Q1 2024 Broadwind Inc Earnings Call

Operator: Greetings and welcome to Broadwind's first quarter 2024 results conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Mr. Tom Ciccone, Chief Financial Officer. Thank you; you may be.

Greetings and welcome to broad ones first quarter 'twenty 'twenty four results conference call.

Speaker Change: At this time all participants are in a listen only mode. A question and answer session will follow the formal presentation.

Operator: If anyone should require operator assistance during the conference. Please press star zero on your telephone keypad.

As a reminder, this conference is being recorded.

Speaker Change: I would now like to turn the conference over to your host Mr. Tom Shea Kony Chief Financial Officer. Thank you you may begin.

Thomas A. Ciccone: Good morning, and welcome to the Broadwind first quarter 2024 results conference call. Leading the call today is our CEO, Eric Blashford, and I'm Tom Ciccone, the company's Vice President and Chief Financial Officer.

Speaker Change: Good morning, and welcome to the broad wouldn't first quarter 2024 results conference call.

Speaker Change: Leading the call today is our CEO, Eric Blatchford and I'm, Tom She kony, the company's Vice President and Chief Financial Officer.

Thomas A. Ciccone: We issued a press release before the market opened today detailing our first quarter results. I would like to remind you that management's commentary and responses to questions on today's conference call may include forward-looking statements which, by their nature, are uncertain and outside of the company's control. Although these forward-looking statements are based on management's current expectations and beliefs, actual results may differ materially. For a discussion of some of the factors that could cause actual results to differ, please refer to the Risk Factors section of our latest annual and quarterly filings with the SEC.

Speaker Change: We issued a press release before the market opened today detailing our first quarter results.

Speaker Change: I would like to remind you that management's commentary and responses to questions. On today's conference call May include forward looking statements, which by their nature are uncertain and outside of the company's control.

Although these forward looking statements are based on management's current expectations and beliefs actual results may differ materially.

Speaker Change: For a discussion some of the factors that could cause actual results to differ.

Please refer to the risk factors section of our latest annual and quarterly filings with the SEC.

Thomas A. Ciccone: Additionally, please note that you can find reconciliations of the historical non-GAAP financial measures discussed during our call in the press release issued today. At the conclusion of our prepared remarks, we will open the line for questions. With that, I'll turn the call over to Eric.

Additionally, please note that you can find reconciliations of the historical non-GAAP financial measures discussed during our call in the press release issued today.

Eric Blatchford: At the conclusion of our prepared remarks, we will open the line for questions with that I'll turn the call over to Eric.

Eric: Thanks, Tom.

Eric B. Blashford: and welcome to those joining us today. Broadwind delivered solid Q1 results. Highlighted by Improved Margin Realization, Higher Net Income, and increased the adjusted EBITDA, even though revenue was down from the prior year quarter. Offsetting a transitional pause in new wind tower demand, first quarter results benefited from a higher value sales mix. Price Discipline and Targeted Cost Reduction Actions to Yield an Improvement in Gross Margin and EBITDA Margin of 330 basis points and 270 basis points, respectively.

Eric: And welcome to those joining us today.

Robin delivered solid Q1 results.

Robin Smith: Highlighted by improved margin realization.

Robin Smith: Higher net income.

Robin Smith: And increased adjusted EBITDA, even though revenue was down from the prior year quarter.

Speaker Change: Offsetting a transitional pause in new wind tower demand.

Speaker Change: First quarter results benefited from a higher value sales mix.

Speaker Change: This discipline.

Speaker Change: And targeted cost reduction actions to yield improvement in gross margin and EBITDA margin.

Speaker Change: 330 basis points, and 270 basis points respectively.

Eric B. Blashford: This marks our fifth consecutive quarter of profitability despite lingering wind-related headwinds. We booked $29 million of orders in the first quarter, a decline as compared to the prior year period, but up nearly 44% sequentially versus Q4 2023, continuing the favorable order trend across all divisions, which began in the second half of last year.

Speaker Change: This marks our fifth consecutive quarter of profitability, despite lingering winter related headwinds.

Speaker Change: We booked $29 million of orders in the first quarter.

Speaker Change: A decline as compared to the prior year period, but up nearly 44% sequentially versus Q4, 'twenty twenty-three kantar.

Speaker Change: Continuing the favorable order trend across all divisions, which began in the second half of last year.

Eric B. Blashford: Gearing orders increased sequentially across all markets, led by wind, mining, and energy. We also continue to see strong activity levels from the natural gas turbine market serve our industrial solution segment, driven by Global Electricity Demand Growth and a shift away from coal-fired power around the world.

Speaker Change: Gearing orders increased sequentially across all markets led by wind mining and energy.

Speaker Change: We also continued to see strong activity levels from the natural gas turbine market served by our industrial solutions segment.

Speaker Change: Driven by global electricity demand growth and.

Speaker Change: And a shift away from coal fired power around the world.

Eric B. Blashford: At a commercial level, we continue to expand our product mix within higher-margin adjacent markets. The release of the Broadwind Clean Fuels L70 Low Flow PRS unit, the third model in this product family, remains on track for the third quarter and will include a version designed to accommodate RNG or Renewable Natural Gas. We're expanding our portfolio of industrial fabrications to include new products, and we're seeing increased customer interest from the defense industry now that our ITAR certifications are complete for both the heavy fabrications and gearing divisions. ITAR, or International Traffic and Arms Regulation, is a United States regulatory control program to restrict the export of defense and military-related technologies to safeguard U.S. national security. Furthermore...

Speaker Change: At a commercial level, we continued to expand our product mix within higher margin adjacent markets.

Speaker Change: The release of the broad when clean fuels L 70, low flow Prs unit, a third model and this product family.

Speaker Change: It remains on track for the third quarter.

Speaker Change: We'll include a version designed to accommodate our N G or renewable natural gas.

Speaker Change: Okay.

Speaker Change: We're expanding our portfolio of industrial fabrications to include new products.

Speaker Change: And we're seeing increased customer interest from the defense industry now that our ital certifications are complete for both have the heavy fabrications and gearing divisions.

Speaker Change: The tower or international traffic in arms regulations.

unknown: Cause the United States' regulatory control program to restrict the export of defense and military related technologies.

Speaker Change: To safeguard U S National security.

Speaker Change: Furthermore.

