Core Molding (CMT) 8 Aug 232023 Q2 Earnings call transcript

Good morning, everyone. Welcome to the Core Molding Technologies Second Quarter Fiscal 2023 Financial Results Conference Call. [Operator Instructions] Please note this event is being recorded.

Now I will turn the call over to Sandy Martin, Three Part Advisers. Please go ahead.

morning, good and you everyone. Thank joining We Technologies the Molding for call appreciate to XXXX. you conference for review Core results us second quarter

and Zimmer. the Core the on today EVP CEO, President company's John me and Dave CFO, Joining and Duvall; call Molding's are

also Relations and can that is Q&A Today's including section audio at through any be page Presentations session webcast may Events no as accurate replay date information recorded. time-sensitive the advised the or coremt.com. any on and being Please will of call transcript reading. accessed the be This link the be the be Investor call, longer of of

future you discussion are performance or statements would Litigation like historical of future and statements not forward-looking I of to pursuant Securities are Private provisions statements Reform or made including harbor that Act that to the XXXX. events are the in safe today's remind financial facts, also made expectations the or

by results outside Forward-looking implied. to statements, uncertain release company's the on expressed today our forward-looking earnings differ that Please disclosures from may control. statements. or refer for press and those the of issued materially was their nature, are Actual

measures the our EBITDA, GAAP including of Management to cash flow be free the other with Molding obligation statements. nearest detail described uncertainties return and measures, and capital refer the company's update adjusted or to Commission. release. in publicly to filings These Reconciliations are Technologies will on employed. found forward-looking and the earnings factors non-GAAP Exchange risks and end no Securities can in Core assumes any revise at

like of of included to turn Duvall. an release the over on we Dave? Dave is release has also coremt.com. would And A submitted call to press copy today earnings the posted the at the X-K SEC. I section Investor Relations website earlier to now our the been in Finally, issued

quarter. morning call. share important earnings this Good We're to our you, several Thank accomplishments and to excited in Sandy. welcome second quarter

share as that XXXX and of to June, want well joined are I the end This driven winning talented hardworking record executing our of customer a a vision result driving and our by for want support Core's Core quarter focus at First, as the of Index. second of our milestone business culture team to I Russell improvements major their team thank direct people growth every dedicated shared continuous our relentless in day. on and improvements.

comments. Before about we results, talk provide I to other a want our briefly few

all of through Core's our strategic we Win Must discussed XXXX Battle one of our for initiatives As last achieving growth profitability to operational X higher performance quarter, improvement is commitment across locations. Core

We on focused our excited in the a increased highest operational quarterly understood decade. our over to to for that production are in of increased operational gross this XX%. margin This improving continually initiatives execution quarter, gross that XXXX We would excellence excellence margin share the a gross Again, disciplined in quarter I'm result efficiencies. margins. and is

to -- with you during few a If the quarters quarterly X. it Zimmer John remember start wanted said he calls, see last

cost quarter first this focus we improvements solutions is transformation of as the especially forecasting, technical last execution, the XXX-basis well. from a is of consolidating by markets. this of material an know margin result that momentum operational and successful into point recoveries new XXX year more on or progressing direct these expansion or our are our QX importantly, And and We that believe relentless our the great business I improvement John. compounding. adjacent Sequentially, gross points a from basis results So gaining evidence is increase expand a year. sales,

our processes in continuous XXXX fully improvement our embedded that and see supporting Win I'm culture. for Must is excited Battle our operational excellence to

opportunities near-term performance operational optimizing strategically focused continually remain molding within business. our compound plant and sheet capacity through in will improvements we on driving We are

For X% our an QX. in we improvement focused the the Recall reported in plants. first increased of that XX% we productivity by year, productivity our half

we cost, demand proud opportunity our is So report our are overall and as our reduces increases cost which to which the on look reduces capacity technical machine resources, the in a forward. plant productivity, continued significant we improvements

for appreciate supporting events operational teams teams A focused and Must facilitating us. are processes. providing Battle. development on-site organizational all I support The improvements, are how Win XXXX means in a our Battle Win Kaizen and it's Must and driving our cross-functional priority of system

specifically Now quarter. the turning to more

Second sales we mostly quarter medium- sports XX% continue shifted Compared with diversification softening power our and heavy-duty of of in our first industrial and in the mix to and and QX building quarter. strength product products. industrial power of grew trucks demonstrated back second utilities and quarter industries transportation to sports the see utilities, below benefits in sales

