Q1 2025 Ampco-Pittsburgh Corp Earnings Call

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Operator: Good morning, and welcome to the Ampco-Pittsburgh Corporation First Quarter 2025 Earnings Results Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key, followed by zero.

Good morning, and welcome to the Ampco Pittsburgh Corporation first quarter 2025 earnings results Conference call.

All participants will be in listen only mode.

Should you need assistance. Please signal a conference specialist by pressing the star key followed by zero.

Operator: After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your telephone keypad. To withdraw your question, please press star, then two. Please note, this event is being recorded.

After todays presentation, there will be an opportunity to ask questions to ask a question Press Star then one on your telephone keypad.

What's your all your question. Please press Star then two.

Note. This event is being recorded.

Kimberly Knox: I would now like to turn the conference over to Kim Knox, Corporate Secretary. Please go ahead.

Tim Knox: I'd like to turn the conference over to Tim Knox Corporate Secretary. Please go ahead.

Kimberly Knox: Thank you, Wyatt, and good morning to everyone joining us on today's first quarter 2025 conference call.

Tim Knox: Thank you, Brian and good morning to everyone. Joining us on today's first quarter 2025 conference call. Joining me today are Brett Mcbrayer, our Chief Executive Officer, and Mike Mcauley, Senior Vice President and Chief Financial Officer, and Treasurer also joining us on the call today are damn Lyon President of Union electric.

Kimberly Knox: Joining me today are Brett McBrayer, our Chief Executive Officer, and Mike McAuley, Senior Vice President, Chief Financial Officer, and Treasurer.

Kimberly Knox: Also joining us on the call today are Sam Lyon, President of Union Electric Steel Corporation, and Dave Anderson, President of Air and Liquid Systems Corporation. Before we begin, I would like to remind everyone that participants on this call may make statements or comments that are forward-looking and may include financial projections or other statements of the Corporation's plans, objectives, expectations, or intentions. These matters involve certain risks and uncertainties. many of which are outside the corporation's control. The corporation's actual results may differ significantly from those projected or suggested in any forward-looking statements due to various risk factors.

Damn Lyon: Steel Corporation, and Dave Anderson, President of Air and liquid Systems Corporation.

Damn Lyon: Before we begin I would like to remind everyone that participants on this call may make statements or comments that are forward looking and may include financial projections or other statements of the corporations plans objectives expectations or intentions.

Damn Lyon: These matters involve certain risks and uncertainties many of which are outside the corporation's control.

Damn Lyon: The corporation's actual results may differ significantly from those projected or suggested in any forward looking statements due to various risk factors, including those discussed in the Corporation's most recently filed Form 10-K, and its subsequent filings with the Securities and Exchange Commission.

Kimberly Knox: Including those discussed in the Corporation's most recently filed Form 10-K and in subsequent filings with the Securities and Exchange Commission. We do not undertake any obligation to update or otherwise release publicly any revision to our forward-looking statement.

Damn Lyon: We do not undertake any obligation to update or otherwise release publicly any revision to our forward looking statements.

Kimberly Knox: A replay of this call will be posted on our website later today. To access the earnings release or the webcast replay, please consult the investor section of our website at AmpcoPGH.com.

Damn Lyon: A replay of this call will be posted on our website later today to access the earnings release or the webcast replay. Please consult the investors section of our website at Ampco P. G H dot com.

Brett Mcbrayer: With that, I'd like to turn the call over to Brett McBrayer, Ampco-Pittsburgh CEO. Thank you, Kim. Good morning, and thank you for joining our call. As reported in our press release in 10-Q, Ampco-Pittsburgh Corporation reported earnings per common share of $0.06 for the first quarter of 2025, an improvement of $0.20 compared to the prior year quarter. Adjusted EBITDA for the quarter was $8.8 million compared to $5.1 million in the first quarter of 2024. Both segments showed significant EBITDA improvements versus the prior year. The quarter was highlighted by record order intake for air and liquid and continuing benefits from our new equipment in our U.S.

Damn Lyon: With that I'd like to turn the call over to Brett Mcbrayer Ampco Pittsburgh C E O Bret.

Damn Lyon: Thank you Kim and good morning, and thank you for joining our call.

Damn Lyon: As reported in our press release, and 10-Q Ampco Pittsburgh Corporation reported earnings per common share of success for the first quarter of 2025 and.

Damn Lyon: An improvement of 20 cents as compared to the prior year quarter.

