Q4 2024 Lindsay Corp Earnings Call
Speaker Change: [music].
Good day and welcome to the Lindsay Corporation fiscal fourth quarter 2024 earnings Conference call.
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Speaker Change: Now I'd like to turn the conference over to Randy Wood, President and CEO. Please go ahead.
Randy Wood: Thank you and good morning, everyone welcome to our fourth quarter and full year 2024 earnings call with me today is Brian Ketcham, our Chief Financial Officer.
Randy Wood: We are pleased with our fourth quarter and full year performance as our teams executed extremely well during the fiscal year. This allowed us to deliver profitable operating performance amidst challenging market fundamentals, particularly in our irrigation business.
Randy Wood: The North American irrigation, we were pleased to see volume up slightly in the quarter versus last year, driven by carryover storm damage that shipped early in the quarter.
Randy Wood: And international irrigation market softness in Brazil, due to lower growth profitability and poor customer sentiment continues to persist. This headwind has been partially offset by the large project in the Mena region that started shipping in the fourth quarter.
Randy Wood: Turning to our irrigation market outlook.
Randy Wood: While net farm income projections in North America have improved slightly versus earlier forecast much of that good news impacted the livestock sector and we still see major headwinds for the cropping segment more closely associated with our irrigation solutions.
Randy Wood: Recent customer sentiment surveys indicate some of the lowest ratings ever recorded.
Randy Wood: While we have tougher year over year comparisons in the first half of the year, we would expect to see a slightly down market overall unless there is a significant improvement in net farm income in 2025. These projections won't be visible until we get into the next growing season.
Randy Wood: We are seeing some storm damage replacement demand in the south east connected to the tragic hurricane activity, but it's too early to quantify that volume and most growers have a window between now and next spring to make those decisions. We are working closely with our dealers to ensure that we support recovery in the region.
Randy Wood: We expect tempered demand to continue in Brazil, and Latin America until farm profitability and credit availability improved historic drought in parts of the country may support stronger grain prices, but it's also delayed soybean planting which could carry forward to delays and Mr. Free network second crop corn planting.
Randy Wood: We will continue shipping the large mean a project through fiscal year 2025. The project funnel remains active and we continue to advance other projects forward that support food security and other developing international irrigation markets. We look forward to sharing more on these projects in the future.
Randy Wood: Moving to infrastructure.
Randy Wood: In June we installed our first Tao X our express repair cushion in Nevada. This new innovative crash cushion is differentiated by its ability to provide robust protection yeah. It can be installed and repaired weren't impacted in under 30 minutes. We've seen a positive response in the market and have received state approvals in some of our key markets as we await federal highway.
Randy Wood: Administration approval.
Randy Wood: We do anticipate an increase in U S infrastructure spending in fiscal 2025 and to continue to see positive near term market opportunities driven by the increased federal funding provided by the infrastructure investments and jobs Act.
Randy Wood: We maintain the expectation that demand for our road zipper lease and project sales will grow in turn positively impacting revenues and margins.
Randy Wood: We continue to actively manage projects in our sales funnel and have line of flight two additional projects moving through the funnel and fiscal 2025.
Randy Wood: In the area of technology and innovation, we are extremely encouraged to see continued growth in both the field mapping and field wise irrigation management platforms. In addition to realizing the first commercial sale of our impact alert product in the infrastructure segment.
Randy Wood: We now have more than 140000 connected devices and we achieved a 28% growth rate in annual recurring revenue from device subscriptions in fiscal 2024.
Randy Wood: Growth in this recurring revenue stream is supportive of our overall margin profile and we expect to drive continued momentum in this area, while supporting investments that allow us to differentiate and extend our leadership position in technology.
Randy Wood: Moving to our operational footprint.
Randy Wood: We've continued to progress on the $50 million investment at our Lindsay, Nebraska facility, which will allow us to better manage our variable costs as the cycle fluctuates. These long term investments will support the business as the cycle returns to growth providing for increased responsiveness to demand fluctuations improved efficiencies and margin stability.
Speaker Change: Now I'll turn the call over to Brian to discuss our financial results Brian.
Brian Ketcham: Thank you Randy and good morning, everyone.
Total revenues for the fourth quarter of fiscal 2024 were $155 million, a decrease of 7% compared to the fourth quarter last year.
