Q1 2022 Unique Fabricating Inc Earnings Call
[music].
Good day, ladies and gentlemen, and welcome to unique fabricating first quarter 2022 earnings call.
At this time, all participants have been placed on a listen only mode and the floor will be opened for questions and comments. After the presentation. It is now my pleasure to turn the floor over to your host John statements.
The floor is yours.
Thank you operator, I would like to welcome everyone to unique fabricating as first quarter 2022 earnings conference call.
During the call are Doug Cain unique fabricating as president and Chief Executive Officer, and Brian Loftus unique fabricating as Chief Financial Officer before I turn the call over to Doug I would like to remind everyone that matters discussed on this conference call will include forward looking statements as defined in the private Securities Litigation Reform Act of 1995.
Are subject to risks and uncertainties forward looking statements relate to future events or to future financial performance and involve known and unknown risks uncertainties and other factors that may cause the companys actual results levels of activity performance or achievements to be materially different from those expressed or implied by today's call.
All such forward looking statements are based on management's present expectations and are subject to certain risk factors and uncertainties that may cause actual results or outcomes and performance to differ materially from those expressed by such statements. These risks and uncertainties include but are not limited to those discussed in the company's annual report on Form 10-K, and quarterly reports on Form 10-Q.
That are filed with the SEC pursuant to rule rule for two four beat and in particular the section titled Risk factors All statements on this call and including those in this afternoons press release are made as of today and unique fabricating does not intend to update this information unless required by law. In addition, certain non-GAAP .
Measures will be discussed during this call. These non-GAAP measures are used by management to make strategic decisions forecast future results and evaluate the Companys current performance management believes the presentation of these non-GAAP financial measures are useful to investors in understanding and assessing the company's ongoing core operations and prospects.
For the future unless it is otherwise stated it should be assumed that any financials discussed in this call will be on a GAAP basis full reconciliations of non-GAAP to GAAP are included in the press release that was issued earlier today.
That said I would now like to turn the call over to Doug Doug The call is yours.
Thank you, Jeff and good afternoon, everyone.
Unique fabricating Bryan and I appreciate your investment of time for our update of the company's outlook overall operations and financial results.
The management team and our associates continue to make improvements across all aspects of our business.
Our first quarter results show improvement over the third and fourth quarter of 2021 and demonstrate the effectiveness of actions taken with further benefits to be seen in the quarters ahead.
Based upon our completed and ongoing initiatives, including the cost recovery efforts.
Customer rationalization project and market diversification activities, we are improving our relative position in the markets, we serve and one of the stronger and more capable suppliers in our competitive space.
While overall market and supply chain challenges continue we are well positioned to realize the benefits as the supply chain issues continue to normalize and volumes increase.
Our Q1 operational performance was negatively impacted by the ongoing labor challenges in the continuing increases in raw material and other costs across all aspects of the supply chain.
With the positive top line impact of the cost recovery activities are $35 3 million net sales slightly exceeded our prior guidance and is the highest level since Q3 of 2020.
As noted previously this cost recovery, partially offset to the actual cost increases we have seen.
And continue to see.
The complexities of effectively flexing cost of the continuing short term changing release schedules also had a negative impact on plant efficiency and operating margins.
Labor availability challenges in certain locations and cost increases throughout the supply chain are continuing in Q2 and are consistent with the overall and persistent higher inflation throughout the economy.
While we have seen and do expect to see continued challenges through Q2 and in the second half of 2022 from the chip shortage.
Other factors outlined previously we are experiencing improving supply chain availability and higher customer demand volumes with less short term fluctuations.
I am proud of how our entire team is meeting these comprehensive challenges with urgency and a strong commitment to finding solutions.
We continue to respond effectively with the focus on taking care of customers and augmenting our capability.
As these conditions provide opportunities for unique we are confident that we have taken the necessary steps to drive improved performance.
All items increase.
