Q4 2024 CSW Industrials Inc Earnings Call
Greetings and welcome to CSW industrials fiscal fourth quarter, 'twenty, 'twenty, four and full year conference call.
At this time all participants are on 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 keypad.
As a reminder, this conference call is being recorded.
I'd now like to turn the conference over to your host Alexa water. Thank you you may begin.
Thank you Rob good morning, everyone and welcome to the CSW Industrials' fiscal 2020 for fourth quarter and full year earnings call. Joining me today is Joseph Armes, Chairman, Chief Executive Officer, and President of CSW Industrials.
And James Perry Executive Vice President and Chief Financial Officer.
Issued our earnings release updated Investor Relations presentation, and Form 10-K prior to the market's opening today all of which are available on the investors portion of our website at www Dot CSW industrials dotcom.
This call is being webcast and information on accessing the replay is included in the earnings release.
During this call we will make forward looking statements. These statements are based on current expectations and assumptions that are subject to various risks and uncertainties.
Actual results could materially differ because of factors discussed today in our earnings release and the comments made during this call as well as the risk factors identified.
In our annual report on Form 10-K, and other filings with the SEC, we do not undertake any duty to update any forward looking statements I will now turn the call over to Jeff.
Thank you Alexis.
Morning, everyone.
Once again, it's my pleasure to report to you that our team has executed and outperformed the markets we serve we.
We achieved record results in both the fourth quarter and the full fiscal year.
Surpassing the healthy performance of the prior year.
Earlier. This morning, we reported record fourth quarter revenue EBITDA and earnings per diluted share.
We also delivered meaningful EBIDTA margin expansion in the fiscal fourth quarter.
C. S. W. O I has now delivered four consecutive quarters of record result, and therefore also generated record full year results and revenue of 793 million% to 4.6% growth.
And adjusted earnings per diluted share of $7.01 or 12, 9% growth.
And an adjusted EBITDA of $200 million, representing a robust 14, 9% growth.
For the full year, our adjusted EBIDTA margin expanded by 220 basis points.
We continued to deliver strong cash flow from the operations despite being in a quarter, where we typically are building inventory for the start of the summer season with the fiscal fourth quarter cash flow from operations of more than $22 million.
Our gross profit margin has expanded this year, primarily due to increased volumes and pricing initiatives and reduced ocean and domestic freight in the first few quarters of the year.
<unk> has achieved meaningful operating leverage and further expanded our best in class margins.
We've invested in future growth that will outpace the markets we serve.
In line with our capital allocation strategy of priority cap prioritizing capital investments based on their expected risk adjusted returns. This year the company invested in capital expenditures acquisitions, and return cash to shareholders through dividends and share repurchases.
We continue to seek both organic and inorganic investments and opportunities for growth with attractive returns that support our healthy margins.
Fund our capital allocation strategy, we relied on our record cash flow from operations of 164 million or 35% growth during the full fiscal year of 2024.
Our impressive cash flow allowed the company to again increase its most recent quarterly cash dividend that was paid on May 10 by 10, 5%, making me 21st consecutive regular quarterly cash dividend.
During the full fiscal year, the outstanding debt on our revolving credit facility decreased by $87 million as we paid down debt with our excess cash flow.
Having balance sheet strength and robust cash flow gives us confidence to pursue businesses.
To pursue business opportunities of any size.
I am proud of the arc of the execution by each of our three business segments during the last quarter of the fiscal year.
I'll, let James provide additional details around the performance of each segment during the quarter.
But before I turn the call over to James I would like to take a moment to thank our team for delivering top line growth in every segment for the full fiscal year of 2024.
Last year at this time on our Q4 and year in earnings call for fiscal 2023, We said, we expected top line growth in each business.
And our teams have executed and delivered exactly that through volume and pricing during a year when some of our end markets were simply not growing.
The resilience of our teams the end markets, we serve and the enduring value of our products allow CSW I to continue to grow through the cycles and the overall market.
Speaker Change: Our model to deliver low cost and high value products to our customers continues to attract new customers for the company and allows us to report record financial results like we have today.
At this time I'll turn the call over to James for a closer look at our Salt and then I will conclude our prepared remarks.
Thank you Joe and good morning, everyone.
As Joe mentioned during the full fiscal 2024 year, we delivered record revenue of $793 million representing growth of four 6%.