Brian Ketcham: Net earnings for the quarter were $12 $7 million or $1.17 per diluted share compared to net earnings of $19 $2 million or $1.74 per diluted share in the fourth quarter last year.
Brian Ketcham: Total revenues for the full year of $607 $1 million decreased 10% compared to the prior fiscal year.
Brian Ketcham: And net earnings for fiscal 2024 were $66 $3 million or $6.01 per diluted share a decrease of 8% compared to record net earnings of $72 $4 million and $6 54 per diluted share in the prior year.
Brian Ketcham: Turning to our segment results irrigation segment revenues for the fourth quarter were $125 $9 million, a decrease of 12% compared to the prior year.
Brian Ketcham: North America irrigation revenues of $61.7 million increased 2% compared to the prior year.
Brian Ketcham: The increase in revenues resulted primarily from higher unit sales volumes, while average selling prices were comparable with the prior year incur.
Brian Ketcham: Increased irrigation equipment sales were driven by a higher level of storm damage replacement demand compared to the prior year.
Brian Ketcham: The impact of higher equipment sales was partially offset by lower sales of replacement parts due to wet field conditions in certain parts of the country that limited equipment run times.
Brian Ketcham: In international irrigation markets revenues of $64 $2 million decreased 23% compared to last year.
Brian Ketcham: The decrease resulted primarily from lower revenues in Brazil compared to record revenues in the prior year fourth quarter.
Brian Ketcham: Revenues were also lower in other parts of Latin America, while demand in other developed markets remained relatively stable.
Speaker Change: These decreases were partially offset by higher project sales in developing markets as Randy mentioned in his remarks, we began delivery on the previously announced project in the Mena region during the quarter.
Speaker Change: Revenues in the current year quarter were also impacted by the unfavorable effects of foreign currency translation of approximately $3 $1 million compared to the prior year quarter.
Speaker Change: Total irrigation segment operating income for the fourth quarter was $17 $1 million, a decrease of 43% compared to last year and operating margin was 13, 6% of sales compared to 27% of sales last year.
Lower operating income and operating margin resulted primarily from lower international irrigation revenues and the impact from the deleveraging of fixed operating expenses compared to the prior year.
Speaker Change: For the full fiscal year total irrigation segment revenues of $513 $9 million decreased 12% compared to the prior year.
Speaker Change: North America irrigation revenues of $302 $1 million decreased 2% as higher unit sales volumes were more than offset by lower sales of replacement parts and slower and slightly lower average selling prices compared to the prior year.
Speaker Change: International irrigation revenues of $211 $7 million decreased 23% compared to prior year, primarily the result of lower revenues in Brazil, and other Latin American markets.
Speaker Change: This decrease was partially offset by higher revenues from project sales in developing markets compared to the prior year.
Speaker Change: Operating income in the irrigation segment for the full fiscal year of $87 $6 million.
Speaker Change: Was a decrease of 28% compared to the prior year and operating margin was 17% of sales compared to 28% of sales in the prior year.
Speaker Change: Lower operating income and operating margin resulted primarily from lower international irrigation revenues and from the impact of deleveraging of fixed operating expenses.
Speaker Change: Infrastructure segment revenues for the fourth quarter of $29 $1 million increased 24% compared to the prior year.
Speaker Change: The increase in revenues resulted from higher road zipper system sales and lease revenues compared to the prior year fourth quarter.
While the impact of higher sales of road safety products in the U S was offset by lower sales in international markets compared to the prior year.
Speaker Change: Infrastructure segment operating income for the fourth quarter of $5 $6 million increased 79% compared to the prior year.
Speaker Change: In infrastructure operating margin for the quarter was 19, 2% of sales compared to 13, 3% of sales in the fourth quarter last year.
Speaker Change: Increased operating income and operating margin resulted from higher revenues and from a more favorable margin mix of revenues with higher road zipper system sales and lease revenue as compared to the prior year.
Speaker Change: For the full fiscal year infrastructure segment revenues of $93 $2 million increased 6% compared to the prior year.
Speaker Change: The increase was primarily attributable to higher road zipper system lease revenues, which were partially offset by lower road zipper sales and lower sales of road safety products compared to the prior year.
Speaker Change: Infrastructure operating income for the full fiscal year was $19 million and decreased or increased 57% compared to the prior year.
Speaker Change: Operating margin for the year was 24% of sales compared to 13, 7% of sales in the prior year.
