Q3 2025 Apogee Enterprises Inc Earnings Call
Which now reflects 1% growth in the overall market with continued declines in interest rate sensitive verticals and growth in institutional verticals that also benefit from government funding.
We continue to take the view that the downturn in construction will be short and shallow.
Most likely we will continue to see pressure through the first half of our next fiscal year, primarily in glass and framing.
Services will be executing a backlog that has been secured for much of our fiscal 'twenty six.
Regardless with what happens in the overall market our goal remains to outperform the industry.
Over the past several years, we built a much stronger operating foundation driving sustainable improvements across our business and our team has demonstrated that we can deliver margin expansion and earnings growth, even without meaningful market growth.
We are also now executing acquisitions as a growth lever to further enhance and transform our business, providing us with exposure to higher growth areas and higher margins.
As we move forward, we intend to build on this foundation to drive long term profitable growth.
We will continue to diversify our sales mix focusing on the best market opportunities with them.
Our architectural segment this means continuing to shift towards sectors of the market with higher growth rates.
Also importantly, we will leverage the capabilities of UW solutions to further expand into into attractive market adjacencies.
We are seeing positive momentum in industrial flooring, which gives us significant exposure to R&R. In addition to new warehouse and distribution center opportunities overall.
We will continue to look for acquisition opportunities that accelerate our growth and further diversify our business mix.
We will do this while maintaining our focus on productivity execution and cost management.
These have been the foundation of our improvements over the past few years and we continue to focus on these areas to ensure we perform at a high level.
Fiscal 'twenty five marks the end of the three year plan, we shared in November of calendar 'twenty one.
As you would expect our leadership team is working to build the next evolution of our strategy. The new plan will leverage our strong operational foundation, a place a bigger emphasis on driving growth, while continuing to expand our margin profile.
We're still early in our process, but I am encouraged by the opportunities we see to position the company for future growth in both revenue and earnings.
We plan to share additional details with you in the new fiscal year with that I'll turn it over to Matt.
Matt: Thanks, Todd and good morning, everyone I'll start with a review of the results for the quarter and our updated outlook before I finish with some preliminary thoughts on how fiscal 2000 <unk> shaping up.
Matt: Starting with the consolidated results for the third quarter net sales were $341 million and included $8 $8 million of inorganic revenue from UW solutions.
Matt: On an organic basis net sales declined approximately 2% primarily driven by lower volume in glass, partially offset by continued double digit growth in services.
Matt: Adjusted operating margin declined 70 basis points, driven by unfavorable sales leverage from lower volume, a less favorable product mix and higher incentive compensation in lease expense.
Matt: These drivers were partially offset by a more favorable mix of projects and services and lower insurance related costs.
Matt: Adjusted diluted EPS was down 3% coming in at $1 19.
Matt: Primarily driven by lower adjusted operating income.
Matt: Turning to the segment results framing net sales declined approximately 1% to $138 million, primarily reflecting a less favorable product mix.
Matt: Volume in framing increased during the quarter and the rate of sales decline moderated significantly compared to the first half of the fiscal year adjusted.
Matt: Operating margin in framing declined to nine 8%, reflecting a less favorable product mix, along with higher costs for freight and compensation.
Matt: As expected net sales in glass declined this quarter as soft end market demand impacted volume.
Matt: As we previously discussed glass has a high variable contribution rate, making margin rate sensitive to changes in volume and pricing.
Matt: The lower volume levels. This quarter were the main driver of the decline in adjusted operating margin.
Matt: Services delivered its third straight quarter of double digit net sales growth with net sales growing 11%.
Matt: Adjusted operating margin also continued to improve coming in at eight 6%, making this the fourth straight quarter of year over year margin expansion for services.
Matt: Services backlog ended the quarter at $742 million compared to $792 million last quarter and was 4% lower than a year ago.
Matt: Overall backlog levels remain healthy with nearly two years of sales and backlog.
Matt: The declining trend over the past two quarters reflects the softness we've seen in the overall construction market.
Matt: <unk> sales grew 28% to $33 $2 million, primarily due to inorganic sales from UW solutions.
Matt: Ganic net sales declined 6% as we continued to see lower volumes in the retail channel.
Matt: Adjusted operating margin declined to 18, 6%, reflecting unfavorable leverage from lower volume and the legacy <unk> business and the dilutive margin impact from UW solutions.
Matt: Corporate and other expenses increased to $8 $8 million, which.
Matt: <unk> $4 $5 million of costs related to the UW solutions acquisition.
