Q1 2024 Orion Group Holdings Inc Earnings Call
Good morning, and welcome to the Orion Group Holdings first quarter 'twenty 'twenty four earnings conference call. All participants will be in listen only mode should you need assistance. Please signal conference specialist by pressing the Torquay followed by zero.
After today's presentation there'll be an opportunity to ask questions ask a question you May Press Star then one on your telephone keypad to withdraw your question. Please press Star then two please.
Please note. This event is being recorded I would now like to turn the conference over to Margaret Boys of Investor Relations for Orion. Please go ahead.
Margaret Boyce: Thank you operator, and thank you all for joining us today to discuss Orion Group Holdings first quarter 'twenty 'twenty four financial result, we issued our earnings release after market last night. It is available on the Investor Relations section of our website at Orion Group Holdings, Inc. Dot com.
Speaker Change: I'm here today with Travis Boone, Chief Executive Officer of Orion, and Scott <unk>, Chief Financial Officer on today's call management will provide prepared remarks, and then we'll open up the call for your questions before we begin I'd like to remind you that today's comments will include forward looking statements under the federal secured.
Margaret Boyce: <unk> thought forward looking statements are identified by words, such as will be intend believe expect anticipate or other comparable words and phrases statements that are not historical facts are forward looking statements, our actual financial condition and results of operations may vary materially from.
Travis J. Boone: Those contemplated by such forward looking statements discussion of these factors that could cause our results to differ materially from these forward looking statements are contained in our SEC filings, including our reports on Form 10-Q, and 10-K with that I'd now like to turn the call over to Travis Travis. Please go ahead.
Travis J. Boone: Right.
Travis J. Boone: Thank you Margaret and good morning, everyone and thank you for joining our first quarter 2024 conference call.
Travis J. Boone: I will start with a quick overview of our first quarter results as well as providing more color on the tremendous opportunities before us.
Travis J. Boone: I'll turn it over to Scott to cover our financial results.
Scott: We generated first quarter revenue of $167 million and.
Scott: And adjusted EBITDA of $4 $1 million.
Scott: We are continuing to focus on increasing our margins.
Scott: We expect revenue to build throughout the year with our current backlog and strong pipeline of opportunities.
Scott: In addition to first quarter being our seasonally slowest period.
Scott: Revenue was affected by reduced activity on two major projects related to scheduling impacts outside of our control.
Scott: These delays should not impact our critical completion of these large projects under contract or the total anticipated revenues or margins generated from these contracts.
Scott: It is normal in our construction projects for unexpected delays to occur.
Scott: We have strong project teams that are nimble and able to respond quickly to get the projects back where they need to be.
Scott: We expect to recover this work in the upcoming quarters with strong momentum in the back half of the year.
Scott: Based on the activity level that we are seeing first services, especially in marine construction, we are reiterating our full year 2020 for expectations for revenue in the range of 860 million to $950 million and adjusted EBITDA in the range of $45 million to $50 million.
Scott: We entered the first quarter with a solid foundation and a much healthier business.
Scott: After our hard work transforming the business throughout 2023, we are now in a position to reap the benefits.
Scott: We have put disciplines processes and procedures in place XP.
Scott: Our expectations are crystal clear for our teams and everyone is aligned on the same mission delivering predictable excellence through outstanding execution.
Scott: We invested in strategic growth and have vastly improved our business development team and processes.
Scott: Finally, we strengthened our balance sheet and monetize noncore assets. These changes are driving energy and momentum throughout the organization.
Scott: The best way to major opportunity as our pipeline and account of all potential projects we might pursue.
Scott: And just over a year our pipeline of opportunities has grown from $3 billion to over $11 billion.
Scott: The increased volume in large part reflects the investments we have made in our business development efforts that are gaining real traction.
Scott: In addition, the marine construction industry is exploding and we are intensifying our attention on that market.
Scott: In the coming years, we believe demand for specialized construct construction could exceed supply.
Scott: The diversity of both projects and funding sources overlaid with our geographic footprint and areas of expertise. It gives me great confidence in our ability to win new contracts and drive growth.
Scott: Given the number of quality projects in this space that Orion is unique capabilities, our energy and focus will mainly be on capitalizing on marine construction opportunities.
Scott: We expect dredging to remain an integral part of our marine business as we grow but it will be a smaller portion of our revenue in comparison to marine construction.
Scott: Strong secular trends are driving these opportunities and here are some examples.
