Q1 2025 Enviri Corp Earnings Call
Good morning, My name is Cindy and I will be your conference facilitator.
At this time I would like to welcome everyone to the N Fiery Corporation first quarter 2025 release conference call.
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Speaker Change: I would now like to introduce Dave Martin Oven virus Corporation. Mr. Martin you may begin your call.
Thank you Cindy and welcome to everyone. Joining us. This morning with me today is Nick Grasberg are our chairman and Chief Executive Officer, and Tom <unk>, Our senior Vice President and Chief Financial Officer.
Speaker Change: This morning, we will discuss our results for the first quarter and our outlook for the year. We'll then take your questions before our presentation. Let me mention a few items first our quarterly earnings release and slide presentation for this call are available on our website.
Speaker Change: Second we will make statements today that are considered forward looking within the meaning of the federal Securities laws. These statements are based on our current knowledge and expectations and are subject to certain risks and uncertainties.
Speaker Change: That may cause actual results to differ materially from those forward looking statements.
Speaker Change: For a discussion of such risks and uncertainties see the risk factors section in our most recent 10-K the company undertakes no obligation to revise or update any forward looking statement.
Speaker Change: Lastly on this call we will refer to adjusted financial results that are considered non-GAAP for SEC reporting purposes. A reconciliation to GAAP results is included in the earnings release and the slide presentation.
Nick: With that being said I'll turn the call to Nick.
Speaker Change: Yeah.
Nick: Thank you, Dave and good morning, everyone.
Nick: We delivered another solid quarter and saw mostly consistent execution in each of our segments.
Nick: Clean Earth once again was a standout performer and deliver double digit earnings growth.
Nick: Despite challenging conditions in the global steel market Harsco environmental also performed well.
Nick: Seeding, our internal expectations in the quarter.
Nick: For rail in Q1 financial results were soft as anticipated. However, we were able to successfully renegotiate one of our major E. T O contracts in this segment continued to advance its operating agenda well building its backlog.
Nick: Yeah.
Nick: Key highlights for the quarter include our two environmental segments performed well with revenues and adjusted earnings essentially unchanged on an organic basis. Despite the impact of site closures and exits in harsco environmental.
Nick: Second clean Earth delivered a record first quarter results.
Nick: Third cash flow was ahead of expectations, adding further support to full year cash flow guidance of 30 to 50 million.
Nick: And finally, we during the quarter completed the rebuild of the rail leadership team with a new president and the new CFO.
Nick: Before turning to our segments, let me comment briefly on tariffs and recent global trade developments.
Nick: As you know we have a diverse group of businesses operating across many end markets and geographies.
Nick: So many benefits and challenges can be expected.
Nick: For example, our operations in Mexico, and Canada may be impacted by U S tariffs.
Nick: Recent actions by the EU to support its steel industry are much needed in potentially helpful to our business in that region.
Nick: Okay.
Nick: We recognize the significant level of macroeconomic uncertainty driven by the ongoing global trade issues and are mindful that this may potentially lead to slower economic activity and demand.
Nick: But overall, we currently do not believe that the direct tariff impact on environment would be material and we have not yet seen a meaningful shift in the underlying business or customer behavior.
Nick: Nonetheless, we will continue to closely monitor the situation.
Nick: Yeah.
Nick: Now turning to each of our businesses starting with clean Earth.
Nick: She he's margins grew by over 100 basis points and exceeded 16% in the quarter.
Nick: Our clean Earth team continues to do a remarkable job of executing against the strategic priorities with a focus on expanding service capabilities and business growth as.
Nick: As well as its industry, leading customer service.
Nick: The investments we've made in commercial resources are beginning to bear fruit.
Nick: C E business pipeline is very robust and its revenue growth in their first quarter included a good balance of price and volume.
Nick: We were expecting to see.
Nick: Operational excellence also remains a focus and we anticipate productivity improvements in the future for ongoing investments in a common it platform.
Nick: Overall, the outlook for clean Earth earnings margins and free cash flow in the coming years as positive outpacing that of our other segments and tracking ahead of the financial targets, we established for the business at our analyst Day last June.
Nick: Turning to harsco environmental the business is managing well through a difficult period in the global steel industry, which is marked by excess capacity and diminished demand in major steel consuming regions around the world.
Nick: Steel prices have recovered and customer profitability has improved in recent months, but have not yet seen an improvement in volumes or any efforts to restart idle capacity.
