Q3 2022 Superior Plus Corp Earnings Call
Okay.
Yeah.
Good day, and thank you for standing by and welcome to the Superior plus 2022 third quarter results Conference call. At this time all participants are in a listen only mode. After the speaker's presentation there'll be a question and answer session to ask a question. During the session you will need to press star one one on your telephone.
M P.
Please be advised that today's conference is being recorded I would now like to.
Turn the conference over to your speaker today.
Rob Jordan Vice President of capital markets. Please go ahead.
Thank you Catherine good morning, everyone and welcome to Superior <unk> Conference call and webcast to review, our 2022 third quarter results on the call today from some airplanes are dangerous.
President and CEO and Beth.
<unk> executive VP and CFO for this morning's call Luc and Beth will begin with their prepared remarks, and then we will open up the call for questions.
Listeners are reminded that some of the comments made today maybe forward looking in nature and are based on <unk> current expectations estimates judgments projections and risks further some of the information provided refers to non-GAAP measures. Please refer to superiors continuous disclosure documents available on SEDAR and superior.
Website yesterday for further.
Dollar amounts discussed on today's call.
Call are expressing.
Unless otherwise noted I will now turn the call over to Lou.
Well, thank you Rob and good morning, everyone. Thanks for joining the call to discuss our third quarter results I'm pleased to say quarter. Three results are in line with management expectation and we're maintaining our 2022 adjusted EBITDA guidance range is important to note that quarter to be the seasonally slowest quarter.
Therefore, our business due to the lower even though this water in particular, they kept typically impacted by the timing of acquisition completed in the past nine months, we've acquired two pretty good size enterprise.
We incur all the costs associated with the acquired businesses.
Volumes were lower due to the lack of demand in the summer time, because we have not yet had the timing to achieve all of this was a synergy which are coming in the next 18 months.
Our Canadian business was also negatively impacted by warmer weather, especially in western Canada as well as the lack of Canadian emergency wage subsidy of third quarter 2022.
So basically I think there is I think.
The opportunity for everyone to understand that quarter to be solo and Paul.
And we've made those two acquisition a year ago.
Not having the chance to have all of the EBITDA that comes in quarter, four and quarter, one more time and energy coming in the next two quarter. So is there is a disconnect there no surprise to us.
This business or the right price the secondary Jr. Tracking a bit ahead.
We started to work on that this summer and there is absolutely no surprise for us of this ratio in quarter three as well.
Jewelry to year to date results in quarter four 2022, we're comfortable in our ability to manage the impact of inflationary pressure on their business to increase price and cost saving initiatives. We saw the benefit of acquisitions completed over the last year due to higher volume quarter over quarter, However, as I.
We also saw higher operating expense in the quarter, our focus on being a prudently in emerging distributor means other third quarter result, with emphasize decision analogy of the induced rework rates in especially in the U S. Propane distribution segment, which has mainly residential customer.
Whose consumption as did say dictated by evening degree day, which are very low in July to September .
We're making great progress and their superior way forward EBITDA growth initiative through acquisition continuous improvement and organic growth.
During the quarter, we made great progress on the integration of our calls and camps acquisition ahead of the evening season, which will set up very well for synergy realization going forward were also closed three small acquisitions since our last update in quarter two one in California one.
In North Carolina, and one in Ontario, Canada for a total consideration of $29 9 million with these three acquisitions. We have achieved the low end of our 22 acquisition target range of 200 to 300 billion in enterprise value excluding cats acquisition.
We continue to demonstrate our commitment to our dynamic capital allocation approach, we are a company commencement.
Commencement of our normal course issuer bid in October 13, providing.
Joe Lebel.
These are through which to return capital to shareholders.
Does not mean, we're no longer evaluating M&A target, we will do acquisition, but we may also repurchase shares instead of contingencies. During the right appropriate returns. We are focused on creating long term shareholder value, we will only allocate capital to where most acquisitive opportunities.
I'll now turn the call over to Beth to discuss our financial results in more detail. Thank.
