Q1 2024 Loar Holdings Inc Earnings Call
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Operator: Greetings. Welcome to Loar Holdings' first quarter 2024 results conference call. At this time, all participants are in a listen-only mode. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to Ian McKillop, Director of Investor Relations. Thank you. You may begin.
Greetings and welcome to lure holdings first quarter 2024 results conference call. At this time all participants are in a listen only mode. If anyone should require operator assistance. During the conference. Please press star zero on your telephone keypad. Please note. This conference is being recorded I will now turn the conference over to Ian.
Ian Mckillop: Mckillop director of Investor Relations. Thank you you may begin.
Ian Mckillop: Thank you, and welcome to Loar's 2024 First Quarter Earnings Conference Call. Presenting on the call this morning are Loar's Founder, Chief Executive Officer, and Executive Co-Chairman, Derksen Charles, Executive Co-Chairman, Brett Milgrom, Treasurer, and Chief Financial Officer, Glenn D'Alessandro, and myself.
Speaker Change: Thank you and welcome to <unk> 2024 first quarter earnings conference call presenting on the call. This morning are Lawrence founder Chief Executive Officer, and Executive Co Chairman Dirksen, Charles Executive Co Chairman, Brent milligram, Treasurer, and Chief Financial Officer, Glenn dose Hydro and myself.
Ian Mckillop: Please visit our website at loargroup.com to obtain a supplemental slide deck and call replay information. Before we begin, the company would like to remind you that statements made during this call which are not historical in fact are forward-looking statements. For further information about important factors that could cause actual results to differ materially from those expressed or implied in forward-looking statements, please refer to the company's latest filings with the SEC, available through the investor relations section of our website or at sec.gov.
Loar Group: Visit our website at Loar group Dot com to obtain a supplemental slide deck and call replay information before we begin the company would like to remind you that statements made during this call which are not historical in fact are forward looking statements for further information about important factors that could cause actual results to differ materially from those expressed or implied in the forward looking statements.
Ian Mckillop: The company would also like to advise you that during the course of the call, we will be referring to adjusted EBITDA, adjusted EBITDA margin, and adjusted earnings per share, each of which is a non-GAAP financial measure. Please see the tables and related footnotes in the earnings release for a presentation of the most directly comparable GAAP measures and applicable reconciliation. Please also note, given that we have been a public company for two weeks, our analysts are in a quiet period, and we will not be taking questions after today's call. I'll now turn the call over to Dirk.
Loar Group: Please refer to the company's latest filings with the SEC available through the Investor Relations section of our website or at SEC Gov.
The company: The company would also like to advise you that during the course of the call we will be referring to adjusted EBITDA adjusted EBITDA margin and adjusted earnings per share each of which is a non-GAAP financial measure. Please see the tables and related footnotes in the earnings release for a presentation of the most directly comparable GAAP measures and Abbott.
Loar Group: Conciliations.
Loar Group: Please also note given that we have been a public company for two weeks, our analyst day in a quiet period, and we will not be taking questions. After today's call I'll now turn the call over to Ericsson.
Dirksen Charles: Thanks, Ian. I'm going to start on slide number four.
Ericsson: Thanks Ian.
Ericsson: I'm going to start on slide number four.
Dirksen Charles: And let me make one brief remark here. As Ian mentioned, on today's call, we'll do something a little bit different than what we'll be doing in the future, which is... We're not going to take questions at the end because the analysts are really still in their quiet period, but just wanted people to know that. But we'll do our best here to walk you through our story, our portfolio, et cetera, so you can follow along with what we've been up to. So good morning, especially to our new partners, analysts, and those of you hearing our story for the first time. As Ian mentioned, I'm Dirksen Charles.
Ericsson: And let me make one brief remark here.
Ian Mckillop: As Ian mentioned.
Ericsson: On today's call, we will do something a little bit differently than that we'll be doing in the future which is when.
Ian Mckillop: We're not going to take questions and Anne.
Ian Mckillop: Because the analysts are really still in their quiet period, but just wanted people to know that but we will do our best here to walk you through.
Anne: Our story, our portfolio et cetera. So you can follow along with what we've been up too so good morning.
Anne: Especially to our new partners analysts and those of you hearing our story for the first time.
Derrickson, Charles: As Ian mentioned, I'm Derrickson, Charles I'm, the founder and CEO and co chairman of law.
