Q4 2024 Oceaneering International Inc Earnings Call
Financial Officer.
Before we begin I would like to remind participants that statements. We make during this call regarding our future financial performance business strategy plans for future operations and industry conditions are forward looking statements made pursuant to the safe Harbor provisions of the private Securities Litigation Reform Act of 1995.
Our comments today include non-GAAP financial measures.
Additional details and reconciliation to the most directly comparable GAAP financial measures can be found in our fourth quarter press release, we welcome your questions. After the prepared statements I will now turn the call over to Rod.
And thanks for joining the call today first off thank you to our investors our customers vendors partners and most importantly, the ocean here is around the globe for continuing to believe in and contribute to the Oceaneering story.
During 2024, we recorded notable order intake of $2 9 billion, demonstrating our customers' confidence in our ability to deliver safe and reliable services and products.
We purchased approximately $20 million in shares demonstrated continued value for our customers as evidenced by our year end remotely operated vehicles or rovs uptime rate of 99%.
Further progressed pricing in our RV business, improving 13% over the course of the year.
Realized a 361 basis point improvement in subsea robotics for SSR EBITDA margin year over year exiting 2024 at 36%.
Attained our highest quarterly revenue since the fourth quarter of 2015, and surpassed $100 million and adjusted EBITDA for the first time since the second quarter of 2016.
One a contract from the defense innovation unit to build a freedom vehicle or a hybrid RV autonomous underwater vehicle.
And to establish an onshore remote operations center for the U S Navy highlighting the cross industry applications for our technology.
<unk> targeted adjustments to our portfolio, including the fourth quarter acquisition of global design innovation limited or <unk>, a UK based provider of digital and software solutions and exits from other businesses and I would be remiss, if I failed to mention our steadfast commitment to safety, which in 2024 led to a 56% reduction in <unk>.
Potential incidents and a total recordable incident rate or <unk> of <unk>, two 9% for the year nearly matching our record low tier IR achieved in 2022.
Now I will focus my comments on our performance for the fourth quarter and full year of 2024, our market outlook for 2025, our consolidated 2025 outlook, including our expectation to generate positive free cash flow in the range of $110 million to $130 million and EBITDA in the range of 380 to 400.
$30 million and our segment outlook for the full year and first quarter of 2025.
Now starting with our fourth quarter 2024 results.
For the fourth quarter of 2024, we reported net income of $56 $1 million or <unk> 55 per share a 26% year over year increase consolidated revenue of $713 million was 9% higher than in the same period of the prior year with revenue increases in each of our operating segments fourth quarter <unk>.
24, consolidated operating income of $77 $9 million was 64% higher year over year due to significant improvements in our SSR and offshore project group, our OTG segments.
Our consolidated adjusted earnings before interest taxes, depreciation and amortization or adjusted EBITDA of $102 million, representing a 35% increase year over year and was slightly above both the midpoint of our implied guidance range provided at the beginning of the fourth quarter consensus estimates.
Though we experienced typical fourth quarter seasonality and SSR. It is worth noting that their results declined only slightly while otg's fourth quarter revenue operating income and EBITDA improved and represented its best quarter in 2024.
We generated $128 million of cash from operating activities in the fourth quarter and invested approximately $34 million in organic capital expenditures, including $18 million in growth and $16 million in maintenance.
Additionally, as previously mentioned, we acquired <unk>, we ended the quarter with free cash flow of $94 $5 million as of December 31, 2024, our cash balance was $498 million.
Now, let's look at our business operations by segment for the fourth quarter of 2024 as compared to the fourth quarter of 2023.
SSR operating income of $63 $5 million was 6% higher compared to the fourth quarter of 2023 on a 6% increase in revenue.
EBITDA margin also improved year over year to 36% from 32%, reflecting continued pricing progression in RV and tooling and improved execution in our RV and survey groups.
Average RV revenue per day utilized was $10786, a 12% year over year increase while fleet utilization of 66% and days utilized a 15211 were slightly lower.
<unk> fleet used during the quarter of 64% in drill support and 36% in vessel based activity was essentially the same as in the fourth quarter 2023.
The revenue split between our RV business, and our combined tooling and survey businesses as a percentage of our total SSR revenue was 77% and 23% which was relatively flat during the same period in 2023.
As of December 31, 2024, we have 59% of the contracted floating rig market with Aro <unk> contracts on 84 of the 142 floating rigs under contract we ended the quarter and the year just as we began with the fleet count of 250 <unk> systems.