Eric B. Blashford: The Gearing Division is progressing towards its AS9100 quality certification, which we expect to earn in Q4, opening further opportunities in aerospace and defense for our gearing products. We're seeing the favorable impact from our efforts to lean out our manufacturing processes from quote to shipment. Removing waste and improving individual accountability throughout the production process. Our focus on team member safety training has yielded a 50% reduction in our recordable incident rate in Q1, which was already trending below industry average.

unknown: The gearing division is progressing towards its a S 9100 quality certification, which we expect to earn in Q4.

unknown: Opening further opportunities in aerospace and defense for our gearing products.

unknown: Operationally.

unknown: We're seeing the favorable impact from our efforts to lean out.

unknown: Our manufacturing processes from quote to shipment.

Speaker Change: Removing waste.

Speaker Change: An improving individual accountability throughout the production process.

Speaker Change: Our focus on team member safety training has yielded a 50% reduction.

Speaker Change: And our recordable incident rate in Q1, which was already trending below industry average.

Eric B. Blashford: And we are very pleased to have had zero lost time in. Our Quality Systems, Standard Work Deployment, and Flexible Skills Training have allowed us to improve our response time and increase the profitability of the smaller qualification runs, often associated with new customers, in recent quarters. We've taken significant actions to align our cost structure with the current demand environment. In combination, these actions will contribute more than $4 million in annualized cost savings beginning with the first quarter of this year, while total revenue declines versus year-ago levels.

Speaker Change: And we are very pleased to have had zero lost time incidents.

Speaker Change: Our quality systems standard work deployment and flexible skills training have allowed us to improve our response time.

Speaker Change: And increase the profitability of smaller of the smaller qualification runs.

Speaker Change: Often associated with new customers.

Speaker Change: In recent quarters.

Speaker Change: We've taken significant actions to align our cost structure with the current demand environment.

Speaker Change: In combination these actions will contribute more than $4 million in annualized cost savings beginning with the first quarter of this year.

Speaker Change: While total revenue declined versus year ago levels.

Eric B. Blashford: Given lower tower demand, our non-wind activity levels remain stable, as we see stable demand for our precision manufacturing capabilities across multiple markets. In Q1, we generated adjusted EBITDA of $4.2 million and net income of $1.5 billion, nearly double the prior year period. Voting activity in our non-Wind markets has been robust so far in 2024, and we expect good order flow this year.

Speaker Change: Given lower tower demand, our non wind activity levels remain stable.

Speaker Change: As we see stable demand for our precision manufacturing capabilities across multiple markets.

Speaker Change: In Q1, we generated adjusted EBITDA of $4 $2 million.

Speaker Change: And net income of $1.5 billion nearly double the prior year period.

Speaker Change: Boating activity in our non wind markets has been robust so far in 'twenty 'twenty four.

Speaker Change: And we expect good order flow this year.

Thomas A. Ciccone: Notwithstanding the continuing softness in the oil and gas gear market, which we believe will continue for the next several quarters. Within our heavy fabrication segment, Q1 revenue was $22 million, down 30% from a year ago, primarily due to the decline in tower production, partially offset by increased sales of mining equipment and our natural gas pressure reducing system. Year-end revenue was $8.3 million, a 30% reduction year-over-year due to broad-based softness across major markets.

Speaker Change: Notwithstanding the continuing softness in the oil and gas gear market.

Speaker Change: Which we believe will continue for the next several quarters.

Speaker Change: Within our heavy fabrication segment Q1 revenue was $22 million.

Speaker Change: 30% from a year ago.

Speaker Change: Primarily due to the decline in tower production, partially offset by increased sales of mining equipment, and our natural gas pressure reducing systems.

Speaker Change: Gearing revenue was $8 $3 million, a 30% reduction year over year due to broad based softness across major markets. However, our book to Bill and gearing.

Thomas A. Ciccone: However, our book to Bill and Gearing was 1.3 times, indicating the ongoing recovery in this business. Industrial Solutions revenue was $8 million, up 47% year over year, led by increases in both new and aftermarket gas turbine content, continuing the positive trend for this business, which began in 2022. In summary, I am pleased with the operating performance of all divisions through the first quarter, as we took quick and substantial cost actions in response to demand fluctuations in both our heavy fabrications and gearing units to deliver favorable results for the quarter. With that, I'll turn the call back over to Tom for a discussion of our first quarter financial performance.

Speaker Change: It was 1.3 times.

Speaker Change: Indicating the ongoing recovery in this business.

Speaker Change: Industrial solutions revenue was $8 million up 47% year over year.

Speaker Change: Led by increases in both new and aftermarket gas turbine content <unk>.

Speaker Change: Continuing the positive trend for this business, which began in 2022.

Speaker Change: In summary, I'm pleased with the operating performance of all divisions.

Speaker Change: The first quarter.

Speaker Change: As we took quick and substantial cost actions in response to demand fluctuations in both our heavy fabrications and gearing units to deliver favorable results for the quarter.

Speaker Change: With that.

Thomas A. Ciccone: I'll turn the call back over to Tom.

Thomas A. Ciccone: For a discussion of our first quarter financial performance.

Thomas A. Ciccone: Thank you, Eric. Turning to slide five for an overview of our first quarter performance. We delivered our fifth consecutive quarter of profitability during a period of softness within the onshore wind industry sector, highlighted by meaningful margin expansion resulting from a higher-margin sales mix and targeted cost reduction. In Q1, we generated $4.2 million of EBITDA compared to $4.1 million in the prior year quarter. We generated net income of $1.5 million, or $0.07 per diluted share, in the first quarter, compared to $0.08 million, or $0.04 per diluted share, in the prior year quarter. Turn to slide six for a discussion of our heavy fabrication segment.

Thomas A. Ciccone: Thank you Eric turning to slide five for an overview of our first quarter performance.

Thomas A. Ciccone: We delivered our fifth consecutive quarter of profitability during a period of softness within the onshore wind industry sector highlighted by meaningful margin expansion, resulting from our higher margin sales mix and targeted cost reductions.

Speaker Change: In Q1, we generated $4 $2 million of EBITDA compared to $4 1 million in the prior year quarter.

Speaker Change: We generated net income of $1 5 million or seven cents per diluted share in the first quarter compared to <unk> 8 million or four cents per diluted share in the prior year quarter.

Speaker Change: Turning to slide six for discussion of our heavy fabrication segment.

Thomas A. Ciccone: Q1 orders of $11 million are down 45% versus the prior year period, primarily due to reduced wind tower orders. Tower-related orders continue to be limited as a result of the existing backlog that originated as part of a significant supply agreement for wind tower purchases entered into in Q4-22. We did see an 18% increase in orders for our non-wind revenue streams, primarily related to our mining and industrial markets. First quarter revenues were $22 million, down $9.6 million versus the prior year quarter.

