Q3 2024 FTAI Aviation Ltd Earnings Call
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Speaker Change: Good day and thank you for standing by. Welcome to the Q3 2024 FTAI Aviation Erning Conference call. At this time, all participants are in listen only mode.
Speaker Change: After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1-1 on your telephone. You will then hear an automated message advising your hand as raised.
Speaker Change: to withdraw your question. Please press star one one again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today. Alan Andreini, Investor Relations, please go ahead.
Alan Andreini: Thank you, Liz. I would like to welcome you all to the SIAV Asian Third Quarter, 2024, Ernie Skull. Joining me here today are Joe Adams, or Chief Executive Officer, Angela Nom, Archie Financial Officer, and David Moreno, Archie Popriting Officer.
Alan Andreini: We have posted an investor presentation in our press release on our website, which we encourage you to download if you have not already done so. Also, please note that this call is open to the public and listen only mode and is being webcast.
Alan Andreini: In addition, we will be discussing some non-gaps and actual measures during the call today, including either the reconciliation of those measures to the most directly comparable gap measures can be found in the earnings supplement.
Alan Andreini: Before I turn the call over to Joe, I would like to point out that certain statements may today will be forward looking statements, including regarding future earnings.
Alan Andreini: He's statements by their nature are uncertain and make different material, for Maxwell results.
Alan Andreini: We encourage you to review the disclaimers in our press release and investor presentation regarding non-gab financial measures and forward-looking statements and to review the risk factors contained in our quarterly report filed with the SEC. Now I would like to turn the call over to Joe.
Joe Adams: Thank you Alan.
Joe Adams: To start today I'm pleased to announce our 38th dividend as a public company and our 53rd consecutive dividend since conception.
Joe Adams: The dividend of 30 cents per share will be paid on November 25th based on a shareholder record date of November 14th.
Joe Adams: Now let's start with the numbers.
Joe Adams: The He-Metric for us is adjusted EBITDAV.
Joe Adams: We continued our strong performance with the Jesse D.A. of 230 million in Q3 2024.
Joe Adams: which is up 8% compared to 213.9 million in Q2 of this year and up 50% compared to 154.2 million in Q3 of 2023.
Joe Adams: During the third quarter, the 232 point.
Joe Adams: Not many in EBITDA number was comprised of 136.4 million from our leasing segment, 101.8 million from our aerospace products segment, and negative 6.2 million from corporate and other.
Joe Adams: Turning now to leasing, leasing at another great quarter, posting approximately 136 million of EBITDA.
Joe Adams: The pure leasing component of that number came in at 122 million for Q3 versus 112 million in Q2 of 2024 and 102 million in Q3 2023.
Joe Adams: Additionally, we sold $20.7 million book value of assets for a gain of $14.3 million and have more sales coming in the final quarter of this year.
Joe Adams: Continuing high demand for assets, we remain confident in generating 500 million in leasing EBITDA in 2024, including 50 million in gains on asset sales.
Joe Adams: Aerospace products had yet another excellent quarter with 101.8mm EBITDA, and an overall EBITDA margin of 34%.
Joe Adams: which is up 12% compared to 91.2 million in Q2 of this year and up 135% compared to 43.3 million in Q3 2023.
Joe Adams: We're seeing tremendous growth in adoption and usage of our aerospace products.
Joe Adams: and our increasing our 2024 estimated EBITDA to 360 to 375 million up from our previous estimate of 325 to 350 million.
Joe Adams: Overall, we now expect annual aviation EBITDAF for 2024 to be between 860 to 875 million, not including corporate and other, up from 825 to 850 million that we got into last quarter.
Speaker Change: with that let me turn the call back over Alan.
Alan Andreini: Thank you, Joseph. Let's give me now open the call to Q&A.
Alan Andreini: Thank you.
Speaker Change: At this time we will conduct the question and answer session as reminders to ask a question you will need to press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Please stand by where we compile the Q&A roster.
Speaker Change: [inaudible]
Speaker Change: Our first question comes from Sheila Kaioga, which you have for you. You are lying now open.
Sheila Kaioga: Hi, I came. Thank you and congrats on a great quarter. Maybe if we could just level set the playing field here, we often hear from investors that idea that.
Sheila Kaioga: F.H. has only capitalizing on a short-term bottlenecks in the aftermarket.
Sheila Kaioga: Take the slower growth we've seen reported from some of the larger OEMs on their shop, because that's as an example of this quarter or their aftermarket.