$24 million of the growth was organic through increased volumes and pricing initiatives.
The remaining $11 million of growth for the full year and from the acquisitions of cover Guard AC Guard Falcon and dust free.
Operating leverage on this revenue drove 15% growth in adjusted EBIDTA, along with 220 basis points of margin expansion and over 13% growth in adjusted earnings per diluted share.
Our consolidated record revenue during the fiscal fourth quarter of 2024 was $211 million, an 8% increase when compared to the prior year period.
Speaker Change: This growth was half driven organically through increased unit volumes and pricing initiatives and have driven by inorganic growth from the newly acquired does for your business.
Consolidated gross profit in the fiscal fourth quarter was $94 million, representing nearly 10% growth over the prior year period.
The gross profit margin improved by 80 basis points to 44, 4% compared to 43, 6% in the cloud.
Our consolidated EBITDA for the fourth quarter increased by $6 million to $56 million, 13% growth.
When compared to the prior year period.
Our EBITDA margin improved by 130 basis points to 26, 5% as compared to 25, 2% in the prior year quarter, driven by gross margin expansion.
Partially offset by incremental investments for future revenue.
We will continue to strive for additional EBITDA leverage as we grow revenue manage expenses. We are very proud of our current EBIDTA margins, we maintain our focus on growing the EBITDA dollar growth.
Net income attributable to see SWR in the fiscal fourth quarter was $32 million or $2 <unk> per diluted share compared to $27 million or $1.74 per diluted share in the <unk>.
Prior year period, representing growth of 17%.
Our contractor solutions segment was $141 million in road accounted.
Accounted for 66% of our consolidated revenue.
Delivered $7 $3 million or five 4% total growth.
The prior year quarter.
Of the revenue growth in the quarter $3 $8 million or two 8% was organic while the remaining $3 $5 million or two 6% came from the newly acquired dust free business.
The fourth quarter acquisition of dust fruit brings an extensive line of patented products for residential and commercial indoor air quality and HVAC applications silicon.
Growth for the quarter was reported in the HVAC architecturally specified building products General industrial end markets.
Speaker Change: <unk> was a result of increased unit volumes.
Segment, EBITDA was $47 $3 million, 33% of revenue compared.
Compared to $42 7 million or 32% of revenue in the prior year period.
Impressive margin expansion.
Our specialist reliability solutions segment revenue increased 8% to 41, 6% due to volume growth and pricing initiatives.
Revenue growth in the quarter came from the general industrial mining and energy end markets.
Higher oil prices supported energy demand and production during the quarter.
The segment, EBITDA, and EBITDA margin of $8 2 million and 20% respectively. In the fiscal fourth quarter were generally in line with the prior year periods results.
We have mentioned before that the targeted EBITDA margin for this business is 20% we're proud that our team delivered this quarter.
Our engineered building solutions segment revenue increased to $40 $1 million, a 20% increase as compared to $25 million in the prior year period.
Speaker Change: Project mix in our backlog continues to skewed towards larger jobs, which may take years to turn to revenue.
Bidding and booking trends remain solid.
Speaker Change: At the end of the fiscal fourth quarter, our book to Bill ratio for the trailing eight quarters was approximately $1 one to one.
Speaker Change: Our sales team is focused on bidding on and booking institutional and multifamily projects with the highest quality developers.
Segment, EBITDA grew 98% to $6 $2 million or 20% EBITDA margin compared to $3 $1 million and a 12% margin in the prior year period.
Like the Srs segment, we target a sustainable 20% EBITA margin in this segment as well and are making progress on that goal.
Transitioning to our strong balance sheet and cash flow.
Speaker Change: We ended our fiscal 2020 for fourth quarter were $22 million of cash and reported fiscal fourth quarter cash flow from operations of $22 million.
Speaker Change: Compared to $37 million in the same quarter last year.
For the current full fiscal year 2024, the company had a record cash flow from operations of $164 million or <unk>, 35% growth compared to $121 million in the prior fiscal year.
Our free cash flow defined as cash flow from operations minus capital expenditures was $17 $5 million in the fourth quarter compared to $31 $7 million in the same period a year ago.
That resulted in free cash flow per share of $1 12 in the fiscal fourth quarter as compared to $2 for the same period a year ago.
Speaker Change: Our free cash flow for the full fiscal year was $147 8 million as compared to $175 million in the same period a year ago.
