Q1 2025 Savaria Corp Earnings Call
All right.
Victor: Good day, my name is Victor, and I'll be your conference operator today. At this time, I would like everyone to welcome everyone to Savaria Corporation's first quarter of 2025 conference call.
Victor: All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session to ask the question during the session and you need to press star 101 on your telephone. You then hear an automated message advising your hand is raised. To withdraw your question, please press star 101 again. You can't just press star 101 again. You can't press star 101 again. You can't press star 101 again.
Speaker Change: This call may contain four looking statements which are subject to disclosure statement contained in the various most recent press release issued on May 7th, 2025. With respect to its first quarter, 20-25 results. Thank you, Mr. Bourassa, you may begin your conference.
Speaker Change: Thanks, Victor, and good morning, everyone. So today we start with a small recap of our Q1 results, then Steve will update us on financial, and then people will be doing updates on server one, and we'll follow that with the Q&A session.
Speaker Change: So once again, I'm very proud of our Q1 results. It should have the transformation is table for fifth good quarter in a row, in an environment where on something T, where all our products are UMSC compliant, meaning that there's no duty applicable on all our finished products.
Speaker Change: So, some of the key highlight for the first quarter. So, fantastic performance at 18.5% of the Bidda in our weakest quarter.
Speaker Change: She's always Q1, she's wintered, the numbers are working days, so quite part of the Q1.
Speaker Change: Looking back at the mirror, we've considered the last 12 months, okay, we're trading at 19% of a bit up, which really showed the improvement on the Savaria 1, which we'll be going to highlight later, and we are getting closer to the goal of Savaria 1, which was to be at 20%.
Speaker Change: As you can see there in DNA, we did not change our guidance due to the economic uncertainty and tariff noise, but less remain assured that we want to finish at the top of the bracket.
Speaker Change: So, growth in North America was once again strong at 11.8% while in Europe was slightly negative. I think the reset is almost done and patient care at the mother's growth of 2.1% after a fantastic
Speaker Change: We know it's important to grow and this is part of the pillar for 2025 and we are confident we'll be able to achieve that because of new product launch, a growing share of wallet with our dealer and onboarding some new dealer as well. So talking about new product.
Speaker Change: We started to assemble a Luma home elevator after a factory in Mexico which we expect says to in the coming month to be able to ramp up as we train our dealer in our safety.
Speaker Change: The product is looking outstanding. It's a product that will be said worldwide, easy to install, stuckable for the dealer that want to stuck it, so bring a lot of key advantage to the dealer.
Speaker Change: That ratio finished at 1.5 and in Q1. Now, we have available fun or at least before last night of 254 million as the end of March 31st, which put us in very good position to make some investment or acquisition.
Speaker Change: So talking of acquisition, but you can see this morning we have closed a small truck in the Western elevator, was it one of our long-term dealer in BC, Canada?
and was strategic for us. [inaudible]
Speaker Change: as it's causing to certify a position in the BC area with their own direct store of Garamontor and their own direct store with the Western.
Speaker Change: Let's go in also to add to bring some additional volume as they were not buying other products from Savaria. Their annual sales were approximately 7.5 million Canadian.
Speaker Change: So welcome to all the new employee in BC. And as also you can see in our press release we decided to invest $30 million dollar Canadian in Greenville to expand our factory there so that we have a new 55,000 square foot available in the second half of next year.
Speaker Change: This is on top of the 60,000 square foot that we have free-up in the last quarter in Q1, and we have started to symbol our Eclips Omelibator as of April 4th, because we will say regardless of that, we wanted to symbol more in the US, and that's what we have done in the first quarter.
Speaker Change: So thank you very much to the team in Greenville in Toronto for the speed of execution that was an outstanding launch.
Speaker Change: So on that, thanks to all our employees and Savaria and our dealers for the fantastic QAnne, Steve
Speaker Change: Thank you, Sebastien, and good morning, everyone. I'm excited to share some remarks regarding our Q1 2025 Consolidated Financial Metrics.
Speaker Change: As Sebastien mentioned, G1 is typically a soft quarter for us, and yet, in spite of the external context and threat of terrorists, our results are very strong.
Speaker Change: Revenue growth of 5.2% with particularly strong results of 11.8% growth in North America accessibility.
Speaker Change: Part of the benefit here is the terrible effects rate moved, but this also shows that we're well diversified.
