Q3 2022 Consolidated Water Co Ltd Earnings Call
[music].
Good morning.
And thank you for joining us today to discuss consolidated water company's third quarter 2022 results.
Hosting the call today is the Chief Executive Officer of consolidated water Company, Rick Mctaggart, and the company's Chief Financial Officer, David Sasnett.
Following their remarks, we'll open the call to your questions.
At any time during the call you may join the Q&A queue by pressing the star key followed by the one on your telephone keypad.
To withdraw your question. Please press Star then two.
Should you need any assistance today, you may signal a conference specialist by pressing the star key followed by zero.
Before we conclude today's call I'll provide some important cautions regarding the forward looking statements made by management during the call.
I'd like to remind everyone that today's call is being recorded and it will be made available for telecom replay per the instructions in yesterday's press release, which is available in the Investor Relations section of the company's website.
Now I'd like to turn the call over to consolidated water company's CEO , Rick Mctaggart, Sir. Please go ahead.
Thank you Joe Good morning, everyone. Thanks for joining us today.
As you saw in our earnings release issued yesterday, we reported a 53% increase in our revenues for the third quarter of 2022.
Collecting revenue increases in all four of our business segments.
However, certain G&A expenses increased last quarter, which impacted our net income.
We believe that last quarter as higher G&A expenses and flat net income performance are not indicative.
But what investors should expect in upcoming quarters.
David will provide an explanation of these G&A expenses later in the call.
Our retail water revenues benefited from a 14% increase in the volume of water sold in Grand Cayman due to the continued return of tourist activity to the Cayman Islands.
Our services segment revenue increased by $5 5 million with most of the increase resulting from progress on PERC water as previously announced contract for the construction.
And $82 million advanced water treatment plant in Goodyear, Arizona.
This Arizona project is now well underway and progressing as expected and we anticipate recognizing significant additional revenue from this project in the fourth quarter and in 2023.
Also in Q3, we completed the design and preliminary permitting activities for the new desalination plant, we are constructing on Grand Cayman pursuant to the 10 year design build operate contract.
We signed with the water authority of the Cayman Islands.
The revenue we recognized in this contract was minimal in Q3 during the design and permitting phase of the project with.
But construction activity is now underway.
So we will recognize significant additional revenue on this contract beginning in Q4.
Before getting into our progress with these major projects and our outlook for the rest of the year and into 2023.
I'd like to turn the call over to our CFO David Sasnett.
It will take us through the financial details for the quarter.
Mr Sasnett.
Thanks, Rick and good morning, everyone.
Yesterday, we issued our earnings release for the third quarter of 2022, and you can find it in the investors section of our website.
As Rick mentioned, we reported revenue of $25 1 million in the third quarter, which is an increase of 53% from the third quarter of last year.
This growth reflects increases of $1 million in our retail segment revenue $1 8 million in our bulk segment revenue.
$5 5 million in our services segment revenue and $291000 in additional manufacturing segment revenue.
We increased our retail revenue was due to the improvement in tourist activity in the Cayman Islands were.
We were up 14% in the volume of water, we sold for the third quarter of this year as compared to last year.
And our retail revenue also increased as a result of higher energy costs that increased the energy pass through component about water rates as well as a more favorable rate mix.
As much of the increase in sales volume.
For Cayman water was generated by tourists related properties and these such properties they are higher per gallon rate than our residential customers.
Our bulk segment revenue increased and this increase was attributable to the energy could increase in the energy cost for CW Bahamas. These energy cost increased pass through component of CW Bahamas rates.
The increase in our services segment revenue was due to increases in both plant design and construction revenue and operation and maintenance revenue.
Most of our services revenue increase in the quarter resulted from perks, new contract Liberty utilities, designing constructing advanced water treatment plant in Goodyear, Arizona, but I would like to point out that even though we started work on this contract this quarter.
The amount of revenue that we recognized on the Liberty utilities contract was really small relative to what we expect to recognize in future quarters.
The increase in manufacturing segment revenue was due to slightly higher.
Project activity.
Our gross profit for the third quarter of 2022 increased 20% to $6 8 million.
For the same period last year, while gross margin decreased seven four percentage points to 27, 3% due to a change in the relative segment revenue mix.
Net income from continuing operations attributable to consolidated water stockholders for the third quarter of 2022 totaled 824000 or <unk> <unk> per share.