Speaker Change: Q1 orders of 11 million or down 45% versus the prior year period, primarily due to reduced wind tower orders.

Speaker Change: Tower related orders continue to be limited as a result of the existing backlog that originated as part of a significant supply agreement for wind tower purchases entered into in Q4 22.

Speaker Change: We did see an 18% increase in orders for our non wind revenue streams.

Speaker Change: I'm merely related to our mining and industrial markets.

Speaker Change: First quarter revenues were 22 million.

Speaker Change: <unk> $9 6 million versus the prior year quarter.

Thomas A. Ciccone: We sold 78 tower sections versus 140 in the prior year quarter. This reduced level of power sales versus the prior year is consistent with our previous commentary regarding the slowing of Abilene production late in Q4 in response to customer demand. During the first quarter, we recognized segment EBITDA of $3.1 million, a decrease of 0.7 million versus the prior year period, primarily driven by the decrease in power section sales. This was partially offset by a more profitable mix of products sold, as well as some targeted cost reduction. Turning to slide 7.

Speaker Change: We sold 78 tower sections versus 140 in the prior year quarter.

Speaker Change: This reduced level of tower sales versus the prior year is consistent with our previous commentary regarding this slowing of Abilene production late in Q4 response to customer demand.

Speaker Change: During the first quarter, we recognized segment EBITDA of $3 1 million a decrease of <unk> 7 million versus the prior year period, primarily driven by the decrease in tower sections sold.

Speaker Change: This was partially offset by a more profitable mix of products sold as well as some targeted cost reductions.

Speaker Change: Yeah.

Speaker Change: Turning to slide seven gearing orders slowed in Q1 versus the prior year.

Thomas A. Ciccone: Gearing orders slowed in Q1 versus the prior year. Q1 orders totaled $10.4 million, a $2 million decrease versus the prior year quarter. The majority of the decrease was attributable to the reduction in oil and gas demand given a decline in domestic development activity as producers are deploying relatively less capital for drilling.

Speaker Change: Q1 orders totaled $10 4 million or $2 million decrease versus the prior year quarter.

Speaker Change: The majority of the decrease was attributable to the reduction in oil and gas demand given the decline in domestic development activity as producers are deploying relatively less capital for drilling.

Thomas A. Ciccone: Orders did increase sequentially, nearly threefold, as we saw broad-based improvement across all track markets, indicative of our efforts to diversify into less cyclical end markets. Segment revenue was $8.3 million, down $3.6 million compared to the prior year quarter, and EBITDA decreased $0.6 million to $0.7 million, reflective of the lower sales volume. Turning to slide eight for a discussion of our industrial solutions segment. Industrial Solutions had another strong quarter with revenue of nearly $8 million.

Speaker Change: Orders did increase sequentially nearly three fold as we saw broad based improvement across all track markets indicative of our efforts to diversify into less cyclical end markets.

Speaker Change: Segment revenue was $8 3 million down $3 6 million compared to the prior year quarter and EBITDA decreased point 6 million to point 7 million reflective of the lower sales volume.

Speaker Change: Turning to slide eight for a discussion of our industrial solutions segment.

Speaker Change: Industrial solutions had another strong quarter with revenue of nearly $8 million.

Thomas A. Ciccone: This represents the strongest revenue quarter for this segment since the Red Wolf acquisition in 2017. Orders of $7.3 million remain at historically higher levels, and we're up both sequentially and versus the prior year quarter. Our backlog of 16.1 million continues to remain at an elevated level as we continue to see strong demand for our core natural gas turbine operations.

Speaker Change: This represents the strongest revenue quarter for this segment since the Red Wolf acquisition in 2017.

Speaker Change: Orders of $7 3 million remain at historically higher levels.

Speaker Change: And were up both sequentially and versus the prior year quarter.

Speaker Change: Our backlog of $16 1 million continues to remain at an elevated level as we continue to see strong demand for our core natural gas turbine offerings.

Thomas A. Ciccone: First quarter segment revenues benefited from the relatively strong backlog we've been carrying throughout 2023 and into Q1. EBITDA increased to $1.9 million from $0.8 million in the prior year quarter, consistent with the increased revenue and a more profitable mix of products sold when compared to the prior year. Turning to slide nine.

Speaker Change: First quarter segment revenues benefited from the relatively strong backlog, we've been carrying throughout 2023 and into Q1.

Speaker Change: EBITDA increased $1 9 million from point 8 million in the prior year quarter.

Speaker Change: Consistent with the increased revenue and a more profitable mix of products sold when compared to the prior year.

Speaker Change: Turning to slide nine.

Thomas A. Ciccone: At the end of the first quarter, our revolving line of credit was undrawn, and we had cash and availability under our credit facility of over $22 million. As we noted last quarter, during Q1, we collected the remaining $7 million of 2023 AMP credits and were able to reduce our net debt, inclusive of finance leases, by over $3 million. During Q1, we experienced an increase in operating working capital of nearly $5 million. This was driven primarily by a decrease in our deposit balance as we changed terms with a major customer.

Speaker Change: At the end of the first quarter, our revolving line of credit was Undrawn, and we had cash and availability under our credit facility of over $22 million.

Speaker Change: As we noted last quarter. During Q1, we collected the remaining $7 million of 2023, AMT credits and we're able to reduce our net debt inclusive of finance leases by over $3 million.

Speaker Change: During Q1, we experienced an increase in operating working capital of nearly $5 million.

Speaker Change: This was driven primarily by a decrease in our deposit balance as we change terms with a major customer.

Thomas A. Ciccone: We furthermore anticipate operating working capital to continue to increase over the balance of 2024 as our deposit balance decreases and our AR balance increases, consistent with the change in terms, as well as our expected mix of customers. Finally, with respect to our financial guidance, today we are introducing financial guidance for the second quarter of 2024. Given current expectations and beliefs, we anticipate second quarter revenue to be in a range of $37 to $39 million and adjusted EBITDA to be in a range of $2.5 to $3.5 million. That concludes my remarks. I'll turn the call back over to Eric to continue our discussion.

Speaker Change: We Furthermore, anticipate operating working capital to continue to increase over the balance of 'twenty 'twenty four is our deposit balance decreases and are a our balance increases consistent with the change in terms as well as our expected mix of customers.