That resulted in free cash flow per share.
$9 48 for fiscal 2024 as compared to $6.91.
Speaker Change: Prior fiscal year.
Speaker Change: Impressive level of free cash flow fuels, our capital allocation, allowing us to invest in growth and enhance shareholder value.
During the quarter outstanding debt on our revolving credit facility increased by $13 million due to the $27 $9 million of cash consideration for the dust free acquisition offset by our cash flows.
The addition of desperate to our portfolio allows CSW or the ability to offer industry, leading technologies that addresses indoor air quality.
We ended the fiscal fourth quarter was $166 million outstanding on our $500 million roll.
Our bank covenant leverage ratio at quarter end was seven.
Speaker Change: Seven three times.
Moving from one three times at the end of fiscal 2023.
Our strong EBITDA growth and the $87 million Paydown offered during that period.
As a reminder, the company has been the lowest tier of our offer pricing grid since reporting our fiscal 2024 first quarter, reducing our interest rate spread savings on interest expense.
Speaker Change: During the fiscal fourth quarter and the full fiscal 2024.
First rate hedge for the first $100 million of borrowings under the revolver saved us approximately $400000 and $1 $5 million, respectively and interest expense.
Our effective tax rate for the fiscal fourth quarter was 23, 8% on a GAAP basis.
As we look out to fiscal 2025, we anticipate delivering full year revenue growth as well as EBITDA and EPS growth with continued strong cash flow with that.
I'll now turn the call back to Joe Personalizing remarks.
Thank you James.
To summarize during the fourth fiscal quarter of 2024, and the full year, we posted record results across the board highlighted by organic and inorganic revenue growth.
Banded margins and robust cash flow and consummated the acquisition of dust free.
Since going public in 2015 C. S. Wi has grown our market cap over 700% to around $3 $8 billion. While also delivering 720% total shareholder return. We're proud that we have the same number of shares outstanding today is when we went public.
Fiscal 2024 was a record year for CSW lie.
And our revenue a revenue CAGR over the past five years is 18%, including both organic growth and growth through acquisitions, where we have invested over $600 million since fiscal 2016.
Speaker Change: As we begin fiscal 2025, we expect a year of revenue EBITDA and EPS growth as James mentioned earlier.
We also expect to continue our history of executing on acquisitions to complement our organic growth.
As I look at our expectations for fiscal year 2025, we should see similar top line growth as fiscal 2024, while maintaining our strong margin profile.
Yes.
Our goal is to make it as easy as possible to do business with CSW I and to be the partner of choice for our loyal customers.
Earlier this month, our contractor solutions segment received the vendor of the year Award from Blue Hawk and H P. A C. Our distributor cooperative with over 200 member owners.
This award further demonstrates our commitment to our customers and I'm extremely proud of the contractor solutions team for their continued achievements.
Of note. This is the third major vendor of the year Award we have won over the last 18 months.
At <unk>, we are committed to a culture of diversity inclusion and respect where we focus on recruiting and retaining great talent offering rewarding careers recognizing team members, who excel, while providing the opportunity for a safe secure and dignified retirement.
I could not be more proud to announce that CSW I.
Recently been certified as a great place to work for the second year in a row.
This recognition is a testament to our team members embracing our focus on core values, such as accountability citizenship teamwork respect integrity stewardship and excellence.
Speaker Change: How we succeed matters and our success are shaped by the collaborative efforts of our team members.
As always I want to close by thanking all my colleagues here at CSW, who have collectively who collectively own approximately 4% of CSW I through our employee stock ownership plan as.
As well as all of our shareholders for their continued interest in and support of our company.
With that operator, we're now ready to take questions.
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Our first question comes from John and want them with C. J C. J S. Securities. Please proceed with your question.
Hi, good morning.
Thank you for taking my questions and really nice quarter there.
My first question just regarding the quarter. This Q4 looked a lot like historical Q1, and Q2 performance is just from a revenue and margin perspective I was wondering did you pull anything into the quarter or see anything that was more onetime in nature.
Maybe in a project based businesses or is this more of a base that you expect to build on going forward.
Interest seasonally strongest quarters.
Yes, John Thanks, It's James I. Appreciate your question and all the good work you do for the shareholder community I've mentioned, a couple of things if you dive into the 10-K Youll see a couple of things as well our engineering building solutions segment sold a prior facility they relocated to a larger facility. This quarter. So we had kind of a onetime property gain that was $1 two didn't hit.