Speaker Change: In addition, gross margin increased by 180 basis points to 37.8% and their EBITDA margins increased 190 basis points to 18.5%. These are very strong results for a Q1.
Our trailing 12-month Adjusted EBITDA margin is now 19%
Speaker Change: and lastly, Strong Cash Flow with Operating Cash Flows of up 18% versus last year.
Speaker Change: Thanks to our financial discipline and improvement in working capital performance, we were able to lower our leverage ratio of net debt to adjust to 1.49 from 1.63 at the end of the year, at the end of 2024.
Speaker Change: This growth is driven by 0.8% organic growth, positive foreign exchange impact of 3.3% and an acquisition impact of 1.1%.
Speaker Change: North America was able to deliver constant revenues in a more uncertain market environment.
Speaker Change: We've made a number of changes to our self-strategy in Europe in Q1 of 2024, so we have tough comparables, but we are very excited for the future, especially as we introduced new products into the market, including the new Numa and the multi-left.
Speaker Change: patient care had modest growth of 2.1% in the quarter and came off of a very strong Q4 2024.
Speaker Change: This business is significantly project-based and can be lumpy and positive news that are backlogged also grew significantly during the quarter, which builds very well for future quarterly sales.
Speaker Change: This performance represents a marks improvement of 180 basis points over prior year and a 10 basis point improvement over Q4 2024, driven by continued operational efficiencies realized under Savaria I.
Speaker Change: Both accessibility and patient care segments contributed to this improvement, underscoring the effectiveness of our ongoing initiatives to streamline operations, enhance margin quality and drive sustainable growth.
Speaker Change: This gross market improvement is possible due to Severia's vertically integrated operating model and therefore more protected from inflationary pressure as well as Severia-1 initiatives that are improving all aspects of the business.
Speaker Change: Adjusted EBITDA was 40.6 million for the quarter representing the fourth quarter in a row above the 40 million dollar threshold.
Speaker Change: This performance enhancement is primarily driven from the improvements in Ghost Marge and previously
Speaker Change: We incurred 4.7 million in strategic initiative expenses for the quarter and line with our expectations. And these fees are mainly consulting fees similar to last year and will repeat for the next recorders but will end in Q4 of 2025.
Speaker Change: Interest on long-term debt decreased by 1.4 million and due to reduced interest rates on our debt as well as a lower overall debt balance versus last year.
Speaker Change: The driver of the year-over-year increase in total finance costs is a larger, unrelized gain that we had in Q1 of 2024 last year versus a smaller gain in Q1 of 2025 this year, the difference being 2.4 million.
Speaker Change: I'm now going to look at and discuss the balance sheet and cash flow. So cash flow from operations in Q1 was 31.3 million, which is an increase of 4.7 million versus last year coming from higher EBITDA. We reduced working capital by 2.2 million in the quarter, coming mainly from higher trade tables.
Speaker Change: CapEx for the quarter finished at 4.7 million, which is 2.2% of sales, and in our target range of 2 to 2.5% of sales.
Speaker Change: Free cash flow after debt, related costs, and dividends was $10.3 million for the quarter which is $3.8 million or $58% higher than prior year.
Speaker Change: The strong free cash flow contributed to retain a debt of $7.5 million and reduced our leverage ratio to $1.49 and better prepares us for any opportunities to lie ahead.
Speaker Change: And with that, this completes my preparatory remarks. I'll now turn the call over to Jean Treleaf, our CTO, to provide further details on how we're progressing with Savaria 1.
Thank you, Steve. Good morning, everyone.
Speaker Change: As Sebastien mentioned, our adjusted a bit better with $6,000,000 or $17,000 first and higher than last year This is particularly impressive given the context and the uncertainties that lie around it
Speaker Change: Most of the improvements can be tracked back to Savaria One initiatives and those are a balance between commercial initiatives and cost reductions.
Speaker Change: Our top line has been growing in North America, in particular thanks to the efforts we put in improving our operations in Grantham, in Surrey and Mexico, as well as the sales growth efforts that paid off.
Speaker Change: On the cost side, we've benefited from many improvements implemented last year.
Speaker Change: So what's happening with Savaria One? By the end of Q1, we have implemented more than 350 improvements initiatives across the business.
Speaker Change: Yes, in Q1 along, we added 130 new initiatives to our Savaria 1 pipeline.
Speaker Change: Not all of those have associated benefits, but those that do added millions of dollars to our projections.