Scott: The $1 two trillion infrastructure Bill will provide a multiyear catalyst for public sector projects, such as transportation funding ports waterways water infrastructure and bridges among other things.
Scott: The government is planned 6 billion reports and waterways and $174 billion for roads bridges and major projects.
Scott: We are just beginning to see these funds start to flow and believe they will drive more projects in 2025 and beyond.
Scott: Second shifts or much larger today than they were at 30 or 40 years ago.
Scott: Expansion of the Panama Canal allows larger ships the past reports.
Scott: As a result infrastructure upgrades are required all along the eastern seaboard and the Gulf to expand ports and deepen channels.
Scott: The unfortunate key bridge incident in Baltimore shines, a spotlight on the infrastructure upgrades needed throughout the country to accommodate larger vessels passing through the ports.
Scott: The U S. Navy is spending billions and the Pacific deterrence initiatives to protect U S interests are.
Scott: Our project in Pearl Harbor, where we are a subcontractor to the $2 8 billion dollar joint venture team to build a dry dock for nuclear submarines is the largest construction project in the U S Navy history, but not for a long time.
Scott: The Navy is playing a much larger investment to revitalize the Puget sound Naval shipyard and other marine facilities in the Pacific.
Scott: We have a well established presence in the Pacific Northwest and we are now established in Hawaii, we intend to leverage this presence to capitalize on the 1 billion is being invested in the Pacific.
Scott: In February I attended the Navy's anchoring ceremony at Pearl Harbor.
Scott: The Orion team was honored to drive the first ceremonial pile on this critical Navy project.
Scott: We are now into our core construction activities and pile driving is continued by our crews.
Scott: We have been a critical part of the team on this high profile Navy project.
Scott: Based on our work in Pearl Harbor, we are in a strong position to compete for additional U S Navy contracts in the Pacific.
Scott: Finally, there is growing construction activity in the Gulf.
Scott: As I've mentioned before coastal restoration as a critical need in many areas and there's $10 billion planned by multiple agencies for coastal restoration in Louisiana alone.
Scott: Coastal restoration work typically includes a combination of both dredging and construction.
Scott: LNG methane and ammonia terminals are also being constructed to advanced Green energy initiatives.
Scott: These projects are a perfect fit for Orion, which is why we have invested there and opened a new office in New Orleans.
Scott: <unk> been engaged in these projects and expect more work in the future.
Scott: Many of our long standing private sector petrochemical plants are also planning major capital projects and we are engaged in planning and design with them and we'll be building these projects as well.
Scott: We expect to see project volume ramp up in 2024 through 2025, and the investments we are making to improve our fleet our systems and our teams will be and will enhance our competitive position.
Scott: Turning to our concrete business. We're also seeing strong demand drivers in this segment.
Scott: The centers are the necessary infrastructure for artificial intelligence.
Scott: And the number of AI driven data centers is expected to double in the next year.
Scott: North, Texas now ranked second among U S markets by inventory of data centers with 173% increase in the second half of last year.
Speaker Change: Well Ryan concrete is well established in this market and to date, we have already built or are building 19 data centers in Texas.
Speaker Change: Beyond Texas, we're also pursuing opportunities in Utah, Arizona, and Nevada through our strong relationships with general contractors working in those states.
Scott: Our competitive advantage is not only are.
Scott: Our experience in the high quality of our work.
Scott: But also our unmatched safety record, which is extremely important to the owners of these data centers.
Scott: For two years in a row, we've had zero lost time incidents and we have an extraordinary safety culture focused on our people going home safely every day.
Scott: While the data center market is booming we are seeing headwinds in our traditional developer driven concrete markets due to the persistently high interest rates with.
Scott: With commercial construction, taking a pause we are shifting our concrete resources to the data center market, while it is hot.
Scott: In summary, we've now set the company up for success and are focused on driving growth for the remainder of 2024, and then in 2025 and beyond.
Scott: Our leadership and platform are in place to capitalize on the immense opportunity ahead.
Scott: Looking forward, we expect the business to accelerate in the second quarter with a strong growth in the back half of the year.
Speaker Change: Before I turn it over to Scott I'd like to thank our retiring board member Richard There for his 17 years of service on our board.
Speaker Change: Richard has been with Orion since going public in 2007, serving as chairman for most of those 17 years.
Scott: He has been a valuable asset to both management and the board and will officially step down next month at our annual meeting of stockholders.
Speaker Change: We wish him the very best in his well earned retirement.
Speaker Change: I also want to encourage stockholders to cast your votes and participate in our virtual meeting on may 16th.
