Q3 2024 Limbach Holdings Inc Earnings Call
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Speaker Change: Good morning and welcome to the third quarter 2024, Limbaugh Colvings, earnings conference call on Webcast. I'll participate in listening only mode.
Speaker Change: should you need assistance, please signal a conference specialist for pressing the star key followed by zero. I will now turn the conference over to your host, Julie Kegley of Financial Profiles. You may now begin.
Julie Kegley: Good morning and thank you for joining us today to discuss Limbaugh Coldings financial results for the third quarter 2024.
Julie Kegley: Yesterday, Limbach issued its earnings release and filed its Form 10-Q for the period ended September 30, 2024. Both documents, as well as an updated investor presentation, are available on the Investor Relations section of the company's website at limbachinc.com.
Julie Kegley: Management may refer to select slides during today's call and encourages investors to review the presentation in its entirety.
Julie Kegley: With me on today's call are Michael McCann, President and Chief Executive Officer, and Jayme Brooks, Executive Vice President and Chief Financial Officer. We will begin with prepared remarks and then open the call to questions.
Julie Kegley: Before we begin, I would like to remind you that today's comments will include forward-looking statements under federal securities laws.
Julie Kegley: Forward-looking statements are identified by words such as will, be, intend, believe, expect, anticipate, or other comparable words and phrases. Statements that are not historical facts, such as statements about expected financial performance, are also forward-looking statements.
Julie Kegley: Actual results may differ materially from those contemplated by such forward-looking statements.
Julie Kegley: A discussion of the factors that could cause a material difference in the company's results compared to these forward-looking statements is contained in LIMBOX SEC filings, including reports on Form 10-K and 10-Q.
Julie Kegley: Please note that on today's call, we will be referring to non-GAAP measures. You can find the reconciliation of these non-GAAP measures to the most directly comparable GAAP measures in our third quarter earnings release and in our investor presentation, both of which can be found on the Limbach Investor Relations website and have been furnished in the Form 8K filed with the SEC. With that, I will now turn the call over to President and CEO, Mike McCann.
Mike McCann: Good morning and welcome to our stockholders, analysts, and interested investors. We appreciate you joining us today.
Mike McCann: Execution has been the key to our success. This was evident in our third quarter results, with each part of our three-pillar strategy contributing to our strong financial performance for Q3. Our strategy of shifting revenue to Owner Direct Relationships, or ODR, involving our offerings and scaling the business through acquisitions had led to EBITDA growth and margin expansion.
Julie Kegley: We're proud of what we have achieved and continue to have opportunities to grow organically, to add high margin offerings, and to make acquisitions that expand our footprint while expanding and deepening our customer relationships.
Julie Kegley: The first pillar of our strategies are shift ODR.
Julie Kegley: Here to date, 67% of our revenue and 77% of our gross profit is from ODR.
Julie Kegley: We continue to be on target to reach 65% to 70% of revenue from ODR for fiscal year 2024. Our second pillar is focused on evolved offerings and margin expansion, which positively impacts not only our organic growth, but also the profitability of those companies that we acquire.
Julie Kegley: Our three-year strategy to evolve our offerings is well underway.
Julie Kegley: Our focus for 2024 has been on offerings that complement the operational budgets of the building owners, which includes on-demand services, critical system repairs, data-driven solutions, and general maintenance and operations.
Julie Kegley: To do this, we've invested in account managers who gain a deep knowledge of our customers' facilities so that we may immediately react to our customers' needs. Being on-site and gaining the understanding of these facilities then gives us the opportunity to work with our customers proactively develop their long-term capital plans.
Julie Kegley: Assisting our customers with their long-term capital planning is our focus going to 2025. We will strive to create additional value by providing MAP capital project solutions along with equipment upgrades and professional consultive services.
Julie Kegley: Another offering investment we made during the first half of the year was four million dollars in rental equipment for indoor climate control, more specifically air-cooled chillers and air handling units to support our customers needs.
Julie Kegley: We see an opportunity to grow this offering due to the demand for large temporary use air chillers, and to meet this demand, over the next 12 months, we are planning to invest an additional $4 million to purchase more equipment and add personnel. This is a scalable offering with high returns and invested capital.
Julie Kegley: Our third pillar is scaling through acquisitions. We're creating value through acquisitions by acquiring businesses for single-digit even of multiples, even before taking into account the synergies we expect to achieve through both sales mix shift and scale.
