Q4 2022 Motorcar Parts of America Inc Earnings Call
Ladies and gentlemen, thank you for standing by my name is Brent and I will be your conference operator today at this time I would like to welcome everyone to the motorcar parts of Americas fiscal 2022 fourth quarter and year end conference call.
All lines have been placed on mute to prevent any background noise. After.
After the Speakers' remarks, there will be a question and answer session. If you'd like to ask a question at that time simply press star followed by the number one on your telephone keypad. If he would like to withdraw your question again press Star one. Thank you. It is now my pleasure to turn today's call over to Mr. Gary Meyer <unk>.
Relations Sir please go ahead.
Thank you, Brian and thanks, everyone for joining us before I begin the call and I'll turn it over to Selwyn Joffe, Chairman, President and Chief Executive Officer, and David Lee The company's Chief Financial Officer.
I'd like to remind everyone of the Safe Harbor statement included in today's press release.
But Securities Litigation Reform Act of 1095 provides a safe harbor for.
Certain forward looking statements included including statements made during today's call such forward looking statements are based on the company's current expectations and beliefs concerning future developments and their potential effects on the company.
There can be no assurance that future developments affecting the company will be those anticipated by us actual results may differ from these projected forward looking statements. These forward looking statements involve significant risks and uncertainties some of which are beyond the control of the company and are subject to change based upon various.
Factors the company undertakes no obligation to publicly update or revise any forward looking statements, whether as a result of new information future events or otherwise for a more detailed discussion of some of the ongoing risks and uncertainties of the company's business I refer you to the various filings with the securities and exchange.
With that said I'd like to begin the call I'll turn it over to sell it for our prepared remarks. Thank you Gary I appreciate everyone. Joining us today I hope you are all safe and healthy.
As announced this morning, we delivered a record net sales of $653 million for fiscal 2022, representing a year over year increase of 23%. We achieved this exceptional growth. Despite continued global supply chain challenges and the continued COVID-19 environment.
I should also highlight several additional successes during the year, we developed a comprehensive line of brake pads utilizing an industry, leading formulation and brake rotors, serving the professional installer market under the company's quality build brand.
We secured multi year, new business commitments and opportunities of more than $100 million.
Primarily across multiple break related products.
We have successfully expanded sales through additional product line offerings in Mexico, We completed a multiyear expansion programs of our facilities in Mexico, including completion of our new brake caliper Remanufacturing facility.
We have added capacity to support anticipated future growth with limited additional capex investment.
We extended the maturity date of our credit facility from June 2023 to may 2026th to enhance our liquidity and capital resources, we secured inventory, which enabled us to support our customers meet demand and obtain new business despite worldwide supply chain and logistics challenges.
We secured purchase orders from all major automotive retailers are rotating electrical bench top testing equipment.
We opened an electric vehicle contract testing center in Detroit, Michigan with customer business signed up we continue to serious a series of prestigious tier one wins for our <unk> technology with orders from major global automotive Aerospace and research institutions and equally important we continued our social responsibility.
Ability initiatives with plans to launch in Agri farm organic food and community program in Mexico and continued our focus on opportunities to enhance site environmental social and governance practices on a global basis.
All of these accomplishments enable us to resume annual guidance, which at the top range is estimated to reach $700 million in net sales this fiscal year, representing a year over year increase of $49 $7 million based on our current visibility notwithstanding.
Notwithstanding potential quarter to quarter fluctuations due to timing of orders.
Excluding $13 3 million of core revenue realized in our previous fiscal year, which the company does not expect to not expect in fiscal 2023 net sales are expected to increase between six eight and nine 9% in fiscal year 2023.
Operating income is expected to be between 50 $761 million before the noneconomic noncash foreign exchange impact of lease liabilities and forward contracts.
Non economic noncash impact of revaluation of cores on customer shelves and supply chain disruptions and costs related to COVID-19.
We estimate other noncash items will be approximately $21 million, including corn finished goods premium amortization and share based compensation.
And cash expenses will be approximately $2 million for special electric vehicle related research and development expenses.
Impacting operating income.
Depreciation and amortization are estimated to be approximately $13 million.
In summary, operating income before the impact of the noncash and cash items and before depreciation and Amazon amortization. As previously mentioned is expected to be between $93 million and $97 million.
Let me provide some additional commentary about the company's progress.
We are particularly focused on meaningful opportunities to enhance gross profit on an annual basis, which would leverage our fixed costs were.
