Q1 2025 Alpha Metallurgical Resources Inc Earnings Call
Speaker Change: Greetings and welcome to the Alpha Metallurgical Resources First Quarter 2025 Results Conference
Speaker Change: At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation.
Speaker Change: Please note this conference is being recorded. I will now turn the conference over to your host, Emily Eauquin, Senior Vice President, Industrial Relations, and Communications. You may begin.
Thank you Rob, and good morning everyone.
Speaker Change: Before we get started, let me remind you that during our prepared remarks our comments regarding anticipated business and financial performance contain forward-looking statements and actual results may differ materially from those discussed.
Speaker Change: For more information regarding forward-looking statements and some of the factors that can affect them, please refer to the company's first quarter 2025 earnings release and the associated SEC filing.
Speaker Change: Participating on the call today are Alpha's Chief Executive Officer Andy Eidson and our President and Chief Operating Officer Jason Whitehead.
Jason Whitehead: Also, participating on the call are Todd Muncie, our Chief Financial Officer, and Dan Horn, our Chief Commercial Officer. With that, I will turn the call over to Andy.
Thanks, Emily. Good morning, everyone.
Jason Whitehead: Today we announce financial results for the first quarter of 2025. These include a adjusted EBITDA of $5.7 million and 3.8 million times shipped in the quarter.
Jason Whitehead: As we announced on our last earnings call, the extreme weather of January and February negatively impacted our first quarter results, most notably in cost of coal-fills and tonned
Jason Whitehead: As a reminder, the severe weather caused a confluence of events, which included loss shifts from absenteeism, power outages, snow and flooding impacts, as well as transportation delays. At and around our operations, but also along the way to DTA, which experienced its own share of
Jason Whitehead: Metallurgical coal indexes remained depressed in the first quarter and these poor pricing conditions continue to weigh on our realizations.
Jason Whitehead: From a global macro perspective weak steel demand persists now with increased levels of uncertainty around the impact of terrorists.
Jason Whitehead: And shifting trade policies.
Jason Whitehead: Barring a significant event or boost to global economic activity, we expect to coming months remained challenging and we maintain a cautious outlook for the rest of the year.
Jason Whitehead: As we have communicated for several quarters, our focus continues to be on liquidity and safeguarding the companys ability to financially whether these market conditions.
Jason Whitehead: To that end, we've taken some difficult actions, including cutting additional production of higher cost operations and reducing wages across the enterprise.
Jason Whitehead: These kinds of decisions are never taken lightly as we recognized a negative impact they can have on our workforce and their families.
Jason Whitehead: However, we believe these are necessary responses to the difficult circumstances of the current marketplace.
Jason Whitehead: Looking at the balance of 2025, we announced further adjustments to sales volume guidance, considering considering the reduced production profile, we anticipate for the year.
Jason Whitehead: At the midpoint of our adjusted guidance, we now expect to ship $15 3 million tons of coal this year down $1 4 million tonnes from our initial midpoint of $6 $16 7 million tonnes announced in November of 2024.
Jason Whitehead: We've also reduced our capex guidance by $27 million at the midpoint bring the range down to $130 million to $150 million.
Jason Whitehead: We believe these adjustments are possible without compromising safety anywhere in the organization.
Jason Whitehead: We're also confident that our Kingston walk it project can continue on schedule, even with the downward revision revision to our plan development Capex for the year.
Jason Whitehead: In keeping with our focus on liquidity Todd and his team have successfully secured an amendment to our asset based lending facility, which closed earlier this week.
Jason Whitehead: This is a positive development and another example of actions, we're taking to protect the business.
Jason Whitehead: For more information on the amended and extended ABL and our Q1 financial results I'll turn the call over to Todd.
Todd Muncy: Thanks, Andy you were pleased to announce the increase of the size of our ABL facility from its prior level of $155 million to $225 million.
Todd Muncy: The company May also request an increase to the capacity of the facility of up to an additional $75 million provided that $25 million Shelby solely for cash collateralized letters of credit along with the ABL is increase in size, we have extended its maturity to may of 2029.
Todd Muncy: Detailed terms of the agreement may be found in this morning's press release and SEC filings.
Todd Muncy: The amended facility provides alpha access to additional liquidity and we value the optionality that this facility provides.