Speaker Change: Finally, with respect to our financial guidance today, we are introducing financial guidance for the second quarter of 2024.

Speaker Change: Given current expectations and beliefs, we anticipate second quarter revenue to be in a range of 37 to 39 million and adjusted EBITDA to be in a range of 2.5 to $3 5 million.

Speaker Change: That concludes my remarks, I'll turn the call back over to Eric to continue our discussion.

Eric: Thanks, Tom.

Eric B. Blashford: Now allow me to provide some thoughts as we enter Q2, beginning with our heavy fabrication segment. We believe domestic onshore wind activity is poised to accelerate meaningfully in the 2025-2026 time frame, given current indications of interest from customers. However, a higher interest rate environment has impacted project economics for some developers, leading them to temporarily delay or defer the timing of their investment in the interim.

Eric: Now allow me to provide some thoughts as we enter Q2.

Eric: Beginning with our heavy fabrication segment.

Eric: We believe domestic onshore wind activity is poised to accelerate meaningfully.

Eric: And the 2025 2026 timeframe.

Eric: Current indications of interest from customers.

Speaker Change: Although a higher interest rate environment has impacted project economics for some developers leading them to temporarily delay or defer the timing of their investments.

Speaker Change: In the interim we've aligned our cost structure to reflect a period of lower production volumes at our tower facilities.

Eric B. Blashford: We've aligned our cost structure to reflect a period of lower production volumes at our tower facilities while repurposing talent in available capacity toward non-wind demand across our diverse end markets. We remain highly constructive on the long-term economics of wind, particularly with the 10-year tax credit visibility afforded by the IRA. In our gearing segment, efforts to broaden our sales mix into less cyclical markets continue, positioning us to realize a more balanced, stable revenue profile.

Speaker Change: While repurposing talent and available capacity toward non wind demand across our diverse end markets.

Speaker Change: We remain highly constructive on the long term economics of wind, particularly with a 10 year tax credit visibility afforded by the I R. A.

Speaker Change: And our gearing segment efforts to broaden our sales mix into less cyclical markets continue possess.

Speaker Change: Positioning us to realize a more balanced stable revenue profile.

Eric B. Blashford: We added another experienced commercial sales agent to our team to expand our penetration into new precision machining markets with OEM customers in need of our unique 5-axis capabilities for large, diverse, non-gearing applications. Quoting activity is up more than 250 percent.

Speaker Change: We added another experienced commercial sales agent to our team to expand our penetration into new precision machining markets, but the OEM customers in need of our unique five access capabilities for large diverse non gearing applications.

Speaker Change: Quoting activity is up more than 250% and we're pleased that our commercial strategy is yielding increasing opportunities for diverse growth.

Eric B. Blashford: And we're pleased that our commercial strategy is yielding increasing opportunities for diverse growth. For industrial solutions, we are seeing significant signs of momentum in the gas turbine industry, both in the demand for new products and on the services aftermarket side. Our quote activity in this sector is up over 40% from the prior year. As a result, we are continuing to invest in both additional personnel and equipment, manage the growth that we are experiencing, and be responsive to the time-sensitive needs of our customers in this sector.

unknown: In industrial solutions, we are seeing significant signs of momentum in the gas turbine industry.

Speaker Change: Both in the demand for new products.

Speaker Change: And on the services aftermarket side.

Speaker Change: Our quote activity in this sector is up over 40% from the prior year.

Speaker Change: As a result, we are continuing to invest in both additional personnel and equipment to.

Speaker Change: To manage the growth that we're experiencing and to be responsive to the time sensitive needs of our customers in this sector.

Speaker Change: Concurrently we are continuing our work.

Eric B. Blashford: We are continuing our work with our key partners in both the wind repowering and solar markets as we focus our efforts on growing in these key energy transition markets. In summary, I am pleased with the strong operational performance from our team this quarter, as we continue to demonstrate strong execution on our strategic priorities. We've pivoted our cost structure during a transitional period for domestic onshore wind demand while retaining and redeploying our highly skilled workforce.

Speaker Change: With our key partners in both the wind Repowering and solar markets as we focus our efforts on growing in these key energy transition markets.

Speaker Change: In summary.

Speaker Change: I am pleased with the strong operational performance from our team this quarter.

Speaker Change: As we continue to demonstrate strong execution on our strategic priorities.

Speaker Change: We've pivoted our cost structure during a transitional period for domestic onshore wind demand, while retaining and redeploying our highly skilled workforce.

Eric B. Blashford: We continue to build a firm foundation for steady, profitable growth, serving the energy transition and other key markets, and look forward to capitalizing on improved demand in the years ahead. With that said, I'll turn the call over to the moderator for the Q&A session.

Speaker Change: We continue to build a firm foundation for steady profitable growth serving the energy transition in other key markets and look forward to capitalizing on improved demand in the years ahead.

Speaker Change: With that said I'll turn the call over to the moderator.

Speaker Change: For the Q&A session.

Operator: Thank you. At this time, we'll be conducting a question and answer session. If you'd like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the start button.

Moderator: Thank you at this time, we'll be conducting a question and answer session. If you'd like to ask a question. Please press star one on your telephone keypad.

Moderator: A confirmation tone will indicate your line is in the question queue. You May press star two if you'd like to remove your question from the Q4.

Speaker Change: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the darkies one moment. Please while we poll for questions.

Operator: One moment, please, while we poll for questions. Our first question comes from Eric Stine with Craig Hallam. Please proceed with your question. Hi, Eric.

Speaker Change: Our first question comes from Eric Stine with Craig Hallum. Please proceed with your question.

Eric Stine: Hi Eric. Hi Tom. Good morning. Morning, Eric.

Eric Stine: Hi, Eric Hi, Tom Good morning.

Eric: Good morning, Eric.

Eric Stine: Hey, so maybe can we just start with the change terms with the new customers? It sounds like that will weigh on working capital here. It did in the first quarter and will for the foreseeable future. Just curious. Is that something that is kind of a one-off with this specific customer? Or is this something that is more indicative of maybe working capital trends going forward?

Eric Stine: Hey, so maybe can we just start with the the change terms with the new customers it sounds like that that will.

Eric Stine: Weigh on working capital here it did in first quarter and will for the foreseeable future. Just curious is that something that is kind of a one off with this specific customer or is this something that is more indicative of maybe working capital trends going forward.

Thomas A. Ciccone: I would say it's more specific to this particular customer. It happens to be a major customer, so it's rather significant to us.

