Q3 2023 Core Molding Technologies Inc Earnings Call
Okay.
Good morning, everyone and welcome to the core molding technologies third quarter fiscal 2023 financial results Conference call.
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I will now turn the call over to Sandy Martin with report Advisors. Please go ahead. Thank.
Thank you and good morning, everyone. We appreciate you joining us for the core molding technologies Conference call to review third quarter results for 2023, joining me on the call today are the company's president and CEO, Dave Duvall, and EVP and CFO John Zimmer.
This call is being webcast and can be accessed through core M. T Dot com via an audio link on the Investor relations events and presentations page.
Today's conference call, including the Q&A session will be recorded please be advised that any time sensitive information may no longer be accurate as of the date of any replay or transcript reading I would also like to remind you that the statements made in today's discussion that are not historical facts, including statements or expectations or future.
That for future financial performance are forward looking statements and are made pursuant to the safe Harbor provisions of the private Securities Litigation Reform Act of 1995 forward looking statements by their nature are uncertain and outside of the company's control actual results may differ materially from those expressed or implied.
Please refer to the earnings press release issued today for our disclosures on forward looking statements. These factors and other risks and uncertainties are described in detail in the company's filings with the Securities and Exchange Commission core molding technologies assumes no obligation to update or revise any forward looking statements.
Publicly management will refer to non-GAAP measures, including adjusted EPS adjusted EBITDA free cash flow and return on capital employed reconciliations to the nearest GAAP measures can be found at the end of our earnings release. Finally, a copy of the press release has also been submitted to the S. E T on.
Form 8-K, and now I would like to turn the call over to Dave to ball Dave.
Thank you Sandy good morning, everyone and thank you for joining our third quarter earnings call. Let me start today's call with a couple of accomplishments during the quarter. A few weeks ago. We received eco bottles bronze award in recognition of our ongoing sustainability achievements.
This award demonstrates our systematic approach to environmental stewardship and is directly supports core value proposition to our customers that are driving to accurately quantify and reduce their scope three greenhouse gas emissions.
We believe this is a visible reminder, over our responsibility to our employees communities and the environment.
We were also one of six finalists in the award for Composites Excellence competition at this year's annual Cam X or composites and advanced material Expo in Atlanta.
The award recognizes the unique proprietary engineering technology, we used to produce one of our customer's personal watercraft dolls.
Demonstrates our ability to combine different composite materials and molded in features to optimize the design for improved performance and cost.
These are important recognitions of core molding strong value proposition through our technical solutions and sustainability efforts that we are continually strengthening in our organization.
As always I want to thank our hard working team of talented people for executing core shared vision for growth and driving improvements in our business every single day.
Our most important competitive advantages our talented team working together and a culture that values transparency learning and openness to challenge. This makes a difference and we continually and purposely drive this culture within our organization.
Our team strives every day to execute the Companys four strategic initiatives, one driving revenue growth two technical solution sales three enhancing profitability and for generating cash flow.
Along those lines I'd like to report that our must win battle to drive significant operational improvements and specific plans will be complete this year, we've achieved a 19% overall productivity improvement by October and will achieve the targeted 20% by year end.
With all facilities operating well it now accelerates our ability to leverage a company wide operational excellence system the scale the knowledge sharing and improvements.
Just to finish up on the strategic importance of the must win battle this year.
It directly improved our gross margins, which were challenged a year ago.
It provided additional capacity in those locations by improving the throughput.
It put all locations at a level performance that allows us to implement a holistic operational excellence process to better leverage our knowledge and.
Four it allowed us to free up key technical resources to better execute and integrate an acquisition in 2024, which is the goal.
Having the necessary technical resources and a common business excellent system will significantly improve our ability to quickly execute and efficiently integrate an acquisition.
I believe this is a clear example of our organizational ability to execute our key strategic initiatives, which in turn creates improved performance across all areas of the organization.
Turning to our third quarter results as we discussed earlier this year, our 2022 third quarter product sales were up over 36% over 2021. So we anticipated that second half 2023 product sales would likely return to historical seasonality and they did.
Although our third quarter product sales of $80 9 million were down 12, 4% from prior year. This does not tell the whole story.
John will add details to this in a moment, but I would like to make some initial comments.
We grew gross margins by 450 basis points to 17, 6% for the third quarter, representing improved gross margins. Despite lower fixed cost leverage. This was one of our key focus areas in 2023.
