Q2 2022 Atlas Technical Consultants Inc Earnings Call
[music].
Hello, and welcome to the Atlas Technical consulting second quarter 2022 conference call.
Currently all participants are in listen only mode.
A question and answer session will follow the formal presentation.
If anyone should require operator assistance during the conference.
I'll start at zero.
On your telephone keypad.
As a reminder, this conference is being recorded.
I would now like to the call over to your host Jonathan partner Chief strategy Officer of Atlas. Thank.
Thank you you may begin Mr corner.
Good morning, and thank you for joining us we hope that you have seen our earnings release issued after the market closed yesterday.
Please note that we have also posted an updated investor presentation, which can be found in the investors section of our website at IR at one Atlas dotcom.
Before we begin I'd like to remind you today's call may include forward looking statements. These statements describing our beliefs goals plans strategies expectations projections forecast and assumptions are forward looking statements.
Please note that the Companys actual results may differ from those anticipated by such forward looking statements for a variety of reasons many of which are beyond our control.
Please see our recent filings with the Securities and Exchange Commission, which identify the principal risks uncertainties and uncertainties that could affect our business prospects and future results. We assume no obligation to update publicly any forward looking statements. In addition, we'll be discussing or providing certain non-GAAP financial measures today.
<unk> adjusted EBITDA adjusted EBITDA margins adjusted net income and adjusted EPS. Please see our earnings release and filings for a reconciliation of these non-GAAP measures to their most directly comparable GAAP measure.
I will now turn the call over to our CEO Joe Boyer.
Thank you Jonathan and I appreciate everybody joining us today.
On today's call I'll provide an overview of our second quarter results.
We are seeing in our core markets and updates on our strategic priorities.
Then David will continue with the discussion of our second quarter financial results and our outlook for the remainder of the year and then we will open up the call for questions.
Second quarter was another strong period for Alice with record revenue.
<unk> EBITDA and backlog.
These results clearly highlight the successes we are seeing in our strategy.
To build a national leader in high value mission critical technical services to.
Both infrastructure and environmental markets here in the U S.
In the quarter, we generated 19% revenue growth included an acceleration of our organic revenue growth to 8%.
Over 17% adjusted EBITDA margin and sequential backlog growth.
All to record levels and cash flow improved in line with typical seasonal patterns.
Our 8% organic revenue growth in the quarter. It was one of the best quarterly organic growth rates, we recorded as a public company.
The strong organic growth in the quarter was driven in part by the robust backlog growth we've experienced over the past several quarters.
Fundamentals in our key end markets and geographies remain favorable throughout the quarter.
We saw particular strength with our transportation.
State and local government.
Empower clients all of which we expect to remain key growth drivers for Atlas moving forward.
We also continue to see benefits from increased cross selling their services across the Atlas platform, including recently acquired services.
As we scaled the business and added strength to our technical service offering.
We're gaining greater share with our clients and winning more marquee projects.
To provide you with a better idea of how the strategy is benefiting Atlas let.
Let me take a minute pleased to describe a few projects, we believe really highlight the success.
In California, where we've had a longstanding relationship with Caltrans where.
We were able to leverage our success with them on construction engineering and inspection services.
Two a statewide materials engineering and testing services contracts, increasing the number of services under the Atlas umbrella that were provided to this customer.
In Idaho, we were recently awarded a $5 million construction engineering and inspection project and our program construction and quality management service line.
This is our first transportation related PC QM award in the state, where we have previously mainly provided testing inspection and certification services.
Again, an example, we are cross selling our key customer with additional services.
Switching to the private side of our business.
In the southeast where.
Where we have historically provided utilities with smaller environmental related services on one off task order basis.
We have leveraged our experience scale and breadth of capabilities into a $25 million long term master engineering and environmental services contract one of the nation's largest utilities.
We're also expanding our services with large national government agencies.
For example, we have been provided in the department of energy with Geotechnical services, one of its largest energy laboratories, and our now expanded our scope with a $20 million program that includes testing inspection and certification services.
We hope to leverage to other sites across the country.
While these are only some examples where we're seeing success with our cross selling strategy. We believe they are great. Examples of the benefits of our strategy and highlight how it is contributing to growth across the Atlas platform.
In addition to strong revenue growth, we had record gross margin of 64% in the quarter when excluding pass through subcontractor cost.
