Q4 2023 Douglas Dynamics Inc Earnings Call
Operator: The Ultimate Parody Site! Hello and welcome to the Douglas Dynamics fourth quarter 2023 earnings conference call. All participants will be in listen-only mode.
Hello, and welcome to the Douglas dynamics fourth quarter 2023 earnings Conference call.
All participants will be in listen only mode should you need assistance. Please signal a conference specialist by pressing the star key followed by zero.
Operator: Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press the star key, then one, on your telephone keypad.
After todays presentation, there will be an opportunity to ask questions.
To ask a question you May press Star then one on your telephone keypad and till the draw from the question queue. Please press Star then two.
Nathan Elwell: And to withdraw from the question queue, please press star, then two. I would now like to hand the call to Nathan Elwell, Vice President of IR. Please go ahead.
I would now like to hand, the call to Nathan Elwell, Vice President of IR. Please go ahead.
Thank you Jay welcome everyone and thank you for joining us on today's call.
Nathan Elwell: Thank you, MJ. Welcome, everyone, and thank you for joining us on today's call. Before we begin, I would like to remind you that some of the comments that will be made during this conference call, including answers to your questions, will constitute forward-looking statements. These forward-looking statements are subject to risks that could cause actual results to be materially different... Those risks include, among others, matters that we have described in yesterday's press release and in our filings with the FBI. Joining me on the call today is Bob McCormick, President and CEO, and Sarah Lauber, Executive Vice President and CEO. I will provide an overview of our performance, followed by Sarah reviewing our financial results and guidance. After that, we'll open the call. There, I'll hand the call over to... Thanks, Nathan. Good morning, everyone.
Before we begin I would like to remind you that some of the comments that will be made during this conference call, including answers to your questions will constitute forward looking statements.
These forward looking statements are subject to risks that could cause actual results to be materially different.
Those risks include among others matters that we have described in yesterday's press release and in our filings with the SEC.
Joining me on the call today is Bob Mccormick, President and CEO, and Sarah Lauber Executive Vice President and CFO.
Bob will provide an overview of our performance followed by reviewing our financial results and guidance.
The call for questions.
I'll hand, the call over to Paul. Please go ahead.
Thanks, Nathan and good morning, everyone.
Robert McCormick: Today I want to talk briefly about the fourth quarter of 2023, as you probably saw our detailed pre-release last month and the release yesterday evening, but more importantly, I'd like to focus on 2024 and the bright future I see for Douglas Dynamics. The main drivers of our four-quarter performance were a continuation and expansion of what we had previously discussed throughout 2023. Work Truck Solutions' performance was the highlight of the fourth quarter and 2023.
Today I want to talk briefly about the fourth quarter of 2023.
We saw our detailed pre released last month and the released yesterday evening, but more importantly, I'd like to focus on 2024, and the bright future I see for Douglas dynamics.
The main drivers of our fourth quarter performance rig continuation and expansion of what we had previously discussed throughout 2023.
Work truck solutions performance was the highlight of the fourth quarter and 2023 in total.
Robert McCormick: Their strong Q4 completed a calendar year where they met their financial targets, improving EBITDA margins each quarter over the prior year. I want to commend the Solutions team for their dedication and performance, and I'm pleased to say we expect continued improvements throughout 2019. The improved solutions performance, however, was overshadowed by weather-driven challenges in the attachment.
There are strong Q4 completed a calendar year, where they met their financial targets, improving EBITDA margins each quarter over prior year performance.
That's a tremendous solutions team for their dedication and performance and I'm pleased to say, we expect continued improvements throughout 2024.
The improved solutions performance, however was overshadowed by weather driven challenges and the attachment rate.
Following two years of excellent results and attachments the weather really impacted performance in 2023 and was the reason our results came in well below our expectations.
Robert McCormick: Following two years of excellent results and attachments, the weather really impacted performance in 2023 and was the reason our results came in well below our expectations. We've been in the snow business for 75 plus years, and while we've seen our share of poor snowfall seasons, we've never seen back-to-back seasons of this magnitude. The first quarter of 2023 was impacted by the end of the 22-23 snow season, with record-low snowfall in the eastern part of the state. The fourth quarter of 2023 was impacted by the start of the current 23-24 snow season, which saw very low snowfall across the entire state. Snowfall totals were nearly 70% below the 10-year average.
We've been in the snow business for 75, plus years and while we've seen our share a portion of them fall seasons, we've never seen back to back seasons of this magnitude.
The first quarter 2023 was impacted by the end of the 'twenty two 'twenty three snow season with record low snowfall in the east coast.
The fourth quarter 2000, Twenty's REIT was impacted by the start of the current 'twenty three 'twenty four snow season, which saw a very low snowfall across the entire snowbelt with snowfall totals that were nearly 70% below the 10 year average.
As a result of these unprecedented weather patterns. There was a record 700 plus day gap between measurable snowfall is an important east coast markets.
Robert McCormick: As a result of these unprecedented weather patterns, there was a record 700 plus day gap. www.dynamicsinc.com This resulted in the lowest fourth quarter order activity we've ever seen, signaling that the equipment replacement cycle has lengthened to a point where it will take more than one snow season to return to an average demand environment. As many of you know, we are accustomed to rapidly adjusting our spending and production levels because of the influence of weather. We implemented the low snowfall playbook in early 2023 and pulled a record level of short-term costs. When 4th quarter snowfall came in well below historical averages, we determined that we needed to take more aggressive and permanent cost reduction measures to align our cost structure with current demand, which we call the 2024 Costume.
This resulted in the lowest fourth quarter order activity we've ever see.
$6 million at the equipment replacement cycle has lengthened to a point, where it will take more than one snow season to return to an average demand environment.
And as many of you know we are accustomed to rapidly adjusting our spending and production levels because of the influence of weather we.
Implemented the low snowfall playbook at early 2023 and pulled a record level of short term cost savings.
When fourth quarter snowfall came in well below historical averages, we determined that we needed to take more aggressive and permanent cost reduction measures.
To align our cost structure with current demand trends, which we call the 2020 for cost savings program.
Robert McCormick: Sarah will discuss the details later, but in summary, we expect $8 to $10 million in annualized savings. Frankly, these are some of the hardest decisions we've had to make in our history, but they were the right moves for the long-term financial and operational health of the nation. I'm so proud of our leadership teams for how they've responded. They acted swiftly and decisively.
