Q3 2023 Huntington Ingalls Industries Inc Earnings Call
<unk> get into the results I would like to thank our H I employees at all three divisions for their dedication innovation and customer focus.
Let's turn to our results on page three of the presentation topline growth increased seven 2% from the third quarter of 2022, resulting in a record third quarter revenue of $2 8 billion.
Diluted earnings per share was $3 70 for the quarter up from $3 44 in the third quarter of 2022.
New contract awards during the quarter were $5 4 billion, which resulted in backlog of approximately 49 billion at the end of the quarter of which $27 billion is currently funded.
Shifting to an update on our shipbuilding milestones in the third quarter at Ingalls, We launched amphibious assault ship LH AA Bougainville and laid the keel for early J nine falusia.
Also we successfully completed acceptance trials for NSC 10, Calhoun and delivered her last month.
In addition, we successfully launched and Christen the flight III Arleigh Burke class destroyer DDG 128, Ted Stevens.
Finally, Elpida 29, Richard <unk> Junior is expected to complete acceptance trials and deliver in the fourth quarter of this year.
Ingalls contract awards. This quarter included a $155 million contract for the modernization of USF Zoom Mall, DDG 1000, and a significant award of seven of 10 flight III Arleigh Burke class destroyers, and FY2023 DDG multiyear procurement competition.
At Newport News, we continue to make progress on the Virginia class attack submarines as we laid the keel of Oklahoma SSN 802, and we reached pressure hull complete on Arkansas SSN 800, we.
We expect to float off SSN 798, Massachusetts, and deliver SSN 786, New Jersey before the end of the year.
We also continue to make progress on nuclear powered aircraft carrier construction <unk> 79, Kennedy is focused on compartment completion and the test program, having turned over more than 70% of the ship compartments to the Navy and lighting off combat systems for integrated testing Cvs.
<unk> enterprise is progressing well and is approximately 25% complete.
The cost for the combined by a CDN, 80% 81 has benefited from the bundling and early procurement of the majority of the material.
So much though that over 70% of the material for <unk> and 81 has already been placed on order generating significant savings over the traditional approach to ordering.
However, due to major component delays from the supply chain, driven primarily from Covid and the labor and supply chain effects subsequent to COVID-19.
Delivery of Cvs and <unk> is forecasted to be approximately 12 months late.
To mitigate the delay hei has worked with the navy to employ innovative build techniques, which minimized the impact of CVA and 81.
Emission technologies, we saw the third straight quarter of record revenue with sales of 685 million, 15% over the third quarter of 2022 and.
In addition to strong sales growth mission technologies also won several major strategic competitions in the quarter and now has posted over $5 billion and potential total contract value bookings year to date.
These awards resulted in a third quarter backlog book to Bill of two four and a year to date backlog book to Bill of one two.
Significant wins in the quarter included the $1 4 billion joint network Engineering and emerging operations task order the $347 million contract for the Navy's Lionfish, SUV program and $244 million task order to integrate Minotaur software products into maritime platforms for the <unk>.
<unk> Marine Corps and Coast Guard.
Shifting to activities in Washington, the Federal government began the new fiscal year under a continuing resolution, which funds government operations through November 17.
While we applaud the Congress for including an anomaly in the CR that will allow us to deviate from typical restrictions and obligate funding to begin construction of the second Columbia class nuclear submarine, we look forward to Congress proceeding as expeditiously as possible on appropriations bills.
We also look forward to Congress completing their work on the fiscal year 2020 for National Defense Authorization Act with their respective bills of the house and the Senate, reflecting strong support for shipbuilding and other national security priorities.
Final outcomes will depend on eventual respective conference negotiations between the appropriations and authorization committees. We are encouraged by the support of our programs. Thus far in the four committees of jurisdiction during the fiscal year 2020 for budget cycle.
Now turning to labor, we have hired nearly 5400 craft personnel year to date through the third quarter, which puts US 8% ahead of our full year plan of approximately 5000.
We have work to do to improve our retention rate and the shipbuilding teams are laser focused on addressing this challenge retention in attendance and the acceleration of workforce development will remain consistent focus areas for us going forward.
In summary, this was a very strong quarter, demonstrating continued focus and progress on our strategy of executing against our backlog and driving growth ambition technologies, we remain committed to continuing to create value for all of our stakeholders our employees customers shareholders.
<unk> suppliers and communities.
