Q2 2023 Mistras Group Inc Earnings Call
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Please be advised that today's conference is being recorded I would now like to hand, the cough or solve it to your speaker today Dennis <unk>.
C E O. Please go ahead.
Okay. Thank you Brittany and good morning, everyone. Thank you for joining us today.
During the second quarter of 2023.
That's just progressed further towards our strategic efforts to streamline the organization and fine tune our strategy to unlock the inherent value of our business.
Although we continue to generate revenue growth and many of our key markets.
Impact of decreased activity with one of our defense contracts.
All set these games I had a consolidated level.
Consequently.
Revenue was down marginally adjusted pretty effective FX exchange.
There were several bright spots related to revenue grilled drivers in the second quarter of 23.
Including certain key markets, which achieve record revenue performance.
In particular.
Our Westpac acquisition accuse shop.
<unk>, which specialises in aerospace projects reported a record revenue quarter.
Additionally, I.
Australia achieved a second best quarter revenue in its history.
Which performs in line inspection testing of pipelines.
Ice cream growth was driven by a record quarter for it you segment.
Which has achieved revenue by over revenue growth by over 75 per cent for the first half of 2023, okay.
Within data solutions are P. C match, new century business also experienced growth in the quarter driven by continued customer adoption of its predictive analytics.
There was also progress achieved and strengthening our financial position with cash draw.
Draw cash flow and a significant reduction in days sales outstanding contributing to a further reduction in our outstanding debt.
Selling general and administrative expenses also declined sequentially.
Reflecting our ongoing cost controls.
And the second half of this year, we will seek additional cost savings opportunities expanding upon what we have already implemented during the first half of 23.
As we continue to improve operating efficiency it will contribute to improve bottom line result.
It will provide more details on these initiatives later.
We also anticipate that the second half revenue will be stable with modest growth over the comparable prior year period.
But with an expanded improvement and adjusted EBITDA due to a favorable sales mix shifts and continuing to reductions in overhead, particularly SG&A expanding.
Our cash flow remain strong and I'm very pleased with the investment that we have made an twenty-three relate.
Related to our higher growth businesses via increased capital expenditures.
Which will further our expansion and key growth markets.
First just a few comments on performance and our end markets during Q too.
And our growth areas, we achieved outstanding performance in the second quarter, which we expect will continue through twenty-three.
As I previously said Westport, West Penn, which reported it's all time highest quarterly revenue grill.
<unk> by adding complimentary offerings to our capabilities to help alleviate some of our customers supply chain constraint.
I've taken on additional steps.
And the standard process, finishing the components for our customers.
This growth as a byproduct of investments and the business such as prior announcement of the opening of a new facility adjacent to our he's Ohio operations to accommodate the increased demand for our solutions there.
As well as the installation of additional customer financed C N C machines to.
To expand machining capabilities increase the throughput of our.
Georgia facility.
These are growth in markets, where we anticipate continued success.
We also anticipate that our fans related revenue will improve from the first half of the year.
As our customer ramps back up our workload associated with this work later in the year.
Longer term, we are focused on finding new ways to participate in servicing the overall backlog currently experiencing this industry.
Because of these actions, we expect to see continued growth in the aggregate aerospace and defense sector.
As mentioned stream achieved a second best quarter in our history and their second highest all time revenue quarter driven by record results in their U S portion of the business.
That business is up over 75% from the first half of twenty-three compared to <unk>.
Last year, where it is well positioned in the midstream ili market sector and provide optimism about our future growth.
And last but certainly not least.
Our portfolio of data solutions offerings.
At around or a P. C must new century, an ice cream business lines continues to expand.
Alright, evidenced by their year over year growth of 22%.
Comprising now over 10% of our total revenue.
We are working to sustain this level of growth and performance.
Each of these initiatives are in growth markets and are expanding faster than our other and markets.
Our strategy is to continue to foster investments and he's capabilities to expand our solutions and penetrate new markets.
The second half of the year to see even more progress across the various initiatives implemented which should.
Enable us to achieve greater margins and a significant improvement in bottom line.
I would now like to turn the call over to add to give you more information on our financial position.
In further detail on our cost savings initiatives.
Thank you Dennis and good morning, everyone before I start just a quick quick rewind here, we omitted the safe Harbor statement upfront I'll just quickly go over that just simply reminding everyone that remarks made during this conference call will include forward looking statements are actual results could materially different from those projected some of those factors.