This margin performance is a testament to our high quality services Atlas offers and demonstrates our ability to pass inflationary pressures through to our clients.
Backlog at the end of the quarter reached another record level at $855 million.
Up modestly from last quarter and up 14% from last year.
As we've talked about with cross selling we're winning work across all of our end markets and across all of our service lines.
Importantly, we.
We continue to see demand being driven by long term secular themes as our customers drive to improve their environmental sustainability and to improve the overall efficiency of their existing infrastructure.
Beyond our $855 million backlog, we have approximately $155 million of awards pending contract execution, which is significantly higher than the $110 million, we had for last quarter and marking the first time. The combination of these figures is greater than $1 billion.
As we've discussed with backlogs and awards figures can be lumpy from quarter to quarter.
The seasonality of our business and the impact of large project wins, which we expect to continue to be a key growth driver for Atlas going forward.
And as we look into the second half of the year, we continue to see solid demand for our services, especially in our core transportation and environmental related end markets driven by the underlying secular themes such as the aging of our nation's infrastructure and increased focus on environmental sustainability.
While we are cognizant of the factors impacting the broader macroeconomic environment and the risk it could pose to demand for certain services in our markets.
We believe we are well positioned to navigate any volatility that may be on the horizon.
First.
I would note that our services, we provide to end markets that are most sensitive to higher interest rates and general macroeconomic conditions, such as Newbuild commercial construction and real estate transactions are relatively small piece of our business.
Secondly, and probably most importantly.
Nearly two thirds of our business is tied to existing assets and services that are driven by non discretionary spending because they are tied to regulatory compliance ongoing testing and maintenance.
Making demand for our services relatively resilient through most economic cycles.
Driving organic growth remains one of our top priorities.
And we believe we are in a good position to do so given the nature of the services. We provide the diversity of our end market exposure, our robust backlog and award pipeline as well as our thorough cross selling initiatives.
Beyond driving organic growth.
We have a proven strategy that broadens that enhances our technical service offerings and geographic footprint through strategic acquisitions.
Our M&A playbook is based on identifying targets with quality management teams that can enhance or expand our service offerings and our regional presence.
Integrating them into the Atlas structure, retaining their key employees and then scaling the business across our platform, including the cross selling of services.
In the first quarter, when we acquired transport, we've talked about being able to leverage their expertise and intelligent transportation systems, and electrical engineering across our national customer base.
And we are already seeing opportunities here and are currently working to position Atlas for electric vehicle charging infrastructure opportunities in Georgia on projects that will be funded through the national electric vehicle infrastructure Formula program.
Transport unique blend of transportation and electrical engineering capabilities places us in a strong position to.
Pursue these types of opportunities in the $5 billion and Evi program.
We're also building on relationships that come to Atlas dealer acquisitions.
Last year, we acquired O'neal services group, a premier construction quality assurance and environmental services firm based in the Pacific Northwest.
We're <unk>.
Leveraging the strong relationships that were brought to us through the acquisition to establish a strategic alliance with a large national infrastructure construction company.
Alliance will allow atlas to seamlessly provide them with environmental quality assurance and inspection services.
Assistant and our company for additional work on major infrastructure projects with them across the U S.
As we continue to grow we remain committed to strengthen our capital structure and are constantly evaluating all options that can drive shareholder value.
We've reduced our total debt in the quarter leverage was down modestly from last quarter and.
Based on our earnings forecast and robust cash generation outlook for the second half of 2022.
We expect a further improvement in the leverage ratio in the coming quarters.
We are confident that our M&A strategy will continue to drive outsized growth and improve our leverage ratio.
We have a robust M&A pipeline with proprietary candidates. However, we maintain.
A disciplined capital allocation strategy.
Continue to ensure that any partnership we pursue will be highly accretive to our shareholders deleveraging.
Well positioned to analysts for continued success during all stages of the economic cycle.
Lastly, I'd like to reiterate our commitment to ESG in June we issued our inaugural ESG report titled leading with heart.
The report highlights the progress we've made internally as a company unrelated topics as well as how we help our customers meet their ESG objectives.
We have also set goals that will shape, how we operate as a responsible and sustainable company and in how we serve our customers.
Debate and outstanding workplace.
With that I'll turn the call over to David to provide details on our financial performance and outlook.
And I'll come back with a few closing remarks David.