Our comprehensive cost recovery activities initiated during Q2 of 2021 had delivered positive results to date, but offsetting some of the cost increases.
Now having success and our pivot to a more targeted cost recovery approach focused on specific programs, most negatively impacted by logistics and continuing raw material cost increases.
We expect these cost recovery activities to be fully realized by the end of the second quarter with more than a $2 5 million of annualized benefit partially offsetting the higher inflationary costs, we continue to see.
Simultaneously, our smaller customer rationalization project continues.
During Q2, we expect to exit approximately 20 smaller customer relationships and our passing along more significant price increases and a higher minimum order quantity requirements for other smaller customers.
These actions improve the efficiency and productivity of our plants by reducing complexity with minimal revenue impact.
Despite high ongoing costs related to our being in a forbearance condition with the bank syndicate, we have seen a reduction in our SG&A costs to the approximate $5 million level previously communicated.
We have continued our tactical investments in laser cutting and robotics to improve our operating margins in a sustainable manner through reducing labor costs and improving material utilization.
The higher quotation activity, we mentioned on the last conference call has continued.
Year to date, we secured approximately $31 million of co op.
Customer order intake.
We're continuing our focus on market diversification with 12% of our 2022 wins in the appliance market and 18% in the medical and consumer goods markets with 70% in the transportation market.
We have identified key targets to realize additional wins with medical device suppliers.
In addition, we recently achieved approval to produce reaction injection molded front of dash hvac's yields for a high volume light duty truck application.
Which will enable us to further expand applications within our automotive HVAC customers.
We're continuing our collaboration efforts with adjacent suppliers for expanded product offerings in the areas of integrated impact foams informed optical within decorative films.
Light duty new vehicle inventory has continued at historically low levels with approximately 1 million units on hand, each of the last seven months compared to more than $3 million each month throughout 2019 and.
And $3 4 million units March the first of 2020.
Resulting from the low inventories.
Light vehicle sales continued to be less than previously forecasted providing additional pent up demand supporting a positive longer term outlook.
The seasonally adjusted annual sales rate or Saar. It did increase to approximately $14 8 million units in Q1 2020 to representing the best quarterly sales performance since Q2 of 2021.
The independent North American automotive forecast as of April the 19th remained flat at $14 7 million units for 2022 from march's or approximately 13%.
2021, which was equivalent to the 2020 production units.
As stated previously the combined production from 2020 through 2022 forecasted volumes indicates that approximate shortfall of more than 9 million units from.
From the average of the last four pre pandemic years.
The prolonged production shortfall in the low inventory levels lead to a positive North America production outlook for 2023 was $16 5 million units down $1 2 million for March as forecast and an average of approximately $16 8 million units from 2024 through 2027.
We are not yet seeing any meaningful negative impacts for north American production from the events continuing to unfold in Ukraine and in China, except to contribute to the increase in raw material and logistics costs.
Utilizing the third party forecast of $14 7 million units to be produced in 2022.
Recognizing the Q1 increase from previous the decrease for Q2.
And a higher overall second half production value, we are slightly reducing our range for Q2 net sales to be between 35 and $37 million from the prior guidance of between 36 and 38 million for Q2.
We are confirming our prior guidance of between 75% to $79 million for the second half of 2022 and confirming the full year forecast previously provided of between $1 45, and $1 $52 million.
With overall supply chain issues, continuing to improve through 2023, and the forecasted production levels dropping approximately 1% from the previous expectation. We can also reconfirm our sales forecast for 2023 with a range between 169 and $179 million.
We see similar positive trends for demand and improving supply chain conditions, both near term and longer term in our other markets, where we also see higher supply chain costs.
We're experiencing an uptick in appliance production volumes, both near term and midterm forecasts as well as increased quoting activity in consumer goods and appliance markets.
Alan Shearer workplace onshoring activities from China, specifically gain traction.