Believe the this third quarter result proves that our business transformation is enhancing the strength and resiliency of the business.
Our gross margin improvements. This year are the direct result of purposefully executing our strategy.
Although revenue growth has always been important deliverable. We're also laser focused on driving profitability through enhanced margins operational efficiencies and better capacity management, while also winning technical solution sales for the future.
We produce single source told products for our customers on multi year production programs structured to deliver revenues improved margins and the incremental cash flow for several years.
Most of US expected that continually rising interstate work going to affect the demand at some point and we believe we're well prepared to take advantage of it financially operationally and strategically.
Specifically on sales growth, our technical solutions team signed new contracts during the first nine months of this year that will contribute annualized revenue from new and replacement work totaling approximately 50 million.
With planned launches primarily in 2024 through 2026.
These programs are late to new and reoccurring customers and end markets, including building products industrial transportation and power sports full.
Full volume levels for these programs will ramp up over the next several years.
We continue to see a solid pipeline of opportunities similar to the current opportunities we signed this year, which reinforces our long term sales growth potential.
We are excited to tool and launch these programs, especially since they further expand our business into diverse and growing end markets with engineered solutions.
Finally.
Regarding our sustainability efforts, we are currently partnering with a customer to install full re grind and material processing systems to reclaim raw material from our production process at our Matamoros, Mexico plant. This process rolled it reduced both our waste and cost, while providing a value and reduce cost to our customer.
Based on our production plans over the next several years this or claim over 1 million pounds of raw material.
We continue to work with customers to use or increase our store our usage of recycled material or developed recyclable solutions from a conversion away from traditional materials.
We have aligned our strategies to provide technical and unique solutions to customers by deploying our extensive portfolio of processes.
This expertise and capacity are important to our long standing blue chip customers, who rely on us.
As their single source supplier of critical components.
We continue to see how sustainable sustainable solutions build long term relationships and value for our customers employees and shareholders with that I'd now like to turn it over to John to cover the financials in more detail.
Thank you, Dave and good morning, everyone.
As we noted last quarter returned to more historical seasonality impacted the third quarter's topline.
Combining the 36, 5% of product revenue increase from last year with our 12, 4% decline. This year Park revenues are still up approximately 20% from 2021 levels.
Last year, we saw customers rebuilding depleted inventories against higher demand this year their inventory levels or more optimal or in certain industries and overbuilt position and customers are working through those inventories.
<unk> product sales by end market. This quarter include increases in medium and heavy duty trucks, where production levels remained strong while other sectors were down due to the management of inventory levels and macroeconomic impacts.
Our ongoing industry diversification efforts are working as planned as we have taken advantage of changing demand by industry and minimize the impact of any one industry to the company's overall revenue.
Our trailing 12 month adjusted EBITDA for the third quarter totaled $41 8 million another notch higher than last quarter's TTM.
The highest ever in the company's history. This continues to give us further conviction that our intentional focus on operational improvement is in print is progressing and I want to congratulate our team on their hard work this last quarter and this year.
Turning to our financial results third quarter 2023, net sales were $86 $7 million compared to $101 6 million a year ago.
Product sales were down 12, 4% largely based on our discussion around difficult comparisons coupled with a return to more historical seasonality this year.
Gross profit for the third quarter rose to $15 3 million or 17, 6% of sales compared to $13 3 million or 13, 1% of sales in the prior year quarter as Dave mentioned this was a 450 basis point improvement over the prior year.
During the 2023 third quarter material cost and production efficiencies positively positively impacted gross margins, which were offset somewhat by foreign currency and fixed cost leverage.
We continued to see the weaker U S dollar against the peso in the third quarter compared to last year at this time, which has which had a negative impact of 90 basis points on gross margin.
As previously noted we actively hedged a portion of our foreign currency exposure, but overall were still impacted by the stronger Mexican peso.
Yeah.
Selling general and administrative expenses for the quarter were $9 $4 million compared to $8 7 million in the prior year.
The increase was mostly due to a onetime press move costs of $540000 in the third quarter of 2023, as we move to press from our Coburg facility to our Monterey facility in preparation of new business being launched in Monterrey and 2024.
This increase is the size of the Monterrey facility to six presses doubling the number of presses since the acquisition in 2018.
Yeah.
