Q3 2025 Motorcar Parts of America Inc Earnings Call
Regina: Hello and thank you for standing by. My name is Regina and I will be your conference operator today. At this time, I would like to welcome everyone to the Motor Car Parts of America, Inc. Fiscal 2025 3rd Quarter Conference Call-In Webcast.
Regina: All lines have been placed on mute to prevent any background noise.
Regina: After the speaker's remarks, there will be a question and answer session.
Speaker Change: If you'd like to ask a question during this time, simply press star, then the number one on your telephone keypad. To withdraw your question, press star one again. I would now like to turn the conference over to Gary Maier, Vice President, Corporate Communications and Investor Relations at Motor Car Parts of America. Please go ahead.
Speaker Change: Thank you, Regina. Thanks everyone for joining us for our call this morning. Before I begin, I turn the call over to Selwyn Joffe, Chairman, President, Chief Executive Officer, and David Lee, the company's Chief Financial Officer. Let me remind everyone of the Safe Harbor Statement included in today's press release.
Speaker Change: Private Securities Litigation Reform Act of 1995 provides a safe harbor for certain forward-looking statements, including statements made during today's conference call.
Speaker Change: Such forward-looking statements are based on the company's current expectations and beliefs concerning future developments and their potential effects on the company.
Speaker Change: There can be no assurance that future developments affecting the company will be those anticipated by Motor Car Parts of America. Actual results may differ from those projected in the forward-looking statements.
Speaker Change: These four relevant statements involve significant risks and uncertainties, some of which are beyond the control of the company and are subject to change based upon various factors.
Speaker Change: In particular, expectations about anticipated future growth and opportunities with customers may not be achieved. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
Speaker Change: For a more detailed discussion of some of the ongoing risks and uncertainties of the company's business, I refer you to the various SEC filings. With that, I'd like to begin the call and turn it over to Selwyn.
Selwyn Joffe: Thank you, Gary. I appreciate everyone joining us today. We are certainly encouraged by our record sales, gross margin improvement, and solid cash flow generation for the fiscal 25 third quarter.
Speaker Change: Our initiative is to enhance profitability or gain interaction. Our team continues to be focused on continuous improvements, and we are excited by the opportunities for the balance of fiscal 2025 and beyond.
Speaker Change: We generated approximately $34.4 million of cash from operating activities during the fiscal third quarter, primarily due to strong operating profits.
Speaker Change: We remain focused on initiatives to enhance profitability, including gross margin expansion and neutralizing working capital, which should continue to result in strong cash flow generation.
Speaker Change: With regard to our balance sheet, our positive cash flow and related initiatives enabled us to reduce net debt by $30.3 million for the fiscal third quarter, resulting in a 26% reduction to $84 million from $114 million.
Speaker Change: In addition, as highlighted in our earnings press release this morning, we repurchased 268,130 shares for $2.1 million at an average price of $7.82 under a current repurchase authorization program.
Speaker Change: We anticipate further opportunities to enhance shareholder value through strong cash generation and the neutralization of working capital.
Speaker Change: I should mention that Rotating Electrical, our 50-plus year flagship category, continues to generate solid performance, and we expect further opportunities to add retail and traditional customers.
despite some recent market softness.
Speaker Change: As I've mentioned many times, the replacement of alternators and starters cannot be deferred.
If these products are broken, your car is not drivable.
Speaker Change: and the aging car park remains a favorable tailwind with multiple replacement opportunities for the life of vehicles.
Speaker Change: We are also particularly excited by the continued success of our emerging and second largest category brake-related products.
Speaker Change: We expect continued success in this category based on our quality, customer service, and capacity to meet demand. And we anticipate strong demand as we enter the important spring repair season.
Speaker Change: Equally important, these accelerating break-related product sales support purchasing and production efficiencies, which contribute to gross margin improvement.
Speaker Change: Our team is doing an exceptional job to further enhance performance metrics, and we look forward to continued sales growth for this important non-discretionary product category.
Speaker Change: As I've previously mentioned and as referenced in the exhibits to our earnings release, there are various factors relating to our financial performance that are non-cash and beyond our control.
Speaker Change: particularly the current sharply unfavorable non-cash mark-to-market foreign exchange laws from Mexican lease liabilities and for contracts.
Speaker Change: A strengthening dollar versus the peso results in large non-cash mark-to-market expenses.
which we internally eliminate when evaluating our underlying results.
