Q3 2023 US Silica Holdings Inc Earnings Call

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Ladies and gentlemen, thank you for standing by U S. Silica is conference call will begin in just a moment.

Once again, please continue to hold U S. Silica is conference will begin momentarily.

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Good morning, and welcome to the U S silica third quarter 2023 earnings conference call. At this time, all participants are in a listen only mode.

<unk> and answer session will follow the formal presentation.

Anyone should require operator assistance during the conference. Please press star zero on your telephone keypad.

As a reminder, this conference is being recorded.

It's now my pleasure to introduce your host Patricia Gill Vice President of Investor Relations and sustainability. Thank you you may begin.

Thank you and good morning, everyone I'd like to thank you for joining us today for U S. Silica third quarter 2023 earnings conference call, leading the call today are Bryan Shinn, our Chief Executive Officer, and Kevin How are you in an executive Vice President Chief Financial Officer, and Chief Accounting Officer.

Before we begin I would like to remind you of our standard cautionary remarks regarding the forward looking nature of some of the statements that will be made today such forward looking statements, which are predictions projections or other statements about future events are based on current expectations and assumptions, which are subject to certain risks and uncertainties.

For a complete discussion of these risks and uncertainties. We encourage you to read the company's press release and our documents filed with the SEC we.

We do not undertake any duty to update any forward looking statements. Additionally, we have provided a supplemental third quarter earnings presentation on our website in the investors section two accompanies todays discussion on today's call. We may refer to non-GAAP measures such as adjusted EBITDA.

Contribution margin net debt and net leverage ratio. Please refer to today's press release, our public filings or the accompanying earnings presentation for a full reconciliation and discussion of adjusted EBITA segment contribution margin net debt and a net leverage ratio I would now like to turn the call over to our CEO Bryan Shinn.

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Thanks, Patricia and good morning, everyone. During the third quarter, we continued to advance our growth strategy, while strengthening our financial foundation, we generated healthy cash flow from operations and adjusted EBITDA driven by strong margins enabled by our lean cost structure.

We also repurchased and extinguished an additional $25 million of debt, improving our balance sheet and debt leverage ratio at.

At the same time, our growth investments continue to position us to capitalize on market opportunities with innovative and differentiated products for our markets and customers.

As part of our overall corporate strategy, we continue to successfully execute the three key elements of our industrials growth plan during the quarter, specifically, increasing the profitability of our base business at a GDP plus right.

Substantially growing existing high margin differentiated ISP products, and expanding our addressable markets with new high value advanced materials, such as ever white pigment.

I will walk you through the recent progress in these areas a bit later in the call.

The corporate news, we recently announced a few changes and additions to our leadership team and.

In August we appointed Jay Morro as our executive Vice President and Chief Operating Officer, Jason Estes, Mike Winkler S. T O O.

Mike has retired but will remain in a consulting role with the company.

I'm excited to welcome Jay to our executive leadership team as he brings extensive industrial markets experienced a reputation for operational excellence and strategic mindset. We look forward to the benefits of his efforts and leadership going forward.

Additionally, we have appointed Kevin how as interim executive Vice President Chief Financial Officer, and Chief Accounting Officer.

Kevin has served as the Companys, Vice President and corporate controller since 2016 and joined the company back in 2011.

Kevin plans to retire in 2024, so a search for a permanent chief financial Officer is underway I am excited to welcome Kevin to his new role and firmly believe that his experience financial skill set and deep knowledge of the company make him ideally suited to serve as our interim CFO.

I'll now turn the call over to Kevin who will discuss our financial results in a bit more detail Kevin.

Thanks, Brian and good morning, everyone as Brian mentioned, we reported healthy cash flow from operations and adjusted EBITDA for the third quarter, driven by strong performance in our oil and gas and higher value product mix and industrials. This was further supported by improved cost structure, despite softer market activity for both segments.

Compared to the prior quarter overall tons sold decreased 8% sequentially to $4 1 million.

Total revenue decreased 10% to $367 million adjust.

Adjusted EBITDA decreased 17% to $102 $1 million in total company contribution margin decreased 14% to $129 $2 million.

Selling general and administrative expenses for the quarter increased 2% sequentially to $29 $3 million driven by slightly higher spending across the category in the quarter.