Julie Kegley: With four acquisitions completed, we expect to get a more even deal flow and also be opportunistic when looking at potential transactions that could expand our offerings or include larger businesses in general. While our pipeline for acquisitions activity is robust, we are disciplined in our rigorous
Julie Kegley: diligence process and our careful analysis of cultural compatibility between our organization and the target companies. We want the right fit at the right price.
Julie Kegley: Our acquisition in early September of Kent Island Mechanical is a great example of how a tuck-in acquisition complements our organic growth and creates value for our stockholders. As soon as we close the deal, we begin integrating Kent Island into our local operation and the LIMBOC platform.
Julie Kegley: Within weeks of the announcement, our local leaders from both companies have met with a lot of key customers in the Washington, D.C. metro area. By combining the capabilities of Kent Island and the local Limbach office, we strengthened our relationship with all of our key owner accounts in that market.
Julie Kegley: For example, one key account is a joint health care customer.
Julie Kegley: Kent Island's relationship was with the hospital staff who procured the larger capital project, while our branch relationship rested with the facility director.
Julie Kegley: We were proactive in getting in front of that customer and positioning LIMBOC as their total solutions provider, and as a result, we were able to pick up market share. We believe this process is repeatable in many of the markets we serve. Including contingent earnouts, we paid approximately five times the 2025 projected EBITDA for the Kent Island business.
Julie Kegley: Post deal close we believe we have created a value creation process that we've been perfecting over the past several transactions. A long-term objective is to buy companies at a very accretive valuation and over a three year period increase the profitability of that asset.
Julie Kegley: Our value creation process is built around creating a common operating and strategic platform across all our locations. After a three-year period post-acquisition, we want the acquired entity to be performing and operating similar to our organic location.
Julie Kegley: Initially we apply lessons learned from a risk management perspective and benchmark their gross profit against what we see with our other business locations. Our model is built around each location focusing on their local niche and passing on work that is outside of their vertical markets.
Julie Kegley: Our go-to-market strategy is built around expanding relationship with customers and industries that have mission-critical infrastructure that cannot fail.
Julie Kegley: Many businesses we look at have a divisional model with several P&L departments that act independently.
Julie Kegley: In deals that we've completed, we quickly realized the best way to unlock value with these new organizations is to remote or hire a sales manager.
Julie Kegley: who coordinates the sales effort to bring the divisions back together. This role determines and researches what accounts we deploy our on-site account managers. These account managers are assigned to the top five accounts of newly acquired companies and gain detailed knowledge of the facilities, becoming the go-to problem solvers for building owners.
Julie Kegley: We have seen that over time, as we continue to dedicate these resources, our customers will give us additional revenue opportunities. This is our goal, to provide bundled solutions that combine our capabilities.
Julie Kegley: One example of this is a healthcare customer in the Boston area. Over the past two years, we have expanded our relationship by performing various maintenance type and project services.
Julie Kegley: We recently signed a bundled service contract that goes well beyond traditional maintenance to include engineering services for capital planning, maintenance for several systems, staff augmentation, and proactive analysis. Over the next 12 months, we anticipate creating more bundled offerings like this with additional customers.
Julie Kegley: We believe our customer relationships can expand to a broader scale. We believe we can transition our local relationships into national customers. And we're starting to see some traction on this initiative.
Julie Kegley: Two customers have asked us to expand our reach, one in the data center vertical and the other in healthcare.
Julie Kegley: Our local presence combined with a common strategic platform will enable us to support these customers in multiple locations. Our suite of professional services, coupled with our acquisition program, allows us over time to become an enterprise solutions provider for these national customers.
Julie Kegley: Turning to our outlook, based on our strong performance for the first nine months of the year, we now expect total revenue to be in the range of $520 million to $540 million. This compares to our previous guidance of $515 million to $535 million.
Julie Kegley: Adjusted EBIT is now expected to be in a range of 60 to 63 million up from 55 to 58 million. We expect full year gross margin to be 26 to 27 percent compared to previous estimates of 24 to 26 percent.
Julie Kegley: Jayme and I have had many investors ask us this year what our growth rate looks like going forward. We haven't provided long-term guidance.
Julie Kegley: because we've been in a state of transition as we've moved away from General Contract Relationships, or GCR, business toward owner-direct business. In 2024, we've made tremendous progress over the midship.