Sarah will discuss the details later, but in summary, we expect $8 million to $10 million in annualized savings.
Frankly these are some of the hardest decisions we've had to make in our careers, but they were the right fit.
The long term financial and operational health of the company.
I am so proud of our leadership team for how they've responded in this situation they acted swiftly and decisively.
What's even more important is that while making these decisions. They never lost sight of our key long term growth initiatives.
Robert McCormick: But even more important is that, while making these decisions, they never lost sight of our key long-term goals. Thank you very much. From a weather perspective, we have seen a mild El Nino pattern in the first quarter, which is not as strong as we were expecting. However, I am glad to say that weather conditions were stronger in January, with snowfall totals above average across the United States. In fact, we set a record for parts and accessories orders in the month of January, which is a good start. In early February, we saw the first Nor'easter in two years.
During that we stay focused on protecting and growing not only our market share, but our competitive advantages in the market.
From a weather perspective, we have seen a mild el Nino pattern in the first quarter, which is not as strong as we'd hoped for.
I am glad to see that weather conditions were stronger in January with snowfall totals above average across the snowbelt. In fact, we set a record for parts and accessories orders in the month of January which is a good sign.
In early February we saw the first nor'easter in two years.
Robert McCormick: Having said that, the second half of February has been pretty good, so while the winter weather season isn't over yet, at this point, it seems like we will finish this season with below average snowfall. On a more positive note, while our dealer checks at the end of January confirm that inventory levels remain above the five-year average... They have begun to moderate. So they are starting to come down. But I'm pleased to say that both dealer sentiment and financial health remain positive. Lastly, we are gearing up to launch some exciting new products at the NTA Work Truck Show in Indianapolis in a couple of weeks. More to come on that topic next. So, there is no doubt it's been a difficult year in the attachment industry.
Having said that the back half of February has been pretty quiet.
So while the winter weather season isn't over yet at this point it seems like we will finish the season with below average snowfall totals.
On a more positive note, while our dealer checks at the end of January confirmed inventory levels remain above the five year average they have begun to moderate so they are starting to come down.
I am pleased to say that both dealer sentiment and financial health remains positive.
Lastly, we are gearing up to launch some exciting new products at the MTA work truck show in Indianapolis in a couple of weeks more to come on that topic next quarter.
So there is no doubt it's been a difficult year with the attachments group, but as always we will exit this environment stronger knowing our team will be ready to drive profitable growth again when conditions allow.
Robert McCormick: But as always, we'll head to this environment stronger, knowing our team will be ready to drive profitable growth again when conditions allow. Let's turn the work truck solutions story for 2023 into much more. The Solutions Segment completed a strong finish to 2023, delivering on its goal of mid-single-digit EBITDA markets. Again, we want to thank our Vigiana and Henderson teams for driving higher volumes through their output centers.
So let's turn the work truck solutions for the 2023 story has been much more pumps.
The solutions segment completed a strong finish to 2023 delivering on its goal of mid single digit EBITDA margins.
Again, we want to thank our degenerative Henderson teams for driving higher volume through their up at centers and improving the baseline profitability of their businesses.
Robert McCormick: Improving the baseline profitability of their businesses. Our recent performance bodes well for the coming year, especially as overall demand remains positive. All in all, a good year at Solutions and more to come. So, as we look to the future... Portuguese, see a solution segment that is building on momentum generated by media's profit improvement objectives in 2012. In 2024, we're focused on driving revenue with non-chassis channels, penetrating new markets with new product introductions. Additionally, our focus on internal profit drivers, driven by product redesigns, sourcing improvements, and DDMS Continued Improvement Initiatives on the shop floor and in our offices. From a chassis perspective, we expect to see some impact from the UAW strike in the first quarter of 2024, which has been taken into account with our. Overall, we are not projecting significant near-term improvements in chat.
Our recent performance bodes well for the coming year, especially as overall demand remains positive and we still have a strong backlog to work through all in all a good year end solutions of more to come.
So as we look to the future what.
What do we see.
First we see a solutions segment that is building up momentum generated immediate profit improvement objectives in 2023.
2024, we're focused on driving revenue would not chassis channels penetrating new markets with new product introductions.
Additionally, our focus on internal profit drivers continues driven by product Redesigns sourcing improvements and Dms continued improvement initiatives on the shop floor and in our opinion.
From a chassis perspective, we expect to see some impact from the UAW strike in the first quarter of 2024.
Which had been taken into account with our guidance.
Overall, we are not projecting significant near term improvements in chassis supply.
Robert McCormick: We do enter 2024 with strong backlogs, although if chassis supply does improve during the year. For more information, visit www.fema.gov. Thank you for looking at the attachment.
We do enter 2024 with strong backlogs and chassis supply does improve during the year.
The move to increase velocity through our business.
Second.
Looking at the attachments group while.
While the lengthy while the lengthening lengthening replacement cycle will impact demand and attachments this year.
Robert McCormick: While the lengthening replacement cycle will impact demand and attachments this year, the team has repositioned itself to manage through these conditions; they focus on factors we can control. These include the 2024 Cost Savings Program, new product launches, and baseline profit improvement projects that our teams were so successful with in 2011. Our people are using our DDMS continuous improvement mentality to produce creative solutions, improving our operations in the near term, providing considerable benefits over the long term, and looking ahead at M&A opportunities. Our hair trim focus is on the attachment segment.
Jim has repositioned itself to manage through these conditions stayed focused on factors. We can control. These include the 2020 for cost savings program.
New product launches and baseline profit improvement projects that our teams were so successful with in 2023.
Our people are using our <unk> continuous improvement mentality to produce creative solutions.
Improving our operations in the near term.
In providing considerable benefits over the long term.
Looking ahead at M&A opportunities our near term focus is on the attachment segment searching for companies with complex products that need to be professionally up fit onto work trucks.
Robert McCormick: Searching for companies with complex products that need to be professionally up-to-date to work. We are starting to expand the parameters of our search to include a broader range of companies in certain... Having said that, our criteria for potential acquisition candidates remains intact. You must have a strong brand, have significant potential for growth, and would be a good cultural fit.
We are starting to expand the parameters of our search to include a broader range of companies in certain sectors.
Having said that our criteria for potential acquisition candidates remains intact.
Must have strong brands.
Have significant potential for growth and would be a good cultural fit with Douglas.
