderate improvement in operating margin.
<unk> increased production levels at the hydraulics business unit and solid demand in display and merchandising, which we expect to further leverage through pricing and productivity actions I will now turn the call over to adamant to discuss our financial performance in greater detail.
Thank you David and good morning, everyone first I will provide a brief summary of our fiscal third quarter of 2022 results.
We delivered another quarter of strong organic growth and operating margin expansion effective in managing challenging inflationary and supply chain environment.
Organic revenue growth of approximately 14, 5% year on year reflected record sales at the electronics segment supported by continued healthy end market trends.
We ended the quarter with an overall book to bill ratio of approximately $1 five.
In the quarter, where the electronics segment had record sales book to Bill for this segment was still about one indicating continued end market strength.
Adjusted consolidated operating margin of 13, 8% in the quarter was another record quarterly result, increasing 160 basis points year on year, and 20 basis points sequentially as we effectively leveraged volume growth price and ongoing productivity actions.
We were also very active with respect to our capital allocation priorities acquiring SaaS solutions, continuing to repurchase shares and declaring our 231 consecutive dividend, while generating free cash flow and further strengthening our liquidity position.
In summary, we are well positioned for continued profitable growth and market trends and our new business opportunity pipeline remains strong.
And we have an active funnel of croda.
Activity and pricing actions to effectively address deflationary challenges and manage our supply chain.
And your $100 million share repurchase authorization reinforces our substantial financial strength and significant opportunity for further shareholder value creation.
Now, let's turn to slide nine third quarter fiscal 2022 income statement summary.
On a consolidated basis total revenue increased nine 9% year on year from $172 2 million in the third quarter of 2021 to $189 3 million this quarter.
This reflected organic revenue growth of approximately 14, 5% year on year with strength at electronics and specialty solutions segment.
There is a sensor solution acquisition contributed approximately <unk> 4 million of sales in the quarter.
The sales increase was partially offset by the Friday divestiture of the generics business, which contributed approximately $3 9 million in revenue in third quarter fiscal 2021, as well as a two 6% impact from foreign exchange.
On a year on year basis, our adjusted operating margin increased 160 basis points to 13, 8%.
<unk> operating leverage associated with revenue growth and radar the price and productivity actions.
Sally offset by material inflation and increased freight costs.
As expected our tax rate was 24% compared to 24, 9% in the third quarter of fiscal 'twenty one.
We expect our tax rate will be in the low 20% range in our fiscal fourth quarter and approximately 24% for fiscal 2022.
Adjusted earnings per share were $1 54 in the third quarter of fiscal 2022 compared to $1 19, a year ago, and approximately 29% growth year on year.
Please turn to slide 10 third quarter 2022 free cash flow.
We reported free cash flow of $8 5 million in the third quarter of 2022 compared to free cash flow of approximately $12 4 million in the third quarter of 2021, and we expect on a sequential basis that our free cash flow generation will strengthen in our fiscal fourth quarter.
Next please turn to slide 11 for a summary of <unk> capitalization structure and liquidity statistics, which remain very strong.
Status had net debt of $65 8 million at the end of the third quarter compared to $52 5 million at the end of the second quarter with the sequential increase primarily due to the purchase of sensor solutions for $9 9 million in March.
Our net debt for fiscal third quarter of 2022 consisted primarily of long term debt of $199 7 million and cash and cash equivalents totaling $130.
$9 million with approximately $100 million held by foreign subs.
We repatriated cash of approximately $5 million of Forex option of third quarter, bringing the fiscal 2022, a year to date total to approximately $20 million.
We expect to repatriate a between $30 million to $35 million in cash in fiscal 2022.
We ended the third quarter with approximately $300 million of available liquidity.
In addition, our net debt to adjusted EBITDA leverage ratio was approximately <unk> five times with a net debt to total capital ratio of 11, 2%.
In terms of capital allocation. Besides the SaaS solutions acquisition, we repurchased approximately 112000 shares for $11 $9 million in the quarter with a new $100 million share repurchase authorization announced today and becoming effective may 10th.