Matt: This was partially offset by lower incentive compensation costs and lower insurance related expenses.
Matt: Turning to cash flow and the balance sheet cash from operations remained strong but was below last year's record level, we generated $31 million of cash from operations in the quarter, bringing our year to date total to $95 million.
Matt: During the quarter, we executed our $250 million delayed draw term loan to fund the acquisition of UW solutions.
We finished the quarter with a consolidated leverage ratio of one three times and we expect to pay down debt in the coming quarters further strengthening our financial position.
Matt: We continue to have significant capacity available on our credit facility, giving us ample dry powder for further value creating capital deployment.
Matt: Yes.
Matt: Moving moving to our outlook for the full fiscal year, we now expect net sales to decline by approximately 5%.
Matt: This includes the impact of approximately $30 million of incremental net sales from the UW solutions acquisition as well as lower than expected volume in the fourth quarter, primarily in the framing and glass segments.
Matt: Also as a reminder, the fourth quarter, we will have the comparative impact of the incremental 50 <unk> week of activity in fiscal 'twenty four.
Matt: We continue to expect full year consolidated adjusted operating margin will be approximately 11% primarily driven by the strong margin performance in the first half of the year.
Matt: We expect adjusted operating margin to decline sequentially in the fourth quarter, primarily due to the impact of lower volume and pricing pressure and glass and framing.
Matt: We expect that full year full fiscal year, adjusted operating margins for framing services and lso will be within their respective target ranges with glass, finishing in the high teens for the year.
Matt: We now expect full year adjusted diluted EPS will be at the bottom of our range of $4 90.
Matt: To $5 20.
Matt: This includes approximately <unk> <unk> of dilution related to the <unk> solutions acquisition and the impact of lower than previously expected volume in the fourth quarter and framing and glass.
Matt: We continue to expect an effective tax rate of approximately 24, 5% and now expect full year capital expenditures of $40 million to $45 million.
Matt: Looking ahead to fiscal 'twenty six we are currently working through our budgeting process and expect to provide an outlook for the new fiscal year on our call in April However, I thought it would be helpful to share some initial perspectives on next year.
Matt: We are continuing to monitor economic and market trends and evaluate the potential impacts on our business as.
Matt: As Todd described most forecasts call for continuation of current market trends. However, as more recent forecasts have been released.
Matt: <unk> estimates for calendar 'twenty five have consistently been revised downward.
Matt: We also see more uncertainty in the market with the incoming presidential administration and potential for several significant policy changes that could have wide ranging impact on nonresidential new construction.
Near term market conditions would generally have more impact on the framing and glass segments and less impact on the services segment due to the longer term nature of the projects in backlog.
Matt: In <unk>, we continue to expect that UW solutions will contribute approximately $100 million of net sales and an adjusted EBITDA margin of approximately 20% and will be accretive to adjusted diluted EPS.
Matt: We also see an opportunity for organic growth in lso as retail channel volumes recover and as we pursue growth in adjacent markets leveraging the capacity investments we've made.
Matt: From an adjusted operating margin perspective based on sustainable performance improvements, we've achieved and a continued focus on executing our strategy, we see an opportunity for all four segments to be within their target adjusted operating margin ranges for next year.
Matt: We have however identified some potential fiscal 'twenty six operating income headwinds that we expect to put pressure on EPS growth.
Matt: <unk> margins are expected to moderate from the high teens in fiscal 'twenty five to be within the segments long term range of 10% to 15% in fiscal 'twenty six.
Matt: Additionally in fiscal 'twenty five we have benefited from lower insurance related costs and lower short term incentive costs that are expected to be headwinds in fiscal 'twenty six.
We are currently working through action plans to try to offset these items as well as prepare for other potential market headwinds.
Matt: Finally, due to the strong results we posted in the first half of fiscal 'twenty five we expect the year over year comparisons to be most challenged in the first half of fiscal 'twenty six.
Although we are facing some fiscal 'twenty six headwinds I am excited about the potential of our business. The third quarter delivered solid results and we are focused on managing through current challenges in the market, while balancing strategic investments that will enable future growth.
Matt: The acquisition of UW solutions is expected to provide expanded opportunities for growth and we continue to look for additional organic and inorganic investments to accelerate our strategy.
Matt: With that I'll turn it back over to Ty for some concluding remarks, thanks, Matt Let me close by recognizing our team for continuing to build momentum as we execute our strategy.
