Q1 2025 Astronics Corp Earnings Call
Speaker Change: Greetings and welcome to the Astronics Corporation First Quarter Fiscal Year 2025 Financial
Speaker Change: At this time, Alpertist Pinter didn't listen only mode. If anyone should require operator assistance, please press start at zero on your telephone keypad. A question and answer session will follow the formal presentation. He may be placed in the question queued any time by pressing star one on your telephone keypad.
Speaker Change: As a reminder, this conference is being recorded. It's time I pleasure to turn the over to your host, Deborah Pawlowski, and best relations for Astronics Corporation. Please go ahead, Dad.
Speaker Change: On a call with me here, I have Pete Gundermann, our chairman, president, CEO , and Nancy Hedges, our chief financial officer.
Speaker Change: We should have a copy of our first quarter results which crossed the wires after the market closed today. And if you don't have that release, you can find it on our website at astronics.com.
Speaker Change: As you are aware, we may make some forward-looking statements during the formal discussion in the Q&A session of this conference call.
Speaker Change: He stated with the plight of future events that are subject to risks and uncertainties as well as other factors that could cause actual results to differ materially from what it stated here today.
Speaker Change: These risks and uncertainties and other factors are provided in the earnings release, as well as with other documents filed with securities and exchange commissions. You can find those documents on our website or at sec.gov.
Speaker Change: We've provided reconciliation of non-GAAP measures with comparable GAAP measures in the tables that accompany today's release. With that, let me turn it over to Pete to begin, Peter.
Thank you, Debbie. Hello everybody and welcome to the call.
Peter: I'm going to open the presentation with my comments on the first quarter, which we feel was a very strong start to the year. And Nancy will follow up with some specifics on our financials.
Peter: Then we'll turn our attention to expectations going forward for the remainder of the year.
Peter: As I said, the first quarter was a very strong start to 2025. Revenue of 206 million was at the high end of a range or just beyond, and up 11% year over year.
Peter: The revenue level drove solid improvement on margins with adjusted net income of 17 million up from 2 million last year and adjusted EBITDA of 30.7 million up from 17.6 million last year.
I just knew that was about 15% of sales.
and similar to the fourth quarter.
from last year.
Peter: On a rolling 12-month basis suggested that as we calculated it has been 110 million.
Peter: This is up from 67 million for the previous 12 month period and 16 million for the 12 month period before that.
So we've made some pretty solid progress [inaudible]
Thank you.
Peter: In addition, first quarter bookings were really strong, 280 million.
Which yields a book to bill of 1.36 [inaudible]
Peter: That bookings total was a new record for the company which left us with a backlog at quarter end of 673 million also a new all-time record.
Peter: The bookings included a significant order of 57 million for the next phase of our flera development effort. We remain very engaged in that program and are doing whatever we can to help ensure its success.
Re-expects total development.
Peter: Billings of approximately 90 million by the time it is all done, and we continue to believe that the program will be a significant driver for our company's long-term future.
Peter: Apart from the Fluoro order, our first quarter was fairly routine operationally much like the fourth quarter of last year was.
Peter: The improvement in our performance has not been driven by one time events or significant adjustments split rather the steady operational improvement.
Peter: Across the business, including our supply chain.
Primarily and also the increased efficiency of our workforce together with certain operational improvements we have implemented in recent periods.
Peter: Rather routine nature of this acceleration gives us confidence in the quality of our results and our expectations for the future.
Peter: As for segments, our first quarter results were clearly driven by our aerospace segment, which is performing at a very high level.
Peter: New records were set in the quarter for revenue bookings and backlog.
Peter: Revenue of 191 million was up 17% year over year bookings of 268 million, where the first time ever above $200 million and backlog of 614 was up $66 million over our previous high.
Peter: Margins are encouraging also with adjusted operating profit in the aerospace segment of 16, 2%.
Peter: Our test business on the other hand had a lackluster quarter in sales of only $14 6 million and an adjusted operating loss of $2 2 million results were hurt by an EAC adjustment on a long term development contract of $1 9 million.
Peter: Things worth than that 12 million, leaving backlog at $59 million.
Peter: There is some good news in the test segment and that the cost changes we have recently implemented in business are showing results even at the reduced volume.
Peter: And our long awaited radio test program for the U S. Army remains on track for our volumes start in the fourth quarter.
