Q4 2023 L.B. Foster Company Earnings Call
Yeah.
Good day, and thank you for standing by and welcome to L. B Foster's School fourth quarter 2023 earnings call. At this time all participants are in a listen only mode. After the speaker's presentation there'll be a question and answer session to ask a question. During the session you will need to press star.
One one on your telephone you work here and message our by senior hand, this waste to withdraw your question Press Star. One again. Please note that today's conference is being recorded.
I'd now like to pass the call over to the Investor Relations manager definition it.
So operator.
Good morning, everyone and welcome to L. B Foster's fourth quarter of 2023 earnings call.
My name is Stephanie Smith, the Companys Investor Relations manager.
Our president and CEO, John Castle, and our Chief Financial Officer, Bill Thomas will be presenting our fourth quarter operating results market outlook and business development. This morning.
Well start the call with John providing his perspective on the company's fourth quarter and full year 2023 performance.
I will then review the company's fourth quarter financial results.
John will provide perspective on market developments and company outlook in his closing comments. We will then open the session up for questions.
Today's slide presentation, along with our earnings release and financial disclosures were posted on our website. This morning and can be accessed on our Investor Relations page at L. B Foster dotcom.
Our comments this morning.
Right.
The station.
Yes.
Some statements, we're making are forward looking and represent our current view of our markets and business that these forward looking statements reflect our opinions only as of the date of this presentation and we undertake no obligation to revise or publicly released the results of any revisions to these statements in light of new information.
And except as required by securities laws.
For more detailed risks uncertainties and assumptions relating to our forward looking statements. Please see the disclosures in our earnings release and presentation.
During 2023, the company completed a reorganization that resulted in a change in our reporting segments from three to two segments.
What percent of today's call, we have restated segment information for historical periods presented it to conform with the current presentation.
We will also discuss non-GAAP financial metrics and encourage you to read our disclosures and reconciliation table provided in today's earnings release and within our accompanying earnings presentation as carefully as you consider these metrics.
So with that let me turn the call over to John.
Thanks, Stephanie and Hello, everyone. Thank you for joining us today for our 2023 fourth quarter earnings call.
As I look back and reflect on what the team accomplished over the last year.
I cannot be more proud of our progress in late 2021.
It also transform L b foster to high growth technology oriented infrastructure solutions provider <unk>.
We've accomplished we completed eight portfolio transactions.
Reducing our complexity and.
And narrowing our focus on becoming a clear infrastructure pure player with a focus on technology and innovation.
We also launched multiple growth and profitability initiatives.
Improve the earnings and cash generating.
The business clearly the impact of office efforts is evident.
And our 2023 results.
Fourth quarter sales continued to show strong organic growth at seven 7% with a reported decline of one 7% due to its trajectory divestitures.
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Portfolio work organic growth and pricing initiatives drove improved gross margins of 21, 5%.
Up to.
200 basis points over last year.
While gross margins were up to $2 3 million versus last year.
Adjusted EBITDA was down 1.4 million due primarily to higher variable incentive compensation expense.
That will reset to target levels in 2024.
The highlights for the quarter was our operating cash flow generation.
$22 1 million.
Operating cash flow translating to 16 million gallon reduction net debt during the quarter.
Net debt finished the year at $52 7 million with gross leverage ratio per our credit agreement, specifically improving to one seven times at year end.
Down from two point times at the start of the quarter.
With our disciplined capital allocation priorities operating cash flow was used to maintain a reasonable leverage levels.
Growth oriented capital spending projects complete tuck in acquisitions for our key growth platforms and continued capital returns to shareholders through stock repurchases.
And with that I am pleased to report that we have made solid progress on all these fronts in Q4.
Turning to slide six you can see how our strong finish contributed to a substantial progress we made in 2023.
Reflecting our full year results.
In fact, both sales and adjusted EBITDA results exceeded the upper end of our guidance for the year sales of $543 7 million were up nine 3% over 2022 gross margins of 27% were up 270 basis points adjust.
Adjusted EBITDA of $31 8 million was up $7 6 million over last year or 31, 4%.
Should be noted these results were achieved despite an ongoing commercial weakness in the UK market, specifically in our contract services business.
Similar to Q4 cash generating cash generation was a highlight for the full year. In fact, it was fantastic results with operating cash flow results.
Totaling $37 4 million for 2023, we also generated $8 2 million from divestitures and asset sales.
These proceeds were used primarily to reduce our net debt by 36.3.