Matt: Also want to thank everyone. That's been involved with the UW solutions acquisition and the great progress we've made to date with that business.
Matt: The work we've done over the past year puts the company in a solid position we've strengthened our operating foundation built a more competitive cost structure increased our mix of differentiated products and services.
Matt: And made investments to enable future growth.
Matt: Done this while continuing to generate significant free cash flow and maintaining a healthy balance sheet, allowing us to deploy further capital to support our strategy and drive shareholder value.
Matt: With that we're ready to take your questions.
Matt: Thank you.
Matt: Reminder, to ask a question. Please press star one on your telephone and wait for your name to be announced to withdraw. Your question. Please press star one again, one moment for questions.
Matt: Our first question comes from Julio Romero with Sidoti <unk> Company you May proceed.
Julio Romero: Thanks, Hey, good morning, guys and happy new year.
Speaker Change: Good morning Julio.
Speaker Change: Hey, good morning can we maybe start with the glass segment, a little bit and.
Speaker Change: Talk a little bit about the end market.
Speaker Change: Weakness you're seeing there.
Speaker Change: How are how our price and mix holding up in the segment and then secondly, how much lower should we should we be modeling.
Speaker Change: <unk> sales dollars and glass relative to <unk>, because I think the guide implies some sequential step down from <unk>.
Speaker Change: Yes.
Speaker Change: Good questions Julio So I think what Youre seeing right now, especially in Q3 in glass is more pressure on volume.
Speaker Change: The price is still kind of holding up but my expectation is price will continue to be under pressure as volume pressure continues.
Speaker Change: We do expect.
Speaker Change: Volume continued to be under pressure in Q4, as we kind of laid out today.
Speaker Change: In terms of how to think about it.
Speaker Change: We talked about volumes coming down in Q4, primarily in framing and glass I'd say most of that is.
Speaker Change: And framing, but there is some in glass thats going to be due to pressure on price and volume and I think just from a run rate perspective.
Speaker Change: I think it's.
Speaker Change: Something in the ballpark of around Q3.
Speaker Change: Maybe a little bit above maybe a little bit below depending how things shake out, but Q3 is probably a good benchmark for Q4.
Got it that's very helpful. So I guess, we should be thinking about.
Speaker Change: A greater step down.
Speaker Change: In the fourth quarter from a from a volume perspective in framing then we should be in glass is that fair.
Speaker Change: Yeah, that's fair and I think the other thing Thats in there too as you know Q4 is got the fiscal or the <unk>.
Speaker Change: The additional week of compare in last year, so that kind of makes it hard to parse that out.
Speaker Change: Specifically, but I think that there'll be more volume pressure in <unk>.
Speaker Change: And then glass.
Speaker Change: Got it very helpful and then.
Speaker Change: Talking about the UW acquisition, a little bit you mentioned some positive momentum in industrial flooring can you expand on that a little bit and then also touch on the other two product lines HD printable materials and engineered coatings, if you could.
Speaker Change: Yes. This is <unk> I'll take that one so if you'll recall industrial flooring was a little less than half of the revenue for that business, which the total business is about $100 million in sales.
Speaker Change: We like all parts of that business, but that was a significant part that really interested us in giving us a differentiated product in our portfolio, giving us exposure to the R&R and not having to rely so much on new construction build out and.
Speaker Change: It really opened the door for us for warehouse distribution, and even manufacturing plants, which other than several thousand dollars per project on an entrant system basis, we didn't have a lot to sell in there. So we werent guiding specific to those product lines, but we have seen I would say better than what we expected in <unk>.
Speaker Change: A pipeline opportunity growth.
Speaker Change: So we do think that that part of the business is really going to drive Uw's solutions.
Speaker Change: Revenue over the next couple of years and when you combine it in with Lso, especially with some of the softness <unk> seen on the retail side, we think that's a positive lift for the business overall and it also has very strong margins.
Speaker Change: Very helpful. If I could sneak one more in here as well.
Speaker Change: So really appreciate the preliminary.
Speaker Change: Fiscal 'twenty six commentary you guys gave.
Speaker Change: Can you also maybe talk to the plans to deploy capital in in fiscal 'twenty six a little bit I think you mentioned.
Speaker Change: A pretty robust M&A pipeline and then also you talked about plans to continue to pay down debt.
Any other commentary you can give there would be helpful. Thank you.
Speaker Change: Yes, Leo so we're ending the quarter here at a one three times ratio. So we've got current capacity that we can still deploy today as he is as you mentioned, we did call out that we will continue to pay down debt, obviously interest costs are high and the faster we can.