Adjusted EBITDA for the quarter was $8.8 million compared to $5 $1 million in the first quarter of 2024.

Damn Lyon: Both segments showed significant EBITDA improvements versus the prior year.

Damn Lyon: Quarter was highlighted by record order intake for air and liquid and continuing benefits from our new equipment at our U S forged business.

Brett Mcbrayer: forge business. We expect to experience some near-term impacts in Q2 as markets and supply chains react to the recent tariffs. However, our intent is to protect our margins by passing through to our customers any negative effects. We are nearing the conclusion of our collective consultation process at our UK facility. We expect to eliminate much of the losses for this business as we move forward.

Damn Lyon: We expect to experience some near term impacts in Q2 as markets and supply change react to the recent terrorist. However, our intent is to protect our margins by passing through to our customers any negative effects.

Damn Lyon: We are nearing the conclusion of collective consultation process that our U K facility, we expect to eliminate much of the losses for this business as we move forward.

Samuel Lyon: For further details regarding our segment performance, I will start by turning the call over to Sam Lyon, President of our Forge and Cast Engineer Product Segment. Thank you, Brett, and good morning, everyone. For the first quarter of 2025, Forged and Cast Engineer product segment reported net sales of $72.3 million compared to $77.2 million in the first quarter of 2024, primarily driven by lower roll volume and unfavorable exchange rates partially offset by higher base pricing and increased FEP ship. Segment EBITDA improved significantly to $8.27 million, up from $6 million in the prior year quarter. This improvement resulted from higher pricing, better manufacturing absorption, and a lower cost structure.

Damn Lyon: For further details regarding our segment performance I will start by turning the call over to Sam Lyon, President of our forged and cast engineered products segment.

Damn Lyon: Yes.

Damn Lyon: Thank you Brett and good morning, everyone.

Damn Lyon: For the first quarter of 2025 forged and cast engineered products segment reported net sales of $72 3 million compared to $77 2 million in the first quarter of 2024, primarily driven by lower rule volume and unfavorable exchange rates, partially offset by higher base pricing and increased <unk>.

Damn Lyon: Shipments.

Segment, EBITDA improved significantly to $8 $2 7 million up from $6 million in the prior year quarter.

Damn Lyon: This improvement resulted from higher pricing better manufacturing absorption.

Damn Lyon: Lower cost structure in 2024, we also had half a million dollars of costs associated with a fire at our Sweden location and a machine failure in the U K.

Samuel Lyon: In 2024, we also had half a million dollars of costs associated with a fire at our Sweden location and a machine failure in the UK. As previously announced, we initiated a formal collective consultation process with employees at our UK CAHPS facility in February. We now expect this process to conclude by the end of May. At that point, we will have clarity on the future of those operations and our definitive actions to dramatically stem our losses at the location.

Damn Lyon: As previously announced we initiated a formal collective consultation process with employees at our U K cash facility in February.

Damn Lyon: We now expect this process to conclude by the end of May at that point, we'll have clarity on the future of those offshore operations and our definitive actions to dramatically stem our losses at the location.

Samuel Lyon: Turning to market conditions, global steel demand remains soft but stable in our two largest markets, North America and Europe. That said, we are closely monitoring the evolving tariff environment. Currently, U.S. tariffs on rules are limited to the baseline of 10 percent. For our business, these tariffs apply to rules shipped from our European facilities to the U.S. As of yesterday, tariffs on U.S. produced rules shipped to China were reduced to 10%. Our annual shipments to China are small, ranging from $2 to $5 million per year. We have an order scheduled to ship to China in the next two quarters, and the reduction from 125% to 10% tariffs on imports from the U.S.

Damn Lyon: Turning to market conditions global steel demand remains soft, but stable in our two largest markets North America and Europe that said, we are closely monitoring the evolving tariff environment currently.

Damn Lyon: Currently U S tariffs on rules are limited to the baseline of 10%.

Damn Lyon: For our business these tariffs applied to rural shipped from our European facilities to the U S.

Damn Lyon: As of yesterday tariffs on U S produced rules shipped to China were reduced to 10% or.

Our annual shipments to China are small ranging from $2 million to $5 million per year.

Damn Lyon: We have an order scheduled to ship to China in the next two quarters and a reduction from 125% to 10% tariffs on imports from the U S will relieve pressure and enable this shipment.