last we the to products. programs related and categories, specifically solutions, As storm cover mentioned and quarter, utilities to continue in-ground vault win we in industrial flush water

where to solutions. are sports provide business excited new the high-value the in And contribute early will replacement revenue first expecting differentiate the approximately these of are contracts launch in programs business in launch we industries. in relate million to the we we Our in and year technical XXXX These new programs further of as our primarily solutions new half industrial team and engineered power that $XX to XXXX. annualized growing signed that end they and markets

lower will offering existing margin ownership and complexities. continue on differentiated manufacturing seek performance, enhancements product new reduced that by customers a solution with cost to focus of improved and We

the certification currently industrial several mid-August. regarding sustainability EcoVadis further efforts, completed customers. the we certification are supports Core's rating. Finally, this utilities for of and expect process proposition And by we our be value in This to

developing increase materials. customers recyclable traditional of a to completely converting by their from We work recycled solution with to material usage continue or

and providing wide solution portfolio important All of align is value Molding. solutions these driving will where of efforts blue-chip processes. our long-term This that our proprietary for companies arrangements. and over We customers shareholders especially with Core for sustainable strategy our relationships processes believe create single-source our of closely manufacturing course, with by customers, utilizing of our in we a provide firmly XX for long-term technical

cover over like I'd financials that, now more With the in to to turn detail. John to it

Good Dave. morning, you, Thank everyone.

We drive growth initiatives this a price financial and quarter results selling were and continue our efficiencies. our result strategic combination to numbers hard of operational mostly second of improvements this Record work. the reflect X year

Dave As stepped mentioned, drive more production improvements our team has are believe up we and attainable. to improvements

capital generate our discuss we cash ability A focus of direct in which return free will result a employed, company's few improve is and the performance to operational flow on improve moments. to

XX-month our highest EBITDA our through want adjusted This initiatives the progressing our company's totaled million, in $XX.X and hard I growth congratulate trailing on ever Our their are gives history. second the team to confidence that strategic quarter work. us

our financials. to Turning

for Product in $XX.X the XXXX sales to of with raw or increased customer sales quarter million Gross million Second were year largely increased net compared profit the X.X% prior year of prior which a to the versus driven by cost. demand, were XX% $XX or material year second to ago. primarily period, $XX.X to flat coupled sales million million recover rose pricing, changes $XX.X in quarter. XX.X% quarter sales compared customer

price to primarily margin well During production customer as was as expansion improvements. efficiencies due the quarter,

about second weaken We in dollar on see quarter, of gross XXX the peso against negative basis dollar continue impact the Canadian which points margin. the to has a U.S. and

in impact the actively dollar Canadian peso dollar. to an We our exposure the negative change by of but a to overall still earnings the hedge portion the and experienced Mexican

expenses compared relating year. quarter million period. improving year-over-year administrative this increase prior and our performance $X.X general due variable to was costs to in were Selling, the year to for $XX.X The the primarily million compensation-related

reported of company more the quarter, operating $XX.X an operating second million year the quarter. income $X.X the from million, increase ago of In income the Xx of than

income XXX year points quarter Our margins XX.X%, from were for XXXX basis the operating prior the second quarter. up

XX.X% included to the stock a $XXX,XXX rate quarter recorded second tax effective compensation the related tax period. and was Our for in benefit

XX.X%, the benefit, rate Excluding would been with quarter. have the tax effective consistent our first

and of per last quarter based adjusted compared of X% margin generated million declined on $X.XX EPS year's prior investment income or share last debt of sales $X.XX, diluted Adjusted versus this the an to XXX%. was in diluted increase refinancing in EBITDA $XX.X EBITDA income expense interest quarter. our $X.X an or was year for year XX.X% the balances million cash over excess period. Net from Net our of

gross progress expansion results We improvements second that EBITDA margin, more and are with margin quarter we operational reflected pleased in our believe on are our still attainable.