Thank you Joe.
Most revenue of $156 5 million in the second quarter of 2022 was up 19% compared to the prior year quarter.
Driven by 8% organic growth with strong performance in all of our service areas as well as contributions from acquisitions.
Gross margin was 47, 3% down modestly compared to last year due to a greater percentage of subcontractor costs in the quarter.
Excluding subcontractor cost gross margin expanded 90 basis points to 64% our strongest quarterly result on record.
This was driven by utilization of our workforce strong execution and our disciplined pricing strategy.
Adjusted EBITDA was $21 2 million in the quarter up 16, 7% from last year and represented 17, 3% of revenue excluding subcontractor costs.
This was an improvement of 20 basis points compared to last year.
Year over year increase was mainly due to our stronger gross margin and leveraging of fixed overhead costs.
This however was tempered by higher personnel costs as we are investing in our workforce and retaining key talent in support of current and ongoing growth driven by the fact as Joe discussed such as our record backlog pending New awards and traction on larger projects.
For the second quarter, we produced adjusted net income of $4 5 million and adjusted EPS of <unk> 12.
Versus adjusted net income of $4 1 million and adjusted EPS of <unk> 11 in.
In the prior year quarter.
Year over year increase was mainly driven by the improved operating results we mentioned.
Moving onto our cash flow and the balance sheet.
During the second quarter, we generated $9 $8 million of cash from operations and this was compared to $7 8 million in the same quarter last year.
Our cash flow in the quarter represented strong performance for the business as we enter our strongest revenue generating quarter of the year, where working capital demands increase.
As we've discussed previously improving working capital management is a key priority for us and.
And we're focused on driving this throughout all levels of our organization.
Based on our outlook, we continue to see stronger cash flow in the second half of 2022.
The improvement in the third and fourth quarter and expect full year cash flow in 2022 to exceed that of 2021.
Net debt at the end of the quarter was $500 million down from $508 million at the end of last quarter.
Our bank covenant leverage ratio, which includes cost efficiencies and pro forma EBITDA from the acquisitions decreased to five six times from five seven times last quarter and down significantly from six seven times when we recapitalized the company in early 2021.
Pursuing an aggressive path to deleveraging our balance sheet and improving our overall capital structure remains a top priority for Atlas and we're continually looking for avenues to do so.
Consistent with this on June 1st we entered into an interest rate hedge agreement with Jpmorgan Chase, which caps the variable portion of our interest rate of 3%.
This agreement eliminates the uncertainty of extreme downside risk in a rising interest rate environment.
Also last week as a result of our continued deleveraging of the business.
Since our recapitalization in early 2021, we effectuate a $20 million expansion of our revolving credit facility via the pre established accordion feature with JP Morgan Chase <unk>.
Increasing the aggregate capacity to $60 million.
This expanded capacity better support the financial flexibility suited for our rapid growth enterprise of our size and trajectory.
Again, we appreciate the continued strong support of our lenders Blackstone and J P. Morgan Chase as we continue to execute on our robust growth strategy.
Moving onto our outlook for the remainder of the year, we are reaffirming our revenue and adjusted EBITDA outlook for 2022.
We expect 2022 revenue to be in the range of $580 million to $620 million and.
<unk> of 11, 5% at the midpoint as compared to our 2021 results.
This outlook reflects the strength of our backlog and visibility on the timing of work and continued solid demand for our technical services as Joe discussed in his remarks.
We anticipate adjusted EBITDA to be in the range of $84 million to $90 million.
At the midpoint this represents growth of 19% and 100 basis points of margin expansion as compared to our 2021 results.
We are keenly focused on driving our cash flow throughout the year and as I mentioned expect enhanced cash flow results moving forward, especially as we get into the latter part of the year.
We are extremely excited about this growth expectation for our business moving forward and with that I will now turn the call back to Joe for closing remarks.
Thank you David.
As I mentioned earlier in the call when we formed Atlas nearly five years ago. Our goal was to build a leading national provider of mission critical technical services to both infrastructure and environmental markets.
We've made great progress in growing this business, both organically and through M&A over the last several years and are excited about the growth prospects going forward.
We've had a great start to the year with accelerating organic growth and reach and record quarterly levels of revenue adjusted EBITDA and backlog.
We are investing in our people and processes cultivating a strong workplace culture and building a great portfolio of technical services that are in high demand.