This compares to net income of $1 4 million or <unk> per basic and diluted share for the third quarter of last year.
This decrease in our net income from continuing operations this quarter as.
As compared to the same quarter last year was attributable to three primary factors.
Number one higher repairs and maintenance expenses for our Bahamas operations.
These were up about 361000, we incurred these types of expenses intermittently.
So they can have a significant impact on any one quarter's results as they have in this quarter.
We also recognized a $247000 loss on the revaluation of the put call options.
We issued or acquired in connection with the acquisition of PERC years ago.
It is important to note that we exercised our call option to purchase the other 39% of PERC shares in October of this year.
And the third factor that created a decrease in our net income were increase G&A expenses in various categories.
Most notably increased bonus accruals arising from the improved financial performance year to date for the company as compared to last year.
Our employee salaries due to the need to get pay raises.
And bank charges related to the transfer of some of our profits from our Bahamas subsidiary to the Cayman Islands.
I want to point out that our bonus accruals for our management.
But based upon fiscal year financial performance metrics for the company.
For the first six months of this year, we accrued bonuses that had lower mounts based upon our initial expectations of year end results.
Once we obtain the liberty utilities and Red gained contracts our projected financial results for 2022 increased substantially thus.
Thus, we were required recorded cumulative catch up bonus accrual.
And I want to point out that we also incurred higher business development expenses and professional fees this quarter, leading to our pursuit of new business and a general inflation has increased most of our G&A expenses.
Our net income attributable to stockholders that includes discontinued operations was $318000 or two cents per basic and fully diluted share.
This compares to net income of 286000 or two cents per basic and fully diluted share for the third quarter of 2021.
Now turning to our financial condition and our balance sheet.
Our cash equivalents totaled $51 1 million as of September 32022.
This reflects an increase of $2 million from the $49 1 million as of June 30, this year, and a $10 $4 million increase in cash and cash equivalent to year to date.
This increase was due to cash generated from operating activities, which were almost $16 million for the first nine months of this year.
As of September 30th our working capital told it totaled $71 1 million.
So we still only have debt of $200000, our stockholders' equity totaled $158 8 million.
As of September 30th our projected liquidity acquirements for the balance of the year include capital expenditures for existing operations and plant construction of approximately $6 million.
This construction amount includes the $800000 for the replacement of our West Bay seawater desalination plant in Grand Cayman and approximately $2 4 million for the construction of the water authorities need desalination plant under our recently awarded contract.
As I mentioned earlier in October we exercised our option to purchase the remaining 39% minority interest in PERC.
So our liquidity requirements will also include the funds necessary to complete this purchase.
Price for PERC.
The minority interest will be based upon a third party valuation, which is presently underway.
We paid approximately $1 $4 million in dividends in October of this year, our future liquidity requirements will also include any future dividends declared by our board.
And during the quarter, we obtained a $10 million revolving credit line with Scotiabank and the bulk Cayman Islands. This.
This line was was obtained to assist us with some of our short term financing and working capital needs. However to date, we have not utilized any of the borrowings under the slides.
So this completes our financial summary for the quarter and with that I'd like to turn things back over to Rick. Thanks, David.
I'd like to talk a bit more about our business segments and major projects.
I'm looking at our retail water operations in Grand Cayman.
We are well we were pleasantly surprised by the rapid return of tourism to the island.
March of this year several major airlines resumed their flights to the island.
Cruise ships and thousands of passengers will welcome back to port.
In August all COVID-19 related restrictions.
Our entry to the Cayman Islands were lifted by the government.
And this easing of restrictions has positively impacted tourism here in Grand Cayman.
And David and I.
We're here this week and <unk>.
Grand Cayman and it's.
It looks like a lot of tourist activity around the hotels are full so.
We're very pleased to see what's happening here.
We are encouraged by recent indications that the 2023 tourist season will return to more historical levels on Grand Cayman.
At the beginning of this month, we saw the commencement of nonstop flights from Los Angeles to the Cayman Islands by Cayman Airways, So more air lift more tourists.
Would be the expectation.
Given these factors, we expect continued improvement for retail water operations in the first the fourth quarter and the first quarter of next year.
Our bulk operations remained consistent with our expectations. In this segment was not materially affected by COVID-19 or the downturn in the economy.
Effective September of this year another.
Milestone all COVID-19 related travel restrictions to the Bahamas were eliminated by the Bahamian government.