And now I will turn the call over to Tom for some remarks on our financial results Tom.
Thanks, Chris and good morning today, I'll briefly review, our third quarter results for more detail on the segment results. Please refer to the earnings release issued this morning and posted to our website.
Beginning with our consolidated results on slide six of the presentation, our third quarter revenues of $2 8 billion increased approximately seven 2% compared to the same period last year and represents a record third quarter results for HII.
This increase in revenue was largely attributable to growth at mission technologies and Ingalls shipbuilding.
Operating income for the quarter of $172 million increased by 41 million or 31% from the third quarter of 2022 and operating margin of six 1% compares to operating margin of 5% in the same period last year.
The increase in operating income was primarily due to higher segment operating income a more favorable operating fast cash adjustment and more favorable non current state income taxes compared to the prior year period.
Net earnings in the quarter were $148 million compared to $138 million in the third quarter of 2022.
Diluted earnings per share in the quarter was $3 70.
Compared to $3 44 in the third quarter of the previous year.
Moving onto slide seven Ingalls revenues of $711 million in the quarter increased to $88 million or about 14% from the same period last year, driven primarily by higher volumes on amphibious assault ships and surface combatants.
Ingalls operating income of $73 million and operating margin of 10, 3% in the quarter increased from last year, primarily due to higher volumes I mentioned earlier and favorable changes in contract estimates compared to the prior year.
At Newport News revenues of $1 $45 billion increased $8 million or 1% from the same period last year.
<unk> operating income for Q3 was $90 million, a decrease of $12 million compared to the third quarter of last year.
Operating income was lower due to contract incentives earned in the Columbia class program in the third quarter of 2022.
Partially offset by improved performance on the Virginia class submarine program.
Shipbuilding operating margin in the third quarter was seven 5% slightly ahead of the outlook, we had provided for the quarter.
Our shipbuilding operating margin outlook for the full year remains unchanged and as we have previously noted our expected shipbuilding milestones for 2023 are concentrated largely in the fourth quarter.
At mission technologies revenues of $685 million increased $90 million or about 15% compared to the third quarter of 2022, primarily due to higher volumes and mission based solutions, driven by our <unk>, ISR and cyber and electronic warfare and space programs emission technologies operating income of $24 million.
<unk> operating income of $14 million in the third quarter of last year.
The increase in operating income was driven primarily by the higher volumes I, just mentioned as well as improved performance in unmanned systems.
Current results for emission technologies included approximately 27 million of amortization of purchased intangible assets mission.
<unk> Technologies' EBIT margin in the third quarter was eight 2%.
Turning to slide eight cash from operations was $335 million in the quarter net capital expenditures were $42 million or one 5% of revenues free cash flow in the quarter was $293 million.
This compares to cash used in operations of $19 million net capital expenditures of $77 million or two 9% of revenues and free cash flow of negative $96 million in the third quarter of 2022.
Cash contributions to our pension and other post retirement benefit plans for $11 million in the quarter.
During the third quarter, we paid dividends of $1 24 per share or $50 million in aggregate.
We also repurchased approximately 100000 shares during the quarter at an aggregate cost of approximately $21 million.
Year to date through the third quarter, we have repurchased approximately 176000 shares at an aggregate cost of approximately $37 million.
Moving on to slide nine I'd like to provide an update on our pension sensitivities for 2024.
Our forecast in early 2023 assumed asset returns of 8% and a discount rate of approximately five 5%.
Through the end of the third quarter discount rates have increased approximately 60 basis points and our year to date asset return is roughly four 6%.
Pension related numbers are subject to year end performance and measurement criteria, we will provide a multiyear update our pension estimates on our fourth quarter earnings call in February.
Also I would like to highlight that our pension funded status remains strong and has improved year to date.
Additionally, I will note that the cash flow impacts related to pension changes remained minimal.
Moving on to slide 10, given the strong third quarter free cash flow, we are increasing our 2023 free cash flow guidance to approximately $500 million, an increase of $75 million from the prior midpoint guidance.
This increase was primarily driven by the conclusion of the negotiations regarding the repayment of <unk> advances as well as positive cash flow contributions for emission technologies. We continue to expect approximately $1 2 billion of free cash flow over the two year period of 2023 and 2024.
I'll highlight that we continue to expect to distribute substantially all free cash flow to shareholders through 2024 after planned debt repayment, which is currently on track.