It could cause the results are discuss in our most recent Form 10-K and other reports filed with yes, you see the.
The conversation discussion in this conference call will also include certain measures, which were not prepared recorded with U S. Gas a reconciliation upsets measures to the most directly comparable U S. Got measures can be found in the tables contained in yesterday's press release and in our related current report on form 8-K. These report all available at our website as well as at the investors section at.
E F C C website with that.
It was truly another meaningful progress quarter furnish Ross.
Alright legacy and markets are very stable and are key growth markets are standing per plan as Dennis elaborated.
We are making steady progress preparing the straws to improve productivity and efficiency and better leverage better leveraging our here it strikes to capitalize on the sectors of our market, which are growing the fastest wherever we can service customers on that needs.
As in Nancy of February 2023, we have been exploring ways to improve profitability and adjusted EBITDA.
Meaningful margin improvement and steps to achieve sustained cost savings.
We have completed the initial phase of this project, which we refer to as project Phoenix.
Wherever you an initial opportunities were identified.
We are now undertaking the next phase of validating actionable initiatives, which can then be implemented prospectively.
We will provide an update at the end of the third quarter of 2023. After further progress is made towards achievement of such opportunities.
Most of these cost savings are related to our north American operations related to a reduction in overhead functions classified within the SG&A line.
Approximately 4.5 million of the 5.1 million of savings anticipated to be achieved in 2023 were budgeted for and hence were included in our original adjusted EBITDA guidance for 2023.
Second quarter SG&A was down sequentially from the first quarter of 2023 by $1.3 billion or 3.1 per cent.
As a result of the ongoing budgeted cost control initiatives.
For the second quarter of 2023, we recorded 1.2 million of reorganization cost related to our ongoing efficiency and productivity initiatives, primarily related to the overhead cost savings initiatives.
For the second quarter. These charges included professional fees and certain restructuring charges associated with changes made within our organization structure.
For the six months and did you 30, 20th 2023, we recorded total reorganization cost at $3.3 million.
Again actually taken in the first day. After this year are expected to contribute 5.1 million to adjusted EBITDA over the course of the full year 2023, which we're gonna have a million was expected and budgeted for you know our original address for the year.
Interest expense was up to the second quarter, although down sequentially.
Year over year, the year over year increase a benchmark rates. Despite our continued commitment to reducing outstanding that led to the quarterly and year to date increases over the respect your prior year periods.
With benchmark rates now expect it to remain higher.
The duration, we now believe pull your interest expense will be in the range of $50 million to $60 million.
Our net cash provided by operating activities was 18.3 million for the first six months of 2023 compared to $7.8 million in the prior year, an increase of nearly 135% year over year three.
Free cash flow with 7.7 million for the first six months of 2023 compare $2.7 million in the prior year again significant improvement.
Reprove cash flow performance, which primarily attributable to an improved days sales outstanding during the year.
Capital expenditures increased by 3.5 million versus the first six months of 2022.
So you're increasing investments to foster growth.
<unk> was $183 $70 million as of June 30, 2023, compared to 191.3 million as of December 31, 2022.
<unk> decreased by $5.6 million during the quarter ended June 30th 2023 $189.3 million as of March 31, 2023.
Two 187.7 million as of June 30th 2023.
Our net debt was $165.7 million as of June 30th 2023.
There was in fact, a significant improvement in working capital do with a quarter as I said, especially due to the day sales outstanding wearing we reduced to about 60 days outstanding through aggressive proactive actions keeping that that cash flow.
Strongest we can make it.
Contributed to free cash flow of 8 million for the quarter, which date in turn lead to further debt reduction levels to under $184 million as of 230, we.
We continue to Prioritise debt reduction as our primary use of free cash flow and we continue to expect to reduce our debt leverage ratio to below three times by the end of 2023.
Once that level is achieved we intend to evaluate our capital allocation strategy.
Investigate other uses of cash flows as a means to accelerate growth and build shareholder value.
Capital expenditures were 5.9 million for the quarter.
2.1 million compared to the year ago quarter, and a 3.5 million for the year again, reflecting our ongoing investments in our growth initiatives.
As noted in yesterday's press release.
We are updating our guidance ranges to reflect current market conditions, and our focus on profitable growth and cost savings.
Revenue for the full year 2023, now expected to be between 700 and $720 million <unk>.
Due primarily to reductions in legacy oil and gas revenue, particularly downstream.
Adjusted EBITDA is now expected to be between 68 to 71 million.