Samuel Lyon: will relieve pressure and enable this shipment. We have worked with our U.S. customers, and the vast majority have agreed to pay the cost of the tariffs. Importantly, with the U.S. castro market still underserved, our European operations remain competitive despite the tariffs. To date, only one customer has not agreed to accept this condition. This customer is elected to manage orders case-by-case to see if any trade deals eliminate the tariff. We would also expect the utilization of our U.S. customers' mills to improve as a result of the more comprehensive tariffs of 25% on aluminum and steel, which will benefit our business.

Damn Lyon: We have worked with our U S customers and the vast majority have agreed to pay the cost of tariffs importantly, with the U S. Castro market's still underserved our European operations remain competitive despite the tariffs.

Damn Lyon: To date only one customer is not agreed to accept this condition.

Damn Lyon: This customer has elected to manage orders case by case to see if any trade deals eliminate the tariff. We would also expect the utilization of our U S customers mills to improve as a result of the more comprehensive tariffs on 25% of 25% on aluminum and steel, which will benefit our business.

Samuel Lyon: Steel tariffs are also creating a significant tailwind for our domestic FEP business. Growth opportunities in tool steel, distribution bar, and block products are emerging as imports face these new costs. FEP sales and margins are projected to rise from our 2024 revenue of $11.8 million.

Damn Lyon: Steel tariffs are also creating a significant tailwind for our domestic FEP business growth opportunities in tool steel distribution bar.

Damn Lyon: And block products are emerging as important space These new costs FEP.

Damn Lyon: <unk> sales and margins are projected to rise from our 2020 for revenue of $11 8 million.

Samuel Lyon: In summary, we continue to enhance our profitability through pricing, operational efficiency, and discipline management of external risks, including tariffs and geopolitical uncertainties.

Damn Lyon: In summary, we continue to enhance our profitability through pricing operational efficiency and disciplined management of external risks risks, including tariffs and geopolitical uncertainties.

Damn Lyon: Brett.

Dave Anderson: Thanks, Sam Dave Anderson, President of Air and liquid systems will now cover his segment's results. Thank you Brad good morning.

David Anderson: Dave Anderson, President of Air and Liquid Systems, will now cover his segment's results. Thank you, Brett. Good morning. Great start to the year for Air and Liquid. Q1 sales orders were the highest order intake in our history. The order activity was driven by record order intake from the nuclear market, along with continued strong order activity for both the military and pharmaceutical markets. Revenue was slightly below last year, however, the product mix was substantially improved. Revenue for heat exchangers increased due to increased shipments in the nuclear market. Revenue for pumps was slightly higher than prior year, while air handling revenue declined due to the timing of order delivery dates and revenue recognition.

Dave Anderson: Great start to the year for air and liquid Q1 sales orders were the highest order intake in our history.

Dave Anderson: Order activity was driven by record order intake from the nuclear market along with continued strong order activity for both the military and pharmaceutical markets.

Dave Anderson: Revenue was slightly below last year. However, the product mix was substantially improved revenue for heat exchangers increased due to increased shipments in the nuclear market.

Dave Anderson: Revenue for pumps was slightly higher than prior year, while air handling revenue declined due to the timing of order delivery dates and revenue recognition.

David Anderson: Adjusted EBITDA in Q1 was $3.8 million versus $2.2 million in the prior year. Similarly, operating income was at $3.5 million in Q1 versus $2 million in the prior year. The increase versus prior year was primarily driven by a much better product mix. We continue to see positive activity in the nuclear market for our heat exchanger product line. We expect both orders and shipments to be at record levels this year. In March, we received our first order for a small modular reactor or SMR project. There's a great deal of activity in the new SMR market, and we have started working with several companies that are developing these new products.

Dave Anderson: Adjusted EBITDA in Q1 was $3 8 million versus $2 2 million in the prior year.

Dave Anderson: Similarly, operating income was at $3 5 million in Q1 versus $2 million in the prior year.

Dave Anderson: The increase versus prior year was primarily driven by a much better product mix.

Dave Anderson: We continue to see positive activity in the nuclear market for our heat exchanger product line.

Dave Anderson: We expect both orders and shipments to be at record levels. This year.

Dave Anderson: In March we received our first order for a small modular reactor or S. EMR project.

Dave Anderson: There's a great deal of activity in the new S. M. Our market and we have started working with several companies that are developing these new products.