Nick: Trade protections that attempt to deal with excess steelmaking capacity in China and its steel exports are welcome.
Nick: These protections are needed most in Europe, which is our largest market and we're hopeful that recent actions by the EU or the beginning of positive change for our customers in that region.
Nick: Okay.
Nick: In recent years U S. Dollar strength has been a headwind for a G. So recent dollar weakness as a potential tailwind for this business.
Nick: Roughly 80% of <unk> revenues are generated outside the U S.
Nick: As a result dollar strength has negatively impacted <unk> revenues and EBITDA by roughly 100 million and $25 million over the past three years.
Nick: Given these pressures as she has been aggressively managing its capital spending implementing cost reductions and executing other improvement programs at our sites.
Nick: These efforts have positioned <unk>, well and will enable the segment to maintain underlying profitability this year and support cash flow.
Nick: While we await a recovery in the global steel market.
Nick: Moving to Harsco rail demand for our standard equipment parts and adjacent services remains strong as does the outlook for rail based business.
Nick: Healthy orders in the first quarter illustrate the strength of this business.
Nick: <unk> recent progress with our E. T O contracts, we're pleased to have successfully amended our contract with Deutsche Bahn.
Nick: We've been working on an amendment for a few quarters.
Under this contract in collaboration with our customer prototype development and testing are going well.
Nick: Our technology continues to satisfy our customer requirements and we expect to begin product homologation with this customer later this year.
Nick: In short the future risk on this contract has been diminished.
As we said before chief among the challenges in rail are a few E T O con contracts, which weighed on our consolidated earnings and cash flow.
Nick: This amendment is a positive step forward and will continue to work with D. B and our other E T O customers to reduce the risks related to these contracts.
Nick: We're also pleased to have strengthened our rail leadership team with the appointment of Gary Lauder as our new President of rail.
Nick: Gary brings considerable rail industry experience and importantly, our proven track record of operational excellence at various industrial companies.
Nick: Well as leading large <unk> projects.
Nick: We've also hired new leaders in finance and operations in recent months.
Nick: The team is focused on executing a number of key priorities, including removing the bottleneck center operations, managing our supply chain at advancing our E T O contracts.
Nick: Okay.
Nick: Turning to our 2025 outlook, we've maintained our guidance for the full year.
Nick: Our organic growth in the year will be driven by clean Earth, while they cheese performance is expected to be stable on a like for like basis.
Nick: This is an important transition year for the Companys cash flow and we expect lower net outflows in our rail contracts as well as lower pension contributions to help us generate positive cash flow.
Nick: In future years, we anticipate earnings growth and the completion of the E. T O contracts in rail will position us to generate annual free cash flow of 150 million on a consistent basis.
Nick: As we communicated during our analyst day last June.
Nick: Yeah.
Tom: I'll now turn the call over to Tom.
Tom: Thanks, Nick and good morning, everyone.
Tom: We're pleased with the positive start to the year.
Tom: With our Q1 performance exceeding our expectations for both adjusted EBITDA and free cash flow.
Tom: Both also environmental and clean the executed well in a less than ideal environment, which contributed to the better financial results.
Tom: Also in hospital rail as Nick has just said, we amended our large engineered to order or E. T O contract with Deutsche Bahn.
Tom: And that we've been working towards for a number of quarters. This amendment led to a favorable accounting adjustment in the quarter and I'll come back to this impact in a bit.
Tom: We're keeping our outlook for the year intact, while there is a tremendous amount of economic uncertainty currently the direct net the impact of U S tariffs and other trade actions globally are expected to be minimal and diary.
Tom: The recent U S. Dollar weakness. Meanwhile is helpful to harsco environmental and the company.
Tom: This positive along with a favorable start in Q1 provides us some cushion against economic volatility in the coming quarters.
Tom: Now, let me turn to our first quarter performance details starting on slide four.
Tom: In the first quarter revenues totaled $548 million, which was down approximately 4% on an organic basis.
Tom: After adjusting for the impact of FX translation and business divestitures as well as contract adjustments in rail.
Tom: Adjusted EBITDA was $67 million with our year over year comparisons skewed by negative FX and divestiture impact of $7 million.
Tom: Relative to guidance Harsco environmental benefited from from better service and product volumes in certain regions, including North America, India and the Middle East.
