Q3 2024 Civeo Corp Earnings Call
I'm not sure if you can see the difference between the two of us.
Speaker Change: Greetings and welcome to the Civio Corporation 3rd Quarter 2024 Earnings Call. At this time all participants are in a listen-only mode.
Speaker Change: A brief question and answer session will follow the formal presentation.
Speaker Change: If anyone should require operator assistance during the conference, please press star zero on your telephone keypad.
Speaker Change: Thank you and welcome to Civio's third quarter 2024 earnings conference call. Today, our call will be led by Bradley Dodson, Civio's President and Chief Executive Officer, and Colin Gary, Civio's Chief Financial Officer and Treasurer.
Speaker Change: Before we begin, we would like to caution listeners regarding forward-looking statements.
Speaker Change: To the extent that our remarks today contain anything other than historical information, please note that we're relying on the safe harbor protections afforded by federal law.
Speaker Change: Any such remarks should be read in the context of the many factors that affect our business, including risks and uncertainties disclosed in our Forms 10-K, 10-Q, and other SEC filings. I'll now turn the call over to Bradley.
Bradley Dodson: Thank you, Regan, and thank you all for joining us today on our third quarter earnings call.
Bradley Dodson: I'll start the call today with a few key takeaways for the third quarter and then give a brief summary of our third quarter 2024 performance.
Bradley Dodson: and Colin will provide a financial and segment level review.
Bradley Dodson: And I will conclude with our preparedness comments with updated fall year 2024 guidance with the underlying regional assumptions.
Bradley Dodson: I also provide our preliminary outlook for 2025.
Bradley Dodson: We will then open the call for questions.
Bradley Dodson: Australia adjusted EBITDA to increase 19%.
Bradley Dodson: from the third quarter of 2023 due to continued strong build rooms in our own villages and increased activity in our integrated services business.
Bradley Dodson: as we expand existing customer relationships.
Bradley Dodson: While we anticipated the decline in our Canadian segment, the decline in LNG and mobile camp activity
Bradley Dodson: The segment performance was weaker than expected in the third quarter due to lower lodge build rooms which were negatively impacted by Canadian wildfires.
Bradley Dodson: Third key point, today we announced a 33-month contract renewal for a major Canadian oil sands producer to continue to provide accommodations and hospitality services through June 2027.
Bradley Dodson: which is expected to have total contracted revenues of approximately $150 million Canadian.
Bradley Dodson: During the third quarter, we returned $17.8 million of capital to shareholders through our quarterly dividend and sharing purchases.
Bradley Dodson: Last key point, we are tightening our revenue and adjusted EBITDA guidance for the full year 2024 to $675 million to $700 million of revenues.
Bradley Dodson: Adjusted EBITDA of $83 million to $88 million.
Bradley Dodson: As we look forward to 2025, our preliminary expectations for adjusted EBITDA are expected to be in excess of $90 million.
Bradley Dodson: I'll now take a moment to provide some commentary on our business segments.
Bradley Dodson: Australian segment performed well during the third quarter and the team continues to execute on our previously stated goal to grow our Australian integrated services revenues to 500 million Australian by 2027.
Bradley Dodson: We've experienced year-over-year and sequential growth in both our own village business and our integrated services business.
Bradley Dodson: Our year-over-year integrated services growth was particularly strong due to the impact of recent competitive wins as well as the expansion of existing customer relationships.
Bradley Dodson: In Canada, as expected, our third quarter Canadian segment revenues in just even dot decreased year-over-year, primarily due to the expected wind-down of LNG related activity. The sale of a McClung Lake Lodge
Bradley Dodson: and the previously discussed pull forward of customer turnaround and operational activities into the second quarter.
Bradley Dodson: This was expected but was exacerbated by the wildfire related evacuation and associated delays.
Speaker Change: With that, I'll turn the call over to Colin, our new CFO. Colin has been with Cinevio since our spinoff in 2014 in strategic, financial, operational, commercial roles.
Colin Gary: Welcome, Tom. Thank you, Bradley, and very happy to be here.
Colin Gary: During the third quarter, we generated adjusted EBITDA.
Colin Gary: of $18.8 million, operating cash flow of $35.7 million, and free cash flow of $28.3 million.
Colin Gary: While 3rd quarter adjusted EBITDA was down year-over-year for all the reasons Bradley mentioned, the company's cash flow generation was quite strong, as we delivered relatively consistent operating cash flows the same quarter last year.