Company reported operating income of $5 $9 million or six 8% of sales up $1 2 million or 220 basis points versus the operating income margin from last year.
Compared to the year ago quarter net interest expense has decreased 63% as this year's focus on operational improvements has generated free cash flows to allow us to eliminate barring.
On our line of credit and to earn interest income on our cash reserves.
Our effective tax rate for the third quarter was 24, 1%, which primarily consist of the way the tax cost from the three tax jurisdictions, where we operate.
Net income was $4 $4 million or <unk> 49 per diluted share versus last year's diluted EPS of <unk> 16 cents.
Excluding the one time pressed move cost this year, excluding our onetime loss from extinguishment of debt last year. Adjusted EPS was <unk> 53 per diluted share. This year up from 35 per diluted share in the year ago quarter.
Adjusted EBITDA for the quarter was $9 $8 million or 11, 3% of sales up 300 basis points from prior year EBITDA margin.
Eight 3%.
We are pleased with our year over year improvements in gross margin operating income EPS and adjusted EBITDA based on our actions and strategic initiatives, our GAAP to non-GAAP reconciliation tables.
Can be found at the end of our press release.
Now turning to results for the nine months ended September 30th.
Net sales were 284 million down two 4% versus a year ago and product sales were essentially flat versus the prior year period.
Gross margin was $53 6 million or 18, 9% of sales compared to $40 9 million or 14, 1% of sales in the year ago period.
For the first nine months margin improvements were primarily due to production efficiencies and favorable net customer pricing and raw material cost.
SG&A expenses were $29 6 million compared to $25 9 million in the prior year period, largely driven by higher labor costs and bonus costs due to the Companys improved performance in 2023.
Operating income for the first nine months was 24 point $24 million up 60% from 2022 levels net income was $18 1 million or $2.08 per diluted share compared to $7 4 million or <unk> 87 per diluted share in the comparable year period.
Adjusted EBITDA was $35 8 million or 12, 6% of sales compared to $25 9 million or eight 9% for the first nine months in the prior year.
Looking forward to the fourth quarter, we are expecting the companys revenues to soften versus the prior year based on recent industrial industry projections, mostly around transportation.
Customer forecasts, which include ongoing inventory rationalization activity.
Impacts from the United Auto workers strikes, which has impacted demand for end products, we produce for GM and Ford as well as the UAW strike at the Mac Division of Volvo Mack, which still has not been resolved.
A return to historical seasonality in the fourth quarter similar to Q3, and finally, the impact of macroeconomic events on our customers' end market demand.
The company currently projects fourth quarter revenues to be down as much as 15% to 20% compared to the year ago quarter.
If we complete the fourth quarter and this range, we went into 2023 fiscal year with revenues down 5% to 10% compared to 2022 levels.
We anticipate that fourth quarter gross margins to be impacted by product mix shifts from seasonal changes in volume and lower fixed cost leverage which.
Which we expect will produce a full year gross margin in the range of range of 17, five to 18, 5% compared to the full year 2022 gross margin of 13, 9%.
Turning now to the Companys financial position, starting with a discussion of cash flow.
The company's cash provided by operating activity was $26 $1 million for the nine months ended September 32023, compared to $8 5 million for the same period of 2022.
Our 2023 focus on operational improvement, which has resulted in higher profitability is also flowed through to our cash flow generation as we expected would occur.
Capital expenditures for the year, so far were $6 $8 million in free cash flows for the first nine months of 2023 were $19 $3 million.
We expect to continue to generate free cash flows for the remainder of the year as operating cash flow should outpaced capital expenditures and working capital continues to be managed carefully.
We now expect 2023 23 capital expenditures in a range of $9 million to $11 million for the year.
At September 30, the company had available liquidity of $68 million, which includes cash and cash equivalents of $18 million and $15 million available under the revolver and capital credit lines.
The company's term debt was $23 3 million at the end of September and our debt to trailing 12 months EBITDA ratio was five six times our.
Our working capital continues to be well managed and netted to $49 million as of the end of September.
Finally, our return on capital employed a pretax return metric was 17, 2% on a trailing 12 month basis, which is above our targeted range of 14% to 16%.
We are pleased with our ability to generate good returns and cash flows while maintaining a strong balance sheet and ample liquidity to fund the business and make strategic decisions.
Our full attention remains on the four strategic growth initiatives initiatives that Dave mentioned earlier and as we've talked about all our goals objectives and targets slowed down from there are.