Robert McCormick: We will maintain our disciplined approach, but we always try to look ahead and see around. To be clear, we are not looking to pull the trigger on any deals in the near future. It's important that we have the right strategy and target, which will allow us to ex... when our balance sheet is back to normal and we have multiple financing options. Finally, let me show you the. We've navigated through some tough external headwinds in recent years, situations like this that really test the strength of your leadership. Quite frankly, you find out what your. I couldn't be more pleased with how our teams have responded in this environment, finding creative solutions to difficult challenges. Our continuous improvement and getting better every day mentality have shown up like never before. The main benefit of navigating through difficult circumstances is that it allows us to take a step back, challenge what we do and how we do it, and find ways to. Trust me, ladies and gentlemen, we will emerge from these challenges stronger and smarter than before.
We'll maintain our disciplined approach, while we always try to look ahead and see around corners to be clear.
We are not looking to pull the trigger on any deals in the near term.
It is important that we have the right strategy and targets in place, which will allow us to execute when our balance sheet is back to normal and we have multiple financing options to consider.
Finally, let me say this.
We've navigated through some tough external headwinds in recent years.
Situations like this that really test the strength of your leadership team quite frankly, you find out what you're made of.
I couldnt be more pleased with how our teams have responded in this environment finding creative solutions to difficult challenges.
Our continuous improvement and getting better everyday mentality as shown themselves like never before.
The main benefit of navigating through difficult circumstances is that allows us to take a step back challenge, what we do and how we do it and find ways to find ways to improve.
Trust me, ladies and gentlemen, we will emerge from these challenges stronger smarter than before.
Sarah Sutton Lauber: With that said, I'll hand the call to Bob. Thanks, Bob. Now, the simple story for 2023 was that work solutions produced significantly improved results, while work truck attachments were hindered by unprecedented weather trends. Clearly, 2023 did not unfold as we expected. But collectively, we made the right decisions and implemented the right policies to adapt to these unusual challenges successfully.
But that said I will hand, the call to Sarah.
Thanks, Bob.
Now the typical story for 2023, but that works Alicia produce significantly improved results while work truck attachments was hindered by unprecedented weather trends.
Clearly in 2023 did not unfold as we expected.
We made the right decision and implemented the right policies to adapt to these unusual challenges.
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Sarah Sutton Lauber: I want to thank our teams for stepping up, identifying issues, and, more importantly, finding solutions as we work through the year. With that said, let me walk you through the numbers. On a consolidated basis, net sales were $568.2 million for the year, compared to $616.1 million in 2022. The approximate 8% decrease was due to low snowfall impacting volumes and attachments, which was partially offset by higher volumes and better price realization in solutions. Gross profit of $143.3 million, or 23.6% of sales, compared to $151.5 million, or 24.6% last year, as the impact of lower volumes and higher margin attachment The decrease was primarily due to lower incentive-based compensation and the impact of curtailing spending as part of our low snowfall pipeline.
I want to thank our team for stepping up identifying issues and more importantly, finding solutions as we manage through the year.
With that said, let me walk through the numbers for you.
On a consolidated basis net sales were $568 2 million for the year compared to $616 1 million in 2022.
The approximate 8% decrease but due to low snowfall impacting volumes in attachment, which was partially offset by higher volumes and better price realization and Felicia.
Gross profit of $143 3 million or 23, 6% of sale compared to $151 5 million or 24, 6% last year.
The impact of lower volumes and higher margin attachment segment negatively affected our mat.
SG&A expense, including intangible amortization decreased three 6% to $89 $4 million for 2023.
Compared to $92 7 million for the prior year.
The decrease was primarily due to lower incentive based compensation and the impact of curtailing spending as part of our cloud snowfall playbook.
Adjusted EBITDA for 2023 was $68 1 million or 12% of sales compared to $86 8 million or 14, 1% of sales in 2022.
Sarah Sutton Lauber: Adjusted EBITDA for 2023 was $68.1 million, or 12% of sales, compared to $86.8 million, or 14.1% of sales in 2020. We remain focused on improving EBITDA margins, and solutions made significant improvements. Interest expense increased to $15.7 million for 2023 compared to $11.3 million for 2022 due to higher interest on our revolver of $3 million based on higher borrowings and higher variable interest rates compared to last year. Our combined tax rate for 2023 was 18.9% compared to 18.5% for 2022. Both rates are lower than typical, with the 2023 rate being impacted by a tax benefit related to the purchase of investment tax credits, and the 2022 rate being impacted by a discrete tax benefit related to state income tax rates.
We remain focused on improving EBITDA margin and solutions made significant improvement every year.
Interest expense increased to $15 $7 million for 2023 compared to $11 $3 million in 2022 due to higher interest on our revolver.
$3 million based on higher borrowings and higher variable interest rates compared to last year.
Our combined tax rate for 2023 was 18, 9% compared to 18, 5% for 2022.
Those rates are lower than typical with the 2023 rate being impacted by a tax benefit related to the purchase of investment tax credits.
The 2022 racing impacted by a discrete tax benefit related to state income tax rate change them.
Net income for the year was $23 $7 million compared to 38.6.
Sarah Sutton Lauber: Net income for the year was $23.7 million compared to $38.6 million for 2022, again due to low snowfall in the first and fourth quarters of the year, impacting volumes at attachment, which was partially offset by improved performance at solution. Now, let's look at the results from the two sectors. Net sales at our attachment segment were $2,291.7 million for 2023, compared to $382.3 million in the prior year. The significant decrease was due to unprecedented low snowfall in our core markets during the 22.
$6 million for 2022 again due to low snowfall in the first and fourth quarters of the year impacting bookings that attachment, which was partially offset by improved performance at Alicia.
Now, let's look at the results for the two segments net sales at our attachment segment were $20 $291 7 million for 2023 compared to $382 3 million in the prior year.
The significant decrease was due to the unprecedented low snowfall in our core markets during that 22.
Sarah Sutton Lauber: 23 snow season and the beginning of the 23-24. This translated into adjusted EBITDA of 50.6 million, or 17.3% of net sales for 2023, compared to 78.2 million, or 20.5% of net sales in 2022. The severe lack of snowfall and its impact on demand led us to implement the previously announced 2024 cost savings program, which focused on both attachments and corporate functions, primarily in the form of headcount reductions. We expect the program to produce annualized pre-tax savings of $8-10 million, with 75% of the savings expected to be realized this year and $2 million in pre-tax restructuring charges, primarily in the first quarter.
