Q3 2022 MYR Group Inc Earnings Call
Okay.
Good morning, everyone and welcome to the MYR Group third quarter 2022 earnings results Conference call. Today's conference is being recorded at this time for opening remarks, and introduction I would like to turn the call over to David Gutierrez of Dresner Corporate services. Please go ahead.
David.
Thank you and good morning, everyone.
I'd like to welcome you today I'm wire group conference call.
Third quarter results for 2022, which were reported yesterday.
Joining us on today's call are Rick Swartz, President and Chief Executive Officer Eddie.
Johnson Senior Vice President and Chief Financial Officer.
Todd Cooper Senior Vice President and Chief operating officer of MYR groups' transmission and distribution segment.
Jeff wanted to senior Vice President and Chief operating officer of MYR group's commercial and industrial segments.
If you did not receive yesterday's press release, please contact dresner corporate services at 312.
Two 630 600.
We'll send you a copy or go to the MYR group website, where a copy is available under the Investor Relations tab.
Also a webcast replay of today's call will be available for seven days on the investors page of the MYR group website.
Before we begin I want to remark.
Mind, you that this discussion may contain forward looking statements.
Such statements are based upon information available to MYR groups' management.
Great.
Our group assumes no obligation to update any such forward looking statements.
These forward looking statements involve risks and uncertainties that could cause actual results to differ materially from the forward looking statements.
Accordingly. These statements are no guarantee of future performance. These risks and uncertainties are discussed in the company's annual report on Form 10-K for the year ended.
Number 31 2021.
The company's quarterly report on Form 10-Q for the third quarter and in yesterday's press release.
Certain non-GAAP financial information will be discussed on the call today.
Reconciliation of these non-GAAP measures to the most comparable GAAP measures is set forth in yesterday's press release.
With that said, let me turn the call over to Rick Swartz.
Thanks, David Good morning, everyone welcome to our third quarter 2022 conference call to discuss financial and operational results.
I'll begin by providing a summary of the third quarter results and then we'll turn the call over to Betty Johnson, Our Chief Financial Officer for a more detailed financial review.
Following Betty's overview, Tod Cooper, and Jeff Walker, our chief operating officers for our T&D and C&I segments will provide a summary of our segment performance and discuss some of MYR group's opportunities going forward. I will then conclude today's call with some closing remarks and open the call up for your questions.
Our strong market position and consistent performance contributed to our third quarter results. We continue to have a steady backlog and acquire new work in competitive markets, which positions us well for consistent success moving forward.
Electrical infrastructure across North America continues to see significant investment and expansion.
The 2022, North American electric transmission forecast by the spicy three group released in September indicate our strong potential for healthy growth moving forward as electricity demands continue to increase across the country.
Our pivot to clean energy is largely dependent on new and upgraded transmission lines, and Anthony and an integrated grid, where carbon reduction and clean energy targets could be spend drivers.
We continue to track this and other major transmission expansion projects that may lead to future work opportunities.
A greater demand for clean electricity and focus on electrical vehicle charging infrastructure as well as the need for upgraded facilities in target markets such as transportation.
And vehicle dealerships are signed for potential growth in our C&I segment.
Long standing relationships with our preferred clients continue to benefit our C&I segment as we work together to mitigate supply chain challenges.
We continue to see consistent bidding activity, including distribution transmission and clean energy projects in our T&D segment. Similarly, our C&I segment is experiencing steady opportunities in our core markets such as data centers clean energy and health care.
Our continued training and investment in our people allows us to remain at the forefront of the industry and provide our clients with excellent service and customer experience backed by safe and reliable execution.
Now Betty will provide details on our third quarter 2022 financial results.
Thank you Rick and good morning, everyone.
On today's call I'll be reviewing our quarter over quarter results for the third quarter of 2022 as compared to the third quarter of 2021.
Our third quarter 2022 revenues were 799 8 million another record high which represents an increase of $189 6 million.
We're at 31, 1% compared to the same period last year.
Our third quarter T&D revenues were $452 million, an increase of 47, 5% compared to the same period last year.
The breakdown of T&D revenues was.
$264 million for transmission.
$188 million for distribution.
The T&D segment revenues increased primarily due to an increase in revenue on transmission and distribution projects, including the incremental distribution revenues from power line plus companies.
Approximately 50% of our third quarter T&D revenues related to work performed under Master service agreements.