Depreciation depletion and amortization expense increased 7% sequentially to a total of $35 $8 million in the third quarter due to a nonrecurring adjustment made in the quarter, coupled with lower volumes sold our effective tax rate for the quarter ended September 32023 was 31% including discrete items.

As Brian mentioned in the third quarter, we used excess cash on the balance sheet to extinguish an incremental $25 million of outstanding debt at par.

Since the second quarter of 2022, we have reduced our outstanding term loan balance by 26% or $321 million through repurchases normal principle payments.

The end of the third quarter, our net leverage ratio improved to one four times and remained below our year end target of one five times.

I will now walk you through our operating segment results.

The oil and gas segment reported revenue of $231 $4 million from the third quarter, a decrease of 12% when compared to the sequential second quarter volumes for the oil and gas segment performed slightly better than our previous guidance decreasing by 9% to total $3 1 million tonnes, while sandbox delivered.

Loads decreased 8% compared to the sequential second quarter.

Segment contribution margin decreased 16% compared with the second quarter to $82 $9 million, we're trying to a per ton basis was $26 55. These results were driven by the sequential decline in U S completions activity proppant mix lower pricing and reduced fixed cost absorption.

Our industrial and specialty products segment reported revenues of $135 $5 million, which was a 6% decrease compared to the prior quarter.

Williams for the ISP segment decreased 4% sequentially and totaled 999000 tonnes segment contribution margin decreased 10% on a sequential basis and totaled $46 $3 million, which on a per ton basis was $46 39.

The sequential decrease in the results for the ISP segment was due to reduced volumes for building products <unk> fillers in filtration and glass on a year over year basis contribution margin dollars were flat and contribution margin percentage expanded 11% due to pricing increases and cost improvement initiatives.

Turning to the cash flow statement.

We delivered strong cash flow from operations of $76 $7 million in the third quarter, driven by strong earnings inefficient networking capital.

During Q3, we invested $13 $6 million of capital primarily for facility maintenance cost improvement in ISP growth projects.

As of September 30th 2023, the company's cash and cash equivalents totaled $222 $4 million, a sequential increase of 19%, which includes the impact of the $25 million loan extinguishment, along with associated fees as mentioned earlier.

At quarter end, our $150 million revolver had $0 drawn with $129 $2 million available under the credit facility after allocating for letters of credit.

Looking out to the fourth quarter, the high level of proppant customer contracts in our oil and gas segment, coupled with our sticky and diverse customer base in the industrial and specialty products segment gives us reasonable confidence in our visibility for the remainder of this year. We continue to expect strong operating cash flow generation for the balance of 2023, and we plan to do.

Correct, our free cash flow to fund our growth capital needs. While we continued to reduce our net debt level. Our current net leverage ratio expectation is that it will be below one five times through the remainder of the year.

Regarding capital spending we will continue to be disciplined in our investments and focus on maintaining operating levels our facilities, while pursuing profitable growth.

For full year 2023, we are revising our capital spending forecast to $60 to $65 million as we have accelerated our capital investment for industrial growth projects.

Finally, we are lowering our forecast for the full year 2023, SG&A expense, which is now expected to be down approximately 10% to 15% year over year, reflecting a supplier contract termination and M&A related expenses that took place during the prior year, along with ongoing cost control measures.

The forecast for the full year 2023, depreciation depletion and amortization expense continues to be flat to down five five.

5%, given higher capex spending levels in prior years for assets that have become fully depreciated.

Our estimated effective tax rate for full year 2023 is approximately 26%.

And with that I'll turn the call back over to Brian.

Thanks, Kevin I'll now review some of the trends that we saw during the quarter, starting with our oil and gas segment.

The U S land energy complex experienced sequentially lower drilling and completions activity as expected in Q3.

Our quarterly financial results were strong compared to historical averages, but down sequentially due to lower market demand as guided on our last earnings call.

<unk> remained attractive and was down slightly versus Q2 or.

Our margin stayed strong however, with Q3 contribution margin dollars per ton higher than any quarter of 2022.

To thank and congratulate our oil and gas sales operations and supply chain teams for their outstanding efforts to deliver these results.

And finally, our new patent pending Guardian, Frac fluid filtration system is performing well and gaining momentum in the market.

Customers are experiencing positive outcomes through increased pump uptime and efficiency and decreased repair and maintenance cost.