93, snow season, and the beginning of the 'twenty three 'twenty four.
This translated into adjusted EBITDA of 56 million or 17, 3% of net sales for 2023 compared to $78 2 million or 25% of net sales in 2022.
Not as severe lack of snowfall and its impact on demand might have to implement the previously announced 2020 for cost savings program.
It's focused on both attachments and corporate functions, primarily in the form of head count reduction.
We expect the program to produce annualized pretax savings of $8 million to $10 million with 75% of the savings expected to be realized this year and $2 million and pre tax restructuring charge is primarily in the first quarter.
Mr. <unk> was more positive evolution 2023, net sales increased 18% to $276 5 million when compared to the prior year.
Sarah Sutton Lauber: The story was more positive in 2023 net sales increased 18% to $276.5 million when compared to the prior year due to higher volumes on improved chassis availability and improved price increase realization. In the fourth quarter of 2023, we began to see a significant improvement in pricing action on our longer-term municipal contracts, which we took to mitigate the inflationary factors experienced over the last couple of years. The impact of higher volumes and pricing improvements fell through to adjusted EBITDA, which more than doubled from $8.6 million in 2022 to $17.6 million in 2023. In all four quarters of 2023, solutions delivered margin improvement compared to the previous year and delivered mid-single-digit EBITDA margins for the year, making progress towards our long-term margin target of double-digit to low-teen margins. As we previously stated, we're still assuming that traffic supply in 2024 will be similar or slightly better than last year, but we don't expect dramatic improvements. Finally, we ended 2023 with $296 million in backlog compared to a record $369 million a year ago.
Due to higher volume on improved chassis availability and improved price increase realization.
In the fourth quarter of 2023, we began to see the significant improvement.
Improvement in pricing action on our longer term municipal contract, which we took to mitigate the inflationary factors experienced over the last couple of years.
The impact of higher volumes and pricing improvements fell through to adjusted EBITDA, which more than doubled from $8 6 million in 2022 to $17 6 million in 2023.
And all four quarters of 2023 solutions delivered margin improvement compared to the previous year.
And delivered mid single digit EBITDA margins for the year, making progress towards our long term margin target of double digit low teen margin.
As we previously stated we are still assuming that chassis supply in 2024 will be similar or slightly better than last year, but we don't expect dramatic improvement.
Finally, we ended 2023 with 216 $296 million that backlog compared to a record $369 million at year ago.
Sarah Sutton Lauber: Although not a record, the current backlog is still well above the 10-year average and reinforces our positive outlook for solutions for 2024. Now, let's look at our balance sheet and liquidity. Net cash provided by operating activities was $12.5 million for the year compared to $40 million in 2022. The decrease was due to a $3.3 million reduction in earnings and $24.2 million in unfavorable working capital.
Although not a record the current backlog is still well above the 10 year average and reinforces our positive outlook for solutions for 2024.
Now, let's look at our balance sheet and liquidity.
Net cash provided by operating activities was $12 5 million for the year compared to $40 million in 2022.
The decrease was due to a $3 3 million reduction in earnings and $24 2 million in unfavorable working capital changes due to an increase in cash used for accounts payable which was related to the timing of supplier payments.
Sarah Sutton Lauber: Due to an increase in cash used for accounts payable, which was related to the timing of supplier payment. These working capital changes in the year resulted in free cash flow of $1.9 million compared to $28 million in 2022. Accounts receivable at the end of the year were $83.8 million, $3 million lower than in 2022.
These working capital changes in the year resulted in free cash flow up $1 9 million compared to $28 million in 2022.
Accounts receivable at the end of the year were $83 8 million 3 million lower than 2022.
Sarah Sutton Lauber: Inventories were $140.4 million at year's end, slightly higher than the $136.5 million at the end of 2002. Compared to last year, we ended 2023 with higher levels of snow and ice control equipment inventory due to the lack of snowfall in the fourth quarter, while solutions made progress in reducing their inventory levels that have been elevated due to long lead times and traffic delays. Turning to capital allocation, we paid our dividend of 29.5 cents at year end.
Inventories were $144 million, a year and slightly higher than the $136 $5 million at the end of 'twenty two.
Compared to last year, we ended 2023 with higher levels of <unk>.
Ice control equipment inventory due to the lack of snowfall in the fourth quarter, while solutions made progress in reducing their inventory levels have been elevated to the long lead times and choppy of late.
Turning to capital allocation.
We paid our dividend of 29 five at year end we.
We announced today, our first quarter 2024 dividend, which is unchanged from last quarter.
While the dividend remains our top capital allocation priority. Our aim is to continue our track record and increase and again when conditions allow.
Sarah Sutton Lauber: We announce today our first quarter 2024 dividend, which is unchanged from last quarter. While the dividend remains our top capital allocation priority, our aim is to continue our track record and increase it again when conditions allow. At year-end, our total liquidity consisted of approximately $24 million in cash and approximately $103 million of borrowing capacity on the revolve.
At year end, our total liquidity comprised of approximately $24 million in cash and approximately $103 million.
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Net debt of $212 million at yearend compares to $187 million at the end of 'twenty two.
As our earnings are reflective of historically low snowfall trends, we are comfortable that.
Sarah Sutton Lauber: Net debt of $212 million at year end compares to $187 million at the end of 2022. As our earnings are reflective of historically low snowfall trends, we are comfortable that our year-end net debt leverage ratio of 3.5 times is above our targeted range temporarily and will return to our targeted range as we return to average demand in a test. As you saw in our press release, we amended our credit facility by increasing the leverage ratio to provide us with more financial flexibility in the front half of the year. We are confident that we will be able to manage the balance sheet and pull the levers we need to so that we are operating within our credit facility guidelines in the back half of the year. Capital expenditures for 2023 total $10.5 million, $1.5 million lower than 2022, as we curtailed certain investments as part of our expanded low snowfall playbook during the year.
Our year end net debt leverage ratio of three five times and above our targeted range temporarily and will return to our targeted range as we return back to average demand and attachment.
As you saw on our press release, we amended our credit facility by increasing the leverage ratio to provide us more financial flexibility in the front half of the year.
We are confident that we will be able to manage the balance sheet and pull levers we need to so that we are operating within our credit facility guidelines in the back half of the year.
Capital expenditures for 2023 totaled $10 $5 million, one $5 million lower than 22.
As we curtailed certain investments that's part of our expanded low snowfall playbook during the year.