Within the next few months and subject to the myriad challenges. The IRS is currently facing which had been causing substantial delays, we still expect to receive a combined $2 1 million from the United States government related income tax loss carry backs and employee retention credits.
We continue our collaborative work with our bank syndicate as we develop a longer term framework to enable the execution of our growth plans to date, we are maintaining sufficient liquidity for us to operate in these challenging times.
Brian will now provide an overview of our first quarter 2022 financial results.
Thank you Doug good afternoon, everyone.
Turning to the first quarter results.
Net sales for the first quarter of 2022 increased a half a million dollars or one 5%.
$35 3 million as compared to $34 8 million in the first quarter of 2021.
The increase in net sales as compared to the same period in 2021 is primarily due to our cost recovery efforts, where we passed some of our cost increases to our customers through pricing.
Of the $35 3 million net sales for the first quarter.
Customers in the transportation market accounted for approximately 89%.
Our clients at approximately 9% with the remaining 2% primarily attributable to our consumer off road market.
Gross profit for the first quarter.
<unk> was $4 8 million or 13, 5% of net sales compared to $5 9 million or 16, 8% of net sales for the same period last year.
The decrease in both gross profit and gross profit as a percentage of net sales reflects the higher manufacturing input costs and the inefficiencies of the operating environment.
Each were partially offset by our cost recovery efforts.
Selling general and administrative expenses for the first quarter of 2022 were down two 5 million compared to $5 8 million for the first quarter of 2021.
The decrease in SG&A was primarily the result of lower salary expenses and lower amortization expense as certain intangible assets became fully amortized since the first quarter of 2021.
These lower expenses were partially offset by higher professional fees related to our forbearance agreement.
Operating loss for the first quarter of 2021 was 194000 compared to an operating income of 48000 for the same period last year.
This decrease is the result of increased material freight and labor costs, partially offset by our cost recovery efforts and lower SG&A expenses.
Interest expense was <unk> 5 million for the first quarter of 2022 compared to <unk>.
<unk> 7 million for the first quarter last year.
The year over year decrease was primarily due to favorable mark to market adjustments on our interest rate swaps.
Net loss for the first quarter of 2022 was approximately two <unk>.
$6 million or five cents per basic and diluted share compared to a net loss of $1 1 million or 11 cents per basic and diluted share in the first quarter of 2021.
We had an income tax benefit of approximately <unk> 2 million for the first quarter of 2022 compared to an expense of <unk>.
$4 million in the first quarter of 2021.
I will now provide a brief update on our financial position and liquidity.
Total debt.
It was 47 million as of March 31, 2022, compared to $48 4 million as of December 31, 2021.
We ended the quarter with approximately <unk> 8 million of cash and cash equivalents.
$5 2 million of net availability on our revolving line of credit.
Doug will now provide some closing remarks, Doug back to you.
Thank you Brian .
With Q1 results were now seeing the benefits of higher volumes and lower fixed costs. Despite the ongoing extra expenses related to our forbearance agreement activities.
We've been committed to significant operating improvements and organizational enhancements through these last challenging two years.
As a result, we are now better able to effectively capitalize on increasing volumes across all of our markets with supply chain availability, improving and can generate improved operating results over the next quarters.
Our team remains focused on continuous improvement in all areas and realizing the benefits from enhancements now in place.
We are positive about the midterm and longer term outlook for our position in the markets, we serve and the resulting improved operating profit as we maintain our fixed cost discipline.
We remain committed to our vision of delivering profitable growth and increasing shareholder value that follows from a brand of providing innovative optimized and sustainable solutions for our customers.
With that we will open the call for questions operator.
Ladies and gentlemen, the floor is now opened for questions. If you have any questions or comments. Please spread press star one on your phone at this time, we ask that while posing your question you. Please pick up your handset if listening on speakerphone to provide optimum sound quality. Please.
Please hold while we pull for questions.
Thank you. Our first question comes from Michael <unk> from <unk> Brothers.
Hello.
Great quarter $1 million positive EBITDA.