Thank you ladies and good morning, everyone.
Ruth mentioned Q3 is the seasonally slowest quarter for our business and our results are in line with our expectations superior generated third quarter adjusted EBITDA of negative $8 8 million or 21 8 million decrease over the prior year quarter. This was primarily due to lower adjusted EBITDA at our Canadian propane Vista.
Dubuque and in the U S propane distribution segment higher corporate costs, and a realized loss on foreign currency hedging contract compared to a gain in the prior year quarter.
The decrease was partially offset by higher adjusted EBITDA from our wholesale propane distribution segment.
The third quarter loss from continuing operation was $206 9 million.
The increase of 171 million compared to the prior year quarter.
Here the driver for the higher net loss with an unrealized loss on derivatives and foreign currency translation of borrowings compared to an unrealized gain in the prior year quarter higher selling distribution and administrative costs income tax expense and finance expense, partially offset by higher gross profit.
The loss on derivatives and foreign currency translation of <unk> compared to a gain in the prior year quarter was primarily due to the changes in the market price of commodities the timing of maturities of underlying financial instrument and the changes in foreign exchange rates relative to the amount of cash.
Turning now to the individual business results.
Our U S propane division adjusted EBITDA was negative $10 9 million a decrease of $3 1 million from the prior year quarter, primarily due to higher operating expenses, partially offset by higher sales volumes from acquisitions completed in the last 12 months and higher average margin.
Canadian propane adjusted EBITDA was $3 6 million.
Decrease of $14 4 million from the prior year quarter, primarily due to higher operating costs and modestly lower sales volumes and average margins operating cost were primarily are higher primarily due to the $8 2 million Canadian emergency wage subsidy, our skus realized in the <unk>.
Prior year quarter compared to nil received in the current quarter.
Sales volumes decreased by 3%, primarily due to lower commercial demand related to warmer weather in western Canada.
Any average weather in Western Canada for the three months ended September 32022, as measured by degree days.
With 27% warmer than the prior year quarter.
Average margins were lower primarily due to the impact from the sale of carbon offset credits amounted to $4 7 million in the prior year quarter.
Wholesale propane adjusted EBITDA was $5 1 million, which was an increase of $1 9 million from the prior year quarter, primarily due to the contribution from the acquisition of <unk> Energy Inc.
Turning to corporate results, the adjusted EBITDA guidance as well as leverage the corporate.
Operating costs were $6 2 million, an increase of $5 2 million compared to the prior year quarter, primarily due to higher insurance costs and higher professional fees and a lower long term incentive plan recovery related to lack of the share price decline in the current quarter compared to 2021 and the impact of inflation.
Superior realized losses on foreign currency hedging contracts of <unk> 4 million compared to a gain of <unk> 6 million in the prior year quarter due to the average hedge rate of foreign exchange hedging contract compared to the weakening of the Canadian dollar.
Superior total net debt to adjusted EBITDA leverage ratio for the trailing 12 months ended September 32022, with four three times, which is above our target range of three five to four times.
The higher leverage ratio was primarily due to the impact of the higher U S. CAD rate on the U S denominated debt on.
On a constant currency basis, using the rate as of June 32022 superior leverage ratio at September 32022 would be four one times.
As Luke mentioned, we're maintaining our 2022 adjusted EBIT guidance range at 425 million to $465 million with a midpoint of $445 million for the fourth quarter, we anticipate average weather to be consistent with the five year average for the U S and Canada and the wholesale.
Propane fundamentals to be consistent with the past six months with that I'd like to turn the call over to Q&A.
Thank you and as a reminder to ask a question you will need to press star one on your telephone.
Yes.
Please standby, while we compile the Q&A roster.
Our first question comes from Gary Ho with Sidoti Your line is open.
Thanks, and good morning, maybe just to start off with.
A question on your guidance.
The range that's great to see there is the only month bill.
Bill here. So if you hit the five year average with some patterns.
You should think about meeting the middle of that range, and then vice versa with better or below is that how we should think about that.