Yeah as I mentioned earlier, we broke ground in the fourth quarter on the Red Gate seawater reverse osmosis plant in Grand Cayman.
And this plant has been designed to produce up to 264 million gallons.
Portable water per day.
The water authority.
We expect revenue generated over the approximately 11 and a half year term of this contract to total about $20 million.
Based on January 2022 values and all.
Note again the.
The contract actually allows for.
Capital cost adjustment for inflation at the end of this year.
And also inflation adjustments for the operating costs and our bid at the end of this year and at the end of next year.
The majority of the revenue is expected to be generated by the construction and sale of the plant during the first 18 months.
The project with the remaining revenue to be earned by bulk water sales to the water authority over 10 years.
So now looking at the decile outlook beyond Grand Cayman, We're finally seeing some activity in the Caribbean market.
And we're following a couple of opportunities in that region.
We're also awaiting the resolution of the design build operate bidding process where.
We're a $1 7 million gallon per day seawater plant in Honolulu, Hawaii.
Which has been extended to the end of this year. So we would expect.
The successful bidder in that to be.
Sometime in January if they proceed with the project.
This project in Hawaii is very comparable to the types of projects that we've successfully completed in the Caribbean.
Over many years and we believe our extensive experience in designing building and operating these seawater plants enabled us to be shortlist for this project and for.
For similar projects in the future.
Now looking at PERC.
The U S operations of our California based subsidiary PERC water.
I had been working on some exciting wastewater recycling projects in the southwestern United States.
We mentioned earlier in May PERC was contracted to design construct and commission of 4 million gallon per day.
Water treatment facility for Liberty utilities in Arizona, We believe that we were able to obtain this project from Liberty because of our unique project delivery model.
Under this project delivery model, our clients only have to deal with PERC for all aspects of the project including design.
Cost schedule and plant performance, which enabled us to design construct and ultimately commission and advanced water treatment plant on.
On an accelerated schedule, which was important to liberty and at a lower overall cost versus some an antiquated project delivery models, such as design bid build.
The Liberty project is proceeding on schedule and we expect to begin generating increased revenue from this project in the fourth.
Fourth quarter.
And then 'twenty 'twenty three the project is scheduled to be fully completed by June of 2024.
Yeah.
Also in October we announced the PERC was awarded an expanded 10 year $49 $2 million contract to operate and maintain to advance.
Water treatment facilities in southern California.
This was a milestone win for PERC.
It's our longest perks longest term operations and maintenance contract.
And it represents we think an affirmation of perks World class operations and asset management services.
We anticipate this win we will support our plans to continue growing this segment of our business in the Western U S.
A region that is currently experiencing unprecedented drought conditions.
And I'll just note that.
There's a lot of discussion about DSO and.
In California, it's a <unk>.
Difficult market to do those projects.
We think that.
Perks product offerings, recycled wastewater, which could be used beneficially for.
Irrigation golf course, maintenance and even for drinking water and groundwater replenishment.
As they do at these two plants that.
They are currently operating is a much.
A much more robust market.
Those areas of the world.
Yeah.
So now looking at manufacturing.
In the third quarter, we continued to be held back by supply chain constraints.
And challenging economic conditions that have increased our costs.
However, we saw some improvement in October .
And this has allowed us to start moving more of our significant order backlog through the manufacturing process.
Our manufacturing contracted order backlog increased over the past three months.
To a record $20 million.
We anticipate most of this backlog will be booked as revenue over the next 18 months.
We caution that timing can change depending on the availability of materials and equipment.
Our backlog growth is due in no small part to the success of our integrated sales team.
We will develop new clients and entered new markets, such as the industrial and mining sectors.
Now I'd like to give you real quick update on the Rosarito.
Matter.
The project as you know is cancelled in 2020, we continue to be in active discussions with the Baja California government to resolve our claim relating to their cancellation of the project as.
As well as potentially addressing the state's acute water shortages.
I'd like to reiterate that we have agreed to delay the appointment of the arbitrators during the course of these discussions.
But the arbitration has not been suspended we hope there are ongoing discussions with Mexico will result in a positive solution for both parties.
In addition to our organic.
Growth, we continue to pursue potential acquisition and partnership opportunities that.
It would be complementary to our existing businesses product offerings and customer base.
David mentioned earlier that some of our G&A expenses related to business development activities this past quarter.
We are actively pursuing two opportunities.