Colin Gary: I'll discuss that in more detail a little later in the call, but first, I'd like to provide more context on our two segments.
Colin Gary: I'll begin with a review of the Australian segment performance compared to its performance a year ago in the third quarter of 2023.
Colin Gary: Third quarter revenues from our Australian segment were $116.6 million of 33% from $87.9 million in the third quarter of 2023.
Colin Gary: Adjusted EBITDA was $22.5 million, up 19% from $18.9 million last year.
Colin Gary: The increase in revenues and adjusted EBITDA was due to increased bill rooms at our own villages and increased integrated services activity related to recent competitive wins as well as the expansion of existing client activity.
Colin Gary: This shows our continued and steady growth in this site.
Colin Gary: Australian billed rooms in the quarter were 647,000 rooms.
Colin Gary: up 4% from 623,000 in the third quarter of 2023.
Colin Gary: This is due to increased customer demand at our own villages, our daily room rate
Colin Gary: for our Australian owned villages in the U.S. in U.S. dollars was $79 which increased from $74 in the third quarter of 2023 due to CPI escalations in the recent contracts.
Colin Gary: Turning to Canada.
Colin Gary: We recorded revenues of $57.7 million.
Colin Gary: as compared to revenues of $95.1 million in the third quarter of 2023.
Colin Gary: Majesté du Vidin Canada was $3.4 million, a decrease from $23.2 million in the third quarter of 2023.
Colin Gary: The year-over-year revenue and adjusted EBITDA decrease was driven by the expected wind-down of LNG-related activity, including the completion of pipeline activity for our mobile lamps.
Colin Gary: the sale of our Napoleon Lake Lodge,
Colin Gary: and lower build rooms as a result of the pull forward of turnaround activity into the second quarter of 2024, as well as the evacuations from Canadian wildfires.
Colin Gary: For context, the year-over-year decrease in adjusted EBITDA from our LNG-related business was approximately $12 million.
Colin Gary: During the quarter, billed rooms in our Canadian lodges totaled $484,000.
Colin Gary: which was down from $726,000 in the third quarter of 2023.
Colin Gary: due to the reasons I just mentioned.
Colin Gary: Our daily room rate for the Canadian segment in U.S. dollars is $100.
Colin Gary: which increased from $98 in the third quarter of 2023 due to the mix of occupancy between lodges.
Colin Gary: Next, I'll take a look at our capital structure.
Colin Gary: On August 13th, we announced the completion of an amendment and extension to our credit agreement.
Colin Gary: The amendment extends the maturity date to August 2028, upsizes the total revolving credit facility capacity to $245 million from $200 million, and reduces our borrowing costs.
Colin Gary: Our net debt on September 30, 2024 was $32.2 million, a $7.9 million decrease since June 30, 2024.
Colin Gary: Our net leverage ratio for the quarter remained flat at 0.3 times.
Colin Gary: As of September 30, 2024, we have total liquidity of approximately $212 million, giving us the strength and flexibility to opportunistically pursue growth while maintaining premium leverage ratios and returning capital to shareholders.
Colin Gary: Finally, I'll turn to capital allocation and cash flow.
Colin Gary: I'll start with cash flow as there's been some nuance this year that is worth pointing out.
Colin Gary: On a year-to-date basis, adjusted EBITDA of $68.5 million is down 22 percent.
Colin Gary: However, operating cash flows of $74 million are up 31% year-over-year.
Colin Gary: There are two primary reasons for this discrepancy.
Colin Gary: First, with the completion of several of the LNG-related mobile camp projects in Canada, we received payments which were contingent upon the demobilization of those camps.
Colin Gary: Once those projects completed, these holdbacks were released, which augmented cash flows.
Colin Gary: Secondly, working capital in Canada.
Colin Gary: provided higher cash flow this quarter.
Colin Gary: due to the compression of turnaround work into the second quarter and subsequent payment in third quarter.
Colin Gary: Both of these have resulted in stronger year-over-year cash flows.
Colin Gary: On the capital expenditure front, on a consolidated basis, CapEx for the third quarter of 2024 was $7.5 million, compared to $9.5 million during the same period in 2023.
Colin Gary: Capital expenditures in both periods were predominantly related to maintenance spending on our lodges and villages.
