Q1 2024 Flotek Industries Inc Earnings Call
Good morning, ladies and gentlemen, and welcome to the Flotek industries first quarter 'twenty 'twenty four earnings conference call. At this time all lines are in a listen only mode. Following the presentation. We will conduct a question and answer session. If at any time. During this call you require immediate assistance. Please press star.
Zero for the operator this call is being recorded on Wednesday may eight 'twenty 'twenty four I would now like to turn the conference over to Michael Kelly Director of Finance. Please go ahead.
Michael Critelli: Thank you and good morning, everyone. We appreciate your participation in the Flotek <unk> first quarter 2024 earnings conference call.
Michael Critelli: Joining me on the call today are Ryan is L Chief Executive Officer, and Barnacle net Chief Financial Officer.
Michael Critelli: First we will provide prepared remarks root.
Michael Critelli: Concerning our business operations and financial results for the first quarter 2024, as well as guidance for the full year 2024. Following that we will open up the call for any questions you have.
Michael Critelli: <unk> first quarter 2024 financial and operating results press release was issued yesterday afternoon. We also posted and updated Q1 earnings presentation that we will be referencing on today's call.
Michael Critelli: These can all be found on the Investor Relations section of our web site.
Michael Critelli: In addition to our in addition, today's call is being webcast and a replay will be available on our website. Following the conclusion of this call.
Michael Critelli: Please note that the comments made on today's call regarding projections or expectations for future events are forward looking statements forward looking statements are subject to a number of risks and uncertainties many of which are beyond our control. These risks and uncertainties can cause actual results to differ materially.
Michael Critelli: From our current expectations, we advise listeners to review our earnings release and risk factors discussed in our filings with the SEC. Please.
Michael Critelli: Please refer to the reconciliations provided in the earnings press release and corporate presentation as management will be discussing non-GAAP metrics on this call.
Michael Critelli: With that I'll turn the call over to our CEO Ryan as though.
Ryan: Thank you, Mike and good morning.
Ryan Gillis Ezell: We appreciate everyone's interest in Flotek and for joining US today as we discuss our first quarter of 2020 for operational and financial results.
Ryan: I'm pleased with our first quarter 2020 for performance and even more energized about what's to come this year.
Ryan: Without a doubt 2023 was a transformative year for the organization, but 2024 will be the beginning of a revitalized flotek demonstrates consistent profitability and expansion and shareholder value as we accelerate into a new era of differentiated chemistry and data analytic solutions.
Ryan: There is no company better positioned to provide strategic solutions to a variety of our industry's most challenging problems, whether it's operators solving for complex completion challenges such as increased water production and reduce B O E.
Ryan: Pumping companies looking to advance their differentiation through maximizing utilization for oil and gas operators racing to meet the new EPA regulations, where their unique real time measurement technologies.
Ryan: There's never been a more exciting time to be at Flotek.
Ryan: With that in mind I'd like to turn to slide seven I touch on our key highlights for the quarter and Bob will discuss in detail in just a moment.
Ryan: We delivered significant year over year improvements in gross profit adjusted gross profit and adjusted EBITDA, leading to the third consecutive quarter net income and 11th consecutive quarter of improved adjusted EBITDA as a percentage of revenue.
Ryan: Notably Q1, 2024, adjusted EBITDA surpassed the total for the entire year of 2023.
Ryan: We realized gross profit margin and adjusted gross profit margin of 22%, 25% respectively.
Ryan: Our Q1 2020 for external chemistry sales were the highest achieved in the first quarter. Since we began this turnaround over three years ago. It was up 27% year over year.
Ryan: Although down sequentially. This pattern is consistent with the first quarter in each of the last three years as well as average fleet count in Q1 were down sequentially.
Ryan: Our data analytics segment saw 18% quarter over quarter revenue growth. Thanks in part to our continued progress and data as a service revenues.
Ryan: In addition to this progress we continue to push forward with the field testing of our new Calix spectrometer, which is still on track for a mid year 2024 release.
Ryan: And most importantly, all of these achievements were accomplished with zero recordable and lost time incidents as in the field of operations extending blow takes current strict over 843 days without a recordable accident.
Ryan: Now I'd like to take the time to thank every single employee for their commitment to safety and service quality and achieving these outstanding results.
Ryan: Spect us to continue to build upon this momentum throughout 2024.