Peter: But the good news is at test is undermined by the operational challenges we have seen in the resulting year see growth and we're doing a deep dive currently to understand the challenges.
Peter: And strive for some improvements.
Peter: On a related note we are a few areas in our Aero business that are also challenged and we are taking a close look at these situations also theyre always weak spots in a company our size and we are optimistic that the margin improvement. We have seen overall has plenty more room to run if we can get some improved.
Peter: Out of the challenged parts of our business, we will talk more on this topic generally in future calls.
Peter: Now I'll turn it over to Nancy for some details on our financials in the first quarter.
Nancy Hedges: Thanks Pete.
Nancy Hedges: I'll now walk through the key drivers behind our consolidated Q1 performance and then touch on segment level results.
As Pete noted, we had a strong start to fiscal 'twenty five.
Nancy Hedges: Continued momentum in our aerospace segment and solid execution across the organization.
Nancy Hedges: Gross margin expansion improved EBITDA and strong operating cash flow are clear signs that the operational and financial initiatives, we implemented over the past year are delivering results.
Nancy Hedges: Beginning in Q1 of fiscal 'twenty five we implemented a change in how research and development expenses are presented in our financial statements.
Nancy Hedges: R&D is now shown as a separate line item below gross profit on the income statement, whereas previously it was included within cost of goods sold.
Nancy Hedges: Near period was recast for comparability this change enhances transparency and better aligns with common industry practices.
Nancy Hedges: That said gross profit increased 28% year over year to $60 8 million and gross margin expanded almost 390 basis points to 29, 5% up from 25, 7% in the prior year quarter.
Nancy Hedges: This improvement reflects continued volume growth and favorable operating leverage in aerospace.
Nancy Hedges: <unk> also included a $1 9 million dollar adjustment as Pete mentioned and our test segment related to the long term contract.
Nancy Hedges: Okay.
Nancy Hedges: Income was $13 1 million for the quarter and includes a $6 $2 million true up to the reserve for the UK litigation matter.
Nancy Hedges: Apprised of half a million in additional damages and $5 7 million in interest related accruals.
Nancy Hedges: We also incurred $3 million in legal expenses tied to the ongoing litigation.
Nancy Hedges: Excluding these items adjusted operating income was $22 $6 million or 11% of sales compared with $5 5 million and 3% in the prior year.
Nancy Hedges: Adjusted EBITDA was $37 million or 14, 9% of sales up from nine 5% last year, primarily reflecting improved profitability from the higher volume.
Nancy Hedges: Interest expense declined $2 $6 million year over year due to our successful refinancing of the prior term loan and the ABL late last year.
Nancy Hedges: As we've discussed previously the convertible bond financing with precautionary given the situation at the time with the potential outcome, we could have realized with the U K damages Award.
Nancy Hedges: Given the damages landing at just $12 5 million and interest expense of $5 7 million, we're comfortable with our available liquidity, there's still the issue of legal fee reimbursement that has not yet been settled on the plaintiff is estimating $7 $2 million and given we believe we have valid grounds to dispute the position we have not reserved for this amount.
Nancy Hedges: The lower interest rate on our convertible debt provides meaningful savings. In addition to the liquidity cushion and will significantly reduce full year interest expense.
Nancy Hedges: GAAP earnings per share was 26 cents.
Nancy Hedges: non-GAAP adjusted EPS for the quarter was 44 cents a substantial increase from site from five cents in the prior year period.
Nancy Hedges: Turning to our segment level results, our aerospace segment delivered record first quarter sales of $191 4, million% to 17% increase year over year.
Nancy Hedges: Commercial transport sales rose, 13% driven by continued strength in cabin power and in flight entertainment and connectivity products.
Nancy Hedges: Military sales nearly doubled up 95% primarily due to our work on the Florida program and increased demand for lighting and safety products.
Nancy Hedges: Operating profit in aerospace improved $10 $2 million over the prior year.
Nancy Hedges: Adjusted segment operating profit was $31 million in the quarter compared with $15 6 million a year ago.
Nancy Hedges: And on an adjusted basis aerospace achieved 56% operating leverage on the higher volume.
Nancy Hedges: Adjusted operating margin improved by 660 basis points year over year to 16, 2%.
Nancy Hedges: Turning to the test segment sales were $14 6 million down $6 9 million from Q1 of last year.