Colin Gary: Capital expenditures in the third quarter of 2023 also included $3.6 million related to customer-funded infrastructure upgrades at three Australian villages which were reimbursed by our client.
Colin Gary: Looking forward, fourth quarter 2024 CAPEX includes maintenance CAPEX and some discretionary capital related to a lodge optimization project in Canada and projects to refresh some of our Australian villager rooms in response to higher demand.
Colin Gary: In the third quarter of 2024, we repurchased approximately 515,000 shares through our Share Repurchase Program for a total of $14.2 million.
Speaker Change: As Bradley mentioned, we returned $17.8 million of capital to shareholders through the quarterly dividend and share repurchases in the quarter, bringing our total year-to-date return of capital to shareholders to $35 million.
Speaker Change: On September 11th, we announced the renewal of our share repurchase program, authorizing the repurchase of up to 5% of total common shares outstanding over the next 12 months. We will continue to be opportunistic about repurchasing shares.
Speaker Change: This morning we also announce that our board has declared our quarterly dividend payment.
Speaker Change: Shareholders of record as of November 25th, 2024 will receive 25 cents per share cash dividend payable on December 16th, 2024.
Speaker Change: With that, I'll turn it over to Bradley to discuss our guidance for the year 2024 and our thoughts moving forward.
Bradley Dodson: Thank you, Colin.
Bradley Dodson: I would now like to turn our discussion to how we see things playing out in 2024 and our preliminary look at 2025.
Bradley Dodson: As mentioned earlier, we are tightening our full year 2024 revenue and adjusted EBITDA guidance ranges.
Bradley Dodson: to $675,700,000 on revenues and $83,088,000,000 on adjusted yields.
Bradley Dodson: We are maintaining our full year 2024 capital expenditure guidance of $30 million to $35 million.
Bradley Dodson: based on our adjusted EBITDA and CAPEX guidance.
Bradley Dodson: We expect our 2024 free cash flow to be in the range of $50 million to $60 million.
Bradley Dodson: I'll now provide the regional outlooks and corresponding underlying assumptions.
Bradley Dodson: In Canada, I'd like to first acknowledge the forest fires and the impact on our Canadian operating region. I want to thank our employees who worked around the clock to ensure the safety of our guests, the first responders, and our assets.
Bradley Dodson: While our assets were not damaged by the fires, our third quarter financial performance was negatively impacted by customer evacuations and so seeded delays.
Bradley Dodson: We currently do not expect a material impact from the fires.
Bradley Dodson: to continue into the fourth quarter.
Bradley Dodson: On a more positive note, we are encouraged by the multi-year contract renewal by a major Canadian oil sands producer and believe that this is a testament to our solid operational execution and our strong customer relationship.
Bradley Dodson: This renewal was already factored into our 2024 guidance, but provides CIVIA with more revenue visibility for the future.
Bradley Dodson: As we look at the fourth quarter, 24-24.
Bradley Dodson: We expect to experience a sequential decline in build rooms at our lodges due to the typical seasonality of our customers' operations.
Bradley Dodson: Partially offset by occupancy, recovering from wildfire-related evacuations and delays.
Bradley Dodson: Fourth quarter will also be burdened by approximately $1 million of mobile camp demobilizations, which should be the final mobile camp demobilization costs.
Bradley Dodson: Turning to Australia, customer activity in our own villages remains incredibly strong and we expect to continue at similar levels going forward.
Bradley Dodson: We are currently full at three of our Bowen Mason villages with strong occupancy at the rest of our owned villages in the Australian portfolio.
Bradley Dodson: As it relates to our integrated services business, we are continuing to experience increased demand from recent contract awards as well as the expansion of existing customer relationships.
Bradley Dodson: We have continued to see substantial growth in recent years in the business and we're excited about the future growth potential in our Western Australian and our overall integrated services business.
Bradley Dodson: I'll now provide a few preliminary comments on our 2025 album.
Bradley Dodson: As we discussed throughout the year, the Canadian business is experiencing transitional periods with the LNG-related construction activity winding down, coupled with the sale of our McClellan Lake Lodge.
Bradley Dodson: Most of that transition has been completed or will be completed in 2024 and we are expecting a relatively flat year in 2025.
Bradley Dodson: for Canada.
Bradley Dodson: The growth in Australia, the growth that we experienced this year coupled with our expectation for continued strong occupancy should translate into year-over-year growth in 2025 for Australia.