end GAAP the non-GAAP tables at of release. Our press are our included to reconciliation

prior Now were largely million, by power $XXX.X year the the for Net the first sales Similar up period. X.X% results. momentum sales first ago driven and totaled turning in year half to sports. X transportation and to half quarter, increased increases second the versus X.X% months a product sales versus first

the with costs. or percentage due material margin period. in second gross half half to efficiencies or first net compared the year our XX.X% pricing production was customer $XX.X million sales was XX.X% and sales raw Consistent and ago First of $XX.X favorable quarter, primarily to margin of million

were million for currency foreign the share $XX.X the expenses XX% $X.XX to million comparable million, income net share aggregated the from per XXXX year year to $XX.X first per or or lower SG&A interest was by discussed half the diluted million X and $X.X increase half. benefits the tax headwinds, impacted million first in earnings first months similarly compared before. an in for income period. expense Net $X.XX period. diluted of prior Operating compared $XX.X Year-to-date, were $XX.X

year. compared or adjusted half million million XX.X% First sales to EBITDA was $XX.X prior of the in $XX.X

a of is to see a XXXX. sales, lower normal on of the be several to XXXX, company We impact that product years chain margin seasonality and in the seasonality slowdown some they Based percent company the challenges. a year The to has are beginning will combination product after sales second seasonality direct anticipates supply seasonality will half for in and resulting the mix. result flat the business markets return a slightly product and XXXX, sales anticipate of half seasonality, COVID from In full gross and normal that full lower year XXXX. a unusual first volume than in the of our sales our XXXX of than normal on

second we with XXXX shifts of margin year potentially half will the XX.X%. compared a expect to by in be year gross leverage, in full will margins the lower gross the XX% resulting anticipate also to of seasonality, full margin impacted XX% produce gross which We cost range mix fixed normal coupled

cash of positive million the with provided flow. were were flow and first operating in company's Turning a year the cash for now capital million, the by XXXX activities for to of a June year. ended million half resulting $XX.X XX, of Starting for the cash X expenditures company's $X.X The free months the discussion position. financial $XX.X

expected expect to continues capital We be for as flows of free remainder are year to managed. and cash tightly outpace the operating working to expenditures flows the generate cash capital

Our full year million $XX be capital expenditures are $XX to between in estimated million and XXXX.

of ample liquidity a company cash invest in adjusted had at our company EBITDA business, combination less and availability end also cash debt second the the of end grow than the at the of million $XX.X which June The lines. of ratio term At includes capital revolver $XX.X quarter. the Xx credit debt-to-trailing and million under remains XX, the June to of and and and had equivalents XX-month EBITDA

continues with controlled $XX quarter the at were Our and of of days Xx working the million managed less with well as ended payable million capital to accounts June. Inventories June. to end than XX netted DSO QX. days, and down $XX.X well accounts of XX from receivable of be a remained And in we

disciplined annualized and return deployment a on of pretax prudent manner and basis, capital growth employed, to an in of flexibility strategic -- on a strategic on capital. sheet to manage our a balance provides focus use improved return liquidity We our combination good to to a growth capital a our Finally, driven plan and strong that by metric, continue believe XX.X% initiatives.

margins As on higher-margin at impact we technical our the business. of mix and continue improve sales and operational to plants discussed, shifts work to in all our product efficiencies solution reduce Dave the

as spending. Must Win quality Our productivity well productivity overhead for and scrap major of institutionalizing Battle as labor includes and XXXX reduction improvements reductions,

efficiencies. out work with our year new launches, take focused the a improvements up operational usually are to from operational launch We which all also to product on

Our are margin capital. long-term well as enhancements as gross performance and capacity, further operational and return increased efficiency throughput targeting on goals

our drive that Our objectives operational dedicated our additional stay on working on growth well improvements focus performance from initiatives. company and technical consistency full these. And all focus revenue of sales, continuous maintaining solution long-term our with And targets strategic profitability as include The course and is as as that we flow down initiatives plan improvement growth, generation. by creation. and to attention flow a to strategic management goals free our programs entire value growth cash -- profitability team and enhancements, with goals, on and is on X

some comments. turn to I'd to back With that, like final Dave it for

then working will the first improvement. take John. a you, operational productivity of year, XX% continual this Reaching took and and maintain X Thank in and improvement to discipline to months daily continue

We have onboarding upgraded continue this leader out training will and roll in to across our X frontline locations the and organization.