In our industrial segment volumes were down a bit more on a year over year basis and guided on last quarter's earnings call. While we anticipated the mild economic softness for building products and seasonal order patterns for diatomaceous Earth fillers and filtration a few glass customers also took down production lines for maintenance issues.

After several years of high demand.

Despite these lower activity levels, we benefited from ongoing structural cost reductions improved product mix as well as price increases, which enabled us to maintain flat year over year profitability with a 12% increase in contribution margin per ton.

Our industrial sales operations and supply chain teams as well for their outstanding efforts to deliver these results.

I also want to highlight that during the quarter, our Colorado Diatomaceous Earth mined outside of Reno, Nevada received the Nevada Mining Association top annual mine Safety Award I'm very proud of the Colorado team for their strong performance and commitment to safety excellence.

I will now provide updates on key developments in our industrial portfolio and then finish with a summary of our outlook for the fourth quarter.

During the third quarter, we made significant progress on all three elements of our industrials business strategy. For example, our first element is increasing the profitability of our base business at a GDP plus right.

That in mind, we continue to capture savings from reduced logistics costs improve plant reliability automation cost efficiency projects and lower natural gas prices. We also benefited from recent price increases to help offset higher costs. We will continue to be active on this front for example, we announced price increases effective.

As of January one 2024 of up to 20% for many non crop contract ISP customers earlier this week.

The second element of our ISP strategy is to substantially grow our current high value differentiated products, such as ground silica diatomaceous Earth powders and find fillers and high purity filtration substrate.

Q3 was a very eventful and productive quarter in this area.

During the quarter, we executed five new customer contracts, including two for renewable diesel customers with improved pricing and volume commitments. We also entered into a strategic relationship with a European distribution and services partner for our industrial fine filler products. This will expand business development opportunities in applications such as paints.

Adhesives rubber plastics and building materials.

Due to strong catalyst demand, our diatomaceous Earth powders production facility and Clark, Nevada is now sold out and we're considering investment in additional capacity.

We've also successfully develop new applications for specialized whole grain and ground silica products and building materials further displacing imported not unkind competitive materials.

Our third strategic element in industrials is expanding our addressable markets and applications with sales of new high value advanced materials, such as cristobalite ever white pigment and white armor solar reflective roofing materials.

Sales of <unk> pigment or Tio, two replacement product continued to accelerate with new orders through direct and distribution channels into markets that include plastics grouting.

<unk> and mortars, we continue to receive positive feedback from new customer application testing and we are aggressively marketing our products through trade shows conferences and industry publication.

In addition, our new state of the Art Innovation Center in Rochelle, Illinois is scheduled to open in early December and were already receiving inquiries from customers and distributors about producing products at this site.

Turning now to our business and market outlook, we reaffirm our full year 2023, adjusted EBITDA guidance of an increase of approximately 25% year over year. Our guidance is supported by the strong results reported year to date, the positive visibility of customer contracts across the company and expected additional costs and.

Activity improvements during the remainder of the year.

We continue to anticipate that we'll generate robust operating cash flow of about $265 million. This year with our net leverage ratio remaining below one five times at year end.

Yeah, I really gas segment is attractively positioned to maximize through cycle earnings from recent work that we've done to reduce and variable is our annual fixed cost by over $70 million.

These actions have had the effect of raising our earnings floor in a softer market without sacrificing upside in a peak market.

We are repositioning this segment and improved our contribution margin percent to the mid thirties, and our contribution margin on a per ton basis is holding strong at the mid 20 dollar level per tonne.

For the fourth quarter, we anticipate that volumes will be flat to slightly up sequentially with contribution margin dollars down mid single digits quarter over quarter due to slightly lower pricing.

I'm pleased to report that Q4 has started well with stronger than anticipated October sales as we recently achieved a new daily sales volume record in the Permian Basin.

Overall this business segment remains well positioned to capitalize on the current multiyear energy cycle with expectations for constructive commodity prices and healthy demand for proppant and last mile logistics carrying into 2024.

We're staying disciplined on pricing and continue to have strong contractual commitments for our sand with over 85% of our production capacity committed for this year and we expect to maintain a contracted position of approximately 80% to 85% in 2024.

We also believe that recent domestic energy company M&A could prove positive for U S silica as the industry consolidates further and larger customers choose to work with larger more stable and reliable suppliers like U S silica.

Consolidation could be favorable for the industry long term as well and provide more steady demand for oilfield products and services.