Bradley Dodson: Taken together, we are preliminarily expecting EBITDA in 2025 to exceed $90 million and will provide more detailed outlook in our 2024 year-end conference call, earnings conference call, in February.
Bradley Dodson: Underpinning our expectations for 2025 are the following observations.
Bradley Dodson: In Canada, new project bidding activity continues to strengthen and we're optimistic that we'll be able to deploy mobile camp assets in 2025 outside our core operating regions.
Bradley Dodson: 2025 will also not be burdened by mobile camping mobilizations I mentioned earlier, which impacted 2024 even die by approximately four million dollars.
Bradley Dodson: We expect 2025 oil sands lodge activity to be relatively flat with this year's levels.
Bradley Dodson: We're deploying limited growth capex in the back half of 2024 to optimize our oil sands lodge portfolio backed by customer demand which should drive modest growth in 2025.
Bradley Dodson: Thank you for watching. I'm Regan Nielsen. I'll see you next time.
Speaker Change: In Australia for next year, despite commodity price volatility, we're encouraged by the outlook for both our own villages and our integrated services business.
Speaker Change: We expect our own villages to remain, its occupancy to remain at strong levels with the majority of our villages at or near peak occupancy.
Speaker Change: Our integrated services business should continue to benefit from recent contract wins and the expansion of customer relationships that has driven substantial growth in 2024, and we'll also see opportunities to further expand in 2025.
Speaker Change: Having outperformed our target leverage ratio, we are positioned to be more opportunistic in 2025.
Speaker Change: in deploying expansionary capital we anticipate to drive long-term economic returns to help safeguard and grow our future cash flows.
Speaker Change: With that, we're happy to take your questions.
Speaker Change: Thank you. We'll now be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.
Speaker Change: One moment please while we pull for your questions.
Speaker Change: Our first question comes from the line of Stephen Jungaro with Stiefel. Please proceed with your question.
Stephen Jungaro: Thanks, and good morning, everybody.
Stephen Jungaro: Two, I think two for me, the first
Stephen Jungaro: When we think about capital allocation, can you talk about just kind of the M&A strategy and the types of things you might look at and which markets, et cetera, just to kind of give us kind of an overview of how you're thinking about that?
Stephen Jungaro: Sure.
Speaker Change: I think there are certainly opportunities to grow our core operations, which would be Western Canada and owned villages in Australia, those two areas.
Speaker Change: So we'll look to grow the core and continue to expand that. I think there are also growth opportunities in expanding...
Speaker Change: geographically and the end markets that we serve. So we'll look to expand in North America, outside of Western Canada, both into Eastern Canada and then back into the U.S.
Speaker Change: In Australia, it will be continuing to expand our integrated services business.
Speaker Change: both geographically, which predominantly are integrated services, is in
Speaker Change: Thank you.
Speaker Change: Western Australia. We have moved into South Australia but to expand that further and see if there are opportunities to expand that outside of purely natural resources.
Speaker Change: That would be both inorganically and organically.
Speaker Change: That's helpful, Bradley. The other question, and this might be hard to quantify, but I'll ask anyway. When we think about your Canadian business, and you mentioned the mobile camps already,
Speaker Change: How much of Canada for next year?
Speaker Change: is highly visible. I won't say quite contracted, but highly visible right outside of the turnaround work. I think most of what we're seeing up there is pretty visible, but could you speak to that a bit?
Bradley Dodson: I guess I'll address the second part first, which is
Speaker Change: If you look at this year, we'll end the year in Canada with approximately 2.2 million build rooms for the full year.
Speaker Change: including what's in guidance for the fourth call.
Speaker Change: About 25, a little less, 20-25% of that is turnaround activity.
Speaker Change: That won't be contracted. It certainly is based on strong customer relationships and strong portfolio of locations that we have in Canada.
Speaker Change: But then the balance of it is largely contracted with primarily large operators in Canada. So we see build rooms in 2025 to be relatively flat year-over-year.
Speaker Change: subject to finalizing our budgets and be prepared to talk in more detail in February.
Speaker Change: but usually as we go in and we'll give you the exact percentages as we're not done with budgeting yet but typically as we go into Canada we have 60% of the bill grooms.
Speaker Change: contract. Some of that will be guaranteed and some of that will be under exclusivity contract.