Julie Kegley: We've also transformed how we go to market through account manager-based sales and customer engagement. Focus on the top customers in each market.
Julie Kegley: We would like to establish a track record with this new model before we give more specific guidance on anticipated future growth rates.
Julie Kegley: What I can tell you is that we believe over time we can expand overall gross margins similar to other building system solutions firms, at the same time growing consolidated revenue. The consolidated revenue growth is a combination of organic growth and acquisitions, and we expect to see top line revenue growth starting in 2025.
Speaker Change: I'd like now to turn the call over to Jayme for our financial report.
Jayme Brooks: Thanks, Mike. Our third quarter 2024 earnings press release informed PENQ, which provides comprehensive details of our financial results, were filed yesterday and can be found on our website.
Jayme Brooks: I will focus on the highlights from the third quarter. All comparisons are 3Q2024 vs. 3Q2023 unless otherwise noted.
Speaker Change: During the quarter, we delivered total revenue of $133.9 million, representing 4.8% growth from $127.8 million.
Julie Kegley: ODR revenue grew 41.3% to $93 million, while GCR revenue declined 33.9% to $40.9 million. The decline in GCR revenue reflects our intentional selection of higher quality, shorter duration projects.
Julie Kegley: ODR revenue was 69.4% of total revenue, up from 51.5%, while GCR revenue was 30.6%, down from 48.5%.
Speaker Change: As Mike stated, we are executing our mixed-shift strategy and on track with a target of 65 to 70% of revenue coming from our ODR for 2024. The increase in ODR revenue is driving our gross profit and adjusted EBITDA results.
Julie Kegley: Our ODR backlog at quarter end was $209.8 million compared to $147 million at December 31, 2023.
Julie Kegley: DCR backlog was $161.5 million compared to $186.9 million at December 31, 2023.
Julie Kegley: The increase in ODR backlog and the decrease in the GCR backlog are due to our continued focus on accelerating the growth of our higher margin ODR business.
Julie Kegley: Keep in mind that the backlog in the ODR segment does not reflect our complete book of business.
Julie Kegley: Many ODR projects are short-term in nature and can be sold and executed before becoming part of the backlog at the end of the quarter.
Julie Kegley: Total gross profit increased 15.6% to $36.1 million from $31.2 million, reflecting our emphasis on ODR.
Julie Kegley: ODR gross profit comprised 82.1% of the total gross profit dollars, or $29.6 million.
Julie Kegley: ODR gross profit increased $10.4 million, or 53.8%, driven by higher revenue and expanded gross margins of 31.9% versus 29.3%.
Julie Kegley: GCR Gopro's profit decreased by $5.5 million, or 46%, as a result of lower margins and our focus on mix, shift, and selectivity on GCR projects.
Julie Kegley: Total gross margin increased to 27%, up from 24.5%, mainly driven by the mix of higher margin ODR revenue, continuing to be more selective when pursuing GCR work and the impact of acquisitions.
Julie Kegley: SG&A expense increased approximately $2.8 million to $23.7 million from $21 million.
Julie Kegley: As a percentage of revenue, SG&A expense was 17.7%, up from 16.4%.
Julie Kegley: The increase in SG&A expense was primarily driven by a million dollar increase in SG&A expenses from Industrial Air as they were not part of the company during the prior year quarter.
Julie Kegley: a $1.1 million increase in payroll related expenses, $0.5 million increase in stock-based compensation expense, and a $0.4 million increase in professional services fees.
Julie Kegley: For 2024, we are still targeting SG&A expense as a percentage of total revenue to be around 18-19% as we continue to invest in the ODR business to drive growth.
Julie Kegley: Net income was $7.5 million, an increase of 4.1% from $7.2 million in 2023.
Julie Kegley: Diluted earnings per share was $0.62 compared to $0.61 in the same quarter last year.
Julie Kegley: Adjusted EBITDA for the third quarter was $17.3 million, up 27.2% from $13.6 million. And adjusted EBITDA margin was 12.9%, up 227 basis points from 10.7%.
Julie Kegley: Turning to cash flow, we had $4.9 million of cash flow from operating activities compared to $17.2 million. This difference primarily was driven by the timing of changes in working capital.
Julie Kegley: Cash flow from investing activities reflects the $12.7 million net purchase of Kent Island in capital expenditures of about $351,000.