And as I stated earlier, we have already taken certain actions in 2023, which are expected to yield annual cost savings of approximately 6.2 million of which 5.1 million is affected trivialized 120, 23, and it had been budgeted for enhance was included in our original guidance for the year.
Operating cash flow will be adversely impacted by certain cash expenses.
Required to achieve the cost savings accompanies free cash flow guidance is being adjusted to between $23 million to $25 million due to the reduction in the adjusted EBITDA.
One editorial note you'll notice that included in the supplemental unaudited revenue by category tables that you'll see in the press release, we have retrospectively reclassified certain oil and gas subcategory revenues for each quarterly period in 2022, specifically, we looked at certain integrated providers.
For further analyze them in the current year and they're classifications within oil and gas sub categories will reclassify between updated downstream, respectively comparable or compatibility year over year. So we adjusted all the quarters within 2022 in order to conform with the classification presented in the current year.
The stress is committed to creating value for shareholders by improving productivity and efficiency and achieving return for our services commensurate with the value that we provide unlocking and aggressively investing in our growth initiatives and leveraging these key actions to significantly drive better bottom line performance.
The results of the <unk> of these actions are expected to lead the second half performance that it's appreciably improve on the first day without the benefit of meaningful consolidated revenue growth.
I will now turn the call back over the dentist wrap up as if you wanted to take your questions.
Alright, Thanks, Ed.
Our oil and gas business is stable up nearly 5% year over year for both the second quarter and the first half.
Due to strength and both Onstream and the data solution offerings.
Commercial aerospace revenue is.
Nearly fully recovered to pre COVID-19 levels.
And we expect aerospace and defense to benefit from growth in our commercial aerospace shop business, where we saw record revenues as previously discussed at West Penn This quarter on the strength of an expansion of services with our customers to help alleviate their constrains into supply chain.
This has reflected in a 44% increase in shop revenues for the quarter.
Aerospace and defense remains a focus area, where we believe there is significant growth opportunities.
Data solutions required a revenue growth of almost 12 per cent and a quarter and is now experienced 22 per cent growth for the year to date.
Data solutions revenue is being generated in virtually all of our vertical industry segment <unk>.
Including leverage leveraging our core legacy and oil and gas.
S add elaborated we are making steady progress preparing Mr us to improve productivity and efficiency and better leverage in our inherent strengths to capitalized and the sectors of our markets.
Our expectation is that this should create positive momentum to increase our margins headed into next year.
As a result of our cost savings initiatives and the growth in our high margin business.
Optimistic domestic as visit mistrust is positioned to capitalize on the growing demand for our offerings.
Accelerating our transition into more profitable growth.
Before taking your questions I'd.
I'd like to emphasize that our current focus on project Phoenix.
Is designed to calibrate our overhead costs.
Providing them with improved tools and technology to better serve our customers and their respective industries.
I acknowledge that this process, we're going through forces some difficult decisions, but is well worth the effort and the company and the company will become much stronger and more resilient going forward as a result of it.
Moreover, we are keenly focused on growth areas and finding new ways to expand revenue and our current portfolio of businesses.
I also want us some chili thank all of our employees who have kept their focus on the safe operation of our work.
One example of this is in a significant reduction of our vehicle incidents. This year. This year. The shows we know how to stay focused and what is important.
And share with them as well as learn from them.
We are moving the industry forward.
Every mistrust employ out there. Please stay focused on safety as we move forward and thank you for your dedication.
And with that Brittany, Please open up the lines for questions.
Alright. Thank you we will know kicked out the question and answer session. As a reminder to ask a question. Please press star one one on your telephone and wait for your name to be announced so let's draw. Your question. Please press star one one again.
Please stand by while we compile the two and a roster.
Mmm.
Our first question comes from the line Mitchell Tenera.
<unk> I'm, sorry from Sir Diva. Your line is now open.
Hey, good morning good.
Morning, Mitch.
So.
I I I got on just a touch late but.
Mmk got what I needed I was I was curious.
You know you you you called out downstream as as having you know sort of like a negative impact on the quarter I look at the numbers and it was basically flat were you expecting a lot more.
And what what are the issues with downstream anything new or is this just the typical lumpy unpredictable.
Type of business.
Exactly right Mitch the the numbers were flat.
A little bit up as we say it but we were expecting more out of the quarter.
Other times the customers are just coming off of.
<unk> or you know with the heat and the other things are keeping up record levels of productivity and throughput at their facilities.