In addition, we declared our 231 consecutive dividend of 26 on April 27 on approximately 8% increase year on year in fiscal 2022, we expect approximately $25 million in capital expenditures.
I'll now turn the call over to David for key takeaways from our third quarter and closing comments. Thank you Adam here.
If everyone can please turn to slide 12 for a discussion of key takeaways.
We are seeing consistent improvement and <unk> financial results supported by a strong portfolio of high quality businesses increasingly aligned with sustainable global trends and delivering an expanding range of innovative solutions.
Our new business opportunity funnel is robust we are winning applications and sectors with long term healthy growth prospects, our deep technical and applications expertise combined to deliver compelling customer value and attractive financial returns for standex.
In regard to the challenging operating environment, we continue to introduce new processes and tools to effectively manage inflationary trends and further drive strategic sourcing and productivity companywide.
Our disciplined and balanced approach to capital allocation is supported by a strong balance sheet and consistent cash flow generation, our new $100 million share repurchase authorization reinforces our significant financial strength and opportunity to further enhance shareholder value.
We are approaching fiscal 2023, well positioned for revenue growth and margin improvement.
Operator, I will now open the line for questions.
Thank you we will now begin the question and answer session.
I'd like to ask a question. Please press star one on your Touchtone phone.
We are using a speaker phone please.
Please pickup your handset before pressing the keys.
The majority of your question. Please press Star then two.
We will pause momentarily to assemble our roster roster.
Ladies and gentlemen, our first question today comes from Chris Mcginnis with Sidoti <unk> Company.
Please go ahead.
Good morning, Thanks for taking my questions and congrats and nice quarter.
Catherine.
Thank you.
Can you just maybe talk a little bit about how well youre handling and kind of the inflationary environment, where you're seeing the most pressure and can you also comment maybe on labor as well. Thank you.
Yes, Greg.
Question very pertinent we feel like we've got a head start on inflation because you remember a couple of years ago, we were slammed with.
Really dramatic increase in rhodium in our electronics business and they had to completely revise.
We do issue quotations, how often the update the price list the level of approval.
On the quotations.
And so in the last couple of years, we have communicated that across all of our businesses and our global Webcasts and we've made that a best practice. So we actually had all the all the global leaders on a phone call just six weeks ago.
To lay out some guidelines for them to think about preparing for.
Highly inflationary environment, including Adobe as best practice from electronics, So we actually feel quite confident.
We know what to do we know how to protect our P&L from the effects of inflation. It doesn't mean, it's easy and it's always difficult to pass price increases through but.
Sure.
We're confident we can we can handle it.
Great. Thanks, and I guess, just on the seven to 9 million deferral of sales related to the Lockdowns.
How confident youre going to see that in.
Kind of the future quarters as things start to open up is there any risk to that.
Well I guess I can just tell you what assumptions we have based on where because you are just as good as mine about one of these lockdowns will ease, but we're now operating in Shanghai at about 20% capacity with plans to get to 50% in the next few weeks.
Assumption is that in June we will be back to full.
To full force if we are we'll be probably at the lower end of that number may be better if we can work down the backlog.
Lockdown continues our slows our return year to be at or above the upper end.
And Ed Correct me if I can just add these are not lost sales.
We fully believe and expect this will be the sales are going to makeup in fiscal 'twenty. Three. So this is just a deferral from a quarter to quarter, but not not lost in sales.
Okay I appreciate that color.
Just last question I'll jump back in queue. After this.
More talk around a possible slowdown in the economy and recession kind of concerns can you just talk about what youre seeing out of your customer base for demand trends and maybe how things progressed throughout the quarter. Thank you.
Yes. This is Ken this is kind of a crazy situation. We're looking at one reality preparing for another our bookings are strong book to Bill has been has been greater than one every quarter. This year. In fact, there has been momentum from January through to April our backlog you saw some of the numbers some of the businesses backlog is up so we're not seeing any.