Our operational performance enhancements are established and we continue to work on continuous improvement initiatives.
As we continue to evaluate acquisitions, we carefully consider how to diversify our customer base augment our processes and footprint and add capacity in a changing economic environment.
Our entire entire team continues to focus on growth and profitability goals that build long term shareholder value and generate cash flows.
With that I would like to turn it back to Dave for some final comments.
Thank you John few comments on our outlook for 2024. Our goal is to continue to focus on revenue diversification in industries that value engineered solutions to continually enhance our margins.
Based on our earlier information for 2024, we anticipate a continuation of macroeconomic headwinds trop cyclicality and the end of life of certain programs could negatively impact revenues compared to 23.
Industry projections for 2024 in the North American class eight truck market, which still makes up approximately half of our revenue.
Forecast, a cyclical correction compared to 2023 with expectations for truck demand to rebound in 2025.
Our diversification efforts have reduced our exposure to the truck market cycles, but with higher interest rates, we anticipate a downward impact on our customers demand it has to at some point.
We expect to adjust our cost structure based on anticipated sales projections consolidate operational improvements and seek attractive acquisitions to continually support our diversified growth goals.
We also want to take full advantage of various industries that require new or better solutions, including opportunities arising from government funded infrastructure projects and government driven sustainability strategies.
We still believe in our long term goals as we provide products and services that have growing long term demand across many industries. We believe there will be increased demand driven by once you're ordering a manufacturing U S infrastructure improvements and overall industry growth over the next several years.
As discussed last quarter, we are finalizing our acquisition strategy timing and M&A pipeline given the size of our company. It is important that we set the appropriate acquisition criteria and carefully analyze valuations against our strategic requirements.
As stated earlier, we have strategically prepared organization for growth by acquisition and we are excited about the time.
We have communicated to investors in the past that we plan to further diversify the industries, we serve add capacity and expand our process offerings through an acquisition, while not over leveraging the company, especially in a challenging macroeconomic environment.
We will also use our capital to continue to invest in our people operational improvements with a focus on increasing automation and technical capabilities in both sales and engineering.
Our must win Battle. This year has been about fixing some known challenges in core sheet molding compound plants to gain immediate margin improvements and more importantly to prepare the organization for the future.
With the systematic improvements in place we can now focus on scaling our operational excellence systems across all locations.
This is a foundational step and increasing current machine and technical resource capacity before investing for the next level of growth.
In summary.
Proving gross margin by 450 basis points recording our highest historical adjusted EBITDA dollar on a TTM basis, and creating an organization that is well positioned for significant growth. We are pleased with our Q3 results and excited for the future.
We believe that by continually investing in our people and relentlessly executing our strategy, we will accelerate our long term value creation.
Finally, we plan to present and host meetings with investors in Dallas on November 15, as part of the southwest ideas conference. Please reach out to us or three part advisors. If you would like a follow up call.
With that I'd like to open the line for questions operator.
Thank you we will now.
I will begin the question and answer session.
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Once again, ladies and gentlemen that stars and wondering if you have a question.
Okay.
And as a reminder to everyone. If you would like to ask a question. Please press Star then one at this time, we will pause momentarily to assemble our roster. Please standby.
And ladies and gentlemen, my first question today comes from to more with F. Hutton. Please go ahead.
Thanks.
That's really helpful commentary when do you think you might know the full impact of the UAW strike things sales.
I mean, it's impressive that you can still maintain your gross margin guidance range for this year, despite that drag but.
Do you think you won't know the full impact of late December.
Yes, Tim I think one of the pieces of that is to recognize that.
We deal in auto, but we also have UAW is actually.
On strike with Mac, which as you know a major division of Volvo, which you know is one of our major customers and so they have not.
Settled their strike at this point and so we're watching that the you know the the stuff that we do in auto has been a I think the the.
The auto guys went back to work there bill.
Kind of ramping back up and we did have some effect of theirs and in October and we think that that will kind of start coming back online now, but Mac has not been settled at this point.
Okay fair enough and talking with them and talking with with Volvo there, they're doing everything they can to <unk>.
Continue producing and driving that board, but right now we know what the roadblock isn't until they resolve the strike it's.
There are at a point now where they don't have engines.
Yeah, just kind of curious I mean, I tried to ask theoretical questions, but if there wasn't a UAW strike.