Tom: <unk> strong operational execution also contributed to the strong quarter.
Tom: Clean Earth face some weather had headwinds, particularly in the northeast during the quarter, which were offset by strong performance in the final two months of the quarter.
Tom: Our adjusted diluted loss per share was <unk> 18 for the quarter, excluding the impact of special items.
Tom: These special items included a favorable amount in rail totaling $11 million as a result of the contract amendment with Deutsche Bahn.
Tom: This amendment provides us additional revenue under the contract and the new delivery schedule, which lowers anticipated penalties among other impacts.
Tom: Our remaining special item charges in the quarter relating to project and restructuring costs totaled approximately $5 million.
Tom: Lastly on this slide our adjusted free cash flow for the quarter was negative $13 million.
Tom: Q1 is traditionally a weak cash flow period for the company.
Tom: With that said, we are focused on delivering our cash flow targets and performed better than planned in the quarter mainly in AG.
Tom: Compared with the prior year quarter of free cash flow was little changed as the benefits of lower pension contributions reduced capital spending and the utilization of an additional $10 million under oak accounts receivable facility were offset by divestitures and lower cash earnings.
Tom: Now please turn to slide five and I'll harsco environmental segments.
Tom: Segment revenues totaled $243 million and adjusted EBITDA totaled $39 million.
Tom: On a year over year change excuse me in earnings is the result of lower volumes due to site exits and closures as well as FX impacts and divestitures.
Tom: These items were partially offset by operating initiatives, including our efforts to improve performance at a limited number of underperforming locations.
Tom: On a same store or continuing site basis steel production at our customer locations declined less than 1% compared with the prior year, while our service volumes and earnings at these sites were up slightly year over year relative.
Tom: Relative to the first quarter of 2020 for steel production was weakest in Asia, the Middle East and Latin America with this impact offset by higher volumes in India and Europe.
Tom: Operating rates or production rates at our customer sites in Q1 remained low and were little changed from Q4.
Tom: And while customer production levels did improve somewhat late in the quarter, we don't anticipate volumes on average in this.
Tom: Improving in the second quarter.
Speaker Change: Hi, as steel prices globally have yet to translate into higher steel output, but a cheese operating leverage remains significant and it is poised to benefit when volumes recover.
Speaker Change: On U S steel tariffs and related trade actions elsewhere, the direct impacts of mixed and likely not material as we currently view the situation, which Nick mentioned earlier.
Speaker Change: Next please turn to slide six to discuss cleanup.
Speaker Change: For the quarter revenues totaled $235 million.
Speaker Change: And adjusted EBITDA reached $38 million EBITDA increased by 12% supported by revenue growth of 4% and this result is a first quarter record for C U E.
Speaker Change: Price and volume contributed equally to the revenue increase and cleanup earnings growth is attributable to these factors as well as cost efficiencies.
Speaker Change: The volume gains were driven by retail and health care within hazardous materials.
Speaker Change: As well as higher soil dredged throughput.
Speaker Change: As it is materials revenues increased 3% to $198 million.
Speaker Change: Soil dredged sales rose, 9% to $37 million.
Speaker Change: Now, please turn to slide seven and our rail business.
Speaker Change: Rail revenues totaled $70 million and its adjusted EBITDA loss was $2 million in the fourth quarter.
Speaker Change: This was in line with our expectations for the quarter with a year over year EBITDA change due to lower product and service volumes as well as the less favorable mix.
Speaker Change: As Nick mentioned, we continued to strengthen our rail team and address the operational and supply chain challenges faced by this business.
Speaker Change: We're looking forward to having Gary loud to join us.
Speaker Change: In rail finance I brought in a new leader someone that is hard charging and who I've worked with successfully in the past Im confident his contributions will be significant.
Speaker Change: On our engineered to order contracts the Deutsche Upon Amendment mentioned earlier is a key milestone that we are pleased to have completed we continue to assess levers to limit our financial risks and exposures on these contracts.
Speaker Change: Moving to the base business demand for rail standard equipment and services remains healthy with strong bookings in the first quarter as we've said before the base business in rail is a valuable part of our portfolio. It's a profitable cash generative business with a strong reputation in the marketplace.
Speaker Change: Now, let me turn to our full year outlook on slide eight.
Speaker Change: Our revenue and EBITDA guidance for the year is unchanged for the company in each of our segments company EBITDA is expected to be within a range of $305 million to $325 million.