We track the heating degree days for the balance of people.
Yes. So as you know are seriously if we were to be in the middle of the range. We use the cellular there wasn't we adjust within that just because we feel come to them.
Today that 30 year normal weather going forward the year will be what it is it will be in the guidance.
Perfect.
Our better than anticipated from the states.
And of course, very warm in Canada, but.
So we've been wrong for me 12 years here and those two weeks ago. The colder weather is always you just talked about with any of you on the call the northwest rather than giving it so.
We're confident that.
As of today, we feel with the when the range.
Okay, Great and then look while I have you one again, an update on the CEO transition plan.
Discussions with the board and what they're looking for what.
What are your success in Arizona.
Yes.
Work in progress.
I'm, sorry preferred, but theyre looking internally and externally as two candidates and.
I assume that's been that much over the last two three months because there is really two pronged process that usually takes six to nine months I would say so.
There is a committee of the board.
The board members that are old that theres, a regular feedback to the board.
Accordingly as to how that's been saying no news at this stage it's somewhat early.
So progressing normally thing for me because it is late.
A project like that because at least six months.
Okay and then my last question.
You've announced you're in CIB and executed.
Recently, maybe to go back as we stand here today, how would you kind of rank the.
The capital allocation priorities buybacks M&A and de leverage and then just on the latter part of the deleveraging rate base at roughly about 35 years.
When will when will you get back to that three five to four times target range.
Okay. So a couple of questions in there so from a buyback perspective, yes, we have the in CIB in place as far as allocation of capital as we as we consistently communicated is a dynamic model. So we would look at what return make sense or what our view on the returns are and how.
We allocate so when you asked me sort of to look at it and too.
Judge, whether it's M&A or buybacks I mean, that's going to be on an individual basis.
I think from the perspective for M&A as you look out you may want to add on to that M&A as we look for the remainder of this year in particular typically once you hit this time of year you don't have a lot of people at this point looking to sell valid typically pick back up from a normal.
Shape perspective back after you get through the heating season, so that April may into next year.
To your question on leverage and our target of three five to four times.
At this point, we would view ourselves at the end of this year being near the high end of our $3 five to four times.
Synergies need to be or will continue to realize those which will have a positive impact from a leverage perspective.
We've always said that three five to four times range.
Moving forward in doing our acquisitions.
We have that range, just because it's going to depend on the timing.
Sort of a very chunky, where we've accelerated a bit ahead of our <unk>.
Targets and what we're looking at that total you may recall back from the Investor day, the $1 9 billion in total we've been well ahead of the $250 million per year target. So I mean, as we look to get to that 700 750 by the end of 2026 on EBITDA from operation.
It's going to be chunky. So to answer your question, it's really going to be dependent on the opportunities and how they present ourselves for when we'd be down towards that bottom end of the range.
Okay.
Okay.
Great. Okay. That's.
Thats It from me thanks for the color.
Jim.
Our next question comes from Daryl Young with TD Securities. Your line is open.
Hey, good morning, everyone.
Just one quick one for me.
Just wanted to kind of reconcile your thinking around capital deployment, given where leverage is and it seems like costs continue to March higher.
Wondering if it would make sense to hit pause on the MAA and NDA in CIB for a period of time and really focus on realizing those synergies.
Managing the cost profile.
Also speaking with respect to.
The pro forma EBITDA numbers in your net debt to EBITDA with accused rolling off.
A decline in that pro forma EBITDA number.
It seems like cost management.
It could be a focus going forward.
Maybe I'll start and then Tim.
So from an overall cost.
Quarter by quarter folks were difficult to be on the person takes always have the right amount, but overall costs are going up.
More than inflation.
We are capturing all of that into larger.
So we are.
No that's great.
Our profitability due to cost increase.
The old all of the assets.
From an acquisition.
To your point about the capital.
Good timing just due to good type deal.
Integrate it and then if I can promise you all with a 25% improvement.
And then.
It's a small one putting at this stage.
We'll do those too integration, let's go through the winter season.
Good.