Speaker Change: I would say, it's more specific to this particular customer it happens to be a major customer so.

Speaker Change: It's rather significant to us so yeah, we did our operating working capital increased about $5 million in Q1, and a lot of that was related to our deposit balances you can see from looking at our balance sheet. We do we do anticipate that trend to continue.

Thomas A. Ciccone: So, yeah, we did, our operating working capital increased about $5 million in Q1, and a lot of that was related to our deposit balance, as you can see from looking at our balance sheet. We do anticipate that trend to continue, from a deposit perspective as well. The receivables should increase as well during the year.

Speaker Change: You know from us from a deposit perspective, as well as the receivable should increase as well during the year.

Speaker Change: Yeah.

Thomas A. Ciccone: Got it. Anything that you can share in terms of what changed? I mean, does this have to do with... you know, whether it's the conditions of the relationship between the two parties or just the nature of business between the two parties? Anything there would be helpful.

Speaker Change: Got it I mean, any anything that you can share in terms of what what changed I mean is this has to do with.

Speaker Change: You know whether its conditions of of the relationship between the two parties or just the nature of business between the two parties anything there would be helpful.

Thomas A. Ciccone: I would think the latter, just nothing specific that we can point to, just the nature of the business between the two parties, I think.

Speaker Change: I would think the ladder just nothing specific that we can point to just.

Speaker Change: The nature of the business between the two parties I think.

Eric B. Blashford: What I would say, Eric, is that it's actually returning to terms that were in place several years ago. So it's a return to normal terms.

Speaker Change: Okay, Yeah, what I would what I would say Eric is that it's actually returning to terms that were that were in place several years ago. So it's a return to normal terms.

Eric Stine: Okay. Um, all right. And then maybe just on the wind side, and obviously, you know, it's a pretty challenging environment right now, but it sounds like you're getting a little more optimistic. Should we take that to mean that orders, I mean, potentially, you'd think you could start to see an order pickup in late 24, so it really, I mean, obviously would not impact the results of this fiscal year, but that's how we should take your commentary.

Speaker Change: Okay Alright.

Eric: And then maybe just on the wind side and obviously you know, it's a pretty it's pretty it's a challenging environment right now, but it sounds like you're getting a little more optimistic should we take that to mean there.

Eric: The orders I mean, potentially you think you could start to see an order pickup in la.

Speaker Change: Late 'twenty for so it really I mean, obviously would not impact the results of this fiscal year.

Speaker Change: But that's that's how we should take your commentary.

Eric B. Blashford: Yeah, I think so. I think our customers believe, as do we, that the wind power industry onshore has hit a trough, and we're kind of heading up the other direction. In that trough, I would use the term cautiously optimistic about late 24 into 25 and more bullish into 26, so I would say yes. Order activity should increase late 24 into 25 and through 25 and 6.

Customer: Yeah, I think so I think our customers believe it as do we.

Speaker Change: Now that the industry that when the wind power industry onshore has hit a trough and we're kind of heading up the other direction.

Speaker Change: In that trough I would use the term cautiously optimistic about 'twenty late 'twenty four into 'twenty five and we're bullish into 26, So I would say, yes. The order activity should increase late 'twenty four 'twenty five and through 'twenty five and six.

Eric Stine: Got it. And any other, or maybe, you know, I know you've aligned the costs, but you've also refocused some of the capacity in Abilene to other end markets. You know, maybe just delve into that topic a little bit and, you know, is there a time when you see, and maybe it is late 24 when you start to see orders from other OEMs other than GE and the big one that you have

Speaker Change: Got it and any.

Speaker Change: Or maybe you know I know you've align the costs, but.

Speaker Change: <unk> also a refocus some of the capacity in Abilene to other end markets.

Speaker Change: Maybe just delve into that topic, a little bit and you know is there a time, where you see and maybe it is late 'twenty four when you start to see orders from other Oems other than G E and the big one that you have.

Eric B. Blashford: Yeah, I would say there's interest by all four OEMs, and most directly, three of the four major OEMs have capacity in that Abilene plant. We are producing our PRS systems. Those are the pressure-reducing systems in Abilene and in Manitowoc. They really don't interfere with wind tower production, but we do transfer labor between them. So I would say that the chance for us to have multiple OEMs in that factory in 2025 and through 2026 is certainly possible.

GE representative: Yeah, I would say there is interest by all four Oems most directly three of the four major Oems and capacity in that Abilene plant, we are producing our prs systems.

Speaker Change: Those are the pressure reducing systems in Abilene and in Manitowoc, They really don't interfere with with wind tower production, but they we do transfer labor in between so I would say that the chance for us to have multiple Oems in that factory and 25 and 326 is.

Speaker Change: Certainly possible there's interest, but there's also interest in our northern plants as well.

Eric B. Blashford: There's interest, but there's also interest in our northern plant as well. As I mentioned before, it's less aggressive or less robust than the Texas region where we have the Abilene plant, but interest is increasing in the northern plant as well, both in terms of new towers but especially in terms of repowering activity which we produce at our northern plant.

Speaker Change: As I mentioned before it's less aggressive or less robust in the Texas region, where we have at the Abilene plant, but interest is is increasing in our northern plants as well.

Speaker Change: Both in terms of new towers, but especially in terms of repowering activity, which we produce.

Speaker Change: In our northern plant.

Speaker Change: Got it that is good to hear and then lastly, just.

Eric Stine: Got it. That is good to hear. And lastly, just last quarter and this quarter as well, talking about aerospace and defense and some key certifications that you've received. I mean, how do you think about this business? If you looked at 25 or 26, you know, is that when you start to see this become a more meaningful part of the business, or should we think about it? It's further out than that. I would say...

Speaker Change: Last quarter this quarter as well talking about aerospace and defense and some key certifications that you've received I mean.

Speaker Change: How do you think about this business. If you looked at 25 or 26, you know is that when you start to see this become a more meaningful part of the business or should we think about it. It's it's further out than that.

Eric B. Blashford: I would say 25 and 26, definitely, especially in gearing. And what these certifications do for us is we've had inquiries from defense and aerospace customers before, but sometimes their terms and conditions require a certification or the ITAR certification, which is defense, or the AS9100, which is aerospace, and we've had to not bid on some of those opportunities. Well, we wanted to get inside that fence, if you will, inside the perimeter. And now, with ITAR, we are getting more activity inquiries from the defense industry for both heavy fabrications and gearing.