Sheila Kaioga: When we get to a more normalized world and hopefully a few years time, what does attempt business model look like and what's your vision? And how do you think about the duration of the CFM-56 platform, Joe?
Joe Adams: Sure, it's great to, you know, we think about that all the time. Also, we are happy that we're in an environment that's so supportive of our business model.
Joe Adams: and we think it really enhances or it increases the rate in which we can convert customers to adopting any way of doing things.
Joe Adams: and so as we have worked with many airlines and we're increasing every quarter of the number of new customers we have seen no evidence that one's people use.
Joe Adams: are products or change the way they think about engine maintenance, which is letting us do it instead of them doing it. We've seen no evidence of anybody wanting to go back to the old way of doing it once the situation normalizes.
Joe Adams: and the reason is we're providing a tangible cost savings and time savings benefit to the customers and it's not like they would, you know, three years and now wake up and say let's go back to the old way of spending more money on engine maintenance.
Joe Adams: So we don't see any evidence that people will revert.
Joe Adams: and so this quarter will have...
Joe Adams: the highest number of new customers that
Joe Adams: will convert to using our products and David will talk more about that. We see the universe expanding as word amounts spread than more customers sell other people. You know, hey, this is great. You should try it.
Joe Adams: But more often now today the question we get is not.
Joe Adams: He's not the original question we got was a good product and can I say, money, if I go with you, how can I be sure that you'll be able to supply the engines I need? And that's where we hear more now from the customer, which is great.
Joe Adams: It's a great development, I get it, I buy that you have a great product now, can you make sure that I will always have engines available?
Joe Adams: and so to that end, the acquisition we made of the Montreal facility which we now call F.T. Canada really plays nicely into that because if you look back at 2023 for example.
Joe Adams: We were producing about 30 modules per quarter during that period.
Joe Adams: We increased that in the first half of 2024 to about 50 nodules per quarter.
Joe Adams: and we took ownership in the third quarter. We've now increased that production rate to about 75 modules per quarter. And we expect in 2025 that we will be up to about 100 modules per quarter at that facility.
Joe Adams: and we're well on our way to doing that. So we obviously invite customers to go visit, come see what we do.
Joe Adams: changed a lot of the things that typical I'm already doing, we've made it much more of a manufacturing production line, we've specialized employees.
Joe Adams: We've ordered a lot of parts, so we don't, you know, not at the risk of any supply chain disruptions. So we can take people through the facility and say, this is where your engines are going to come from.
Joe Adams: and we've got a lot of them and we have a lot of activity. And so that's a point of resistance we love to be able to try to sell through, because you've got people almost on the finish line.
Joe Adams: We believe very strongly that the conversion makes sense for people. We believe that it's a very sticky one. Should you get people converted? And then the only question left is how long do you think people will fly C&M 56 engines?
Joe Adams: and we've obviously made a bet that we think it's a long time but you know, and if I can have, you know, view on that but we think the best easiest of the points to get comfortable with.
Speaker Change: I have a lot more questions, but I'll just stick to one more if it's okay, Joe. You mentioned you onboarded, I think, the most customers you've ever onboarded this quarter and they're continuing to want more. So how do you think about how that discussion goes when they do convert or how many customers did you have join? And when they do first start with you, what are the number of models they start with and how do you see them ramping?
Speaker Change: and she learned this is David, I'll take that question.
Speaker Change: So this quarter was our record quarter for new customers. We onboard it, 90 new customers. Typically a new customer places in order between one to two modules.
Speaker Change: and as you can imagine, the first sale is usually the top of the sale with a new customer because once you kind of go through the process, the understand at the time saving cost savings and as Joe mentioned, it's a very sticky product.
Speaker Change: At the same time we've also started to see strong repeat customers come in and request about 5-10 modules at a time. That's typically what a repeat customer will do.
Speaker Change: and what actually happens in practice is they open up and they provide a full schedule of shop visits for the next five years. Our product, the man on that product is a venture event, meaning we want to know the shop visits, we want to match the modules with the shop visits.
Speaker Change: and once they convert to a repeat customer, we kind of have those discussions of understanding the fleet, the fleet plans and how to maximize their cost-saving timing.
Speaker Change: and additional thing that we've done also is we're getting a lot of demand for field service. So what we've been doing in the past is we've been distributing modules on field with a lot of third-party field service team.