Still going on and we will probably look at deals more of the second half of 2023.
The summer.
So what the state is probably a good timing.
Having another big <unk> deals in front of us because two weeks of uncertainty we're confident.
And then we're ahead of the game actually.
So the balance fact of having gone through those deals slowing down a bit.
Going through our winter were doing this integration will certainly help our leverage I think when you go through later.
<unk>.
And maybe I'll just walk through a little bit from a leverage perspective, we're at the.
And in the quarter were at four three times just to walk through through some of the factors.
So of the four three time, there was a lot of volatility with the.
Our tax rate right at the end of the quarter. So that's where if you balance it out there is roughly a $97 million impact on our foreign denominated debt, which at that point to time.
<unk>, which would bring us down to the four one time and when you really look at the EBITDA. In Q3, you do have some individual impacts that were impacting the year over year reduction of the $22 million. So just to walk through some of those from an M&A perspective, whereas the U S acquisitions are primarily.
<unk> heating load.
In Q3, we will have a negative impact and so there was roughly almost $7 million.
Negative impact, which is Q4 Q1, where you will more than make up for that and youre going to see the growth in that EBITDA as well as achieving all of those synergies and obviously the wage subsidy impacted timing of carbon credits. There is $4 3 million of carbon credits.
And the Canadian business that we would have realized in Q3.
Last year and this year it'll.
It'll be more than likely moved into different quarters that we'll see that.
In Q4.
So again looking at all of that from a leverage perspective, we do have that as one of our financial metrics, but we also balance that with the payout ratio. So from a payout ratio perspective, we do target that $40 to 60% range. If you look at Q3 with the impact were modestly modestly above.
60%, but certainly when we design that target Capex. So there is a cushion and again that's just overall to ensure that we have plenty of free cash flow to pay a dividend and so from a dividend perspective to always ensure that we have a question right.
Okay, and then maybe just one follow up to something that we've thought about pricing and pricing the gross margin to account for the cost.
Where do you stand today on a competitive basis in terms of your price.
Zero risk if price keeps going higher that you may be create customer churn.
No its very good question.
We are doing now.
This regularly by regions as to where pricing for March.
And we know that.
Maybe 90%.
With the small ones.
The <unk> are increasing.
Price according to do inflation cost, but the growth in majority of our industry is increasing the price accordingly.
People most people don't want it made less profit year to year end and we see.
Pricing is other lines by region by market, where are we what can we get.
We increased price with inflation and not lose business. So there is a.
Business class virtually growing market share in Canada residential and commercial very pleased with our market things of their growth not so much in this state, but still maintaining the same margin.
Market position market share.
So we're analyzing got properly are twofold.
Is it the right way, what we think we'll see in 2023.
Much of that so far is probably.
Some survey shows a bit more.
Person more in the winter time.
People.
The medicine for Monday with weather.
I think the big Bill.
These days for how we go through the winter is.
Propane prices are coming down.
Compared to last year. So this is going to be a big you know.
So where a customer really aren't going to be getting a reduction in price.
And that really shows well for the winter coming.
Yeah.
Okay. That's great. Thanks, I'll get back in the queue.
Thank you and our next question comes from Matthew Weekes with high capital markets. Your line is open.
Okay.
Good morning, Thanks for taking my question I was just wondering.
The increase in kind of the U S. Dollar denominated debt I was wondering if there was any offset.
If theres, an asset or if theres, any swaps or hedges or anything like that.
Something you'd.
Thinking about doing.
Going forward.
I think.
We do have FX hedges would you disclose those hedges are designed for the cash flows of the business as well as EBITDA of the U S business.
Offsetting the debt no. It's done at a current rate and we have the business generating so the view is we'd have a natural hedge arguably as we go forward for that long term.
The long term debt and again, it's because it gets marked at the current rate.
Sure.
Now and.
On an average basis. Your are you add EBITDA numbers in U S earnings I mean, they over time will be at the average rate is just you have a large disconnect right now between the two between the EBITDA and the impact on the gas.