Speaker Change: And free cash flow is projected to be $30 million to $50 million.
Speaker Change: As mentioned earlier.
Speaker Change: We likely have some upside from our strong Q1 performance and a weaker U S. Dollar is sustained.
Speaker Change: However, given the current economics uncertainty like most other companies our visibility into the second half of the year is limited. So why do we believe it's appropriate for us to continue to give guidance. We also believe it's prudent to keep it unchanged.
Speaker Change: Let me conclude on slide nine with our second quarter guidance Q2, adjusted EBITDA is expected to range from 65 million to $75 million.
Speaker Change: This range reflects what we know today and a stable.
Speaker Change: Global economy.
Speaker Change: H <unk> results are expected to be below the prior year quarter, reflecting primarily the impact of divestitures site closures and exits and a cheese performance should be similar to the just completed quarter.
Speaker Change: Clean Earth's performance is projected to improve year over year due to price and volumes and for rail adjusted earnings are anticipated to be similar to Q1.
Speaker Change: Our full year outlook for rail reflects an operational improvement and higher throughput in the second half of the year.
Speaker Change: Lastly on Q2, we expect free cash flow to be negative as some of the favorability in Q1 becomes a use of cash in the current quarter.
Speaker Change: Thanks, and I'll now hand, the call back to the operator for Q&A.
Speaker Change: Okay.
Speaker Change: We will now begin the question and answer session.
Speaker Change: To ask a question you May press Star then one on your telephone keypad.
Speaker Change: If you are using a speaker phone please pick up your handset before pressing the keys.
Speaker Change: To withdraw from the question queue. Please press Star then two.
Speaker Change: At this time, we will pause momentarily to assemble our roster.
Speaker Change: Our first question comes from Larry Solow.
Speaker Change: Though.
Speaker Change: C. J S Securities go ahead please.
Speaker Change: Great. Good morning, Thanks for taking the questions I guess first question just on the on the largest segment obviously environmental.
Speaker Change: It sounds like you're you're leaving you are leaving guidance basically unchanged.
Speaker Change: I guess can you just run us through some of the puts and takes I guess not a big impact direct impact from tariffs what are your thoughts kind of on a steel production in the economy going forward.
Speaker Change: I guess, that's sort of a bad guy for you, but the offset there would be the currency I'm benefit can you kind of just give us.
Speaker Change: Your sort of high level view on environmental and what your.
Speaker Change: Volume.
Speaker Change: What what youre incorporating for volume projections this year.
Larry: Yeah, Hi, Larry.
Speaker Change: I guess my first comment would be that when you say a cheese our largest segment.
Speaker Change: Clean Earth is a its kind of right on top of it now in terms of profitability.
Speaker Change: Yeah, certainly generates more more cash flow and our revenue was about the same so it's that that has been shifting the last several quarters and we're basically there at the moment so anyway.
Speaker Change: Yeah. So on a G. I you know, we expect are a little bit of volume growth. The rest of the year the comps to last year relatively.
Speaker Change: Favorable for US you mentioned the benefits of <unk>.
Speaker Change: Currency.
Speaker Change: We also have a number of efficiency and cost reduction programs that when when added to a bit of volume growth will mitigate the impact of.
Speaker Change: Site.
Speaker Change: Shutdowns and exits last year.
Speaker Change: But I think that the the wave of.
Speaker Change: Site shutdowns in the second half of last year, we think is over.
Speaker Change: And so we saw that in the first quarter, where the business very much performed as we expected it to when there were no no significant customer surprises.
Speaker Change: Got it and on clean Earth.
Speaker Change: It sounds like things are still going very well there what what what are your sort of assumptions as you go forward. This year it sounds like you're still getting some price.
Speaker Change: How do you view volume you know the hazardous waste.
Speaker Change: Yeah.
Speaker Change: The economic drop.
Speaker Change: Backdrop the way it is today.
Speaker Change: Are you concerned of a slowdown what are your customers, telling you clearly you're mostly domestic right you all domestic but do you have any of your customers have international exposure, which may impact them, and then be a kind of indirect and back to you.
Speaker Change: Hum well first of all I'd say that more so than the past couple of years, we're looking for volume.
Speaker Change: To be a larger contributor to earnings growth this year.
Speaker Change: We saw a bit of that in the first quarter, we have reasonable visibility to that in the second quarter.