I into which sheet John embedding and operations, the our Win our is for systems about both have As plants XXXX our Must fully improvement benefits most. the molding continuous challenged Battle compound more explained,

With improvements in projects. continuous and the we sustained, focus scaling the structure systematic and now can place technical company-wide improvement cross-functional on

We and and have incorporated locations. in program some educational co-op also expanded our apprenticeship have internship program an

programs. by partnering providing facilitated are agencies funding and technical training external We technical with for

capabilities. and is All support to and our of strengthen turn, in team organizational our this strengthen

a focus level throughout on driving Must our speed of the Win which Battle our quality places high of a communicated into initiative. and have We win organization, goals

We increase Molding. drives by Core within capacity our for costs and metrics as will we productivity, success of and as next foundation the return growth This at as focused investments a reduce locations. XX% plan stronger to for our level expand on much better continue the creates

greenfield have and best the add or to evaluating We we currently site. plan approach acquisition, facility either are we communicated by capacity that expansion

As last additional also to efficiencies, support and reduce automation capacity. production costs I quarter, we mentioned in are further the increase adding

our and current up will value returns. in Battle Our Win XXXX before shareholder function technical a step step and Must creation machine was expertise in foundational maximizing growth, accelerate investing which capacity freeing long-term

our continuing industry, enhance solutions includes further. diversification margin that with to by expand revenue profiles outlook engineered XXXX high-value Our our

and monitoring are are the half utilizations. and second demand customer labor in environment the We and asset into and to 'XX forecasts 'XX of calibrate continuing

the to various of year optimistic including advantage compared about the full strong taking and opportunities for has XXXX. that We performance in of government-funded up from that well opportunities XXXX set are performance and projects. sustainability require resulting first cautiously us rest believe a XXXX solutions, infrastructure industries We're new half

Coming progress a us our And that acquisitions. of year most of XXXX, the up growing the was to not locations at making successfully of set of first understood turn we We the company. long-term just our into both needed executing growth we operating all level, believe and to half high this happen through foundational has to the the attention organically in company them. more

and company is towards ready Our team forward the long-term deliver to shareholder drive value. goals our long-term to

in on the IDEAS Midwest August in your if Finally, And XX, like on call we a Conference to we questions call. at will would be Chicago or you person. meet today's follow-up want with welcome us

With that, Operator? for up I line would like questions. to the open

first [Operator EF comes with The from Tim Hutton. question Instructions] Moore

want decade. guidance. margin it out said, the just was margin Congratulations highest operating and the Maybe I I on in strong gross expansion. very like you a over margin sales with to mean, first start

some a last have lot end steel been tail You demand trucks. kind production sales from sports the of this in for might that understanding is with has of to you're year do some elaborated full seasonality correct on and that the pandemic maybe my last catch-up, of year, that. and seasonality And it comparables swing commercial normalized even tough more expecting for But power abnormally year. explain would and the high of

Yes. That's Tim. a view good on really it,

made customers chain we've dealerships a in the were the think pipeline. with seen lot of their product shortages, changes COVID fill extend I to the and supply or the build that lines there what past and either

being we've into and So shortages the with as That's when holiday then far the seasonality, we're as tailing We're supply back then it's seeing this always QX, reduced. year. exactly QX seen seeing season. QX what normal off highest that and I we're really think back the QX the coming coming to which chain

revolves XX% Great. production your color. my goal productivity That's And next this improvement helpful question around your efficiencies and year.

the first gross that for year? question. be the Where So you for this And you probably do fair XX% this the XX% end of for to for a for are range X-part think improvement end for But lower lower assume maybe on productivity of of year in the half you me your is the of I at just to the do that year? XX% think the guidance the you that it's might margin lines be XX% it'd at XX% to second the year. given way year think of half sales, that, gross up the doing, the XX.X% seasonality despite in the margin that

forecast. it Yes, question question to second the I'll John on the and answer then the leave first for

So we're plants as would about overall throughput for productivity, beginning the at at we from the XX% for probably those far the year. plants, SMC we're at productivity, had really in the the that least the We looking as XX%. said question, plants get overall X

So the that And to got of right moving some in trending you sustainability level next before what I think we're you direction. get is, we're start to now seeing to phase. on

take seeing sustainability continuous entire improvement the into processes plants the we're overall company. become that And So integrated for place. those

now, XX%, Tim, think comfortable it is -- will we're middle on determine What that volumes the fixed that. we leverage. say next months, would of cost the a mean in we're will that And XX% to X of right over happen well, Yes. I lot, pretty our the kind