$3 million during the year, bringing our gross leverage ratio down to one seven times versus two eight times last year.
Also made good progress funding our growth capex initiatives and stock repurchases throughout 2023.
As indicated in our earnings announcement, we realigned our management and operating structure at the end of the year with the business now reporting up to two highly qualified segment leaders, Greg Ledford for rail for.
For infrastructure congratulations to both Greg.
As a result of these changes we have updated our segment reporting to align with how we run how we're running the business.
And finally, we established financial guidance for 2024 with sales expected to range between $525 million and 560.
We estimate this sales range would represent organic growth of flat to 6% year over year.
Adjusted EBITDA outlook for 2024 is in a range of 34% to $39 million.
With the benefits of the portfolio work profitably initiatives expected to deliver improved adjusted EBITDA margins.
With the improved profitability outlook and our disciplined approach to managing working capital we are now.
Expect to generate free cash flow ratio from 12 million to $18 million in 2024 with capital spending represent two to two 5% of sales we continue to fund our organic growth initiatives.
And as a reminder, this will be the last year.
Union Pacific settlement with.
With payments totaling $8 million in 'twenty for.
This will give us a great boost to cash flow starting in 2025.
In summary, we're pleased with the great progress we've made in 2023 and look forward to continuing our journey in 2020 for.
Next Bill will cover the detailed financials for Q4, and I will come back again.
And some closing remarks on our outlook.
Over to you Bill.
Thanks, John Good morning, everyone I'll begin by covering the highlights of our fourth quarter on slide eight.
As a reminder, the schedules in the appendix provide more information on our financial results, including non-GAAP reconciliations.
Net sales of $134 $9 million declined one 7% in the fourth quarter.
Due to a nine 4% decline from divestitures.
Actually offset by organic sales growth of seven 7%.
The 2022 acquisitions of scratch and Vanhoose go are now included in organic sales.
While the 2023 divestiture decline was due to the Chem Tech and <unk> businesses.
Okay.
Our improved profitability profile continues to be reflected in our margins with gross profit up eight 5%.
Expanding 200 basis points to 21, 5%.
This improvement is due to organic growth portfolio changes favorable business mix and price realization, partially offset by the impact of the challenging commercial environment in our UK rail business.
SG&A costs are higher due primarily to increased personnel costs.
Including variable incentive expenses that will reset back to target levels in 2024.
Coupled with a $1 million bad debt provision for U K customer that previously filed for administrative protection.
We also recorded $700000 restructuring charge in our UK business as we right sized to the market conditions.
Net loss for the quarter was $400000 favorable $43 5 million over the prior year quarter due to last year's $37 9 million deferred tax valuation allowance and $8 million impairment charges.
As John mentioned in his opening remarks, one of the most notable highlights for the quarter was the $22 $1 million in operating cash.
I'll cover these details along with orders and backlog for later in the presentation.
The graphs on slide nine highlight the changes in sales and as John said.
EBITDA as a result of our divestiture activity and within our remaining legacy business, which now includes <unk> and <unk>.
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As a result of the <unk> divestiture in 2023, Q4 sales were down $12 9 million or nine 4%, but adjusted EBIT da increased $1 $1 million as a result of these transactions.
While the legacy business delivered organic growth of $10 $6 million year over year.
Adjusted EBITDA was down $2 $4 million due primarily to higher variable incentive compensation expenses as well as the weaker commercial environment in the U K.
Our guidance anticipates. These two drivers will have less of an impact in 2024.
Slide 10 reflects an important trend demonstrating the progress we've made in the sales growth and profitability over the last two years.
We reported strong organic growth in each quarter, and 2023, which highlights the resilience of our business and robust demand level.
Our end markets.
The adjusted gross profit improved year over year in each quarter in 2023 with the 2023 average of 21, 2% up 240 basis points over the prior year.
In summary, we believe our business portfolio transformation and focused profitability initiatives have translated into a structural improvement in the gross margin profile of our business that should be sustainable with the longer term demand prospects for our infrastructure end markets.
Over the next couple of slides I'll cover our segment performance in Q4 and as previously mentioned, we are now reporting two business segments rail and infrastructure.
I'll first cover the rail segment on slide 11.
Fourth quarter rail segment revenues of $69 $3 million were down 10, 9% year over year $6, 9% of which was due to the ties divestiture in 2023.
The balance of the decline was due primarily to our rail distribution business within rail products, which often fluctuates due to the timing of large orders.
Softness in the UK rail business also contributed to the decline.