Todd Muncy: Turning now to our financial results for the quarter adjusted EBITDA for the first quarter was $5 $7 million down from $53 million in the fourth quarter of 2024.
Todd Muncy: We sold $3 8 million tonnes in Q1 down from the $4 1 million tons sold in Q4.
Todd Muncy: That segment realizations decreased quarter over quarter with an average realization of $118.61 in Q1 down from $127.84 for the fourth quarter.
Todd Muncy: Export met tons priced against Atlantic indices, and other pricing mechanisms in the first quarter realized $119 39 per ton well export coal priced on Australia and indices realized $107.44.
Todd Muncy: These results are compared to realizations of $122 24 per tonne at a $124.71 respectively in the fourth quarter.
Todd Muncy: The realisation for our metallurgical sales in Q1 was a total weighted average of $122 eight per ton down from $132 63 per tonne in Q4.
Todd Muncy: Realizations and the incidental thermal portion of the met segment increased to $79 39 per ton in Q1 as compared to $75 39 per ton in the fourth quarter.
Todd Muncy: Also coal sales for our met segment increased to $110 34 per ton in the first quarter up from $108 82 per ton in Q4.
Todd Muncy: This increase in cost was primarily driven by the previously disclosed weather related issues.
Todd Muncy: SG&A, excluding noncash stock compensation and nonrecurring items decreased to $12 $6 million in the first quarter as compared to $14 $3 million in the fourth quarter.
Todd Muncy: Capex for the quarter was $38 $5 million down from $42 $7 million in Q4.
Moving to the balance sheet and cash flows as of March 31, 2025, we had $448 million in unrestricted cash compared to $481 $6 million of unrestricted cash as of December 31 2024.
Todd Muncy: We had $112 $9 million in unused availability under our ABL at the end of the first quarter, partially offset by minimum required liquidity of $75 million.
Todd Muncy: As of the end of March Alpha had total liquidity of 480 $518 million.
Todd Muncy: One from $519 $4 million at the end of December.
Todd Muncy: Cash provided by operating activities was $22 $2 million in the first quarter down from $56 $3 million in Q4.
Todd Muncy: As of March 31st our ABL facility had no borrowings and $42 $1 million of letters of credit outstanding.
Todd Muncy: Looking to guidance, we reduced our metallurgical coal shipment guidance for the year to a range of 13.8 to $14 8 million tonnes and our thermal coal sales volumes to a range of 800000 to one 2 million tons.
Todd Muncy: These adjustments bring our total shipment expectations for the year down to a range of $14 six to 16 million tonnes.
Todd Muncy: We also lowered capex guidance to a new range of $130 million to $150 million for 2025.
Todd Muncy: Which equates to a reduction of $27 million at the midpoint from our prior range. The $27 million is comprised of approximately $8 million in development capex of $19 million and maintenance capital.
Todd Muncy: In terms of our committed position for 2025 at the midpoint of guidance, 50% of our metallurgical tonnage in the met segment is committed and priced at an average price of $133.04.
Todd Muncy: Another 45% of our met tonnage for the year as committed but not yet price.
Todd Muncy: Thermal byproduct portion of the Med segment is fully committed and priced at the midpoint of guidance at an average price of $80.75.
Todd Muncy: Due to the continued softness in the met coal markets, we did not repurchase any shares in the first quarter under the company's share buyback program.
Jason Whitehead: I will now turn the call over to Jason to provide an update on operations.
Jason Whitehead: Thanks, Todd good morning, everyone.
Jason Whitehead: Looking at the first quarter results, our operation experienced significant challenges related to severe weather that caused our costs to go up.
Jason Whitehead: Further contributing to the atypical high costs in the quarter were some geologic challenges on three of our active underground mining sections, all three sections, where required demand through undesirable areas in order to develop access into better reserves.
Jason Whitehead: Once we got past the weather related issues I'm pleased to report that we did post better costs in March and expect those improvements to remain through the second quarter.
Jason Whitehead: We also expect the momentum to continue as the impact of additional actions, we've taken to reduce costs begin to flow through the business.
Jason Whitehead: While difficult decisions to make.
Jason Whitehead: Recently idled roughly 500000 tons of production on an annualized basis between the closure of our long branch surface mine in Virginia, and the idling of a section where approximately a third of our productive capacity at our Gary Fort mine in West Virginia.