And that are needed to keep our nation are running in a safe efficient and environmentally sustainable manner.
Thank you again for joining us.
Operator, we can now open up the lines for Q&A. Please.
Yes.
We will now begin the question and answer session.
To ask a question across southern Williams telephone keypad.
Speakerphone, please pick up your handset before pressing the keys.
To withdraw your question. Please press Star then two.
Please limit yourself to one question and one follow up at this time, we will pause momentarily to assemble our roster.
Our first question will come from Chris Moore with CJS Securities.
You May now go ahead.
Hi, Good morning, it's Pete Lucas for Chris.
First question for me relates to labor firsthand Atlas in terms of employee levels and turnover. It looks like you guys have a significant number of job openings. How do you view labor availability at this point and is that a gating factor in terms of your growth and then as a side question. What are you hearing from your customers is it impacting their growth.
In terms of labor availability.
Thanks very much for that question. This is Joe <unk>.
We.
I've often said this we were always in a tight labor market here.
And since we started this business.
And we have internally relied on recruiters to help us.
Bill our positions and stay ahead of our demands for labor and we've done an absolutely great job of that.
Ever since.
Back in the period of Covid and going through today, So we see a nice steady.
Progression of our backlog and future going into Qs three and four are labor demands our utilization is.
As high but we still have three or four points of labor production, our current labor force.
And we are steadily adding labor to that direct labor and new hires so that as we go along so we.
We feel good about our.
Our outlook for our labor and filling those positions.
Let me say in regards to our clients in there.
Issues with labor I cant say that Ive had any.
Input from our clients in regards to restrictions on <unk> business due to labor.
I know we are seeing increased.
Demand for program management services to <unk>.
Help them with their projects on our public sector markets.
Very helpful. Thanks, and a follow up from me just on revenue.
You can talk about in terms of cadence you look for from Q3 to Q4 and in terms of your guidance that you stated the 580 to 620.
A wide range and we're decoupled.
We're into Q3 here just wondering is there any wildcards in Q4 in terms of whether you make the high end of that range or not and what specifically are you focused on there.
Great. Thanks, This is David Quinn.
So you should expect to see sort of the traditional profile for our business, meaning the third quarter is typically our strongest quarter.
So youre going to see a man among let's say, 5% bump in volume coming off of Q2.
And then you'll probably see Q4 trail back down maybe more closely in line with our second quarter as.
As the momentum of the business continues to build.
Relative to the outlook for the year first we feel very confident.
About the guidance the strength of our backlog.
Yes.
Contract not executed at $155 million that you mentioned.
So we have great visibility through the end of the year.
That said.
At $5 80.
To $6 20 range, what could influence that.
And.
Really not a lot we've got a couple of larger projects come online, but at this point, we've got pretty good line of sight on it and we feel good about revenue.
Very helpful. Thanks, I'll jump back into queue.
Our next question will come from Rob Brown with Lake Street capital market.
You May now go ahead.
Hi, Joe Hi, Dave.
Congrats on the quarter.
Thanks, Rob appreciate that.
Hi, first question is really on the M&A pipeline I think you talked about evaluating.
Things just wanted to get a sense of how how active is it at this point and how do you see that over the next few months how is the environment at this point or has there been any changes in valuation.
Yeah, Hey, Rob.
So I'll take that in two parts in terms of valuation this as John pointed out by the way, we really haven't seen much change in recent months. There is still a lot of interest in this space through the resilient nature of public works spending.
And obviously that's been bolstered recently here by the infrastructure Bill. So we haven't seen a change in terms of multiples, but we are still seeing plenty of opportunities right in our valuation wheelhouse, where we've been successful.
All along and.
In terms of our pipeline and activity going forward with a very full pipeline.
With proprietary deals.
We're continuing to evaluate I would say however, more now more than ever we're focused on being disciplined in our capital allocation strategy.
And we will only move forward with deals that have a client base that we know is going to be resilient through all stages of the economic cycle.
It's going to be highly accretive to our existing shareholders.
Deleveraging and we saw some volatility in our stock price in Q2, I think it's safe to say and in situations like that we're not going to be jumped out ahead issue.
<unk> shares to fund M&A.
So I hope that's helpful. Rob.
That's great. Thank you.
And then second question on gross margins, a nice uptick in the quarter.
What's sort of your thoughts on.