Turning to manufactured products, our fourth quarter revenue of $143 million increased 8% year over year operating income of $4 2 million and operating income margin of 3% declined primarily due to reserves taken on an umbilical project.
Year end 2024 backlog was $604 million, a decrease of $17 million compared to December 31 2023.
The book to Bill ratio of <unk>, 7% for the full year of 2024 compared to 131 and the full year of 2023 was lower than expected due to the timing of awards for Maxim over counterbalanced forklifts.
<unk> achieved their highest levels of revenue operating income and operating income margin in 2024 during the fourth quarter as compared to the fourth quarter of 2023 operating income improved significantly to $39 $3 million operating income margin improved to 921% from 9%.
Revenue increased 14% to $184 million. These improvements resulted from increased installation and intervention activity levels in West Africa, and the Gulf of Mexico.
For integrity management, and digital solutions, our MBS fourth quarter operating income decreased by $1 2 million and operating income margin declined from 5% to 3%. Despite a $9 $1 million increase in revenue, primarily due to costs associated with acquisitions and divestitures in this.
As previously announced we completed the acquisition of <unk>, which will report future financial results through MBS.
Okay.
Our aerospace and defense technologies or AD Tech fourth quarter 2020 for operating income declined $1 1 million and operating income margin declined to 10% on a $3 $9 million increase in revenue as compared to the same period last year operating income declined primarily due to changes in project mix.
Mix with increased volume in our Marine services Division, which is lower margin manpower business offsetting lower volume in our Oceaneering technologies, our <unk> Division.
And the implementation of a discrete new ERP system for AD Tech that supports our growth strategy to become a prime contractor to the U S government.
Fourth quarter 2020 for unallocated expenses of $41 $1 million were in line with the guidance for the quarter.
Okay.
Now I'll turn my focus to our full year 2024 results compared to 2023.
For 2024 consolidated revenue increased 10% to $2 7 billion from $2 $4 billion in 2023 with each of our operating segments achieving revenue growth.
Consolidated 2024 operating income of $246 million improved by $64 $9 million.
Or 36% and adjusted EBITDA of $347 million improved by $58 $2 million or 20% compared to 2023 EBIT.
EBIT gains in our SSR manufactured products and <unk> segments more than offset declines in our Ibs and AD tech segments.
As compared to 2023 cash flow from operations declined $6 7 million to $203 million due to increased networking capital related to the timing of revenues and increased cash taxes.
We invested $107 million in organic capital expenditures, an increase from $101 million in 2023 as.
As previously discussed we also spent approximately $27 million in inorganic capital expenditures, which included the acquisition of <unk>.
For the full year of 2020 for free cash flow was $96 $1 million compared to $109 million in 2023.
At year end, we had healthy liquidity with $498 million in cash and cash equivalents and an undrawn $250 million credit revolver.
Now turning to our 2025 market outlook, we believe that oceaneering is well positioned to take advantage of market dynamics in 2025 and beyond.
Our research services continue to report that breakeven cost and carbon intensity in the offshore operations are lower compared to most other forms of hydrocarbon development near term and long term oil and gas prices continue to be supportive of a healthy market for the services and products that we provide we also continue to see growth opportunities within our AD Tech segment.
Analysts and research services projections for key energy related metrics that we track indicate that 2025 activity will be flat or slightly positive.
We expect that the 2025 forecasted average Brent crude oil price of approximately $75 per barrel will be supportive of stable levels of offshore operating and capital spending throughout the year.
The deepwater final investment decision RFID forecast indicates a year over year increase in 2025, providing added support for our forecast.
Tree Awards and project sanctions are indicators of the two to five year horizon for activities, such as installations equipment orders and offshore spending.
Tree awards are forecasted to increase in 2025 with approximately 285 subsea tree is expected to be awarded in 2025 as compared to 216 awards in 2024.
Tree installations are forecasted to increase year over year with approximately 350 installations forecasted for 2025 as compared to 330 installations in 2024.
Drilling rig demand is expected to be flat in 2025.
While we view these market indicators and support.
Changes in the geopolitical landscape, including changes in regulations and trade policies.
Impact of the markets, we serve and our customers' planned activities like our peers. We are closely monitoring the announcements of new tariffs both by the U S and other countries, which we currently do not expect to have a material impact on our energy services and products.
