Q3 2024 West Fraser Timber Co Ltd Earnings Call
Speaker Change: Good morning ladies and gentlemen and welcome to the West Frazier 2, 3, 2020, 4 results conference call. At this time, all lines are in listen only mode.
Speaker Change: Following the presentation, we will conduct a question and answer session. If at any time during this call, you require immediate assistance. Please press star zero for the operator. This call is being recorded on Thursday, October 24, 2024.
Speaker Change: During this conference call, West Frater's representatives will be making certain statements about West Frater's future financial and operational performance.
Speaker Change: and Business Outlook and Capital Plans.
Speaker Change: These statements may constitute forward-looking information or forward-looking statements within the meaning of Canadian and United State Security's laws. Such statements involve certain risks on certainties and assumptions which may cause West Frater's actual or future results.
Speaker Change: and performance to be materially different from those expressed or implied in these statements.
Speaker Change: Additional information about these risk factors and assumptions.
Speaker Change: is included both in the Accompanying Webcast Presentation in an R-2023 Annual MDNA and Annual Information Form, which can be accessed on the webstriars website, or through Cedar Plus for Canadian investors and Edgar for United States investors.
Speaker Change: I would now like to turn the conference over to Sean McLaren, President and Chief Executive Officer. Please go ahead.
Sean McLaren: Thank you Emily, good morning everyone and thank you for joining our third quarter 2024 earnings call
Sean McLaren: and CEO Westfrazer. Joining me today are Chris Ferostek, Senior Vice President and CFO, Matt Tobin, Senior Vice President of Sales and Marketing and other members of our leadership team.
Sean McLaren: On the earnings call this morning, I will begin with a brief overview of West Fraser's Q3, 2024 financial results, and then pass the call to Chris for additional comments before I share some thoughts on our outlook and offer concluding remarks.
Sean McLaren: West Fraser generated $62 million of adjusted EBITDA in the third quarter of 2024, representing a 4% margin.
Sean McLaren: Note that this quarter was impacted by a 32 million lumber export duty expense related to the 2022 calendar year.
Sean McLaren: Results were buried across our business again in Q3 with relative strength in our North American Engineer Wood Product segment and stronger than expected demand for SPF lumber offset by continued softness in S.Y.P. lumber demand.
Sean McLaren: In the third quarter, levels of new home construction in the US showed further sides of stabilizing, and the US central bank began to trim its benchmark interest rates, which we believe is supportive of demand for OSB and to some extent SPF lumber.
Sean McLaren: That said, mortgage rates remain relatively elevated and still appeared to be constraining existing home sales activity and the repair and remodeling segment, which we expect at the margin has a greater relative impact on SYP lumber demand.
Sean McLaren: On a trailing four-quarter basis, adjusted EBITDA was 630 million, which is an improvement from the 561 million reported at year n-2023.
Sean McLaren: We've now been able to maintain a trailing 4-quarter EBITDA, above 500 million, throughout this latest down cycle that started back in late 2022. Aided by actions we have taken, including acquisitions.
Sean McLaren: Strategic Connection Initiatives to Optimize our Mel portfolio and a relentless focus on cost and margin opportunities.
Sean McLaren: Finally, in terms of our balance sheet, we have more than 2 billion of total liquidity at quarter end, which offers us the financial flexibility and strength to support a consistent capital allocation strategy through the cycle.
Speaker Change: with that overview on now turn the call to Chris for additional detail and comments.
Chris Ferostek: Thank you, Sean, and a reminder that we report in US dollars and all my references are to US dollar amounts, unless otherwise indicated.
Chris Ferostek: The lumber segment posted an adjusted EBITDA loss of 62 million in the third quarter compared to a $51 million adjusted EBITDA loss in the second quarter.
Chris Ferostek: Note that the third quarter of 2024, included the previously mentioned $32 million export duty expense, that relates to the 2022 calendar year period.
Chris Ferostek: Excluding the impact of this prior period adjustment, lumber adjusted EBITDA would have been a loss of 30 million.
Chris Ferostek: and nearly $20 million improvement from the prior quarter.
Chris Ferostek: [inaudible]
Chris Ferostek: Our North America EWP segment generated 121 million of adjusted EBTA in the third quarter versus 388 million in the second quarter.
Chris Ferostek: The pulpit paper segment generated 2 million of a jocity baton the third quarter, below the 9 million reported in the second quarter.