C&I revenues were $347 $8 million, an increase of 14, 6% compared to the same period last year.
The C&I segment revenues increased due to higher revenue in certain geographical areas.
Our gross margin was 10, 8% for the third quarter of 2022 compared to 13, 8% for the same period last year.
The decrease in gross margin was primarily due to overall cost increases mainly associated with supply chain disruption and inflation.
Gross margin was also negatively impacted by labor inefficiencies and inclement weather experienced on certain projects.
These margin decreases were partially offset by a favorable change order adjustment and better than anticipated productivity on certain projects.
We also experienced higher than normal margins in the third quarter of 2021.
Third quarter 2022, SG&A expenses were $58 9 million, an increase of $5 $8 million compared to the same period last year. This increase was primarily due to higher employee related expenses to support the growth in our operations and the ACA.
Position of the power line plus companies.
Actually offset by a decrease in employee incentive compensation costs.
Third quarter 2022 interest expense was $1 1 million, an increase of $800000 compared to the same period last year. The increase was due to higher outstanding debt as well as interest rates during the third quarter of 2022 as compared to the same period last year.
Third quarter 2022, net income was $18 $4 million.
<unk> $1 nine per diluted share compared to $23 $2 million or $1 35 per diluted share for the same period last year.
Total backlog as of September 32022 was $2 four $8 billion, a record high and was 51, 6% higher than a year ago.
Total backlog as of September 32022 consisted of approximately $1 billion.
Our T&D segment and $1 $45 billion for our C&I segment.
Moving to liquidity and our balance sheet, we had approximately $249 $8 million of working capital.
$85 $9 million of funded debt and $303 9 million and borrowing availability under our credit facility as of September 32022.
We have continued to maintain a strong funded debt to EBITDA leverage ratio of two five times leverage as of September 32022.
Even after over $31 million of share repurchases this year.
We believe that our credit facility strong balance sheet and future cash flow from operations will enable us to meet our working capital needs equipment investments growth initiatives and share repurchases.
I'll now turn the call over to Tod Cooper, who will provide an overview of our transmission and distribution segment.
Thanks, Betty and good morning, everyone.
T&D group performed solidly in the third quarter and consistent bidding activity produced project wins throughout our markets.
As Rick mentioned, we are seeing significant investments in electrical infrastructure throughout North America, including many transmission transmission expansions and upgrades as well as distribution hardening programs throughout regions that could have been or could be impacted by storms or buyers.
The 2022, North American electric transmission forecast by the C. Three group released in September forecast of $152 billion in additional transmission infrastructure and upgrade spending by utilities during the next five years.
This investment is expected across the country with Texas, and California, two focus areas for MYR group forecasted to see the most near term spending.
Texas with forecast in spend is driven primarily by capacity issues stemming from the integration of clean energy sources.
Before news California's is driven by clean energy integration and fire mitigation.
This aligns with findings from our strategic insight survey of existing clients and which our customer set the direction of their business will be most impacted.
Clean energy.
They also indicated the largest challenge moving forward in transmission capacity needed.
They also indicated the largest challenge moving forward is transmission capacity needed to integrate clean energy sources into the grid.
The stronger focused on clean energy nationwide and the need for new and upgraded transmission lines to integrate the grid has the potential to create future opportunities for our business.
Our T&D segment is seeing steady bidding and project work across all operating companies. However, a couple of our long term alliance customers are currently facing budget constraints for the remainder of the year, which may lead to some crew reductions in these areas. We believe however that there is the possibility to offset the reduction by <unk>.
Moving crews to areas that are not impacted and are expanding their workloads closed out the year.
At the close of Q3, multiple MYR group companies mobilize to the southeast to assist clients impacted by Hurricane here.
The impact of Ian word vast and utilities throughout the region were severely impacted.
Initial restoration to a large number of customers has been completed and <unk>.
Estimates are currently underway to determine the path forward, which we anticipate will include a more permanent rebuild a mini distribution circuits.
MYR energy services around why already is experiencing growth by expanding into regions. We are currently working and as well as the services, we're providing to our customers.
<unk> is building those strategic relationships for clean energy EPC in large project work with many key customers.
In summary, our consistent focus on safety and project execution has enabled us to grow our customer base through new contract wins or bolstering partnerships west.
What's driving to leverage all of our capabilities and experienced teams across our companies, we continued to contribute to our customer success.