We're also monitoring the impacts of budgetary reviews in the U S. On our government related markets. At this time, we expect that the specific defense related markets that we serve will remain relatively stable with continued growth for the foreseeable future.
Now for our 2025 consolidated outlook for Oceaneering.
Based on our year end 2024 backlog expected backlog conversion anticipated 2025 order intake and current market fundamentals. We are projecting our 2025 consolidated revenue to grow by mid to high single digits with increased revenue in each of our operating segments our expectations for growth in revenue are driven by our <unk>.
Expectations for continued pricing progression and favorable year over year project mix. We also expect higher operating income and operating income margins in each of our operating segments.
While we remain confident in our backlog and sales pipeline. We felt it was prudent to acknowledge the aforementioned geopolitical risks and their potential impact on the markets we participate in <unk>.
As reported yesterday, we have adjusted our EBITDA guidance range for the year.
Anticipate generating $380 million to $430 million of EBITDA with the year over year improvement being led by our SSR AD Tech and manufactured product segments at the midpoint of this range. Our 2025 EBIT it would represent a 17% increase over our 2024 adjusted EBITDA.
We anticipate generating positive free cash flow of $110 million to $130 million as has been the case over the past several years, we anticipate a substantial cash draw during the first quarter related to working capital changes associated with vendor payments and customer cash receipts and the payment of performance.
Base incentive compensation.
For 2025, we forecast organic capital expenditures to total between $130 and $140 million. This includes approximately $52 million to $56 million of maintenance capital expenditures and 78% to $84 million of growth capital expenditures. This total is inclusive of 15 million to 20.
Associated with the implementation of a new ERP system.
It is worth noting that the increase in capital expenditures is tied to growth opportunities related to new contracts.
We forecast our 2025 interest expense net of interest income to be in the range of 26% to $30 million. We expect our 2025 cash tax payments to be in the range of $110 million to $120 million. This.
This includes taxes incurred in countries that impose tax based on in country revenue and bear no relationship to the profitability of such operations.
Directionally in 2025 for our operations by segment for SSR. The expectation for improved results is based on sustained and continued pricing improvement in ROE V. A stable overall demand for RV days and improved results from our survey business results for tooling.
Services are expected to generally follow Rob days utilized revenue growth is expected to be in the high single digit range and EBITDA margins are expected to average in the mid 30% range for the full year.
For Rovs, we project that our 2024 service mix of 65% drill support and 35% vessel services will remain generally the same in 2025 we.
We expect to continue to navigate concerns about white space in drilling schedules by maintaining and placing our RV systems on higher class assets.
Our overall RV fleet utilization during the year is forecast to range between the high 60 in those 70% with high seasonal activity during the second and third quarters, we expect to sustain our RV market share in the 55% to 60% range for drill support services.
We continue to see opportunities to improve <unk> revenue per day utilized in 2024, we saw an increase of 13% year over year from $9315 in 2023 to $10481 in 2024 with a 2024 exit rate of $10786.
For manufactured products, we expect operating margins to improve in operating results to improve significantly on increased revenue primarily based on conversion of our existing backlog in energy products growth in our Greylock connectors business and improvements in our non energy product lines.
<unk> operating results are forecasted to improve on a flat to slight increase in revenue. These projections are based on expectations for improved vessel utilization in the Gulf of Mexico, and West Africa, and increased activity levels in Brazil, and Asia Pacific Overall for 2025, OTG operating income margins are expected to average.
In the mid teens range for the year, primarily due to an increase in higher margin intervention work, including light well intervention and a meaningful reduction in dry dock costs.
<unk> operating results are forecasted to improve significantly on increased revenue with growth opportunities in digital and engineering services.
Operating income margin is expected to improve to.
To improve to be in the high single digit to low double digit range for the year.
AD Tech operating results and revenue are expected to be significantly higher we anticipate growth in all three of our government focused businesses led by <unk> as we commence work unexpected New program awards and recovery in our space systems business.
Operating income margins are expected to average in the low teens for the year.
For 2025, we anticipate unallocated expenses to average approximately $45 million per quarter.
Now I'll discuss our outlook for the first quarter of 2025 as compared to the first quarter of 2024 on.
On a consolidated basis, we expect our first quarter 2025 revenue to increase in EBITDA to significantly increase with EBIT in the range of $80 million to $90 million as compared to the first quarter of 2024, our expectations for the first quarter of 2025 by segment or <unk>.