Speaker Change: Turning to the balance sheet and liquidity are.
Speaker Change: Our total available liquidity at the end of the fourth quarter was $249 million, which includes $199 million in cash and cash equivalents and $50 million available under our revolving credit facility.
Speaker Change: Our operating performance for the year, along with diligent working capital management resulted in free cash flow of $66 $8 million or 101% of net earnings.
Speaker Change: Our demonstrated cash flow generation further strengthens our balance sheet and positions us well to continue executing on our capital allocation priorities.
Speaker Change: Balancing organic and inorganic investments along with returning capital to our shareholders.
Speaker Change: During the quarter, we completed additional share repurchases of $4 $6 million, bringing the total share repurchases to $22 $5 million for the year.
Speaker Change: This concludes my remarks and at this time I'll turn the call over to the operator to take your questions.
Speaker Change: We will now begin the question and answer session to ask a question you May Press Star then one on your telephone keypad, if youre using a speakerphone. Please pick up your handset before pressing the keys.
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Speaker Change: At this time, we will pause momentarily to assemble our roster.
Speaker Change: Okay.
Speaker Change: The first question comes from Nathan Jones with Stifel. Please go ahead.
Nathan Jones: Good morning, everyone.
Speaker Change: Hi, Nathan.
Speaker Change: Well, let's start off with your question about the decremental margin, but in the quarter and the year.
Nathan Jones: Yeah, I think for the year it was almost 50% for the quarter.
Nathan Jones: Above 70%, so just some commentary on <unk>.
Nathan Jones: What led to that.
Nathan Jones: Yes.
Nathan Jones: Deleveraging that you've seen in the quarter and the year.
Nathan Jones: Maybe it has something to do with Brazil, being more profitable than I thought it was essentially.
Nathan Jones: Any color you can provide us around the mix impacts that are contributing to that debt deleveraging.
Nathan Jones: Yes, Nathan this is Brian.
Brian Ketcham: When you look at the year over year decremental margins, it's entirely related to the international irrigation business. When you look at North America, and we don't break this out but I would say north American margins have maintained and even slightly improve this year and when you look at last year, especially in the fourth quarter. It was.
Nathan Jones: Ed.
Nathan Jones: Our record fourth quarter for Brazil and.
Nathan Jones: The amount of leverage we got on that additional volume and price.
Nathan Jones: Obviously, it was very strong last year so.
Nathan Jones: You know very strong year last year in Brazil This year.
Nathan Jones: Off quite a bit so.
Nathan Jones: That deleverage there is pretty significant and then a little bit of the mix.
Nathan Jones: And the shift of less Brazil.
Nathan Jones: Volume this year and we got the additional volume from the project business, which is.
Nathan Jones: Slightly dilutive to overall margins as well, but the biggest single impact was that year over year, Brazil change.
Speaker Change: Makes sense can you talk about.
Middle East project.
Speaker Change: Shipping in the fourth quarter like how much revenue shipped in the fourth quarter, how much shipped in 2025, and I guess given that youre going to have growth in these international projects next year.
Speaker Change: And it is probably fairly likely that Brazil is going to be one of the weaker markets for you again in 2025 should we think that there's some mix headwinds.
Speaker Change: And additional deleveraging that we're getting in Brazil, they create headwinds for margins in 2025.
Speaker Change: Yeah.
Speaker Change: First of all in the fourth quarter, we shipped roughly $14 million of the project.
Speaker Change: And next year, we anticipate roughly 80 million, which would be spread throughout each of the four quarters. So.
Speaker Change: There is a dilutive effect because of the margins on the large projects like that are generally going to be below.
Speaker Change: Our normal margins, but if you look at it in context of the entire segment.
Speaker Change: For the full year, I mean, clearly more deleverage on the gross margin line, but you get leverage on SG&A. So when you get down to operating margin for the full year.
Speaker Change: It's probably in the neighborhood of about 100 basis points of dilution.
Speaker Change: And we should expect some additional headwinds for them from Brazil, probably being one of the worst market in 2025 or is that not your expectation that it will be one of the worst market.
Speaker Change: No, we expect especially in that first two quarters of the year to still see.
Speaker Change: The year over year, another leg down in Brazil, but as we look at the full year I think.
Third and fourth quarters, we would expect to get at least more flattish compared to.