Julie Kegley: Free cash flow for the quarter was $13 million compared to $11.2 million, an increase of 16.6%, which we define as cash flow from operations minus changes in working capital and capital expenditures, excluding our investment in rental equipment, which was minimal in Q3.
Julie Kegley: The free cash flow conversion of adjusted EBITDA was 75.3% in the third quarter versus 82.1% in the third quarter last year.
Julie Kegley: For 2024, we continue to target a free cash flow conversion rate of approximately 70%.
Julie Kegley: excluding our investment in rental equipment.
Julie Kegley: We invested $4 million earlier this year in rental equipment and plan to invest an additional $1 million by the end of this year.
Julie Kegley: With the additional investment in rental equipment this year, we expect total CapEx for 2024 to be approximately $8 million.
Julie Kegley: which includes the expected total investment in rental equipment for 2024 of five million dollars and approximately three million in other CapEx related to the acceleration of our ODR strategy
Julie Kegley: Turning to our balance sheet at the end of Q3, we had $51.2 million in cash and cash equivalents and $10 million borrowed on our revolving credit facility at a weighted average interest rate of 5.72 percent, which reflects our interest rate swap agreement.
Julie Kegley: For the quarter, interest income exceeded interest expense.
Julie Kegley: Our balance sheet remains strong and we believe we are well positioned to support investments and acquisitions to drive continued ODR revenue growth and margin expansion.
Julie Kegley: In keeping with what we think is good housekeeping, capital planning and governance, we took steps to file a Universal Shelf Form S-3 Registration Statement in connection with our quarter end, as our previously filed Form S-3 Registration Statement had expired due to its age.
Julie Kegley: As noted, our current liquidity position remains strong, and we currently have no plans or intentions to conduct any type of registration offering on this Form S-3.
Julie Kegley: This is a routine action to ensure that we provide future funding optionality to the company should we need it in the future.
Julie Kegley: That concludes our prepared remarks. I'll now ask the operator to begin Q&A.
Speaker Change: Thank you. We will now be conducting the question and answer session.
Speaker Change: If you'd like to ask a question today, you may press star 1 from your telephone keypad and a confirmation tone will indicate your line is in the question queue.
Speaker Change: If you would like to withdraw your question, you may press star 2.
Speaker Change: For participants that are using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.
Speaker Change: One moment, please, while we poll for questions.
Speaker Change: Thank you. And our first question is from the line of Rob Brown with Lake Street Capital. Please proceed with your questions.
Rob Brown: Good morning, Mike and Jayme, and congratulations on all the progress.
Speaker Change: Good Morning!
Speaker Change: We have a couple of different ways. One is from a vertical market perspective.
Speaker Change: are three
Speaker Change: Three verticals just to touch upon that continue to have strong demand for data centers.
Speaker Change: healthcare, industrial manufacturing. So each one of those continues to be strong and I think
Speaker Change: You know, for us, it really comes down to our attention and focus to these accounts. We've spent a couple years now really dedicating resources.
Speaker Change: And I would say both from a local and also from a national level, too, to connect relationships, too. So, I think the other thing from an account...
Speaker Change: centric type model that we have is kind of building that durable demand.
Speaker Change: We talked a little bit today in the prepared remarks about how we are...
Speaker Change: at Xtreme Focus and Opex Focus, making sure that we have offerings.
Speaker Change: that really match our overall goal as a company and kind of drive us towards a building system solutions company. So I think it's really a combination of being on the mission-critical accounts where they have to spend, they have to make repairs, combined with vertical markets and also kind of building a durable demand.
Speaker Change: Okay, great. Thank you. And then on the ODR, you talked pretty extensively in the comments about the service model that you're shifting to, but maybe help characterize where you're at in terms of getting that building services.
Speaker Change: Solution model in place and how much is there to go and just a sense of kind of where you're at that evolution
Speaker Change: Yeah, and that's really the second pillar, which has really evolved to offering striving margins. So we still feel like we're very early on that. A lot of our margin pickup has really come from our mix shift.
Speaker Change: But we really have a three-year plan to...
Speaker Change: you know, introduce offerings that really drive...
Speaker Change: drive us from a typical E&C company towards a building systems solutions firm, which with durable demand, consistent customers, and really this this past year 24 was about OPEX focus. You know, we've got these onsite account managers. How can we capture as much market share? How can we help staff augment our customers?
Speaker Change: really get to know these facilities. And this really sets us up into really, I think going to 25 to 26, it really comes down to building their long-term capital plan together.