Jason Whitehead: These two operations were among health is higher cost mines, which factored into our decision making.
Jason Whitehead: In both instances, we look for opportunities to match impacted miners with other job opportunities in the company.
Jason Whitehead: These efforts reduced the overall number of layoffs and helped he'll human resources needs and other parts of the company.
Jason Whitehead: Additionally, at the end of March we announced market driven pay reductions across the organization to better align our compensation rates the vastly weakened market conditions.
Jason Whitehead: As we've said on several calls in the past the labor market coming out of Covid was extremely tight and demanded significant incremental investment to attract and retain our skilled workforce.
Jason Whitehead: Now that market conditions have changed significantly these wage adjustments, which just went into effect a couple of weeks ago better match, our business to the market reality.
Jason Whitehead: Turning to the work happening on Kingston, Wildcat, we continue to see progress across many aspects of the mine development project Wildcat is our new low vol mine impacts West Virginia.
Jason Whitehead: The slope development now approximately 75% complete with our crews having bush to a depth of over 1800 feet.
Jason Whitehead: Construction is underway on sporting structures like there are alcohol load out attacks and the offload or facility at our mammoth preparation plant.
Jason Whitehead: Importantly, we believe we can continue the project safely and on our existing timeline, all trimming roughly $8 million from the development Capex budget for this year.
Jason Whitehead: We remain optimistic about the ability to begin taking development cuts in coal at the end of 2025 and ramping up in 2026 to a full run rate, which we expect to be approximately 1 million 1 million tons per year.
Dan Horn: Those operational updates I will now turn the call over to Dan for some detail on the market.
Dan Horn: Thanks, Jason and good morning, everyone.
Dan Horn: Metallurgical coal markets remained under pressure during the first few months of 2025 with pricing levels deteriorating during Q1 because of the depressed steel demand.
Dan Horn: Cross the globe.
Dan Horn: Increased economic uncertainty exacerbated by significant shifts in trade policy in recent weeks is expected to produce continued volatility.
Dan Horn: During the first quarter of 2025, all four indices that also closely monitors fell 8% or more throughout the quarter with the Australian premium low vol index, representing the most significant drop of 15, 5%.
Dan Horn: The Australia, the Australian premium low Vol index decreased from $199 90 per metric ton at the beginning of January to $169 per metric ton at the end of March.
Dan Horn: U S East Coast Global Index fell from $190 per metric ton in January to $174 per metric ton in March.
Dan Horn: The U S East Coast Carboy index decreased from $185 per metric ton at the beginning of the quarter $268 per metric ton at quarter close and finally, the east coast, probably won't be index moved from $153 per metric ton to $157 per metric ton at quarter end.
Dan Horn: In recent weeks all four indices have increased from their quarter end levels as of May eight 2025, the Australian premium low Vol index increased.
Dan Horn: The increase from quarter close levels to $190 50 per metric ton U S East Coast low Vol High vol, a little a and high vol. It'll be indices measured $181 $172 50, and $159 per ton respectively as of the same date.
Dan Horn: The seaborne market.
Dan Horn: On the seaborne thermal market. The API two index was $111 30 per metric ton at the beginning of January and decreased to $104.25 per metric ton on March 31st 2025.
Dan Horn: Since then the API index. If you had to index has dropped to $98 and 80 per metric ton as of May eight.
Dan Horn: While the indices have been moving slightly higher in recent weeks isolated circumstances are most likely influencing these movements higher.
Dan Horn: Macroeconomic factors that underpin metallurgical markets like steel demand and economic growth.
Dan Horn: To show weakness.
Dan Horn: Uncertainty created by the threat of trade Wars is also weighed on growth projections for the near term.
Dan Horn: In their world economic outlook published on April 22025, the International Monetary fund projected a slowdown in economic growth across the world because of newly announced U S. Tariffs that if sustained will be the highest in this century and likely resulted in considerably higher global rate if counter tariffs are imposed.
Dan Horn: <unk>.
Dan Horn: The IMF also noted the likelihood of inflation rising in connection with the higher tariff rates.
Dan Horn: The author of the authors of the report acknowledges the complexities and unpredictability of potentially worsening trade tensions tightened financial conditions and the effect of tariffs on exchange rates.
Dan Horn: Importantly, the IMF noted that easing trade policy stances or new trade agreements could immediately and positively influence global growth prospects.