Also operator consolidation should lead to better acreage positions and enable continued beneficial increases in well lateral lengths and well service intensity.

Moving to our industrial and specialty products segment, we are well positioned to achieve meaningful year over year contribution margin growth here in 2023 due to our best in class offerings, and a strong and diverse end markets that we serve.

Moreover, our structural cost reduction price increases and investments and product development are paying dividends in the form of profit margin expansion.

These efforts coupled with customer investments in domestic manufacturing should continue to offset any potential near term market weakness.

For the fourth quarter year over year volumes are forecasted to be down high single digits due to a combination of normal seasonal demand reduction customer facility maintenance and customer year end inventory management. However, we expect contribution margin dollars in industrials to increase 5% to 10% on a year over year basis in Q4.

Due to improved pricing favorable product mix and ongoing improvements in operational and supply chain efficiencies.

And finally, we've received a lot of questions from current and potential investors wanting to know more about our industrial products, including the end markets that we serve of the competitive landscape and our participation in sustainable product value chains.

As a result, we are planning to host an industrial and specialty products showcase. This virtual event will take place in early December. So please stay tuned for more details on that.

So to summarize in the third quarter, we continued to strengthen our balance sheet through incremental debt extinguishment and position the company for growth with strategic capital investments and further cost reductions.

We're committed to securing future cash flow visibility through strong contracts at competitive prices in oil and gas enhanced ISP offerings, and additional cost optimization and efficiency efforts across the enterprise.

These steps can help unlock transformational growth pathways for the company to create value with our improved balance sheet and strong expected operating cash flow.

And with that operator will you. Please open the lines for questions.

Thank you at this time, we'll be conducting a question and answer session. If you'd like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue. You May press star two if you'd like to remove your question from the queue for participants using speaker equipment, it may be necessary to pick up here.

Headset your handset before pressing the star keys.

Our first question comes from the line of Derek <unk> with Barclays. Please proceed with your question.

Hey, good morning.

Just wanted to ask about the fourth quarter guide for oil and gas the volumes flat to slightly up sounds pretty impressive I mean, we've been hearing a lot of commentary around seasonality.

The big pressure pumper, so could you help square that comment from what we're hearing out there just the fleets that are being laid down or maybe some work that's being pushed out to 2024 is it a spot market thing is it customer specific thing basin thing just maybe some more color on that.

Good morning, Derek and thanks for the question.

I think there's a couple of things that are happening.

Started off really strong in October in the oilfield. So it gives us a good feel for how Q4 it might play out I would say, it's generally strong across the board for us in the Permian. We've had several customers are asking for additional volumes and of course, we're highly contracted.

I think that helps out as well, we've got about 85% of our volume here in 2023 under contract.

You and others know so.

This is the customer base, we have a blue chip customers are out there working very hard right now and are asking for more sand. So we're pretty optimistic that.

Q4 will will finish well at at this point at least from our customer base, we're not hearing anything about budget exhaustion or.

Extended holiday downtime or anything like that so we feel pretty good.

Got it I appreciate the color there.

Forget about just thinking about 2024.

Maybe just some more color around contracting and pricing I know in your ear I prepared remarks targeting at $88 to 85% contracted volumes for <unk> 'twenty four I guess, where are you now and then how is that progressing and progressing towards that level and maybe if you can get into some pricing trends would be helpful.

So in terms of contracting I think historically, we've maintained a pretty significant contact contract position in something like 80% to 85% feels like a good number for us and we expect to continue that strategy I think if you look across our portfolio, we have a really diversified number of customer contract.

And each of those contracts is a bit different than the mix taken in total is really tailored to to give us a lot of us stability without giving up tremendous upside either so we feel good about the portfolio I think we'll be in that same range for 2024 right now we've got a.

Approximately 80% of our capacity for 2020 for either contracted or committed we may add a few more contracts. We've had a lot of requests coming in from customers and all of that.

Of that total volume for the year of 70% of it.

Those contracts are take or pay or other similarly, situated contracts. So they're really good really solid contracts I would say in terms of our pricing, we're seeing pricing down a little bit but.

There's been all kinds of wild rumors out there that price pricing is cratered or has collapsed or something where we're seeing a you know a dollar or two here and there obviously things may be a bit softer right now.

And that's driving some of that but we feel really good about the pricing that we're getting for our new contracts and the margins that that will generate.