While we expect our 2020 for capex to be higher than in 2023, we will be on the lower end of our range of 2% to 3% of revenue and we will be prudent with the timing of the investment spending will remain somewhat constrained as part of our 2020 for our cost savings program.
Now, let's turn to our outlook.
Sarah Sutton Lauber: While we expect our 2024 CapEx to be higher than 2023, we will be on the lower end of our range of 2 to 3% of revenue, and we will be prudent with the timing of the investments as spending will remain somewhat constrained as part of our 2024 cost savings program. Now, let's turn to our outlook. As you saw in the release, we expect 2024 net sales to be between $600 and $660 million. Adjusted EBITDA is predicted to range from $70 to $100 million, which would produce adjusted earnings per share in the range of $1.20 to $2.10 per share. The effective tax rate is expected to be approximately 24 to 25 percent.
As you saw on the release, we expect 2020 for net sales to be between 600 $660 million. Adjusted EBITDA is projected to range from $70 million to $100 million, which would produced adjusted earnings per share in the range of $1 20 to $2.10 per share.
Sure.
The effective tax rate is expected to be approximately 24% to 25%.
The adjusted EPS range of $1 20 to $2 10 indicates growth over 2023 results. This is driven by continued ongoing baseline profit improvement.
Implementation of the 2020 for our cost savings program and projected higher volumes and attachment.
Solutions enters 2024 in the best position since before the pandemic with continued positive demand and backlog trends combined with improved operating performance.
Sarah Sutton Lauber: The adjusted EPS range of $1.20 to $2.10 indicates growth over 2023 results. This is driven by continued ongoing baseline profit improvement, the implementation of the 2024 Cost Savings Program, and projected higher volumes in attachments. Solutions enters 2024 in the best position since before the pandemic with continued positive demand and backlog trends combined with improved operating performance. The largest assumption of our 2024 guidance relates to the replacement cycle of snow and ice equipment in the field. Given the unprecedented weather patterns experienced in our core markets, the equipment replacement cycle for attachments is elongated.
The largest assumptions of our 2024 guidance.
It relates to the replacement cycle of snow.
Equipment in the field.
Given the unprecedented weather patterns experienced in our core markets.
Replacement cycle for attachments excuse me long dated.
We are assuming approximately half of the weather driven volume decline in 2023 will be recovered in 2024, assuming we see a return to average snowfall in the fourth quarter.
When we enter our preseason ordering in April we will have further indications on just that.
This assumption and I plan to provide an update to our guidance with our first quarter call. If we find orders are trending up or down at that point.
When we look longer term our segment financial targets remain consistent.
Sarah Sutton Lauber: We are assuming approximately half of the weather-driven volume decline in 2023 will be recovered in 2024, assuming we see a return to average snowfall in the fourth quarter. When we enter our preseason ordering in April, we will have further indications on this assumption, and I plan to provide an update to our guidance with our first quarter call if we find orders are trending up or down at that point. When we look longer term, our segment financial targets remain consistent for Attachments.
Our attachment.
We believe we can deliver low to mid single digit sales growth and adjusted EBITDA margins in the mid to high 20.
In 2024, and 2020 for cost savings program alone is expected to drive attachment adjusted EBITDA margins back close to 20% with further improvement to margins as we progress through a multi year returned to average demand.
For solutions, we expect to maintain mid to high single digit sales growth in 2024, along with continued improvement towards low double digit EBITDA margin.
Sarah Sutton Lauber: We believe we can deliver low- to mid-single-digit sales growth and adjusted EBITDA margins in the mid- to high-20s. In 2024, the 2024 cost savings program alone is expected to drive attachments, and adjusted EBITDA margins back close to 20% with further improvement to margins as we progress through a multi-year return to average demand. For solutions, we expect to maintain mid to high single-digit sales growth in 2024, along with continued improvement towards low double-digit EBITDA markets. The improvement expected in 2024 is driven by continued success in baseline profit improvements and greater price realization and keeps us on the path toward several digit to low teen margins over the longer term. It's worth noting that our outlook includes underlying assumptions such as relatively stable economic conditions.
The improvement expected in 2024 is driven by continued success on baseline profit improvements and greater price realization and keeps us on the path towards double digit to low teen margins over the longer term.
It's worth noting that our outlook includes underlying assumptions such as relatively stable economic conditions are stable to slightly improving supply of chassis and components and that core markets will experience slightly below or better snowfall in the first quarter of 2000.
24, and average snowfall in the fourth quarter of 2024.
Despite the recent weather drought driven challenges we remain focused on the profit profile of our two segments.
We'll continue to make the baseline profit improvements needed to meet the long term potential of these businesses.
With that we'd like to open up the call for questions operator.
Thank you.
We will now begin the question and answer session.
That's a good question you May Press Star then one on your telephone keypad.
If you are using a speakerphone please pick up your handset before pressing the keys.
<unk>. Your question. Please press Star then two.
Operator: Stable to slightly improving supply of chassis and components, and that core markets will experience slightly below or better snowfall in the first quarter of 2024 and average snowfall in the fourth quarter of 2020. Despite the recent weather-driven challenges, we remain focused on the profit profiles of our two sectors. We will continue to make the baseline profit improvements needed to meet the long-term potential of these businesses. With that, we'd like to open up the call for questions, Operator. Thank you. We will now begin the question and answer session. To ask a question, you may press the star and 1 on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys.
Our first question today comes from Mike <unk> with D. A Davidson. Please go ahead.
Hi, good morning, and thank you.
Maybe some comments you made on the dividend sorry, I wanted to clarify.
You mentioned you were holding back on making a decision about increasing the dividend for 2024.
Is it the same chance that you will increase as well as cut cost cutting the dividend just not on the table that is going to be flat or up as your current thinking.
Hey.
Yeah, Good morning, Mike.
Certainly we've always talked and that has not changed that the dividend is our number one priority.
And we have strived to increase and have a sustainable dividend for years now and we've had many years of increasing we.
Michael Shlisky: To withdraw your question, please press star then 2. Our first question today comes from Mike Shlisky with D.A. Davidson. Please go ahead. Hi, good morning, and thank you. Perhaps some comments that you made on the dividends, Sarah; I wanted to clarify. So you mentioned you were holding back on making a decision about increasing the dividend for 2024. Is it the same chance that you would increase as well as cut, or is cutting the dividend just not on the table?
We believe that the dividend is absolutely.