Well, it will actually flat, which we don't factor into our language calculation, we do have a vendor notice, which actually matures prior to the long term debt.
And that's $135 million. If you include the accrued interest so that would actually having a positive impact on leverage if we reflected that in of roughly three times, but again that matures before the long term debt.
Does it not factored into typical covenant calculation.
We don't reflect that and how we disclose our leverage.
Okay. Thank you and my next question Jess.
You know kind of on synergies.
Close kind of the amount.
No synergies do you expect to get.
From acquisitions here, and we'll probably see that more as we go into the winter.
Adding season, but how.
How does that compare to sort of your initial estimates are our synergy capture pretty in line with what you. Initially thought when you were acquiring these businesses.
Yes, so on the Tam suits.
Perfectly on plan.
On clause, we are a bit more than the usual, 25%, we always commit to.
So looking good we do do a smaller deal.
For logs, but.
Returning to Oregon, and distributors or even are there more than a 30% range.
So everything is.
As all of the deals with maidens everything is.
Marching on the accordingly, when we do our due diligence we can lease the Victor.
Our approach and our.
Florida.
All of these synergies Newport TCR.
I think we've done this out when the time.
<unk>.
Not a lot of growth for <unk>.
Achieving.
Our game plan because of our history.
Our conviction approach.
Okay. Thank you that's it for me I'll turn it back.
Okay.
Okay.
Okay.
One moment.
Our next question comes from Joel Jackson with BMO. Your line is open.
Good morning, everyone.
Good morning.
First question.
I know you don't have what 2023 quite yet but can.
Can you maybe based on some of the acquisitions you've done this year, we haven't achieved full run rate of earnings or the synergies or some lagging synergies for deals you complete the last few years, but how much more would you think EBITDA earnings go up in 'twenty three versus 22, just based on normalizing our full run rate of some acquisitions this year.
Plus some lagging synergies you haven't achieved if you get my question right.
Yeah. This is not the time, where we have no sort of guidance, but.
You're right.
Looking good.
I don't think the squeezed due to deals that we have.
So there are three that we've achieved during the summer when usually when we acquire we don't.
I think the summer ahead of us.
Not the ideal time to acquire those you can do it.
Forever.
Yes.
We cannot give you the guidance what it is.
Positive and it's going to be a good improvement over this year.
Yes.
Joel maybe another way to think about it is if you look at the.
Sure.
And our calculation for the leverage ratio going back to the TTM.
You have pro forma adjusted EBITDA on a TTM basis up to $468 million.
What are the risks.
From there that does include sort of attempts and coral.
So basically that's because most of the EBITDA comes in Q1 and Q4, so I mean from area have incremental synergies, which will be achieving going forward.
Alright that does kind of getting out okay. So my second question is can we look at margins here, if I look at the Canadian propane U S propane wholesale propane gross profit per liter.
What my Q4 look like versus Q3, and then what kind of average should we be thinking about for 'twenty, three and going on.
Sure. Okay. So so Joe maybe I'll talk about the U S first.
So there was obviously an increase quarter over quarter of roughly 7%.
Getting up to the $44.09 for the quarter.
<unk> for the balance of year I think the best way to think about it is again looking at the range of 30% to 35.
<unk> thousand 946 cents cat and we would anticipate for Q4 for it to be towards the high end of that range.
That would mean from an overall average basis for the year thinking about it as like slightly better than 2021 and in 2021. It was 32 and a half since you asked.
So from a Canadian propane perspective, very consistent quarter over quarter for.
For the balance of the year.
Think of it in that range of 28% to 30% and that's probably a good range for the total year as well or an average for the year was at 28 30 a M.
And then wholesale.
I think the best way to think about the wholesale business is basically the range of 3%, which was sort of consistent quarter over quarter and also a relatively good number four on average for the year.
But you've been hitting a lot better in <unk> and wholesale Alaska.
Yeah, it's going to it's going to depend yeah, it's going to depend and you've got some FX in there as well.
But three <unk> is a good for that.
Okay. Thank you.