Got it and just one last thought as far as a contribution margin per ton how should we think about that for 2014, you still feel like you'll be in that mid 20 ish range, what's the good starting point.

So thats certainly our target I feel I feel really good about that.

Variable is a lot of the costs in our business, we've talked about that for the last few quarters and I think you're starting to see that in terms of how our margins are holding up we're in the mid Twenty's right now in spite of a quarter, where there was some pricing pressure.

And certainly volume pressure, but us being able to hold those kind of margins is certainly our objective.

Okay. Thanks for all the color I'll turn it back thanks.

Thanks Derek.

Thank you. Our next question comes from the line of Stephen <unk> with Stifel. Please proceed with your question.

Thanks, Good morning, everybody.

Morning, Stephen Good morning.

A couple for me.

Well I might comment on this or not but that was well liked.

Any comments John.

We get a lot of questions about based as far as financial controls.

Everything.

Strong with comprehensive we think it is but anything you can add just.

Address that.

Sure Stephen and I certainly.

Understand your comment there.

We can't really provide any additional information as we don't talk about employee matters publicly but I would refer everyone to the 8-K that we filed and so if you look at that document we said specifically in there that there is no disagreement or issues with the Companys financial reporting accounting policies procedures estimates judgments et cetera.

So I think you can infer.

By that that there is no no issues of that sort.

Okay. Thank you.

So when we think about the oil and gas business.

Can you just give us a sense for where Guardian Stan.

We're seeing it.

In the numbers yet.

When you say will start to potentially see a more significant impact on place for tomo contribution margin per ton. However, you want some crazy.

So that's not really in the numbers much at this point.

We have some commercial units out and we have a lot of units out under trial.

And I think there's a couple of big end users who are looking at potentially taking this technology across their entire system.

I think we will have some success there and as we look into 2024 I believe we will definitely see some meaningful meaningful bumps there, but just to be realistic. When you think about the offerings. We have though obviously the sand pieces is number one in terms of margins a sandbox is number two and so this would be kind of a third.

Behind sandbox, but I still think it would be something that will be meaningful and it will be able to talk more about that as we hopefully get some contracts inked up here in the coming months regarding.

Thanks, and then just one final one.

Your your sort of current view on.

Supply and demand.

What you what you see as you sort of think about 2024.

So I think we will.

We'll definitely see some additional capacity come online one of our competitors has announced a 5 million tons coming online in <unk>.

We'll see a few more mobile mines come I think one of the interesting dynamics around the supply side, though is that a lot of the new capacity is focused at the Delaware basin and for US specifically, we have most of our operations on the Midland side of the Permian.

And so I believe the capacity that's coming online in 2024 is going to have much less impact on us just because of where our minds are where our customers are located and actually we're seeing some big operators switching their focus for 2024 and beyond more towards the Midlands.

Side of the Permian and again, I think that will be that'll be a positive for us I think demand next year is relatively flat all in just given the.

Appetite of our customers to sign contracts I'm pretty bullish about demand overall, and especially some of the operators who are moving towards the.

The Midland side, that's definitely an advantage for us.

Excellent. Thank you thanks for the color.

Thanks Steven.

Thank you. Our next question comes from the line of John Daniel with Daniel Energy. Please proceed with your question.

Hey, Bryan Thanks for having me.

Good morning, Jonathan.

Might be a dumb question, but can you remind me what your exposure is within oil and gas to Canada and you have much speak to the outlook step made a comment about record volumes expected in Q1. So just your thoughts yes. So we don't we don't sell into Canada, we used to do a little bit there, but we don't do anything to the best of my knowledge in Canada right now.

Okay. So thanks for reminding me I apologize and then.

I think you said something about NIH.

I think I heard it correctly the desire of some of the larger E&P customers in search consolidating to work with larger suppliers and vendors and that makes sense.

I'm just curious.

How does that desire potentially translate into the need for more consolidation with within your space.

So I think it's a very interesting question it could.

Perhaps enable that.

But what we've seen so far is that as I mentioned in prepared remarks.

The bigger the customer.

The bigger supplier they want to deal with and I think there are a lot of other knock on effects of that as well I feel like we'll see service intensity continue to increase.

I think we all know is as consolidation happens in and Theres more contiguous acres out there lateral lengths will increase over time.

All of that is.