Speaker Change: Some examples of the successes we had in Q1 are the following [inaudible]
Speaker Change: Warren, as we innovated in the fabrication process of our precursor sterile. Thank you.
Speaker Change: Where the wellness parts used to ensure a good alignment and coupling of the rails during the installation of the stairs is now using a new technology in process. It's called the handy block and ensures better alignment of the rails, a smoother ride for users, but also a simplified fabrication process requiring about a dozen less welders in however hard.
Speaker Change: We transferred part of the bedframe parts production to our Mexico facility.
Speaker Change: We still assemble our long-term care bed in Beansville, Ontario, but over the past months we have been leveraging our Mexico facility to produce bed frame parts.
Speaker Change: which not only reduces our overall best fabrication costs, but also frees of capacity and means builds for us to grow sell when the man is strong, like it happened in Q1 this year.
Speaker Change: We completed about two 20 different procurement initiatives across all our businesses.
Speaker Change: In the majority of those, we either renegotiated rights with an incumbent supplier to a competitive process, or using existing supplier at a new factory.
Speaker Change: Also, we took a hard look at our IT life in Scotland across the globe and scrub those, either for redundancies or better rates, and we're not finished.
Speaker Change: While the impact is not always easy to see, we are making progress with self-role initiatives.
Speaker Change: For example, we added about 50 new dealers to our network across Savaria and Garaventza in North America.
Speaker Change: In Europe , we won major new accounts this year for hand care specialists. And in patient care, our backlog is as high as it's ever been.
Speaker Change: These are just some examples, but in total we implemented about 50 initiatives into one this year.
Speaker Change: We also made substantial progress on pre-sategic crimes in Q1.
Speaker Change: The first is we launched a new true-the-floor elevator named Luma. The Luma is a product we developed in-house to sell in North America and in Europe . It will be manufactured in our Mexico facility for the distribution worldwide.
Speaker Change: We think the Luna's very attractive product thanks to its slick design, its robust yet elegant construction and the fact that it is simpler to install in competitor products.
Speaker Change: We are now starting to offer it to selected dealers in both North America and in Europe .
Speaker Change: The second is in Europe . On top of the Luma, we are now introducing the Savaria multi-list. So it's the same multi-list we had in North America, but adapted for European standards.
Speaker Change: This, fortunately, will further enhance our portfolio and be another product that our Garibandza Directors can sell in Europe , making us less reliant on third-party products.
Speaker Change: We can therefore now offer a much larger range of products for customers and dealers in Europe in Europe as well as allowing to our one-step shop vision.
Speaker Change: Finally, in our patient care division, 2125 was the second quarter where we shipped our new
Speaker Change: The essential model was the one most sold in two four last year, and this year we started selling more of a clinical version, which includes a number of features like a three-down feature.
Speaker Change: We believe we now have the best ceiling list on the market and yet we will continue to upgrade it and launch innovative accessories in the coming months.
Speaker Change: What's next for Savaria I? We have our work cut out for ourselves this year and plans to continue to execute our pipeline of initiatives in the coming months.
Speaker Change: Given the health of our Savaria One pipeline and with the caveat that we are always subject to external market forces, that's why, as Seb and Steve mentioned, we still maintain our guidance and we're aiming for the high end of it.
Seb: So, thank you for your attention. I will hand it over back to Seb for closing remarks.
Seb: and Future Business. So, I guess, Victor, we are ready for Q&A session, please.
Speaker Change: Thank you and as a reminder to ask a question and you need to press star one one on your telephone and wait for names to be announced to withdraw your question, please press star one one again. Please stand by while we compile the Q&A roster.
One moment for our first question.
Speaker Change: Our first question on Confilina of Derek Lessard from TD Callum, Atlanta is open.
Derek Lessard: Yeah, good morning, everybody, and Karats on the quarter in the acquisition.
Thanks, Eric.
Speaker Change: Sebastien, I just had actually one question for me this morning, could you maybe talk about
Speaker Change: the efforts to repatriate manufacturing back to the US. I guess where you guys are right now, maybe an update on some of the capacity you've got there. And ultimately, what could this look like in a few years down the road when you've built this out?
Speaker Change: Thank you, Derek, very good question and a very good report you did this also this morning.
Speaker Change: So basically, yes, U.S. Okay, yes, right now we have been the key all-er product of UMSC compliance, so all-er finished products, you are not impacted by duty.