Speaker Change: Whether those suite of services are professional consultative services, program management, engineering services, infrastructure. Right now, I would tell you just our staff, they're thinking about how can we plan with our customers for the next three to five years, which of course.
Speaker Change: allows us to, again, get to know the facility, but also helps us from a predictability from a revenue perspective as well, too. So, we still view it as a model where we have, it's a combination of OPEX and CAPEX.
Speaker Change: But it's really kind of it continues to be a building block approach, and I still we're very early We see we believe there's tons of opportunity from that perspective as well, too
Speaker Change: Okay, and kind of moving to M&A, the Kent Island looked like a pretty good acquisition on your strategy and you've done a number of these. What's the, how's the pipeline look and expect more Kent Islands or do we look to maybe a little bit different mix as you start to continue to do M&A?
Speaker Change: So Kent Island's our fourth deal that we've done since November of 21 and our We wanted to be our goal and our goal continues to be that we want to make sure we're very careful We're very measured in our approach and we're learning from each deal
Speaker Change: Our acquisition approach isn't just adding on a bunch of companies. Our goal is to integrate them both from a systems perspective, but also integrate them from a strategic platform perspective. So we've learned a lot over these four deals, and every one of them we pick up things.
Speaker Change: And that's why I think even in, you know, in a prepared remarks, we really got into a lot about our value creation model. We are looking for three things. Cultural fit.
Speaker Change: Do they have something special in their vertical market?
Speaker Change: It's tremendously important because there are changes that we're going to make together with that company. How can we make 1 plus 1 equal 3, 4, or 5 is ultimately our goal.
Speaker Change: And then we've kind of learned over these four deals, like what things can we apply and what times. We want to take what the acquisition does really well, but we also want to apply what we've learned from the standard platform as well, too. So we've got a robust pipeline. We're really.
Speaker Change: After learning through these four deals, we really want to apply those for future deals going forward. Again, we're going to be measured, but we're hoping to have a much more even deal flow and a steadier pace from acquisitions going forward.
Speaker Change: Thank you.
Speaker Change: Okay, thank you. I'll turn it over.
Speaker Change: Our next question is from the line of Jerry Sweeney with Roth Capital. Please receive your question.
Jerry Sweeney: Hey, good morning, Jayme and Mike. Thanks for taking my call.
Speaker Change: Good morning.
Jerry Sweeney: A couple questions, probably similar to Rob, but slightly different. On the growth side, how much is growth coming from existing customers versus finding new ones?
Jerry Sweeney: even taking that a step further, you know,
Speaker Change: Well, let's just leave it there, and then.
Speaker Change: Boop
Speaker Change: I'll follow up.
Speaker Change: Yeah, I'll use two different examples to categorize that. I mean, the short answer is coming a lot from our existing customers. So two different ways that we're gaining market share. One is, we have lots of customers that
Speaker Change: have a local and national type field. I mean, the healthcare market's a perfect example of this. So we've invested in a professional service type office in the Nashville area, which is really focused on getting to the C-suite decision makers from that standpoint.
Speaker Change: At the same time, we've been working the local level.
Speaker Change: with a lot of these health care providers. So it's a combination of kind of putting a local and national approach together.
Speaker Change: I talked a lot about the standard platform from an acquisition perspective. I think one thing that makes us really special is we're working together on these accounts and it's a very much a collaborative approach. So if we're in a local market and...
Speaker Change: They, you know, we're trying to gain market share. Well, we have influence at a different level that really helps us as well, too. So that's the big piece. I think data center, as well as the health care.
Speaker Change: From a local market share perspective, and again, I think planning going to next year and the prepared markets, I kind of used this example that we had a healthcare customer and we were offering them four or five different things.
Speaker Change: We've been at it with them, I'd say, for probably three years, building a relationship. We have an on-site account manager. But now it's a question of how can we bundle these offerings together. We don't go to market where we have...
Speaker Change: five different salespeople approach the customer, we go to the market where we have that on-site account manager delivering an overall business solution to them.
Speaker Change: We are able to bundle capital planning, maintenance contract, staff augmentation, proactive analysis all into it, an overall bundle. That's going to allow us.
Speaker Change: I think even going forward with more of our customers, kind of to combine the offerings and to pick up market share. And I think do that in a smart, collaborative approach. So it's really two different pieces.