Nancy Hedges: We recorded an adjusted operating loss of $1 $5 million, which reflects the $1 9 million dollar adjustments stemming from those revised cost estimates.
Nancy Hedges: To the long term the long term mass transit contract.
The updated estimates lowered the percentage of work completed which in turn reduce revenue recognized for the period.
Nancy Hedges: This project is now anticipated to be completed later in 2026.
Nancy Hedges: The test segment remains on track to achieve the $4 million to $5 million in annual cost savings with benefits expected to be more visible in the second half of the year.
Nancy Hedges: Bookings totaled $12 million in the quarter driven by contributions across multiple product categories.
Nancy Hedges: While the second quarter will continue to be weak for this business. We continue to expect improvement in segment performance as the year progresses underpinned by the next plant order under the radio test program for the marine as well as the start up production for the U S Army Radio Test program, which we still anticipate in Q4.
Nancy Hedges: Now turning to the cash flow and the balance sheet.
Nancy Hedges: We generated $26 million in operating cash flow up sharply from $2 million in Q1 of last year.
Nancy Hedges: This improvement was driven by stronger cash earnings and more efficient working capital management.
Nancy Hedges: This also marks our second consecutive quarter with operating cash flow in excess of $20 million.
Nancy Hedges: I should point out that we have a number of items that will impact cash from operations in the second quarter, including the damages award and the interest payment on the U K K.
Nancy Hedges: There's also the potential that the legal fee reimbursement issue associated with that case could get determined and it's not in our favor paid in the second quarter.
Nancy Hedges: The second quarter cash from operations will also be impacted by significant income tax payments on the order of approximately $10 million related to 'twenty four 'twenty five as our liquidity has improved we have return to making quarterly estimated payments.
Nancy Hedges: Long term debt net of cash at quarter end was $134 2 million a $16 million reduction from the prior quarter.
Nancy Hedges: We finished the quarter with $25 $9 million in cash and approximately $168 million of availability under our ABL facility.
Nancy Hedges: The ABL availability was reduced by the reserve for the damages and interest amounts due under the U K litigation.
Nancy Hedges: All said, we ended the quarter with about $194 million in total liquidity.
Nancy Hedges: We're currently undrawn on our revolver and expect that cash from operations can fund the business in the near term.
Nancy Hedges: Our healthy balance sheet provides flexibility to consider value, creating initiatives, including acquisitions and share repurchases.
Nancy Hedges: We can continue to advance on our financing structure as well.
Nancy Hedges: As profitability continues to improve we will evaluate a transition to a cash flow based revolver, which has less restrictive and eliminate the liquidity blocks.
Nancy Hedges: All of which positions us well to settle the bonds in cash when the time comes.
Nancy Hedges: Capital expenditures in the quarter were $2 $1 million.
Nancy Hedges: For the full year, we now expect capex to be in the range of $35 million to $50 million. This elevated level reflects both a catch up on previously deferred investments and new spending tied to facility consolidation capacity expansion and automation and efficiency efforts to support our long term growth.
Nancy Hedges: The estimates on the facility Buildout of come in higher than originally anticipated based on more detailed design specifications and current material costs.
Nancy Hedges: The team continues to get that amount down as much as possible.
Nancy Hedges: Overall, we're pleased with the strong start to the year and encouraged by the underlying performance trends in our core aerospace business.
Nancy Hedges: We remain focused on margin expansion free cash flow generation and consistently executing on continuous improvement.
Pete Gundermann: And with that let me turn it back to Pete.
Pete Gundermann: Now for a look at the future, which is usually a straightforward discussion, but not so much these days.
Pete Gundermann: Long story short we are for now holding to our original top line forecast for 2025 of the $820 million to $860 million in revenue.
Pete Gundermann: Representing a 6% increase on 2024 at the midpoint.
Pete Gundermann: However at the same time, we feel there is both upside potential and downside risk to this forecast.
Pete Gundermann: On the positive side, our strong first quarter results and recent booking success suggests there should be upside potential and there very well may be as we have discussed.
Pete Gundermann: There are many positive trends surrounding our industry and our business and there are scenarios in which those positive trends could continue for the indefinite future.
Pete Gundermann: At the same time, there's reason to be cautious given the macroeconomic concerns that exists today.
Pete Gundermann: Due largely to the tariff regime that the administration in Washington is rolling out.
Pete Gundermann: The implications of the on again off again nature of the rollout has caused major uncertainty in many significant companies in a wide range of industries are pulling guidance altogether until the situation is clarified.