We also expect to benefit from the company has now completed multiyear investment program to support our expansion, particularly at all stages of the odds global production and distribution capacity.
In short we have successfully built upon our history and industry reputation and expanded our product line offerings from a single category rotating electrical.
Offering multiple non discretionary products with in particular important focus on break related applications.
These products have different gross margin profiles that will impact overall gross margins.
But we expect to enhance gross profit as we leverage our overhead levels.
I should note that we have been in a ramp up mode for brake related products as should be expected as shipping as I should note that had been a ramp up mode for brake related products as should be expected of newly launched products. We expect gross profit margins will be enhanced as this business matures.
Equally important we expect to grow our product lines without substantially increasing our overhead.
In summary, new and existing existing customer expansion across all of our product lines is continuing.
Break related product categories are gaining momentum and being further enhanced by the recent launch of brake pads and rotors.
The underlying fundamentals of the aftermarket parts industry, a vibrant supported by an average vehicle age now exceeding 12 years, resulting in increased demand for replacement parts.
Demand is strong and we are a valued partner to our customers from a product quality and supplier standpoint.
Our electric vehicle diagnostic testing subsidiaries continues to gain traction.
I should mention we are well positioned to address both internal combustion engine markets and the emerging electric vehicle market with product functionality and applications across both markets.
That said industry observers expect continued growth demand.
Combustion engine applications for decades, and we offer a broad line of non discretionary aftermarket parts necessary to serve the internal combustion engine car population, which is approximately 280 plus million vehicles.
At the same time applications and services also offer significant opportunities to address the emerging electric vehicle market.
As this EV market continues to gain momentum, we will not only benefit from a non discretionary product offerings, but also from increasing demand for battery powered emulation testing and development of Inverters Electric Motors and high speed battery charging station applications offer by EV subsidiary.
As I mentioned on previous calls and highlighted earlier a bench top tester is for Alternators and starters continued to rollout at more than 15000 retail customer store locations. These bench top tester is enable retailers to offer accurate advice with the latest protocols to diagnose problems for consumers and reduce unnecessary.
Early returns.
This provides a value added benefit for the retailer while strengthening their consumer relationships with.
The global automotive test market is also very large at approximately $5 4 billion and we remain enthusiastic about our growth opportunities in this market.
Okay.
Notwithstanding the challenges facing the aftermarket industry in the near term supply chain freight raw materials and other pandemic related headwinds we are working hard everyday to mitigate these challenges.
Our global team is working in collaboration with our suppliers on logistic providers and we're passing through price increases and freight surcharges to our customers, which we believe are necessary and not unreasonable.
David will elaborate in more detail shortly I.
I will now turn the call over to David to review our results in greater detail.
Thank you Sal and good morning, everyone.
I would like to encourage everyone to read the earnings press release filed as an 8-K earlier today.
Contains more detailed explanations of our result, including our full fiscal year results on this call today I will review, both our fiscal fourth quarter together with the full fiscal year.
Before I get into details I would like to emphasize that our quarterly results are not indicative of our year over year potential as we have stated on previous calls it is not unusual to experience quarter to quarter fluctuations due to timing of orders.
We also continue to experience extraordinary global supply chain challenges inflationary cost pressures, while our price increases were not fully in effect.
And we made strategic inventory investments to support business growth and mitigate supply chain challenges.
Net sales for the quarter were $163 9 million compared with $168 1 million for the prior year period. However for the full fiscal year net sales of seven mentioned increased 23% to a record $653 million from 548.
A year earlier.
Gross profit for the quarter was $25 8 million compared with $32 1 million a year earlier.
Again for the full fiscal year gross profit increased to $117 9 million from $109 5 million a year earlier.
Gross profit for the quarter was impacted by noncash items as well as cash items.
Let me provide details for each and then I will.
To provide further details on the impact on each additional line item. So you can accurately understand the underlying fundamentals between periods and I appreciate our optimism as the new fiscal year evolves.
The noncash items reflect core and finished good premium amortization.
And revaluation of cores on customer shelves, which are unique to certain of our products and required by GAAP.
Total for these noncash items in the quarter was approximately $4 1 million.
A more detailed explanation of Cora County is available on our website and I would encourage anyone with questions about this topic to review the video.
In terms of the cash items, let's begin with Malaysia, the shutdown of the country by the government due to Covid and then the slow reopening impacted our facility and our regional network of key suppliers. In response, we quickly move to outsource certain products in China, but these products were unfortunately subject to 'twenty.