<unk>, we project revenue to increase in operating results to increase significantly for <unk>, we expect revenue and operating results to improve significantly due to ongoing work from the fourth quarter of 2024, and due to a reduction of dry dock costs and the related loss of vessel days that impacted the first quarter of 2024 for.
For manufactured products <unk> and AD Tech, we expect that revenue and operating results will be similar we forecast on unallocated expenses to be in the range of $45 million.
Sure.
In closing I'd like to again, thank our team of ocean areas. It is their ingenuity teamwork and commitment to our shared values that drives our success as we look forward to the future. We remain focused on delivering innovative solutions to our customers fulfilling our commitments to our shareholders and supporting and empowering our team. We appreciate everyones can.
<unk> interest in Oceaneering and will now be happy to take any questions you may have.
Speaker Change: Thank you we will now begin the question and answer session. If you have dialed in and we'd like to ask a question. Please press star one on your telephone keypad to raise your hand and trying to queue.
I would like to withdraw your question simply press Star one again.
Speaker Change: You are called upon to ask a question in a listening via speaker. Following our device. Please pick up your handset to ensure that your phone is not than you've been asking your question again press star one to join the queue.
Kim: Our first question comes from the line of <unk> Kim with Barclays. Your line is open.
Kim: Hi, good morning.
Kim: Good morning.
Kim: Progression of your Rovs.
Kim: Average revenue per day has been impressive and almost 10800 in the quarter has that increase in pricing over the past several years has that been driven more.
Kim: But the drilling support side or on the vessel fleet.
Kim: The combination of both and just given the expectation of our.
Kim: A lot of white space this year on the deepwater rigs.
Kim: You expect maybe.
Kim: Flattish trajectory from <unk> levels through the end of the year or do you expect that we will actually surpass.
Kim: 11000, a day as we move through the year.
Kim: Thanks, Ed I would say first of all the pricing is coming from both whereas we're seeing improvements in both the both the vessel and the drill support.
Kim: And then I guess, we see we see the days or the activity being flattish, but that's because it's the realization of price even from the exit exit rate. We have there has been ongoing negotiations obviously, it's not the same.
Kim: I would say that the bites come in smaller bites are the improvements come in smaller bites, but it's but it's still we're still seeing some upward progression. So we expect to get even more through the through 2025. Despite the flat days and again, just kind of reassurance of that now.
Kim: Not unlike we had flattish days and flattish activity in 2024, we still we still see the opportunity to demonstrate value, 99% uptime and get get that get that improvement in price over time.
Kim: Got it understood.
Kim: My follow up is just on.
Kim: Orders within within the manufactured products segment it looks like.
Kim: Book to Bill for full year 'twenty four was about one one times.
Kim: Which was a slight decrease from 23 is about one three times book to Bill.
Kim: <unk>, if I missed it but.
Kim: For this year.
Kim: Is there any kind of guidance.
Kim: From an orders our book to Bill perspective on what we should expect.
Kim: We havent given given that guidance.
Kim: I think right now we haven't provided that guidance, but I think in the call notes did.
Kim: Describe our expectation that our sales pipeline remains healthy.
Kim: I think that's.
Kim: An indicator of our belief in future orders this year will be.
Kim: Okay.
Kim: Got it great.
Great. That's all very helpful I'll turn it back.
Kim: Thanks.
Speaker Change: And our next question comes from the line of Chris <unk> with Benchmark Company. Your line is open.
Chris: Hey, good morning, everybody.
Kurt: Morning, Kurt.
Chris: Appreciate the color as always.
Chris: I guess in the context.
Chris: <unk> Conference calls we've heard from.
Chris: Secondly, almost all the offshore drillers that theres going to be a re acceleration of contract activity.
Chris: During here through the first part of 2025, and obviously boding well for incremental activity in 2006, and 2007, So I guess a kind of a two part question around your RMB utilization assumptions for the year.
Chris: Can you give US a reminder, or refresher on how how potential downtime.
Chris: Or white space on rates.
Chris: And how you kind of factor that in for 2025.
Chris: I think it's all in the days when we get when we talk about the activity.
Chris: I think in the rig activity. It's in our plan is as flattish and that's.
Chris: It's hard to take the average of what everybody is telling you I think when when Alan and I talk about it it feels like we're maybe closer to the Transocean story than maybe some of the others.