Dirksen Charles: I'm the founder, CEO, and co-chairman of Loar. Loar is a family of companies with a very simple approach to creating shareholder value. First, we believe that by providing our business units with an entrepreneurial and collaborative environment to advance their brands, we will generate above-market growth rates. Since our inception in 2012, we have grown sales and adjusted EBITDA at a compound annual growth rate of 38% and 46%, respectively. We collaborate across business units by sharing best practices and ideas while assisting each other when it comes to execution. We operate along four values.
Derrickson, Charles: La is a family of companies that are very simple approach to creating shareholder value.
Derrickson, Charles: Firstly believe that by providing our business units and entrepreneurial and collaborative environment for advanced the brands, we will generate above market growth rates.
Derrickson, Charles: Since our inception in 2012, we have grown sales and adjusted EBITDA at a compound annual growth rate of 38% and 46% respectively.
La: We collaborate across business units by sharing best practices and ideas, while assisting each other when it comes to execution.
Speaker Change: We execute along for value streams, we identified pain points within the aerospace industry and look to solve those problems to organically launching new products, which we believe over the long term will create one two to three percentage points of topline growth annually with.
Dirksen Charles: We identified pain points within the aerospace industry and looked to solve those problems through organically launching new products, which we believe, over the long term, will create one to three percentage points of top-line growth annually. We focus on optimizing our productivity, which in simple terms is the ratio of output to input. Each year, we'll identify initiatives that will allow us to continually improve, focusing on one or two major initiatives each year that will improve the ratio.
Speaker Change: We focus on optimizing our productivity, which in simple terms is the ratio of up with input E.
Speaker Change: Yeah, we'll identify initiatives that will allow us to continually improve with a focus on one or two major initiatives each year that will improve the ratio in other words think margin improvement and enhancing our competitive advantage.
Dirksen Charles: In other words, think margin improvement and enhancing our competitive advantage. We will also, each year across our portfolio of companies, achieve more revenue than inflation. Again, margin improvement. Executing on these three simple value drivers, along with the secular growth rate of the aerospace and defense industry, we believe that it allows us to organically achieve 10% growth in sales and 15% growth in adjusted EBITDA over the long term. Most importantly, we are committed to developing and improving the talent of all of our employees because our success is solely a result of their dedication and commitment.
Speaker Change: We also each year across our portfolio of companies will achieve more price and inflation.
Speaker Change: Again margin improvement.
Speaker Change: Executing on these three simple value drivers along with the secular growth rate of the aerospace and defense industry. We believe allows us to organically achieved 10% growth in sales and 15% growth in adjusted EBITDA over the long term.
Speaker Change: Most importantly, we are committed to developing and improving the talents of all of our employees.
Speaker Change: Our success is solely a result of their dedication and commitment.
Dirksen Charles: That's why I'm proud to call them my friends. So, our most important value driver is making sure we have the talent within our four walls and under our roof to support our customers and to continue to achieve above market growth. I will now turn the call over to Brett to walk you through our portfolio.
Speaker Change: Why I'm proud to call them my mates.
Speaker Change: So our most important value driver is making sure we have the talent within our four walls and under our roof to support our customers and to continue to achieve above market growth.
Speaker Change: I will now turn the call over to Brett to walk you through our portfolio.
Speaker Change: Okay.
Speaker Change: Okay.
Brett Milgrom: Thanks, Dirk. Good morning, everybody.
Brett: Thanks to Ericsson.
Brett: Good morning, everybody.
Brett Milgrom: This chart on page 5 represents the way we have constructed Loar to date. It will probably look familiar to a lot of you, certainly those of you who we met on the roadshow, or even those of you who read the S1, so I don't want to belabor all the points and charts here, but there are two things I do want to highlight. First and foremost, I want to highlight our extremely, extremely disciplined approach to how we construct the business and the business model. First and foremost, we are an aerospace and defense-focused company. Maybe most importantly, we like businesses where there is true proprietary content, where we own the intellectual property.
Brett: This chart homepage five represents the way we have constructed Laura today, it will probably look familiar to a lot of you certainly those of you who we met on the road show.
Brett: Or even those of you.
Speaker Change: <unk>, one so I don't want to belabor.
Laura: Belabor all the all the points and charts in here, but there are two things I do want to highlight first and foremost when a highway are extremely extremely disciplined approach to how we construct the business and the business model.
unknown: First and foremost we are an aerospace and defense focused company.
Speaker Change: Maybe most importantly, we like businesses.