Sustainable at this point all of our plans for the year include that dividend and.
And we expect that to continue.
Yes, I'll just I'll just jump in there to reiterate what Sarah said Mike.
This public company thesis for Douglas dynamics was launched 14 years ago with the dividend being front and center that Hasnt changed.
Okay, well, it's prudent not to increase it as we navigate through this weather environment.
It is still the number one priority and our business model is built around protecting it and delivering it every quarter.
Sarah Sutton Lauber: Is it going to be flat or up, is that your current thinking? Yeah, good morning, Mike. We certainly have always talked, and it has not changed, that the dividend is our number one priority. And we have strived to increase and have a sustainable dividend for years now. And we've had many years of increasing. We believe that the dividend is absolutely.
Okay got it.
I also had a quick housekeeping item about the guidance.
In the press release, you kind of two different sentences about EPS, but I wanted to just kind of square them up.
Two of them together and also what you provided back in January 30th. So you mentioned the dollar 20 to $2 10 of adjusted EPS dollars.
Robert McCormick: All of our plans for the year include that dividend, and we expect that to continue. Yeah, I'll just jump in there to reiterate what Sarah said, Mike. This public company thesis for Douglas Dynamics was launched 14 years ago with the dividend being front and center. That hasn't changed.
But then growth compared to a 100%.
Also.
So just $1 50 to $2.
And then you said I think it was 70% to 80% that come January 30th So I'm not really sure theyre kind of in the same range more or less but which one is the most appropriate one.
Michael Shlisky: Okay, while it's prudent not to increase it as we navigate through this weather environment, it is still the number one priority, and our business model is built around protecting it and delivering it every quarter. Okay, I got it. I also had a quick housekeeping item about the guidance. In the press release, you kind of had two different sentences about EPS, and I wanted to just kind of square them up. The two of them together and also what you provided back on January 30th. So you mentioned the $1.20 to $2.10 of adjusted EPS in dollars, but then growth of 50 to 100%. Also, which would suggest $150 to $2. And then you said, I think it was 70% to 80% back on January 30th. So I'm not really sure. They're kind of in the same range, more or less.
For us to look at that's a great question, Mike So the the guidance ranges, we typically give it but the $1 20 to 210.
That encompasses low snowfall potentially in the fourth quarter on the low end of the range. The next statement. There was meant to be a qualitative statement getting up a significant amount of earnings per share increase that we have in front of us.
Based on weather and on the other levers that we pulled so the 50% to 100% is within that guidance range, but it was really more qualitative statement to get out the magnitude of the earnings per share.
Okay.
Follow up on that later I guess.
Maybe.
Let me just focus on the guidance range as we've typically provided the $1 20 to 10.
And as I mentioned.
In my script, you know the larger assumption there being the 50% return to average that we will update in April and we're seeing it's trending in a in any different fashion.
Sarah Sutton Lauber: But which one is the most appropriate one for us to look at? That's a great question, Mike. So the guidance range, as we typically give it, the $1.20 to $2.10, that encompasses low snowfall, potentially in the fourth quarter on the low end of the range. The next statement there was meant to be a qualitative statement getting at the significant amount of earnings per share increase that we have in front of us, based on weather and on the other levers that we pulled. So the 50 to 100% is within that guidance range, but it was really more a qualitative statement to get at the magnitude of the earnings per share growth. OK, I'll follow up on that later.
Yeah.
Okay.
Well, maybe let's talk about more of the long term here you've mentioned in the past.
Average snowfall year.
$3 a share is what are you looking to get next time, we see it sounds like.
Which might not be there next year at least but that's what you're looking at that's what that's about.
But from you folks.
Could you comment is that viewpoint is still valid.
And then maybe secondly.
The cost improvement program.
Kind of rolling out here could add another quarter or or or hired EPS met with probably not perceived up when your first issue that we all got it. So is it more like $3 25, a sense going forward.
Michael Shlisky: Let me follow up, Mike. Just focus on the guidance ranges we typically provided, the $1.20 to $2.10, and as I mentioned in my script, the larger assumption there being the 50% return to average, that we will update in April if we're seeing it trending in any different fashion. OK. Let me just talk about the long-term here. You've mentioned the past. You can get in an average snowfall year.
And then maybe lastly.
No attachments would have to go up quite a bit from here.
And then average.
Average snowfall scenario.
I know you mentioned low to mid single digit growth, but would there really be a gap up your first if we see one almost no and then you have to go from there to your to your long term growth rate.
Robert McCormick: $3 a share is what you're looking to get next time we see it, sounds like, which might not be until next year, at least, but that's what you're looking at. That's what I last heard from you folks. I guess, could you comment? Is that viewpoint still valid? And then maybe secondly, the cost improvement program that you're kind of rolling out here could add another quarter or higher to EPS, and that was probably not perceived when you first issued that $3.00 guidance. Was it more like $3.25 going forward? And then, lastly... Attachments would have to go up quite a bit from here. In an average snowfall scenario, I know you mentioned low to mid-to-mid-year growth, but would there really be a gap year first if we see more normal snow, and then you have to go from there to your long-term growth rate? Those are my three questions about the more broader long-term view. I'd appreciate it. I don't know, let me start and then I'll let Sarah finish.
I'm asking me questions about the kind of the more broader long term view I'd appreciate it.
Got it no no let me, let me start and then I'll, let I'll, let Sarah finish.
Honestly, we've been talking about $3 a share targets for quite some time.
Most recently over the past couple of years, we've talked about $3 of EPS by 2025.
That that journey.
Driven largely by an internal profit drivers, which we've talked about quite a bit right. We took pretty conservative stances, Mike on the external drivers both snowfall chassis supply to reach those long term targets. We're pleased to say and we'll shout from the rooftops, we have delivered on our internal.
Profit driver commitments and we expect that to continue.
Okay, No having said that.
This profit model is always impacted by weather right.
Right.
Most environments snowfall is up or down 5% to 10% it doesn't really move the needle very much given what's happened over the last year and a half right. The historic impact on earnings of weather has been over a dollar of EPS. So if more than wipes out the gains from the internal profit drew.
Robert McCormick: Obviously, we've been talking about $3 a share targets for quite some time, and recently, over the past couple years, we've talked about $3 of EPS by 2025. That journey, driven largely by internal profit drivers, which we've talked about quite a bit, right? We took pretty conservative stances, Mike, on the external drivers, both snowfall and chassis supply, to reach those long-term targets. We're pleased to say, and we'll shout from the rooftops, we have delivered on our internal profit driver commitments, and we expect that to continue. Okay, now, having said that...