Any softening in demand across our different businesses. However, we thought it was.
Everybody else and.
In that same call we have other businesses.
Weeks ago, we've had everybody start to prepare contingency plans, if and when we see signs of a slowdown and where we're just going to rely on the same playbook that we exercise a couple of years ago when.
When the world was shutting down.
The pandemic lockdown so.
Sure.
Continuing to execute on the growing demand and preparing for.
For the eventuality of a downturn.
Okay, great. Thanks for taking my questions I'll jump back in queue at this point.
Yes. Thank you thanks guys.
Ladies and gentlemen, our next question today comes from Chris Howe Barrington Research. Please go ahead.
Good morning, David Good morning, Chris.
Wanted to follow up.
The last question as it relates to the $7 million to $9 million deferral.
From the fourth quarter, two fiscal year 'twenty three.
As we think about different scenarios hopeful.
Yeah.
June marks.
And of the Lockdowns can become 100% operational but.
Assuming the other side of that.
And if there are more deferrals.
How how can we consider these deferrals versus.
The bottleneck that might be occurring in the supply chain do you think that gradually comes back or can you get it in one quarter and.
Can you explain.
How you recapture the revenue that is not lost but deferred yes.
Let me say one.
<unk> also helped.
To help frame it.
I understand relative to some supply chain impacts on the unless locked down to sort of your mind is just related to the lockdown impact.
In our China business, two thirds of the sales of that plan to go to China Chinese customers. So that can be caught up and waiting for tank freighters.
Freighters, our origin growing freight.
So minimal impact on supply chain when that lockdown.
Adam.
That's pretty much covered it Chris I think you know, that's probably going to take US a couple of quarters to make up for it is the kind of ramp back up again.
Get our products to customers, but all indications everything we are seeing the orders are still strong we are nonetheless, there hasnt been any cancellation.
This is something that we will make up and isolate the lockdown is over.
And does margin comeback in lockstep with the recapture of revenue or world margin, maybe take a little bit more time to get all of it back.
I think it will come back on the lock step of revenue obviously.
This quarter, just because we have a factory shutdown, we still have to pay in a fixed cost, including the salaries and people in Shanghai, So thats going to impact us a little bit but.
And as the volume comes back we do expect that we'll get we'll get the same margin if not better.
Are you seeing so far.
Okay.
I wanted to switch gears away from that towards the new business opportunity funnel.
For the electronics segment.
Within that new business opportunity funnel is electric vehicles.
Can you refresh my memory on electric vehicles, and what you see the potential.
For this as this trend to electric vehicles continues.
Much further out from 2000.
'twenty two.
Perhaps into 2024 and 2010.
Five <unk>.
See electric vehicles.
Against this portfolio.
Yes, well first of all our sales in the electric vehicles.
Followed the trend of electric vehicle shipments and doubled each year for the last few years and we project them to double again next year, we're adding more capacity for the particular products that we sell into electric vehicles.
Our primary product areas, we've talked about many times is.
As a reminder, based on our Reed switches, which is used in the safety management system. We also have.
Relays and some magnetic products that go into battery management systems.
In electrics.
So.
A third leg.
We're somewhat optimistic is that this acquisition. We just made a sensor solutions. We are identifying additional applications in electric vehicles for hall effect sensors that can be designed with sensor solutions.
So as.
As we close some of those applications I think we can expand.
Expand our.
Our ship set value I guess, if you want to put it that way.
With electric vehicles, so but bottom line, we're very we're very enthused about about electric vehicles, we're seeing great growth there.
And putting more and more resources to make sure we're getting every application available to us.
Okay, Great I have many more but I'll hop back into queue for others alright. Thanks, Chris.
Ladies and gentlemen, as a reminder, if you wanted to ask a question. Please press Star then one on <unk>.
Question comes from Chris Moore CJS Securities. Please go ahead.
Hey, good morning, guys. Thanks for taking a couple of questions.
Yes.
Good morning.