Chris Ferostek: And finally, in our European business, adjusted to the cost of $1 million in the third quarter versus $6 million in the second quarter.
Chris Ferostek: Lower prices were the largest factor for this sequential EBITDA decline across our North American engineered wood products and lumber businesses.
Chris Ferostek: which was only partially offset by higher North American OSB shipments.
Chris Ferostek: As noted last quarter, our lumber business continued to benefit from the actions we took earlier in the year to curtail production at three of our higher cost mills, essentially replacing that higher cost volume with production from other lower cost mills, which is positive for our overall cost structure.
Chris Ferostek: In the US South, on a year-to-date basis, our SYP shipments are now down more than 10% from 2023, and notably our Q3 shipments are down nearly 12% versus the prior quarter.
Chris Ferostek: With regard to softwood lumber duties, as noted, we recorded a $32 million duty expense in Q3 related to the finalization of the AR5 rates.
Chris Ferostek: West Fraser's AR-5 final combined rate, which now forms the cash deposit rate is approximately 11.9%.
Chris Ferostek: This is the cash deposit rate that will be in effect until the U.S. Department of Commerce finalizes AR-6, which covers the period of January 2023 to December 31, 2023.
Chris Ferostek: If our AR6 finalized CBD rate were to remain unchanged,
Chris Ferostek: from the AR-5 finalized CBD rate. And the AR-6 finalized AD rate is the same as West Frasers estimated rate for that period of 8.84%.
Chris Ferostek: Our combined finalized rate would be approximately 15.7% and would take effect next August and be in effect through August of 2026.
Speaker Change: Cashflow from operations was 150 million in the third quarter, with our cash balance, net of debt and lease obligations at a healthy 463 million.
Speaker Change: Similar to the 469 million reported last quarter.
Speaker Change: The nominal change in our net cash balance reflects some further release of working capital this quarter, offset by 107 million of capital expenditures, and approximately 65 million of cash deployed towards star buybacks and dividends.
Speaker Change: With that brief financial overview, I will pass the call back to Sean.
Sean McLaren: Thank you Chris.
Sean McLaren: We remain steadfast in our strategy and proud of the company we have built with its geographic and product diversification that has allowed us to weather the period of challenging lumber markets we have experienced for more than a year now.
Sean McLaren: As seen in the right-hand right-side figure on slide 7, our North American EWP segment.
Sean McLaren: which has shaded brown has generated 760 million of a justity beta over the last four quarters.
Sean McLaren: A period of challenging cyclical conditions for our other segments.
Sean McLaren: It is this diversity in our wood building product offering that has allowed us to generate 630 million.
Sean McLaren: Abadjusted EBITDA on a consolid basis over the trailing four quarters. Sean and the Figure Out left, which is more than two and a half times a level of Proforma EBITDA experienced in the down cycle of 2019.
Sean McLaren: I'll now shift to our outlook and add some concluding remarks.
Sean McLaren: We remain encouraged that the Fed's rate hiking cycle is seemingly in the rearview mirror, and that rate cuts are now the general market expectation over the near-term.
Sean McLaren: which should be support of a demand for wood-building products in the housing and for parent-remodeling markets we serve.
Sean McLaren: Further, West Fraser's overall inflation risks are relatively benign, with costs having stabilized across much of our supply chain. As such, and based on what we can see today, we are confident that we are unlikely to experience meaningful upward cost pressures over the near term.
Sean McLaren: for our lumber operations in the U.S. south. We continue to make progress, refining, and optimizing our operations by removing costs and looking for additional margin opportunities.
Sean McLaren: Although market conditions for SYP remain challenging today, the industry supplied demand balance appears to be stabilizing which is supportive for the industry over the medium term.
Sean McLaren: As a reminder between permanent shift reductions, mill closures and indefinite contaminants, we have reduced available capacity by more than 800 million for feet since 2022.
Sean McLaren: which includes the latest announcement to indefinitely curtail 110 million board feed at our lumber mill in Lake Butler, Florida.
Sean McLaren: We've also reduced the number of shifts or hours of operations at various lumber mills across our platform.
Sean McLaren: In conjunction with these capacity adjustments and to manage costs, we have transitioned some production to our lower cost, more productive mills, where we've been spurred we've been spending our modernization capital.