Do you think you still would've expected flat product sales for this year.
And you're thinking we can recover some of those Mac sales in March quarter.
Yeah again, I think we would hope that a Mac can recover those sales.
Oh in the industry and so we think that the UAW strike in Q3, sorry, Q4, probably have somewhere between 2% and $4 million of sales impact on us. So.
You know again part of that depends on when they actually settle the strike or if Max.
Mac settles the strike in timing, but we kind of estimate it was somewhere between two and $4 million as the impact of the UAW strike.
That's helpful and then John I know you mentioned.
On the August conference call that there was the variable compensation that caused an uptick in SG&A expense I mean, how should we think about SG&A expense as a percentage of sales.
Going forward I know it was running two seven to two 8% the past two quarters, but it's typically nine 5% to 10%.
Yeah, I think if you back out our compensation again this quarter.
We were going to be around $8, five $8 $5 million of SG&A again, this quarter, which is consistent with the other quarters now that does include the $500000 of press.
Press move that's a onetime move to get a press down in Monterrey is that is that.
Watching some new programs next year and so without that we were probably running around $8 million of SG&A costs for the quarter versus $8 5 million for the first two quarters, if you back out our bonus impact.
Long term before you know as we move forward, we continue to look at that we.
We always try to target that around 10% and so if sales are down a little bit we try to.
Recognize that and make adjustments to the SG&A as we go forward, so but right now we're probably running between eight and 8588 and $8 $5 million a quarter is where we're at without bonus.
That's helpful.
My next question is I mean, how far along do you think you are on selling.
Selling price improvement I mean is that those prices fully implemented as of today or are you kind of the sixth inning on that for the company wide.
Yeah, we still have one other contract that we're working on and we'll finalize that this year beginning of next year.
Okay.
Okay. The rest have been pretty much implemented on a rolling basis to past few items. So we've we've been through all the other contracts. This is the last one that we're working on right now one of our large customers.
Great.
Hum.
Two more questions.
Sure Dave.
What would you say you're kind of anything you might be in.
Use the baseball metaphor too long on the operational efficiency improvements I saw you added a new board member appointments.
Looks like Zelle adds some more operational manufacturing experience in Canada and Mexico.
How far along do you think you are on the operational efficiency improvements.
When do you think there'll be done.
Yeah. So it will be done when we talk about the must win battle that was the focus on the three SMC plants really focusing on two of them majority wise that was predicted or forecast a 20% improvement. So we'll have that we're at that now.
So really what we're moving into as a corporate wide.
Continuous improvement and consolidating those so it'll be ongoing, but it's not 20% per year per plan.
That's helpful color.
And then my last question is you mentioned some commentary a little bit about this your opening remarks.
Acquisitions.
Can you just remind US you know is still a capital allocation priority for process equipment and what are you kind of seeing out there do you think youre going to have to probably do acquisitions require five to seven presses or.
Given that there's such a long wait listen that much availability for new branches.
Yeah, Yeah, that's a big point relative to if you're trying to install the cap at capacity from a greenfield site by the time you build the site and order all the equipment, you're talking about a multiple year endeavor. So really what we're looking at is I guess I would call bolt on or tuck in acquisitions anywhere up to say $30 million to $40 million and it's really about.
<unk> what sales channels can we get similar to what we did with the previous acquisitions. Because then we're able to also cross sell and sell.
So multiple composites into that customer through our other processes and products.
Great that was very helpful. Thanks, a lot, Dave and John and I'll hand, it back over to the operator.
Thanks, Tim.
Thank you and our next question comes from Jeff Gordon with Global value Investment Corp. Please go ahead.
Thank you good morning, guys. Appreciate your time here.
Hey, Jeff Hey, Jeff.
So as well.
I'm curious what type of visibility do you have into your customers' inventory levels.
I don't know that we would say we have a direct.
Visibility, we don't have a data sets that go directly into them and so a lot of it is demand feedback that were getting they do provide us E. D. I data out into the future I think we've talked about that before 80 di as you get out past a month gets a little bit it can change its not guaranteed one way or the other and so.
What we do know is that some customers. During this quarter have come to US and said, we got ahead of ourselves and so we aren't taking as much product at least in this quarter.
And maybe a little bit into the first quarter next year.
Now again, what we stay close to them is as you know we're hoping that the nice thing is is that this is a short term issue for them they'll get through that inventory and they'll start taken sales again.