Partially offsetting was improved volumes in both global friction management and our domestic total track monitoring business.
Rail margins of 19, 2% were down 390 basis points, driven primarily by the margin impact impacts from continued weakness in the UK commercial construction market.
<unk> was slightly weaker margins in global friction management.
Rail orders and backlog were both down year over year due primarily to timing of orders within rail products, which is already showing signs of improvement in early 2024.
Slide 12 reflects the fourth quarter results of our infrastructure segment.
As a reminder, infrastructure is now a combination of our precast concrete products and steel products businesses reporting to Bob Ness.
The previous steel products and measurement division has been renamed to steel products. After the sale of Comtech.
Prior periods have been recast to reflect our current reporting structure.
Infrastructure revenue increased $6 1 million or 10, 3% year over year.
Sales were up 23, 1% organically, partially offset by the <unk> divestiture, which drove a 12, 7% decline.
Gross profit margins for this segment increased 910 basis points, which was driven by gains in volume pricing and product mix in both pre cast and steel products as well as an uplift left from the sale of our <unk> Tec and the bridge grid deck product line exit.
Both of which were previously dilutive to gross margins.
New orders declined $18 $8 million and backlog was down $37 6 million both of which were due.
Primarily to the <unk> divestiture and bridge product line exit.
The full year results on slide 13 highlights the momentum we've established in our business throughout all of 2023.
Sales were up nine 3% year over year, 11, 7% organically and gross profit margins expanded 270 basis points to 27%.
Adjusted EBITDA increased $7 6 million or 31, 4% with the EBITDA margin of five 8% up 90 basis points versus last year.
SG&A costs for the year were up due to the increased personnel costs, including variable compensation.
As well as $2 5 million in UK bad debt and restructuring costs.
Excluding the bad debt and restructuring charges SG&A as a percentage of sales was 17, 4% in 2023 compared to 16, 6% in 2022 up 80 basis points due primarily to the higher variable incentive costs.
As John mentioned in his opening remarks, we achieved a significant improvement in operating cash flow in 2023, generating 37 4 million compared to a use of $10 6 million in 2022.
This progress allowed us to find the key capital allocation priorities, which I'll now cover over the next several slides.
Cash generation and leverage metrics are reflected on slide 14.
Improved profitability and lower working capital requirements drove $37 4 million in cash flow from operations for the year.
The strong operating cash flow allowed us to reduce net debt $16 million in the quarter and $36 $3 million for the full year.
As a result, our gross leverage per our credit agreement decreased from two eight times at the start of the year to one seven times at year end.
We're pleased with the significant progress achieved improving our leverage metric or metrics over the last several quarters and are now our leverage is now well below the elevated level immediately after the acquisitions of Vanhoose go and scratch in the summer of 2022.
Okay.
Our normal working capital cycle is expected to increase net debt and leverage in early 2024, with a steady decline and improved year over year metrics in the second half of the year.
Free cash flow provided robust funding of $33 million in 2023.
However, we actually reduced our net debt by $36 $3 million. This year due in part to the two divestitures completed during the year, both of which were accretive to our leverage ratio.
The balance of the free cash flow funded stock repurchases and a small tuck in precast acquisition in line with our capital allocation priorities.
As a reminder, we have $103 million in federal net operating losses that should minimize our U S tax obligations for the foreseeable future.
We believe our 2023 results highlight the cash generating power of our business and our 2020 for free cash flow guidance ranges between 12 million to $18 million, reflecting higher capital spending for organic growth projects.
With our improved profitability outlook capital light business model and the winding up of the Union Pacific settlement payments, we believe consistent free cash flow between $25 million and $35 million is achievable beyond 2024.
This would be a free cash flow yield of approximately 10% to 13%.
At today's valuation.
As a reminder, our capital allocation priorities are outlined on slide 15.
We continue to focus on managing our net debt and leverage levels, while cautiously investing in organic growth opportunities, we see in rail technologies in precast concrete.
And we will also look for small tuck in acquisitions that are aligned with our portfolio growth strategy as evidenced by the Cougar Mountain precast acquisition that was completed in Q4.
We're comfortable with gross leverage around two times I'm pleased we've achieved this level a little after a year a little over a year. After the completion of two strategic acquisitions in 2022.
Capital spending is expected to run at approximately two to two 5% of sales on average, which is slightly higher than our historical levels due to anticipated organic growth investments expected to have high returns and quick paybacks.
We will continue to evaluate opportunities to return cash to shareholders through our stock repurchase program.