Speaker Change: Where there's true proprietary content, where we own the intellectual property.
Brett Milgrom: The product is spec'd in, and we have leading market positions in those categories with WeParticipate. And those categories are typically niche markets across the aircraft where there are true barriers to entry, particularly at the price points of the products that we sell, which Ian's going to talk about in a minute. Those barriers to entry are created in large part due to the fact that certification costs and recertifying or requalifying a product are typically diseconomic not only for the customer but also for competitors who want to enter our market.
Speaker Change: The product is expecting.
Speaker Change: <unk>, we have leading market positions in those categories, which we participate.
Andrew: And those categories are typically niche markets across the aircraft, where there are true barriers to entry, particularly at the price points of the products that we sell which Andrew will talk about in a minute.
Andrew Smith: Those barriers to entry are created.
Andrew Smith: In large part due to the fact that certification costs and recertifying, our re qualifying our product.
Andrew: Typically is this economic not only for the customer but also for our competitors. So we want to enter into our market space.
Brett Milgrom: Lastly, in every business that we acquire, we need to have businesses that have a balance between the OE and the AFTA. If a business that we acquire doesn't currently sell into the aftermarket, it's something that we, at a minimum, need to see a path that we can enter so that we can capture the annuity of the 50-year life of that aircraft and the cash flows that that product provides. The other thing I want to highlight is the diversity and broad scope of our platform.
Andrew: Lastly in every business that we acquire.
Speaker Change: We need to have businesses that have a balance between OE and the aftermarket.
Speaker Change: A business that we acquire doesn't currently sell into the aftermarket is something which we had a minimum need to see a path that we can answer so that we can capture the annuity.
Speaker Change: Of the 50 year life of that aircraft.
Speaker Change: And the cash flows that that product provides.
Speaker Change: The other thing I want to highlight is the diversity and broad scope of our platform, whether it's the end markets, which you see here or the aircraft platforms that wrong because were on virtually any platform that you can think of where all the customers, we serve which we have no significant concentration with.
Brett Milgrom: Whether it's the end markets, which you see here, or the aircraft platforms that we're on, because we're on virtually any platform that you can think of, or all the customers we serve, with whom we have no significant concentration. We want to have a broad and diverse platform, not only because we want the opportunity to capture that 50-year annuity, but we also don't want to be exposed with any meaningful concentration to changing macroeconomic conditions that may affect any end market or platform or any one customer.
Speaker Change: We want to have a broad and diverse platform not only because we want the opportunity to capture that 50 year annuity but.
Speaker Change: But we also don't want to be exposed with any meaningful concentration to changing macroeconomic conditions that may affect any end market or platform or any one customer.
Brett Milgrom: I think everybody saw how we performed during COVID, and that was a testament to our diversity. And if we are diverse across all sectors of the sector, then we can continue to generate the consistent financial performance that you've seen from us in the past.
Speaker Change: Everybody saw how we performed during COVID-19.
Speaker Change: And that was a testament to our diversity and if were diverse across all spectrums of the sector.
Speaker Change: And then we can continue to generate the consistent financial performance you've seen from us in the past.
Speaker Change: Okay.
Speaker Change: Yeah.
Ian Mckillop: Thank you, Brett. As Brett mentioned, diversity was a common focus in building diversity across end markets, platforms, and, notably for those viewing the presentation, our products. Across the 16 brands at Loar, we go to market with over 15,000 unique and proprietary parts, with no one part making up more than 3% of our overall annual net sales, and our parts have an average selling price of less than $1,000. Our products are found across the aircraft, embedded in engines, as part of the avionics, within hydraulic systems, as de-icing systems, restraint and safety systems, galleys, landing gear, actuation, and included in many other systems and subsystems that we will not be able to cover on today's call.
Speaker Change: Thank you Brett as Brent mentioned diversity was a common focus in building and lower diversity across end markets platform and notably for those viewing the presentation our products across our 16 brands that Laura we go to market with over 15000 unique and proprietary parts with no one part making up more.
Laura: Than 3% of our overall annual net sales and our parts have an average selling price of less than $1000. Our products are found across the aircraft's embedded in engines as part of the avionics within hydraulic systems as the icing systems restraint and safety systems galleys landing gear actuation and included and many other systems and subsystems that.
Speaker Change: We will not be able to cover on today's call. The proprietary nature of our products makes them mission critical for our end customer and ties us to the overall life of the aircraft as many of you know the life of an aircraft can exceed 50 years over multiple operators the design and specs in nature of our products allows us to serve not only the original aircraft manufacturer that.