Sean McLaren: SPF products realize better demand than we originally expected in Q3 as new housing markets purer to have demonstrated more resilience than repair and remodeling markets in which we tend to see a greater demand pull for our SYP products.
Sean McLaren: In our North American EWP business, we continue to ramp production at our Allen Dale OSB mill, where we are pleased with the cost progression of that facility. We still expect the mill to be among our lowest cost OSB facilities when it achieves its full operating rate.
Sean McLaren: Given this backdrop, we now expect SPF shipments to slightly exceed the top end of our previous 2024 guidance range of 2.6 to 2.8 billion Bore feet.
Sean McLaren: While we reiterate, our previously reduced 2024 guidance for S.Y. P. shipments in the range of 2.5 to 2.7 billion board feet.
Sean McLaren: We also now expect 2024 North American OSB shipments to be closer to the top end of the guidance range of 6.3 to 6.6 billion square feet on a 3-8 basis.
Sean McLaren: Lastly, as we near your end, we are narrowing the guidance range for our 2024 capital expenditures to 475,525,000,000, versus our previous guidance range, a 450,250,000.
Sean McLaren: Before I shift to my concluding remarks, I wanted to briefly reflect upon the attractive returns generated for our shareholders.
Sean McLaren: As you can see in the figure at the bottom of slide nine, our shareholders have been rewarded for their patients.
Sean McLaren: as we have executed our plans to grow the business both organically and organically.
Sean McLaren: We have optimized our portfolio through disposition, dispositions and or closures of highly variable or underperforming acid, such as pulp, that's the pulp mill debesments. We recently completed and we have returned surplus capital through dividends and buybacks.
Sean McLaren: and you should expect us to look to do more of the same on our journey towards creating value for our shareholders.
Sean McLaren: In conclusion, the downward trend in interest rates looks to be favorable over the near-term, which should be supported for industry demand. We are taking actions that we expect will make us even stronger when the industry begins its recovery from the current downturn.
Sean McLaren: We will continue to focus on costs and margins in order to build a more resilient business through the cycle while maintaining the type of financial strength that gives us the flexibility to be able to take advantage of opportunities if and as they arise.
Sean McLaren: We remain optimistic about the longer-term demand prospects for West Fraser and look forward to continuing to build one of the world's leading wood-building products companies.
Sean McLaren: With that, we'll turn the call back to the operator for questions.
Speaker Change: Thank you ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press the star, followed by the one on your touchstone phone.
Speaker Change: You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process? Please press star, follow by the two.
Speaker Change: If you are using a speakerphone, please lift the hand-set before pressing any keys. One moment please for your first question. And the first question comes from Kitan Montora from BMO Capital Market. Please go ahead.
Kitan Montora: Good morning, on thank you for taking my question.
Kitan Montora: and...
Kitan Montora: Sean, perhaps we'll start with a kind of gift from a digital color on how these are in our demand.
Kitan Montora: is trending as we think about lumber. Did the CNS signs of stabilization as the quarter progressed? Is it more the same and looking for interest rates to drop before things actually start to stabilize?
Sean McLaren: Good morning, Keaton.
Sean McLaren: I'll make a couple of comments here and then maybe ask Matt to fill in what I missed. I would say, from our perspective, you know, as the quarter progressed, you know, we have seen a little better demand on the Southern Yellow Pine side saying that I think largely the recent price improvement has been related to supply, side adjustments that we and others have have taken. Our treated businesses are treated customers are best proxy for that, but with that, maybe it asks Matt to add in anything you'd like to.
Speaker Change: I think I agree on the supply adjustments that have...
Speaker Change: Creative Positive, Pressing Environment for us.
Speaker Change: and we believe that multiple factors that influence that pricing and our own part of man is one of them and our long-term view of our NARS unchanged historically. It's a GDP like Rower. We expect that to be the case over the medium to longer term.
Speaker Change: and this should just maybe one more on this, you know, you talked about the...
Speaker Change: SYP supply demand starting to get in a better shape, yes, STF, you've taken up your volume target.
Speaker Change: and each of the high levels parks on why we've not seen a bigger price response in the SPF, given that new residential is holding up a better relative to our
Speaker Change: Yeah, I mean there's a lot of moving parts key to what customers do and the products they choose to buy or not to buy. I would say to look beyond the benchmark pricing, you can see there was quite a spread early on in the quarter between SPF and SYP. You know, that's corrected but if you go to the wider widths 2x6 2x8, those spreads continue to be quite dramatic, better for SPF. You know, so I think, you know, combined with more kerchellments on the SPF side, you know, this plied-to-man balance is in a little different spot there than SYP. And, you know, that's why there's more volume.