5% tariff.
These transitory disruptions in the supply chain as well as timing of shipments are being reduced as we ramp back up in Malaysia, and our suppliers recover as a reminder, one of the benefits of production in Malaysia as low tariff.
Our return to production at our facility in this country without a fairly immediate relief on tariffs.
Next we incurred higher freight costs.
Were in excess of the customer freight surcharges that we already implemented we have taken swift action to implement additional fixed surcharges and further price increases to mitigate this impact going forward.
These are expected to be further in effect in the fiscal first quarter, ending June 32022, and should offset more of the higher freight costs be incurred based on current rates.
Freight costs have stabilized for time being that we continue to monitor the situation closely.
The total cash impact of these transitory cost pressures related to supply chain disruptions on gross profit was $3 3 million as referenced in exhibit three of this morning's earnings press release.
Before moving on I should note that there were no ramp up and transition expenses related to our Mexico expansion this quarter, nor the third quarter compared with $4 8 million in the prior year fourth quarter. We're pleased that breakout of our production is increasing nicely.
Reported fiscal fourth quarter gross profit as a percentage of net sales was 15, 7% compared with 19, 1% a year earlier.
Reported gross margin was impacted by two 5% from the previously mentioned noncash items as well as a 2% and the previously mentioned cash items.
From transitory cost pressures related to supply chain disruptions.
In addition, gross profit as you would expect was further impacted by three key items.
We experienced inflationary costs related to raw materials and supply and offshore wage increases.
Price increases I mentioned, a moment ago should help offset these price pressures.
Second we experienced ramp up costs related to our growth initiatives for the new brake caliper product line with price increases and the ramp up of our for.
For our new business opportunities, we expect enhanced gross margins.
Finally, gross margin was impacted by product mix.
Moving on operating expenses were $21 million compared with $26 6 million for the prior year period. The decrease was primarily due to a noncash gain of $3 4 million for the mark to market foreign exchange impact of lease liabilities and Florida contract.
Pay within noncash loss of $3 7 million for the prior year fourth quarter.
The remaining $1 5 million increase was primarily due to increased share based compensation commission that travel and outside services expenses.
Reported net loss was 332000 or <unk> <unk> per share I should emphasize our results were impacted by items that totaled $5 1 million or <unk> 27 per share.
This includes noncash items totaling $1 9 million or <unk> 10 per share and primarily transitory cost pressures related to supply chain disruption totaling $3 2 million or <unk> 17 per share.
I should also note our reported net loss reflects $4 million in interest expense compared with $3 7 million for last year, primarily due to higher interest rates on the accounts receivable discount programs offered by our customers and higher borrowings.
Additionally, there was $1 million in interest income tax expense compared with 939000 in the prior year period.
Reported net loss in the quarter compared with net income of 835000 or <unk> <unk> per diluted share in the year ago period.
Results for the prior period were impacted by a total of $13 7 million or <unk> 70 per diluted share. This include the noncash items totaling $6 9 million or <unk> 35 per diluted share and cash items totaling $6 8 million or <unk> 35 per diluted share primarily.
To break caliber of startup costs and other product relocation expenses related to the expansion in Mexico and corporate related expenses.
EBITDA for the fourth quarter was $8 million EBITDA was impacted by $2 5 million of noncash items as well as a $4 3 million in cash items, primarily due to the transitory cost pressures related to supply chain disruptions EBITDA.
EBITDA before the impact of noncash and cash items mentioned above was $14 8 million for the fourth quarter.
EBITDA for the prior year fourth quarter was $8 5 million EBITDA was impacted by $9 2 million of noncash items as well as $8 8 million of cash expenses, primarily related to brake caliper startup costs and other product relocation expenses related to the expansion in Mexico.
EBITDA before the impact of noncash and cash items mentioned above was $26 6 million for the prior year fourth quarter.
It is important to recognize that we experienced a particularly strong nine month period. So the fourth quarter is not indicative of our year over year performance or our positive outlook.
Now, let me discuss the full fiscal year results net sales increased 23% to a record $650 3 million from $548 million a year earlier.
Net sales included $13 3 million in core revenue compared with $12 8 million in the prior year period due to a realignment of inventory at customer distribution centers.
With expected future sales benefits as product mix changes.
Gross profit for fiscal 'twenty, two was $117 9 million compared with $109 5 million a year earlier.