When they can bring our wastewater operating services into another rapidly growing area of the United States and.
And a second they could further grow our manufacturing business.
Providing equipment to the mining sector.
We see many positive factors driving continued revenue growth and more importantly earnings growth in future quarters.
These include the continued recovery of tourism in Grand Cayman.
Our record high manufacturing backlog.
And increased project bidding activity in the United States and the Caribbean.
Okay.
The more than $150 million in major multi year projects that we obtained already this year, we will have a much bigger positive impact on our earnings in the coming quarters.
And support our outlook for continued growth in our services segment.
All of these activities and trends represent a catalyst for greater growth ahead.
Now Joe I'd like to open up the call for questions.
We will now begin the question and answer session.
To ask a question you May press Star then one on your telephone keypad.
If youre using a speakerphone please pick up your handset before pressing the keys.
To withdraw your question. Please press Star then two.
At this time, we will pause momentarily to assemble our roster.
Okay.
And our first question here will come from Gerry Sweeney with Roth Capital. Please go ahead.
Good morning, Rick David Thanks for taking my call.
Sure Jerry.
Let's start with park I know better than to ask what's the range is.
Looking at for the last 39%, but I was curious you can kick in.
If you have any idea of when that valuation will be finalized.
Yeah.
Well, we have basically a 44 month period.
To close the transaction so we.
Under the agreement that we signed with them. So we exercise the option at the end of October so.
Early next year, we should complete that.
Got it got it and then just speaking about PERC.
What does the.
Sounds like activities very good and.
No not just the solvent water reuse recycle et cetera could you maybe elaborate a little bit on what the maybe the final potential funnel and opportunities a number of projects youre looking at or anything like that on.
For PERC.
Okay.
Well.
From the standpoint of new builds I mean, there's probably two or three smaller reuse projects that we're talking to clients potential clients about so that would be a design build.
Type deal.
They are primarily for as you know with the.
The drought in the west the golf course, and recreational type properties are.
Were hard hit with the water shortages so it's.
It's primarily in that market.
Theres other large operating contracts that.
We're looking at.
Those would be bid situations into next year.
We think that.
PERC is unique in that it has.
I think.
A much more impactful resume than any of our competitors in operating these advanced water treatment plants.
And it was very important that we.
So we got the renewals on those W. R&D contracts because theres very few companies out there in the U S that have the experience that we have.
And advanced water treatment.
Theres another plant that.
We're just starting up now for a client that will be operating for the next two years. So.
And advanced water treatment plant and I think they had their rubin.
Ribbon cutting today or tomorrow so.
Okay.
We have our hands full right now Jerry and with the projects that we're working on.
We're looking to.
Fill in behind them.
And as the time when the time comes.
That was actually a good lead into my second question was.
Yeah.
Is there an opportunity to invest more shuttling to park in terms of driving additional growth or capacity or how do we look at it.
What's the thoughts on that.
Yes, absolutely.
We've.
Over the last three years that we were.
We had ownership interest there I mean, we've driven there.
Their growth substantially I mean, it's just an ongoing process.
And Theres really no.
Something like that.
So containers.
There's not there's not incremental investment there, it's really just resources.
Human resources.
You know people that can do these jobs I mean, we're not doing.
Design build own operate type work like a consolidated does we will invest in tens of millions of dollars over 15 or 20 years. So it's just a manner, it's a matter of managing.
The growth in getting the people here that can do the work.
Got it and then one other question on the Oh, I'm, sorry, I can't do it.
So there's nothing else I'd say, there's really not much in the way of capital restrictions on growing that business at the moment.
And we don't have we have the we don't have the opportunity to invest in plants like we did with our <unk> business. So most of these design build contracts are self funded and assuming we get the performance bonding taken thrown out which we've had no problem with so far I mean, we can.
In other words capital's not constraining us with PERC.
Yeah, No no I didn't I wasn't that didn't quite honestly I wasn't looking at an investment in terms of plant.
Large physical assets I was looking at it more from the human capital side.
Things are starting to kick off you're getting obviously your backlogs building I wasn't sure. If there was a desire effort you know borgwarner to maybe add more engineers, even more salespeople because we all know drought United States.
We're trying a lot of opportunity.
That was more of a leading restaurant.
Yes, I mean, when David talked about increased costs I mean, some of that was PERC I mean, we had to hire.
I think we went.
We went up by about 15 staff over the last quarter.