Terrific performance in this environment.
So thank you for I'm sure you got to work pretty hard to do it.
Doug would you do me a favorite would you please repeat the guidance youre, giving now.
For Q2.
So thank you for the question. So again, we're using the latest forecast that we have and what we see.
What number is that on North America auto sales that youre picking up too.
So it's basically the overall $14 7 million units to be produced 22.
The IHS data.
The last one that was updated middle of April had a slight increase in what was produced in Q1.
A slight decrease for Q2, and then slight increases for Q3 and Q4.
So as a result, we have just modified slightly our Q2.
Range of revenue that we're expecting to be between 35 and $37 million were confirming our second half numbers between 75% to $79 million.
And then for the full year, confirming again, the 145 and $152 million for the full year numbers, which again is comparison to about $1 22 that we did in 'twenty 'twenty. One. In addition, based upon all we know today and based upon the third party forecast in the business one to date, we're expecting a range.
Between 169 and $179 million in sales for 2023, and we will be able to maintain the fixed cost discipline, primarily around the SG&A, even with the increasing sales base and that's where the that's where the operating leverage comes from.
Terrific. So at this point in the quarter, we're about halfway through the quarter.
You're basically saying next quarter that Q2 will be.
It should be at least as good as Q1 or better yet the way slightly.
Slightly better on the top side again on the cost side, the cost increases and the challenges have continued.
And as I mentioned in our cost recovery activities, you always end up behind the curve with these things. So as cost increase you end up eating some of the costs work with the customers collaboratively, especially U K and you work on other cost reduction activities, which are kind of behind the curve. So Q2, we are still a bit behind that curve, but with the thing.
That are in place that will be fully implemented before the end of Q2 Q3 is when we'll really begin to see the benefits of all this and have our gross profit and our operating margins improved Q3 forward.
But you had you were you had a headwind in Q1 as well correct. So if I looked at as sort of like you had.
Order over quarter, you had a headwind in Q1, yet the headwind Q2, and Q1 Q3 and Q4, hopefully we have some fun if you will right.
That is our intention to I appreciate the way you characterize that.
Okay great.
With this modest ramp that we're seeing a much more modest than you were looking at.
<unk>.
Well I'll tell you what I'll I'll get back in line. Thank you for answering the question I know, it's not easy raising prices and collaborative is probably not actually the way it feels.
[laughter].
But youre doing a great job very impressive. Thank you. Thank.
Thank you for that and again in your comment to the to the re up again Q1, and Q2 Q2 should be slightly above Q1, but Q3 and Q4 do you see a pretty significant increase on a percentage basis. When I gave that range of $75 million to $79 million. So there is an increase that's out there.
Great. Thanks.
Once again, if there are any questions or comments. Please press star one on your phone at this time.
Okay.
Our next question comes from George Melas at E N J H management.
Hi, good afternoon, guys and Brian .
Good afternoon George.
Hi quick question on the SG&A, you've managed to bring that down.
Nancy.
You're welcome.
Right now and that would be cool.
The forbearance agreement fees of roughly $200000.
I see.
Look at Q.
So now let's eliminate that forbearance.
Thank you Ed.
I view.
Ramping up volume.
In.
Well to some extent in 2022 and 2020.
SG&A going.
So thank.
Thank you for the question and the observation of the work that's gone on with that.
So two things one we have a very small amount of our business that runs through.
Call It an agency relationship with some of our Asian.
Business that we do that's a commission based so there's a little bit that we had this commission base that would increase relative to volume.
Rest of the SG&A costs are predominantly fixed and there is no view that theres going to be anything that is required.
To be able to are necessary to support the volumes even into 2023, we have small ongoing work that we're doing and in finalizing the implementation of our plex.
RP system.
Those are built into some of our forecast and some of the reductions when we reached the agreement with the bank Syndicate and the forbearance agreement fees drop off then we would replace some of that maybe with a little bit of these I'll.