David Anderson: Nuclear power in many ways seems to have become the preferred power option, and our engineering and manufacturing capabilities position us well as this market grows. There continues to be strong demand from the U.S. Navy for both new and aftermarket pumps. We expect this demand to continue as the Navy moves forward with fleet expansion plans. We still expect to receive the new manufacturing equipment from the Navy Funding Program by the end of 2025. This equipment, along with the equipment we installed in 2024, will position us to meet the expected growth in this market. Demand for custom air handlers remains strong.

Dave Anderson: Nuclear power in many ways seems to have become the preferred power option and our engineering and manufacturing capabilities position us well as this market grows.

Dave Anderson: There continues to be strong demand from the U S. Navy for both new and aftermarket pumps. We expect this demand to continue as the Navy moves forward with fleet expansion plans.

Dave Anderson: We still expect to receive the new manufacturing equipment from the Navy funding program by the end of 2025.

Dave Anderson: This equipment along with the equipment, we installed in 2024 will position us to meet the expected growth in this market.

Dave Anderson: Demand for custom air handlers remains strong from upgrading existing facilities to increasing research and manufacturing capabilities in the United States there.

David Anderson: From upgrading existing facilities to increasing research and manufacturing capabilities in the United States, there continues to be tremendous demand in the pharmaceutical market for our custom air handling products.

Dave Anderson: There continues to be tremendous demand in the pharmaceutical market for our customer air handling products.

David Anderson: Of course, tariffs have been a major subject in the last few months, so I wanted to provide some thoughts on how tariffs may impact air and liquids businesses. While the tariff situation remains rather fluid at the moment, I do not see significant negative issues. Most of our raw materials and components are excluded from the tariffs as they are either produced in the U.S. or they are exempted. For components that are subject to tariffs, we expect to pass on the majority of the costs in order to maintain our margin. There is some potential for short-term supply issues as the world adapts to the new tariffs.

Dave Anderson: Of course tariffs have been a major subject in the last few months. So I wanted to provide some thoughts on how tariffs may impact air and liquids businesses.

Dave Anderson: While the tariff situation remains rather fluid at the moment I do not see significant negative issues.

Dave Anderson: Most of our raw materials and components are excluded from the tariffs as they are either produced in the U S or they are exempted.

Dave Anderson: For components that are subject to tariffs, we expect to pass on the majority of the costs in order to maintain our margins.

Dave Anderson: There is some potential for short term supply issues as the world adapts to the new tariffs.

David Anderson: We have taken steps to mitigate supply chain disruptions that could occur later this year. If the tariffs do result in increased manufacturing in the United States, then there is potential for significant demand increases for our products, as the U.S. is our primary market. Onshoring manufacturing in the pharmaceutical market would only drive air handling demand even higher. Overall, more manufacturing would increase the need for our industrial heat exchangers and would drive higher demand for power generation, which would benefit both our commercial pump line and our nuclear heat exchangers.

Dave Anderson: We have taken steps to mitigate supply chain disruptions that could occur later this year.

Dave Anderson: If the tariffs do result in increased manufacturing in the United States than there is potential for significant demand increases for our products as the U S is our primary market.

Dave Anderson: Onshoring manufacturing in the pharmaceutical market when only drive air handling demand even higher.

Dave Anderson: Overall more manufacturing would increase the need for our industrial heat exchangers and would drive higher demand for power generation, which would benefit both our commercial pump line and our nuclear heat exchangers.

David Anderson: In summary, demand for our products remains strong. Adjusted EBITDA increased 73 percent versus prior year. And while the tariffs could cause short-term supply chain issues, in the longer term they have the potential to increase demand for our products.

Dave Anderson: In summary demand for our products remained strong adjusted EBITDA increased 73% versus prior year.

And while the tariffs could cause short term supply chain issues and the longer term they have the potential to increase demand for our products.

Dave Anderson: Thank you Dave at this time, Mike Mcauley, our Chief Financial Officer will now share more details regarding our financial performance for the quarter.

Michael McAuley: At this time, Mike McAuley, our Chief Financial Officer, will now share more details regarding our financial performance for the quarter. Thank you, Brett.

Speaker Change: Thank you Brett before I begin I'd like to comment on a change we implemented in our non-GAAP measures reporting starting in this Q1 of 2025.

Michael McAuley: Before I begin, I'd like to comment on a change we implemented in our non-GAAP measures reporting starting in this Q1 of 2025. You will note that these new disclosures and reconciliation tables are in both our Form 10-Q and in our Q1 earnings press release from yesterday. Specifically, we've begun reporting adjusted EBITDA, whereas in prior quarters we provided consolidated adjusted operating income. We added this because adjusted EBITDA increasingly became a key measure used internally. and because we believe investors will find this change helpful.