Quarter.
A lot of that was related to the new Www Rd contract those revenues will start kicking in next year.
And I just mentioned.
You know from the standpoint of increased costs because of inflation and other.
I'm sorry.
Broader economic factors.
We're working in a environment where.
There is a lag.
No.
Any adjustments to our revenues for those things I mean next year.
Our bulk contracts will be getting inflation adjustments.
Some of the per contracts will be getting inflation adjustments.
And that will help too.
George some of those additional costs as well.
That's important.
Thank you I appreciate that.
Another question just on the payments.
The volumes were up.
Police departments about 14%.
What's the.
Yeah.
What were volumes last year.
And really the question is what is normal.
And how far off of normal per se.
Today, and how much more opportunities volumes increase.
It came in.
I also understand that.
Normally that would be definitely I'm not sure for Cal stats on its 100% et cetera.
Wanted to I don't want to get where we are sort of drilling backlog.
Okay.
Gary originally we had disclosed that we were off about 25% from historical volumes.
As a result of the closing of the island.
I took a look at the numbers yesterday.
Mitek yesterday in a few days ago.
And the numbers for the fourth for the third quarter of this year.
Volumes were up but still about 10% below what we did.
In a normal year.
So we're not down 25% anymore were down 10% and the trend has been going up so hopefully we would see in the fourth quarter volumes that are closer to what we did pre pandemic.
And that would be an indication that things are pretty much back to normal in grand Cayman as far as tourism is concerned I can tell you.
As Rick mentioned earlier were down here when I put down became.
It was a full flight busy airport.
We had trouble getting hotel rooms here. So we're very we're very encouraged with what we see we think things have to be pretty much back to normal hopefully by the first quarter next year.
Got it okay. That's it for me.
I appreciate it.
Thanks Jerry.
Again, if you have a question you May press Star then one to join the queue.
Okay.
[laughter].
All right.
It looks like we have another question from John Bair with ascend wealth advisors. Please go ahead.
Good morning, gentlemen.
Good morning, John .
Just what's the delay on the Hawaiian bid.
Uh huh.
Project was.
I may have missed it but.
Yeah. They they asked us to extend the client asked us as the bidders to extend.
Their pricing till the end of the year.
They had they still haven't decided.
Whether they're going to proceed with the project or not or.
They didn't give us too much information on why they wanted the extension but.
They have until December 31st now to.
To get the pricing that we bid back in June .
Okay.
Any sense of how many.
Other entities, you're bidding on the project.
Well, we know that that.
A total of three including ourselves we're involved in the bidding process, we actually don't know.
Many actually bid.
We had a number of questions from my side over the last few months.
And we're.
Yep satellite are.
Very good that's all I got for right now thank you very much.
Alright, John take care.
Again, if you have a question you May press Star then one to join the queue.
Our next question will be a follow up from Gerry Sweeney with Roth capital. Please go ahead.
Thanks, guys.
Question on margins.
You know Rick and you did mention there was going to be some inflationary pass through the end of the year, but.
But even in like the bulk side when you have some of that energy pass through.
Gross profit dollars sort of stand that's a pass through so gross profit dollars may stay the same but it may make the percentage look lower because that.
And accurate assessment.
I would guess so yeah we.
We don't we're not meant to make any margin on the pass through.
So the revenues increased significantly I think because of the energy price changes, yes Jerry.
Our plants are very efficient.
We make a very small margin on the energy pass through was very minimal.
On some plants, but you know when you add the number to the numerator and the denominator it affects the margin.
So that's what I figured.
Okay.
So it's a gross profit dollars hasn't changed just the the percentage of them. Most of that's just because of the energy patch.
Yeah.
That's exactly it.
Got it okay. Thanks I appreciate it.
No problem there.
And our next question will come from Christine song with New century Advisors. Please go ahead.
Hi morning, guys and I think I have a question on capital allocation and I know you guys have mentioned.
Separately, you have your personnel to opportunity the wastewater and manufacturing equipment and mining sector. If I heard you correctly. So can you elaborate.
On the two opportunities specifically the mining sector opportunity and also if you can kind of size in terms of what kind of multiples you guys find attractive for buying and then also your thoughts on buyback as well as increase in good hands.
With your capital allocation.
Yeah sure Christine.
When I spoke about that.
Earlier.
I meant I said acquisitions and partnerships the mining sector opportunity as a partnership opportunity that would mainly impact our manufacturing segment it would be.