We've been active since its inception in February of 2023 and are pleased with the progress made throughout the year with one 2% reduction in outstanding shares, thus far consuming $2 $3 million of the $15 million authorization.
And while distributing value to shareholders through a dividend is not a current priority. We will continue to consider this capital allocation option as the prospects for a stronger stable free cash flow continued to improve.
My closing comments will refer to slides 16, and 17 covering orders and backlog trends by business.
Consolidated book to Bill ratio for 2023 was zero point 97 to one.
With total new orders of $529 million down $22 9 million or four 2%.
While the decline in orders is largely attributed to the net impact of M&A orders in the legacy rail segment were also down due to the lumpy nature and seasonality of orders and the rail distribution business.
We are seeing increased quoting activity and order rate activity in early 2024, and we remain optimistic about our prospects for improving demand from the majority of our end markets.
And lastly, our consolidated backlog on slide 17 reflects a healthy backlog level at $213 8 million.
While backlog decreased $58 5 million from elevated levels at year end last year.
$31 3 million of the decline was due to divestiture and product line exit activities.
So the change is due primarily to timing of orders in the rail segment, which we believe will recover in early 2024.
In closing our fourth quarter and 2023 results highlight the momentum we're seeing in the business and benefits from our strategic transformation.
We're pleased with the progress achieved in 2023, which exceeded our expectations in most cases and we continue to be confident in our strategic road map. We look forward to further progress in 2024 and beyond.
Thanks again for your time and I'll now hand, it back over to John for his closing remarks.
Thanks, Bill I'll begin my closing remarks by covering the near term outlook for our key end markets on slide 19.
We remain optimistic about the prospects for continued growth in Europe, North America rail infrastructure markets, particularly.
Particularly given the increasing customer emphasis on real estate ft fuel savings and operating efficiency.
Funding for the U S programs have proven over the last couple of years has been slowly make its way through the system.
We began to realize some of these project related business activities in 2023, and we expect them to trend to continue moving to 2024.
As previously mentioned, our UK rail technology service business to continue to face difficult market conditions.
With weaker demand levels and ongoing disruptions liquidity disruptions.
With some customers the U K construction market has been very challenging over the last year.
So we continue to assess this business in light of ongoing weakness.
As Bill mentioned, we completed our restructuring program in the U K in the fourth quarter to help bring our costs in line with current current commercial environment.
Although conditions are challenging they appear to be showing some signs of bottoming out.
This is a top focus for myself and the team and we will continue to monitor the situation and financial.
Sure.
Moving away from the U K, we believe the eight portfolio actions completed over the last few years allow for a more focused effort to grow our core businesses and serve.
Infrastructure markets with strong ongoing demand.
In our infrastructure business, we continue to see strong demand in precast concrete.
We are focusing on expanding our reach both geographically and through proprietary technology and our product licenses.
A good example of this as Bill mentioned is our acquisition of the operating assets of Cougar Mountain LLC, which was completed during Q4.
The acquired business was integrated into our Boise, Idaho precast operations and included already rock product license or expands.
Our precast offering integrator voicing market.
One on <unk>.
North America British business saw some challenges with obsolescence of our bridge grid desktop. We believe that we are now positioned to better support our customers, while focusing on more innovative solutions.
Finally, we will also continue to see similar crude demand activity in our protective pipeline coatings business.
In summary, despite the isolated challenges we face in the UK, we believe our overall prospects for profitable growth remains strong in light of the infrastructure and vessel Super cycle, which we expect to continue for years to come.
I thought I'd begin to wrap up today's call within our investment thesis, which is supported by four compelling pillars.
Pillars.
First we have taken strategic steps necessary to begin transforming helping foster resulting in structural improvements in profitability.
On our 2023 results and the 24 guidance we provided today.
We reported strong organic growth in 2023, and we believe we represent an infrastructure pure play with multiple avenues for growth and investment Super cycle first.
It is clearly needed in our served markets.
Third we delivered exceptional cash flow in 2023, and our capital light business model, coupled with improving profitability suggests a favorable cash flow outlook.
And finally, we have a disciplined capital allocation approach with multiple levers that are disposable several of which have not yet been fully deployed.
Our strategic execution, along these four pillars translate into improved financial results to 2023.
With these pillars in place we are confident in our prospects for the future.
Turning to slide 21, we closely we are closely monitoring the potential royalty philosophy to be added back to the Russell 2000.
Which was which will be reconstituted the spring.