Speaker Change: Delever there the less interest expense will have in fiscal 'twenty six but we continue to have our foot on the accelerator from an M&A pipeline perspective, we've got capacity to do a similar sized deal to UW solutions today without further.
Speaker Change: That capacity and so we continue to look at that as.
Speaker Change: Our number one priority for deploying capital.
Speaker Change: So we're looking at other organic investments, we can continue to make internally to drive some growth.
Speaker Change: And we will continue to pay down debt, while those are not available to us, but as those become available we will definitely turn our our capital deployment strategy to driving those kind of organic and inorganic investments.
Speaker Change: Great context, I'll pass it on thanks very much.
Julio Romero: Thanks Julio.
Speaker Change: Thank you.
Speaker Change: Our next question comes from Brent Thielman with D. A Davidson you May proceed.
Brent Thielman: Hi, Thanks, Good morning, guys.
Speaker Change: Brian.
Speaker Change: Excuse me sorry.
Speaker Change: Just on.
Speaker Change: Ty.
Speaker Change: You alluded to some of the forecasts out there by third parties just in terms of the market, but your services business I think it's one of those areas in the company that gives you asked longer lead times gives you. Some visibility are the trends that youre seeing in terms of instrument bookings or quotes.
Anything any other kpis within that business sort of aligning with what some of the third party forecast suggests about the market or are they worse. So they better since the kind of curious what youre seeing in terms of underlying demand trends in that business.
Yes, they would say.
Speaker Change: It's aligning.
Speaker Change: We're not guiding yet.
Speaker Change: For next year, but I think as we look at their backlog and how fiscal 'twenty six is shaping up theyre, probably going to demonstrate that they will outperform the market a little bit.
Speaker Change: Even if they let's say were flat year over year, we would see that as a win with everything else. We're seeing in kind of the core project types.
Speaker Change: That's a little bit of the flight to quality, we're certainly seeing that as the markets have tightened up.
Speaker Change: Theyre getting looks and even second looks on some projects.
Speaker Change: As a result of that does put a little pressure on their on their margin.
Speaker Change: As projects fewer projects Theres more people chasing fewer pieces of the pie. So there is a little bit of pressure there, but <unk> been executing on the productivity side that got them back into that seven to nine and we expect there'll be there'll be operating within that 7% to 9% target range, but overall they would they would also say yes.
Speaker Change: There's there's definitely softness in the market. Some choppiness again with projects looking like they are ready to go and then getting held before they give a firm yes on an award.
Speaker Change: So they're seeing a bit of that choppiness.
Speaker Change: Yes.
Speaker Change: I mean, obviously the glass segment margins kind of reverted back to your target range. This quarter, you have been saying that all along and that should eventually happen.
Speaker Change: Does the profile of new orders, you're seeing them kind of this weaker market.
Speaker Change: Yes give you the confidence to stay within that target range, Matt I know you did allude to this.
Speaker Change: 2026, we expect to do that I guess, just my concern is.
Speaker Change: Some impact to operating leverage here, but with volume down. So if you could just kind of walk through the pieces I guess, what gives you the confidence to stay in that range in glass and what's really tough market.
Speaker Change: <unk> be helpful.
Brent Thielman: Yes, it's good question, Brent, but yet you did pick it up I mean, we are.
Brent Thielman: Seeing a path for glass to be in their target range next year and like you said, they're going to be in the high teens. This year, so even moderating into the middle of that range is significant decline, but going back to your question is we've made real structural change in that business in terms of the.
Brent Thielman: The productivity that we've got the efficiency, we've got and the way we go to market and the type of projects that we try and go after as well as looking at the value add that we can provide so we believe that that 10% is a floor for that business even in a challenge.
Brent Thielman: Yes.
Brent Thielman: Topline year and that we've got.
Brent Thielman: Real structural change built into that business from where it was three or four years ago that we can be within that 10% to 15% range even in a even in a year with got some top line headwinds, yeah, and I would echo that and if you just look at the quarter I mean year over year, a little more than 20% decline in revenues and still delivered.
Brent Thielman: 14% plus on the operating income side on the EBIT side. So I think that is evidence of what matches said if we're looking for proof points within that we do expect the high value add products. We are seeing pressure there so not only volume from a bid perspective, we see coming down.