Speaker Change: This year.
Speaker Change: So overall, yes, we would expect Brazil to be down.
Speaker Change: Probably in that double digit low double digit area for the full year next year.
Speaker Change: Great I'll pass it on and get back into queue. Thanks.
Speaker Change: Our next question comes from Ryan Connors with Northcoast Research partners. Please go ahead.
Ryan Connors: Hey, good morning.
Speaker Change: Right.
Ryan Connors: So I wanted to actually push on the on the margins a little bit because if you cite the negative volume leverage, but if I look at the gross margin actually we held up pretty well close to 30%, but with SG&A actually ramped.
Speaker Change: Pretty significantly year over year, 20% up.
And selling.
Speaker Change: 10% up in G&A. So it seems like Theres certainly some upward creep in cost in addition to the negative leverage. So just wanted to try to reconcile that and if you can provide any color around the SG&A drivers as well.
Yeah. This is Brian I would say on the SG&A side, one of the components is on these project businesses.
Speaker Change: Both in infrastructure and in irrigation theres going to be sales commissions that are going to accompany those so some of that increase is just related to sales commissions.
We also.
Speaker Change: Continue to invest in some of our R&D and technology development.
Speaker Change: And when you look at the.
Speaker Change: The project activity that we're seeing in the Mena region. There is some additional.
Speaker Change: Resources that we've deployed to address that but to offset that we've we have taken action to reduce costs and some other areas, where we can but.
Speaker Change: But.
Speaker Change: We will probably see more of an impact.
In 2025.
Speaker Change: Say just the other thing on the gross margin.
Speaker Change: Side that we talked about.
Speaker Change: Just the deleveraging on fixed costs, but we did have we have spoken before about Brazil, and how pricing has been under pressure.
Speaker Change: In Brazil, and so Thats also contributing to the better the margin compression.
Speaker Change: Got it yeah, okay that price would be what I would.
Okay got it.
Speaker Change: And then in terms of these other large projects in middle East is there anything I know you cant discuss too much there.
Speaker Change: Working on new business, but we talk in anything.
Speaker Change: Order of magnitude as large as the current big.
Speaker Change: I mean, a project or is it a bunch of smaller ones just any any color on kind of what that pipeline looks like anything that's quite that large.
Speaker Change: Yes. Good morning, Ryan This is Randy and I'll take that one and I would say there is a mix of projects and being able to identify and pull out another $100 million plus through in fiscal year 'twenty five.
Speaker Change: Not highly probable but do we have a handful of smaller projects.
Speaker Change: <unk> add up to that some.
Speaker Change: That's more than likely but there is a strong mix here several small ones a couple of big ones. We like the funnel we see in these arent highly speculative. These are specific customers specific pieces of ground as we've said before and you hear from others in the industry. These are incredibly complex time consuming both on the deal itself.
Speaker Change: Sometimes you'll have a deal signed and it could take several weeks several months to work through credit approvals terms of conditions. So we'll generally talk about the funnel being robust and it remains that way, but we won't talk about specific projects until we know we've got terms and conditions agreed credit secured and we're ready to start building and shipping those units, but we do see an opportunity to.
Speaker Change: To cover a lot of that volume and in the coming years.
Speaker Change: Got it Okay and then just one last one for me it's been.
Speaker Change: A bit of a housekeeping, Brian the tax rate's been sort of jumping around all over the place I assume that has to do with the volatility and the different tax jurisdictions and the earnings contribution, but any help you can give us on kind of where we think about that coming in for fiscal 'twenty five.
Brian Ketcham: Yeah, I think in the most recent quarter just the shift in an income from Brazil being down and then.
Brian Ketcham: The project business, which we ship out of our Turkey facility, which is in a tax free zone. So that had an impact but as we look in early in the year. We had the tax credits that also had a pretty significant impact.
Brian Ketcham: As we look forward to next year, given the anticipated blend in our earnings I would say, we're probably in that 25% range.
Brian Ketcham: Absent any other onetime kind of things, but I would say 25 would be where we'd expect to be next year.
Speaker Change: Got it very helpful. Thanks for your time.
Speaker Change: Our next question comes from Brian Drab with William Blair. Please go ahead.
Speaker Change: Hey, good morning, Tyler here filling in for Brian Thanks for taking my questions.