I will say infrastructure calls, but the target condition is to maintain a $5 million.
No more than $5 million SG&A level as we go forward.
Okay.
And then maybe a question on the gross margin.
Very much appreciate it.
Raw material costs.
So.
And the plan.
Yes.
Does that go back to a 20% level at some point in the next couple of years.
So again I appreciate the question I'd like to way you price that can can it yes. It can.
What we're targeting is a ramp which is partially a product of our having basically in our operating expenses.
Third variable at two thirds fix there.
So there is also quite a bit of operating leverage as the revenues increase with our Opex, we're targeting in the second half of the year to have a.
Gross margin to be 16% plus in.
In the second half and Q2 is going to remain challenged again as we finalize this additional group of cost recovery and also cost reduction activities. So there's a lot that we've done.
<unk> working again collaboratively with our supply with our suppliers and with our customers working through material substitution is changing locations of sourcing to reduce the logistics cost. So it's not just a top side activity, but it is a comprehensive look as far as the raw material and logistics costs. So the combination of.
Higher production volumes and.
These cost recovery activities and.
The cost reduction activities, we are planning to be north of 16% in the second half of 2020.
Two.
And then again as we've discussed in some other calls previously you've got an inflation on your.
P&L, where all the costs are higher and therefore your overall gross margins.
As a percentage basis tend to be a little stress.
Stressed longer term, we are targeting to be at 20%, but I would say if you moved into 2023, you're sitting more in the 18% range.
8%, plus what we would be targeting and then the next phase would be to reach the 20%.
Great.
That's very very clear.
We see that very much.
Thank you.
Keith.
Once again, if there are any final questions or comments. Please press star one on your phone at this time, we now have John Nobel from takeaway.
Yes.
Hi, Good afternoon, Doug and Brian Thanks for the call and for taking the questions.
And I just want to say it was nice to see actually in this challenging.
Environment that you were able to pay off.
In the quarter, what was it about one point something million.
Paid off $1 4 million in debt, so that was kind of nice to see.
That on the balance sheet.
But Doug I was hoping that.
You could talk a little about your ability to pass on rising costs to auto manufacturers.
That's a.
I've got a smile on my face right now Thats, a somewhat loaded question, John considering that I'm sure that I have a few of my customers that are on the call today.
Which makes it a little bit challenging, but what I would tell you is again, it's an ongoing process.
<unk> and our tier ones and transportation have a process of some of the processes are more complicated onerous and time consuming.
Others are a little bit I'll say more collaborative.
That's on the transportation side and I'll touch that again, if we go to the appliance in the consumer goods and the medical there's a greater willingness and a greater understanding and I think and a greater history of understanding cost increases in the supply base.
They're real there is no hiding what they are I guess, the producer price index went up 11, 1%.
Today year over year was the number that was out there. So they are willing to do it and then they're also more willing to pass those costs along to the end customer so you're seeing that in all of the appliance business and et cetera. That's out there. So that is I'll say somewhat set.
Again, we have to provide documentation and support for the raw material costs that we have we do discuss increasing labor cost packaging et cetera. We tried to do this in a cost sharing with us. The reason that I am very clear at all by communications that we are not passing along and have that intended to pass along.
100% of our cost increases and that's the way that we've represented it with our customers and to date, we've been able to get all of our customers in the transportation space, whether it's tier one tier two tier three or what have you as well as the consumer goods and applies to understand the needs of the cost increases and we've been able.
To pass those along.
Unfortunately as the costs have continued to increase we've had to go back.
And there was a phase one phase two that we're in a phase III and as noted in the comments.
Had been more targeted and what this is with specific programs specific product sets or specific raw materials.
And are working through with the customers now and are bringing that phase to a conclusion.
<unk>.
No later than the end of June .
And that's the reason again, we're saying Q2 will remain challenged.
From the operating margin perspective.