Rivers.
Having said all of that as we find ourselves moving forward from today, we are laser focused on three things right. We've repositioned the attachments business to support a multiyear return to normal demand levels and and when that when that occurs as that occurs.
Youre going to see some nice gains we have to to continue to support the continued improvements within the solutions group that service talked about and then lastly, where I started we are still laser focused on delivering our internal profit drivers now you put all those things together and that will drive significant.
Robert McCormick: This profit model is always impacted by weather, right, in most environments, falls up or down 5 to 10 percent. It doesn't really move the needle very much, given what's happened over the last year and a half. The historic impact on earnings from weather has been over a dollar. www.dynamicsinc.com. Having said all that, as we find ourselves moving forward from today, we are laser focused on three things. We've repositioned the attachments business to support a multi-year return to normal demand levels, and when that occurs, as that occurs, you're going to see some nice gains. We have to continue to support the continued improvements within the solutions group that Sarah talked about. And then lastly, where I started, we are still laser-focused on delivering our internal products. Now, you know, you put all those things together, and that'll drive significant EPS. 2000, 24, and 25.
P S improvements in 2024 and 25, Okay, that's where our attention is at this point.
Sure was reiterated that our long term goals by segment really haven't changed.
I'll give her a chance to sort of add.
Any additional comments you made me want to provide.
Yeah, when I go back to your three questions Mike.
You know Bob just walked through I guess, but the journey and the fact that we're reaffirming where are the where are the segments land, which is the growth rate in attachments up low to mid single digits and mid to high Twenty's margin with the solution in that mid to high single digits and double digit to low teens margin.
Absolutely see a path to those.
No impact of being greater than greener than a dollar.
And the multiyear aspect is it really more the the the assumption that we've had to make in the first year.
And the cost savings program, absolutely. It is additive to where we were several years ago.
Sarah Sutton Lauber: Okay, that's where our attention is at this point. Sarah's reiterated that our long-term goals by segment really haven't changed. I'll give her a chance to add any additional comments she may want. Yeah, I when I go back to your three questions, like, You know, Bob just walked through, I guess, the journey and the fact that we're reaffirming where the segments land, which is the growth rate and attachments of low to mid single digits and mid to high 20s margins, with the solutions being that mid to high single digits and We absolutely see a path to those. There's no impact of being greater than a dollar, and the multi-year aspect is really more the assumption that we've had to make in the first year.
That's call. It 20 to 30 that we expect within our guidance this year.
And we expect those to be to be permanent additions to our tomorrow.
Our earnings.
As we move forward so all of those things I guess well position us to tell.
To get that significant earnings per share increase.
We've been talking about we're just not focused on that.
Timing of the $3.
Okay. Okay.
I'll take one other questions offline. Thank you so much.
Thanks, Mike.
Thank you. The next question is from Robert <unk> with Baird. Please go ahead.
Hey, good morning.
So you guys talked about recovery and about half of the weather driven volume declines that you experienced in 2023.
Sarah Sutton Lauber: And the cost savings program absolutely is additive to where we were several years ago. That's called the $0.20 to $0.30 that we expect within our guidance this year. And we expect those to be permanent additions to our budget. Thank you, timing of the $3.
Maybe could you provide a little bit more context, there and kind of the underlying assumptions you made to get to the half.
Sure Let me, let me start and I'll, let I'll, let Sarah jump on.
You know.
We've talked over the years rates I mean, whether it goes up and down but one of the unique things about this whether business is we have enough history that when something happens we can find two or three other data points historically, where a similar thing has happened and therefore, we know what happens next.
Michael Shlisky: Okay, okay. I'll take any other questions offline. Thank you so much. Peace, bye.
Operator: Thank you. The next question is from Robert Schultz with Baird. Please go ahead. Hey, good morning.
Robert Schultz: You guys talked about recovering about half of the weather-driven volume declines that you experienced in 2023. Maybe you could provide a little bit more context there and kind of the underlying assumptions you made to get to half? Here, let me start and I'll let Sarah jump on, you know.
We're not in that space right now right what's happened over the last 18 months has never happened before so theres not a lot of history to drawn so we're making more educated guesses and then tweaking those things up or down as the as the site will show themselves. So sure you asked.
So our assumption in our guidance is based on.
Robert McCormick: We've talked over the years, right? I mean, weather goes up and down. But one of the unique things about this weather business is we have enough history that when something happens, we can find two or three other data points historically where a similar thing has happened. And therefore, we know what happened. www.dynamicsinc.com We're not in that space. What's happened over the last 18 months has never happened before, so there's not a lot of history to draw on.
The volume loss in attachment that we experienced in 2023. So we are assuming that we get about half of that back.
And then.
Once April begins and we start to see pre season, we'll have more indications of that assumption.
So my plan is to update our guidance, if we see that it's materially different up or down from that point.
Okay got it thanks.
And then maybe on the solution side on the guidance for next year, maybe how should we think about the contribution there between the genre in Anderson.
Robert McCormick: So we're making more educated guesses and then tweaking those things up or down as the cycles show themselves. So Sarah, do you want to add something to that? Yeah, so our assumption and our guidance is based on the volume loss in attachments that we experienced in 2023. So we are assuming that we get about half of that back. Once April begins and we start this season, we'll have more indications of that assumption, and so my plan is to update our guidance if we see that it's materially different up or down from that point. You got it, thanks. And then maybe on the solution side, on the guidance for next year, maybe how should we think about the contribution there between Dijana and Henderson? I would say they're both improving equally. They're both on their journey to...
Let's say, they're both both.
Both improving slowly.
They are both on their journey to the.
The targets that have been set out for the segment and they both are making I'm, making.
Improvements that I would say are relatively equal into my commentary for solutions in total.
Awesome and then just one more for me what are you what are you expecting for free cash flow this year and kind of what are the puts and takes.
Yeah. So when you when you look at the midpoint of the guidance.
For our EBITDA I'll kind of walk you through the pieces.
Cash interest I would say is it's around 15 to 16 million.
Sarah Sutton Lauber: The targets that have been set out for the segment, and they are both making improvements that I would say are relatively equal to my commentary for solutions in total. Awesome. And then just one more for me. What are you expecting for free cash flow this year? And kind of what are the puts and takes? Yeah, so when you when you look at the midpoint of the guidance for our evid dial, I'll kind of walk you through the pieces. Cash interest, I would say, is around 15 to 16 million.