Speaker Change: and coming from us in SPF.
Speaker Change: and just one last question from me. Chris, as you think about Kappak for next year, without getting a specific project, how would you have a think about it at this point? Would it be similar to 24 lower higher just at a high level? Thank you.
Chris Ferostek: Yeah, and we'll have some guidance out kind of at when we're released here and around kind of where we think the capex range is going to be next year I'd say if you think about the last couple years, you know, we've had quite a bit of
Chris Ferostek: quite a bit of projects underway and we're quite happy to be bringing those projects to completion here. Just as we may be, we're reaching an inflection point on the demand side and feel that will really prepare us well for the backside of this cycle, winter to improve.
Chris Ferostek: I'd say, you know, a few things Henderson will be wrapping up. That's been a big project, been a big part of our cap-backs here over the last couple years.
Chris Ferostek: I don't think we're quite ready to start something as big as Henderson again, you know, in the near term.
Chris Ferostek: Here we do have more opportunities, but it's a, you know, we're still considering those things.
Chris Ferostek: I think where we've been the last couple years is a good place to start.
Chris Ferostek: But bias is probably a little bit to the downside on that number going forward just because we were bringing so much stuff to completion here over the next couple quarters, which we're actually really excited about about wrapping up some of these projects that we think will serve us well going forward.
Speaker Change: and that's a helpful I appreciate it. Good luck. Thank you.
Speaker Change: and your next question comes from Sean Stewart from TD Cohen. Please go ahead.
Sean Stewart: Thanks for morning everyone. A couple questions. I want to first touch on capacity closures in the south.
Speaker Change: and you attributed some of the recent price momentum for Southern Yellow Pine Lumber to the capacity shut announcements.
Speaker Change: It's a lot's been announced. It feels like a lot of that won't actually start to hit the market until towards the end of this year and then to really 20, 25. So wondering if you can get some context on how much of the initial price response is actual market's getting tighter or...
Speaker Change: and the second one is the second one.
Speaker Change: These supply reductions actually hitting the market.
Speaker Change: Yeah, sure, Sean, good morning.
Speaker Change: I guess it's hard for me to speak for a cross-hole industry but I will speak for us. You know, we took action early in the year.
Speaker Change: and as things really kind of deteriorated even further through Q2, we took further action.
Speaker Change: and I would say that the...
Speaker Change: The impact of that action was fairly quick. You know, the inventories are relatively small and a southern mill compared to what you'd see in an order in mill or areas where bigger log and process inventories. So our customer demand patterns I'm just speaking for West Fraser, you know, probably are a little better but not materially different.
Speaker Change: but so the improvement we've seen in our business has really been related to the actions we've taken on the supply side.
Speaker Change: I think Sean, when you're unwinding all the inventory at a mill in the north and the supply chain, the length of it and the logging season and so forth, it's probably a matter of months to see the impact as you unwinding everything.
Speaker Change: in the South when we think about our recent experience around the facilities that we've closed in the South. It's a matter of days or weeks until the inventory is exhausted.
Speaker Change: Got it's a Lake Butler where's sold all the inventory off at this point.
Sean Stewart: Correct, yeah, very quickly.
Sean Stewart: Kevin.
Speaker Change: Thank you for that. Second question on software lumber trade file. We've seen a competitor borrow against receivables on the duty file. You guys don't need the money, but wondering if you can comment on
Speaker Change: Those types of opportunities and any updated thoughts on a path forward here, do we just need to wait for elections to play out before we get any potential momentum towards this? Any updated thoughts on the trade file?
Speaker Change: Maybe I'll take the liquidity side of it and Sean can deal with kind of path forward on it. Sean, I would say when we think about where we are from a liquidity standpoint, I would agree. We don't need to kind of raise the money through.
Speaker Change: some sort of duty transaction. You know, we repaid our notes a couple weeks ago.
Speaker Change: Our gross debt is down to $200 million. We just got it up great this week from moody's upgraded another notch. So, you know, feel very good about the investment grade rating that we have.
Speaker Change: are ability to access capital markets if there was something out there compelling for us to do. So I think...
Speaker Change: you know for us, you know
Speaker Change: are primary sources of financing would be their traditional sources of financing that we would tap into.