Speaker Change: You will note that these new disclosures and reconciliation tables are in both our Form 10-Q and in our Q1 earnings press release from yesterday.

Speaker Change: Specifically, we began reporting adjusted EBITDA, whereas in prior quarters, we provided consolidated adjusted operating income.

Speaker Change: We added this because adjusted EBITDA increasingly became a key measure used internally.

Speaker Change: And because we believe investors will find this change helpful.

Michael McAuley: Now, regarding our Q1 results... As indicated in both our Form 10-Q and in our press release 8-K filed yesterday, Ampco's consolidated net sales for the first quarter of 2025 were $104.3 million, a decline of approximately 5% compared to net sales for the first quarter of 2024, but about a 3% increase sequentially versus Q4 2024. Compared to prior year, the key drivers for the sales decline were lower shipments of mill rolls and changes in roll product mix, which more than offset higher net pricing in the forge and cast engineer product segment. and lower sales of air handling units due to timing of shipments in the air and liquid processing cycle.

Speaker Change: Now regarding our Q1 results.

Speaker Change: As indicated in both our Form 10-Q and in our press release 8-K filed yesterday Ampco has consolidated net sales for the first quarter of 2025 or $104 $3 million.

Speaker Change: A decline of approximately 5% compared to net sales for the first quarter of 2024.

Speaker Change: What about a 3% increase sequentially versus Q4 2024.

Speaker Change: Compared to prior year, the key drivers for the sales decline were lower shipments of mill rolls and changes enrolled product mix, which more than offset higher net pricing in the forged and cast engineered product segment.

Speaker Change: And lower sales of air handling units due to timing of shipments in the air and liquid processing segment.

Michael McAuley: Yet, Q1 2025 mill roll sales rose nearly 9% compared to Q4 2024, and this was the key driver for Ampco's consolidated sales growth sequentially. Solidated adjusted EBITDA of $8.8 million for Q1 2025 improved by $3.7 million versus prior year for a few key reasons despite the lower sale. The Fortune Cast engineered product segment, higher pricing, net of lower surcharges and related product cost changes, improved the segment's margins significantly. In addition, there was improved manufacturing uptime and manufacturing cost efficiency, due in part to improved machine reliability and uptime in our Castrol facilities, as am described. and in the air and liquid processing segment, as Dave indicated, there was a significant improvement in the product mix sold in Q1 of 2025 compared to the prior year.

Speaker Change: Yeah, Q1, 2025 mill Rolls sales rose nearly 9% compared to Q4 2024, and this was the key driver for Ampco consolidated sales growth sequentially.

Speaker Change: Yeah.

Speaker Change: Solid data to adjusted EBITDA of $8 $8 million for Q1, 2025 improved by $3 $7 million versus prior year for a few key reasons, despite the lower sales.

Speaker Change: And the fortunate cast engineered product segment higher pricing net of lower surcharges and related product cost changes improves the segment's margins significantly.

Speaker Change: In addition, there was improved manufacturing uptime and manufacturing cost efficiency due in part to improved machine reliability and uptime and our cast roll facilities as Sam described.

Speaker Change: And in the air and liquid processing segment as Dave indicated there was a significant improvement in the product mix sold in Q1 of 2025 compared to the prior year.

Michael McAuley: Corporation's total selling and administrative expenses for Q1 2025 increased 5% versus prior year due to inflationary increases, higher employee related costs and higher professional fee. Interest expense of $2.7 million for the quarter was flat with prior year. Other income net was declined slightly versus prior year. The income tax provision for Q1 2025 decreased $0.4 million year-over-year primarily due to the benefit of reduced tax rate in one of our foreign taxpaying jurisdictions. As a result, net income attributable to Ampco-Pittsburgh for Q1 2025 was $1.1 million, or $0.06 per share. This compares to a net loss of $2.7 million, or $0.14 per share, in the prior year for a $0.20 per share EPS amount.

Speaker Change: Corporations total selling and administrative expenses for Q1, 2025 increased 5% versus prior year due to inflationary increases.

Speaker Change: Employee related costs and higher professional fees.

Speaker Change: Interest expense of $2 $7 million for the quarter was flat with prior year.

Speaker Change: Other income net declined slightly versus prior year.

Speaker Change: The income tax provision for Q1, 2025 decreased <unk> $4 million year over year, primarily due to the benefit of a reduced tax rate in one of our foreign tax paying jurisdictions.