Speaker Change: Revenue, but that would help our EBIDTA little bit so that was a bit of a one timer.
You had some things going the other way and other segment. So so that was relatively neutral. So we didn't call. It out and we don't we don't do adjusted type things very often you'll recall at the end of Q3, our special allows liability segment.
Just getting some product out at the end of December and we were able to make that up on the last call. You'll remember in early February we had already made that up so they have they have a little better quarter than they might have as a result of that that was more.
A catch up in a pull forward those so that was certainly not the case.
Our contractor solution segment, just continued to perform well I mean, I think we see and the Oems have centered as well, but a lot of the destocking seems to be behind US now our customers order from US we have our usual price increase in promotional session. As we go through our fiscal fourth quarters, everybody gets ready for the summer season. So the quarter I think was pretty it was.
Any normal they did a really nice job getting things out the door by the end of the quarter.
And I'd say overall, a pretty normal quarter shortly on the top line.
Yeah, it's hard to ever know would you expect quarter to quarter. Some things commandment, there weren't any big project pull forward sooner point, we didnt necessarily.
Paul anything dramatic from Q1 to end of Q4, So I think as we as we said we expect to have top line growth.
This next year very healthy topline growth and our goal is to maintain these margins that our teams from 34 for the last several quarters.
Got it that's very helpful and I was just wondering about that top line growth guidance.
Or I guess the outlook of similar to 2020 excuse me the fiscal 'twenty four but what are the components of that could you kind of rank what do you expect to be growing the fastest in the flows among the segments or end markets that you're in.
Yeah, I don't think anything terribly unusual there.
It's a little early in the year to know where the end markets are going the residential HVAC space has been a bit of a headwind and it's starting to turn a little bit we've clearly outperformed that from from the residential OEM HVAC perspective. So our team continues to do a really nice job there it.
It Hasnt gotten real hot yet the folks of course are gearing up for that and it will.
Specialized run ability solutions standpoint, the joint venture continues to ramp up.
And our business is prepared for that so we've got a little bit of.
And optimistic tailwind there.
In building solutions, they built a really healthy backlog.
Book to Bill continued to stay in a really good place there are some headwinds there in certain markets as we all would expect some of the construction markets, but overall again last year, we had nearly 5% revenue growth and we said roughly in line from an organic standpoint, I think we would expect that and then we only had a couple of months of the dust free acquisition, we wanted to.
That was about three $5 million and that was just a couple of months. So you'll have a full year of that now so that run rate would get you kind of a little bit higher from an inorganic perspective growth rate given the industry has been a really nice addition to the portfolio already.
Fair enough. Thank you and then a last one ill jump back in queue, but.
Just any thoughts to the margins going forward, you're expecting revenue growth.
But maybe not so much margin expansion and to your credit you've done a great job on margins on a trailing basis. So I'm wondering.
Is there less upside to the margins as you see it today and kind of what.
What might be holding you back if that's the case.
Yes, John I'll take that.
I think we said our goal is to sustain the margins. We have these are best in class margins in all of our segments.
Srs segment has gotten to the 20% goal of course, we're going to continue to push and see where we can find some more margin points <unk> goal is to get to 20%. They were there this quarter aided a little bit by the gain I talked about but nonetheless, even without that it's still kind of a mid to high teens businesses and the goal there from the team.
Mr hit 20% as well.
Not too distant future and then contractor solutions with these kind of low to mid thirties margins, 33% margin. We have rear view mirror now just tremendous margins.
The one thing we point out when we say the goal is to sustain this as hey, we're very proud of the margins as we grow the top line. The bottom line is going to grow from a dollar perspective.
That's the ultimate goal is to have dollars to reallocate has strong cash flows and invest in our growth, but we had some.
<unk> is on the pricing the last couple of years that we were able to increase in some of the cost came down we hold onto that pricing. So we were able to kind of improve our margins and get back to some of the pre.
The pre Covid type margins, especially in contractor solutions, we're back there, even though cost of goods sold continue to be elevated in some of the places while we've had some of that come back and we've held onto the pricing that's given us. This bump, but this year was kind of a year of normal pricing increases and normal inflation. So far it looks like sort of hang on to these type of margins and of course the goal.
Mr.