Speaker Change: I would say 25, and 26 definitely especially in gearing and what these certifications do for US is we've had inquiries from defense and aerospace customers before.

Us: But sometimes our terms and conditions require a certification or the <unk> certification, which is defense or the S 9100, which is which is aerospace and and we've had to.

S 9100: No bid on some of those opportunities, but we wanted to get inside that fence. If you will inside the perimeter and now with <unk>, we are getting more activity inquiries from the defense industry.

Speaker Change: In both heavy fabrications in gearing in the a S 9100, the customers were advertising to the customers that we should have that by Q4, and that's really increased activity in gearing from the aerospace standpoint, So I'd say I would definitely expect activity in 'twenty five.

Eric B. Blashford: In the AS9100, the customers were advertising to the customers that they should have that by Q4, and that's really increased activity in gearing from the aerospace standpoint. So I'd say I would definitely expect activity in 25, actual order and revenue activity in 25, increasing through 26 and beyond.

Speaker Change: So the actual order and revenue activity in 'twenty five.

Speaker Change: Increasing through 26 and beyond.

Speaker Change: Okay. Thank you.

Eric Stine: Thanks, Eric. Thanks, Eric.

Speaker Change: Thanks, Eric Thanks, Eric.

Justin Lars Clare: Our next question comes from Justin Clare with Roth MKM. Please proceed with your question.

Speaker Change: Our next question comes from Justin Clare with Roth M. Kam. Please proceed with your question.

Justin Lars Clare: Yeah, good morning. Morning Justin. Good morning.

Speaker Change: Yes, good morning.

Justin Lars Clare: So I wanted to just go back to wind demand. It sounds like, you know, you could potentially see a pickup in orders toward the end of this year. I was wondering, you know, if you do see that pickup, would you expect to be booking for orders to be delivered in 2025? Or is it more likely into 2026 at that point? You know, just based on what you're hearing from your customers, what might we expect here? And then, you know, based on what you're seeing now, what's the potential to increase your wind tower manufacturing utilization in 2025 relative to 2024?

Justin Lars Clare: Good morning, gentlemen, good.

Justin Lars Clare: Good morning, So wanted to just go back to when demand it sounds like you could potentially see a pickup in orders towards the end of this year I was wondering if you do see that pick up would you expect to be booking for orders to be delivered in 2025 or is it more likely into.

Justin Lars Clare: 2026 at that point.

Justin Lars Clare: Just based on what you're hearing from your customers.

Justin Lars Clare: Might we.

Speaker Change: <unk> here and then you know based on what Youre seeing now you know what's the potential to increase your your wind tower manufacturing utilization in 2025 relative to.

Speaker Change: To 'twenty four.

Eric B. Blashford: The answer, I think, is yes and yes. I have a lot of confidence that we'll see capacity utilization in 2025, an increase, maybe not the full capacity in the Aveline plant or the Mantua plant but certainly beyond what we're producing now that we expect to start getting towards the end of 2024 and end of 2025. We will be producing in 2025 and into 2026. As I mentioned earlier, the aftermarket or the repowering sector, which we're getting bigger into, especially in Mantowoc, those orders are more quick turn, so those orders will come in 2024 and be delivered throughout 2025. Towers have a little bit longer lead time, Eric, I'm sorry, Justin, but I do believe we'll see increased activity in 2025 through 2026.

Speaker Change: Oh the answer I think is yes, and yes, I I have a lot of confidence that we will see capacity utilization in 'twenty five.

Manitowoc plant: Increase maybe not so full capacity in the Abilene plant of the Manitowoc plant, but certainly beyond what we're producing at now so the orders.

Manitowoc plant: Do we expect to start getting towards the end of 2024 and into 'twenty five will people will be produced in 'twenty five and into 26 as I mentioned earlier that the.

Manitowoc plant: The aftermarket of the Repowering set.

Manitowoc plant: Sector.

Manitowoc plant: We're getting bigger into especially in minutes walk those orders are more quick quick turn so those orders will come in 'twenty four and be delivered in 'twenty throughout throughout 2025 towers have a little bit longer lead time, Eric but I do believe I'm, sorry, Justin but I do believe we will see both.

Speaker Change: <unk> activity in 'twenty five 'twenty six.

Justin Lars Clare: Got it. Okay, great.

Manitowoc plant: Got it okay.

Justin Lars Clare: And then on industrial solutions it looks like the EBITDA margin was 24% in Q1 so.

Justin Lars Clare: You know pretty meaningful improvements from what we've seen historically I was wondering if you could just speak to what drove the improvement a bit more was this a function of mix in the quarter or the cost reduction efforts that you.

Justin Lars Clare: And then on industrial solutions, it looks like the EBITDA margin was 24% in Q1. So, you know, pretty meaningful improvements from what we've seen historically. I was wondering if you could just speak to what drove the improvement a bit more. Was this a function of mix in the quarter or the cost reduction efforts that you are undergoing here? And just trying to think through how that trend should go forward. Is it a sustainable improvement in the margin that we should be anticipating for that segment of your business?

Justin Lars Clare: Are undergoing here and just trying to think through how should that trend going forward is it a sustainable improvement in the margin that we should be anticipating for that segment of your business.

Thomas A. Ciccone: I think you'll have some sustainability of that margin profile, but I think Q1 was especially a favorable margin profile just because of the sales mix that they experienced. So I wouldn't point to that segment from a cost-cutting perspective by any means, but I think a lot of it had to do with the very favorable mix of products that they sold, as well as the operating leverage that they've had. So $8 million of revenue for that segment is the highest that we've seen out of them. So it really helped their bottom line and it really helped their margin to get as much out of that facility as they did.

Justin Lars Clare: I think you'll have some sustainability of that margin profile, but I think Q1 was especially a favorable margin profile just because of the sales mix.

Justin Lars Clare: That they experience so I wouldn't point to that.

Speaker Change: That segment from a cost cutting perspective by any means but I think a lot of it had to do with the very favorable mix of product that they sold as well as the operating leverage that they've had so $8 million of revenue for that segment is the highest that we've seen out of them. So.

Speaker Change: They it really help their bottom line have really helped their margin to get as much out of that facility that they did.

Justin Lars Clare: Okay, got it. And then just on the, so Biden just increased tariffs, you know, with Section 301, so it looks like the tariff rate on steel will increase to 25% this year from 0% to 7.5%. So, just wondering how this might impact your business. I believe you primarily source steel domestically, you know, though we could see a potential price increase. So, just if you could speak to any potential impact on your business here,

Speaker Change: Okay got it.