Speaker Change: We want it to be closer to our market in the US, so we have some extra capacity in the building of Greenville. We have 200,000 square foot. We have decided we have 60,000 square foot to be more condensed on the patient care.
Speaker Change: in North America. So, basically, we're in production since the beginning of April with this product. So, that's closer to the market, so that's the news. And right now, we do some products in the US, some in Canada, but that's was our first product. The straight-ster lift, we're always from Venezuela, so the discontinued.
Speaker Change: of Manufacturing Capacity for the Accessibility. We have two big factories in Surrey, Vancouver and Surrey, Vancouver and Toronto. We're always about to think about the future, but differently, as we expand, I think we can have a second or a line of products that will be able to make locally.
Speaker Change: for sure. And the success, we have 12 factory worldwide, sometimes we sell to each other, we do some some components in Mexico and China and Canada, and that's what makes the success of Savaria to be local but worldwide at the same time.
Speaker Change: Yeah, thanks Sebastien, very helpful. That's it for me, and congrats again.
Thanks.
Thank you. One moment for the next question.
Speaker Change: Our next question will come off the line of Michael Glenn from Raymond James. Your line is open.
from our Higgin' Mornings. Up.
Speaker Change: Good morning, so just looking for an update as to stair lift sales in North America.
Speaker Change: Have you been able to make any gains with market share, with dealer penetration just looking for an update as to how you see that business evolving all of the coming year?
Speaker Change: Okay, very good question. So, for sure, yeah, we brought back the manufacturing of Curves Turleaf in North America in the last, since the Equation of Indicare. So now we're fully manufacturing in Toronto with the Curves Turleaf, due to the distribution of straight from Canada or from the U.S. depending where is the customer. And the scenario where we could be better. Yes, we have an album. We have an album.
Speaker Change: First and all, getting growth in North America, I would say all my liberator has been maybe the best segment. Out of that, unfortunately, we don't disclose the sales per products. But if you feel sterile, if it's an area where we are good, we have very good time, good products, and this is something in North America that we should be better in the future.
Speaker Change: Unfortunately, this is always very important for dealers who are definitely to give them some leads to add them to sell their products. I will see that will be a good answer, a good way to support them so that we can have more sex.
Okay, and then on. Thank you.
some of the housing data that we've been seeing.
Speaker Change: I was too soon to talk on that and we don't receive cancellation of project. We see a configurator or a co-builder, the activity co-thing is quite good and I remember drawing people make it good. But don't forget one thing, no.
Speaker Change: We are lucky when a good industry, the aging population, whatever, when you're aging, you're aging, you need to stay at home, so you will probably do your existing product first before you do some other luxury expenses. So I think this is good. Architect, contractor, professional and one of the things we're quite strong with working on these with them, the density of the population. There's a lot of canals in North America, three, four floors, so it's not just a few aging that you would think about putting in a liberator.
Speaker Change: So, we'll see if I'm out again, it's too soon to talk and the person who has worked.
He put an elevator, just got his permits. [inaudible]
Speaker Change: Even though the economy was uncertain the last two three months, I think it would probably continue with this project.
So far, no consolation, activity is good, so...
Speaker Change: from six months to two years. Our backlog is actually increased at our direct stores, so that gives us really good indication that the market is still healthy. We do see the same headlines that you're seeing, but in our business and the shortage in housing and the products that we're selling, we're still able to build our backlog right now. So...
Thank you very much.
Okay, excellent. Thank you.
Thank you. One moment for our next question.
Speaker Change: The next question come from the line of Justin Keywood from Stifle. Your line is open.
Justin Keywood: Good morning. Thanks for taking my call. Nice to see the results.
Speaker Change: I just turn understand that a bit because 18.5% in Q1 and the mention of
Speaker Change: of most of Savaria products being US MCA compliant. Is that just being overly conservative the guidance? Is there any anticipated headwinds that we should know about?
Speaker Change: I have a very good question, Justin. Good morning. You know in the last three months I've been drama one week after the other, you have no idea how much time you've been Steve as in the team, I've worked on a terrorist situation. We had Tariq, no Tariq, no Tariq, there's a blind, no dead line.
Speaker Change: We like to have a good budget, and we have seen that the target has always been 20% of the survive one, we maintain that, but because of the economy, the situation keeps the bracket, and I think as we would go during the year, if the situation remained the same for sure, we tried to narrow down a bit the guidance, but for now we have decided to keep it a bit wide.