Ian Mckillop: The proprietary nature of our products makes them mission critical for our end customer and ties us to the overall life of the aircraft. As many of you know, the life of an aircraft can exceed 50 years across multiple operators. We believe that the diversity and proprietary nature of our product offering provides us with this opportunity.
Speaker Change: Also the aftermarket through the many operators of the aircraft fees over its lifetime, we believe that the diversity and proprietary nature of our product offering.
Speaker Change: It provides us the opportunity and more importantly, the capabilities to serve our customers in a way that is unique to lower now.
Glenn: Now I'll hand, the call over to Glenn.
Glenn D'Alessandro: Thank you, Ian. Good morning, everyone.
Glenn: Thank you good morning, everyone. Let me start by discussing sales by our end markets. This comparison will be on a pro forma basis.
Glenn Smith: As of each of our businesses were owned as of the first day of the earliest period presented.
Glenn D'Alessandro: Let me start by discussing sales by our end mark. This comparison will be on a pro forma basis as if each of our businesses were owned as of the first day of the earliest period presented. We had record sales during the first quarter of 2014. In total, our sales increased to $92 million, a 12.3% increase as compared to the prior year. This increase was driven by strong performances in commercial OEM, commercial aftermarket, and defense sales.
Glenn Smith: We had record sales during the first quarter of 24 in total our sales increased to 92 million or 12, 3% increase as compared to the prior year period.
Glenn Smith: This increase was driven by strong performances in commercial OEM commercial aftermarket and defense sales.
Glenn D'Alessandro: Our total commercial OEM sales increased by 29% in Q1-24 as compared to the prior year. This increase was driven primarily by higher sales across a significant portion of the platforms we supply, including general aviation, widebody, and narrowbody aircraft. As an improvement, Supply Chain has allowed us to deliver parts that were previously held because our customers were experiencing bottlenecks in other areas of their supply chain.
Speaker Change: Our total commercial OEM sales increased by 29% in Q1 24 as compared to the prior year.
Glenn: This increase was driven primarily by higher sales across a significant portion of the platforms, we supply, including general aviation wide body and narrow body aircraft as an improving supply chain has allowed us to deliver parts that were previously held because our customers were experiencing bottlenecks in the air.
Glenn: Areas of their supply chain.
Glenn D'Alessandro: The increase in total commercial aftermarket sales of 5% was primarily due to the continuing recovery in commercial air travel demand, partially offset by destocking at a handful of our distributors and end customers. Our Q1-24 commercial aircraft bookings were strong, and our commercial aftermarket year-over-year backlog was up 25% at March of 24 versus March of 23. The strong bookings and backlog support our full-year 24 outlook for commercial aftermarket sales growth of low double digits.
Speaker Change: The increase in total commercial aftermarket sales of 5% was primarily due to the continuing recovery in commercial air travel demand, partially offset by Destocking at a handful of our distributors and end customers. Our Q1 'twenty for commercial aircraft bookings were strong and our commercial aftermarket euro.
Speaker Change: Year over year backlog is up 25% at March of <unk> 24 versus 23, the strong bookings and backlog support our full year 'twenty for outlook for commercial aftermarket sales growth of low double digits.
Glenn D'Alessandro: The increase of 8% in our defense sales was primarily due to strong aftermarket demand across multiple platforms and an increase in market share as a result of our new product launch. So, let me recap our financial highlights for the first quarter of 2024. These are our actual results.
Speaker Change: The increase of 8% and our defense sales was primarily due to strong aftermarket demand across multiple platforms and an increase in our market share as a result of our new product launches.
Glenn D'Alessandro: So, our net organic sales increased 11.1% over the prior year. The gross profit margin for Q124 was flat with the prior year period. This was due to a sales mix with slightly lower-margin OEM sales, as well as charges related to the moving of one of our manufacturers. However, these items were offset by pricing and operating leverage. Our increase in net income of $9.8 million in Q1-24 versus Q1-23 is primarily due to higher operating income, as well as from the establishment of a valuation allowance during Q1-23 against the company's deferred tax asset related to our disallowed interest carry-forward.
Speaker Change: Sure.
Speaker Change: Let me recap our financial highlights for the first quarter of 'twenty. Four these are actions. So our net organic sales increased 11, 1% over the prior year period.