Speaker Change: We're getting customers who want us to do everything. The full-light love service, so at QuickTurn, which is now at the USA, we built a field service team that now is being deployed worldwide to actually do the installation and to offer the complete service.
Speaker Change: We're very excited about offering that service and we think that's going to improve the overall experience even further and try for the repeat business.
Speaker Change: Thank you so much.
Speaker Change: Thanks.
Speaker Change: and then our next question.
Speaker Change: comes from Jason Holcomb with Morgan Stanley. Jason, your line is now open.
Jason Holcomb: Good morning, Joe.
Jason Holcomb: Joe on the V2500 in the past, he mentioned you had inducted around 40 engines this year. Can you provide enough data on how that is progressing? Are any engines beginning to come out of the shop yet?
Jason Holcomb: and then maybe if you could touch on the customer demand you've been seeing for the V-2500, you've called out Latin Airlines in the past, but are there any other large customer agreements we should be thinking about? Thank you.
Jason Holcomb: Thanks.
Jason Holcomb: Thank you, Jason. I can take this. This is David.
Jason Holcomb: So on the MRE, we're very excited with the progress so far on the V-2500. On the production side, as we mentioned, the engines are in the shop, we're experiencing turnaround times that are on target, so 90 to 120 days.
Jason Holcomb: and those engines now have provided a strong pipeline that are 100% committed to customers. So those engines are coming out of shop. The little Dan program has now officially started, so we've started exchanging engines today.
Jason Holcomb: Additionally, we've secured two large North American airlines on MRE4, about 20 plus engines in the next few years. So that's we're very excited about that and further growing that business.
Jason Holcomb: Those should be strong contributors starting next quarter, or Q4, 2024, and more even in 2025.
Jason Holcomb: I think we're seeing tremendous opportunity worldwide in many different regions. So we're hoping to expand into Asia sometime very soon on a new deal as well.
Speaker Change: Thank you very much for the color David. I'm going to be asking a quick follow-up. Are you guys able to tissue it with those kind of number of CFM-56 models you've sold during the quarter and you're sort of provided an update on that side?
Speaker Change: Thank you. We've stopped, you know, private and all of detail. We think it's, you know, commercially not, you know, a great idea. So we think we give enough information without that.
Speaker Change: Thank you.
Speaker Change: Welcome to Jeff's full of Ends with the Benchney Company.
Speaker Change: Thank you, Morning.
Speaker Change: With Chrome alloy announcing it's now received FAA approval for a V2500 blade recently. What do you think the implications for the industry and then threat are going to be?
Speaker Change: Well, I would take it as a positive. It's going to be thinking about the most complex part of the entire engine. It's the high pressure turbine blades.
Speaker Change: and the fact that that got approved and is evidence that the FAA is confident, they have a extremely rigorous process.
Speaker Change: as we all know and it's been a great, has a great track record and success to the US and the world wide.
Speaker Change: and getting out of proof is a great sign for future parts including the CFM-56 parts of the world working on.
Speaker Change: I take it as a great step and the process is working and as it did before COVID and it's working now post COVID.
Speaker Change: and do you think less or less will be willing to use the product?
Speaker Change: Well, we're a lot slower. I can't speak for everyone else, but I think it's, you know, when we use data when we make decisions and our data, you know,
Speaker Change: We have evidence that many of the parts are performed extremely well and they cost less. So we kind of just think about that when we make decisions about what we do.
Speaker Change: Good, thanks for the time.
Speaker Change: Thanks.
Speaker Change: [inaudible]
Speaker Change: [inaudible]
Speaker Change: Thank you.
Speaker Change: [inaudible]
Speaker Change: [inaudible]
It seems the operator lost connection, so we're waiting.
Speaker Change: Thank you very much.
Speaker Change: Liz
Lizzie there.
Speaker Change: Yeah.
Speaker Change: Can you continue Q&A please? Yes. Can you hear me?
Speaker Change: Yes, yes.
Speaker Change: Thank you.
Speaker Change: Thank you.
Speaker Change: It's Hilary from Deutsche Bank ready to ask a question?
Oh yes, sorry I couldn't hear you. Okay, yes, thanks for taking the time.
Oh, okay. Thanks for taking my questions and congrats on a great quarter. So, Joe, in the aerospace segment, the EBITDA margin was 34% versus 37% last quarter, so I was wondering if you could just provide a little more details around that.