We are excited about the outlook at the T&D industry and look forward to play a key role in helping to meet the future energy demands in North America.
I will now turn the call over to Jeff <unk>, who will provide an overview of our commercial and industrial segment.
Thanks, Todd and good morning, everyone.
We are pleased that C&I experienced an increase in backlog in the third quarter as procurement opportunities picked up pace and many of our markets.
We believe our clients are turning to MYR group for their contracting needs. During these challenging times due to our depth of resources quality communication and proven performance.
Project execution, However was again slightly hampered by continuing supply chain issues and labor restraints impacting the performance of all trades.
Our employees continue taking decisive actions to mitigate the cost impacts caused by constantly fluctuating conditions.
Their tireless efforts and continued flexibility to support our clients are.
We're keeping our projects moving in a positive direction.
While inflationary issues and supply chain disruption are becoming somewhat lesser attic, both continue placing a burden on project procurement.
To better understand how others in the industry are dealing with inflation and supply chain.
Our group engaged our most valued vendors and subcontractors and our 2022 supply chain survey.
Our goals were to gauge the level of impact supply chain disruptions are having on the industry and to gain insights on the strategies and solutions being developed to manage supply chain conditions.
We also gather feedback on how we're doing as a business partner.
The responses from our business partners were positive and indicated strong alignment and our approach to solve these industry wide disruptions.
Nearly all respondents are offering preferred pricing to our MYR group companies due to our company size early engagement continued collaboration and transparent management style.
The information gathered was valuable and it's being used with our clients and partners to continue delivering successful projects.
I've mentioned in prior reports that the timeline to bring projects to reality has grown as some construction schedules continue to push to the right we.
Had one large solar project that had a substantial scope production due to permitting issues. This loss revenue was quickly replaced by several other clean energy projects awarded during the quarter that are expected to significantly offset the scope production of this project.
We are pleased that our clean energy portfolio continues to flourish in meaningful ways.
Nearly every division of C&I has increased its backlog.
Or is pursuing opportunities in the clean energy space the projects range in size from electric vehicle charging stations to more significant battery powered peaking stations designed to manage brown out conditions in California.
Recent awards in solar and battery storage have pushed our backlog to another record high in.
In addition to our clean Energy awards additional backlog was gained in healthcare data centers water wastewater treatment and industrial.
We remain optimistic about the company's long range outlook and our opportunities for future growth as funding from infrastructure investment and jobs acts becomes a reality.
Clients across the country are excited about the potential of modernizing roads bridges transit rail ports airports broadband and water infrastructure and are starting to step up their partnering efforts in preparation of this work.
We are equally excited about the chips act and the sizable impact it could have on many of our markets.
We are currently engaged in two large chip manufacturing expansions underway in Arizona and recently, New York announced the approval of a $100 billion Micron semiconductor manufacturing plant that is expected to drive growth in that region for years to come.
MYR group's resume in high tech semiconductor and industrial facilities should keep us in a prime position for many opportunities to come.
Even though these historic investments in our future have not yet contributed to significant design activity. The major construction indices have remained in positive territory.
The AIA consensus forecast panel is projecting a nine 1% increase in spending for nonresidential buildings. This year, an additional 6% next year. The Abi has been positive every month since February 2021, and for more than half of these months to Adi's score.
Was at least 55 considered to reflect very healthy growth in revenue that architectural firms.
The Dodge momentum Index also remained elevated in the third quarter on.
On a year over year basis, the DMR was 20%, 26% higher than September of 2021, and the institutional planning was 28% higher.
The design and planning momentum demonstrated by the positive indices should drive construction growth for years to come.
To conclude we are proud of how our employees are responding to the unique challenges facing the industry to continue providing the proactive and customer focused communication that we believe will enable MYR group to maintain our leading position in the markets we serve.
Thanks, everyone for your time today.
Now I'll turn the call back over to Rick who will provide us with some closing comments.
Thank you for those updates Betty Tod and Jeff.
Thanks to the resiliency of our core markets and our ability to bolster and broadened our customer relationships to create growth opportunities. We are proud of our third quarter performance. Our focus remains on projects and bidding opportunities that reflect our operating principles and breadth of capabilities and meeting the needs of.
Our customers as they adapt to a dynamic market conditions and a shifting energy landscape.