And again with some of the other issues that are out there, but then Q3 and Q4 will again see another step change improvement. So Q4, we had 10% or 90% cost of sales of 10% gross profit Q1, we had 13, 5%.
And again like I said, we're targeting to be north of 16% in the second half of the year.
Okay.
Thank you for that but.
Did you make a prior comments that.
You anticipated I know it takes a while to get through the auto manufacturers as far as.
The increased costs are passed on to them, but after the second quarter say by the second half of the year barring further increases in prices you feel that you'll have.
The cost reduction cost reduction cost recovery efforts by then.
Yes, that's what our intention again subject to nothing dramatic increasing.
Again as high as they have made the comment before I'm not sure I've done it on this call and again this is <unk> speaking.
Specifically, but to date as I mentioned in the call we have not seen an impact directly in North America from the Ukraine situation from the China, Covid situation, which is having significant impacts other parts of the world.
It may find its way here, but one of the things that I had.
Predicted or forecast or expected was that the scarce raw materials chips and other things with find their way to North America, where the.
It's a little more stable relative to our production environment from the other areas I mentioned, we've seen that to be true.
Some of the Oes and others have mentioned that in some of their comments relative to production. So we've seen that being a piece of what we've got so production is going to be.
Better here, we also expect and again I can't give you the date.
But that we are beginning to on the materials that are involved in transportation seeing.
Ending of the curve.
We're now our raw material suppliers are no longer coming to us, saying Theyre based raw materials are going up they are now coming to us for price increases relative to their labor and packaging and energy and these other inflation cost so the percentage increases while the littlest are lower.
And they have also made comments that in some cases, they are beginning to see a reduction in their base raw material. So sometime in the second half of this year.
Can't tell you we will begin to see.
Hilton that curve.
And then the same stickiness will occur and tried to get the pricing the cost recovery on the upside.
There'll be some stickiness in the cost.
Covering on the downside website, so we expect margins to improve for both of those reasons.
At the end of 2023 for that reason.
Alright, well thank you for that.
Just just one final question I wanted to get an idea of the current.
Rising cost in the supply chain issues, how they're impacting your competitive position.
I wanted to see if it's actually hasnt been of benefit or do you think it's been like a detriment in I'm thinking.
Competitors have been leaving the space, where when things do pick up it's going to be beneficial to you I was hoping you could talk a little about.
How the current situation is impacting your competitive position.
Yes, no. That's an excellent question and I could probably spend 30 minutes to 30 hours.
Trying to answer that question comprehensively, so what I would tell you and again going back to the notes in Q2 of 2021, and we actually mentioned this in our Q1 2021 earnings call.
We said we were going to end.
We're beginning a process of cost recovery all the way back then at that time, we were kind of on an island.
And we were told we were on an island and we were told a lot of other things too, but we were told that we were early in doing this but we had to do it and because of the process takes a long we began to see the benefit of this in Q3 and Q4 of last year had we not started it then.
We wouldn't be seeing the benefit until now and I do know that there are some suppliers out there some in our space. Some in other spaces that have been.
Unwilling to maybe approach their customers in the same way.
And therefore, they are now going at it today so early.
We were in a position to where competitively this was proud to call them.
I would also say again with the forbearance agreement situation that we've been under for the last year. That's also had a negative impact on our ability to win.
Business in certain industries, and with certain customers and Thats. The reason this.
Completing this agreement with the Bank Syndicate has supported this commercially so that's been an overhang for us so the combination of raising prices and being in a forbearance agreement situation.
<unk> provided I'll say some of our competitors opportunities that are part of the reason for our lower than hoped for lower than desired lower than targeted COI numbers now with that being said everybody else's caught up with us and if you look at the <unk>.
Public communications from suppliers across the industries and what we know privately is occurring everybody is now going after price increases they have to.
Everybody is challenged with some of the same thing so the level field the playing field is more level today.
And the fact that we continue to supply meeting customer demands being very flexible.