Speaker Change: I think you know on liquidity front I think we're very well covered off from that standpoint and Sean maybe you want to comment on path forward here. Yeah sure maybe a couple of comments on path forward and you know again from my perspective our perspective really not a lot new to report.
Sean: you know, as everybody on this call, and those Westfrages has always been a support of some type of managed trade. Saying that there's a lot of moving parts in the political arena and this is a deal between two governments. So, really tough to see how something happens in the short term, but I guess you never know. I would say in Westfrazer, our focus is on controlling what we can, which is our costs and why that plays into any rate, that we're going to be exposed to and the pieces that we can control and continuing to litigate to get a refund of money that is owed to us.
Speaker Change: and just thanks for that detail. That's all I have for now. Thanks guys.
Sean Stewart: Thanks Sean
Speaker Change: And the next question comes from Ben Isaacson, from Scotchabank. Please go ahead.
Ben Isaacson: Thank you very much and good morning everyone. First question, Sean, can you talk about your order book for SYP SPF and OSB? What should it be at this time of the year and is it evolving from where it's been over the summer?
Sean: Good morning Ben. I'll just make a quick comment then maybe Matt can add, but our, you know, in lumber, you know, our order book currently is normal and it typically doesn't materially change seasonally. You know, it generally is not that long and it's a cash market and it moves, moves around a little bit but not a great extent and nothing unusual that I would say today Matt anything to add to that. I don't know how to get covered up.
Speaker Change: Thank you for that. Moving on to...
Ben Isaacson: to the supply per tellments that we've seen in the industry. So I understand we've seen about roughly 5 billion board feet and most of that looks like it's going to be structural. Do you think that the supply site has now done enough and we really are just waiting for demand to normalize?
Ben Isaacson: Or do you think that there's so more perkellments needed to get down to a steady state of demand?
Speaker Change: You know, again, a really tough to have, you know, because it really depends on what future demand is going to be. I can only speak to the actions we've taken and just as, you know, I know I said it in my comments, but but 800 million boardfeets since 2022 that we have taken action on. And what that has done, frankly, has brought us to a point where we're essentially in balance with what our customers are currently buying. And they're demand. If that changes, we'll change. You know, so that would be the way I would, but I think we feel like we, the moves we made were well positioned to build from here as demand gets better.
Speaker Change: Fair enough. And then just very last question for me on the OSB side. You mentioned in the press release that curtailments at the mills have created chip shortages for pulp producers, which has increased demand tension for pulp logs, and that's impacting OSB margins. Can you talk about where we are on that kind of path? Are pulp logs still going to go higher in your view over the next couple of years, or is that starting to stabilize? And when OSB prices kind of get back to their normal run rate, we should get back to normal margins.
Speaker Change: Yeah, Ben, I'd say it's very localized depending on the drain, depending on where the pulp mill is located. Very short term, our view would be that longer term, you know, our OSB business and pulpwood is well positioned. You know, there will be more production over the long term, shifting to Southern Yellow Pine, which will create more chips.
Speaker Change: which will, and in combination with the number of pulp mill closures that have happened in the U.S. South this year, we believe will mean there'll be, you know, a favorable trend to wood cost long term versus any short term spikes we might see.
Ben Isaacson: Got it. Thank you very much.
Speaker Change: And your next question comes from Amir Patel from CIBC, please go ahead.
Amir Patel: Good morning.
Amir Patel: Sean, when you think of the closures announced in the South over the past 12 months, it looks like they totaled maybe over 1.5 billion board feet. How much of that do you think is actually being dismantled versus just sort of being in a cold idle state that perhaps would come back in a stronger market?
Sean McLaren: Good morning, Amir. Again, hard for me to comment on what everybody else is doing. I'll just comment on West Fraser. We've had four southern mills, two have been permanent, two have been indefinite. I'd say it's sort of a nuance in my view. All that means, the difference in West Fraser means, is we don't immediately begin taking down the mill. A good proxy for us is, I'm looking back a few years now, but you go back to 2008, we announced Folkestone, Citronelle, McDavid.
Sean McLaren: Folkston and Citronelle were dismantled after about a year or so. They were permanent closures. McDavid we left as indefinite.