Justin Lars Clare: And then just on the.

Justin Lars Clare: So I didn't just increased tariffs.

Speaker Change: With the section 301, so it looks like the tariff rate on steel increasing to 25% this year from zero to seven 5%.

Speaker Change: So just wondering how this might impact your business I believe you primarily source steel domestically.

Speaker Change: Although we could see a potential price increase.

Speaker Change: So just if you could speak to any potential impact on your on your business here.

Eric B. Blashford: Well, I think, Justin, there's...we don't anticipate a significant impact on the business, certainly in what I would call the short term to maybe the midterm. We do source virtually all of our tower steel from domestic sources, and certainly the vast majority of our steel for heavy fabrications from domestic sources. So it could have an impact, but I don't expect it to have a major impact.

Speaker Change: Well I think Justin there's we don't we don't anticipate significant.

Speaker Change: Impact on the business certainly in the.

Justin: What I would call the short term to maybe the midterm, we do source virtually all of our tower steel.

Speaker Change: From domestic from domestic sources.

Speaker Change: And certainly the vast majority of our steel for heavy fabrications from domestic sources. So it could have an impact but I don't expect it to have a major impact in the short term.

Eric B. Blashford: Okay, and the increase in the price would be a pass-through for you, I believe. Yeah, it would be a pass-through. Yes, it would be a pass-through. I do believe there's available capacity in the steel and plate plants that produce for wind turbines for OEMs in the United States and wind power producers like Broadwind.

Speaker Change: Okay and the increase in the price would be a pass through for you yes. It was.

Speaker Change #100: It would be a Pat yes, it would be a pasture I do believe there's there's available capacity of the steel.

Speaker Change #101: <unk> plants that produce for wind turbine.

Broadband: Ams in the United States and when wind power producers like broadband so I think you'd have to fill up that capacity before you would have any real price pressure.

Justin Lars Clare: So I think you'd have to fill that capacity before you'd have any real price pressure. Okay, gotcha. All right.

Broadband: Okay Gotcha alright, thank you.

Justin Lars Clare: Thanks, Justin.

Broadband: Thanks, Jeff Thanks, Justin.

Broadband: Yeah.

Martin Whittier Malloy: Our next question is from Martin Malloy with Johnson Rice. Please proceed with your question.

Broadband: Our next question is from Martin Malloy with Johnson Rice. Please proceed with your question.

Martin Whittier Malloy: Thank you for taking my questions for the first quarter. Hi, was there any impact from the Advanced Manufacturing Tax Credit on the EBITDA for the heavy fabrication segment?

Martin Whittier Malloy: Thank you for taking my questions for the Hey, Marty first quarter was high.

Martin Whittier Malloy: Was there any impact.

Martin Whittier Malloy: From the advanced manufacturing tax credit on the EBITDA for the heavy fabrication segment.

Thomas A. Ciccone: Yeah, not unlike Q1 of last year, the AMP credit existed in both quarters, so outside of the volume impact, we were down approximately 50% in terms of the number of sections that we sold, but the margin profile was consistent between the two quarters.

Martin Whittier Malloy: Not unlike Q1 of last year that the.

Martin Whittier Malloy: The AMT credit existed in both in both quarters so outside of the.

Martin Whittier Malloy: The volume impact we were down approximately 50% in terms of the number of sections that we sold but.

Martin Whittier Malloy: The margin profile of the.

Martin Whittier Malloy: It was consistent between the two quarters.

Martin Whittier Malloy: Okay.

Martin Whittier Malloy: Okay. Okay. I appreciate that. And then just on the... In terms of the potential acquisition front, you've got the NOLs, your balance sheet is strong. Can you maybe talk about what you're seeing there in terms of the flow, potential opportunities?

Martin Whittier Malloy: Okay. Okay I appreciate that and then just on the.

Martin Whittier Malloy: In terms of the.

Martin Whittier Malloy:

Martin Whittier Malloy: Potential.

Speaker Change #106: Acquisition front and you've got the Nols your balance sheet.

Speaker Change #107: Strong can you maybe talk about what youre, what youre seeing there in terms of the flow of potential opportunities.

Eric B. Blashford: Yeah, thanks Marty. We put that on pause a little bit for the last quarter of last year as we worked through these cost reductions to make sure we had good cash generation. We're building up a war chest. We now feel like we're certainly there or nearly there, so I'm beginning to entertain more aggressively opportunities in M&A, primarily in precision manufacturing and precision machining, which is what we do in most of our plants, our gearing plants, and our heavy fabrication plants. So the flow of opportunities is increasing, and we're able to, I think, more seriously address those as they come in.

Marty: Yeah, well. Thanks, Marty we are seeing we put that on pause a little bit for the last the last quarter of last year as we as we work through these cost reductions to make sure. We had good cash generation. We are building up a war chest. We now feel like we're certainly there or nearly there.

Martin Whittier Malloy: So I'm beginning to entertain more more aggressively opportunities in M&A, primarily in precision manufacturing precision machining, which is what we do in most of our in most of our plants are gearing plants under heavy fabrications plants. So the fleet the opportunity flow is increasing and we're able to I think a more seriously address those as they come in.

Marty: Okay.

Martin Whittier Malloy: Okay, great. Thank you very much. I'll turn it back.

Marty: Okay.

Speaker Change: Great. Thank you very much I'll turn it back.

Marty: Thanks Marty.

Amit Dayal: Our next question comes from Amit Dayal, with HC Wainwright. Please proceed with your question.

Dayal: Our next question comes from I mean, Dayal with H C. Wainwright. Please proceed with your question.

Amit Dayal: Thank you. Good morning, everyone. Hi, Amit. Hey, just sticking with the wind, Eric, side of the story. Is there any particular catalyst, you know, for the wind business to get going again that we should be sort of monitoring? Or is this just going to be, you know, just a general development across the industry that may take place later this year or early next year?

Speaker Change: Thank you and good morning, everyone.

Speaker Change: I bet you know.

Speaker Change #112: Just sticking with the wind Eric side of the story is there any particular catalyst you know for the wind business to get going again that we should be sort of monitoring.

Speaker Change: Monitoring or is this just going to be you know just a general development across the industry that take place you know later this year or early next year.