Ryan: Now looking at the quarter in more granularity revenue was slightly down sequentially. This decrease is mostly attributable to lower external Kim's yourselves versus Q4 2023.
Ryan: We have observed this consistent seasonality since the organization began its strategic turnaround over three years ago.
Ryan: At a detailed glance on slide nine.
Ryan: Q1, 2020 for external chemistry revenues were up 27% versus Q1 of 2023.
Ryan: This was the largest Q1 revenue reported for external chemist yourselves during the last three years with the lowest average Frac fleet counts in North America land during the same period.
Ryan: This indicates we are gaining market share through each annual cycle of fleet count stabilization by the execution of our corporate strategy utilizing chemistry as the common value creation platform.
Ryan: We are seeing continued adoption of our prescriptive chemistry management business model that Leverages, our customized engineering approach combined with our proprietary complex nano fluids technologies to deliver wells did outperform adjacent competitor wells.
Ryan: Flotek will remain at the forefront of innovation, a multi disciplinary advance that as we bring new technologies to the market, including AI driven reservoir modeling to address the impacts of water imbibition drive preferential microfluidic behavior, it narrow poor environments and improved ultimate recovery of hydrocarbons.
Ryan: For each asset.
Ryan: We expect a substantial increase in our external customer chemistry sales during the second quarter and anticipate total annual external chemistry growth for 2024 does.
Ryan: To that note April external Kim's yourselves have already achieved over 70% of what we did in all of Q1 of 2024.
Ryan: We realized 19% sequential growth in our pro Frac related revenue.
Ryan: The Cambridge, who purchase requirements contained in the long term supply agreement with pro Frac were designed to mitigate the volatility of the market and provides some insulation to flotek operations for maintaining economies of scale and operational stability.
Ryan: Our partnership continues to evolve into a truly transformational all free for E&P operators in regards to efficiency and overall reservoir performance.
Ryan: Our data analytics segment revenues increased 18% from the fourth quarter of 2023.
Ryan: Our continued success in converting to a data as a service model combined with the launch of the next generation J P. Three measurement system continues to unlock significant upstream market opportunities as a company expects the data analytics business to grow by 50% in 2024.
Ryan: On a more macro level the demand for oil and gas is expected to expand for the next decade with further requirements needed through 2045.
Ryan: Long term investments in both short and long barrels cycles will be necessary to maintain production and add the required incremental supply.
Ryan: And despite near term volatility in commodity pricing the fundamentals for energy related services remains strong.
Ryan: And for the first time in nearly two decades, the demand for electricity in the U S required.
Ryan: Over 15% by 2030 with natural gas, providing over 40% of the current demand.
Ryan: The overall expansion of the global economy will continue to create substantial demand for all forms of energy, which will increased service intensity within our sector.
Ryan: As we look at the remainder of 2024, our efforts remain laser focused on revenue growth market share expansion cost efficiency gains and returns our shareholder value as we are well positioned to capitalize on opportunities both domestically and internationally.
Ryan: We are confident that our expanding suite of services positions us to provide unique and superior solutions to maximize our customers' value chain.
Ryan: Now I'll turn the call over to bond to provide key financial highlights.
Bond: X Ray and good morning, everyone.
Bond: Our first quarter 2024 results reflect solid performance despite relatively soft oils.
Bond: Service demand related to natural gas direct to completions.
Bond: While revenue was impacted by seasonality and lower Frac fleet activity. We grew margins and continued the trend of improving financial results highlighted by another strong quarter of adjusted EBITDA.
Speaker Change: Let me run through a handful of key financial items for the first quarter of 2024, I'll be referring to slides in the presentation that we posted to our website yesterday.
Speaker Change: Slide seven highlights our first quarter accomplishments and our strong financial improvement we delivered.
Bond: Headlining our results were year over year growth in net income of $11 million when adjusting for noncash gains in the first quarter of 2023.
Bond: Gross profit increased by $6 9 million adjusted gross profit was higher by $7 4 million and adjusted EBITDA improved by $7 9 million.
Bond: Regarding revenue for the quarter, we reported total revenues of $40 million, which was down versus the first quarter of last year.
Bond: This decline was attributable to lower related party activity associated with pro Frac that was partially offset by 27% increase in revenue from external chemistry customers.
Bond: As Ryan mentioned earlier and showed on slide nine we've experienced a decline in first quarter external chemistry revenues in each of the past three years base.