The 2 million engraving initiatives.
Should we is that.
Read anything into that is that in response to market as being a little softer than originally thought or just something you had been targeting for a while.
Even a few years much of our focus.
With the cost structure and operations.
Gregg has been in North America in the last couple of quarters, We're seeing North America stabilized starting to deliver predictable results.
This additional action $2 million is just taking a broader view of all our locations around the world and reassessing based on the toolmakers that are still present in different geographies.
Making sure that you were adjusting our capacity.
Capacity at our cost structure for that local local business.
Two we're making industry.
Slowly evolves in toolmakers opened and closed in different geographies around the world and we just want to continually make sure that we've got the right resources in the right places so that $2 million is actually scattered across many sites around the world Panama, you want to add anything to that.
Thats pretty much covered it and then Chris I think a lot there.
We are executing on most of them within this quarter and maybe Q1. So we should start seeing the readouts kind of into next next day.
Got it that's helpful.
Maybe you can just talk a little bit about the kind of anticipated evolution of.
Segment earnings and if you look at.
First nine months electronics contributed I think roughly 55% of operating income.
What's a reasonable expectation for electronics contribution two to three years out is it likely to stay in that range is it likely to be below 50.
I understand that the three segments here, 20% margin targets, but.
Overall, maybe talk a little bit about what you think electronics contribution will be.
Well, maybe I can I can tell you that on our first of all crystal loved this business.
If you have a very household.
Largest business is your most profitable business, which is kind of where we at and it's also one of our highest growth businesses. So we're going to continue investing in it both organically and Inorganically and there is no reason for us to believe that the kind of the current contribution CSA from electronics that are going to continue.
Drawing in the years to come so.
I wouldn't add much other than to say it won't grow as fast or faster than the other businesses sort of percent contribution to profit.
You can make your own conclusion is likely to only it only increase with success.
And our growth strategies there.
Got it that's helpful.
You talked about the engineering opportunity in Europe .
How do you sell into those markets.
Engineering capability is it.
You already have the infrastructure in place to do that is it how different is it from from North America.
Yes, we actually we have been able to transfer.
Process knowledge from our U S sites to our UK site, there are very similar equipment there.
Acquired in 2012, but just before I joined the company and it was primarily focused on supporting.
Deep sea.
Oil and gas platforms and of course that business is virtually gone now so we've repositioned it over the years they have a healthy healthy position in medical in the MRI scanners.
We've taken our U S knowledge of aircraft in <unk>.
Space applications.
Now yes.
Developing relationships with those customers in Europe , So thats the pictures you saw.
On the on the engineering technologies page are for OSB.
Osp's program in Europe .
So it's really more about.
Is it more of a sales effort, we've got the technical capability, we have knowhow, we have the machinery over there.
<unk>.
We're just.
Directly in our business development people to get to get in front of the right people for the European programs and feel actually had good returns in the last years, we focused on this and are optimistic we have a growth path in Europe .
Got it that's helpful. I will leave it there I appreciate it guys.
Thanks, Chris.
Hello, Ladies and gentlemen, once more we have a question. Please press star then one.
Hello, Ladies and gentlemen, this concludes our question and answer session I would like to turn the call Ginsberg.
And for any final remarks.
Alright, Thank you Randy.
We had a very active quarter further and further advancing our growth strategy in multiple fronts.
We are aggressively pursuing new market opportunities, which offer innovative and compelling customer value propositions. When these efforts are complemented by ongoing productivity and efficiency initiatives, we focused on strengthening our market leadership and cost position and as a result, we're very well positioned to further optimize <unk> growth and margin profile finally, I want to thank everybody.
Today for their interest in Standex, and our discussion of our fiscal third quarter results and outlook and again to thank our employees shareholders and the board of directors for the continued support we look forward to speaking with you again.
Our fiscal fourth quarter 2022 call.
Ladies and gentlemen, this concludes today's conference call. Thank you all for attending today's presentation you may.
Now disconnect your lines and have a wonderful weekend.