So if it's still a very difficult business with customers all the time at refineries as much as I want, but I'm out there and talking to them and they too have a hard time understanding what it's gonna be and what it's gonna look like for different reasons, they try to plan.
Turnaround activities at a certain time without knowing what their neighbors are doing and then they find out that there's too much lumped in so they end up having to move it and change it because of.
Yeah, just to clarify sorry, just to clarify the comment we made was relative to the outlook you write down Street was actually up modestly for the quarter end up nicely for six months, we just expected it a little more is Dennis said so the contacts we gave us the the reason for the outlook being adjusted revenue for the year is is a little lower than we thought for the full year, but it is up for the year.
0.8, both for the quarter in there in the first half.
I think.
So you're looking at is this is this being conservative on the downstream side.
Or.
I don't know, what's conservative or aggressive anymore, when when they're not even sure what where it's at so we're certainly not going to lean into it too hard if if.
If our customers have the same questions we do.
But you know.
Can you always when Mark and you go longer can they have a discovery that they didn't anticipate certainly but at the same point it could play any other way too right.
And just in this last thing on this is is you know since pre COVID-19.
You know I've been waiting for like 10 to up demand from delayed projects and and the sort.
Are we are any of the is the revenue are you seeing.
You know some of the delayed or pent up demand for for new equipment services, you know a bigger bigger projects are you seeing that flows through or is there still a backlog that you think.
These companies have yet to get around too.
So Mitch if if I break down into the aerospace a huge backlog huge amount of.
Under capacity and over demand right. So in aerospace sector. It's there, it's dragging a little bit on our international side of it.
<unk> U as in Canada for North America backlogs Aaron that's all these things were trying to do to help.
Basically pushing through by taken on the same processes and do more of them in one facility as opposed to many in the.
Field sides specifically the.
It really didn't change that much in COVID-19 for mid and up because I was facilities are bigger harder or just don't have the density of population and people like at a refinery so.
On the upstream certainly are smaller camps and stuff, but you still had to get the work done city are doing what they could.
The refinery is mostly where you're probably referring that to an.
You know.
It's it's a myth, sometimes there's customers who are trying to play catch up on things. There's certainly see why programs. This corrosion under installation and things like that that are fighting customers and you're spending money now but.
Very heavily watched in the span is very.
Scrutinized, so there isn't a lot of people with a lot of excess money to catch up on it for a budget of things that happened in the past.
Okay.
And then.
And I was maybe maybe you can give an example or two of.
The sort of type of cost savings that you're doing here in.
2023, I know you said, it's part of it didn't G&A overhead.
But what if you could give me some examples of.
I was like sort of things you're doing and then maybe.
What what we should expect out of project Phoenix from my percentage you know an EBITDA margin change I mean, how how significant do you think this can be.
You know knowing this is still early stages.
Thank you.
Oh sure Yeah. Good question, Mitch again, all all the actions we've taken thus far you're seeing them in the run rate. We still have some work to do you know to complete our stuff. We've done. This study now we're more or less validating actions going forward and we'll get we'll we'll we'll have a lot more to share. This time end of Q3, but essentially it's really just looking at.
How we operate the business how the service to customer much of the the the pack now has been head count it's been combining roles reducing roles you know combining some facilities here and there. It's really just getting this back office footprint, just tightened up more efficient, we're looking at systems and workflow and automation.
We're not done we're gonna go for more but we're not quite.
At that stage, yet where we've we've completed the final actions here then that'll be in front of us.
To get that wrapped up.
And then this last question on the.
What what happened.
And the power generation and transmission business in the quarter what was.
It's been a it's been a week or you know it was down a lot last year and I'm just curious what's going on in that business that would that would.
Cause yeah, <unk>, it's fairly straightforward we had a long.
Project for new construction.
Struction that is just basically starting to see its end of life were still there in a very modest compared to previous someone you're looking at the camps for the <unk> first two quarters of 22 to 23, we were really carrying down that much yet.
So the top caps for US now on it one project Peralta aggressively looking for more and you'll find that we're looking to find other projects were looking at things like you may not be power, but LNG and all these other things that are going on for getting energy from one part of the royalty other we're getting some looks at that and there'll be all set. So it's just this is just timing of one coming off that's.
And there had been a nice one for many many years and will find boys to replace it.
Okay.
Thank you for the questions you got it thanks Sir.
Alright. Thank you so much make sure why mommy find next question [noise].