Speaker Change: Got it. If you look at your top, say, 10 or 15 customers, how much market share or wallet share do you think you have with them?
Speaker Change: or even say, you know, what inning you're in with them in terms of.
Speaker Change: penetration.
Speaker Change: Thank you.
Speaker Change: We're very early. I mean, one or two ending, I would say. First or second ending at this point. And what it really comes down to is...
Speaker Change: We are very careful. We've culled down our customer list, you know, the customers that we're looking for. It's mission critical. They can't afford downtime. So I always use the example, if they have a system that goes down on Saturday, they can't wait till Monday. So that's a big piece of it. The second piece of it is, do they have enough scale?
Speaker Change: And are they looking to really invest back into their buildings? So most of the time we end up with customers that have a lot of scale, that have a lot of opportunity, and we are chipping away locally.
Speaker Change: But I think, kind of as I answered before, like this national and local approach, as we buy companies...
Speaker Change: as we continue to gain knowledge of the account, we're gonna be able to kind of, I think we're gonna be able to pick up market share from that perspective and basically take advantage of the investment that we've had too. So I would say very early innings, and that's really because of purpose, because we're selecting accounts that have a lot of future scale.
Speaker Change: I mean, I would take that as a positive, being early innings.
Speaker Change: I'm going to jump around a little bit. Acquisitions. Understand, you know, Ken Island, etc. But would you ever look at maybe going...
Speaker Change: A little different angle, maybe looking for a company with some specialty services that you could augment.
Speaker Change: your portfolio of services to companies.
Speaker Change: Absolutely. I mean if we can, ideally it would be great if we could get something that brings us, you know, gives us market share.
Speaker Change: gets us a location and has...
Speaker Change: has services or offerings that we don't have, that is absolutely a win. I mean, we've had that a little bit with the industrial air acquisition that we did in November of 2023. They had an equipment product line that they really went to market as an installed solution. Then it's a triple win at that point. You know, customers...
Speaker Change: You've got an offering, and then you've got a location. Absolutely, any opportunity that we can to kind of put those together. I mean, our objective from an acquisition perspective is multi-pronged.
Speaker Change: And that really, I think, is a reflection of the opportunity.
Speaker Change: Not only from a, if you look at our geographic footprint, there's lots of opportunity, but all the, our wish list of things that we'd like to do.
Speaker Change: any way we can combine those. So we're always out there looking. We have a really robust pipeline and trying to find those special deals.
Speaker Change: Got it. And then, final question, gross margin. I went out, I was going to go gross margin second, but that was it.
Speaker Change: position.
Speaker Change: more pertinent. But gross margins, can you give a little bit more detail maybe on some of the evolved offerings you're looking at? Obviously, you have the rentals, the chillers, but what else we can look for? And obviously, gross margins have been ticking up on the ODR side, you know, into well, you know, well above 30%, you know, 31 and a half or so.
Speaker Change: and just curious as how sustainable that is or were there some one-time projects or opportunities that sort of drove it in the short term?
Speaker Change: Yeah, from a long-term outlook, we think there's lots of opportunity from a margin perspective. We'd love to get to the point where our margins are up over a period of time, but over to our OEM.
Speaker Change: OEM type companies. But again, this year was about OPEX. So it's about rentals, it's about the onsite account managers. We're still working through data-driven solutions from that perspective. How can we improve our maintenance offerings? So sometimes it's a it's a question of strengthening that. I think looking into next year,
Speaker Change: professional services, which we are starting. We've kind of been at it for a little bit already, but how can we combine those together to really build that capital plan over a period of time? So we still feel like we're...
Speaker Change: You know, we've got a three-year plan, it's ambitious, but I think at the end of that we feel comfortable that there's lots of opportunity from a margin perspective.
Speaker Change: Thank you. Appreciate it. I'll jump back in line.
Speaker Change: Thank you.
Speaker Change: Thank you. Bye.
Speaker Change: Thank you.
Speaker Change: At this time, I'll turn the floor back to Mike McCann for closing remarks.
Mike McCann: Thank you. We will be participating in the UBS Global Industries and Transportation Conference on December 3rd and 4th. If you'd like to arrange a meeting with us during the conference, please contact UBS conference organizers.
Mike McCann: Thank you all for joining us today and for your interest in LIMBOK. If you have any additional questions, please reach out to Julie Kegley at Financial Profiles. Thank you and I hope you have a great holiday season.