Bond: Based on current projections and a strong start in April we expect a significant jump in external customer chemistry revenues during the second quarter.
Bond: As a reminder, external chemistry revenue increased by 68% during the second quarter of last year as compared to the low point in the first quarter of 2023.
Bond: With respect to data analytics, we generated strong growth in this segment as revenues associated with J P. Three increased 18% sequentially.
Bond: We expect growth in data analytics revenue to be weighted toward the second half of 2024, which is in line with our expectations for the timing of the commercial deployment of our new analyzer.
Bond: Moving to slide 10 fourth quarter gross profit increased for the fifth consecutive quarter first quarter gross profit grew by $7 million or nearly 400% compared to gross profit of just $1 9 million in the comparable period of 2023.
Bond: It's important to note that the minimum kidney chemistry purchase requirements and our supply agreement were in effect during the first quarter of 2024, but not the first quarter of 2023 as the measurement of the minimum purchase requirements began on June 1st of last year.
Bond: The additional revenue from our supply agreement requirements combined with our continued focus on cost improvements allowed us to generate strong margins during the quarter.
Bond: Touching on a few specific examples of how we're continuing to improve margins during the first quarter, we reduced freight costs as a percentage of revenue by roughly 50% versus the same quarter of last year. As a result of numerous initiatives executed over the past year included eliminating dedicated trucking and utilizing strategically placed staging yards to allow us.
Bond: To improve the efficiency and last mile deliveries.
Bond: Over the past year, we have also made great improvements in how we purchase materials.
Bond: We've consolidated vendors to leverage our spend to negotiate better pricing and rebates we.
Bond: We've also focused our efforts on buying direct in order to eliminate costly layers of middleman margins to reduce the highest spend on our P&L.
Bond: Quickly on SG&A, our first quarter SG&A declined to $6 1 million, which was about a 6% improvement compared to the same quarter of last year and sequentially.
Bond: This decline was a result of lower personnel cost and professional fees.
Bond: Moving to slide 11, adjusted EBITDA was positive for the third consecutive quarter, an increase of $7 9 million compared to the first quarter of last year. This.
Bond: This was the 11th consecutive quarter of improvement in adjusted EBITDA, a streak that goes back to the second quarter of 2021.
Bond: Going to the bottom line reported negative net income of $1 6 million in the first quarter compared to a net loss of $9 3 million during the first quarter of 2023, when adjusting for 31 million in noncash gains.
Bond: Touching on the balance sheet at March 31, we had $3 1 million drawn on our ABL, which was $4 4 million lower or a 58% reduction than we had at year end as a result, our debt to trailing 12 month adjusted EBITDA moved down to three times as of March 31.
Bond: Quickly commenting on our 2024 guidance, while we did not give specific revenue guidance for 2024 due to uncertainty around the timing of improved natural gas pricing and the corresponding impact on completion activity. We expect that first quarter revenues will mark the lowest quarter of the year and we believe that annual 2024 revenues will.
Bond: Approximate last year.
Bond: As a result of the positive impact of the numerous cost reductions implemented in our full year measurement period during 2024 related to the minimum chemistry purchase requirements, we anticipate a substantial increase in margins compared to 2023.
Bond: Based on current projections, we expect our 2024 adjusted gross profit margin to range between 18 and 22%.
Bond: Which compares very favorably to our 2023 adjusted gross profit margin of 15%.
Bond: With higher margins expected, we anticipate 2024, adjusted EBITDA to range between $10 million and $16 million, which.
Bond: Again as a significant increase over 2023, adjusted EBITDA of just $1 5 million.
Bond: In closing Flotek continues to drive strong repeatable performance focused on resilient profitability.
Bond: Based on the current slope of the curve for natural gas pricing, we anticipate higher completion activity as we move into the back half of the year.
Bond: However, in the event that activity levels remain flat throughout the year, our first quarter results demonstrate our resiliency as we achieve strong margins and bottom line growth in a quarter of relatively light activity.
Bond: With that I'll turn the call back over to Ryan to close it out.
Ryan Gillis Ezell: Thanks, Bob.
Ryan Gillis Ezell: Turning to slide 19, we were extremely excited about 2024, as we have tremendous growth potential in both our chemistry and data analytics segments, and we believe that flotek represents a compelling investment opportunity today.