To maximize margins, where we can as we hold onto cost, but we would expect to sustain these margins and as we can eke out some basis points here and there we're going to work hard to deliver that.
John This is Joe as you recall, because you've been with us for a long time.
When we went public we had best in class margins and we stated our goal was to grow meaningfully and maintain our margins and we said if we did that our shareholders be rewarded and we feel like that's played out exactly the way we plan the ups and downs on how we got there have been very very different could've never predicted that but.
But I think that continues to be the strategy I mean, it is a strong filter on acquisitions and other investments that we make that we have these kind of margins and I think that adds to our disciplined approach on M&A and I think that.
It's served us really really well.
They have a kind of a strategy and I think we'll just continue doing the same.
No you've done a great job. Thank you I'll.
Wait for the next opportunities thanks, John.
Our next question is from Julio Romero with Sidoti <unk> Company. Please proceed with your question.
Thanks, Hey, good morning, Joe James at Alexa, Thanks, very much for taking the questions.
Maybe to start on the contractor solutions segment.
Very nice quarter here is it in your prepared commentary sounds like you feel pretty good here through customer Destocking.
Some of the HVAC Oems have noted positive commentary surrounding residential HVAC demand.
I think one major one called out low single digit volume growth for the remainder of calendar 'twenty four is that.
Is that kind of in line with what you folks are seeing at the moment.
Well, we've seen mixed projections the industry wide.
Estimates going forward are much lower than that but I do believe that in real time.
The OEM.
Community seems to be a little more positive so I would say mixed.
Backdrop for us, but against that our commitment is always to outgrow the market and we think that will result in.
Positive organic growth for us.
And similar to last year.
Understood and I guess.
Speaker Change: As we think about contractor solutions positive organic growth I guess, it would be a mix of price and volume for fiscal 'twenty five.
Yes, yes, we've already put our price increase through and that's the usual 2%. We're back to just kind of a normal low ish single digits and then we would expect volumes to grow as well then you have the acquisition tailwind from desperate as I've mentioned getting into that indoor air quality market was important to us. So yes. So we see we see acquisition growth unit volume growth.
And then the tailwind or pricing all contributing to that topline growth.
Excellent and then I guess just to delve into industrial a little bit indoor air quality is not a fee might be.
I believe I've heard you guys talk about too much in the past can you maybe speak to the indoor air quality opportunity and.
Are there other.
Ganic opportunities that are in line with that indoor air quality.
Being going forward.
There are sure and yes, you can we can certainly dive into indoor air quality quite a bit it's a topic that has been out there for a long time.
In filtration and some UV <unk>.
Technology.
When COVID-19 hit it became a really big topic and I'll give our contracts our solutions team a lot of credit. Our first step was not to go out and make an acquisition when it really started to surge our surplus to partner with us for either as a local company here just outside of Dallas starts in being in Houston. It was convenient to do that our team had known the folks at dust free which.
The multi generational company for a long time, so we license their product and we became a master distributor for them and we kind of learn the product category, we learned how would sell through the channel, there's some OEM customer business there as well.
All the same distribution channel that we go through there is some direct to OEM type products as well so our salesforce learn that channel learned to work with those folks in a little different way and really understood the category.
A lot of indoor air quality companies kind of had the surge came back to Earth and didn't make it or haven't done much dust free has continued to be proven to be one of the winners in the categories. So we have the opportunity to partner with the ownership team there and by the company and we took advantage of that opportunity earlier. This year in a really nice transaction for for that family that really.
We built a great company and good to have this as part of the CSW Our family now so again, it's a product that's got a lot of different applications again through filtration and UV technology and some other things are developing so really proud to have that business predictive quality. It's a.
Indoor Air quality is a segment that we've talked about here and there because we've been licensing it and now that is part of who we are we can look at growing that business organically, but also seeing bolt on acquisitions as we always do when we enter a new category you saw us do that when we bought through our four years ago. We bought <unk> that was our entry into the <unk> market a year later, we added shoemaker.
Is it product portfolio, they gave us a little different geography, and got us to the.
The commercial segment as well so yes building on categories like that that we're already in and has been a focus of our M&A.
DNA.
Perfect and then just last one for me is that I'm sure, it's probably somewhere in the 10-K somewhere but.
Remind us what your HVAC sales.
And as of today as a percentage of the overall business.
Let me pull that forward real quick HVAC was 54% as last year. It was 55 the year before so to stay pretty steady.