Speaker Change: You can find the details on the materials and on our website.
Speaker Change: I'll now turn the call over to Scott.
Scott: Thanks, Travis and good morning, everyone.
Scott: Starting with our first quarter financial results, we generated revenue of $167 million up 1% over last year.
Scott: As Travis mentioned, we experienced a schedule shift during the first quarter in two large projects.
Scott: And expect to recover this work over upcoming quarters in 2024.
Scott: While total revenue for the quarter remained largely flat compared to last year.
Scott: The mix of revenue changed dramatically with marine revenue up 34% and concrete revenue down 32%.
Scott: This change in mix reflects our focus on marine segment growth opportunities as well as the disciplined bidding standards, we adopted to win quality rote work at attractive margins in our concrete segment.
Scott: We have learned to walk away from work that doesn't fit us and director of energy to projects that deliver solid margins.
Scott: With the shift towards marine projects.
Scott: We are also increasing the average size of projects in our backlog.
Scott: To give you a sense of typical project size in our marine segment and $150 million project is right down the middle of the fairway for us.
Scott: And in our concrete segment.
Scott: That's about $30 million for a large project.
Scott: Data center projects in concrete may run between 20 and $50 million.
Scott: Targeting these larger projects ultimately gives us better revenue visibility over longer time periods.
Scott: We also gained efficiencies in managing resources for a large project versus many small projects.
Scott: Our goal is to have a more reliable and predictable revenue stream.
Scott: Three to four large projects rolling out over a one to two year timeline would help dampen some of the quarterly revenue fluctuations driven by job starts and completions.
Scott: At this time last year, we had just a couple of large projects in our opportunity pipeline today.
Scott: Today, our business development team is pursuing over 20 of these type of projects.
Scott: First quarter gross profit margin increased to 15, and a half million dollars or nine 7% of revenue.
Scott: Up from $5 8 million or three 7% of revenue in the first quarter of last year.
Scott: Both segments increased both gross margin dollars and gross margin percentage over the prior year.
Scott: The 600 basis point increase in consolidated gross margins was primarily driven by improved pricing of high quality projects and improved execution in both segments.
Scott: SG&A expenses were $19 million up from $17 million in the first quarter of 2023.
Scott: As a percentage of total contract revenues SG&A expenses increased to 11, 8% from 10, 7% last year.
Scott: The increase in SG&A dollars reflected greater spending in I T and business development as well as higher legal cost to pursue project related claims.
Scott: We are on track with our <unk> implementations.
Scott: And over the next several months, we will be rolling out new tools and processes for our operations and our back office.
Scott: We're implementing software tools that share information and provide status of projects improving our ability to effectively manage projects on the ground.
Scott: And migrating our business segments to the same financial platform will deliver efficiencies and greatly improve our line of sight across the entire business.
Scott: Turning to profitability, we reported an adjusted net loss of $4 million or 12 cents per diluted share in the first quarter.
Scott: Compared to an adjusted net loss of $10 3 million or 32 cents per diluted share in the prior year period.
Scott: This result excludes $2 1 million or seven of diluted earnings per share of nonrecurring items.
Scott: Our GAAP net loss for the first quarter of 2024 was $6 1 million or <unk> 19 loss per diluted share.
Scott: EBITDA for the first quarter was $3 million and adjusted EBITDA was $4 $1 million.
Scott: Adjusted EBITDA margin was two 5% up from negative two 6% in the prior year period.
Scott: Moving onto bidding metrics in the first quarter, we bid on approximately $1.1 billion worth of opportunities winning $155 million.
Scott: This resulted in a contract value we did win rate of 15, 4% and a book to Bill ratio of <unk> 97 times for the quarter.
Scott: As of March 31, our backlog was $756 $6 million compared to $762 2 million at December 31, 2023.
Scott: Breaking out our first quarter backlog $569 9 million was in our Marine segment and $186 7 million was in our concrete segment.
Scott: In April we have been awarded an additional $42 million for new Marine segment project work and $59 million for concrete segment work.
Scott: We continued to deliver on our promise to improve profitability by implementing a more disciplined bidding process and winning quality work at attractive margins.
Scott: During the first quarter adjusted EBITDA margin in the Marine segment was <unk>, 9% up from negative one 6% last year.
Scott: Adjusted EBITDA margin in our concrete segment improved to five 7% up from negative three 5% in the first quarter of last year.
Scott: As a reminder, our goal is to generate adjusted EBITDA margins in the low double digits for marine in the high single digits for concrete.