Speaker Change: Our gross profit margin for Q1, 'twenty four was flat with the prior year period.
Speaker Change: This was due to sales mix was slightly lower margin OEM sales as well as charges related to the moving of one of our manufacturing facilities. These items were offset by pricing and operating leverage.
Speaker Change: Our increase in net income of $9 8 million in Q1 versus Q1, Q1 24 versus Q1 'twenty three is primarily due to higher operating income as well as from the establishment of a valuation allowance during Q1 'twenty three against the Companys deferred tax asset related to our disallowed interest carry.
Speaker Change: Forward.
Glenn D'Alessandro: Adjusted EBITDA margins remained strong at 36% despite the temporary dilution from two acquisitions completed in the second half of 2023 and the continued build-out of our infrastructure to support our reporting, governance, and control needs as a newly public company, to increase the EBITDA margins of our two newly acquired businesses as we continue to integrate them into Loar. So what have we been up to since March 31st?
Speaker Change: Adjusted EBITDA margins remained strong at 36% despite the temporary dilution from two acquisitions completed in the second half of 'twenty three and the continued build out of our infrastructure to support our reporting governance and control needs as a newly public company we expect.
Speaker Change: To increase the EBITDA margins of our truly two newly acquired businesses as we continue to integrate them into war.
Speaker Change: Okay.
Speaker Change: So what have we been up to since March 31.
Glenn D'Alessandro: Well, we closed the IPO on April 29th, which raised $333 million with the exercise of the green share. We used $285 million of those proceeds to pay down borrowings. With both of these transactions, our pro forma net leverage to our trailing 12 months of EBITDA through March 24 was 1.6 times. We also amended and restated our credit agreement on May 10th of 24. It was, this was done with no incremental fees.
Speaker Change: Well, we closed the IPO on April 29th which raised $333 million with the exercise of the green shoe.
Speaker Change: We used $285 million of those proceeds to pay down borrowings.
Speaker Change: With both of these transactions our pro forma net leverage to our 12 trailing.
Speaker Change: Trailing 12 months of EBITDA through March 24 was one six times.
Speaker Change: We also amended and restated our credit agreement on May 10 of 24.
Speaker Change: It was that this was done with no incremental fees with this amendment, we extended the maturity of the term loans through may of 2013.
Glenn D'Alessandro: With this amendment, we extended the maturity of the term loans through May of 2030, and our interest rate was reduced by 250 basis points as long as we maintained a leverage ratio of less than 5.5 to 1. With the paydown of the $285 million of indebtedness and the reduction of the interest rate, our pro forma annual interest expense would be $26 million. We also increased our liquidity to support reinvestment and inorganic growth by increasing the unused commitment under our delayed short-term loan to $100 million and establishing a new $50 million revolving credit facility.
Speaker Change: Our interest rate was reduced by 250 basis points as long as we maintain a leverage ratio of less than five five to one.
Speaker Change: With the pay down of the $285 million of indebtedness and the reduction of the interest rate our pro forma annual interest expense would be $26 million.
Speaker Change: We also increased our liquidity to support reinvestment in inorganic growth by increasing the unused commitment under our delayed draw term loan to $100 million.
Speaker Change: And establishing a new $50 million.
Speaker Change: <unk> credit facility.
Dirksen Charles: With that said, if you guys remember the S-1, we gave a flash range of our expectation for the first quarter. Results for the quarter came in at record sales and adjusted EBITDA right on top of the high end of our range. This is a strong start to the year. This is why we feel very, very, very strongly, and we have high confidence in achieving the outlook we've put in front of you here, plus the strengthened available seat miles, which domestically are above 2019 levels and globally, as projected by ADA, to be above 2090 levels in 2024. Strong, strong tailwind.
Speaker Change: With that said.
Speaker Change: If you guys remember the S. One we gave a flash range of our expectation of the first quarter.
Speaker Change: Results the quarter came in at record sales and adjusted EBITDA right on top of the high end of our range. This is a strong start to the year.
Speaker Change: This is why we feel very very very strongly and we have high confidence in achieving the outlook. We put in front of you here.
Speaker Change: That plus the strength of the available seat miles, which domestically above 2019 levels and globally as projected by adder to be above 2019 levels in 2024. So.
Speaker Change: Strong strong tailwind.