I think beneficial for larger sand providers and logistics providers like us because at the end of the day a lot of the smaller guys just can't support the huge Simon for apps that are out there today.

So it may well and necessitate consolidation Johns so we'll see how it hasnt really happened yet, but I think that could be on the horizon at some point at some point here.

Fair enough and I know it has I know it hasnt happened, but I'm curious if you would be willing to answer this question.

Some of the smaller competitors that may have.

Sort of.

Supplied primarily the smaller E&P companies that are victims, if you will of the consolidation.

I would suspect some of them might be nervous and I am curious if any of them have had gentle outreach as two larger players like you have to have discussions.

So we really can't comment on anything specific but sure.

We've talked in the past about us being a potential logical consolidate tour and so you can imagine over the past few years, there's been all kinds of conversations.

But in and amongst some of the smaller players and folks like ourselves I think the challenge is pretty consistently has been finding a point in time, where both buyers and sellers feel like they're getting a fair deal and.

Here, we've had a really strong year in 2024 for a lot of the sand companies and some people are probably a bit too bullish on what their outlook will be sorry, a strong year 'twenty three.

Get too bullish on what the outlook might be in 'twenty. Four. So you can imagine that people still have stars in their eyes in terms of valuation. So I think there has to be some kind of expectation resetting.

And that will just take a bit of time to get into the industry.

That makes sense I, just I wasn't sure if you'd maybe seen in X and acceleration of interest in the last month or two and so it doesn't sound like it.

No not particularly its been an ongoing theme for the industry for the last couple of years as you know yeah, okay, well, thanks for including me.

Thanks, John.

Thank you as a reminder, if you'd like to join the question queue. Please press star one on your telephone keypad. Our next question is a follow up from the line of Stephens Inc.

Please proceed with Stifel. Please proceed with your question.

Thank you so two things I wanted to follow up on one just following up on John's question. When you think about the balance sheet and you've been reducing debt.

We're going to enter into some consolidation.

What level of leverage are you ultimately comfortable with.

So it's a great question and I would sort of distance to separate those two questions. So I think overall, we like the kind of leverage level that we've gotten two right now we're at one four times net.

I think I think that's a good place for us to be.

But think about that on a sort of through the cycle basis.

We feel very comfortable with that level of leverage.

Levering up to do oilfield consolidation it we'd have to really look look hard at that.

I think it's one of the reasons that we haven't seen consolidation yet because companies like us who would be a logical consolidate tour. We don't really have a good currency to do that that being a sort of a blended stock valuation here at U S silica between ISP and our oilfield business.

Our multiple is.

Probably higher than where oilfield multiples are today.

And I'm not sure what kind of credit we'd get even if we did consolidation there.

So theres no theres no good sort of pure play currency out there today that can facilitate the consolidation. So I think that's that's been one of the.

And one of the challenges Stephen in and going out and taking on debt to do consolidation I think is a bit challenging just given the unpredictability of the oilfield.

Great. Thanks.

Follow up to that was simply when you when you look at the landscape.

What you've seen so far.

Is it consolidation more likely in the oil patch or in the ISP business.

Well.

The ISP side, it's a little bit tough because there really aren't a lot of players.

Smaller field I would say just because of the numbers consolidation is probably more likely in the oilfield but.

Valuation expectations have to get to.

A more reasonable place and.

The consolidate tours have to have the right currency I think those of us in the in the services space or perhaps not like that.

And the operator world where.

They have a ton of cash and they can just use that cash to go out.

And do some of these consolidations and they have an appropriately valued share price as well.

We're in a bit of a different different spot there. So it makes it much harder to get something done in terms of consolidation in my opinion.

Okay, great. Thank you for the details.

Thanks Steven.

Thank you, ladies and gentlemen that concludes our question and answer session I will turn the floor back to Mr. Chen for any final comments.

Thanks, operator, as we look to close out this year of record profitability for U S. Silica, we remain confident in our strategy and we believe that our industry, leading business segments market and capital discipline operating cash flow visibility and commitment to further strengthening our balance sheet will deliver substantial value for our.

<unk> and other stakeholders in the coming quarters.

<unk>, which we appreciate you joining our call today and look forward to speaking with all of you again next quarter.

Stay safe and be well.

Thank you. This concludes today's conference call you may disconnect. Your lines at this time. Thank you for your participation.