Scott: Turning to the balance sheet as of March 31, we had $4 $6 million in cash with negligible outstanding borrowings under our revolving credit facility.
Scott: Our plan to monetize noncore assets is on track.
Scott: We are working on completing our 34 million dollar land sale contract for our East West Jones property with an expected close in June.
Scott: With the completion of this transaction in total we will have unlocked over $60 million of value from our balance sheet to reduce debt and invest in growing our business.
Scott: We are increasing our capex spending over 2023 to upgrade our fleet and be prepared for accelerated growth through 2025 and beyond.
Scott: To give us more flexibility to make these investments we have amended our credit agreement to lower our minimum fixed charge coverage ratio covenant to one to one for the remainder of 'twenty 'twenty four and reduce our June 30, prepayment from $15 million to $10 million in conjunction.
Scott: With a one year extension.
Scott: Our first quarter FCC or was 1.32 to one.
Scott: As Travis mentioned, we anticipate growing our backlog and the topline substantially over 2023 and expect revenue to ramp up in the back half of the year at.
Scott: At the same time, we plan to continue to improve margins by managing the business more efficiently and productively.
Scott: For the full year 2024, we reconfirm our guidance both for anticipated revenue in the range of 860 million to $950 million.
Scott: And expected adjusted EBITDA in the range of $45 million to $50 million.
Speaker Change: And with that we'll open up the call for questions.
Speaker Change: We will now begin the question and answer session to ask a question you May Press Star then one on your telephone keypad.
Speaker Change: If you're using a speakerphone please pick up your handset before pressing the keys if at any time. Your question has been addressed and you would like to withdraw your question. Please press Star then two at.
Speaker Change: At this time, we'll pause momentarily to assemble our roster.
Speaker Change: Our first question comes from.
Speaker Change: Our first question comes from Julio Romero from Sidoti and company. Please go ahead.
Speaker Change: Okay.
Julio Alberto Romero: Thanks, Hey, good morning, Travis Scott.
Julio Alberto Romero: Yes.
Julio Alberto Romero: Hey, guys I wanted to start with talking about marine and wanted to talk about the increasing number of bidding opportunities. There specifically if we could go into the magnitude of the U S. Naval defense spending opportunity you guys talked about the Pearl Harbor project.
Julio Alberto Romero: Do you expect they won't be the largest U S. Navy project prolong I guess, if you could help us understand kind of how big the opportunity is relative to the past.
Speaker Change: So we don't have that.
Julio Alberto Romero: Compiled it's tens of billions and the Pacific We don't know the exact number I'm not sure it's actually been published.
Julio Alberto Romero: Snow bike.
Julio Alberto Romero: Point, together parts and pieces of different different projects that we're aware of it's a very large number.
Julio Alberto Romero: And the multi billions.
Speaker Change: Okay got it and then you know.
Speaker Change: Talking about the concrete business.
Speaker Change: You're shifting focus to data centers for a bit.
Speaker Change: Maybe help us.
Speaker Change: Understand how much of like trailing 12 months sales in concrete up from data centers and maybe what percentage of.
Speaker Change: Concrete revenues.
Speaker Change: Do you anticipate that makes up a year from now.
Speaker Change: So.
Speaker Change: I'm not sure I don't have the number off the.
Speaker Change: On the top of my head centers, but we've done I know are our biggest contract to date and concrete was was the data center and it was roughly $55 million.
Speaker Change: We did that we signed last year that we're completing this year.
Speaker Change: And others sell.
Speaker Change: Others.
Speaker Change: As Scott mentioned kind of on the on the call. There. The range is typically you know $20 million to $50 million and we've been been seeing quite a few of quite a few of the opportunities spring up here in the last two last couple of years, especially.
Speaker Change: And as we've completed more and more of those we've kind of gotten involved in more of them and so it continues to ramp up here as well.
Speaker Change: AI AI driven infrastructure is kind of a hot.
Speaker Change: At the moment.
Speaker Change: Got it and then just if you could help us understand how a data center project is maybe a little different than your traditional concrete projects come up from a concrete contractor perspective would there be some incremental complexity or a specialization of the project and does that lend itself to.
Speaker Change: Hopefully higher bid margins for that type of project.
Speaker Change: It's not necessarily that it's.
Speaker Change: Super different work than what we already do in concrete we do have we do a lot of.
Speaker Change: A lot of complex concrete work in our in our concrete business.