Eric B. Blashford: Well, I think it is... As I look at it, there are three things. There are interest rates, inflation, and interconnection. And I think inflation's kind of been capped, or at least it's under control. Interest rates, and I follow the Fed like the rest of us do, and it feels like that they're... They're going to hold, maybe with a slight reduction. So I think that is offering some stability. And then you have, and then, I'm sorry, that stability is allowing some developers to pencil in some projects that maybe weren't fully profitable or provided enough return for them in a higher interest rate environment. But lastly, there is the interconnection piece. That's my third eye.

Speaker Change: Well I think it is.

Speaker Change #103: As I look at it there is there are there are three things, there's interest rates inflation and interconnection.

Speaker Change: I think inflation has kind of been capped or at least it's under control interest rates fall the fed like like the rest of us do and it feels like that there.

Speaker Change #108: They're going to hold may be a slight reduction so I think that is offering some stability.

Speaker Change: And then you have and then I'm sorry, that's the abilities is allowing some developers to pencil in some projects that maybe werent fully profitable or.

Speaker Change #102: Hum provided enough return for them.

Speaker Change #102: With the higher interest rate environment, but lastly is the interconnection piece, that's a third eye and even just last night, our Monday night in.

Eric B. Blashford: And even just last night, or Monday night in the... The Wall Street Journal, there was an article about Washington trying to break power grid logjams, and that's the infrastructure, that's the whole infrastructure play that I mentioned earlier. So what's happened recently, again, I draw your attention to the Monday Wall Street Journal, FERC, which is the Federal Energy Regulatory Commission, finalized a couple new rules, and a couple new rules are really intended to increase the permitting opportunities for critical projects in areas lacking transmission capacity.

Speaker Change: And.

Speaker Change #114: The Wall Street Journal, There was an article about Washington, trying to break power grid log jams and that's the infrastructure. That's the whole infrastructure play that I'm that I mentioned earlier, so what's happened recently again I've I draw your attention to.

FERC: The Monday Wall Street Journal, FERC, which is the federal energy regulatory regulatory Commission.

FERC: Finalized a couple of new rules and a couple of new roles really are intended to increase permitting opportunities for critical for critical projects in areas lacking transmission capacity.

Eric B. Blashford: And also, they require utility companies to look at a multi-decade trend. What does that mean? What that means is, as renewable projects are coming online in one geographical region versus another, there's always this risk of a weather-related problem. But I think what this is intended to do is to encourage interconnections to be easier for these particular operators so they can more easily invest in renewable projects without fear of any disruption. So, that's kind of a long-winded answer, but...

Speaker Change: And also they require utility companies to look to a multi decade, a multi decade trend what does that mean, what that means is as probably as renewable projects coming online in one geographical region versus another there's always this risk of a weather related problem.

utility companies: But I think what this is intended to do is to encourage interconnections.

Speaker Change: To be easier for these particular operators so they can more easily.

Speaker Change #117: Invest in renewable projects without fear of any disruption. So that's kind of a long winded answer but.

Speaker Change: What I'm, meaning to say is I think the federal government understands that.

Speaker Change: There that there are some headwinds with regard to.

Speaker Change #121: Renewable projects in the way of permitting and Theyre trying to.

Speaker Change #109: Break down those headwinds break down those barriers.

Speaker Change #109: Yeah.

Speaker Change #109: Thank you for that that's very helpful.

Amit Dayal: Thank you for that. And then on the revenue diversification front, you know, it looks like you guys are making good progress. Are you looking to sort of, you know, continue expanding the roster of clients? I know you mentioned the aerospace opportunity in your comments earlier. Just trying to see, you know, how... What are the drivers that will lead to, you know, more balanced revenue?

Speaker Change #113: And then.

Speaker Change #104: The revenue diversification front you know it looks like you guys are making good progress over there.

Speaker Change #111: Is there room to grow within the existing non wind customers or.

Speaker Change #122: Are you looking to sort of continually expanding the roster of clients I know you mentioned the aerospace opportunity in your comments I guess, just starting to see you know how but diversification effort.

Speaker Change #111: You know what are the drivers that will lead to a more balanced.

Eric B. Blashford: We've made, that's a great question. As I've mentioned before, in the northern plant, because we're not full up with tower capacity there, we have available capacity to deploy to these other diverse markets, such as material handling, as I mentioned earlier, defense, and infrastructure. Within the gearing segment, we've made some nice investments in some 5-axis machinery that can handle very precise machining for very large, relatively large..., products.

Speaker Change #116: Revenue. So we've made yeah. Yeah. That's a great question is as I've mentioned before in the northern plants, because we're not full up with tower capacity. There we have available the capacity available capacity to deploy to these other diverse markets such as material handling as I mentioned earlier.

Speaker Change #116: Defense.

Speaker Change #118: Infrastructure within the gearing segment, we've made some nice investments in some five access machinery. They can handle very precise machining for very large relatively large.

Eric B. Blashford: As an example, some of those machines are operating at maybe 30 to 40 percent capacity now. That's intentional because we invested in additional capacity in preparation for these new markets. So, I don't think you need to look for Broadwind to expand our brick and mortar footprint to be able to access these markets. It's more increased utilization for our available and our newly invested assets. Yeah, that's all I have.

Speaker Change #119: Products and we do have available capacity as an example, some of those machines are operating or operating at maybe 30% to 40% capacity now that's intentional because we we invested in additional capacity in preparation for these new markets.

Speaker Change #120: I don't think you need to look for broadband to expand our brick and mortar footprint to be able to access. These markets. It's more increased utilization for our available and our newly invested assets.

Speaker Change #119: Okay understood.

Speaker Change #119: Yeah, that's a long days I think one of the questions offline. Thank you so much.

Speaker Change #119: Thank you thanks.

Eric B. Blashford: We have reached the end of the question and answer session. I would now like to turn the call back over to Eric Blashford for closing comments.

Speaker Change #119: We have reached the end of the question and answer session I would now like to turn the call back over to Eric Blatchford for closing comments.

Eric B. Blashford: Yes, thank you everyone for your interest and your attention. We're pleased with our results in Q1, and look forward to coming back to you after Q2 to present our results then. Thank you, everyone.

Speaker Change #119: Yes. Thank you everyone for your interest and your attention we're pleased with our results.

Operator: This concludes today's conference. You may disconnect your lines at this time, and we thank you for your participation.

Eric Blatchford: Q1, and look forward to coming back to you. After after Q2 to present our results then.

Eric Blatchford: Everyone.

Eric Blatchford: Yeah.

Eric Blatchford: This concludes today's conference you may disconnect your lines at this time and we thank you for your participation.