Speaker Change: and others, including funding our Mexico operations with pesos from sales in Mexico.
Speaker Change: As our sales in Mexico continue to grow, we will purchase fewer forward contracts to meet our PESO obligations, which will lessen the impact of non-cash foreign exchange expense fluctuations.
Speaker Change: Obviously, interest rates, particularly applicable to vendor finance programs utilized by our customers, are a headwind.
On a positive note, interest rates have decreased.
If this trend continues, this should benefit profitability.
Utilizing our low-cost global footprint will facilitate further operating efficiencies.
Speaker Change: We are actively implementing additional initiatives to further enhance gross margins.
Speaker Change: Let me take a moment to highlight a few key near-term strategic initiatives that support our favorable outlook.
Speaker Change: With respect to our diagnostic business, as I've previously mentioned, we are experiencing great success with our JBT-1 benchtop test.
Speaker Change: and we remain focused on achieving the hundred million dollar milestone for diagnostic equipment.
Speaker Change: Additional service-related revenue is expected as more testers are deployed, which includes repairs, software, and database updates.
These contributions will increase as the installed basement matures.
Speaker Change: We also expect more opportunities outside North America as the business evolves.
Speaker Change: With regard to our heavy-duty business, we continue to leverage our reputation and industry position in this market.
Speaker Change: particularly with regard to supplying alternators and starters to our channel partners who are leaders in the heavy-duty aftermarket sector.
Speaker Change: Our growth opportunities continue to gain momentum across multiple platforms, such as agriculture, class A trucks, refrigeration, construction, material handling, and transit and motor coach.
Speaker Change: A Dixie brand is also evolving as an important supplier to the heavy-duty original equipment manufacturers.
Speaker Change: We will remain focused on sales growth, profitability, and neutralizing working capital.
Speaker Change: As I noted earlier, we expect our sales and profitability will continue to grow organically.
From a strategic standpoint, we are
Speaker Change: including great products manufactured at state-of-the-art facilities, solid customer relationships, industry-leading SKU coverage, and order fill, not to mention our value-added merchandising and marketing support.
Speaker Change: Our hard part sales in Mexico continue to gain momentum as we experience increased demand for our aftermarket parts.
Speaker Change: The rate of growth in this market is exciting, and we are well positioned to utilize our footprint to meet the growing demand.
We are focused on increasing share in this region.
Speaker Change: We continue to benefit and grow sales via our relationships with U.S.-based retailers, warehouse distributors who are gaining a presence in this emerging market, as well as through Mexican distributors.
Speaker Change: Favorable long-term dynamics continue to bode well for the company and we're extremely well positioned for suitable top and bottom line growth in our hard parts business.
as well as testing solutions.
We are focused on growth across all product lines.
Speaker Change: including our quality built brand which is gaining market share within the professional installer market. This includes our most recent additions to our portfolio brake calipers, brake pads, and rotors.
Speaker Change: I reiterate that as we grow these product lines, we expect overall gross margin accretion.
We are beginning to see the benefits.
Speaker Change: It is worth reiterating that 98.8% of the U.S. car park is comprised of internal combustion engines and hybrid engine vehicles.
Speaker Change: Non-discretionary aftermarket parts for the internal combustion engine market will be here for decades.
Speaker Change: and Outlook supported by recently updated industry data showing that the average age of vehicles is now 12.8 years plus.
Speaker Change: One of our key competitive advantages is the ability to offer a broad range of applications for all makes and models.
Speaker Change: We remain focused on newer model applications and our ability to meet expected demand as these vehicles enter the replacement market.
David Lee: I'll now turn the call over to David to review our results in greater detail.
David Lee: Thank you, Selwyn, and good morning, everyone. I encourage everyone to read the earnings press release issued this morning, as well as a 10-Q that will be filed later today.
David Lee: Let me first reiterate key financial performance metrics for the fiscal 25 third quarter that we highlighted in this morning's news release.
David Lee: Net sales increased 8.3% to a fiscal third quarter record $186.2 million.
David Lee: Gross profit increased 49.4% to a record $44.9 million. Net income for the quarter was $2.3 million.
David Lee: generated cash from operating activities of $34.4 million and reduced net bank debt by $30.3 million, repurchased 268,130 shares for $2.1 million,
David Lee: Non-cash items reduced net income by $5 million, and gross profit by $3.4 million for the quarter, as detailed in the exhibits.