Pete Gundermann: As for US we feel we are reasonably well positioned to deal with whatever tariffs become part of the final plan.
Pete Gundermann: We estimate our tariff obligation based on the structure currently in place and before mitigation is in the range of $10 million to $20 million.
Pete Gundermann: This estimate could change obviously.
Pete Gundermann: When the tariff rates change.
Pete Gundermann: And it's also dependent on confirming indirect tariffs from our domestic suppliers.
Pete Gundermann: Who may import sub components on our behalf.
Pete Gundermann: In any event, we feel we have a full toolkit to deal with the final tariffs whatever they turn out to be these include modifying our supply chain first and foremost to favor lower tariff countries, which we did plenty of first time Trump was in office.
Pete Gundermann: Secondly, implementing pass through pricing changes, which we expect will be very achievable in a number of our product lines.
Pete Gundermann: And the development of other tariff, reducing structures and practices, including duty drawbacks systems free trade zones, and or local for local manufacturing arrangements in certain situations.
Pete Gundermann: We hope and expect the tariff situation will stabilize in the coming months.
Pete Gundermann: As it does we will implement a set of actions to minimize the effects for our company and for our customers preserving value for them and margin for us.
Pete Gundermann: This will take some time, but we will maintain a disciplined and determined mindset to make sure we get the best answer.
Pete Gundermann: We'll certainly plan to be talking about this subject regularly on future calls with you all.
Pete Gundermann: And that concludes our prepared remarks, so I think we're ready for questions now.
Speaker Change: Thank you, we'll now be conducting a question answer session, if you'd like to be placed in the question queue. Please press star one on your telephone keypad.
Pete Gundermann: Confirmation tone will indicate your line is in the question queue.
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Pete Gundermann: Once again Thats star one to be placed in the question queue.
Pete Gundermann: One moment, please while we poll for questions.
Pete Gundermann: Yeah.
Speaker Change: Our first question today is coming from Jonathan <unk> from CJS Securities. Your line is now live.
Speaker Change: Hi, This is Jeremy on for John and I want to start by saying Congrats on a strong start to the year and thank you for taking the time how much mitigation can you do this year to offset the $10 million to $20 million tariff impact.
Speaker Change: And are you able to quantify what is direct and indirect.
Speaker Change: Sure well first of all it's really hard to quantify timing when we don't yet know exactly what the tariffs are going to be.
Speaker Change: Yes.
Speaker Change: It's a little frustrating you want to have a plan to solve the situation, but we don't know what the situation is yet so it's a little hard to act.
Speaker Change: Let me give you a little bit of a flavor last time Trump was in office he implemented some tariffs.
Speaker Change: We were at that point very heavily involved with.
Speaker Change: Subcontract manufacturing in China in particular.
Speaker Change: We moved a ton of that out something like $40 million.
Speaker Change: We moved it to other countries, which at the time had lower tariff rates and.
Speaker Change: Before you consider 10 considered doing something similar now you kind of have to take a guess as to what those tariffs are going to be in various countries around the world or you have to.
Speaker Change: Wait and see.
Speaker Change: So so we don't have a timing plan at this point and we need more surety as to what the tariff structure is going to be before we really pull the trigger on.
Speaker Change: Anything significant.
Speaker Change: But we're considering all kinds of alternatives.
Speaker Change: Playing scenarios back and forth.
Speaker Change: Try to be up to speed and ready to go when the time comes.
Speaker Change: Second part of your question about how much was direct and how much was indirect.
Speaker Change: It's roughly three quarters direct in one quarter indirect.
Speaker Change: I would also add though that we're relatively confident on what our direct tariff charges were are given the current tariff rates were still doing quite a bit of digging.
Speaker Change: Confirm.
Speaker Change: What are <unk>.
Speaker Change: Indirect tariff obligations might be.
Speaker Change: Nancy do you want to add anything to that.
I think you summarized it well I mean, we our exposure to China is significantly less than it previously was everything we've you know there's there's still obviously a heavy tariff rate.
Speaker Change: So that will be impactful, depending on where that where that lands.
Speaker Change: <unk>.
Speaker Change: Yeah, I don't think I have anything else to add.
Speaker Change: Understood. Thank you for that and then you mentioned conducting reviews of each business. So does that mean more restructuring or is it maybe a product and portfolio management type review or perhaps a prelude to something more strategic.