Turning to slide 11 in addition to increasing our fiscal year 'twenty three free cash flow guidance, we are increasing our revenue guidance for both shipbuilding admission technologies.
Given the strong third quarter revenues across all three divisions, we are increasing the midpoint of shipbuilding revenue guidance by revising a range from eight 4% to $8 6 billion to a range of eight 5% to $8 6 billion and increasing emission technologies revenue guidance from approximately $2 5 billion to approximately $2 55 billion.
Yeah.
This is an increase to the midpoint of shipbuilding revenue guidance of $50 million and an increased emission technologies revenue guidance of $50 million.
Additionally, we are reaffirming our shipbuilding emission technologies margin guidance to.
To summarize we delivered strong revenue growth in the third quarter and finished slightly ahead of our margin expectations for the quarter. We also delivered strong free cash flow.
Mission technologies had an impressive third quarter backlog book to Bill of two four and year to date has the potential total contract value awards of over $5 billion. In addition to a robust opportunity pipeline of $70 billion.
Looking to the end of the year. We are pleased to raise 2023 revenue and free cash flow guidance and reaffirm margin guidance as we continue to execute the milestones and commitments that we've laid out with that I'll turn the call back over to Christie to manage Q&A.
Thanks, Tom as a reminder to everyone on the call. Please limit yourself to one initial question and one follow up so we can get as many people through the queue as possible operator, I will turn it over to you to manage the Q&A.
Thank you Christie as a reminder, if you'd like to ask a question. Please press star followed by one on your telephone keypad.
Our first question today comes from Scott tissue from Deutsche Bank. Your line is now open. Please go ahead.
Hey, good morning.
Good morning, Scott.
Chris what's the financial impact from the delay on <unk> I think you said it was 12 months.
What's that delay known when you close the books on crude for the quarter approximately 12 months.
Been holding that risk for a while when our financial so there's no financial impact.
Related to it that impacts driven by.
Some issues in the supply chain of some major equipment in the bottom of the ship.
But no financial impact related to it and the team's doing.
Doing their best to mitigate the impact you know the good news on that is we do have some EPA protection, which.
<unk> mitigates it.
A bit.
But the team is focused on it and they're going to.
Do their best to mitigate the impact going forward.
Okay, that's great and then.
One thing that's been maybe the confusing to investors trying to understand the impacts.
Huntington or the read through when your partner books negative EAC on block five Virginia class boats due to supplier costs can you just maybe level set us on.
How we should interpret that and I realize you're booking rates are probably lower in there. So it doesn't necessarily mean, you need to book negative EAC, but does it have any impact to your longer term margin trajectory on block five.
Yes, so we evaluate.
She is on all of our programs on a quarterly basis and take appropriate adjustments up or down as we see fit I continue to believe that there is opportunity in block five as we transition out of the blocks, where both in getting them into the block five we should have some upside but I.
I wouldn't comment on.
On our partners.
Counting, but I'm very comfortable with where we're at.
Okay, great. Thank you so much.
Sure.
Thank you. Our next question today comes from David Johnson Botany, David Your line is open. Please proceed with your question.
Hi, Good morning. This is actually Josh <unk> on for David I wanted to ask about the outlook for shipbuilding margins in 2024, if you see any improvement now what some of the drivers might be.
<unk>.
Yes.
I fully expect incremental improvement in shipbuilding margins as we move forward. It's all about transitioning out of the block four boats in Newport news into block five.
Continuing to improve in Newport news so.
The story, Hasnt really changed quarter to quarter.
New Port news continues to stabilize.
Labor is good hiring is good we still need to work on retention.
But I'm comfortable with where we're at.
Okay. Thank you.
Sure.
Thank you very much. Our next question comes from Doug Harned from Bernstein. Your line is now Anthony. Please go ahead.
Good morning, Thank you.
Alright.
On your margins.
News.
You talked about you met your goal of seven 4% for the quarter, but when you look at the margin improve.
Improvement you're going to have to have in Q4 can you walk through.
What has to happen there because.
Youre going to have to get a lot of upside in margins in Q4 to meet your guidance it looks like.
Hey, Doug it's Tom here, so, yes, we have been.
Consistent throughout the year here.
Check building milestone from the back half of the year, specifically for Newport News. They have two large milestones here on the 786 deliver.
Delivery and then the 788 falloff.
It's going to be a driver on the back half of the program and there's a lot of focus on that Chris talked about the hiring.
The attrition that were down in the extra training.