<unk> profit as a percentage of net sales for fiscal 'twenty was 18, 1% compared with 22% a year earlier.
Gross margin for fiscal 2002 was.
It was impacted by two 6% of noncash items and two 8% primarily by transitory.
Supply chain disruption as detailed in exhibit four in this morning's earnings press release.
Net income for fiscal 'twenty, two was seven 4 million or <unk> 38 per diluted share compared with net income up 21.
$5 million or $1 11.
Diluted share a year ago.
It is important to appreciate the impact of noncash items in our business, primarily due to the foreign exchange impact of lease liabilities for our Mexico operations and forward contracts, which are non economic and beyond our control for example for the prior fiscal year 2021.
The foreign exchange impact of lease liabilities of four contracts was a favorable pre tax gain of $17 6 million, which resulted in a total noncash favorable impact only 80000 or zero cents per diluted share in the current fiscal year 'twenty. Two there was only a favorable pre tax gain of $1.
$7 million for the foreign exchange impact of lease liabilities of four contracts, which resulted in a total noncash impact of $16 8 million or <unk> 86 per share as detailed in exhibit two in this morning's earnings press release.
The company also incurred a cash impact of approximately $14 1 million or <unk> 72 per diluted share for the current year compared with $15 million or <unk> 70 per diluted share. The prior year as detailed in exhibit two of this morning's earnings press release.
To summarize net income for fiscal 'twenty two.
Before the impact of noncash and cash items mentioned above.
It was $38 2 million or $1 95 per diluted share compared with 36 4 million or $1 88 per diluted share last year.
It should be noted that startup costs related to the Mexico expansion in Mexico, primarily brake calipers were realized during the first half of fiscal 'twenty, two and no costs were incurred during the second half of fiscal 'twenty two.
You had mentioned the effective tax rate was impacted in part due to specific foreign jurisdictions from which we did not expect to recognize the benefit of losses. However, we expect these losses will be utilized against future profits, which will benefit future tax rate.
EBITDA for fiscal 'twenty, two was $41 6 million EBITDA was impacted by $22 3 million of noncash items as well as $18 5 million in cash items, primarily due to the transitory cost pressures related to supply chain disruptions EBITDA before the impact of noncash and cash items mentioned above.
Bob was $82 5 million for fiscal 'twenty two.
EBITDA for the prior year fiscal 'twenty, one was $57 8 million EBITDA was impacted by only 107000 of noncash net gains as well as $19 4 million in cash items, primarily related to brake caliper setup costs and other product relocation expenses related to the expanse.
And in Mexico.
EBITDA before the impact of noncash and cash items mentioned above was $77 1 million for the prior fiscal 2021.
Now, we will move on to cash flow and key corporate items.
Net cash used in operating activities during the fourth quarter was $22 7 million versus $16 4 million cash used in operating activities in the prior year period.
This reflects working capital requirements to support record sales growth and inventory increases for anticipated business growth as well as proactive strategic initiatives to address potential supply chain disruption.
Due to the corporate related issues.
We believe these investments in our business will not only mitigate risk, but will also spur further growth for the company on a year over year basis.
Our return on invested capital on a pre tax basis at the end of fiscal year was 19.0% compared with 19, 1% a year earlier.
We are continuing to realize the benefits of expanding our Mexican operations and the launch of our new brake categories with expectations of increased returns from both new and existing product lines as the benefits of our strategic expansion are more fully realized.
And lastly, our net debt at the end of the quarter was approximately $148 7 million, while cash and availability on the revolving credit facility was approximately $100 million.
For further explanation on our reconciliation of items that impacted results and non-GAAP financial measures. Please refer to exhibits one through five in this morning's earnings press release.
I would now like to open the line for questions.
At this time I would like to remind everyone in order to ask a question press star followed by the number one on your telephone keypad.
We'll pause for just a moment to compile our Q&A roster.
Your first question is from the line of Matt Koranda with Roth Capital. Your line is open.
Hey, guys, it's Mike <unk> on for Matt.
Could we just start with a breakdown between rotating electrical electrical brake products and we will have revenue for the quarter.
Yes.
For the fourth quarter ended March $31 22, a rotating electrical products were 68% of sales.
Ill hop products, 14% of sales break litter products were up 13% and other products were 5% of sales.
Yeah.
Got it helpful. Thank you guys.
So in the quarter certain cash items related to supply chain costs seem to have gotten incremental incrementally better can you just elaborate on where specifically we're seeing improvement there.