Ryan Gillis Ezell: Our first quarter results deliver profitability and we continue to be positioned for sustained growth as a collaborative partner of choice for sustainable chemistry and data solutions.
Ryan Gillis Ezell: I'm proud of the progress that we've made and I'm confident in our ability to execute going forward we.
Ryan Gillis Ezell: We appreciate the continued support of all our stakeholders and we hope that you share our excitement regarding the future of Flotek and we look forward to reporting further progress.
Speaker Change: Operator, we are now ready to take questions.
Speaker Change: Thank you.
Speaker Change: Ladies and gentlemen, who will now begin the question and answer session should you have a question. Please press star followed by number one on your Touchtone phone, who you'll hear a problem. That's your hand, that's been raised should you wish to decline from the polling process. Please press star followed by number two if you're using a speaker phone. Please leave behind said before pressing on it.
Speaker Change: Keith.
Speaker Change: One moment. Please for your first question.
Speaker Change: Your first question comes from the line of Jeff Grant from Alliance Global Partners. Your line is now open. Please ask your question.
Jeffrey Woolf Robertson: Good morning, guys.
Jeffrey Woolf Robertson: First a question on a question on J P. Three specifically as it relates to the the E. P. A regulatory approval you guys are working towards any kind of update on the timeline, there or guesstimate as best you can provide today and then.
Jeffrey Woolf Robertson: I'm wondering what you guys, who are thinking or expecting in terms of the adoption curve or pace that you might expect from that if and when you do get that approval.
Speaker Change: So right now we're happy with our progress and continued interaction with the EPA.
Speaker Change: Tom and the team are doing a phenomenal job there, but right now we're expecting the adoption of the EPA to come in line with regulations about the time that our production comes a lot about mid year.
Speaker Change: So I think we're making solid progress on both those fronts.
Speaker Change: It wasn't been really exciting is we're continuing to see massive adoption of our data as a service as a percentage of revenue. If you look back at Q1 of 'twenty three data as a service was about 23% of our revenue.
Speaker Change: In Q1 of 'twenty four it was almost 50% so significant opportunities there and I think as is our you know the calix model, which is our new Ginger measurement unit comes online into production of all seen by the middle of the year I think where we are the regulatory body with EPA will be right in line with that.
Speaker Change: If you could give us a boost in the back half of the year.
Speaker Change: Alright, it sounds good I appreciate that and for my follow up more of a capital allocation question given the modest debt you guys have in the capital light model.
Speaker Change: And then obviously a transition to becoming a more meaningful kind of EBITDA cash generative company. How do you guys kind of think about you know kind of reinvesting that potentially in the business or looking at M&A or any other kind of options on the table you guys might be considering.
Speaker Change: So a couple of things that we're doing is.
Speaker Change: For the first time since I've been here, we've invested into some.
Speaker Change: Some trucking capitalization components will be bringing in quite a few who have some long haul long haul trucking or our chemistry to deliver in basin, which would be some capital allocation. This will provide a significant amount of savings at our logistics costs were also continue to spend some capex and J P. Three.
Speaker Change: <unk> been building units to support the growth in the back half of the year, particularly on the data as a service model and we're continuing to evaluate.
Speaker Change: Potential opportunities around M&A I do believe that when you look at the fragmentation in the canvas free markets and opportunities there compared to totally to the firm handle on the E&P side.
Speaker Change: Potential opportunities to look at some consolidation mechanisms there or when we look at advanced mis at bringing in some new technologies on the J P. III data analytic side of the business. So we are we are continuing to evaluate opportunities. There. The biggest thing on use of proceeds there needs to be extremely accretive to the organization with most things that we put capital into.
Speaker Change: Absolutely great sounds good thanks for the time.
Speaker Change: Yes, Hi, Jeff.
Speaker Change: Your next question comes from the line of Don Crist from Johnson Rice. Your line is now open. Please ask your question.
Donald Peter Crist: Good morning, guys how are you.
Donald Peter Crist: Good morning, Doug.
Donald Peter Crist: I wanted to ask about the pilot project, obviously, it's been going for a while now and it appears that that customer is pretty pleased with the process. So far but have you had any other kind of field trips with other operators going out.
Donald Peter Crist: In the sensor and kind of seeing the progress that's being made there.
Donald Peter Crist: Is there anything to extrapolate between other.
Donald Peter Crist: Are there potential sales there versus just the company doing a pilot with.