Yes, this is the first quarter that we incorporated FTI Canada in the numbers.
and there's some legacy contracts for third parties that we inherited when we acquired the company.
and that had a negative effect because they're low or no margin contracts that are running off and so if you adjust for that that would have normalized the margin at two to three hundred basis points higher than the number we reported
Speaker Change: and those contracts have a very short life, so we expect there will be some impact in Q4 and then we'll be finished with that.
by the end of the year. So it was just an impact from the acquisition that we had to assume those obligations, but they're running off.
Oh, that's great. So then I guess as a follow up, when those contracts will log at the end of the year, will you be expanding your capacity?
you know, when those roll off. And then when you said earlier that you could do, you know, 100 modules per quarter in 2025, are you including, you know, potential additional capacity available when those contracts roll off, or would that be additional 100 modules that you referred to earlier? Yes.
CFM 56 oriented jobs. So we're able to increase the productivity that I mentioned, the 30 to 50 to 75 to 100 with essentially the same workforce.
Speaker Change: So you're tripling, you know, more or less tripling, you know, our...
you know, the productivity with...
with a very similar head count, so it's.
As I mentioned earlier, I mean, it was a massively underutilized facility from our point of view, and we're able to take, you know, the highest return, you know, anywhere in the company that we could get, is focusing on increasing the productivity there, which we're doing, and it's well underway, even though we're only, you know, a month into it.
Speaker Change: got it so you are assuming so within that hundred modules number you are assuming that you'll be using the employees that were working on those contracts and repurposing them to your module
who worked on the module. Okay, great. Thank you so much. Thanks.
Speaker Change: Thank you.
Speaker Change: Thank you and everyone I do apologize for the interruption earlier and we will proceed with our Q&A and we'll take our next question from Giuliano Bologna from Compass Point. Your line is open.
But yeah, congratulations on another incredible quarter out performance.
Something I was curious about was, you've obviously done an incredible job on the product segment, continuing to scale and grow the platform. I'm curious where you see a lot of the growth coming from at this point, and if there's been any kind of distribution between new customer growth or volume growth and how those trends have continued to evolve.
Speaker Change: Yeah, the, uh, I mean, it is...
you know, more organic growth. As we've said, we've
We're focusing on the two.
our focus is organic growth and it's as I mentioned as an example with you know using the facility FTI Canada we're able to triple the productivity with the same number of people.
So the organic growth opportunity for us is right in front of us, and it's extraordinary. And so we're not really focusing on anything other than that.
That's very helpful. I appreciate it. I'll jump back in with you.
Speaker Change: Thanks.
Speaker Change: Thank you. Our next question will come from Ken Herbert from RBC Capital Markets. Your line is open.
Yeah, hi, good morning, everybody.
Maybe, Joe, just to start off, or David, you've...
Obviously, you called out, you know, you're not seeing any supply chain issues in terms of executing some of the business today on the parts side. It seems to be a major issue for the industry. Can you talk a little bit about how you've effectively managed to de-risk, it sounds like, your CFM56 and now V25 availability to parts and the extended lead times there that a lot of other, you know, MRO shops continue to talk about?
Speaker Change: Yes, and you probably noticed our, you know, working capital number increased from, you know, by roughly about 120 million from Q2 to Q3.
and there's two reasons for that. One is we picked up about 50 million of inventory with the FDI Canada acquisition.
The best way to avoid supply chain disruptions is to pre-order and have a lot of inventory.
and how can I be sure of that? And so we're buying more parts as an insurance policy, effectively. And we think it's low-cost insurance and high payoffs.
So that's part of the thought process, and I think we're well prepared, you know, going into 2025 to be able to really, you know, execute, you know, as best we can.
Okay, that's very helpful. And then on just the, you know, since the LATAM deal, which I think obviously was was playing out very well for you, what's the pipeline look like of other potential opportunities of that size, or should we be thinking maybe smaller opportunities, or are there still some perhaps chunkier opportunities out there as we think about exiting this year in 2025?
Hey Ken, this is David. I'll take that question. So we're seeing many similar opportunities of that size, let's say 20 to 30 airplanes.
Again, the real thesis around is not that the airline wants to raise capital to resell leaseback, it's that they don't want to do maintenance.
Right, so that's really the thesis, and so we're actively working those programs, and we expect to have some advancement probably this quarter, Q4 of this year.
Speaker Change: Great. Thanks, David.