Okay.
So overall as you mentioned those supply chain disruption costs have decreased so as further price increases go into effect, we are seeing a smaller impact as you mentioned sequentially over the prior quarter and we do expect as that further price increases go into effect that those supply chain disruption cost that we identify with.
Continue to come down.
Okay got it it's helpful.
And so in terms of the revenue guide looks really strong and in the press release, we highlighted an expected ramp in growth throughout the year.
Could you guys just provide some color on them.
What guidance is factoring in per product category growth in fiscal 'twenty. Three are we assuming kind of similar growth across all products or as the guide given credit to stronger Bakken.
The categories.
Look the newer categories as a percentage youre going to have much much higher growth than the brake related categories are going to have higher growth.
We expect growth across the board.
I think our guidance is reflecting sales commitments that we have mouth. So.
We think there's still plenty of opportunity as.
As we go down the road so.
I think overall break related products will continue to grow significantly as well as all of our other product lines on a more stable basis.
Got it okay that makes sense.
Last one for me.
And the implied EBITDA guide could you just speak to how.
How and to what degree we're factoring in the headwinds into the guide So let me touch on higher gas prices potentially lower vehicle miles traveled in the year.
Supply pressures.
I think we've looked at that.
I think that's certainly is mitigating or we think could be even incremental growth I mean, we've got high gas prices.
Miles driven those continue to be fairly strong but.
We're going to have to wait and see how that unfolds, but I think the fundamentals of the market.
The aging population of cause and the lack of new car availability people are going to be required to repair the collars on I think.
<unk>.
I think regardless of miles driven we should see some positive growth.
Got it that's all from me guys. Thanks.
Thank you.
Again, if you would like to ask a question press star followed by the number one on your telephone keypad.
Your next question comes from the line of Bill <unk> with Teton Capital. Your line is open.
Alright. Thank you if you'll allow I have number of questions first of all I.
I would like to get your commentary around the softness that you saw in January and February and what you believe voice the causes of that.
And <unk>.
Conversely discuss the strength that you saw in March.
What led to that and it and to what degree that strength has continued in that.
April may and into June .
That's a pretty comprehensive question Bill yes.
And yes, we are so focused on the future I'll try and sort of rig count.
Those months, but.
We had a soft start certainly to the quarter.
Hey, Matt.
Yes, there has been a new sink to update orders and so the first thing is just because.
Because of supply chain challenges and not always related to us, but it could be related to other suppliers. So sequencing update orders by our customers changes the change. So we see some pushback out of the fourth quarter into later months and most current tier of some update orders. The other thing is there was some pretty.
Our reported by our customers some extreme rain in some high volume areas.
That affected sales so.
But I can tell you March I think was the.
David is clearly the biggest month, we've ever had in the history of the company.
So youre right March did come back strong and things started to normalize more in <unk> and.
And demand.
As well as choppy as continues to be strong.
So.
Look as we go through this next year, we think is strong although we are cautious because there is there is a high degree of uncertainty.
Just in the World in General quite frankly, I think recessionary times for us generally could be.
I don't want to say good, but we certainly don't suffer like all those because of recessionary times in some ways. It's helpful. Because these costs stay on the road longer than people have got to perform.
Repairs and the repairs they performed for US we have non discretionary parts. So in Asia breaks to drive your car you need an alternator you need a startup.
And et cetera. So.
We are very positive about the future.
Thanks, guys.
On an EBITDA basis, where we're going to be pushing close to $97 million for this fiscal year.
While there still will be the noncash fluctuations, which are completely non economic.
With revaluations leases on our subsidiary I mean, it means absolutely nothing these are the lease has to be in the Mexico subsidiary because of the Maquiladora rules and it's a dollar cash lease. So all of these currency fluctuations are completely 100% non economic.
Write downs on cores on customer shelves are completely non economic or contracts require that the customer.
Sure.
Terminate if they ever terminate us pay a fixed dollar value for those for those calls so those write downs on completely noncash non economic so there.
We think that the the amount of economic adjustment should come down dramatically, we're expecting good price increases and so overall I may not have sort of overstep to your question a little bit, but I see strong strong demand because we are gaining share in product lines and I see continued strong demand in the <unk>.
Fundamental industry average age of vehicles growing repair rates go up as cars get older.
Sure.
Yes.