Speaker Change: On a regular basis and it's it's pretty similar to what we do is just put together a slightly slightly different for a data center, but it's it's.
Speaker Change: Very similar to what we normally do.
Speaker Change: Typically the as far as.
Speaker Change: We have performed pretty well on the data centers that we've done.
Speaker Change: Im not going to speak to specific <unk>.
Speaker Change: Project metrics, but generally speaking we've done very well on our data center work.
Speaker Change: Understood well I'll pass it on and I'll hop back into queue. Thanks very much.
Speaker Change: Thanks Lee.
Speaker Change: The next question comes from Alex Rygiel from B Riley. Please go ahead.
Alexander John Rygiel: Thank you and good morning, gentlemen, a couple of quick questions here first.
Alexander John Rygiel: The commercial concrete segment margins were very positive congratulations I wonder about that.
Alexander John Rygiel: How confident are you that that's that's going to continue.
Alexander John Rygiel: Thanks, Alex Yes, it's a good good question Yeah, we're confident in that business. We've as you know we've done a lot of work over the last.
Speaker Change: Year, and a half or so getting kind of.
Alexander John Rygiel: Being more disciplined about what we pursue in our concrete business.
Alexander John Rygiel: Being more disciplined about our minimum bid margins and then improving our or our ability to deliver the projects profitably.
Alexander John Rygiel: We're pretty confident that we have.
Alexander John Rygiel: That we can we can continue to.
Alexander John Rygiel: <unk> performed well in our concrete business based on the discipline, we have in <unk>.
Alexander John Rygiel: How we're how we're approaching the work and still feel very good about.
Alexander John Rygiel: And deliver and deliver strong margins in that business.
Alexander John Rygiel: Whether it's exactly that number or something.
Alexander John Rygiel: It's part of that is part of that will be market, driven and part of that will be other things, but generally speaking we feel we feel good about our concrete business continued to perform profitably. Yes, I do think the first quarter was a little bit higher than average just based on the contracts that completed during the timeframe. So I wouldn't necessarily take Q1 and then.
Alexander John Rygiel: And run that out the rest of the year, but we do expect that we continue to see year over year progress on our margins as we go forward.
Speaker Change: That's perfect and then can you remind us what your Capex budget is for 2024, and maybe talk about a couple of the larger components within that.
Speaker Change: The capex budget for the year.
Speaker Change: Yeah. So we have a maintenance capex needs that we always have every year and we've typically talked about that being about $15 million a year for.
Speaker Change: Referred to and just normal maintenance on our fleet and then we've talked about investments that we're making.
Speaker Change: To grow our fleet about $30 million in dredge build program over the next couple of years.
Speaker Change: So that's that's kind of the things that we have in mind right now there may be according to the opportunities some shift of dollars, but I think those are probably the quantities that you should expect going forward.
Speaker Change: Super helpful and then.
Speaker Change: Lastly, can you remind us what the timeline.
Speaker Change: For the Pearl Harbor project is moving forward now.
Speaker Change: Sort of when do you I don't keep construction activity and how long does it last for.
Speaker Change: Yes, so it will be kind of.
Speaker Change: Fully fully ramped up and operating at kind of.
Speaker Change: Peak capacity near.
Speaker Change: Near the middle of this year.
Speaker Change: Until till let's call it the middle of next year before kind of starts ramping down somewhat in the latter half of next year.
Speaker Change: Perfect.
Speaker Change: Thank you very much.
Speaker Change: The next question comes from David storms from Stonegate capital. Please go ahead.
David Joseph Storms: Good morning.
David Joseph Storms: I'm, just hoping we could start with the current backlog. It had a nice jump you know you mentioned roughly 100 million sensor ended the quarter was this a timing thing.
David Joseph Storms: Just one big win that came through kind of what drove that that backlog jump.
David Joseph Storms: Oh It was just a timing thing we had it wasn't there wasn't one specific win that drove that there was a quite a quite a few wins in both concrete and marine that that drove that drove that number.
David Joseph Storms: So it wasn't it wasn't one specific project.
Speaker Change: Which is which is a good thing right it's not.
Speaker Change: It's not just driven by one I think that's.
Speaker Change: It had a pretty good run of wins, there that drove that number.
Speaker Change: Understood. Thank you and then just on the scheduling delays that you've mentioned.
Speaker Change: Are you able to give us a sense of.
Speaker Change: Maybe the magnitude of that in.
Speaker Change: The spacing of any catch up should we expect most of that to be in Q2, or what kind of be equally spread out through the remainder of the year, how should we how should we be thinking about that.