Okay.
Thank you and our next question will come from Stephen Hanson with Raymond James Your line is open.
Yes, good morning, Thanks for the time.
Apologies, if I missed it but I was hoping you could perhaps speak to.
How youre thinking about the somewhat volatile propane macro backdrop, we've been seeing of late and what it might mean for your business. This winter.
Whether it's always the key driver of course, but I'm just thinking about some of the conditions around introduce orders in Europe . The big export pool, we've been seeing for North America on propane.
Greenbrier and Keith and factors like that and just how you're navigating all of those and whether you see this opportunity New York risks or we're fairly neutral.
Sure so.
At this point and argue the fundamentals there are actually pretty neutral. So the inventory levels have improved there within three year averages or in that range for both Canada and the U S and the U S has been well under three year average for a period of time.
Also from a price perspective like the prices have come down so they are weaker and that is linked as youre flagging there to the crop dry.
Thank the next indicator, where you could get some volatility you have extreme cold weather.
Now and I think.
If there is that cologuard is through the prices will typically strengthen but if this weather normal and then I think it will likely stay within the range or that would be our view now from a macro impact I mean, there's certainly pricing around double Upi crews.
The conflict in Ukraine, as well as potential Covid resurgence.
Resurgence certainly at a macro level.
That could have some impact in the next four to five months.
Now from our perspective, I mean, we will purchase fixed price supply, where we have fixed price contract. So from that perspective, we're comfortable that we've got predictable margin and then just to flag and I know everyone's aware, but just to flag, we do have the ability to pass through the <unk>.
And commodity costs, but again the prices are down they're down roughly 30% now from where they were in Q1 Q2 the highest.
So I'll give you just a bit more color when you produce more national guys and you explore you can.
Also produced a pain as a percentage of your total production.
There is a negative for us as much as natural gas. So you end up in America at this stage IV.
Good to the inventories that are going up.
Price has come down two basis points, which is always a good thing for us. So we can maintain that margin rates are coming down.
Do some fixed price with customers.
Our help them also having to pay to the previous question.
Krishnan and customer.
He left a argue.
It's going to be a good year, because we're going to end up giving them a discount.
Even though we seem to affect margin might be a bit better than that but are you getting a discount for the next six months for the winter.
The previous prices paid by five years.
All good.
That's great. That's really good perspective, you got to appreciate that.
I don't mean to beat.
The dead horse on the Cat.
But all the casing issue, but just wanted to circle back one more time on the idea around deleveraging versus M&A and even the buyback I mean, how do you feel about the opportunity set.
Those three buckets.
Probing a little bit because of the multiple has gotten a lot cheaper of course of late for the equity.
I know your pipeline, but good opportunities in that as well, but then you've got this debt Paydown. If you were just breaking it.
Multiple priorities for the same set of capital.
Trying to get a better sense for where you think the real priority is or if it just maybe it is perfectly balanced.
Yes, I mean, I think I can sort of kick it off I mean, I think from an M&A perspective, as I mentioned before we always see much less in Q4 and Q1 from an opportunity perspective.
Again from a share repurchase perspective.
Very small amount as we were looking at that and that's when the returns make sense and we think that our shares are undervalued and it does present, a better return to us.
I mean, I think it's fair to say, we're always balancing all of our various metrics and looking to de lever balanced with payout ratio and the other pieces.
Her return we did communicate what we were going through accelerated M&A that we were targeting three five to four times, so that hasn't changed and we will de lever basically as the cash flows come in.
Okay. That's great appreciate the color guys. Thanks.
Thank you and our next question comes from Robert <unk> with CIBC. Your line is open.
Okay.
Yes.
On the M&A.
Have you seen the market valuations changed at all in light of the cost pressures and the higher interest rate environment.
Vince in terms of the last quarter was a good question.
I believe right.
Physicians are going to come down.
Last Tuesday, the deal we did.
We can see it.
And.
Not being in the market or a bigger deals now because of everything we've talked about for 2023.
There are people are doing in the industry.
In the years.