And not not too far from prior year and cash taxes, we're expecting to be flat and I mentioned, our capex would be at the low end of our range of 2% to 3% of sales and then you know the.
The assumption on working capital if you look at this year's working capital. It was greatly impacted by by accounts payable timing. This year I would say U S.
Robert Schultz: And not too far from the prior year, and this year, I would say more relatively flat working capital, with us having the opportunity to exceed that with the inventory reduction plans that we have in place. Awesome, thanks. I'll leave it there then.
And this year I would say more relatively flat working capital.
With us having opportunity to exceed that with the inventory reduction plans that we have in place.
Yeah.
Awesome. Thanks, I'll leave it there then.
Robert Schultz: Thanks, brother. Thank you. The next question comes from Greg Burns with Sidoti and Company. Please go ahead.
Thanks, Bob.
Thank you. The next question comes from Greg Burns with Sidoti and company. Please go ahead.
Greg Burns: Good morning. Could you quantify what the impact of the UAW strike will be in the first quarter or exactly what the impact will be on you? Yeah, we've incorporated it into our guidance. But I will tell you, Greg, it's a little bit hard to understand exactly what the UAW impact is versus other parts of the supply chain. I would say that we estimated probably between $1.5 to $3.5 million of EBITDA, primarily in the first quarter.
Good morning.
Did you call. It could you quantify what the impact on the UAW strike will be in the first quarter or what exactly the impact will be to you.
Yeah, we've incorporated it into our guidance I will tell you Craig it's a little bit hard to understand exactly what UAW impact is versus other you know supply chain.
Movement, I would say that we've estimated probably between one and a half to three and a half million dollars out of EBITDA.
Sarah Sutton Lauber: Yeah. Okay. Okay, and I just wanted to, I guess, understand the guidance a little better and what the assumption is for the first quarter, like, do you, are you expecting? What kind of end to the snow season are you expecting here in your outlook? What is factored in your guidance?
In the primarily in the first quarter.
Yeah.
Okay.
Okay, and I just wanted to I guess understand the.
The guidance, a little better than what the assumption is for the first quarter like do you are you expecting.
You know what.
What kind of end of this the snow season are you expecting here in your in your outlook.
Now what is factored in your guidance like if we get no snow does that would we right.
Sarah Sutton Lauber: If we get no snow, would we... Be more inclined to lower it? So January snowfall was better than January last year. We had snow show up on the East Coast, and that was very good. We actually had a record January for parts and accessories in our attachment segment because of that snowfall. February, you can see out your window, has not been... significant from a snow standpoint, and that's more heavily weighted for the snow season.
Steve.
We're inclined to lower.
So January snowfall was better than January last year, we had.
No show up on the East coast and that was.
Very good we actually had a record.
January for parts and accessories, and our attachment segment because of that that's helpful.
On February you can't you can see out your window has not been.
Significant from a from a snow standpoint, and that's more heavily weighted to the snow season. So right now our assumption is that we have a below average snowfall.
Sarah Sutton Lauber: So right now, our assumption is that we have below-average snowfall. That's what's in our guidance for the year for the first quarter. When I think about first-quarter results, we are expecting improvement over the prior year in total. And I would say the snowfall that we saw in January and that improvement helps us to work our way towards close to breaking even for the first quarter, which, as you know, is our seasonal lowest quarter of the year. Okay, great. And when you consider M&A, are you looking to stay within your existing product categories, or, potentially, maybe? Looking at a new category, maybe that's less weather-dependent. Yeah, we certainly are in the attachments acquisition strategy. We are targeting Attachment products that are outside of traditional snow and ice. And obviously, there's a host of reasons why, but one of them you just mentioned, right?
Inside our guidance for the year.
For the first quarter, when I think about first quarter results.
We are expecting improvement over prior year and in total and.
And I would say the snowfall that we saw in January and that improvement.
Helps us to work our way towards close to breakeven for the first quarter, which as you know with our seasonal slowest quarter of the year.
Okay, great and.
When you consider M&A.
Are you looking to stay within your existing product categories or potentially maybe.
Looking at a new a new.
New category, maybe that's less.
Weather dependent.
Yes, we certainly in the attachments acquisition strategy.
We are targeting.
Attachment products that are outside of traditional snow and ice control.
And obviously there is there is there is a host of reasons why but one of them you just mentioned right. When you do it over the long run further further diversifies our earnings away from being so snow and ice control reliant.
Robert McCormick: We need to, over the long run, further diversify our earnings away from being so focused on snow and ice control. Most of the focus is public science. Okay, great. All right. Thank you. Thank you. As a reminder, to ask a question, you may press star then 1 on your telephone keypad.
Yeah.
Most of the focus is outside of snow and ice.
Okay, Great alright, thank you.
Thank you.
A reminder to ask a question you May Press Star then one on your telephone keypad.
Operator: Seeing no further questions, this concludes our Q&A session. I would like to hand the call back over to President Bob McCormick for any closing remarks. Thank you.
Seeing no further questions. This concludes our Q&A session I would like to hand, the call back over to President Bob Mccormick for any closing remarks.
Thanks.
Robert McCormick: Thank you for your time today. We appreciate your ongoing interest in Douglas Dynamics. Our company is built to manage through uncertainty, and while it's been tested of late, I think we are showing we are more than capable, making the necessary decisions, however difficult, and then executing those. The long-term demand trends and outlook remain positive for all of our. We are confident that as external headwinds subside, we will come back stronger, deliver improvement, and reach our long-term goals. I'm excited about the future at Douglas Dynamics. Our best is still ahead of us.
Thank you for your time today, we appreciate your ongoing interest in Douglas dynamics.
Our company is built to manage through uncertainty and while it's been tested of late.
We have shown we are more than capable of making the necessary decisions. However, difficult and then executing those plans.
The long term demand trends and outlook remain positive for all of our businesses.
We are confident that as external headwinds subside, we will come back stronger deliver improvements and reach our long term goals.
I'm excited about the future of Douglas dynamics are best is still ahead of us.
Operator: Thank you, and have a terrific day. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect. BF-WATCH TV 2021
Thank you and have a terrific day.
The conference has now concluded.
Thank you for attending today's presentation you may now disconnect.
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