And month forecast truth, of we months. think in. those from then the volumes come the probably mix. for tell and a about is other little watch and to piece constantly are good volumes X forecasts Mix customers. But seasonality so the change We we'll change. bit revenue can And from throughout where the they get a the you

we'll XX% but and the watch play what little But drive difference really comes probably that of the will between now about is right XX%. thinking mix into mix, volumes of And we're bit we're that so right a middle also. in and

is in bit Should lower next a do second the noticed probably expect was year? it's in I'm sales you around color, of accruals. be SG&A way it I up half Dave And and the ticked of the of in bonus the a guessing percentage the very half to than of That's it John. first SG&A. helpful June quarter. question the we because as year My

not I earnings, do a bonus with a and our at We compensation. our there's variable SG&A SG&A of a accounting. then of the is piece there's from matching fixed Maybe percent look piece Really it way our our as match a bonus of to sales. do variable. our try The expense is, principal

first look bonus that lot of of year I it of the expense. bonus is during our those of at day, a of And the come people the then it SG&A It's expense way of so the where That's around rate is, the just pay away. half is is. carries every half the work lot second $X.X The year. or go most of million, the less normal of And pieces a it types and fixed run to really kind things. the

then you a million And between the what type see SG&A and any bonus $X.X difference in usually accrual is thing.

for so was first about -- months quarter, couple million. first $X.X you can see of the And it

I quarter, million. little fourth try lower match and expect will the earnings in $X.X because, down that we to be third and go in quarter. earnings expense just think and accrual to would fourth was bonus we This it again, quarter a third the with bit

you machines some to start long combination goal as expansion. My helpful. up -- and certification do This mentioned just kind lead the goal sense something seeing then month-wise XX% of a $XX in that and give maybe is your you million it's capacity if certified a when from new you of in David that great time you utility long for maybe get before, you expansion like when ramp sales, maybe when expansion, take, can of maybe? next of a the more in launches the your brownfield. goals. remarks. of organic near-term But automation is And And How how us, capacity That's internal prepared is does a is question or your strategic. said attribute

X about at as I launch. if at XX say just it standard you're look say far overall between, I as a the vary, so the transferring mean, a months months minimum to anywhere if or program will lot, Yes.

big it's a I think us, the though, process. thing for continual

brick-and-mortar pipeline So point been we working we're programs what our whether acquisition now, which we're looking capacitize that we at on in situation. that's can -- a facilities, volume, expansion are have we're site current haven't But still stopped or we to greenfield where our of or now and a it's do that doing. that there's a an at in

Great. is last My investors helpful, free like to really on I around Dave. this. feel haven't cash caught flow. That's very question

CapEx it really been in million quarter this cash shone of lot you're with the through $XX of growth a half the quarter. doing free in already You've this year, first in $XX but of June flow million just

the As probably you would be you year you million? I second you the working free cash benefit sales think already ARs with $XX could $XX natural about talked million and maybe receivables, capital cadence the of that off, flow some collect maybe achieved about you've half as do this that year, if and thinking

no, -- you cash the we'll you we think half believe year I Tim, do would be second off. Again, I also. the for of don't generate Yes, flows think

flows. resources million operating we can good projects, a with I do how and $XX cash made, we pretty find about kick to are spend the Really with you've million stuff. not getting we projects operating it, improvements about free the get we've think do. wanting to CapEx not our cash it's matter sometimes it much will in from cash even done that and probably of we'll It's that believe where flows, sales, to it's $XX always off lower operational equipment now to of trying ordered flow,

problem have initial an That year would teens projection. the flow for I a end at cash upper And don't so free of there. the think no, -- the think you I is

And insightful. of continued look the and couple next the I forward enhancement profitability and over helpful very EBITDA to is years. This

Corporation. The Value next question comes Global from with Investment JP Geygan

you of again. but to I'll at ask parts number been different has answered risk ways of asking repeat in question the first a My yourself, in

beyond maybe still should about made a 'XX, job expect or XXXX Or we of asset base efficiency You've using automation Battle given improving said before of another existing way, the out existing talked and part how your And productivity. something the which the optimizing is the how business lot really Win to of forced asset then can But much you squeeze kind done this of question, to turn your you in organically and you're you've forward the maybe for second What -- about gain. inorganic connected you decision or great decide And Must to ways the acquisition terms a improvements. to you that really other this. expect base, form what that -- looking kind comments grow of how productivity will take greenfield, to form geography, tree? will versus in products, you of growth inorganic?