This is supported by our continued investment and development of our teams across the company as our as our people enable us to maintain our status as an industry leader by the work they perform everyday.
Commitment to our employees and customers as a foundation foundation, we build from to remain a strong and agile partner for our clients and prospects.
The invaluable contributions from our employees and the continued support of shareholders does not go unnoticed and I would like to thank you on behalf of MYR group Operator, we're now ready to open the call up for your questions for our questions and comments.
Thank you if you have a question at this time. Please press star one one on your Touchtone telephone again Thats Star one one to ask a question.
One moment, while we compile our Q&A roster.
Our first question will come from Alex <unk> from Keybanc capital markets. Your line is open.
Hi, guys. Thanks for taking my questions.
Good morning, good morning, So let's start on C&I, obviously, the supply chain in an inflationary environment.
To be a challenge. So I guess my question is like do you see a dynamic where your old backlog burns off and the newer and more recently priced backlog begins to flow through the model with higher margins.
And then if this is the case should we expect like a snapback in margins to like a 4% to 5% range or is it or is it more of like a gradual progression back to the.
The target margin range from here.
Yes, I think when you really look at our backlog and the burnt outflow of those older projects and you look at where we're at.
We really see that as more of a gradual progression.
Back up to that range and I think it's going to take us through the first half of next year to get there.
A lot of these supply chain issues continue to to be out there and we don't see them being solved in two months or three months. So we sit a little longer, but we see that progression taking place quarter by quarter going forward.
Got it and then shifting over to T&D, the revenues where we.
There are over 40% organic this quarter.
The growth was stronger in transmission, but distribution was also very strong but can you talk about what is driving the revenue growth in this segment.
At the MSA portion of the revenues that 50% or is it the project based business.
And then I guess I have a follow up I guess my follow up on that would be like.
Any thoughts on like your ability to grow off this T&D revenue comp into next year. Given this year has been so strong.
Yes. This is Todd.
The growth has primarily been driven by the <unk>.
Drivers that we've been talking about for the past couple of years, but with hardening and getting.
Getting clean energy integrated into the grid as well as the EPC model, which we jumped on a couple of years ago, as well and some of that work starting to come to fruition. So.
That's where it's at today and that's what's driving what's driving it some of the MSA work.
Has picked up but as I mentioned theres been a little bit of a pullback recently due to budget constraints and we believe it's temporary.
And we're able to mitigate that we've mitigated it with one client by working and being awarded some other projects in the region, but the outlook is positive we're going to continue to see clean energy integration take place.
Hardening in areas, such as California for buyers in the southeast and as a result of the most recent store we expect to see some work there as well, but the long term forecast as mentioned.
By the C. Three group and what we're finding out on our own client survey. So it looks good right now.
Thank you.
Thank you one moment for our next question. Please.
And our next question will come from Jonathan <unk> from Baird. Your line is open.
Yes, good morning I.
I guess, maybe I wanted to piggyback and just starting off here on the.
The response, there and the last question.
Said that on the prepared remarks, as well, but the budgetary pressure.
We would like that.
Issue and I guess im a little surprised to hear.
The T&D side.
Utilities, given the amount of funding that.
Been funneled into <unk>.
Supporting all of this grid investments so maybe just talk a little bit about what specific budgetary issues facing and why you believe temporary I think that'd be helpful.
Well right now I think utilities are really working on trying to figure out where the capital's going they have a plan and the switch from the hardening and the integration of new transmission, which has to be ongoing.
Has the third component now of clean energy and getting clean energy onto the grid. So.
During the course of this year there was quite a bit of work that is done you are right in the past what we've seen.
More often than not is acute.
Q4, where utilities have some spend left and theyre looking to to increase the amount of hardening work that they're doing in this year just a couple of utilities.
That are that are still working around some of those issues as to where that capital spend goes we.
We've seen the reduction or the <unk>.
Temporary cutback, which we believe and we've been told by those utilities that it is temporary for this year is the remainder of this year's budget, we expect it to be back.
It's a normal loads at the beginning of the year or shortly thereafter.
As Todd said, it's not all our clients. It's a couple of them and it's something we've seen in past years, where it's more of a budget level Isaac.
Issue than anything else.
Okay. So it's not like a structural funding issue. It's more just kind of the timing of how that land comes in place and.
Just the nature of how the work rolled out this year.
Hey, pressured here a little bit <unk> correct.