Speaker Change: And so.
Speaker Change: So that that's.
Speaker Change: As we move forward.
Speaker Change: Relative to how we've generated significant EBITDA growth the past two or three years.
Speaker Change: Volume and.
Speaker Change: Uh huh.
Speaker Change: He will play a bigger role as well as.
Speaker Change: What we expect to be significant benefits from what we call the one clean Earth.
Speaker Change: Initiative, which focuses on order to invoice.
Speaker Change:
Speaker Change: We've not yet seen a slow down yet you know often times are our soils business.
Speaker Change: Sometimes an early indicator of.
Speaker Change: Of of a downturn in the economy, because many of the projects that were in our backlog.
Speaker Change: Don't start and get deferred we we havent seen that yet so.
Speaker Change: Yeah, So that's to say across clean earth in each of the components.
Speaker Change: Theres really no no signs yet that the.
Speaker Change: The economy is slowing is that our customers are being more cautious and are cutting back production or consumers are limiting their spending we haven't seen haven't seen that yet but of course, we're concerned about it we have not.
Speaker Change: <unk> built it into our into our guidance those concerns we feel that we have levers.
Speaker Change: Our disposal to to enable us to mitigate the impact of a slowdown in and still achieve.
Speaker Change: Achieve our numbers for the year, but at this point, that's not an assumption that we're making on.
Speaker Change: Great I appreciate all that call it in effect.
Speaker Change: Okay.
Speaker Change: The next question comes from Rob Brown of Lake Street Capital Markets go ahead. Please.
Rob Brown: Hi, good morning.
Rob Brown: Okay.
Rob Brown: Just wanted to follow up on the rail Eto contract renegotiation.
Rob Brown: Risk has come way down, what's what's sort of the remaining risk there.
Rob Brown: I guess, what's the status.
Rob Brown: Other contract that Youre working group.
Rob Brown: Yeah.
Speaker Change: Yeah, just hi, Hi, Robert Stone basket, I can speak a little bit to that so the I touched on it briefly in my prepared remarks, but the essence of the amendment. It recognize that some of the cost inflation that we've experienced and the customer has agreed.
Rob Brown: To offset that.
Rob Brown: But for us with higher revenue higher pricing effectively on the vehicles, we have to deliver and then we also mutually agreed on a new delivery schedule, which are which is a lot more realistic and therefore.
Rob Brown: It uses the <unk> the risk of future penalties for being late.
Rob Brown: In terms of remaining risk it is sort of what we've talked before.
Rob Brown: For all of these long term very highly complicated engineering projects.
Rob Brown: Until the first one or two vehicles has produced its tested.
Rob Brown: On the regulations in the country, where we're delivering it to the customer was accepted it until that happens there's always the risk that we need to go back and tweak the design and that sort of thing.
Rob Brown: In this particular case, the customer and us have been sitting side by side as we built the vehicle. The very first one is built and is being commissioned right now will go stop going through the testing later on in the year and so at this point, we feel fairly comfortable that.
Rob Brown: The risks are minimal, but they've been the larger part of them remain until that testing process or what is called home obligation is completed which will be towards the middle to.
Rob Brown: Q3 also next year.
Speaker Change: Okay, Great and then on the on the clean Earth business you had good margin expansion I guess, how sustainable is that and I guess, how much further can you get with these <unk>.
Rob Brown: Improvements that youre working on.
Rob Brown: Well as you've seen we've been steadily improving margins and clean Earth for three three years or so.
Rob Brown: The the X factor in a given quarter often times is the mix within our soil in dredge.
Rob Brown: Projects.
Rob Brown: And so you can get a little bit of noise quarter to quarter.
Rob Brown: Driven by that but we I think last year at the.
Rob Brown: Analyst day, we kind of projected margins EBITDA margins for clean Earth, it's 17% or so by 2027, and we're certainly tracking ahead of that.
Rob Brown: And even though we've not kind of officially updated our view on margin potential.
Rob Brown: It's safe to say that we now expect.
Rob Brown: Margins and clean Earth over time to be above that 17%.
Rob Brown: I think it's also important to keep in mind. We said this before that if you compare the clean Earth EBITDA margins to others in the industry.
Rob Brown: We're a few points lower but we do not have those capital intensive disposal assets that our peers have so if you look at EBITDA minus capex margins.
Rob Brown: We compare favorably.
Rob Brown: Hello.