Speaker Change: Thank you.
Our next question will come from Brandon Oglenski from Barclays. Your line is open.
Hey, good morning everyone and thanks for taking the question and congrats on a good quarter
Joe, I think, you know, you mentioned pipeline or backlog in the, you know, release last night. So can you maybe give us some idea of how much contractual business you are attracting in the products segment? And then maybe longer term as well, how sustainable, you know, is your margin profile in the business? Because if we just simply look at other MRO providers, obviously a totally different profit profile.
Hey Brandon, this is David. I can take that question.
David Moreno: So as far as
The way that we think about that is that's heavily correlated with the repeat customers. Today, on average, about 66% of our volume is on repeat customers.
David Moreno: And the more that you engage customers, by nature, you're going to have a higher volume, so we expect that to continue to grow. And as I mentioned earlier, what we're working with is airline scheduling, so we're working on trying to understand when events are coming in.
which gives us extreme visibility into future quarters and future years as far as engines and module matches. So we feel very good about, as the business grows, we're going to get more and more visibility long term on backlog.
The second question as far as margin, right?
Rolling in new repairs, we're thinking about creative ways to use assets to drive further value. So our entire business is focused on driving costs down. And that's why we feel very good about our margin expansion.
David Moreno: But when you think about the difference between our business and an MRO business...
That's you know a very different business and what we've done is said we don't want to do any any third-party business We only want to work on our own engines
We want to streamline that. We want to have the single work scope. We want to be able to run it like a manufacturing operation.
So, it's a different construct.
And as I've said many times, the key difference is that it's our engine. We own it. We build it.
Adeline comes in and our pitch is like, do you want it or not? Don't tell me what work scope you want to do or how you want to rearrange it. It's there, it's available, they're very fungible, so it's your call.
appreciate the response both of you and then
I guess on the capital side, maybe this is one for Angela, but where do you see, you know, funding needs for the business now that you guys did some transactions here in the third quarter? And, you know, I think you have some offshore assets as well in the leasing business. Can you maybe give an outlook for them?
So on the offshore, we're very close on the sale of both those vessels, which...
Speaker Change: Thank you.
It's not 100% done, so I don't want to jinx it, but I would be very surprised if it didn't close in the fourth quarter. And, you know, it's on target with, you know, previous guidance we've given about the amount of the dollar amount. So we expect that to be concluded this year.
And then on other capital needs, Angela can address that.
Redemptions that are coming up is on our Series B preferred, which we set to our folding rate on December 15th. So that's something that we'll be looking to redeem similarly as we did for our Series A this quarter.
So besides that, and continuing to finish our plan on the V2500 engine purchases through the end of the year, we don't have any other big purchases that we need capital for yet.
And our next maturity is until 2028. That's right.
Speaker Change: Thank you. Thanks.
Thank you. Our next question will come from Miles Walton from Wolf Research. Your line is open.
Hey, good morning. I've got Lou on for miles.
Volume one.
Joe, can you give us an idea of the average green time on the engines you've been buying and if it's the same as the last couple of years? Is there also any difference between the CFM56 and the D2500?
David Lasset: David Lasset, and sure.
So the way that we invest in engines is we're looking at value on cost per cycle basis So I say the composition of engines that we acquired today are a little different than they were two years ago Right now we're focused on acquiring assets that need shop visits So assets that are completely run out that we can add value and then we can offer them You know for exchange or for lease
we've heard this event you can offer them or our programs so that's really the focus at the moment
All right, great. Thank you. And maybe just to follow up on that and earlier question on the V2500, you mentioned sort of the MRE and everything going on there. I'm just curious, are you guys doing the work there sort of through the MRE, sort of the original MRE, or is it really all being done by Pratt at this point with the relationship there?
Yeah, so the way I divide the responsibilities up is three things. First is acquiring the run-on engine, second is doing the performance restoration, and then third is taking it to market for sale, lease, or exchange.
David Moreno: We do number one and three, and under the Pratt Program, Pratt manages number two.
and they put all new parts, rebuild the engine to a full 20,000 cycles.
There are certain other upgrades of thrust and potential from preselect to select one that are available.
they could do that no one else could do that we saw a lot of value in.
So, at this point, it's really number two is managed by Pratt. We have had discussions with Pratt about potentially having Montreal, FTI Canada become a V2500 shop.
but we don't have a conclusion on that. We would like to ultimately have that capability in Montreal but that's something we haven't finalized a discussion on yet.