Speaker Change: We saw the tuck-in deal in Western Canada. Could you just describe the pipeline and is there an opportunity for additional M&A or do you think you're going to be a bit conservative just given with everything that's going on?
Speaker Change: Again, I think we are frontline, as always, we're pretty far acquisition, we visit, and you know it takes time, right? So I think for sure talking is always key.
Speaker Change: So, Diffancy Dealer, we have done that in the past, by 102. [inaudible]
Speaker Change: Be very selective, so again could we see some more talking this year? A class year was made at a very strategic product that is very complimentary. Now that we're fully manufacturing and ours in Toronto, we are going to have a growing the size of made up this year. So we need to continue to do a small talking. I think that's something that will help us choose for our organic growth.
Great. Thank you very much.
One moment for an ex-question.
Speaker Change: Our next question on offline, Frederic Tremblay from this Thursday's Capital Markets,
Thanks, good morning.
Frederic Tremblay: Just with what we're seeing with the trade dynamics in the US, I was wondering if you had any comments on the competitive environment in that country, especially as several competes with some local manufacturers there. Have you noticed any sort of changes on that front or no meaningful changes so far?
Speaker Change: Well, it's always a bit difficult because we are the only public company into accessibility. So I think this is the same competitive environment, we are lucky, it's a good industry, it's a good competitor, we always expect each other, so I would say there's no big change of dynamics.
and to the industry.
Speaker Change: I think we are definitely the most active parties that I think, by bringing new products, making tuck-in acquisition, doing more things for dealers, so I think that's why I remain a great partner because we bring value to a dealer.
Speaker Change: Great. Moving to Europe , obviously, there's been some efforts on margin improvement there lately, which have been successful. I was wondering if there's any...
Fred: Yeah, so you mean the Luma and the Montieliff, right Fred?
Speaker Change: So do not have any other product that you would introduce in Europe in the next year or two as well.
Speaker Change: Yes, so to answer your question, yes, so those products come in with, they're going to be margin accrued, right? So they have good margins and because as you may remember, so we're fully integrated vertically, so we make the products from scratch, so we get the manufacturing margin, but also margin as we distribute it in Europe , so yes, those should help.
Speaker Change: Sometimes the products that we're continuing to innovate even in our stereotypes products and we have pretty large opportunities coming up. I want to reveal the details but it will come later this year but we have a path to increase the margin still over there.
Fred: Yeah, definitely GP and Fred, okay, the one stop shop has been a key in North America.
Fred: That's why our dealer likes to work with us in Europe before we just have a stir lift out and we can get up until we have inclined that form. Now we have the porch lift, we have the luma, we have the view lift.
Fred: And again, you can imagine that all new R&D products we are going to launch are going to be award-wide from the D-Number 1, but I think the catch-up game to have the one-stop-shop in Europe will finish in the next year and then it will be a good position to have growth again in Europe .
Speaker Change: Great last question for me. Apologies if I missed it. I joined a little late to call, but on patient care can you talk about the backlog there and maybe your thoughts on your efforts to sell like a full package. I think you were calling it selling the room and maybe just an update on how that's going.
Speaker Change: Thank you, Fred. You did not miss the patient care question, your first phone to us. So I think you had patient care, definitely when the backlog is good, the backlog is high.
Speaker Change: Right now, we are also going to get some growth this year and for sure. Like again, a bit of one-stop shop, we tried to sell the bed, the mattresses and a ceiling lift and sometimes the floor lift as well, so differently.
Speaker Change: We have a good product offering and this is something that, you know, over time we want to continue to expand because we have a good sales force, we have 50 sales rep in North America, we knock on a lot of doors, so differently if we have additional products to sell that can be beneficial. [inaudible]
Speaker Change: So in the last month, we refreshed our day's goods line so we have a partnership with the FF.
Speaker Change: where we have a set of brand new case goods which is helping.
Speaker Change: to sell the room. I think our beds, we don't talk about it much, but our beds we keep innovating in the beds. We have some incremental improvements and we're still working on more major improvements. One thing, I cannot.
Speaker Change: I don't have the specifics, but I know a number of our competitors import bets from China, so keep that in mind, it may help us because of the terrorist situation.
Speaker Change: So our beds are still strong so in terms of selling the room like owning the room like he said, we still have ways to go but you know we feel good about what we have right now and with the new ceiling lift, new case goods, these same bed liners that we keep improving I think we're already making the progress [inaudible]
Sheeper
Great, congrats on the court.