Increasing those going forward, how is pricing and kind of labor costs.
Pulling through at this point and do you see that stepping up in the back half.
Yes, so we're really pleased obviously, where the quarter came in.
We broke through that 60% level to 62, which is an all time record for the firm for gross margins on labor.
I think what we're seeing in the quarter is that where we're really demonstrating the pricing power of whats a 90% cost Reimbursable organization.
And aggressively instituting increases across the client portfolio and we're really now seeing the benefit of that catch up to our results.
In addition, we're seeing excellent utilization across our workforce as Joe mentioned we.
We increased our workforce by several hundred.
This quarter and utilization is higher than it's ever been so we're really starting to see that efficient prove efficiency prove out as well relative to driving our gross margins up on labor they are pretty high over 60% as ALLETE for sure Youll still continue to see some flux in the mix of self performance versus <unk>.
Contractors, and we had a little bit more.
Sub contractor contribution this quarter.
And we're always going to be trying to.
To move the needle on that as well, but I think we're kind of in a range.
You may see it move a point or point and half on gross but.
We're a pretty good range right now.
Okay. Thank you I'll turn it over.
Our next question will come from Brent Thielman with da Davidson.
You May now go ahead.
Hey, Thanks, good morning, guys.
Hey, Good morning, Brian Hey, Bryan Bryan.
Okay.
Nice quarter.
I guess the question it looks like Youre pending awards were up nicely from the first quarter, but your bookings and backlog look to be lower are you are you seeing slower conversion of pending awards to award maybe maybe you just got some larger <unk> that take longer to get a crude.
Or maybe there's just another explanation around that.
Brent Thanks very much.
Really I can't say that we are seeing a slowdown in the awards I think that those awards pending signatures to move the backlog does vary quarter to quarter and as you saw the growth we grew at about $40 million or so in the quarter, but it's not indicative of anything other than just straight.
Timing of some projects such as large project awards that we haven't seen any slowdown in moving those from pending backlog anything noticeable.
Yes, okay.
And then Dave I guess.
When you typically generate.
Really good cash flow here.
Second half.
We put the debt and the leverage.
This $50 million and adjusted EBITDA.
We anticipate doing over the next couple of quarters are you expecting sort of a typical conversion call. It 50 odd percent to operating cash flow is there anything in this environment.
We're in right now that changes those dynamics at all.
Yes, Brian I would say, we're probably looking at something a little closer to 35% to 40%.
And obviously I'm going to press to do better than that but we'll probably a 35% to 40% range.
And we're seeing some we're seeing some impacts of the inflationary environment, obviously, some impacts with interest rates rising and that kind of thing, which is tempering it a bit in the back half of the year.
We will true to form we will deliver our very strong cash flow.
Second half of the year.
Okay, great. Thanks, guys.
Okay.
Our next question will come from Tom.
Johnson Rice you May now go ahead.
Good morning, gentlemen, how are you all day.
Hey, Dan Good morning, John how are you doing.
Doing well doing well I just wanted to I guess ask.
A little bit more on brents question.
More for my knowledge of the industry.
<unk>.
As far as inflation is concerned amongst your customers does that influence kind of buckets of money that could go towards your projects.
<unk>.
A more kind of curious as to you know.
Gasoline prices.
They've come back recently, but a lot of municipalities were counting.
In a tight situation there and I didn't know if the ongoing contracts that you have with them could be influenced and kind of slowdown New awards, if they had to kind of shift money around.
Paper municipality gas prices for comps or anything like that and just any color you could give around there would be helpful.
Okay.
Let me sort of take the first part I think Dan what we're seeing so I'll remind you that a lot of our work is around maintenance of existing.
Projects and infrastructure, so stuff, that's sort of non discretionary right has to be done, but we are seeing some impacts of the inflation in construction costs with our with our clients and really thats around.
Budgeted in our projects they might have put a project out of the scale.
Construction costs have come back higher then.
<unk> budgeted so they've had to come back in and retool that project put it out in another and.
And a scope and a smaller fashion to match, we see it we see quite of that in the public markets municipalities for sure. The projects continue to come out just a little bit smaller to make sure. They match their budgets and stuff. So that's really the only impacts we've seen in regards to.
What you're referring to but it doesn't.
<unk> our work, we're still out in the field so progressing our Kellogg.