The operating system that we've added down there I think as co. It becomes further and further in the rearview mirror against the portfolio of contracts that we have right there.
Attunity sets are bound.
Let me finish off the ships that were impacting the stock mix shifts, although we saw some up at a low level.
Lower level.
That incremental margin improvement story exists, especially at Newport News, but specifically just on Q4 I think for the last 13 weeks of the year. It's continued performance on the ships that we have here and kind of hitting the milestones I just described.
And that we are getting progress and watching.
The hedge we have on the programs and keeping the rework in check.
To support to support that.
Absolutely 796 needs to get delivered.
<unk> is essentially complete which need to get through trials.
<unk> hundred 98 needs to float off and then 29.
<unk> needs to continue to complete their test program and get get through their trial effort. So it's going to it's going to be a race to the completion on 29, but.
We're fine with where we are now.
And then when you look at the submarines and Columbia class, becoming more more and more important.
What is the could you describe what the mix is right now in your work between Columbia Class versus Virginia class and how you think of Columbia class as it grows.
Affecting margins overtime.
Yeah.
Well Columbia class as you know, we only build 22% to 23%.
Of that both the barrels on the Stearns it'll grow.
And importance at Newport News and provide a good source of growth but.
How we perform on the Vcs program is going to really dictate how Newport news does in the long run.
The Columbia class is important work, it's high priority work, but it really won't dictate margin performance going forward of Newport News.
Okay very good thank you.
Thank you.
Thank you Doug next question comes from Ron Epstein from Bank of America. Ron Your line is Nathan. Please go ahead.
Hey, Good morning. This is Jordan light is on for Ron would.
Good morning, if you're able to give more color. Good morning would you guys give more color on the retention rates are where they are now and also to follow the new hires that you have when you expect them to reach optimal efficiency.
Yes, so we don't we don't.
Provide our retention rates were meeting or actually beating our hiring forecast for the year. So we feel good with.
Where we are there.
What was your second question again I'm sorry.
How long for the new hires.
Yes.
Working yes.
Yes, so we talked about three to five years, you know the interesting stuff.
Interesting things, we have going on in Newport News is digital shipbuilding, which we think will increase the time to talent, but we generally think three to five years and we can accelerate that with some of our digital digital tools.
Got it Okay and then one other question too for the office funding the $3 billion and then also.
Other supplemental from the White house for $3 billion for you guys seeing the flow through or do you expect that.
And can you size it.
Yes, we absolutely.
I expect that eventually to flow through.
August is very important to us we actually.
I see that as an opening of markets right. It's an opening of markets in the U K.
And Australia, we think in the short term here, it's really not material financially, but funds could flow next year in important areas like workforce development supply chain assessment infrastructure support we're following the Navy's lead on this they absolutely are being very methodical in how they think through this.
We're standing ready to support them and look forward to but it really from a topline standpoint, it's more of a medium to long term opportunity.
But we need to make sure that we're taking the steps now to ensure that we're prepared for it.
Great. Thank you guys so much.
Sure.
Thank you. Our next question comes from George Shapiro from Shapiro Research. Your line is open. Please go ahead.
Yes.
Good morning.
Good morning.
Chris I guess you increased your free cash flow for this year, but reduced it for next year. So what was the timing that really caused that to occur because obviously you left the two year number the same.
Yes, I was just.
It's just timing George as you know from time to time.
Where.
You did receive slowing in sooner than you expect the team's working very hard on working capital, it's a focus for us.
But I'll, let Tom go into specifics, yes, so specifically here on 2023, what we've seen some good performance on emission technologies, both top line and the cash collections and how they are performing.
And the MBS.
Positive.
Also just kind of hitting our milestones right now.
As to the free cash flow at the end of the year as well as we've come through the Covid repay with our customer set we've worked ourselves too.
Strategy in an algorithm how that's how that applies to the contract and that was a couple of Alexander Tusa that's the.
Our confidence in the lift that we went from the midpoint of $4 25 to 500 finish here as I've been pretty consistent on a five year target the guiding light from midyear. This year through the end of next year is $1 $2 billion. So we've.
Fisher up <unk> 75, a piece of that.
The retention is with the Colgate So that was just timing any way between 23 and 24.
We noticed between five and 700 next year down from 780, it's still the $1 $2 billion. I think this tailwind is against that as we finish out this year and opportunity sets kind of going forward, but we didn't want to get ahead of ourselves. So we maintain the $1 2 billion dollar target here.