[noise]. Our next question comes from the line of Chris <unk>, which singular research. Your line is now.
Yes, hi, good morning.
Oh sure appreciate it I mean, it's it's it's.
Minor we've not disclose the actual number of heads and that number but that that is the significant piece of what we've done thus far again, some consolidate facility consolidations some reductions in professional fees as well, there's a number of things that we've gone after so again, where we're at the point now loves still looking forward. There still are more we're gonna do we are.
Looking at you know action eyes are putting into action. Some of the study we've done there'll be not disclose the number of hedge just yet and in that number. It was not a significant number again 6 million is a run rate of savings. We've achieved at this point 5 million of which are you know into the 20th will be into the twenty-three results.
Again, it's.
We don't want to harm the business, obviously, you want to support the <unk>, we have and be able to just more efficiently support it from the back office is really what we're.
Would that be.
So there'll be some savings there much more of it will fall into the SG&A line versus Cogs wine, but yeah, you'll have some benefit up there in the in the cost of goods sold a very modest.
Lifted margins are attributable to it but primarily more than SG&A.
Four capital expenditures.
How should we be looking at I've been going for the rest of the year and into 2024.
Great question, Chris where you know, we're just up over 10 million out through mid year. We had said you know we would keep it under 20 for the full year. We're now saying that will probably breakthrough that number you know 21 $22 million in it and.
And it's all good incremental expense, it's the it's the things that is talked about it on the call investing it particularly in our aerospace shop labs.
Where there's new specialized equipment going on it's expansion capital, it's new work for the customer we're taking on new steps to help accelerate OEM parts due to supply chain for final Assembly you know in the aerospace side. There is a nice backlog their work that has to get done we're happy to do it. So yeah I I think our Capex, we'll stay up at that.
[noise] level that that's sort of where it was back pre pandemic you had it you know in that 20, low 20 million dollar range. So don't be surprised if we want to bring it up to twenty-five next year, but by leading into some of this additional investment.
In our shop Labs, where there's you know real good business at a good margin to go after and it's all incremental for the customer. So yeah. It will be you know I think elevating that number just a little bit for good reasons cause there's good immediate payback on it with real worked at the customer you know it is clamoring for us to help them with your now so that's where that's where that can.
X as coming from it's not delayed things that we didn't do the last couple of years, It's brand new expansive work that we're we're looking to do for customers.
Okay, great. Thanks for the answers.
Thank you.
Alright, thank you so much.
One moment, while we check our next question.
Alright. Our next question comes from the line of Brian Russo with Sidoti.
Your line is now open.
Hi, good morning.
Alright, Brian .
Thanks for all the detail on on projects Phoenix and I'm, just curious you know bigger picture.
What are you doing on the top line side too you know avoid all these on absorbed Cos when revenue fluctuates given.
You know the uncertainty.
Yeah. So quick question, Brian I mean typically.
The peaks of our spring and fall are absorbed by <unk>.
More people coming into the system, but certainly by a much greater amount of density of work during that week. So they golf from 40 to 60 to 80 hour weeks right.
Equipment people skill sets that we can move from one to the other.
We're always moving people around to try to balance that off and a trick is really we watch are available and try to keep it down to two per cent on the on billable and an additional one.
Two two per cent the most for training.
And while we tried to do is just move.
Move folks and skills within that to keep up with it but.
But we don't we try not to keep a very heavy load of people waiting for spring and fall in the off season cause it really upset you on your cost that being said I will say, though this last 12 months.
Because I'm, just trying to get access to folks and getting people to work and.
The biggest problem is bringing an apprentice and getting customers to move the numbers on the apprentice to the numbers, we need and and are now more and more.
Understanding of that not just because of us because many other vendors are saying we need to bring in fresh new people into the market and we're competing with food.
Food retail used cars and everything else.
People aren't gonna work in an industrial setting if you can get a similar somewhere else as a starting wage.
So by doing that.
We've been working to build it up but we certainly do miss more of the peak now than we had in the past just because the.
The dislikes and trying to get labour out into the market as you need it is more difficult and we've usually.
If I could just add to that Brian I think your question, who is more of the contacts I think of what's project Phoenix doing to help this area and I I would say, it's it's what Dennis is saying, it's really helped lovely things out. As example, we're looking at utilization and Hey, what more data in our CRM give us like we're looking top to bottom Phoenix is more than you know an ear.