Donald Peter Crist: Yeah. So we've had quite a bit of expansion in that Don and I can't I can't necessarily drop the exact names of the customer basis, but what I would tell you is as we've seen expansion in monetary build gas.
Donald Peter Crist: Seeing an increase in the number of customers looking at monitoring players in real time.
Donald Peter Crist: Also seen an exponential increase in the field trials and process validation, we have randall chain of custody measurements and multiple.
Donald Peter Crist: Fielded geographic location. So we're really excited we got in the double digit number of units deployed in these different areas, particularly running the Calais expect travelers, who is faces and making sure that typically we got it and in line with our former Barrick's unit to make sure everything is lined out run effectively we're really excited about.
Donald Peter Crist: This and.
Donald Peter Crist: The opportunities continue to come to us and.
Donald Peter Crist: Where were hard to pursue these.
Donald Peter Crist: Okay.
Donald Peter Crist: Okay and.
Donald Peter Crist: As you look to ramp up I mean, obviously the opportunity set is as significant in front of you assume everything goes to plan, but as you look forward any any significant capex requirements or anything to.
Donald Peter Crist: To build out the larger amount of sensors that you would need or is that kind of in place already.
Speaker Change: So we in alignment right now where we were forecasting the growth just in say 2024 that that 50% range, we've dedicated capital to Frontload, a little over $2 million.
Donald Peter Crist: To advance the build on units now that $2 million goes further.
Donald Peter Crist: And building the Cal excuse because they have a much lower cost base than the original <unk> unit.
Donald Peter Crist: So it's a solid improvement there and then we're kind of going through the process is now where the adoptions that we're expecting with the EPA.
Donald Peter Crist: How much additional capital we will bring forward in the early parts of 2025 looking at the growth there.
Speaker Change: Okay, but it's not significant at this point no.
Donald Peter Crist: I would say it because like I say when you have a.
Donald Peter Crist: A substantial drop in the cost of the units versus you know, let's put two and a half million we could bring quite a few quite a few units all between now and the end of the year Yeah, Don you'll remember that was the important thing about moving to this next generation of analyzer, because the costs are roughly 50% to 60% less than the previous generation.
Donald Peter Crist: Right exactly.
Donald Peter Crist: And I know in the past you've you've sold these units.
Donald Peter Crist: But you're trying to shift over to more of a of a.
Donald Peter Crist: Subscription models.
Donald Peter Crist: Any positive or negative.
Donald Peter Crist: Sure.
Donald Peter Crist: Influence or.
Donald Peter Crist: Feedback from customers on either way I mean are people still wanted to buy these are they more happy with with the subscription model with you.
Donald Peter Crist: Making sure everything is running properly going forward.
Speaker Change: Yes, that's a great question I think when we look at it it depends on if you're an upstream midstream or downstream applications.
Donald Peter Crist: So it would be more of the golden applications in the midstream part.
Donald Peter Crist: A lot of the customers that we continue to expand business with preferred.
Donald Peter Crist: The capital purchase just because of how the year is utilized.
Donald Peter Crist: We're saying that is the predominance in the upstream business to be.
Donald Peter Crist: Plus percent.
Donald Peter Crist: In terms of either one a data as a service model or a hybrid type service with a large subscription based model with a minimal capital investment upfront for the installation so.
Speaker Change: I think it kind of depends on the application.
Donald Peter Crist: But you know pretty.
Donald Peter Crist: Pretty much the bifurcation is heavy all subscription based and upstream.
Donald Peter Crist: Still below preference to the capital purchase and the midstream part.
Donald Peter Crist: Yes, Dan Ryan gave some stats on the percentage of revenue from das versus capital sales <unk> versus <unk> <unk>.
Donald Peter Crist: Included in those percentages when you look at just pure das revenue.
Donald Peter Crist: Quarter over quarter. It is up 30% first quarter 'twenty four versus first quarter 'twenty three so people are migrating to the das model certainly.
Speaker Change: That's a that's good to hear it's much more sustainable and it gets a higher multiple I appreciate the color guys I'll I'll turn it back.
Speaker Change: Alright. Thanks.
Speaker Change: Your next question comes from the line of Eric Frankel from Firestorm Capital. Your line is now open. Please ask your question.
Eric Benjamin Swergold: Good morning, and congratulations on your hard fought progress.
Eric Benjamin Swergold: There, especially there are a number.