think JP, question. the it's question, a on first good So I

For really has and far current we us, it do evaluating systems. of with been to can we've how lot a our get

and you We put have can what facilities. asset large have in our holes all the you I plants, pit -- where would a currently the, a the say, the into filled

first really maxed to the the out we've So That to able large presses put place. was being facilities in step. relative

right the really the the assets. maximizing step of about is with facilities now all all Our output

to we free can so operational look the acquisitions Core put what successfully and we're So that's that And being in the system make able those to up that does what Win quickly the stabilize the and resources Battle. with at really do resources the model. Must and acquisitions operational is and now ready

beginning. of the that the from So that's we plan had overall really kind

a to Maybe automation continuous see say would going XX% below as continue put that X% X% not looking I a year. to greenfield improvements, improvement a existing or you're think somewhere we facility, a that sense we're how the and year, what there it's I and if on many technology in XX%, where It do we fits year new XX% to What do a or And it make whether to process. an your an capacity, expand is a want is really do on -- on have get fits acquisition? do that's a are of channels, depends we acquisition X at, need that within But assets. really depends expansion. where does or we areas X strategic than do to benefit more acquisition, material that and the of out sales those the it new the -- to of different

right. All That's helpful.

to question. Maybe that's a long your answer

go very the helpful though It's your I this. understand you process to and through comprehensive Is thought as appreciate color. additional

who terms it standpoint. capital really of chew the you for capital capacity little about after could think it than off might I around you priorities you're from investors we funding how In do more out about bit a financial been the given then allocation, But kind your that a How should bumping And up have think sting allocation acquisition, to expansion your this? for of be against in which existing least infrastructure? bit turned have a think acquisition of -- good you HPI at seems. while, and a initially,

Yes.

thought think we business I how really go deal going that our us the did little in we same We less that the look of know the in turnaround a we into -- EBITDA that we into strategically which Don't XXXX capital. when when will at we've we the and on the But issue. were -- process think we traditional we went models. mean, I back caused the we changed actually really did bit take to all we Xx mentally were I than did, or Horizon. don't took

balance our We times leverage we're EBITDA X aggressive the are sheet. where to up X, and X, going out not company go an

that the going everything can X to bring on else pretty We're be We'll we handle to make out be statements. probably going during and whatever are downturns between We X.Xx. responsible. and to sure leverage we even we model financial

we'll not that the is over-lever pretty think we balance have standpoint, much even. So that higher sheet. our now The I benefit EBITDA conservative stay is in

probably and us And a it we're -- company. diversified more does so allow much

the of risk reduces in downturn the any any it our certain certain hurting So industry, industry financials.

And to than so the It much wouldn't now thought any I better we're be probably in in think process. X.Xx. X but position more a same we're

us is into -- thing a that line, to, we we about debt for nice a As a to of that structure far on expansion want have did we set we CapEx and debt and the specifically we do capital, we payments those the X-year and if went CapEx, allows as things. CapEx that covenants ago the has this that, that separate year when that as that internal hand, rules ourselves have types structure our up plus growth line have we cash

organically us wanted So to allow business and $XX I inorganically we that really to to. expand the think million there grow if

with ways we're think than probably to probably overly acquisition, more up going EBITDA not even just We'll really X.X% levered business set finance than but I through growth. to X% organic we're different So stay an no less get on aggressive. to the that

can cost for finally that a And seeing years Has been situation you're you talk bit the labor now? today? of [indiscernible] that the a pressures and little Okay. about me, for couple

not mean as if labor Yes. to what seeing constantly the were new for far in. rates, ago, relative In years far and nearly our we adapt I had being seeing we're a maybe we're as as sure moving to we've and competitive year locations, is that what ago, areas of X.X businesses wage our today. as seeing most watching

it's go the with looking somewhere or constantly our trying lot don't our place go in we're better else. so it to make come somewhere work have a when want at and done and and So where else to training our they that. facilities onboarding that people to We've a

we of to done on holistic we've what view do. need So very a it

hands-on But everyone and do there's would on more has continue controls sure, that, the the do skilled improve that. programming or I that. I to trades to say technical that's challenges, always and like think we is things that really still, like and area PLC talk and that, I For more to

session. turn Instructions] over for would I question-and-answer [Operator Duvall our conference to closing concludes This back to like Dave the remarks. any

you. Thank Thank when continued to interest third quarter you results of for our update an months. company. our forward providing your few we a We the in in report look progress

today's The conference concluded. now has attending for Thank you presentation.

disconnect. now may You