Correct, it's mainly a fourth quarter event, just as they level is their budget and try to try to keep their spend in line.
With what they had allocated because they may have overspent in the first part of the year.
Okay.
My next one.
You bet.
Power line plus.
<unk> has.
Has had a lot of intangible amortization, that's been running through the P&L in <unk>.
You guys have called that out.
In the previous quarters had been running at a higher run rate.
It fell off a lot here and I think previously your commentary was that.
It will continue to be a headwind and it would run at kind of the level.
First half through the balance of the year. So was there anything that changed in there or what why was there such a large decrease in the intangible amortization.
Yes that is right this quarter had a reduced amount of amortization for power line.
We actually it's finalized.
Essentially finalized.
The valuation work for power line. This quarter. It's just now subject to the final third party reviews and as part of that there was a change.
This quarter as it were kind of note in our footnote too about the finalization of that and what happens is theres less been amortized less been allocated and that valuation work than previously estimated to the non amortizing assets kind of like like goodwill and then also less to the shorter amortized.
Period assets like backlog, certainly and that resulted in our amortization estimate for the full year of 2022.
Being reduced and the catch up coming through in Q3, So I know everybody takes and wants to be able to.
That allowed us the amortization impact.
You can take what we have in our year to date cash flow intangibles, whether its power line or the total and that would be.
The same ratable over that if you take the year to date.
For the balance of 2022, and then just remember that when you talked about the amount dropping off as it relates starting in the beginning of 2023 as it relates to backlog we've identified.
That allocation is now in our footnote two and Thats $4 million.
Amortization tied to backlog that will drop off starting one 123.
Hopefully that helps.
Yes. It does thank you I will.
I'll yield the floor here maybe jump in later thank you.
Thank you John .
Thank you and as a reminder to ask a question. Please press star one one.
And our next question will come from.
Brian Russo from Sidoti Your line is open.
Hi, good morning.
Good morning.
Hey, so just to follow up on some of the utility customers cutting.
Cutting back on their budget near term issues that you alluded to so.
Should we think about that as impacting your top line.
Or the T&D margin or both as.
As we look at the fourth quarter.
And possibly into.
Into early 'twenty three.
Well I think when you look at early 'twenty three it's it'll be back to normal spend I think this year.
The rest of the year, we said it could be affected I mean, I think our T&D group has done a good job as Todd said are picking up other projects and being able to level is that out.
We did have increased spend in the third quarter of it.
Was fairly high.
And in probably elevated a little above what we see as a normal run rate just due to the burden of some of our what I would call fixed price projects out there and I think that'll level is back off a little bit, but overall going into next year, we see it as a good year going into next year really no impact from that from what we were talking about on that.
Utility spend.
Okay, and then on the T&D operating margins looks like below.
8% or.
Both.
In this third quarter.
And followed sequentially also below 8% in the second quarter kind of at the.
The lower end of that 7% to 10, 5% kind of target range.
Given the supply chain issues, which seem to be now spilling over into T&D.
How should we look at the trajectory of those margins, maybe as we look through the first half of 'twenty three.
Your commentary on the C&I margins.
I think they'll continue to incrementally climbed back up.
None of these are long term issues out there our backlog is very strong.
When you even look at the makeup of our backlog on margins. It's very strong so when I look at that side Theres really no change in our backlog.
Margins from this year to what we're carrying in next year for backlog. So it's a good market overall.
When you really look at this quarter, we didn't have what I would call. It a strong closeouts. We did have some weather issues that we identified some other stuff that we've talked about so.
Youll see that incrementally climb back up and we expect that long term to be on the upper end of those margin profiles that we put out there.
Okay, great and just a longer term question.
The MISO.
Transmission plan for 2030.
I think over $10 billion it looks like a lot of your MSA customers might be involved in those projects.
Are you sensing that the development stages are are starting and when do you think.
<unk> are chosen for that.
Type of work, obviously longer term opportunity.
Yes. This is Todd it's going to be pretty well dispersed out from.
Let's say early 'twenty three through through 2030, we're going to we anticipate starting to see some some proposals hit the street for the FERC 1000 jobs in early 'twenty three.
A lot of these door embedded but this MISO tranche one is with incumbent utilities that have rights of first refusal that you're right. We do work for and we do have msas for so it will be kind of evenly spread out from a from a bidding perspective.
Planning perspective, maybe for the next few years and then the work I guess.