Partnership with some other entities to provide equipment to fast growing sector of the mining industry.
There wouldn't be necessarily.
Any or much capital investment there in that particular situation.
The other acquisition of wastewater acquisition.
I mean it.
We don't talk about values right now I mean, we're in the midst of.
Negotiating something that.
The owners.
But it would be in line with what we've done in the past I mean, we don't do any sort of <unk>.
$30 $40 $50 million acquisitions, we haven't done recently anyway.
They're more sort of sub $10 million deals that give.
Us.
Very attractive opportunity to grow our existing service offerings into a new market that's growing very rapidly.
And with respect to our dividends.
Buybacks.
Our company actually proposed.
Initiating a stock buyback program several years ago, and our 2008. Unfortunately, our articles of incorporation requires shareholder approval.
For us to have a stock buyback plan and we proposed to our shareholders.
It was 2008 2009, a proposal that we have the authority and Linda our articles of incorporation to allow us to.
Stock buybacks and that proposal was not approved by shareholders.
Lately, we're not allowed to buy back our own stock at the moment.
Without shareholder would have to get when you have to be a proxy out but we'd have to get shareholder approval given that we failed one time doing getting that approval I don't think we are.
Contemplating it again anytime soon but look our dividend policy is such that.
We believe our company's valuation is based more upon our growth in the amount of dividends that we pay.
We think we're viewed as a growth company more than an income stock.
So we'd like to allocate our existing cash reserves.
New projects New business. However, I think our board of directors is aware that if we continue to accumulate cash balances, we probably move.
They'll probably increased our dividends, but I can't speak for them.
But ideally we'd like to allocate capital.
New businesses acquisitions projects, but if we find out that we have excess cash I'm sure our board will clearly dividend increase.
That's pretty much it Christine.
Okay, great. Thank you very much.
Youre welcome.
All right at this time this concludes our question and answer session.
I'd like to now turn the call back over to Mr. Mctaggart, Sir. Please go ahead.
Thanks, Joe.
Thank you everybody for being on the call today.
For your interest in consolidated water and I look forward to speaking with you again in March when we announce our fourth quarter and full year.
Earnings for the company.
Take care.
Okay.
Yeah.
Thank you, ladies and gentlemen, before we conclude today's call I would like to provide the company's safe Harbor statement that includes cautions regarding forward looking statements made during today's call.
The information that we provided in this conference call includes forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995, including but not limited to statements regarding the company's future revenue future plans objectives expectations and events.
Assumptions and estimates forward looking statements can be identified by the use of words or phrases usually containing the words believe estimate project intend expect should will or similar expressions.
Statements that are not historical facts are based on the company's current expectations beliefs assumptions estimates forecasts and projections for its business and the industry and markets related to its business.
Any forward looking statements made during this conference call are not guarantees of future performance and involve certain risks uncertainties and assumptions assumptions, which are difficult to predict.
Actual outcomes and results may differ materially from what is expressed in such forward looking statements.
Factors that would cause or contribute to such differences include but are not limited to tourism and weather conditions in areas we serve.
The impacts of the COVID-19, pandemic, particularly on our retail and manufacturing segments, the economic political and social conditions of each country in which we conduct we're planning to conduct business our relationships with the government entities and other customers, we serve regulatory matters, including resolution of the negotiations for the renewal of our REIT.
They'll license on Grand Cayman.
Our ability to successfully enter new markets and various other risks as detailed in the company's periodic report filings with the Securities and Exchange Commission.
For more information about risks and uncertainties associated with the company's business. Please refer to the management's discussion and analysis of financial conditions or results of operations and risk factors sections of the company's SEC filings, including but not limited to its annual report on Form 10-K, and quarterly reports Form 10-Q.
Any forward looking statements made during the conference call speaks as of today's date.
The company expressly disclaims any obligations or undertaking to update or revise any forward looking statements made during the conference call to reflect any change in its expectations with regard thereto or any changes in niches that.
Conditions or circumstances of which any forward looking statement is based except as required by law.
Before we end today's conference call I would now like to remind everyone that this call will be available for replay. Starting later. This evening. Please refer to yesterday's earnings release for dial in and replay instructions available via the company's website at Www Dot C. W. C O dot com. Thank.
Thank you for attending today's presentation. This concludes the conference call you may now disconnect your lines.
Yeah.