Working collaboratively with our suppliers and our customers has kept us in a pretty good position with them.
And we expect that when we complete the situation with the bank.
This will open us up to be in a much better competitive situation with our customers. There is nobody that we're aware of.
Because the raw materials, the base raw materials, our global commodity parts in which we are being.
Four were paying more than someone else's bank, we are a high volume user. So therefore, we know that everybody else's prices in the same way labour cost and Safeway, etc. So we believe our competitive position is actually improving now as other people are.
Catching up to the cost recovery activities.
That's a long answer, but it's a pretty complicated situations. So overall, we feel like we're in a very good competitive position from our cost structure, our fixed cost structure from our facilities from the logistics that we have relative to being in all regions of North America, we have very little exposure from a supply base oriented.
Product sales space to Europe and Asia.
And therefore, we feel like we're well positioned as we go forward.
Okay. So you are getting in.
<unk> cost recovery ahead of time.
Maybe was a little bit of the impediment to your growth because of that versus the competitors, but now.
There are actually finally, starting to increase their prices, which I guess, they're forced to.
That's only going to help your competitive position at this point because now it's more of a level playing field I believe yeah. That's that's a much shorter and that's a short tonight.
Put your absolutely correct basically sum it up yes.
Yes, but that was OK, great Q2 of last year, because we had to.
Good management team keep up the good work. Thank you.
Thank you.
We now have Michael Glick from takeaway brothers.
My question is answered the guys keep up the good work. Thank you.
Yeah.
Hello, My question has been answered thank you.
Okay. We now have George Nieland from MGH management again.
Yes, Hi, again.
I mean, Brian .
Pretty big.
Great to diversify.
Because it's going to be.
30%.
So far this year.
A win from transportation.
You look at 2020.
What percentage would.
Would be the wavecom.
Davidson.
And I don't know if you can break it further into our plan and.
The industrial.
Perfect.
Yes, so what I would say is again, that's another one of those things.
Math.
Uh huh.
Issue that's interesting so as Brian had commented sorry of things in Q1, 89% of our business was transportation, 9% appliance at 2% consumer and medical.
And with transportation, increasing Q3, Q4 and into 2023, because the vehicle builds.
Wont see a dramatic difference in those percentages, we would expect to probably see in 2023.
What percentage point drop in transportation of equal.
Equally picked up by appliance and consumer goods, you've just got.
An 800 pound gorilla when it grows it's very hard to move the percentages the dollar value increases, though are quite substantial I.
I can't remember what I've done in the last presentation that I do it but I think over two years, there's a 75% increase in our medical business at a 40 or 45% increase.
Our appliance business from 2021 through 2023.
But even with those increases the percentages are probably end up being closer to 85% or 84 at 16% for the other with appliance being probably 11 and the other about five.
That's a rough approximation.
Okay. Thanks, so much.
Absolutely the <unk> growing its just hard to move the percentage a lot.
I think you answered the question a lot better than I.
Thank you very much.
Okay.
Okay.
Sir there appear to be no further questions in queue do you have any closing comments you would like to finish with.
So again.
Right.
The entire management team and all 1000 plus employees.
Fabricating really appreciate.
The continued interest and investment and support in.
Belief in what we're doing we are very positive about what we're seeing.
It's taken a little bit longer because a lot of the other macro factors that are there again.
Q2, I would love to tell you, we will not be challenging Q2 will available challenging.
But we are firmly convinced Q3 Q4 and beyond are going to show the more dramatic improvements in operating performance and revenue growth and.
With.
Bank agreement in place.
Return to the very high rate of customer order intake that we had because customers are wanting to give us business.
Awaiting for that situation to be resolved.
We're encouraged and we appreciate your time invested today and look forward to talking individually or in group or wherever it may be we always make ourselves available.
Yeah.
Thank you ladies and gentlemen, this does conclude today's conference call. You may disconnect. Your phone lines at this time and have a wonderful day. Thank you for your participation.
Okay.