Sean McLaren: But it was five years before that mill restarted. These are not short-term month-to-month quarter-to-quarter decisions there needs to be You know the adequate wood supply adequate lumber market and a reinvestment plan that makes that mill competitive at the bottom of the market There's a reason the mill shuts down because it's not competitive We would not restart a mill till we had a plan to make it competitive and that is a And that is an uncertain time There's a lot of factors that go into that before we make that decision In terms of what others are doing hard for me to comment on that
Speaker Change: Okay, fair enough, that's helpful. And Sean, I just want to ask on the European panels business, looks like it's kind of basically gone to zero over the past...
Speaker Change: year. I know historically that used to be kind of the steadiest part of the old Norbert business. What do you think it's going to take to restore profitability in Europe?
Sean McLaren: Our MDF facility in Scotland, that was planned for some time, that impacted results. You know, on the OSB side, I would say we've seen a little bit of price improvement, but we've seen more volume improvement. So, I think it's going to take just general economic, you know, kind of improvement in Europe for things to get back to maybe normal or where they were previously. We feel quite good about our position. You know, our investments, you know, as we've got to know the European business at West Fraser, the investments Norboard made and we continued on, really have put those plants in a good place in a tough market.
Sean Stewart: Great. Thanks, Sean. That's all I had. I'll turn it over.
Speaker Change: Once again, if you have any questions, please press star followed by the 1. And your next question comes from Matthew McKellar from RBC Capital Markets. Please go ahead.
Matthew Mckellar: Hi, good morning. Thanks for taking my questions. I'd like to start by asking about your conversations with customers in the lumber business, and specifically, if you're hearing a greater desire from the big box home centres to secure larger volumes of lumber under contract for 2025.
Speaker Change: I think that our customer demand, we fill our customer demand relative to what we're looking for. We're going through what I would say is season right now is 2025 planning, but those volumes can adjust as the markets adjust and shift over time. So I think from a customer standpoint.
Speaker Change: They see the shortage of homes long term, the strong fundamentals that we see, but still uncertainty around affordability, but certainly doing that planning with our customers to ensure they're supplied over 2025.
Speaker Change: Okay, thank you. Maybe next, on lumber operations in the U.S. South, you mentioned looking for some additional cost savings and margin opportunities. Can you just provide a bit more color around what kind of opportunities and projects you're pursuing in the South right now?
Speaker Change: Yeah, good morning, Matthew.
Speaker Change: You know, I think really a lot of the stuff will be a continuation of what we've talked about previously. You know, we've taken out a lot of high-cost volume with the four mils we've curtailed, and as we've brought on volume, it's going to modernize plants.
Speaker Change: Dudley
Speaker Change: Henderson will be coming on mid-next year. Other projects that we've completed that are all related to, you know, a margin improvement. So it's better recovery, better grade, better productivity, better working conditions that improve our turnover. A number of things that we've done and those we've got a whole series of smaller and larger projects that have been in motion for some time. We've been at this for a while and it'll be a continuation of that which we expect will continue to make our southern business more competitive.
Speaker Change: Great, thanks very much. And then last one for me, just a quick cleanup on Caribou. Looks like you're expecting me down for four weeks in the quarter versus maybe two weeks previously.
Speaker Change: Can you talk about what drove the change there?
Speaker Change: Absolutely, Matthew. So Caribou, it's been 18 months, I think, since our last major, so we had a lot of work lined up for our major shutdown. We expected it to be a full two weeks. We had an additional two projects that we wanted to complete.
Speaker Change: as well as our fibre supply situation with all the sawmill curtailments here in British Columbia. We need to be able to make sure we've got adequate fibre supply to get through the coldest months. So that additional two weeks, finish those two additional projects.
Matthew: Great. Thanks for that. That's all for me. I'll turn it back.
Speaker Change: Thank you.
Speaker Change: At this time, we have no other questions. Please proceed.
Speaker Change: Thanks Emily. As always, Chris and I are available to respond to further questions, as is Robert Winslow, our Director of Investor Relations and Corporate Development. Thank you for your participation today. Stay well and we look forward to reporting on our progress next quarter.
Speaker Change: Thank you.
Speaker Change: Ladies and gentlemen, this concludes the conference. You may now disconnect your lines.
Speaker Change: and Jim Cummings. Thank you.
Speaker Change: Thanks for watching!
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Speaker Change: Thanks for watching!
Speaker Change: Sean McLaren, Christopher Virostek, Sean McLaren, Christopher Virostek, Sean McLaren, [inaudible]
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