Dan Horn: An example of this rapidly shift shifting environment why isn't the proposed action put forward by the United States Trade representative in his section 301 investigation of China's targeting of the maritime logistics in shipbuilding sectors, where dominance.
Dan Horn: Like many other companies and trade organizations offer submitted a letter during the public comment period expressing concern about the proposed vessel fees and their potential negative impacts on our business.
Dan Horn: Following hearings in the comment period, the office of the U S. Trade representative provided revised guidance on the vessel fee structure and timeline.
Dan Horn: We are grateful that the most recent guidance details are in our opinion much improved and include exemptions for empty vessels coming into American ports.
Dan Horn: If the projected actually move forward based on the revised proposal, we no longer believe alpha will experience any related material adverse impacts.
Dan Horn: We continue to watch the shifting tariff and trade landscape for any other potential impacts staff.
Dan Horn: Lastly, the team of DTA is currently working through the two week outage, we mentioned on our last call. As a reminder, this all just part of the multi year program to upgrade equipment and infrastructure at the facility.
Dan Horn: We worked with D T H Lee leadership in advanced to plan for this period of downtime and minimize disruption to our shipping operations. However, it's reasonable to expect some shipments could be delayed as a result, we expect full utilization of the facility to resume by may 18th.
Speaker Change: And with that operator, we are now ready to open the call for questions.
Dan Horn: Thank you.
Dan Horn: This time, we'll be conducting a question and answer session if you'd like to ask a question. Please press star one on your telephone keypad.
Dan Horn: One moment, please while we poll for questions.
Speaker Change: Our first question comes from Nick Childs with B Riley Securities. Please proceed with your question.
Nick Childs: Thank you operator, good morning, everyone.
Speaker Change: Kurt Jason's comment it sounds like there have been some more recent cost cutting measures in <unk>.
Speaker Change: You've maintained your cost guidance. So I imagine that these measures have mostly offset the loss of fixed cost absorption, but curious if you had any additional thoughts and how we should really think about cadence of costs from here. Thank you very much.
Speaker Change: Yeah.
Nick Childs: Hey, Nick.
Speaker Change: Yeah that that was an important thing to us.
Nick Childs: As you as you picked up on we've now taken.
Nick Childs: Well over 1 million tons out of our original guidance from last November as far as production and sales in a while we did blip up our cost guidance a little bit back in February being able to take that many tons out while continuing to.
Nick Childs: Hold guidance relatively firm is a pretty good accomplishment. The team has worked really hard to do that.
Nick Childs: I do think as we continue through the year, we'll maintain more.
Nick Childs: More pressure.
Nick Childs: Obviously, all options remain on the table and there could be some other opportunities where some mines, maybe aren't performing the way we need them to them. This market, but I think at this point, we feel like we're in pretty good shape with the portfolio and also I think the team's done a really nice job of focusing on the areas to.
Jason Whitehead: To improve that can be improved they're always more opportunities Jason likes to refer to the land of opportunity we've always got more.
Jason Whitehead: Room to make improvements and we stay pretty acutely focused on that.
Jason Whitehead: That's very helpful. I appreciate that.
Jason Whitehead: Just on on really the volumes and the Capex.
Jason Whitehead: Should we think about your $35 million Capex cut at the mid point should we think about this as primarily growth related and so.
Jason Whitehead: What would you ultimately need to see to bring some of these growth projects.
Jason Whitehead: Back into production and maybe just in response to your.
Jason Whitehead: Comments, just stand I mean.
Speaker Change: Is there a way to quantify.
Jason Whitehead: Potential downside, we could see guidance from here.
Jason Whitehead: Yeah.
Jason Whitehead: If the market remains unchanged. Thank you.
Speaker Change: Jason I'll take the first part of that at least but I think most of the capital reductions are related to the.
Speaker Change: The closures that we announced earlier today and it's really about just re racking and redeploying the assets from those closures to the offset.
Speaker Change: Adams that were budgeted for the other operations in the company.
Speaker Change: Additionally, there's a little bit of of growth Capex that we've decided to take on in house and take take margins away from third party providers and you know that.
Speaker Change: We see some.
Speaker Change: The real opportunity there to reduction.
Speaker Change: Reduced spend so really.
Speaker Change: I don't see any impact on the future of the business.
Speaker Change: Any of these changes.