Speaker Change: It could be any of those things were not really limiting it and it's a little premature to talk about it until we get done with the reviews, but.
Speaker Change: One of the challenges in running a company like ours.
Speaker Change: From my perspective.
Speaker Change: We take a number of initiatives to develop new products and develop new businesses.
Speaker Change: Sometimes those are quickly successful, sometimes theyre quickly not successful.
Those cases, you have to ask yourself.
Speaker Change: Is it worth investing in as it worth maintaining the.
Speaker Change: Effort or at some point.
Speaker Change: You get impatient with it and try to change and I've got examples in my head right now, where we are probably more patient than we should have been in other examples where our patience has paid off very handsomely. So it's not a science, it's a little bit of an art and we're kind of going into these reviews.
Speaker Change: With that mindset and these but these are not big chunks of our business. The test business is the biggest.
Speaker Change: The others are relatively small at this point in terms of product lines of our initiatives. So.
Speaker Change: It should be less consequential, but the test business in particular because it.
Speaker Change: As its own segment that kind of sticks out like a sore thumb so.
Speaker Change: It gets a corresponding amount of attention.
Speaker Change: Awesome and then if I could just squeak one more in here can you talk about your 737 expectations today versus last quarter and if theres any change in how Boeing is communicated its production needs with your especially given spirit announcing furloughs in China are using some deliveries.
Speaker Change: Thank you.
Speaker Change: Sure.
Speaker Change: Uh huh.
Speaker Change: Have not heard of major changes from Boeing I would remind listeners that we intend to build at a rate somewhat reduced from what they are building.
Speaker Change: We are however, actually if anything pleased at the progress they seem to be making which is perhaps a little bit more than what industry in general expected in terms of rate progression as we move through 2025. So we don't think that the wheels are coming off by any means model from.
Speaker Change: What I understand the Chinese China situation.
Speaker Change: <unk> is not consequential at least for 2025, there are plenty of other people who will take the airplanes have been on water.
Speaker Change: So.
I think if anything we're encouraged I mean, the sooner they get up to 38 or.
Speaker Change: Right.
Speaker Change: And similar to that the sooner we will get enough. So it's also as they burn through our inventory.
Speaker Change: Okay.
Speaker Change: Awesome. Thank you and congrats again on a great quarter.
Speaker Change: Thank you.
Speaker Change: Thank you. Your next question is coming from Sam's Crusade from cruise Securities. Your line is now live.
Speaker Change: Yeah.
Speaker Change: Hi, Good evening, guys on for Troy and yeah, Congrats on a nice quarter here.
Speaker Change: Thank you just to start off kind of building on the last question there.
Speaker Change: Is there any way you guys could provide any more detail kind of on.
Speaker Change: With the demand within the quarter, how much of that was an arrow you were sort of seeing from for the products that you sell to both how much of the demand growth was kind of coming from airlines directly versus from the Oems themselves.
Speaker Change: Any additional color there by chance.
Speaker Change: Well, it's been pretty strong demand from both sides, we typically say that our commercial transport sales.
Speaker Change: Our roughly 50% line fit and 50% aftermarket with the caveat that.
Speaker Change: There are some major customers of ours, where it's kind of hard to know actually whether the products ultimately going to end up landfill or an aftermarket.
Speaker Change: Aftermarket.
Speaker Change: But I guess I would tell you that we feel.
Speaker Change: Demand has been pretty consistently strong in both sides were pretty comfortable with how it sets again.
Speaker Change: Absent.
Speaker Change: Tariff wars.
Speaker Change: We think it's the table set for a pretty good trend here with Boeing ramping up production and Airbus also.
Speaker Change: And a reminder, though you didn't ask the specifically the Airbus is just as important to us in terms of line fit content as Boeing is we don't put quite as much content on a typical Airbus airplane, but the more of them at this point so.
Speaker Change: The two of them together are are very important in all the trends are going in the right direction, both for narrow body and wide body.
Speaker Change: And generally up until the tariff war erupted demand from the.
Speaker Change: From the Airlines has remained strong also.
Speaker Change: Cut off at this point, our projects tend to be pretty long term projects or at least longer term than one month. So.
Speaker Change: We haven't seen a significant change there and I don't expect we will give them.
Speaker Change: All the wheels that are in motion for various modification programs obviously.