Brent Thielman: And they really started to feel that this quarter and they can see that in the next couple of quarters, but theyre also seeing pressure of hey, we really wanted to have three or four of those additional high value adds in that insulated glass unit, but we're trying to get this project to get green lighted and we're trying to shape. Some dollars. So maybe we can only afford to pay for two or three of them.
Brent Thielman: High value adds in the ICU, so that effects mix, a little bit, but even with that as we project out.
Brent Thielman: I think they're comfortably looking to stay in that 10% to 15%.
Brent Thielman: And of course that gives upside was as volume turns which we'll see how the calendar year starts to play out here, but if it starts to turn in the second half of calendar 'twenty five then.
Brent Thielman: That starts to show up again from a mix and price standpoint.
Brent Thielman: Yes.
Brent Thielman: Maybe just one last one.
Brent Thielman: A follow on I guess to who you ask question about cap allocation I understand you want to pay down but that maybe maybe timing extent that you want to focus on paying down debt and a great UW I'm sure you're still talking dead.
Brent Thielman: Other potential prospects on the acquisition side out there could you just kind of.
Brent Thielman: Give us some flavor for what you what you might be looking for in.
Brent Thielman: Since the acquisition pipeline active.
Brent Thielman: Yes.
Brent Thielman: Acquisition pipeline is very active I think that market is also heating up a lot of folks sat on the sidelines waiting for interest rates to kind of settle and hoping to have more bidders and processes. So we're seeing activity pick up on that.
Brent Thielman: That will be a focus for us, especially if we think let's say <unk> right and it's kind of a flat year for non res and that's still getting a lift from manufacturing plant.
Brent Thielman: And warehouse build outs, which are still forecasted to be healthy growth rates.
So we will continue to focus there.
Brent Thielman: Strategically like we said it has to fit within our capabilities. Both from a think about it from a technology manufacturing process standpoint, and then we're looking to add more differentiated products like we got with UW solutions.
Brent Thielman: That tends to also bring higher margin rates.
Brent Thielman: And then the rest of our businesses so we'll be opportunistic.
Brent Thielman: We will use that strategic lens, coupled with we want accretive margins. We wanted to continue to help lift our margin profile, but theres a growth emphasis there too we are looking to acquire things.
Brent Thielman: That are going to open up higher growth space for us as well.
Brent Thielman: Okay very good thanks for taking my questions.
Speaker Change: Thanks, Brian.
Brent Thielman: Thank you.
Speaker Change: Our next question comes from Jon Braatz with case TCA you May proceed.
Jon Braatz: Good morning, everyone.
Speaker Change: Good morning, John Hopefully you are digging out alright.
John: I did that yesterday.
Speaker Change: I'm done for the year hopefully.
Speaker Change: Hi, Matt and Matt.
Speaker Change: A little bit about.
Speaker Change: <unk>.
Industrial flooring market for UW and I guess when you when you speak to the speak to the group there and you think about it what kind of sensitivity Mike that end market have to to higher interest rates, maybe a slower economy and maybe some of the.
Speaker Change: The transition of the administration transition is is there any concern that that market could weaken a little bit.
Speaker Change: I think when we see that remember this flooring is really driven not only by putting mezzanine floors in existing facilities. We do have some where it gets specced on first floor build out but it's the robotics component. So there is a benefit there that.
Speaker Change: Frankly, even with tight labor et cetera that that creates an opportunity where people are looking to put robotics into their facilities to address some of the labor challenges or labor cost issues.
Speaker Change: It's also nice because it's about 80% R&R so its a retrofit.
Speaker Change: Of an existing facility, it's not relying on new plant or new warehouse build out obviously, if consumer spending is picking up and so the Walmart the amazons et cetera.
Speaker Change: Growth and want to continue to add too.
Speaker Change: Existing or build new facilities, that's a that's a plus.
But otherwise I think that business.
Speaker Change: <unk> for the next few years relatively insulated from that yes, there could be years, where they get a couple of huge wins across a couple of sites that give them a big lift that gives us of comps in a future year, but we like that business a lot. We're investing in that we're going to continue to look at other areas, we can add into the portfolio.
It gives us that type of exposure, Okay. Matt you mentioned, a big win how big is a big win.
Speaker Change: Moving to move the needle.
Speaker Change: Group.
Speaker Change: Yes, John this is Ty.
Speaker Change: Don't get into those specifics.
Speaker Change: But again that business.
Speaker Change: A little less than half of UW solutions.
Speaker Change: It is a lot of smaller projects think hundreds of thousands however, they've got some large they have some large accounts where someone could decide we're putting mezzanine in 10 facilities.