Guests will start sometime in 'twenty four and co.
Kind of a level lives throughout 2030 for all of those projects that are in tranche one right now.
Okay, Great and then just lastly, you mentioned EV infrastructure early on can you give us a sense of how much work you're actually conducting on EV infrastructure now or.
What's implied in the backlog versus just whats also a longer term growing opportunities for MYR group.
It's definitely a growing opportunity and we put as we spoke in the past a lot of our focus we limit the kind of the clean energy market Finfet.
I guess to early 2000 timeframe, so and we've been growing that business, even with our acquisitions, we've grown it as a percentage of our revenue, we really don't break that out and it's very difficult to at this time, because a big percentage of the work that Todd does every day on our T&D side.
It has to do with that clean energy side coming into play.
Play and the utilities really don't release what lines. We're working on that just has to do with pure clean energy. So we haven't broken that out, but it's a good percentage of our business.
Okay, great. Thank you very much.
Thank you. Thank you and again as a reminder to ask a question. Please press star one one.
Okay.
And our next question will come from Noelle Dilts from Stifel. Your line is open.
Hi, Thanks.
<unk>.
I was wondering if there's any way that you could help us understand.
When we're looking at the margins in the quarter, how much was maybe.
Related how much of the compression year over year was related to more temporary factors like.
Yes.
Specifically like the weather impacts.
Versus the more inflationary impact.
I think if you too.
I guess, a higher percentage of that when I. When you look at our margin profiles over the past few quarters and you look at it this quarter I mean, we really it was more directed towards probably weather and no strong closeouts on Todd site.
The T&D side than anything else.
Did he does have some pressures due to higher costs on things and inflationary things, but for the most part those where the draws on it.
So as we close out future quarters, we see part of that coming back okay. Okay, Great and then for the fourth quarter I guess I'm just trying to understand some of the short term dynamics here, obviously, you've talked a lot about the budgetary pressures.
Here on the call, but then you have some potentially I would think offsetting storm work at least from a margin perspective.
Is that something we should think about in terms of.
Yes, I guess, its the storm or something we should think about in terms of maybe providing some offset to.
A temporary pullback.
I wouldn't look at storm as being that offset there I think it's more of the bread and butter work. We do every day some of the big projects. He has will be an offset to that storm. We participate in storm work, but we're not a storm chasing contractor, we liked that bread and butter work that we get every day and we like that reliability.
<unk> continued revenues.
Profitability from that those long term arrangements rather than just one off storm work that we do participate it's not a major driver for us.
Okay, and then I guess, one last one for me.
In terms of the labor inefficiency that you discussed.
That more related to general disruption associated with the supply chain that will result, and that results in suboptimal utilization and folks are kind of waiting around for components and things to come in or is it more related to competition for labor and say folks moving to other jobs.
Should we how should we think about those dynamics.
Competition for labor Hasnt been an issue with us I mean, we've been okay. We do a lot of training and development for our people and we do a lot and we're able to retain our people.
That hasn't been the issue it's more of the issues surrounding kind of that supply chain issues and it's not so much with the material we receive every day.
We're working with at this point, it's really how projects are being built with other component. So there may be concrete shortages in certain areas there steel shortages.
And the sequencing of that material and how it comes in with other components of the build is what really causes us to re sequence our work and we're just not working as it as efficiently as we would have in the past so you're moving around a little bit and it's not something you can capture and change orders, especially when.
About 90% of our business is return clientele, we work with these people long term.
And we want to continue that relationship. So these little micro aggression or are these little <unk>.
Macroeconomic challenges that are out there.
Affect our projects and the flow of the work.
And that's really where our impacts have been.
Okay, great Yeah that makes a lot of sense. Thank you.
Thank you and as a reminder to ask a question. Please press star one one.
Thank you and I'm showing no further questions from our phone lines at this time I would now like to turn the conference back over to Rick Swartz for any closing remarks.
To conclude on behalf of Betty Tod, Jeff and myself.
Certainly thank you for joining us on the call today I don't have anything further and we look forward to working with you going forward and speaking with you again on our next conference call until then stay safe.
Okay.
Thank you. This concludes today's conference call. Thank you for your participation you may now disconnect everyone have a wonderful day.
Okay.
The conference will begin shortly to raise Johan during Q&A, you can dial star one one.
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Okay.
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Thanks.
Okay.
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