While fuel prices have gone up but they affect airfares substantially and so people are driving across on vacations and the alternative is better in driving your vehicle than spending on <unk> and other means of transportation. So.
That's our outlook.
Hope that answered your question.
That is helpful and how about the strength that you saw in March maybe not continuing with record months levels. As you said March was a record month for a record March.
Have you seen that strength and then continue in April may and here into June since weather was better and maybe the supply chain is a little less plus.
Less challenging.
Yes.
I'm not going to say because March was an extraordinary March and are coming off of a very soft January so that's sort of offset each other all I would say is that the fundamentals are strong right now and we expect we expect to be at the high end of our guidance, so and or perhaps even beat it but we will we want to be conservative in.
We want to be.
To take into account the considerations of where we are.
Okay Thats helpful.
And actually let's let's jump to supply chain I made a presumption that this supply chain was improving maybe maybe I can just ask a flat out is it improving is it worsening or is it just really very similar over the last few months well you saw our Shanghai have these enormous shutdowns over the last two months three months and so.
That really put a.
Our hold on the improvement in supply chain, <unk>, Shanghai shuts down and you can't move trucks around them.
Quite frankly, I'm not sure what happened I'd have to check the outcome, but over the weekend Shanghai went through mass testing and.
And another shutdown over the weekend looking out to sea wasn't infection rates were in.
It's hard to predict the days I would tell you it's improving in our menu and then you have an unexpected Chinese event, mostly that that affect us pretty dramatically.
The good news for US is that our Malaysian operations are up and running and producing our dependence on China continues to diminish.
And our brake caliper facilities absorbing more production.
Our dependents gets less and less freight.
Yes.
For a while seem to be getting better in terms of availability.
It's very choppy and so.
I would say in general just from the large portion around it right now prices are up dramatically on components.
And we are pushing them through.
We have no choice.
And speaking of price increases would you. Please update us in terms of the timing of planned price increases well will flow through.
The P&L.
And.
When you were last price increase is expected to be flowing through the P&L.
Yes.
Expect more price increases in May we got pushed back a little bit they should've been earlier in the quarter.
And to be honest with you the perpetual price increases go.
One on as we react to the marketplace and so we'll have price increases going through all the way through August at this point in time so.
We don't expect that to stop unfortunately, or Fortunately I mean.
There is inflation in there just costs that have to be pass through to ultimately consumer.
And then.
So just for clarity on that so the through August is that price increases that you will be announcing with your customers or the price increases will be flowing through the P&L.
Starting or ending in August as it what you know today.
As of today, we have price increases that have already been notified all the way through August .
Okay got it. Thank you very much and then lastly for now and bench top casters.
Is there an opportunity to reduce the return levels as a result of having the bench top tester. So.
Here's the theory or the spirit of the question if you will.
It.
Is 15000 retail locations are buying these testers from you, but the advantage is that when a consumer comes into the store they actually know whether they need.
A new.
A new component order or not.
And if they do.
Then that's installed in the vehicle and not brought back to the store and return because there was a mistake made and then ultimately with lowering your costs.
Is this a correct.
Line of thinking and if so.
What's the magnitude how significant is it.
First of all so thats absolutely correct. The magnitude is going to be interesting as we roll them out I mean right. Now there are test is theyre not the testers that are in place are not capable of testing all the new applications that are out there.
The most important thing, though for the stores for the retailer is is that they are able to give accurate and trustworthy advice.
So instead of disappointing a customer without solving the problem of the customers trying to solve there.
They'll be able to guide that customer more effectively through making the right choice.
I do think that costs will come down it's going to be very hard to quantify and it's going to take some time before we see that.
Great. Thank you.
Thanks Bill.
There are no further questions at this time I will now turn the call back over to Mr. Selwyn choppy.
Okay. Thank you. Thank you everybody.
Say in summary.
We are excited about our future we have reached a strategic inflection point in our transition and we expect a strong year with opportunities to build on both our topline and our bottom line with our existing product lines.
<unk> I want to thank all our team members for their ongoing commitment and.
As usual customer centric focus on service during these challenge challenging times, we remain particularly focused on the safety and well being of our employees and I am extremely proud of our team members and our company.
And I look forward and we appreciate your continued support and I. Thank you again for joining us on the call and we look forward to speaking with you when we host our fiscal 2023 first quarter conference call in August and at future Investor conferences.
Thanks.
Ladies and gentlemen, thank you for participating. This concludes today's conference call you may now disconnect.
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Sure.
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Yes.