Speaker Change: As a result net income attributable to ampco Pittsburgh for Q1, 2025 was $1 $1 million or success per share.

Speaker Change: This compares to a net loss of $2 $7 million or <unk> 14 per share in the prior year for <unk> <unk> per share EPS improvement.

Michael McAuley: Total backlog at March 31, 2025 of $368.5 million rose $19.7 million, or 6%, versus March 31, 2024.

Speaker Change: Total backlog at March 31, 2025, or $368 5 million rose $19 $7 million or 6% versus March.

Speaker Change: At March 31 2024.

Michael McAuley: with both segments experiencing increased compared to December 31st, 2025, however. Despite the record order intake and error in liquid in Q1 2025, total backlog declined due to the timing of placement of new orders from some of our larger roll customers, which typically occur later in the year. Net cash flows used by operating activities was $5.3 million for Q1 2025, reflecting primarily a rise in net working capital. Corporation also made a pension contribution of $0.8 million during the quarter. Capital expenditures for the first quarter of 2024 were $2.2 million.

Speaker Change: With both segments experiencing increases.

Speaker Change: Compared to December 31, 2025, however, despite the record order intake in air and liquid in Q1, 2025 total backlog declined due to the timing of placement of new orders from some of our larger roll customers, which typically occur later in the year.

Speaker Change: Net cash flows used by operating activities was $5 $3 million for Q1, 2025, reflecting primarily a rise of net working capital.

Speaker Change: The Corporation also made a pension contribution of $8 million during the quarter.

Speaker Change: Capital expenditures for the first quarter of 2024 were $2 $2 million.

Michael McAuley: At March 31, 2025, the corporation's liquidity position included cash on hand of $7.1 million and undrawn availability on a revolving credit facility of $28.6 million.

Speaker Change: At March 31, 2025 to corporations liquidity position included cash on hand of $7 1 million and Undrawn availability on our revolving credit facility of $28 6 million.

Operator: Operator, at this time, we would now like to open the line for questions. Thank you. We will now begin the question and answer session. To ask a question, you may press star, then 1 on your touchtone phone. If you are using a speakerphone, please pick up your handset before pressing the key.

Speaker Change: Operator at this time, we would now like to open the line for questions.

Speaker Change: Thank you. She will now begin the question and answer session to ask a question you May Press Star then one on your Touchtone phone.

Speaker Change: If you are using a speakerphone please pick up your handset before pressing the keys.

Operator: If at any time your question has been addressed and you would like to withdraw your question, please press star, then 2.

Speaker Change: If at any time. Your question has been addressed and you would like to withdraw your question. Please press Star then two.

Unknown Attendee: Our first question will come from Ronald Hove with Van Esk Holdings. Please go ahead.

Speaker Change: Our first question will come from Ronald <unk> with Venice Holdings. Please go ahead.

Unknown Attendee: I did not register for a question. Apologies for that. I will remove you.

Speaker Change: I didn't know how to register for a question.

Speaker Change: I apologize for that I will remove ya.

Operator: At this time, we will pause momentarily to assemble any further questions. With no questions, this will conclude our question and answer session.

Speaker Change: At this time, we will pause momentarily to assemble any further questions.

Speaker Change: With no questions. This will conclude our question and answer session.

Brett Mcbrayer: I would like to turn the conference back over to Brett McBrayer, CEO, for any closing remarks. Thank you. I want to recognize the strong performance by our employees in Q1 as they continue to drive positive improvements throughout our business. Thank you for your great work. I also want to thank our shareholders and board of directors for your continued support. Despite the uncertainty in our markets, we remain focused on delivering significant improvements in our businesses as we move forward. Thank you for joining our call this morning.

Speaker Change: I would like to turn the conference back over to Brett Mcbrayer CEO for any closing remarks.

Brett Mcbrayer: Thank you.

Brett Mcbrayer: I want to recognize another strong performance by our employees in Q1 as they continue to drive positive improvements throughout our businesses. Thank you for your great work.

Also want to thank our shareholders and board of directors for your continued support.

Brett Mcbrayer: Spot the uncertainty in our markets, we remain focused on delivering significant improvements in our businesses as we move forward.

Brett Mcbrayer: Thank you for joining our call this morning.

Operator: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

Brett Mcbrayer: The conference has now concluded. Thank you for attending today's presentation you may now disconnect.

Brett Mcbrayer: [music].