Speaker Change: Okay, good. That's helpful, Collar. Thank you.
Speaker Change: Thank you. Our next question comes from the line of Steve Farazani with Sidotian Company. Please proceed with your question.
Steve Farazani: Morning, Bradley, Colin. Thanks for the detail on the call. I wanted to ask, any way to quantify the impact of the wildfires on your Q3 results?
Speaker Change: I would say in rough numbers in terms of what didn't flow through in the third quarter was on the order of magnitude about 30,000 room nights in turnaround activity and so that that's roughly the impact that we saw. Some of that was pulled forward but some of that quite frankly that we had evacuations and occupancy didn't recover back to where it was prior to the forest fires.
Speaker Change: Thank you. Thank you.
Speaker Change: as we look at 2024 and start to look at 2025 again, looking at relatively flat build rooms and Canadian lodges year over year.
Speaker Change: OK.
Speaker Change: When I think about, so that's assuming you're
Speaker Change: It's $100.
Speaker Change: that's roughly a $3 million impact, if I'm doing my math right, but you didn't
Speaker Change: You went to the high end of your revenue range and you only tightened EBITDA, so it would indicate something else is going stronger to offset what was a pretty big impact in the quarter.
Speaker Change: Yeah, I mean, it's the Australian Integrated Services business has been very strong.
Speaker Change: We expanded our relationship with one one customer in particular.
Speaker Change: and that has flowed through. If you look at the quarterly progression of the services business in Australia and the 10Q, Q1, Q2 of 2024, you'll see a big pickup in revenues and that has continued into Q3 and we expect that to continue going forward.
Speaker Change: Thank you. Bye-bye.
Speaker Change: You know, we had come into this year...
Speaker Change: I'll speak if you'll let me I'll speak in Australian dollars we were expecting kind of
Speaker Change: $320 million Australian of top line, I think we'll exceed that significantly this year in terms of the integrated services in Australia, and that's up from approximately $240 million Australian of top line services revenue last year.
Speaker Change: How much of that is just increasing activity versus you winning the businesses?
Speaker Change: It's largely winning when it works.
Speaker Change: Certainly we've seen occupancy pick up at customer villages that we had already operated, but a big chunk of it is winning work, the vast majority.
Speaker Change: Fantastic.
Speaker Change: Previous quarter you talked about the potential of adding more rooms in Australia with the three villages that were full. Any update on that?
Speaker Change: continue to pursue it.
Speaker Change: It's never a straight line from point A to point B, unfortunately, so we have been hoped, we've been optimistic that we could.
Speaker Change: have executed on that, but we need the customer commitments to back it, and there have been
Speaker Change: some shifting needs for the customers and as a result we've been able to satisfy those needs at other locations and have not needed to expand yet, but it's still a possibility and just to remind everyone that was order of magnitude of about 100 brews in the Bowen Basin.
Speaker Change: I'm sorry. I'm sorry. I'm sorry. I'm sorry.
Speaker Change: The last one for me, just the DMOB costs, were there any this quarter or is that 1 million that was going to be this quarter pushing it to 4Q?
Speaker Change: We only had about 400,000 in the third quarter with about a million left in the fourth quarter and that should be the final email costs.
Speaker Change: Thank you. Thank you. Thank you.
Speaker Change: Thanks, Bradley.
Speaker Change: Thank you. Thank you. Our next question comes from the line of Dave Storms with Stonegate. Please proceed with your question.
Dave Storms: Good morning.
Dave Storms: I'm just hoping I could circle back on some of the integrated services.
Dave Storms: and a lot of stuff she was talking about.
Dave Storms: When you think about bringing current customers into the fold, how much more runway?
Dave Storms: Do you see there?
Dave Storms: Well, the team, we have put together a goal to get $500 million Australian by 2027 to RIND everyone. We entered into the integrated services business in kind of
Speaker Change: materially when we acquired a business in 2019. Back then, for a half year, we did about $40 million Australian of top-line. Last year we did $240 million, this year we should be close to $340 million. And, you know, it's really grown.
Speaker Change: from that business.
Speaker Change: I would say that in Canada pricing is well all the operators are looking to cut costs so it's always a battle.
Speaker Change: I think the team did a good job where we were able to maintain pricing, maintain exclusivity, and it was a good contract outcome with the mainstay customer of ours. I think it comes back to several things.