Eric Benjamin Swergold: Theres been a number of industry piece is talking about the use of AI in the E&P space can you speak to how your data analytics and chemistry segments fit into this new AI framework for E&ps. Thanks.
Eric Benjamin Swergold: Yes.
Speaker Change: This is this is actually a real I would say exciting frontier for us Eric is that.
Speaker Change: Initially most of the AI oriented activities that were doing were around our Kim a metric modelings of things that we're doing at the J P. Three side.
Eric Benjamin Swergold: Leveraging that large database of crude samples that we've had over the last five years to seven years and so there's a lot of advancements that we're making to accelerate the accuracy the models accelerate.
Eric Benjamin Swergold: The group fits, particularly when you look at I'll say these chain of custody and rebate pressure measurement and stuff that we're doing there and continues to be a large part of that.
Eric Benjamin Swergold: What's been really exciting is we took a step back and said hey, if you'd been in innovative chemistry company with 200 patents and the advanced reservoir.
Eric Benjamin Swergold: Technologies component when you look at some of these influences at the nano poor level and what goes on with service interact subsurface interactions.
Eric Benjamin Swergold: We've completed over 20000 wells and we have production data.
Eric Benjamin Swergold: <unk> modeling for these things so we've gone in and now using AI to actually take these datasets crush them create cubes of different datas with that it is advancing at how we look at the performance of our chemistry to make small formulation changes and actually advance.
Eric Benjamin Swergold: Where we're going to be in the future and what I consider to be improved.
Eric Benjamin Swergold: Improved oil recovery for the total life of the asset. So I think it is playing a central part for us to accelerate.
Eric Benjamin Swergold: Our technology and that thinking that we do on both the chemistry and the data side and when it is starting to do is really create an amount of synergy and a unique platform I think to flotek that we're gonna be talking quite a bit about.
Speaker Change: Some of the upcoming events, we have at the Louisiana Energy Conference and what we're going to talk about Entercom and Denver later in August we're going to be presenting some of this work.
Speaker Change: Sounds good thanks, very much guys keep it up.
Eric Benjamin Swergold: Your next question comes from the line of Vijay Cook, an individual Investor. Your line is now open. Please ask your question.
Vijay Cook: Hey, guys. Thanks for taking my call Vijay with singular research.
Vijay Cook: You had talked about.
Vijay Cook: External chemistry this year.
Vijay Cook: We expect it to increase here, but I know as determined on buying quite a bit I'm just curious.
Vijay Cook: You guys anticipate.
Vijay Cook: We are adding new.
Vijay Cook: External operators to your platform.
Speaker Change: Yes, 100% I mean, the biggest part we look Alex short chemistry is we have we've seen the 10 year being here, our seasonality shift a little bit from what used to be Q3 to Q4 now with a little bit Alex here would be the capital discipline. The way to look at branch plans then.
Speaker Change: Ability to turn the spigot on and off here in the U S. We've seen some of that seasonality shift into Q1 and has traditionally been probably are our least active quarter on the on the external chemistry sales component of that but comparatively speaking over the 10 years that we've done this turnaround you've seen average frankly some of those quarters go down and our revenues continue to go up substantially.
Vijay Cook: It.
Vijay Cook: As you look at say for Q2 to Q4 through the rest of this year, we got a substantial we got a really healthy and robust pipeline and continued activity with a strong group of what we call our stickier customer base at quite a few new opportunities on the on the backside here is the adoption.
Vijay Cook: Our prescriptive chemistry management, and our understanding of reservoir technologies are coming into to prominence as youre starting to see a lot of these operators moving infill well design a downspacing on on how they do their completions.
Speaker Change: Great. Thanks, I appreciate that.
Vijay Cook: Yep.
Speaker Change: We don't have further questions at this time presenters. Please continue.
Speaker Change: Thank you again for joining us today Flotek CEO Ryan is that we will be participating on a service industry panel at the Louisiana Energy Conference on May 29th 2024 at four P. M.
Speaker Change: He will be joined by CFO bond commenced in hosting meetings with investors and a copy of the presentation will be used in the discussions with.
Speaker Change: With the investors will be available on the corporate website prior to the event, we look forward to meeting with you. Thanks.
Speaker Change: Thanks again for joining us today, please feel free to contact us if you have any additional questions have a great day.
Speaker Change: This concludes today's conference call. Thank you for your participation you may now disconnect.