Speaker Change: Yeah, it'll be it'll be spread out through the remainder of the year.
Speaker Change: Some of it are they on.
Speaker Change: One of the projects most of the catch up will happen in Q3 and the other one will be probably yes sort of sum in Q2, and then more in three and four.
Speaker Change: Understood and then just one more for me your press release mentioned that your opportunity pipeline has almost quadrupled.
Speaker Change: Are there any specific initiatives that you're onboarding to try to capture you know obviously as much as its pipeline as you can.
Speaker Change: We've been in progress for the last.
Speaker Change: Dear plus working on.
Speaker Change: Quite a few things to capture that market we had.
Speaker Change: We had a pretty strong sense that it was it was going to be improving significantly which has driven a lot of the investment and work that we've been doing over the past year plus David So it's been not necessarily that we have we're starting something new now we've already been working on it for quite some time as we as we saw that the market is starting to blossom.
Speaker Change: Understood. Thank you for taking my questions and good luck in the second quarter.
Speaker Change: Thanks, Dave.
Speaker Change: Again, if you have a question. Please press Star then one.
Speaker Change: And our next question comes from Josh <unk> from Noble capital markets. Please go ahead.
Speaker Change: Good morning, guys just filling in for Joe This morning, Josh.
Josh: Hey, So you know you guys talked a little bit of whole pie, Hawaii, a it seems to be obviously, having some delays, but can you guys provide any just really additional color around the Grand Bahama project hows that looking.
Speaker Change: So it's looking looking.
Speaker Change: Very good.
Speaker Change: That wouldn't have had.
Speaker Change: Some delays with a with a subcontractor, but kind of moved a move some.
Speaker Change: Non critical path work to the right. They got they got a little delayed on some other things that will be starting up.
Speaker Change: A little later on their portion of the work than than we had anticipated, but it was again non critical path work and who didn't didn't impact the schedule of the project or any of our any of our work it just sort of delayed their work for <unk>.
Speaker Change: Until the end of the second quarter.
Speaker Change:
Speaker Change: Okay, perfect and yeah and obviously.
Speaker Change: Obviously, you know that there hasn't been a lot of time between you know the fourth quarter and now.
Speaker Change: But can you speak on the judging environment, you guys mentioned kind of it'll pick back later in the later half of this year, but you guys still kind of expect that.
Speaker Change: Yeah.
Speaker Change: Oh, that's a were well I'll say we are optimistic.
Speaker Change: That then it'll start picking back up later later this year.
Speaker Change: We haven't we haven't seen signs of it yet, but it's kind of kind of the same same same sort of status that has been for a for a little while at this point.
Speaker Change: Again, where we are.
Speaker Change: Sure.
Speaker Change: We're.
Speaker Change: We're optimistic that that will will things will start clicking a little a little more regularly with the core here later this year.
Speaker Change: Okay, perfect and then.
Speaker Change: So I guess last one to squeeze in here.
Speaker Change: I guess you know are in the SG&A, obviously toric and then we kind of anticipated should we kind of expect this to kind of continue throughout the year, just kind of run rate.
Speaker Change: Yes, I think that this absolute dollar amount is probably a good run rate to use going forward as we continue to incur some costs related to claims and as we make the most of our business development opportunities by investing in that function.
Speaker Change: Okay.
Speaker Change: All right perfect. Thank you guys. So much for taking my questions.
Speaker Change: Thanks, Josh and while we are waiting for more calls it might be a good time to say there was a typo in our press release that went across the wires and that was to the balance sheet, which you'd had an incorrect current debt number that has been corrected in the 8-K, which was filed with the press release there.
Speaker Change: Again, if you have a question. Please press Star then one.
Speaker Change: There are no more questions in the queue. This concludes our question and answer session I would like to turn the conference back over to Travis Boon for any closing remarks.
Travis J. Boone: Thank you. Thank you everyone for joining today, we appreciate your time and I guess in closing I just want to think.
Travis J. Boone: All of our employees, who are working really hard in our business every day to to work safely and to work profitably in.
Travis J. Boone: Bringing bringing bringing the best that they can to work every day I also want to thank our shareholders for continued.
Travis J. Boone: Confidence in us and look forward to.
Travis J. Boone: Sure.
Travis J. Boone: Continued growth in the company here going forward.
Speaker Change: Thanks, everyone.
Speaker Change: The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
Speaker Change: Okay.
Speaker Change: [music].