Speaker Change: All right, great. Thank you. Just one quick follow-up. I guess PMA was originally 15 to 20 million in this year. Not sure if that's still included or sort of been pushed. Just a way to think about that for 2025 at this point.
We're probably going to come up short on that this year, given that it's, you know, we don't have approvals yet. So I would say that we might have missed on that one.
And nothing on 25 yet, I guess, to think about?
We have not given real guidance on 2025 at this point, so that's something we'll consider early next year.
All right, thank you very much.
David Moreno: Thanks.
Thank you. And our next question will come from Stephen Trent from Citi. Your line is open.
Good morning, and thanks very much for taking my questions. Just some quick ones for you.
Could you sort of give us an update where you are with respect to insurance settlements as some of your competitors seem to be moving ahead in the court. So we'd just love to hear how that's going. Thank you.
Speaker Change: Yes, so I divide it into three different lawsuits if you use two different words.
David Moreno: to use the word.
The first one, we have an agreed deal with the counterparty. That's the smallest one. It's probably about $10-11 million.
David Moreno: which we think, you know, will close here shortly. The second one is a...
our umbrella contingent policy and we've had some, I would say, some overtures.
David Moreno: discussing potential settlements.
on that one, and then the third one is the all-risk policies that are being run through on the London...
David Moreno: Court Cases.
total recoveries in the neighborhood of about $150 million, which is all net income to us since we have written all of that off. So I think we'll ultimately get there, and it's starting to move in that direction.
Okay, that's really helpful, appreciated. And one more, kind of quick one for you. I mean, over the last year and change, you know, your stock has done so well and have you given any thought to
entertaining the idea of a stock split and I know
the retail shareholder might not be your number one priority, but just thinking about high-level.
David Moreno: you know, how you may reach out to these other elements of the market that may balk at, you know, today's price per share. Thank you.
Yeah, I've had one or two people recently bring that up and it's something I hadn't really looked at for a while and so I've asked people for any data they might have to support, you know, whether that's something that increases, enhances value, and if we can sort of get something that convinces us that it's a good idea, we'll consider it, but so far I haven't seen... what I've seen is
David Moreno: didn't seem very conclusive, but I'm open anytime anyone wants to present something which says they can make our stock go up I'm open to talking about it
Very helpful. Thank you very much
David Moreno: Thanks.
David Moreno: Thank you.
Speaker Change: And we'll take our last question from Andre Madrid from BTIG. Your line is open.
Andre Madrid: Hey everyone, good morning and thanks for the time.
Earlier you spoke about the rising demand for field services. Could you maybe explain the margin differential there, if any, between field and non-field? And is there any read on how much of the broader mix this could become, the AP mix?
Sure, this is David. I can take that question. So the way to think about field service is it's a additional distribution channel to move velocity on modules. I would think about it less as a margin play, although the margin is quite good because it's just labor in this scenario, but typically a field service event is about
Andre Madrid: went on to say.
airlines that are in a pinch and able to, you know, bring back an aircraft really back into service very quickly. So I would think about it more as a instrument to increase velocity of modules versus, let's say, an individual margin play.
Thank you.
Got it. Got it. And then I know you outlined previously about 60 to 80 million in maintenance CapEx moving forward, but where exactly is this being deployed and what are the priorities there?
That's a number that we would invest, that we invest to keep our engines in our leasing portfolio in service. So when an engine needs a performance restoration or a shop visit in our leasing portfolio, that's what we spend annually to keep those engines flying.
Speaker Change: Got it, got it. And one more if I could squeeze in. I mean, I know we were talking about the B-25 PMA part from Cro-Malloy that got approved and the read-through from that, but I feel like we kind of danced around and didn't really necessarily attack the conversation of when you guys are expecting. I know it said through end of 24, but could you give any color there if it's sooner as opposed to later?
Speaker Change: Thank you.
We don't give guidance on expectations of when parts will be approved. We've only said that we're very pleased with the progress that's been made and we are happy with the product itself, but we don't specifically forecast when approvals will be obtained.
got it got it had to give a shot but thank you appreciate it thank you and that does conclude our question-and-answer session for today's conference I'd now like to turn the conference back over to Alan Andreini for any closing remarks
Thank you, Crystal, and thank you all for participating in today's conference call. We look forward to updating you after Q4.
Speaker Change: Thank you.