Speaker Change: If macroeconomic issues result in.
Speaker Change: A depressed economy here in the North America or around the world that will change them sooner or later, but we're not seeing evidence of that at this point, we're certainly not modeling it in.
Speaker Change: Okay.
Speaker Change: No that makes great sense.
Speaker Change: I'm glad to hear as well I.
Speaker Change: I guess kind of shifting here a little bit over to test segment that.
Speaker Change: $1 $9 million charge do you guys feel like that's pretty contained at this point or I know you mentioned, you're kind of still looking into that I mean, what's the potential incremental risk there or you feel pretty good about where that is after that.
Speaker Change: We would have to say that there is potential risk there and that's why we're doing this review.
Speaker Change: The programs in question have.
Speaker Change: Suffered from consistently consistent misses I would say over the two years that we've been involved that's it's longer than that three or four years.
Speaker Change: So we have to kind of draw a conclusion to these things sooner than later for the company to get on straight foot.
Speaker Change: One of the things we're going to look at is how comfortable are we with those estimates that have come out of that business on those programs.
Speaker Change: Okay.
Speaker Change: Got it makes sense.
Speaker Change: Maybe one last one from me if I could.
Speaker Change: It seems like the U K settlement is for the most part you know kind of coming out as a relatively best case scenario for you guys at.
Speaker Change: At this point are you kind of thinking.
Speaker Change: The worst case risk feeling would be that $7 2 million and the.
Speaker Change: That's the worst case scenario, but that's probably the worst could get and after that.
Speaker Change: Whichever way that somebody goes that would sort of be the conclusion to that part of the whole case and the U K.
Speaker Change: Yes, yes, and yes, the $7 2 million, we think is worse case.
Speaker Change: Legal fees.
Speaker Change: We think it will probably end up where it could end up lighter than that and we're not going to know probably till we have another hearing which is later in the second quarter here.
Speaker Change: And then that should be it for U K with the big.
Speaker Change: No.
Speaker Change: The risks that theres likely to be an appeal, we don't know that for sure. We expect that it will be an appeal, which we're not really that nervous about an appeal at this point, our lawyers seem to be pretty comfortable with the judgment that we received so hopefully that's the end of it but if there is an appeal that will likely draw.
Speaker Change: Our stretch into the middle of 2026, I would guess at this point, so it'll be a while before it gets resolved but.
Speaker Change:
Speaker Change: So to qualify the judgments in the UK today, we're thrilled with the damages ruling that could've been a whole lot worse based on what the plaintiffs were asking for we're not so pleased with the interest charges, but given the damages ruling will live with it.
Speaker Change: And the legal situation is a little bit frustrating, but that's how the rules work there I mean, the legal expense situations, that's something we're familiar with in the UK or in the U S, but in the U K.
Speaker Change: Legal fees are debatable so.
We'll see how that works, but I would think in a worst case, we're going to end up somewhere around that 2022 $23 million total.
Speaker Change: Got it makes sense, yes.
Speaker Change: As you said I mean, even with the pack you Dennis Philadelphia, even better than what the worst case scenario could have been and then the Germany side of that there was a way far out and that's nothing on the horizon any potential repeal over there you mentioned that in the past.
Speaker Change: Yeah, that's something that is pretty much on hold waiting to see how the UK situation worked out we suspect.
Speaker Change: Now that there's some clarity there Germany may pick up but again, we don't expect that to happen until 2026 either.
Speaker Change: So.
Speaker Change: Apart from this may hearing on legal fees, it should be a pretty quiet year for the rest of the year in.
Speaker Change: In 2025 on the legal front, we're hoping until.
Speaker Change: 2026 gets here and then we'll.
Speaker Change: Starting to fire at all up again.
Speaker Change: Got it makes good sense.
Speaker Change: Thanks, again for the time and congrats again on the nice results.
Speaker Change: Thank you.
Speaker Change: Thank you we reached end of our question and answer session I'd like to turn the floor back over for any further closing comments.
Speaker Change: No real closing comments. Thanks for thank you for your time and attention.
Speaker Change: Keep your fingers crossed for successful tariff clarity for all of us.
Speaker Change: Time soon talk to you next quarter.
Speaker Change: Thank you that does conclude today's teleconference and webcast you may disconnect. Your lines at this time and have a wonderful day, we thank you for your participation today.
Speaker Change: Yeah.