Chris: That's just a blend of the assets were on a talk about these higher quality assets, but but I think.
Chris: There's lots of things going on under the water one of the things that has helped us as we've quietly grown our market share in Brazil, and so we're pushing up higher there. We didn't we never used to talk that much about Brazil, because some of the Petrobras contracts.
Chris: We're pretty onerous and now that we see more of the drilling contractors.
Chris: Contracted rovs directly and.
Chris: And they really value uptime, we've been able to get better pricing and again more market share in Brazil. So that's that's one of those things that happens, it's sort of in the mix that kind.
Chris: Kind of.
Chris: Gives us some protection against the white space that everybody's talking about.
Chris: Okay, Great I appreciate that now maybe switching gears.
Chris: Just keeping the topic of the.
Chris: Mobile robotics.
Chris: Forklifts.
Chris: Business segment, I know you guys had shifted your manufacturing.
Chris: It took more of an outsourced model can you give us an update on how that's progressing and give us an update on what kind of discussions you've been having with respect to incremental orders.
Chris: For for that business.
Chris: I think the best thing.
Chris: Outsourced manufacturing, we feel good about we feel good about the quality coming from there I think we're watching that we're watching the pipeline.
Chris: Customers still very very bullish.
Chris: The product.
Chris: They've got their own kind of shuffling of the deck about we're.
Chris: We're not just sending these into one factory or two where we're servicing multiple factories, so that as they're scheduled changes where they want to put things where they have time to kind of intervene into the production line.
Chris: Scheduling has been one of the things that we got to keep our eye on as well as developing.
Chris: The next big customer and kind of taken some of these people who have I would say taken trial levels of vehicles and turn them into larger volume buyers.
Chris: Got it Okay and then just.
One more on the manufacturing products, obviously decent book.
Chris: Book to book to Bill on that front.
Chris: What are some of the can you give us a feel for the margin improvement kind of go forward how much of that is better priced backlog how much of that is more efficient operations, just a little bit more flushing that out if he can.
Chris: Yes, all of the above.
Chris: I, just got a motion to adjourn.
Chris: A little bit because I think we have been trying to signal that there is some.
Chris: Improved margin sitting in backlog that we were waiting for delivery as long lead materials to come in which we've been taking receipt of.
Chris: That's kind of giving us the confidence in the outlook for 2025 and the.
Chris: The increase in revenues and increase in profit so.
Chris: A large amount of it is sitting there.
Chris: And it is the efficiency we've gained by having continuous throughput in these factories I mean these are large volume factories.
Chris: They need every day as we call it so.
Getting the utilization and we absorb more of the overhead costs <unk> costs as we call it.
Chris: That improves margin.
Chris: Having daily throughput as a.
Chris: Nice.
Chris: When you look at it driving margin progression for us this year.
Chris: I would just comment on book to Bill, even though we haven't given guidance I think just we just tell everybody to watch what we're watching and we're looking for those tree orders, we're looking for tree installations and those things kind of are the best indicator of what's out there if we see the year over year improvements in both of those that bodes well for whats going to be let in the umbilical side yet.
Chris: Ill.
Speaker Change: Highlights something rod heading to call notes here as well, we called out Greylock products. It's not one we speak about a whole lot, but it's a.
Chris: A nice niche business for us that delivers.
Chris: High temperature high pressure connectors, and it's one that gets into many different markets.
Chris: The team there has been doing a nice job the last couple of years expanding into new markets.
Chris: And we continue to see opportunity in that.
Chris: Excellent I appreciate that color as always thank you.
Kurt: Thanks Kurt.
Kurt: Again, if you would like to ask a question press Star then.
Kurt: And then the number one on your telephone keypad.
Kurt: Okay.
Kurt: Okay.
Speaker Change: And we have another question from Jos <unk> Energy Partners. Your line is open.
Speaker Change: Thanks. Good morning, first question, just on offshore products or sorry offshore projects group.
Speaker Change: These moves around a bit.
Speaker Change: Q4 performance was quite strong in Q1 outlook highlights significantly higher activity year over year, maybe you could go into more detail about not only for Q4, you talked about West Africa Gulf of Mexico, but also where you see some of the strength coming in 2025 and beyond.
Speaker Change: Hey, Thanks, Josh and yes, we've been we've been trying to do the best to talk to about this story because I'm going to go back to we hinted at this when we talked about Capex deployment, we spent a lot of time.