As you recall, we were removed from the index back in 2021.
When the current index was reconstituted in May of 2023.
Got off market cap was approximately $160 million.
Our market cap at that time was $125 million.
Over the last year, our stock price has appreciated over 90% compared to approximately 8% for the Russell 2000.
And our current market cap today stands at approximately $260 million.
We believe that the Russell 2000 was reconstituted today.
We would be included in the index, which should translate to increased interest in the stock.
In our strategic transformation.
It is now in play.
In closing I would like to thank the team for their great work and exceptional results delivered in 2023, we've made substantial progress since we rolled out $25 aspirational goals of $600 million of sales and a $50 million of adjusted EBITDA back in 2021.
We now have a clear line of sight and steps we needed to achieve those goals the companys energized going into 2024, and we continue to build momentum.
Yeah.
And finally in the recent past, we unveiled our new company core purpose, we innovate to solve global infrastructure challenges with this tagline team to launch of our new brand identity and global web site, including the New L. B Foster logo, which is now visually represents the momentum of our business and connects our business. We are today with the aspiration.
As we have for the future.
Is this focus on innovation and relentless ambition to solve complex problems that continues to drive our people in the company move toward.
Thank you for your time and continuing interest in how we foster I'll turn it back to the operator for the Q&A session.
Thank you and as a reminder, please press star one one to get into queue and wait for your name to be announced to withdraw your question simply press star one again standby, while we compile the Q&A roster.
Sure.
One moment for our first question.
Okay.
And it comes from the line of Chris Sakai with singular research. Please proceed.
Yes, hi, good morning.
Chris Good morning.
Good morning, I had a question on <unk>.
Gross profit margins for our rail technologies and services and infrastructure solutions.
It looks like rail technologies had a decline in infrastructure had had a gain.
Where would we see these going in 2024.
Alright. Thanks.
Thanks, Chris for joining us and thanks for your questions today I really appreciate it so the big picture is <unk>.
The gross margin expansion of 270 basis points, which is 20.
27% for the full year, so we had some puts and gains as well as some other contraction but.
Bottom line is the portfolio moves that we've done over the last two years has really really helped our position and moving forward. So we're seeing some normalization happening in the margins and I don't want to give our team a lot of credit for out there for stabilizing supply chain and going out and getting price in line with market.
Physicians today.
Maybe ability to give a little more detail on where we can share with Chris on the specifics.
Yeah, Chris Hi, Thanks again for the question what I would say is the rail side of the business, we had a bit of a challenging Q4.
Volumes were a bit weaker with rail distribution and then the U K business clearly some headwinds there.
I think I mentioned in the comment.
Our prepared remarks that we wouldnt expect the UK impact to be as significant moving into 2024. So we expect they will stabilize.
And improve moving into 2024 op acute Q4 for sure.
And then on the infrastructure side.
The overall improvement that was realized across the board both steel products as well as pre cast very strong margins in our legacy business in particular in our precast business.
And we expect that there'd be sustained moving into 2024 as well so a little weaker in rail and the rail side in Q4, but we expect to improve moving into the year and the sustained gains in infrastructure should be held into the new year as well.
Okay sounds good thanks for that.
With continued good cash flow do you anticipate reducing debt further.
Okay. Thanks for bringing that to our attention we were very pleased with the fourth quarter and.
In fact, the whole second half of the year, our cash generation was outstanding.
I want to give the team a lot of credit T J currency and the Treasury Department working with respect to commercial teams are really getting after things.
We didn't have the best dark years first cash cash generation and if you look at early 2023 by the second half was nothing short of outstanding they come up with them.
Improving our operating ratio from two eight to $1 seven so.
Yes, we're going to continue to watch that Bill mentioned in his remarks.
We do have to every user blue of cash right now.
As you know were seasonal business, Chris So we're going to have to build up some of the inventories.
To get after Q2, and Q3, specifically, because that's where the big ramp in revenue happens but.
In general are not going to lose our gains year over year.
And the focus of cash management teams spread throughout the company.
We're doing a very good job of managing those levers.
Okay.
Okay, great. Thanks.
Thanks, and as a reminder to ask a question simply press star one one to get in the queue.
Okay.
One moment for our next question.
Yes.
And it comes from the line of Alex Rygiel with B Riley Securities. Please proceed.
Thank you John and Bill nice quarter.
Thanks, Alex.
A question here with regards to sort of your 2025.
Good.
How confident are you or how does that confidence changed at all as it relates to 2025 target now that youre through 2023 and have a little bit better visibility into 2024.