David Lee: Net sales for the fiscal 25th 3rd quarter increased 8.3% to a 3rd quarter record $186.2 million from $171.9 million in the prior year.
David Lee: Gross profit for the fiscal 25th quarter increased 49.4% to a record $44.9 million from $30 million a year earlier.
David Lee: I should mention that gross profit for the quarter was impacted by non-cash expenses.
David Lee: The non-cash expenses reflect core and finished good premium amortization and re-evaluation of cores on customer shelves, which are unique to certain of our products and required by GAAP.
David Lee: The total for these non-cash expenses in the quarter was approximately $3.4 million, or a 1.8% impact to gross margin.
David Lee: Gross margin for the fiscal 25 third quarter was 24.1 percent compared with 17.5 percent a year earlier.
David Lee: Aside from higher sales volume, particularly from CERN of our newer product offerings, which supports increased absorption of cost, we are also focused on other initiatives to enhance gross margins.
David Lee: predominantly due to a $2.5 million non-cash mark-to-market foreign exchange loss.
David Lee: compared with a $3.1 million non-cash mark-to-market foreign exchange gain in the prior year.
David Lee: and a $1.8 million increase expense resulting from currency exchange rates compared with the year ago.
David Lee: Operating expenses were $27.3 million compared with $20.5 million last year.
David Lee: I should note that excluding these items above, operating expense decreased by $627,000 to $23.6 million compared with $24.2 million a year earlier.
David Lee: For those of you who are not familiar with our operations, our leases in Mexico are U.S. dollar-denominated leases. However, the leases are recorded in pesos at our Mexico subsidiary. As a result,
David Lee: The fixed U.S. dollar leases, which are paid in U.S. dollars, are re-measured at the end of every period to reflect the current exchange rate, resulting in a $1.9 million non-cash foreign exchange impact of lease liabilities for the third quarter.
David Lee: Additionally, the company purchases forward paysoll contracts, which are also re-measured at the end of every period, to reflect the current exchange rate, which resulted in a $585,000 non-cash foreign exchange impact of forward contracts for the fiscal third quarter.
David Lee: I might add that we are starting to reduce the purchase of pay-so-forward contracts.
by utilizing pesos generated through our Mexican sales subsidiary.
David Lee: to fund our operations there, which will reduce the impact of gains and losses from the remeasurement at the end of each period to reflect the current exchange rate.
David Lee: We are continuing to analyze opportunities to reduce exposure to the foreign exchange impact of lease liabilities and the impact of foreign currency forward contracts.
David Lee: Interest expense for the fiscal third quarter decreased by 3.9 million to 14.4 million from 18.3 million a year ago, impacted by lower average outstanding balances under the company's credit facility and lower interest rates.
David Lee: For the third quarter, income tax expense was $1.1 million, compared with $37.3 million income tax expense for the prior year, primarily due to a $37.5 million U.S. federal and state deferred tax asset valuation allowance under U.S. GAAP for the prior year, which is non-cash and does not impact any operating metrics.
David Lee: The effective tax rate for the fiscal third quarter was due in part to the inability to recognize the benefit of losses at specific jurisdictions. However, we expect these losses will be utilized against future profits, which will benefit future tax rates.
Obviously, there are various factors impacting the tax effect.
David Lee: Net income for the fiscal 25th quarter was $2.3 million, or $0.11 per diluted share, including the impact of non-cash expenses of $5 million, or $0.24 per diluted share, as detailed in Exhibit 1 in this morning's earnings press release.
David Lee: Net loss for the prior year was $47.2 million, or $2.40 per share, including the impact of non-cash expenses of $40.4 million, or $2.06 per share, and cash expenses of $1.4 million, or $0.07 per share, as detailed in Exhibit 1.
David Lee: As previously explained, higher stainless volume and operating efficiencies will further improve results.
David Lee: EBDAA for the fiscal third quarter was $20.4 million, reflecting the $6.6 million impact of non-CAT expenses, detailed in Exhibit 5 of this morning's earnings press release.
David Lee: EBDAP before the impact of non-cash expenses mentioned above was $27 million for the third quarter.
Now, let me discuss the nine-month results.
David Lee: Net sales for the fiscal 25 nine-month period increased 6.8% to a record $564.2 million from $528.2 million a year ago.