I'm trying to ask can you can you help me on the second part of your question you were talking about.
I sort of missed the second half of the question.
Yes.
We've seen some reports that the buckets of money had been moved around and municipalities because of.
Higher gas prices et cetera.
And I'm more referring to the.
Press releases that police departments et cetera had been blowing through their budgets because gas prices were two to $3 more than the budget is et cetera, and I didn't know if that kind of impacted.
And the awarding of contracts going forward.
Whether it regards to roads or maintenance or anything else.
Yes, okay. So.
I can't say that I can add a whole lot to that other than what I've described there.
I think Don.
Can't.
The coffers of the public.
Clients, we're seeing are really full of the projects are continuing to come out.
I don't know that I have insight into the moving around.
No.
There are pockets of money behind the same but our steady projects have been rolling out we're continuing to do a lot of our work under the <unk> program the management pieces.
Maintaining their existing infrastructure so.
We arent seeing any current delays, particularly in our public in.
Ms <unk> market on any other infrastructure projects seems pretty steadily moving along so.
That's good.
I appreciate all the color there and just one more quick one if I could slip it in.
Are you still seeing a lot of demand coming going into early 'twenty three from infrastructure projects from the infrastructure Bill specifically because.
Because I don't believe those those have really started rolling out yet.
That's correct.
I think as I've.
As I've said, we continue to see.
Of that more as a 2023 type.
Impact on our business, Dan I mean, I think we are seeing.
Municipalities and Dot's.
We are planning projects, but the funding hasnt.
It hasnt quite come through on that so we're still seeing as the 2023 impact to our business.
I appreciate all the color and I'll jump back in queue. Thanks.
Thanks.
Okay.
Again, if you have a question. Please press Star then one.
Our next question will come from Noelle Dilts with Stifel. You May now go ahead.
Hi, good morning, So I was.
Looking at your percentage of pro forma revenues, if its a little bit lower I think you talked about some reasons why.
I'm curious how to think about that moving forward given your project mix and that Youre ramping on some of these larger projects should be expect.
I guess, how should we think about self perform versus outsourced work moving forward.
Yes Noelle.
Great question.
I'll start here, Joe May add to it but yes, we are bringing on larger projects and programs to the platform often.
We do see that the contracts have some minority or disadvantaged business requirements that come along with them.
And that does drive a bit of an uptick on.
Our subcontract component.
No on a positive note we have seen some ramping of our field geotechnical drilling and analytical chemistry activities. This this quarter in support of our government solutions work.
Environmental solutions work.
And lastly, there has also been some inflationary impacts on <unk> contracts, where theyre looking to recover that cost the same way we.
So.
The fact that we're may be 78% this quarter versus 81, where we've been running we're not too worried about it we're going to kind of move I think in that 79% to 81 range from quarter to quarter, Jeff, Yes, I wouldn't add anything other than that I don't think anything.
Real appreciable I think.
Our <unk>.
Margins are on subcontract work, maybe have changed a little bit in regards to some of the field mix by more geotechnical work. So I just think noelle between 78 to 81 and thats going to be we're going to sort of be in that range dependent on what projects are in the field and what.
Mixes might be.
Okay got it.
Then.
Just on with the and placing reduction act.
Moving forward.
Have you looked into or.
How are you thinking about any potential impacts for some of the environmental work that you do do you think that could lead to an uptick in work given that.
Private corporations may be facing tougher regulations or standards any any thoughts on that.
Yes, no thats a great question and I will tell you that no that ones.
Fairly new on our radar screen and we are trying to analyze that but as we see it.
Just like the infrastructure Bill is more of an infrastructure bill for the environment.
So and there are tremendous amounts of buckets in there that we.
Perform.
Really well into the markets.
As EV charging stations in there as well Newbuild EG facilities. There is the block grants for air pollution, Theres air monitoring and their whole climate resiliency. So all those elements of that.
Inflation reduction Act.
We feel just like <unk> play nicely into our services so.
Still in the early stages of analyzing that but we see it as upside potential going forward.
Great. Thank you.
This concludes our question and answer session I would like to turn the conference back over to Joe <unk> for any closing remarks.
Thank you very much and listen.
Thanks, everybody for joining us today, we appreciate your support and look forward to discussing our results in Q3 and four thank you very much.
The conference has now concluded. Thank you for attending today's presentation you may now disconnect.