Speaker Change: Looking for these these growth things right. These are the pieces that are that are in our wheelhouse and our specialty but also things that we think grow faster than maybe the rest of the oilfield oilfield tempers a little bit. These are things that are continue to grow because theres uptake on them light well intervention is one of the greatest ones and we make an investment there that like when a light well.
Speaker Change: The intervention work.
Speaker Change: I joked at the best the cheapest barrels are the ones that are already behind pipe. So if you've got if you've got wells that you can rework you can do the intervention, whether it's mechanical or hydraulic intervention I mean, those that's just really good work and Thats and Thats. Some of the best margin work for US we're doing it at a lower cost point for the customers because we are using a vessel of opportunity instead of having to.
Speaker Change: Have a a specialty intervention vessel or a drill rigs. So we see the customers getting more and more excited about that again, we see that we can invest in equipment and expand our footprint.
Speaker Change: That along with some of the rework of infrastructure like we saw in the Gulf of Mexico and in West Africa. This year those are the things that we.
Speaker Change: We really think that have been supportive of the LPG business, rather than just call out INR work those are those are longer contracts.
Speaker Change: Sometimes that equipment gets put on hire for months at a time and so those things those things are great stabilizing piece for the LPG business.
Speaker Change: Okay. Thanks, and just I wanted to ask one on the RV business more of a focus on the vessel class rather than drill support would you speak to the visibility you have.
Speaker Change: That's a class rovs market supply demand today and where.
Speaker Change: I guess, how tight the market is today in the multiyear opportunity set there because I would assume is one of the other questions asked that.
Speaker Change: A decent amount of day rate progression has come from this as well as drill support so maybe you could just speak to those opportunities as well.
Speaker Change: I'm not I'm not when you say, we are you talking like on the vessel side installation vessel lay versus yeah. I mean, we see a fair amount I mean, a lot of the a lot of the really big vessels pipeline stuff a lot of those are done by my customers, who like to do their own rovs. So so.
Speaker Change: Those things aren't so much as you get down into the what they call a.
Speaker Change: Drill support vessel.
Speaker Change: And a multipurpose service vessel or an RV support vessel those are the things we see in utilization has been good I mean, when we when we look for one of those on the LPG side for vessels of opportunity to go attack a project. We find that the windows are are not that easy to find so I think the utilization.
Ben: That class, where we're mostly were mostly deployed as Ben has been pretty strong.
Ben: And then maybe one last one if I may on M&A.
Speaker Change: You've made it clear in the past with.
Speaker Change: Free cash flow and incremental capital you'd like to invest and potentially disruptive technologies.
Speaker Change: As the multiples have compressed in the public space I'm curious, if you've seen more M&A opportunities.
Speaker Change: <unk> come through.
Speaker Change: Over the last six to nine months or if the number of opportunities sort of remain consistent with where it's been over the last year and then I'll tell them no I think there I think there's more stuff.
Speaker Change: We see more stuff so that's exciting.
Speaker Change: We're waiting for our perfect pitch, probably is the way to put that.
Speaker Change: <unk> was great I mean, GTI is such an exciting thing for us because it.
Speaker Change: And I'm sure I've said this before but what I love about it is it's it's really smart for infrastructure, we get a lot of Bang for the Buck because what they help you do is by taking a laser scan and the video you can you can take that whole picture and determined corrosion and and quantify corrosion.
Speaker Change: Part is that we're working really hard to get that deployed in the water and we feel very confident that that's the next thing we get to do well for us that's a double bonus rate. We've got GTI doing all of that that interpretation work, but we're taking the video and where do the laser scanning with rovs, so anything that creates more dive.
Speaker Change: Time for Rovs and pays us twice and so we're pretty excited about things like that so when we're watching the M&A space were really looking for the things that we are truly the best owner of.
Speaker Change: Thanks, I'll turn it back.
Jeff: Thanks, Jeff.
Speaker Change: That concludes the question and answer session I would like to turn the call back over to Mr. Rod Larson for closing remarks.
Rod Larson: Thanks, Rick since there are no more questions I'll, just wrap up by thanking everyone again for joining the call and this concludes our fourth quarter and full year 2024 conference call have a great day.
Speaker Change: Ladies and gentlemen. This concludes today's conference call you may now disconnect.
Speaker Change: Yeah.
Speaker Change: Yeah.
Speaker Change: Yeah.
Speaker Change: Yes.