Rob Brown: Okay.
Rob Brown: Rob are you there so.
Rob Brown: Cindy you can move on.
Speaker Change: Okay. Thank you again, if you have a question. Please press Star then one.
Speaker Change: Our next question comes from David Stanton of BMO capital markets go ahead. Please.
Davis: Hi, Good morning. This is Davis on for Jeff Dodge.
Speaker Change: Good morning, good morning.
Speaker Change: So you've noted some of the pressure in the steel industry coming from that excess capacity and I know you touched on this but I'm just wondering if you could expand on that a little bit and maybe what you're seeing in some of the underlying markets.
Speaker Change: Early on following the closure of Q1.
Speaker Change: Any changes there.
Speaker Change: Well as you know the excess capacity in the steel industry are driven by that of China has been.
Speaker Change: A factor in this industry for many years at this point.
Speaker Change: And we are seeing encouraging signs.
Speaker Change: That would mitigate the impact of that primarily in the EU.
Speaker Change: Which as we've said is our largest market so that that should have an impact on our customer profitability.
Speaker Change: It doesn't really of course impact.
Speaker Change: Demand for steel.
Speaker Change: So we've not yet seen a lift we are expecting.
Speaker Change: Capacity utilization at our sites to be a bit higher this year.
Speaker Change: And volume growth to be a little bit up.
Speaker Change: Against or are fairly easy comparative second half of 2024.
Speaker Change: But I think it's fair to say that what we've seen in the first quarter and what we expect in the second quarter is largely what.
Speaker Change: We we expected which is fairly flat.
Speaker Change:
Speaker Change: Volume growth driven by lackluster demand for steel.
Speaker Change: I'll I'll, just build on that and Nick touched on it on an earlier answer to another question, but.
Speaker Change: When we look at the the the makeup or the profile for the year.
Speaker Change: The on <unk>, we are expecting a stronger second half than the first half what's underpinning that as Nick said, we don't assume a change in the macro environment. We assume that's going to stay about the same in terms of in terms of volumes et cetera, but we have several new sites.
Speaker Change: That we're bringing on that will ramp up.
Speaker Change: We have a more favorable compare year on year, because we exited those other sites in the second half of last year, and then and so we expect that to drive additional revenue and EBITDA and then we have operational improvements.
Speaker Change: So procurement initiatives operational excellence initiatives.
Speaker Change: It will also increase margins in the second half.
Speaker Change: And so that's how we see that business progressing this year.
Speaker Change: Okay got it. Thank you I appreciate the color there and then.
Speaker Change: So solid results in our clean Earth business continues to progress nicely. So you noted a lot of that is from better pricing and volumes, but also some efficiency initiatives as well.
Speaker Change: Are most of those efficiency initiatives due to the improvement or is there anything else that you can call out there.
Speaker Change: No we continue to gain.
Speaker Change: Gain efficiency from how we're routing the material that we handle inbound and outbound.
Speaker Change: We're also gaining efficiency from.
Speaker Change: How we're disposing of some of the waste.
Speaker Change: Finding lower cost outlets.
Speaker Change: And executing some some further processing.
Speaker Change: It enables us to avoid the more costly disposal options.
Speaker Change: So yes, its broad based I think going forward.
Speaker Change: Let's say in 2026, when this one clean Earth initiative is.
Speaker Change: Mostly behind us.
Speaker Change: We expect that that to drive a pretty significant efficiencies in our.
Speaker Change: SG&A structure.
Speaker Change: But I think we continue to be pleasantly surprised by margin enhancement opportunities and we're not.
Speaker Change: Yet reaching that point of diminishing returns on on on margin growth potential.
Speaker Change: And that's very encouraging.
Speaker Change: I won't say, we're just getting started because we've had three years of this but.
Speaker Change: We're certainly not in the later innings I would put it that way of realizing margin growth opportunities and clean Earth.
Speaker Change: Thank you I appreciate that that's it for me I'll turn it over.
Speaker Change: This concludes our question and answer session I would like to turn the conference back over to Dave Martin for any closing remarks.
Dave Martin: Thank you Cindy and thanks for everyone. Joining us this morning feel free to contact me with any follow up questions. We appreciate your interest in via <unk> and look forward to speaking with many of you in the coming weeks. Thank you.
Dave Martin: The conference has now ended.
Dave Martin: You may please disconnect. Thank you.