Dirksen Charles: In addition, as Glenn mentioned, and I want to make sure everyone understands, we have seen a 25% increase in our commercial aftermarket backlog at quarter end year-over-year. It's the strongest backlog we have seen in our history. And this strong backlog for our products and services; we've seen it in our defense end market. Add all that up, combined with our continued execution of our value drivers, gives us a high degree of confidence that we will achieve organically double-digit percentage improvement in sales across all our end markets in 2024 on a pro performer basis. So, what do we expect?
Speaker Change: In addition, as Glenn mentioned and I want to make sure everyone gets this.
Glenn Smith: We have seen a 25% increase in our commercial aftermarket backlog at quarter end year over year.
Glenn Smith: Strongest backlog, we have seen in our history.
Glenn Smith: And this strong backlog for our products and services also we've seen it in our defense end market.
Speaker Change: And all of that combined with our continued execution of our value drivers gives us a high degree of confidence that we will achieve organically double digit percentage improvement in sales across all our end markets in 2024 on a pro forma basis.
Dirksen Charles: Sales between $370 and $374 million for calendar year 2024. Adjusted EBITDA between $132 and $134 million for the calendar year. Adjusted EBITDA margin of approximately 36%, and as we said, we continue to improve results at DAC and CAV, recent acquisitions, and we're developing our infrastructure to meet our public company needs. That's all baked into that 36%.
Speaker Change: So what do we expect sales between $370 million to $374 million for calendar year 2024.
Speaker Change: Adjusted EBITDA between $130 million to $134 million for calendar put it put a calendar year.
Speaker Change: Adjusted EBITDA margin of approximately 30, 36%.
Speaker Change: And as we said we continue to improve results of DAC and Caf recent acquisitions and we are developing our infrastructure to meet our public company, that's all baked into that 36%.
Dirksen Charles: We expect net income between $25.7 and $27.1 million and adjusted EPS between $0.41 and $0.43 per share for the year. In addition... We expect capital expenditures to be approximately $11 million dollars, fully at interest expense of approximately $42 million dollars, with an effective tax rate of around 30%. B and A, approximately $40 million, non-cash stock-based comp of $9 million, and our fully diluted share count will be approximately $91 million. Sorry. Most importantly...
Speaker Change: We expect net income between 25, 7% and $27 1 million.
Speaker Change: And adjusted EPS between <unk>, 41, and <unk> 43 per share for the year.
Speaker Change: In addition, that's fun.
Speaker Change: We.
Speaker Change: Our capital expenditures to be approximately $11 million full year interest expense of approximately $42 million.
Speaker Change: While the effective tax rate of around 30%.
Speaker Change: DNA approximately $40 million.
Speaker Change: Noncash stock based comp of $9 million and our fully diluted share count will be approximately $91 million.
Speaker Change: <unk>.
Speaker Change: Million shares sorry, most importantly.
Dirksen Charles: If we do not acquire any businesses this year, we will have approximately $100 million of cash on hand at the end of 2024. With that said, our drumbeat since our formation has been to acquire one or two businesses each year, which is not included in our outlook for 2024 that you see here. As you guys know, the timing of such acquisitions cannot be predicted, but we are focused on that value driver also. So, with that, as Ian stated at the beginning of the call, given that we've been a public company for only a little over two weeks... Our analysts are in their version of a quiet period and cannot ask questions.
Speaker Change: If we do not acquire business. This year, we will have approximately $100 million of cash on hand at the end of 2024.
Speaker Change: With that said our drumbeat since our formation is to acquire one or two businesses each year, which is not included in our outlook for 2024 that you see here.
Speaker Change: As you guys know the timing of such acquisitions, we cannot predict but we are focused on that.
Speaker Change: Driver also.
Speaker Change: So with that as being stated at the beginning of the call.
Analyst: Given that we have been a public company for only a little over two weeks. Our analysts are in their version of a quiet period and cannot ask questions. So we will not take questions today, but look forward to the future quarterly calls when they can dig in.
Dirksen Charles: So we will not take questions today but look forward to the future of Quarterly Calls when they can dig in. With that, thank you for joining Loar's First Quarterly Earnings Call and hope to see you guys in 13 weeks. Thank you. Thank you. This will conclude today's conference.
Operator: Thank you. This will conclude today's conference. You may disconnect your lines at this time, and thank you for your participation. Thank you for watching!
Speaker Change: With that thank you for joining <unk> first quarterly earnings call and hope to see you guys in 13 weeks.
Analyst: Thank you.
Speaker Change: Thank you. This will conclude today's conference you may disconnect. Your lines at this time and thank you for your participation.
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