It'll help I think address what you're getting out there Senator lumpiness of the business. It is what it is it's inherited the business is cyclical so let's just be smarter about how we kind of stage and set up our resources and then target what we're going after in the ebbs and flows that is a big part of what project finishes looking at as well My Head's why it's taking some time to kind of think it through and you know.
Really look bigger picture.
Okay, and then on the 15 millions.
Is that primarily due to the power generation project, it's winding down or is that the result of legacy downstream.
Work, that's being completed or is it just a shift from that defense contract that is slow to resume I'm just trying to get a sense of the 15 million is lost <unk>.
Forever and your Rebasing your revenue mid point, you know to work off of going forward or you know can you recoup some of the 15 million going you know going forward into 2024.
<unk> wishes, but.
There's it's not a structural change as far as we don't think it's lost forever certainly the project that Whining office is gonna go into decline and we'll say on site is run and maintain kind of thing, but nowhere near what you do during construction. So that'll fall off but that's just normal project activity and we'll find replacements for it.
Like I say the timing wasn't perfect that we didn't get it as it came up but we'll find replacement for that.
The legacy part of the refining is really where more of the concentration of the changes came from we expected more out of even though we grew this year like we said earlier and.
We didn't grow to the extent that we had original forecast for in discussions about so we believe that's just.
Normal changes that will be able to get back into these upcoming years.
Yeah, Okay sure reiterate that Brian exactly at a power Jang contract drop off sunsetting that was budgeted for plant expected that's not affecting the outlook whatsoever that defense delay defense start up Yep. That's that's slower than we thought that's definitely affecting the it was a full year outlook, but it's Dennis said, it's this legacy downstream.
Is the bigger piece, that's not hitting the full your expectation that's essentially the <unk>. The real reason why we brought the the revenue out of town.
Okay got it and then just to clarify you know you mentioned the strong performance of.
Of on stream and I'm, just looking at the oil and gas revenue subcategories.
<unk>, it's in the upstream right cause that's that's really the only sub boil and gas category that experienced revenue growth.
And this June quarter versus the year ago quarter.
Right right right.
The pipes that were backing for the customers, sometimes they're midstream sometimes the thoughts upstream.
So there's other work inside a pipeline and other ones that you're looking at but probably the bulk of the time, it's a midstream play for on screen.
So some of the things that you are seeing any upstream is just some of the core legacies front all their previous acquisition such as such as nature and such that is also doing well.
But onstream as in ball sector. So it doesn't always drive one or the other it's just a function of what's happening with the rest of it.
Okay, Great and I know you guys don't disclose backlog right because just the nature of the business but.
I mean any sense of you know is there like a pipeline of work out there that you know that you're pursuing.
Roelof.
Where would you want to.
Trying to get a sense of of you know.
The the the market opportunities for for growth.
Above that.
William mid point Mhm, so in defense, there's a huge amount of.
Defence with the Navy and other military folks and many contractor is trying to bring in new talent.
In the future as far as in the oil and gas sector like I said earlier, there's LNG projects out there that there's a lot of that building up multiple trains in multiple locations trying to ship.
What we have in excess overseas to places where they don't have that so there's a lot of capacity, they're looking to be built up.
There are still construction projects and other things that we're looking to get into.
So you would see it.
Maybe not in any one sector, but our growth and data are growth in a stream west Penn aerospace those other sectors.
No issue seeing them continue to grow and we believe in the oil and gas there is still obviously.
Contracts would be one and lost it individuals site, but there's a lot of longer term capital projects that are out there as well.
See continued growth and what we would call our upstream for like the nature.
Looking at.
More wins in Gulf of Mexico, and places like that that are.
That are in our line of sight.
Sometimes customers are taking longer because of their own things their work and we had one we've been waiting for two quarters already.
It's just for whatever reason there.
I'll say anything so there's a lot of that kind of things going on with her work it out their own issues before they make these major changes maybe it's watching their own cause changes I don't know, but there is a lot out there moving it just seems to slow up a little bit this year.
Okay, great well, thank you very much.
Alright, Thanks, Brian .
Alright, thank you so much.
Alright.
I'm showing no further questions at this time I would now like to turn the conference back to Dennis for closing remarks.
Okay. Thank you Brittany I'd.
I'd like to thank everyone for joining a call today and also for your continued interest in Mister Dawson I look forward to providing you with an update on our business in progress achieved towards our ongoing initiatives on our next call.
Everyone. Please have a safe and prosperous day.
Mmm.
This concludes today's conference call. Thank you for participating you may now disconnect.
Mmm.
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