Okay, Okay, and just and just to follow up.
And the margins in the fourth quarter that Doug.
I asked about specifically it looks like the fourth quarter has got to be about nine 2% just to get to the low end of your guide now given the.
Milestones in the fourth quarter I would assume the biggest jump in the fourth quarter from normal is going to be at Newport News.
I think the three remaining milestones are all important for us to kind of get into the range and.
Washington, much Chris said, there's a pathway on each of the three here 796 is ready to go I think we're just waiting for the transfer transfer that ship 798 should float off before the end of the year and <unk> 29, as we've been saying since the beginning of the year. Then it's just a race to our lineup. The final tasks the shift to C. N serve approving the ship and then.
Receipt of that so whether that happens in December at the end of December at the beginning of next year.
Those three are pretty significant milestones as they play out I think I'll follow up here I think opportunity sets are and then maybe a little EPA adjustment as we have seen great tie and then just.
Assistant performance, we've seen we've seen some settling our performance over the last couple of quarters. So I think that will play out 'twenty threes opposite on 'twenty two when we started off really hot and heavy in the first couple of quarters, but this isn't a surprise for us that Q4 was going to be a big quarter for us and I think we are in the lane right now to kind of we're reaffirming our guidance there on profitable.
Shipbuilding train seven 7%.
Okay. Thank you very much sir.
Thanks George.
Thank you George our next question today comes from Seth Sigman from J P. Morgan. Your line is open. Please go ahead.
Okay.
Thanks, very much good morning.
So I saw that you guys good morning.
You guys increased the revenue guide for Shipbuilding and I Wonder if you could talk maybe a little bit more over time about the the opportunity for growth at Ingalls.
With.
Especially with the latest.
Multi years on the DDG.
How does that growth profile kind of looks now maybe versus.
Several months ago and.
To the extent to which that could maybe be.
Helpful for the margin mix.
Yes. This is Chris.
I'll start and then Tom can complete if we need to here, but.
The award of the DDG 51 really solidifies.
Ingalls base for the next few years.
Creates a very.
Stable business.
At Ingalls.
We don't give growth rates by division, but.
But what we're seeing is a bit of an inflection point.
From a topline standpoint, both in shipbuilding admission technologies I don't want to get in front of it we'll wait till the end of the year before we can communicate that but.
Well I think we're in a pretty good place.
Growth is shown up in shipbuilding, it's driven by the supply chain and stabilization of the labor and then mission technology is just win and stuff there.
Converting their converting the recompete they're converting.
New business all end markets.
That we think are very strong.
So yes, it's a bit of an inflection point, we're going to talk a lot more about that.
After we get to the end of the year, because we want to close the year strong.
But we feel pretty positive about growth going forward.
Thanks, Good luck on that too.
I'll hop on the back of that so I'm pretty happy with what I'm seeing down at Ingalls.
We delivered NSC 10, so that's one more ship set there we've talked about how that portfolio can sustain itself and still get 3% three plus percent potentially thanks, Greg that way.
The three major programs down there.
Seen that with the <unk> to 72 days on contract and now most recently in the August timeframe that received seven more there. So they know what they are building for them.
Over the next <unk>.
Decade, they can line that up from a planning and labor resource and materials perspective, and thats going to really help them drive consistent performance and production down there also on top of that we've seen a maturation of the 1000 program. The DDG 1000 program. So we've put.
First off this too on contract we put the first monetization on contract earlier. This year all three of those ships will be down there over the next two to three years going through an 11 to 12 month monetization process and Thats a good base for them.
<unk> employs the workforce that too so.
I see.
Good healthiness, even with the NSC program Sunsetting angle.
Ingalls.
The 3% guidance that we've had through 2023.
And going forward.
Excellent okay. Thanks, very much I'll stick to one this morning.
Okay.
As a reminder, if you'd like to ask a question. Please press star followed by one on kind of thing.
The keypad you bet Seth.
Our next question today comes from Myles Walton from Wolfe Research.
Your line is open. Please go ahead.
Good morning, this is actually Emily on for Myles Hi, everyone.
Hi, there.
Another shipbuilding margin question. So thanks for some additional color on 2024, but I was wondering are you all able to do any leveling of the quarterly cadence for 2004 at this point is there a skew towards.
Either half of the year or quarter to quarter any color on that would be great.