And so it's a period of time that will work itself out it's not the sales have gone away. It's just really a correction.
For a period of time.
So we'll work with them and hopefully they'll get through this and then you'll be back on with those.
First quarter next year sometime in the first quarter next year and going into the second.
Yeah, It's a good point when you see it it's on the especially when you start looking at industrial and utilities, because you have such a long supply chain between inventory at our location inventory at the job sites and inventory at their warehouses. So I think at the end of the year. They had looked at what their inventory levels throughout that supply chain and Ed.
Made a correction, but the business is still there I think it's more a matter of Oh, adjusting as our inventories at the end of year.
Alright appreciate it you've talked repeatedly about reducing your exposure to truck I think the last time, you reported out that might have been 44% of revs.
Where is that today and what do you expect that trend to look like on a forward basis.
Yeah, it'll continue I mean, it's part of the strategy.
It'll vary between <unk> 44 up to say, 54% depending on the sales that we see any other channels.
Especially when you start seeing personal watercraft, the beginning of the year that picks up at the beginning of the year and trails off at the end of the year, saying with the building products.
And I think Jeff one of the pieces of that is our long term strategy and truck was never to get out it was to do just profitable business.
I think as we came out of the turnaround we realized that we had added on business that we just couldn't get to profitability and we really think we've fixed.
The majority of that Dave mentioned, we have one contract we are still working on it gets a little bit of additional pricing hopefully that we're actively working on right now.
So long term, where we are as truck as you know we're bidding on new programs with truck. It's just we're we got a different mindset than we did probably five years ago, we're looking to do profitable business with contracts that.
Our one sided that we really think are good for both business partners and so I think our truck business is truly just has changed strategy versus.
US totally getting out as a change in strategy that we'll only do stuff that we think we can make good money on.
Thank you.
With your Q4 guide of revenues down 15 to 20, and John I thought you said your fiscal year.
At that point down roughly five to 10, you anticipated maintaining your gross margin in the 17, 5% to 18 and a half range what does that imply for your gross margin in Q4.
I mean, I think if you do the math it probably puts us at a gross margin of 13%, 14% 13, five to 14, 5%.
And then a little bit that's just going to be you know the leverage we are starting to reduce our we've always talked about.
What we can do as our variable cost is somewhere between 60% to 70% of our cost structure and so we are able to reduce.
Reduced material price and material cost very quickly our direct labor comes next and we've been moving very quickly on some of that are you taking some time off at the plants, where they take a week down those types of things. So we can reduce that cost.
But the one piece that takes a little bit more of a long term and really we wouldn't reduce unless we think we got a long long term problem is.
Is the fixed cost and we will adjust that very significantly because we really think long term. The company is going to continue to grow and we don't want to get.
Have to adjust.
Where we have a real good seasoned workforce and so.
Yeah, probably lost leverage in Q4 is more the issue than anything else. That's certainly there.
Certainly.
The margin in Q4.
And last question when do you anticipate providing guidance for 2024 or beyond.
Yes, so the 'twenty 'twenty four.
We're still getting a lot of data and I think it you know at the time, we released the Yo.
Or not first quarter, but our year end results, which would be early March we would have it if there was anything significant that reward it before that we would definitely come back out and do a discussion in between but yeah, where we are right. Now is we have a lot of customers telling us that they have.
So.
Yeah. They are watching the economy as much as US you know I got Polaris is a which is one of our major customers.
That right in front of me and they came out and said they're watching the retail demand situation going on in United States right. Now are in North America. So I think we will have better data by the time, we do the 10-K the earnings release that you're in.
Around March but if again, if there was something major between now and then we would definitely come out until you guys.
Okay. I appreciate that I have to say you've done exactly what you've said you intended to do with your four pillars.
Execution has been excellent and I look forward to seeing what you do when you begin.
Make some acquisitions. So thanks for the commentary today I thought it was very good and good luck as you go forward.
Thanks, Jeff.
Thank you and ladies and gentlemen, that's all the time, we have for question and answer session today I'd like to turn the conference back over to the management team for any final remarks.
Okay.
No. Thank you for joining our conference call and we look forward to.
The next call in March.
Thank you.
Thank you Sir This concludes today's conference call. We thank you all for attending today's presentation. You may now disconnect your lines and have a wonderful day.