Speaker Change: Starting off could you elaborate on the progress of the road Zipper funnel is this a tailwind from the I J a funds flowing through or is this other federal funds and how is the pipeline looking quarter over quarter, and then I'll have a follow up.
Speaker Change: Sure you bet Tyler, Yes, the road zipper funnel from from our perspective continues to build and this is really a couple of things momentum coming out of Covid. When we really had to shut down some of those face to face meetings and this really is a person to person sales process. So I think time now is on our side, we do see when the infrastructure investment and jobs.
Speaker Change: The money goes to the market, we can see some some increases in road zipper business as they start to deploy the projects as they use the road zipper to manage through the construction period. So I think there are a couple of different factors, providing some some tailwind for US there we continue to see new projects and new interest enter the funnel and it's really a global funnel at this point is while we've had a lot of.
Speaker Change: Success in Japan, and we've had a lot of success in Italy that we've talked about in this business is getting some of that momentum, which which we'd love to see.
Speaker Change: Yeah.
Speaker Change: Great that was helpful. And then I understand that large projects are dilutive, but can you kind of an impact on how that all works is there anything new to the dynamics since the last time you had some strong project orders and how do you expect that mix to look going forward between project sales and lease revenue. Thank you.
Speaker Change: Yes.
Speaker Change: If youre talking about the infrastructure side Tyler.
Speaker Change: Project sales, there are going to be accretive to margins versus international irrigation projects. So.
Speaker Change: As we see projects moving through the sales funnel and expect to see some.
Speaker Change: Growth in 2025, we would expect that to be accretive to overall margins.
Tyler: Okay got it thanks, Brian.
Speaker Change: That's all I have I'll pass it on.
Speaker Change: The next question comes from Brett Kearney with American Rebirth opportunity. Please go ahead.
Brett Kearney: Hi, guys. Good morning, Thanks for taking my question.
Speaker Change: Brett.
Brett Kearney: You kind of addressed a part of it part of it already in the <unk>.
Brett Kearney: <unk> question, but was curious with the momentum in the infrastructure side of the business is the outsize opportunity you see really I guess state side or I know there've been some <unk>.
Brett Kearney: Similar kind of physical infrastructure.
Brett Kearney: Support packages passed and some of your other international markets I guess, both for road safety products as well as.
Brett Kearney: Road zipper opportunities.
Brett Kearney: How are you thinking about the opportunity set in fiscal 'twenty five and beyond.
Brett Kearney: International versus domestic.
Brett Kearney: Yes, Brett this is Bryan I think as we look at 2025.
Brett Kearney: The growth that we're expecting next year is going to be primarily U S and again a lot of that supported by just the additional funding thats in.
Brett Kearney: In this sector, but as Randy mentioned, the funnel includes global opportunities as well.
Brett Kearney: But just the.
Brett Kearney: Near term growth that we expect would be primarily in the U S and.
Brett Kearney: On the road Zipper project sales side.
Brett Kearney: Potential outside the U S as well, but the near line of sight that we have is primarily U S based.
Speaker Change: Excellent thanks, Brian if I could ask one more.
Speaker Change: Terrific to see the adoption on some of your new products, the <unk> XR as well as either connected offerings across both segments.
Speaker Change: I guess.
Speaker Change: As you think about how your markets are evolving.
Speaker Change: Anything you can share in terms of product innovation both internal.
Speaker Change: Lindsay as well as potential external solutions.
Speaker Change: That would make sense.
Speaker Change: Bringing into the Wyndham portfolio based on how you see.
Speaker Change: The market's developing from here.
Speaker Change: A core spread. This this is an area and key area of differentiation for us our investments in technology. Those are the ones that we want to protect.
Speaker Change: The down cycle, and certainly want enhanced when we can in the up cycle.
Speaker Change: Made strategic investments in companies like field wise that are now integrated in the business and producing some outstanding results in the partnership and innovation that we see.
Speaker Change: We've announced a minority investments working through personal instruments that brings whether in environmental monitoring into the mix and when we talk to customers. This is an area that I think they really are counting on us to differentiate to drive innovation to improve their ability to conserve resources to conserve energy and really turn this technology into our profit maker.
Speaker Change: For them. So when we see the types of growth that we see there even in a down market. It really validates the strategy and it's an area that we'll continue to invest in and hopefully continue to differentiate Lindsay in.
Speaker Change: Great. Thanks, so much Randy.