Thank you.
Speaker Change: Thank you. One moment for our next question. Our next question will come from a line of Zachary Evershed from National Bank Financial. Galen is open.
Is that good morning, everyone? Congrats on the quarter.
Thank you.
Speaker Change: Could we jump into the details of that planned 30 million facility expansion? By the time that you bring that online, do you think that you'll have enough backlog to instantly fit it, or will it be more of a slow ramp with shuffling of capacity from different locations?
Speaker Change: So I think in the next years there will be enough project, okay?
Speaker Change: I think it's always a benefit to be closer to your customer
Speaker Change: And I think an equity million, yes, is a bit of a benefit of the building that we are expanding 35,000 square foot and that's our own buildings, that's always good, but there's some machinery as well, because we like to make parts by ourselves, we like to be vertical integrated.
Good, Tyler. Thank you.
Speaker Change: and then just quickly touching on the Western Elevator acquisition. Could you tell us about how that came about, whether it's a standard playbook and what kind of multiple you're paying for tuck-ins these days?
Speaker Change: Thank you. I think right now we have approximately 30 direct story award-wide, so I guess that will be number 31. So I think yes, the playbook is quite well established.
Speaker Change: What we can improve on the short term to have a better synergy and to make sure we can leverage on that, that we have the same practice a bit across all our direct-store, to different people. Derek Tremblay.
Speaker Change: It's a well-known game so I am not worried about the game plan and also what's nice is that the team over there is very stable, the two owners are staying with us for a certain time so I think that's very positive so they will be very good stability so that will be a bit my answer.
Thank you very much, I'll turn it over [inaudible]
Thank you. Thank you. One moment for the next question.
Jonathan Goldman: Our next question, a confelign of Jonathan Goldman from Scotiabank. The line is open.
Jonathan Goldman: Hi, good morning guys. Thanks for taking my questions. Really nice quarter. Most of them are already going to ask and I apologize if I missed this because I joined late.
Speaker Change: But, you know, really nice margins in the quarter 18.5%, it looks like a record for a Q1 by at least 200 basis points.
Speaker Change: I think the original Savaria one target was for 20% EBITDA margins, but how are you thinking about that target? You know, maybe in the mid to long term, given the results you just had and all the initiatives that are still ongoing.
Speaker Change: Jonathan, a very good question, but I think on the last 12 months we're at 19%, so I think the 20% can see it, that's a different year target. And I think for the Savaria 2.0, we need to wait a little bit to set up the new bar, but differently, you can see that once you reach 20%, if you're able to bring additional sales.
Speaker Change: I guess we should be able to explain a bit on that, but we need to weigh the bit maker and new commitment.
Jonathan Goldman: I'm sure J.P. has a bunch of issues to go. I didn't see it, but I think, then, I think you should look at our business, right? Like some parts of the business are more vertically integrated than others, so you can imagine the more we go, the more we want to drive towards that, so where we have more vertical integration, like in North America, we have better margins.
So that's especially how we're connecting about it.
Jonathan Goldman: No, fair enough. That's it from me. I'll get back into you. Thanks for the color, guys.
One moment for our next question.
Speaker Change: Our next question, conflite, Michael Glen from Raymond James. Your line is open.
Speaker Change: Hey, just wondering if you have any view or any of the volume that you saw in Q1 was related to some customers buying a head related to...
Potential Terrace [inaudible]
I have a good question about that.
Speaker Change: You know, all our products are really custom-made, so again, it's come from a true order that it is designed for us or the curves to live so...
Speaker Change: Again, is there maybe a million more that people took, the answer is yes, but it's not a dozen of millions, because again, it's difficult to stuck here too much custom product or to pull too much forward, so we still have a good backlog, so it's not like we have anything in the first quarter or so, I don't think was that.
Okay, that's a great explanation, Sebastien, thank you.
Thanks.
Speaker Change: Thank you. Once again, that's Star 11 for questions, Star 111.
Speaker Change: And I'm not showing you any further questions at this time. I don't like to turn it back over just a fashion for Nicholas M. Works.
Sebastien: Thank you very much and thanks to the analyst that follows us. I think you know well the story, your reports are good, you have good questions so thank you very much for that.
Speaker Change: And that, I think we had a good results. I think that's pretty clear to all the documents, but any question, but you can always come see us today at the annual assembly in Montreal at 11 o'clock. Otherwise, when we see you there in Q2, thank you very much.