Yes, so I think it's just a little premature obviously, we have some tentative plans right now we work ourselves through the final planning process for 2004 and on at the end of this year and we bring that to our.
<unk> management and board here.
Once we get that kind of solidified I really like to take a look see at the actual at the end of the year, we've talked about those milestones, which we anticipate to hit in Q4, but they just could trickle into Q1.
That doesn't change the shape I wouldn't want to get ahead of myself, but we still maintain the same thesis here of expectation of incremental margin improvement.
I mentioned earlier with Covid getting further behind us and us putting the energy into hiring extra training retention the material. It seems like it's stabilized it's not where we want it to be but we have to get that approved the maturation of the workforce anticipation of less rework the rollover of the portfolio.
Existing shifts that have increased the CS and schedule extensions and there's a lot of positiveness kind of going into the follow on years here and I would anticipate that to grow for shipbuilding on emission technology side, we've talked about still scaling that business. We've seen some fantastic growth that's going on on the topline.
We have some work to go do and how we get our margins higher there.
More on the fixed price instead of just having.
About 85% and cost side, additional technology, which should be able to have us employ IP technology more a little bit more products and services that should be able to put a premium on what.
And what we achieved there so I.
I would expect.
Improvement in the margin and at the Q4 call in February we will give you the shape of next year.
Sounds good Tom and then one quick follow up so on the maintenance side, that's something that.
<unk> sort of been talking about for a long time have you been getting any more visibility from the navy customer about timelines.
For maintenance.
Pretty well that the carrier cycle, but anything on the submarine side I know there was sometimes pop up and it's a good surprise, but it's hard to plan specifically and then also on the surface side.
Yes so.
Emily This is Chris.
We don't expect real surprise pop ups from a maintenance standpoint, we expect fairly consistent.
Revenue.
From a maintenance at Newport News.
At Ingalls, we will be opportunistic if we see see stuff that we could potentially participate in but right now it's not in our forecast other than the work we're doing on DDG 1000, which is really not maintenance. It's it's upgrades.
Great. Thanks, Greg.
Sure.
Thank you our last question today comes from Gautam Khanna from DB.
TD Kevin Gordon Your line is now open. Please go ahead.
Hey, good morning, guys.
Good morning Gautam.
Okay.
Question.
On the LPT 29, I'm just curious your confidence level on that getting delivered this quarter or is it very late in the quarter kind of skew.
And just how are you.
If you could give us some framework on what the EAC sensor.
Sensitivity is to that.
In the fourth quarter.
Yes so.
Scott on the it'll be a race to the finish on 29, we need to get through the final trials get.
Good answer then get it approved and delivered.
There is a sense of some sensitivity obviously as we come through the final.
Throws on that ship.
From an EAC standpoint, and then a lot will depend on how much work remains subsequent to delivery.
I don't have a specific range for you.
But we tend to as you know we tend to risk adjust our opportunities as we flow towards the end of the year and <unk> 29 as is right in the middle of that risk profile.
Got you. Okay. So would you argue that the implied shipbuilding range for Q4 pounds.
Bounds of that risk.
Because it is a pretty wide margin range, obviously that's implied.
Yes, I don't want to I don't want to comment on that Theres a lot of variables that go into that that range got MLP 29 is one of those variables.
Okay.
And just wanted to get your sense on <unk>.
Even all the labor.
Challenges that you guys have.
Just to add on over the last couple of years, what is kind of an appropriate.
Margin increase rate in shipbuilding next year like what would be a good scenario or a realistic scenario.
I mean are we talking like 10 to 20 basis points are we talking.
More significant step up.
Next year in shipbuilding.
Yes, so we're not going to give specifics on improvement in 'twenty 'twenty, four and we'll give that on our year end call.
But I do continue to expect improvement I, just think it's a bit premature we let's get through the end of the year see how we close close strong and then we will give you information on the year end call.
Alright, Thank you very much guys I appreciate it.
Sure. Thanks, Scott.
Thank you there are nice to have the questions. At this time I'd now like to hand, the call back to Mr. Cashman for any closing remarks.
Sure. Thanks for joining us on the call before we wrap up I'd like to note that we will be hosting an investor day on March 20th 20th in New York, So be on the lookout for more information. Thanks again for your interest in HII and joining us on today's call.
That concludes today's conference call everybody. Thank you very much for joining you may now disconnect. Your lines have a great rest of day.
[music].
This call.
That concludes today's conference call.