Speaker Change: And we're doing robotics and everyone until now you are into 1 million plus type of opportunity, but most of that business is.
Speaker Change: Smaller dollar amount again, we like that too right, which you don't have to rely on a huge project win like we would have to see in services or even glass to move the needle for them. Okay, Great and then last secondly.
Speaker Change: Hi.
Speaker Change: <unk> been investing making some investments in lso in adjacent markets and.
Speaker Change: What kind of progress are you seeing in that regard.
Speaker Change: Can you give us a little update.
Speaker Change: Yeah, I would say, we're seeing good progress so in terms of building that opportunity pipeline getting a couple of.
Speaker Change: Projects across the finish line, we've seen those positives obviously, we'd like more it's getting drowned out a little bit because of the retail side has been softer for them.
Speaker Change: And.
Speaker Change: That's kind of hiding some of the gains that they're getting there, but they've got good momentum that.
Speaker Change: We'll probably be putting a lot of attention on that business overall in our fiscal 'twenty six.
Speaker Change: One of the things I called out we see a lot of growth organic growth opportunities in that legacy lso business as well in fiscal 'twenty six sure. Okay. Great alright, Thank you very much.
Speaker Change: Thanks, John.
Speaker Change: Thank you and as a reminder to ask a question. Please press star one on your telephone.
Question comes from Galaxy <unk> with singular research you May proceed.
Speaker Change: Hi, good morning, guys.
Speaker Change: Good morning, Jeff.
Speaker Change: Just with the EPS guidance.
Speaker Change: What are the key factors.
Speaker Change: Tension the drive the performance towards the upper end of that range in Q4.
Yes.
Matt: This is Matt.
Speaker Change: We tried to be.
Speaker Change: Pretty thoughtful and directing people towards the bottom of that range for the year, which obviously all of that plays out in Q4, and I think the big driver. We're seeing there is just more pressure on volume than we expected and so I think as we look at Q4 volume is probably our biggest variable that drives that what we're seeing.
Speaker Change: Now it would put us towards the bottom of that $4 90 to $5 20 range.
Speaker Change: Okay. Thank you.
Speaker Change: Two of the.
Speaker Change: The UWS progress can you give me a little more color on.
Speaker Change: What synergies you're expecting and I think you had like.
Speaker Change: Our target of $100 million.
Speaker Change: Contribution for FY 'twenty six any update on that.
Speaker Change: Yes, so for <unk> for F. 'twenty six we're still projecting that we're going to have $100 million contribution from UW solutions at about a 20% adjusted EBITDA margin and we do expect that to be accretive to EPS next year and we do that we have outlined that we are trying to.
Speaker Change: To achieve $5 million in synergy targets as we move through the next 12 months to 18 months as we look at.
Speaker Change: Bringing in the business, we've already started to realize some but.
Speaker Change: We're working through the integration process here and I'd say, we're we're on track.
Speaker Change: Where we expect it to be.
Speaker Change: Okay.
Speaker Change: In terms of when the market conditions.
And the changes for your long term operating margins I'm, sorry, I might have missed this but any particular.
Speaker Change: Number four the architectural framing that youre putting out.
Thanks.
Speaker Change: So framing for this year, we expect framing to be within.
Speaker Change: 10% to 15% range and next year, we see the opportunity for them to be in their long term range as well.
In fiscal 'twenty six.
Speaker Change: So I have played out. Thank you. Thank you guys.
Speaker Change: Okay. Thank you.
Speaker Change: Thank you I would now like to turn the call back over to tie silver horn for any closing remarks.
Speaker Change: Thank you again for joining us today, and we look forward to providing you with another update in our April call as we close out our fiscal 'twenty five have a great rest of your week.
Speaker Change: Thank you. This concludes the conference. Thank you for your participation you may now disconnect.
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Speaker Change: Hum.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Yes.
Speaker Change: Okay.
Okay.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Yes.
Speaker Change: Yes.
Speaker Change: Sure.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Sure.
Speaker Change: Okay.
Speaker Change: Sure.
Speaker Change: Okay.
Speaker Change: Okay.
Okay.
Speaker Change: Sure.
Speaker Change: Okay.
Speaker Change: Right.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Okay.
[music].
Okay.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Sure.
Okay.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Sure.
Yes.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Sure.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Yes.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Sure.
Speaker Change: Okay.
Speaker Change: Okay.
Thanks.
Okay.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Sure.
Speaker Change: Thanks.
Speaker Change: Yes.