Speaker Change: Yeah, and Nick just to reiterate we're still full steam ahead on the cadence of Wildcat project and I'll review. This is one of the more important projects we've had in a long time.
Speaker Change: Considering it's a premium low vol product just over a million tons per year.
Speaker Change: <unk> when it's at its full run rate. So we're continuing that project as Jason mentioned, we the team found some opportunities to bring some some of that capital in house do similar work with our own team and reduce the installation costs, but the project is still.
Speaker Change: 100% moving forward.
Speaker Change: That's good to hear thanks for that Jason in India.
Speaker Change: Just one more if I could on the realization side, our realizations, obviously remained under pressure so.
Speaker Change: And I was wondering if you could just speak to mix in the quarters ahead and kind of what youre seeing.
Speaker Change: Out there.
Speaker Change: For end market, whether it be from a.
Speaker Change: CFR basis, some of the transportation differentials.
Speaker Change: Any considerations as we model future quarters.
Yes, well, we don't at all but we do we do very little CFR business. The majority of it is all F&B vessel.
Speaker Change: So there's certainly the freight market has been kind of exciting for a while it's calmed down.
Speaker Change: Just with the global slowdown in Ocean freight generally is.
Speaker Change: Rates are not very high compared to historical so.
Speaker Change: The challenge in the coming quarters as simply the steel business, Utah.
Speaker Change: How good the steel business will be.
Speaker Change: We'll tell you.
Speaker Change: The prices move up because we believe they will as demand increases, but we're simply not seeing.
Speaker Change: The growth in steel demand that we thought we'd see.
Thanks for that Dan.
Speaker Change: Hey, guys.
You guys continued best of luck. Thank you.
Speaker Change: Okay.
Speaker Change: Thanks, Nick.
Speaker Change: Yeah.
Speaker Change: Our next question comes from Nathan Martin with the Benchmark Company. Please proceed with your question.
Nathan Martin: And thanks, operator, good morning, everyone.
Nathan Martin: Full year shipment guidance of 700000 tons at the midpoint.
Speaker Change: That all export was there any domestic and there maybe how many tons do you guys expect to ship domestic versus export from 25 at this point and then with the two operations coming offline. Jason I think you said, a one branch and Terry Fork.
Nathan Martin: Does that impact your.
Nathan Martin: Polity mix at all it sounds like cost per ton on there a little bit higher cost, but you guys still feel confidence with guidance.
Nathan Martin: Yes, Nate this is Dan hey on the.
Nathan Martin: Those tons that came offline or are going to would be export tons.
Nathan Martin: Jerry Fort mine does ship, some domestic business, but we will continue to be.
Nathan Martin: Being able to ship those orders so think of that reduction is coming off of the seaborne market.
Nathan Martin: Oh I'll take part of the question you named adjacent there too.
Nathan Martin: The coal that came off as all highball.
Nathan Martin: Some of it is rather high quality, but it's all high vol Theres no.
Nathan Martin: No medium ball or low vol in that number.
Dan Horn: Okay. Thanks, Dan I appreciate that.
Dan Horn: And then maybe going back to the last question that Nick asked as far as the average realized price per ton for you guys and really most of your peers, probably a little bit lower than most had expected here in the first.
Dan Horn: First quarter.
Speaker Change: Do you guys believe there's some discounting may be going on the published indices at this point to move coal just would appreciate any thoughts you have there Dan.
Dan Horn: Yeah.
Speaker Change: Well I think I've said this before on these calls Nate.
Speaker Change: Weak market, there tends to be more discounting against the indices and the strong market.
Speaker Change: You tend to see flat or even premiums and we're obviously in a weaker market. So short answer is yes. There is some discounting against against the indices, but not in every case I can tell you. We recently concluded a piece of business, where we got a premium to the index. So it's not universal that every time is sold at a discount.
Speaker Change: Okay, great to hear.
Speaker Change: And then maybe just one more bigger picture I think Andy last quarter, you talked about.
Speaker Change: And your eyes open for other potential opportunities to fortify your operations.
Speaker Change: Any updates there what you're seeing in the marketplace.
Speaker Change: No and it's pretty obviously, there's there are a lot of opportunities out there a lot of a lot of distressed companies and things being shot at this point, we kind of go through the filter of of what's available we have to find something that accretion as the challenge here, we don't want to be.