Speaker Change: Alright, Thanks, Greg.
Speaker Change: Again, if you have a question. Please press Star then one.
Speaker Change: Our next question comes from Jon Braatz, with Kansas City Capital. Please go ahead.
Jon Braatz: Good morning, Randy Bryan.
Speaker Change: Thanks, John.
Jon Braatz: Randy or Brian can you talk a little bit about the level of maybe storm.
Jon Braatz: Storm revenues that you saw this year and then maybe.
Jon Braatz: The impact.
Jon Braatz: The hurricanes might have.
Jon Braatz: Over the next couple of months so.
Jon Braatz: Are you going to see some storm storm storm related revenue.
Jon Braatz: From the Hurricanes.
Speaker Change: Yes, John I'll take the first part of that as Bryan and then Randy can speak about the second part of your question, but I would characterize this year, our fourth quarter storm damage activity being <unk>.
Speaker Change: Slightly above average if you recall last year, we were below average and storm damage replacement following 2022, which was probably at all time.
Speaker Change: Record for storm damage replacement, so relatively speaking.
Speaker Change: For a longer period. This was I would say above average.
Speaker Change: If you look at our unit volumes for the quarter.
Speaker Change: Being up without the storm damage.
Speaker Change: We're probably been down low single digits. So it did have an impact on the quarter.
Speaker Change: But.
When you put in perspective of what.
Speaker Change: Has been in other years, it's I would say again slightly above average.
And I'll cover kind of the most recent activity in the southeast and talking with our dealers with our field representatives are some of the insurance companies.
Speaker Change: We estimate there are several hundred machines down across all brands in that part of the world and in a lot of those customers as we mentioned in our opening remarks, there is not a rush to get a machine put back in there. We're at the end of the season, where we're getting through harvest. So that volume is really going to start now and run right through spring planting. So we don't expect a huge spike in one month.
Speaker Change: It's not like a summer storm in the Midwest, where they wanted to get those machines back on quickly theyre going to be replaced on a much longer timeline. We're also hearing from for a lot of customers, mainly due to insurance that there might be more repairs than replacement. This time around there is a big gap between kind of the insured price and the cost of the new machine. So this might be a replacement cycle, where we see maybe.
Speaker Change: More pipeline structural parts purchases as opposed to completely new machines, but as I mentioned again in the comments, we're working very closely with our regional teams our dealers and helping those customers as best we can as quickly as we can okay. Randy secondly.
Speaker Change: You seem to be.
Speaker Change: Very positive.
Randy Wood: On the EMEA region in terms of.
Speaker Change: The activity and.
Speaker Change: And I sense, maybe its picked up a little bit maybe from last year or whatever.
Speaker Change: But is there something maybe changing in and in the EMEA region, that's supports that supporting.
Speaker Change: The additional activity irrigation activity.
Speaker Change: I would say that the interest in investing in irrigation connected to population growth connected to food security the Moe.
Speaker Change: Automation this year is consistent with last year and even the year before.
Speaker Change: Maybe some shifts in credit availability access to capital that Theres been some funding into that region that is now maybe given a more ability to invest in purchase than they've had historically, but I think those long term secular drivers are motivators, there is strong and as positive as they've ever been just maybe more ability now to execute those because of the.
Speaker Change: The funds are available to them, but that that is going to continue to be as we've said as others have said a pretty significant growth opportunity for the industry and we like the way that we're positioned we like our competitiveness our ability to identify compete and win and then execute those projects very well okay. Thank you Randy.
Speaker Change: Hi, John.
Speaker Change: Okay.
Speaker Change: Our question and answer session I would like to turn the conference back over to Randy would for any closing remarks.
Thank you all for joining us on today's call I'm proud of our performance in the quarter and full fiscal year I'm pleased with our continued operational execution demonstrated by our teams around the world our focus on price and cost management have supported our underlying results in a cyclically challenging market. While we're managing costs, we continue to invest in innovation to grow our installed base in <unk>.
Speaker Change: Recurring revenue in both the irrigation and infrastructure segments, we will continue to leverage our strong balance sheet to invest capital in our facilities around the world to improve safety productivity and efficiency. We look forward to updating you on our progress at the end of our fiscal 2025 first quarter. Thank you.
Speaker Change: The conference has now concluded. Thank you for attending today's presentation you may now disconnect.