They understand the duration of this thing.
Good sized company, Doug Arthur perfect it needs to be done.
<unk> noticed that.
Okay.
Of course, we are always in the violent we ever return even further.
<unk> otherwise we don't.
<unk>.
The trend.
Now with oil price overall.
And in the company.
Yes.
Okay, and then are you managing our risks in the M&A process any differently in light of those the inflationary environment and the higher financing costs.
Yeah, I mean, I think from our perspective media as you look at the increment in increasing interest rates et cetera, and obviously it has an impact on our weighted average cost of capital. So we're looking in judging appropriate return level that does get factored in and it'll have an impact.
<unk> on the hurdles as we look at the businesses. So this gets back to as the underlying macroeconomic factors change the expectation would be.
As things settle out you are going to have lower multiples just to ensure that we get the appropriate level of returns to ensure that we're delivering what we need to do from a shareholder perspective, and a business return perspective.
And there are too many.
But.
Or are you pushing for fifth third.
Yes, the bigger situations.
It goes to the market <unk> reveal.
Interest rates are higher.
Interest rates well organized for their use.
So they're sticking.
They are going to expect to pay less to get their returns as well.
Yeah.
Sure I was also wondering.
Just about.
Maybe how you structure the deals and in light of the volatility.
Oh, that's out there, presumably some form of recession and whether your structure of the deals include more earn out rather than.
Uh huh.
Our firm valuation.
No I think you end up paying less entrepreneur don't like earn outs right.
They'd rather just a cash and debt.
Move on so I think its valuation.
Well.
Just to sort of clarify.
And that you're flagging that would get reflected in how we model so that would be reflected in how we model the business and what we would anticipate or expect to see over the next four or five years. So we would factor in recessionary pressures and the potential impact that would have but what I will flag I mean recall our business.
Typically as well as the acquisitions, we've been making are pretty recession, Chris If you look at historic in the values because.
They are typically related to eating load and people need to eat their houses, whether we have a recession or not.
Yep Yep.
Okay. Thanks, everyone.
Thank you.
Thank you and I'm showing no other questions in the queue I'd like to turn the call back to Luke Thanks, Jordan for any closing remarks.
So I'll wrap up this call I would like to thank our management and employees very proud of all of our accomplishment to date in 2022, no surprise to us when the game plan.
Solid position to deliver 2022 adjusted EBITDA guidance.
Two questions that was raised we expect a good year when the phase III.
Thank you all for your participation and we'll see you next quarter.
Thank you.
This concludes today's conference call. Thank you for participating you may now disconnect.
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Okay.
Okay.
Yes.
Yes.
Okay.
Okay.
Okay.
Yes.
Sure.
Okay.
Yes.
Yes.
Yes.
Yes.
Okay.
Sure.
Okay.
Okay.
Yes.
Yes.
Yes.
Okay.
Sure.
Okay.
Yes.
Sure.
Yes.
Okay.
Yes.
Okay.
Thanks.
Yes.
Yes.
Thanks.
Yes.
Yes.
Okay.
Yes.
Yes.
Yes.
Yes.
Yes.
Yes.
Yes.
Okay.
[music].
Thank you.
Sure.
Yes.
Okay.
Sure.
Yes.
Sure.
Okay.
Sure.
Okay.
Yes.
Yes.
Sure.
Okay.
Okay.
Okay.
Okay.
Yes.
Sure.
Okay.
Okay.
Okay.
Okay.
Yes.
Thanks.
Yes.
Okay.
[music].
Okay.
Okay.
Okay.
Yes.
Yes.
Okay.
Yes.
Yes.
Okay.
Yes.
Okay.
Sure.
Yes.
Okay.
Okay.
Yes.
<unk>.
Okay.
Okay.
Sure.
Yes.
Yes.
Okay.
Okay.
Yes.
Sure.
Yes.
Sure.
Yes.
Yes.
Yes.
Yes.
Thank you.
Yes.
Yes.
Okay.
Okay.
Okay.
Yes.
Okay.