Speaker Change: <unk>.
Speaker Change: Approaching assets that could put an additional strain.
Speaker Change: On the enterprise, while we don't have great visibility on when this thing turns around so it's little bit challenging to pursue M&A right now and also we've got to find something that truly makes alpha better.
Speaker Change: And and so for that reason, we remain focused on the internal opportunities, particularly the Kingston Wildcat mine is as our main focus for now because it most definitely we will make the portfolio stronger.
Speaker Change: Stronger in the very near term so right now it's kind of still a wait and see we're always open to options but.
Speaker Change: We've not seen anything that were ready to act upon just yet.
Speaker Change: Yeah, I think that's probably the prudent thing makes sense I appreciate that and I'll leave it there guys and best of luck going forward.
Speaker Change: Thanks, and I appreciate you.
Speaker Change: We have an additional question from Nick Giles with B Riley Securities. Please proceed with your question.
Thanks, so much for taking my follow up.
Speaker Change: I know, it's early here, but as we start to think later in the year around domestic contracting your domestic book is providing some installation in this weak market. So.
Speaker Change: Would there be any consideration to increase those volumes. How are you thinking about how are you thinking about the domestic opportunity as we head into the summer.
Speaker Change: Okay.
Nick Childs: Thanks, Nick.
Speaker Change: It is as you said, it's a little early.
Speaker Change: We will be looking at our portfolio you know what the customers' needs are.
Speaker Change: <unk>.
Speaker Change: Broadly speaking, we don't ever have a number in mind when we approach the domestic market we take it as it comes we meet with the customers see where we are.
Speaker Change: Have common ground and where we've done so I really don't have a firm answer for you. There certainly at this point in time the domestic market is among the higher pricing in our book, but that can change.
Speaker Change: In a matter of months, so it's something we'll be looking at over the summer months here at Alpha.
Dan Horn: Thanks for that Dan and maybe if I could just sneak in one more just back to.
Dan Horn: The market the U S market, specifically and there has been for several months now worried us.
A lot of of your smaller competitors that might be struggling theres been some there's been plenty of evidence of that.
Dan Horn: Do you think.
Dan Horn: Are there still some kind of small mom and pop tons that could come out of the market or do you think most of the pain has been inflicted at this point.
Dan Horn: Yes, I think we still think there is sometimes it could come out.
Dan Horn: Yes. The question at this point, Nick is and it's been a grind.
Dan Horn: Yes, probably.
Dan Horn: Thanksgiving of last year.
Dan Horn: The amount of liquidity being consumed off of balance sheets across the industry and how much longer some of the less less well capitalized companies can last so.
Speaker Change: I think Dan's dead on there are likely more tonnes that have exposure in.
Dan Horn: In this particular market so.
Speaker Change: We'll just we'll have to see how that develops.
Speaker Change: Got it and.
Speaker Change: Apologies I promise this will be my last question.
Speaker Change:
Speaker Change: But.
Speaker Change: You are very well capitalized and so so that offer some protection in these tough markets has had this market and it's a prolonged nature changed the way youre thinking about.
Speaker Change: Your cash balance to the cycle.
Speaker Change: Okay.
Speaker Change: Well that's a that's a good question I mean, it's something that we constantly evaluate and it's.
Speaker Change: The answer will always be different depending on where you are in the cycle and we had a really good call. It two and a half year run where everyone kind of gravitated towards the same the same dance answers on how they wanted to treat their balance sheets.
Speaker Change: I think we've been.
I think we're repression and our approach.
Speaker Change: About this time last year, and how we decided to handle our balance sheet.
Speaker Change: We will.
Speaker Change: We'll probably I'm not sure we would do anything different moving forward. So.
It's a tough question to answer, but it's one that we ask ourselves every day.
Speaker Change: Fair enough.
Speaker Change: <unk> I think your foresight was as good as any so can you best of luck and thanks for taking all my questions.
Nick Childs: Thank you Nick I appreciate you.
Nick Childs: We have reached the end of the question and answer session I will now turn the call over to Andy Gibson for closing remarks.
Andy Gibson: Well, thanks again to everyone for joining the call. This morning, we appreciate your interest in Alpha and we all hope you all have a great weekend take care.
Speaker Change: This concludes today's conference you may disconnect your lines at this time and we thank you for your participation.