David Lee: Gross profit for the fiscal 25 nine month period increased 18% to a record 115.3 million from 97.8 million a year earlier.
David Lee: Gross margin for the fiscal 25-9 month period was 20.4%, compared with 18.5% a year earlier.
David Lee: Gross margin for the fiscal 25 nine-month period was impacted by 10.3 million or 1.8 percent of non-cash expenses and 1.3 million or 2 or 0.2 percent of one-time cash expenses as Detailed in Exhibit 4 in this morning's earnings press release
David Lee: In addition to the items detailed in Exhibit 4, gross profit for the current nine-month period was also impacted by $4 million, or 0.7% of certain one-time expenses for onboarding new business.
Net loss for the fiscal 25 nine-month period.
was $18.7 million or $0.95 per share.
David Lee: including the impact of non-cash expenses of $22.4 million, or $1.13 per share, and one-time cash expenses of $3.3 million, or $0.17 per share, as detailed in Exhibit 2 in this morning's earnings press release.
David Lee: Net loss for the prior nine-month period was $50.6 million, or $2.58 per share, including the impact of non-cash expenses of $49.5 million, or $2.53 per share.
David Lee: and cash expenses of $5.8 million or $0.30 per share as detailed in Exhibit 2.
David Lee: In addition to the items detailed in Exhibit 2, as previously noted, results for the current nine-month period were also impacted by $4 million, or $0.15 per share, of certain one-time expenses for onboarding new business.
EBDOT, for the fiscal 25 nine-month period, was $34 million.
EBITDA was impacted by $29.8 million of non-cash expenses.
David Lee: as well as $4.4 million in one-time cash expenses detailed in Exhibit 5 of this morning's earnings press release.
David Lee: EBDAP, before the impact of non-cash and cash expenses mentioned above, was $68.2 million for the current period, despite the impact of certain one-time $4 million of expenses for onboarding new business.
Thank you.
David Lee: Now we will move on to cash flow and key corporate items.
David Lee: The company generated cash of approximately $34.4 million in operating activities during the fiscal 25th third quarter.
David Lee: We anticipate an increase in operating profit and gross margin on a year-over-year basis for fiscal 25 and the generation of positive cash flow for the year, supported by organic growth from customer demand and operating efficiencies from our global footprint expansion.
David Lee: In addition to our goal of generating increased operating profits, we are diligently focused on opportunities to neutralize working capital.
David Lee: including Customer Product Demand Planning, Enhanced Inventory Management, and further extending our Vendor Payment Terms.
David Lee: We expect increasing financial performance from both the new and existing product lines, including our emerging grade categories.
David Lee: Net bank debt decreased by $30.3 million during the fiscal third quarter to $84 million from $114.3 million.
David Lee: Total cash and availability was approximately $138.8 million. I should mention that for every one point reduction in interest rates, interest expense for accounts received with discount programs offered by customers is reduced by approximately $6 million.
David Lee: For further explanation on the reconciliation of items that impacted results and non-GAAP financial measures, please refer to Exhibits 1-5 in this morning's earnings press release.
I would now like to open the line for questions.
David Lee: At this time I'd like to remind everyone in order to ask a question please press star followed by the number one on your telephone keypad. We'll take our first question from the line of a Derek Soderberg with Cantor Fitzgerald. Please go ahead.
Derek Soderberg: Yeah, good morning guys. Thanks for taking my questions. Just wanted to start with the tariff environment quick. Selwyn, you've sort of been through a similar...
Speaker Change: Tariff Environment before. Can you sort of clue us in on what conversations you're having with suppliers and customers?
Derek Soderberg: how we should think about the potential impact of tariffs on the business. And then given your fairly global manufacturing footprint, is there a scenario where you shift around manufacturing at all?
Derek Soderberg: Okay, so there's a lot there, and obviously it's very fast evolving and a lot going on. I'll just start with the general environment is that
Derek Soderberg: There are hundreds of suppliers that are implementing tariff surcharges for the Chinese tariffs, and we're one of them. So we have implemented tariff surcharges, and I'm sure, and again, this is speculation, but
Derek Soderberg: I've listened to various public forums where our customers are talking about passing these tariffs on to the consumer.
Derek Soderberg: You know, we have been somewhat fortunate in that, you know, over the last
Derek Soderberg: tariff base that we'd have to pay tariffs off, but we don't believe that our out-of-pocket will be material.