Yes, thanks for the question.
I think I shared with you in the past when we came out of the aspirational goals.
He was really kind of really setting the pace centers, so everybody understand we aspired to be something different.
But I will tell you whats going on with respective to the business. We are today and will be coming in that infrastructure pure play and the monies, we're starting to see funneling through the.
The government into the respective states and cities.
As well as the other grant money, we're really feeling very good about our opportunities.
Helping our customers as it relates to safety and operation operational performance as well as reliability the company set up well the products and services we have today.
Its really leveraging that.
Type of activity business that honestly back to 'twenty one when we put these schools in place we were wasn't really understood. How we're going to get there, but today, we feel very very good about it.
And just getting those transactions that we did both to bringing in a couple of businesses Spansion score IV as well as scratch, but also giving some of the noise out of the system with respect to so many of the businesses divested. It really gave the management leadership team a strong focus of work for what we need more poorly who we are.
And where we need to go sell.
We have a pretty well laid out here between the next couple of years, what we need to do it.
To be in line with those aspirational goals and I feel better about it today than I ever have.
That's great.
Kind of.
Continue on that topic.
EBITDA margins margins here generally improving guidance as it relates to margins are improving.
But there is kind of a notable step up in your expectation for.
Adjusted EBITDA margins in 2025 target up to you.
A very strong respectable 8% okay.
Any any thoughts comments on how we sort of make that step up is the continuation of a mix shift tiers that improve.
A couple of them.
Yeah.
Couple of things is not necessarily volume per plan I'll, let bill stepping in there. So let me tell you from my point of view first is.
Number one we did 31, which was the top side of our <unk>.
Guidance for the year and the top side of our guidance for 2000 $24 million to $39 million.
And then how do we get to that next step I think is what youre, saying.
And the reality is much of it is in play here in North America, where we have to do.
We will continue to do is manage those headwinds in the UK.
That's where we saw some things in the last couple of years, where.
The reality is we have taken away from where we need to get to not necessarily from a technology innovation point, you did great, but the markets have been depressed there.
So the focus from my team and myself as well.
Make sure that they stay in line and we get them to a position where they can contribute to the greater companies release EBITDA and the rest of it will fall in place from there.
Bill you want to add any color to that.
Yes, Thanks John.
Thanks for the question Alex.
The thing I would say from a from a bridge point of view is thinking about the midpoint of our guidance as kind of a baseline for 2024.
As we've talked about we're investing in.
Organic growth opportunities that we have in front of us for 2024 that will create revenue lift in 2025, along with the strong demand cycle, we expect to be there and our broader infrastructure markets.
We're thinking that results in something like 10% growth.
Going from 24 to 25, if you use the midpoint for.
For the 2024 number and then ultimately it's a 22% EBITDA margin on that growth to get up to $50 million target that we have out there and when you think about that growth coming from rail technologies as well as our precast business, which is where the primary drivers of our growth will be.
Those are going to be at a higher margin profile than our overall average for sure and we absolutely feel like we can get SG&A leverage from 24% to 25% because those opportunities are not going to require a significant amount of SG&A investment to get it. So we have a pretty clear view of what it will take.
To get there we've got the programs in place and we're laying the groundwork now this year to be able to create that step change from 'twenty four to 'twenty five.
Very helpful. Thank you very much good luck.
Thanks Al Thank you.
No further questions in the queue I will turn it back to John for final comments. Thank you Connor and thank you everybody for joining us today and as I close out the remarks, thanks to the team it'll be foster.
Our strong performance, especially as we came into the second half of the year.
We're setting ourselves up for in my mind.
Again to be a transfer transformational year in 2004.
And getting in line with those aspirational goals of 25, which are again part of the journey, we're not doing that.
Consider ourselves to be done to hit our aspirational goals, we'll get close back in 'twenty five and beyond.
I'd also like to give a shout out to the board of directors with the leadership of rape effort.
Which made our job much much easier Ray has done an excellent job of transforming the board refreshment, bringing in new directors that really are lined up to the strategy hold management accountable.
And it's really made.
Something very very compelling as far as just a really strong team are moving for so many thanks to rate.
And the work he's done, making our life, a lot easier and providing them.
Wisdom guidance and experience.
That is going to help us continue to move along this transformational journey.
So with that thanks again for everybody joining us today, we look forward to catching up with you.
At the close of this Q1 take care be safe.
And thank you all for participating and you may now disconnect.
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