Speaker Change: It is done.
Speaker Change: operating safely, keeping their people safe. It is delivering on service.
Speaker Change: and, of course, it is meeting their price expectations.
Speaker Change: With our portfolio of locations in Canada, we can service the vast majority of the northern players in the legacy oil sands region north of Fort McMurray.
Speaker Change: Understood, thank you. And then just one more and you know similar to an earlier question, maybe a little hard to quantify, but is there any sense on what catch-up and Q4 could look like now that the wildfires are you know kind of in the rearview?
Speaker Change: Please see the complete disclaimer at https://sites.google.com
Speaker Change: Well, it's a little difficult, I'll be honest, because...
Speaker Change: The fourth quarter will always have holiday downtime, right? I mean, it's not surprising that it's a level of headcount for our customers starts to decline in November and December.
Speaker Change: So as we look out at kind of
Speaker Change: activity levels for Canada.
Speaker Change: It'll be massified by the holiday downtime, so you won't really see a pickup inocumancy but it will be
because of the holiday downtime.
Speaker Change: seasonally it'll just maybe look a little little stronger than normal.
Speaker Change: Yeah, I mean, seasonally, it will, if we look light for light...
Speaker Change: It will largely depend on what we have like-for-like is the loss of McClellan, 23 and 24 on a year-over-year basis, but on like-for-like, fourth quarter will be in line with last year.
Speaker Change: Understood. That's very helpful. Thank you for taking my questions and good luck in the fourth quarter.
Speaker Change: Thank you.
Speaker Change: Thank you. Once again, as a reminder, if you would like to ask a question, please press star 1 on your telephone keypad.
Speaker Change: Our next question...
comes from the line of Shawn Mitchell.
Speaker Change: with Daniel Energy Partners. Please proceed with your
Speaker Change: Thank you. Thank you.
Speaker Change: and Regan Nielsen.
Good morning, Bradley and team. Thanks for taking my question. Bradley, when you talk about Australia getting to $500 million in 2027, does that assume some M&A or is that all organic internal growth?
Bradley Dodson: Well, right now...
Bradley Dodson: We have an opportunity set over the next three years that if
Bradley Dodson: All right, so we can't hit on all of them or won't hit on all of them, but there's a pathway of known opportunities For the integrated services business that will be let out for bid That we have an opportunity to bid on and to win and so it does not include M&A
Okay, that's helpful. And then second, when you talked a little bit about growth opportunities outside of energy in Australia, are there opportunities outside of energy in Canada and or the U.S. that you might be looking at over the next kind of year or two?
Speaker Change: Yeah, I mean, I would say right now the vast majority are still resources related, as opposed to currently energy, and there are opportunities there, and we'll continue to pursue those. Longer term, we would look outside of resources.
Bradley Dodson: and I'd say that still weighs off.
Bradley Dodson: Okay.
Speaker Change: Thank you. Bye.
Speaker Change: At the end of the day, Sean, what we think we do well is take care of people, and that has applications outside of what we do right now.
Speaker Change: Yeah, I agree
Speaker Change: Thanks for taking my questions.
Speaker Change: Thank you, Sean.
Speaker Change: Thank you. Our next question is a follow-up from Steven Gengaro with Stiefel. Please proceed with your question.
Thanks. Thanks for taking the follow-up.
Speaker Change: So, the last year plus in Canada, the margins have been...
jumping around because of some, you know...
DMOB costs and the wildfires, etc. When we think about
Speaker Change: 25 as far as Canadian margins are concerned.
Should we be thinking about going back to like a normal seasonal pattern and kind of a mid-teens margin or is there Something I'm missing there because I'm actually also having trouble triangulating to the 90 million plus number
Speaker Change: I think right now we need to complete the budgeting process, but I think margins may have an upward bias, but they won't have a significant upward bias yet. We need to build back the top line, let's be honest.
Okay, good. Now, that's helpful. I'll put it back, but thanks for the details.
Speaker Change: Thank you.
Speaker Change: Thank you. We have reached the end of our question and answer session. I'd now like to turn the call back over to Mr. Dodson for any closing remarks.
Bradley Dodson: Thank You Michelle and thank you all for joining the call we appreciate your interest in your questions and we look forward to speaking with you on the fourth quarter earnings call which we expect to be in February of 2025
Thank you. This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation and have a wonderful day.