Derek Soderberg: And so, you know, at this point, again, we're managing through it, but, you know, we think we're going to be fine.
Speaker Change: Got it, that's helpful. And then just on the gross margins, looks like the story is playing out really nicely here. Is there any way you could maybe quantify some of the gross margin expansion? Quite a big step up year over year. It sounds like you've...
Speaker Change: have gotten some favorable scale pricing, accretion, is there any way to quantify those buckets that drove that expansion?
Speaker Change: Let me deal with that one. You know, we can only talk about the segments and, you know, we don't, we have limited, but I think the
Speaker Change: The story is, you know, on a simplistic basis, which nothing is simple, is wherever we have product revenue, we have initiatives going to implement more and more efficiencies.
and as our revenue continues to...
to grow.
Speaker Change: You know that the overhead absorption is a natural and we talked about production and purchasing efficiencies. It all comes
naturally, as well as us working through it and...
Speaker Change: and various automation initiatives and all sorts of initiatives to continue and they're paying off. And, you know, we relocated.
Speaker Change: Torrance facility that that is you know essentially there's no more production or distribution there so that's all into into Mexico right now. As far as changing our footprint I think you'd ask that.
Speaker Change: I don't think we're any worse off than anybody but I and I will come as I think we're better off than the general competitor.
Speaker Change: H. D. Lee P. C. A. L. M. S. E. O. N. H. G. A. M. H. O. N. P. R. O. M. M. O. M. H. E. O.
Speaker Change: If we look at our other main, you know, operating venues, Mexico, obviously, we came close to having tariffs there, but it looks like
And again, I don't know, but my...
Speaker Change: From my readings, it looks like the Mexican and U.S. governments are cooperating.
Speaker Change: Canada is relatively minor for us, so I don't see us moving.
Right now, any production or anything.
from that perspective.
David Lee: Got it, that's helpful. And David, just, you know, looking at cash generation, been pretty strong here, paying down debt, looks like interest expense is going to come down. You know, I guess, looking ahead, how do you plan on using cash? You know, you bought back some shares here, is that the expectation to continue that? Can you just talk about use of cash going forward?
David Lee: Yes, you hit it on the nail. So we're going to continue to generate good cash flow, pay down debt, be optimistic with share purchase, and you know do all the right things to increase shareholder value.
Got it. That's helpful. That's all for me. Thanks, guys.
Thank you. Appreciate it, sir.
Speaker Change: Again, for any questions, press star 1 on your telephone keypad. Our next question will come from the line of Bill DeZellum with Tyaton Capital Management. Please go ahead.
Speaker Change: Thank you. I also want to follow up on gross margin and hoping you can provide a bit more perspective in this context, your gross, or pardon me, your sales.
Speaker Change: in December were lower than they were in September. I think that's the normal seasonal pattern.
Speaker Change: were higher in December at nearly $45 million versus about $41 million in the September quarter.
Speaker Change: So you had lower sales and higher gross profit dollars. Would you talk in more detail about that specific swing and the success there?
Speaker Change: You know, we continue to be focused on every quarter being more efficient with our operating model.
Speaker Change: So in the December quarter, we were even more efficient than the September quarter. So all those initiatives we have.
Speaker Change: to expand growth margin. Dollars and percentage are really paying off and we will continue to be focused.
on Expanding Margins.
Speaker Change: And following up on that, what initiative or initiatives were most impactful sequentially?
Speaker Change: You know, people used to ask me that about the restaurant business. What does it take to have a successful business in the restaurant business? And I used to answer, I used to quote a famous restaurateur, it's not one thing, it's a thousand little things.
Speaker Change: and so I mean it's focused around bill production efficiencies is really where there's a lot of activity as we scale that product to the production facilities so
Speaker Change: When you when you have economies of scale and you're able to reallocate and allocate
Speaker Change: production volume in a more efficient manner. I mean that's where you get these results. It's sort of like
Speaker Change: You know, you're able to fill each of the channels of need for production, the different production arenas.
Speaker Change: you know, volume, and we've been talking about this. Volume is definitely a part of that. And then the ability of us to have a seasoned workforce. We have a great workforce, a very knowledgeable workforce, and as they grow and get more seasoned on the new product lines and
Speaker Change: where we're seeing tremendous inroads and great innovation in terms of, again, becoming more efficient.
So, there's no...