Okay, great steady, but with ER I assume with dust freedom hobby.
Yes, that's the total contractor solutions HVAC is the vast majority of plumbing and electric being the other couple of pieces relatively small HVAC the vast majority and keep in mind again, we categorize those things based on who we sell to serve some HVAC products that go to more plumbing distributors and vice versa. So it's not an exact.
But if the overall consolidated entity the way we reported in the 10-K is 54% of total all of that of course being within contractors, yes, industrial will be incremental to that absolutely.
Very good thanks, very much I'll hop back into queue.
Thanks Julia.
Our next question is from John 10 watching with C. J S. Securities. Please proceed with your question.
Hey, guys. Thanks for the follow up just wanted to get an update on the M&A pipeline, what youre seeing out there what end markets look relatively more attractive today, and if youre seeing opportunities evaluation has changed compared to the last.
Quarter to quarter that you've been in the market.
Speaker Change: Sure.
We see a.
Strong robust pipeline for our potential acquisitions are very pleased with the continuing kind of interest in partnering with us in the way the team identifies opportunities for us.
So no no shortfall there we do feel like the backdrop is has cooled off just a bit.
Feels like maybe the sponsor community.
It has been slower to two.
<unk>.
Ben on Overbid on.
The central acquisitions, and so we're encouraged by that obviously interest rates are up and it's more expensive but.
That is with our strong balance sheet and our cash flow, we think that's a better environment for us and a lot of ways. Because we can we can weather that storm much better than some others. So very pleased with the outlook very pleased with the pipeline we'd be very disappointed if we if we can't get something done this year.
Got it.
And then lastly, just a little more drill down on the EPS segment I was just wondering with the orders.
I've looked like and you've given the trailing eight quarters of book to Bill, but in the last two quarters, if things that have kept pace relatively with with how things are.
Trying to you know over a longer timeframe just looking at Abi has been down for many quarters in a row now and I'm wondering if that strength is sustainable I know you guys are at the end of projects that are funded.
Any insight into the real time and it would be.
Helpful.
Yes, we see the same AVR results and obviously that's been negative for a while our team has just done a really good job focus on the right projects. The backlog has been relatively flat for last couple of quarters at least are keeping up with our revenues, which is important. So we've got a good healthy backlog in some of the projects that slowed down a bit but as we've always said you know the vast majority of our projects in the backlog or out of the ground and we're at the back end.
So it takes a while some of the markets that were a little hotter a couple of years ago like Toronto has slowed down a bit that's just natural some parts of California has picked up so you've seen things slip a little bit.
Our balco business has done really well the Greco business has done very well smoke guard funding some new creative ways to use their products in different applications.
Scott and his team are really doing a nice job.
We're seeing things I would say that overall things are a little slower going from bidding to booking.
But our team is out there seeing a lot of it is just that cycle return it into the backlog has maybe taken a little longer but they are still getting the job done and across the board, they're finding as I said, new applications and really focused on the right areas with one area slows down another one to pick up a little bit.
The construction market and despite <unk> being relatively negative our teams just focus on the right markets and the right projects and Thats important we really make sure what we book a project that we've invested a lot of time on the estimating to really call out the project, but also did the due diligence on the project itself is it a high quality project doesn't have financing.
Those kind of things. So you don't see in our backlog of projects that are kind of pie in the sky. One may go away occasionally that happens within any business, but overall, we're working with very high quality customers and projects.
Okay.
John the other thing I would add there as you've been an astute observer here, but.
The slowdown if there is a slowdown will be well telegraphed it shows up in biddings. It shows up in bookings it shows up in backlog before it shows up in revenue. So we kind of warm that through the pandemic in at this point.
A lot of that backlog is now in the revenue phase and that that is going to be shown in the positive results. We're seeing but we will have lots of warning if that market for us if that that segment turns down.
Speaker Change: Understood. Thank you.
Thanks, Sean.
Thanks, Jeff.
We have reached the end of the question and answer session I would now like to turn the call back over to management for closing comments.
Great Rob. Thank you very much we really appreciate everybody's interest in <unk>, eight and a half years and really really pleased with the.
With the results really pleased with performance of the team and thank you for your interest and hope Youll continue to.
Partner with us with us thank you.
This concludes today's conference you may disconnect your lines at this time and we thank you for your participation.