Speaker Change: and neutralize working capital. And at the same time, we need to keep growing our sales because that makes it easier to do all of those things.
Speaker Change: And I think that's where my favorable surprise was, is that your sales sequentially were down, even if seasonally the norm, and yet your gross profit was up. That just seemed extraordinary.
Speaker Change: Yeah, then it also relates to how much production you've got in the quarter. We had new business coming on for production, so...
Speaker Change: Since the volume is not, you know, for manufacturing activities, volume for us is not directly related to sales always. I mean, we have, we're ramping up for new business.
Speaker Change: So, and again, the different initiatives take effect, our purchasing initiatives take effect.
Speaker Change: And that applies to volume and no volume, but having overall volume, it allows you to get those conclusions.
Speaker Change: that will then see the sales benefits in the March and following quarters.
Speaker Change: We're actually seeing a little bit of it. It's true, we do have new business that's being ramped up, but in the beginning...
Speaker Change: As you're building inventory for this new business, there's some inefficiencies because you're building some lower volume items. We should see those margins get better as we roll this business out, and that's gone quite well. Thank you.
Speaker Change: All right, that's helpful. And relative to the brake caliper ramp...
Speaker Change: up to whatever normalized volumes are, where are we at in that RAMP process?
Speaker Change: It's hard to tell that to give you a number. I will give you a number in a moment, but the one thing is you set out to begin a new category. You design a facility that you think can hit a certain benchmark.
Speaker Change: And as you become, as you operate it, you learn from it. And I'm happy to say that I think that our capacity.
Speaker Change: will end up being greater than we anticipate it to be. So our expansion opportunities in that facility would be greater. So it's a moving target as to what the denominator is. The numerator, we know what we're doing.
Um.
Speaker Change: But there's a lot of opportunity for growth that I you know, so I don't want to I mean I can give you a percentage but it's not a helpful percentage because
Speaker Change: We're more efficient at a lower percentage of capacity today than we thought we would ever be.
Speaker Change: And so, and what that means is that the factory opportunity has grown without additional, you know, capex, or we are able to produce more units and then we'll even get more efficient out of that facility as time goes on.
Speaker Change: provider in the U.S. today or not, but we're certainly up there.
Speaker Change: and that continues to be the case. And then historically, the brake caliper business has not been running efficiently simply because of the low volumes.
are having.
Speaker Change: No, no, let me just clarify one thing is that we're still doing a higher volumes but what I'm the point I'm trying to make is the capacity is actually grown from what our initial anticipation is.
Speaker Change: Again, as new product lines get more mature, they perform better.
Speaker Change: So, it's mostly accurate, but we are producing higher volumes already. But we have what I would say is additional opportunity to take that capacity up even higher than we thought it could go.
Great, thank you for the clarification and congratulations.
Thank you, appreciate the questions.
Speaker Change: That will conclude our question and answer session and I will now turn the meeting back over to Selwyn Joffe for closing remarks.
Okay, well...
Speaker Change: In summary, you know, we remain bullish about our outlook. We remain laser-focused on further efficiencies and fully benefiting from a not-easily-duplicated global platform to meet demand for non-discretionary products, as well as from our diagnostic testing capabilities.
Speaker Change: Recent proposals by the Trump administration about tariffs continue to make headlines. At this point there's a lot of speculation. We will take appropriate action as necessary, including customer surcharges to offset the tariffs on goods from Mexico and Canada should they be imposed.
Speaker Change: With regard to China, we have notified our customers that we are implementing a surcharge to offset China's recently announced tariffs.
Speaker Change: We continue to leverage our expertise and solid customer and supplier partnerships.
Speaker Change: This includes our Supply Chain Vendor Finance Program that benefits our suppliers.
Speaker Change: Our liquidity is strong, and we have the resources, capacity, and capability to enhance shareholder value.
Speaker Change: In closing, I must recognize the contributions of all our team members who are continuously focused on providing the highest level of service.
Speaker Change: We are all committed to being the industry leader for products and solutions that move our world today and tomorrow.
Speaker Change: We also appreciate the continued support of our shareholders and thank everyone again for joining us for the call. We look forward to speaking to you, with you when we host our fiscal 2025 fourth quarter call in June and at various investor conferences and meetings.
Thank you. Thank you.
Thank you.
Speaker Change: That will conclude today's meeting. Thank you all for joining. You may now disconnect.