Applied Industrial (AIT) 11 Aug 222022 Q4 Earnings call transcript

Welcome to the fiscal 2022 Fourth Quarter Earnings Call for Applied Industrial Technologies. My name is Ingrid and I'll be your operator for today's call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. [Operator Instructions] Please note that this conference is being recorded. the and to Treasury. turn of Cieslak, now Relations Investor will call Ryan over Director I Ryan, may you begin.

release deck Thanks, Ingrid, Both Investor morning, earnings Relations This on of the supplemental and good available applied.com. morning we to these documents section issued in quarter of our fourth detailing everyone are call. and results. investor the our

uncertainties, based from Before no including may certain statements. All forward-looking publicly outlook and we begin, make our to or in just detailed revise differ Company update in subject a statements those reminder, forward-looking on are SEC we'll risks results undertakes expectations statements. The to and discuss those our business Actual the current forward-looking forward-looking any obligation filings. expressed materially statement.

use to are measures documents. will non-GAAP in those In financial the referenced addition, subject conference which qualifications the call

Neil it and Officer; With Our Applied's speakers Dave that, to Financial today over I'll Neil. Chief Wells, include Chief President Officer. and Executive turn Schrimsher, our

Thanks, with then forward you Ryan, with current and and good forward. our some I'll our on quarter with specific fiscal the expectations and perspective guidance, Dave industry XXXX detail our some thoughts. start performance quarter's results, conditions more going including appreciate I'll fourth us. joining follow on will outlook, morning, and everyone. We final today close

on and overall, encouraged EBITDA XX% XX% growth. earnings. sales sales of grew ended up how performance the we record year. EPS So across very XX% quarter We achieved another and was

reduction. continuing position and long-term Company as total, continuous We for actions, success are many for despite inflationary numbers ongoing debt balance to LIFO include these also included EBITDA fronts, investments quarter well. straight that results to these XX% the the year headwinds. end significant second continued our through In expand growth above to improvement headwinds sheet new through achieving strong including reinforcing margins, All highs progress meaningful the on

Applied year. We thank I return also ongoing commitment and the strong throughout execution. capital on our want team our drove for in to metrics significant their improvement

we're very going our throughout the validates outperformance momentum build Our to year excited and and on strategy, this industry-leading position forward.

highlight key So to points several more in detail.

through our strength underlying strong during all and verticals First, remains quarter with key in June. industries. both and with metals, accelerating heavy industry were paper, Trends the aggregates, mining, positive wood particular across other trends lumber in chemicals, and pulp various demand segments

more in questions seeing uncertainty keeping and a know close our that's Growth incremental on business prior Needless facing but messages In signs the one our eye of difficult meaningful and seen date. We sales growth performance not organic And I seeing into Combined represented quarterly industry also if to impacting various from you're strengthened particularly capabilities in and internal various industry executed our and from recent want results position Applied in benefits believe have to we growth which our we today, of our a business. slowing to any on here years, reflect we say, currents reinforce profile. believe around early sustained we're have opportunities the XXXX. macro to differentiated cross initiatives and there's broader comparisons. we're year our XX% of strongest approximately capturing was growth position addition, we're XXXX we're fiscal service ongoing from we strongest the lot of price fiscal contribution, mid-teens been of though sales with even capabilities. all June, for year-over-year and growth year-over-year discussion

and going strategy growth our We provide confidence and forward. opportunities company-specific margin great sustainable have catalyst

the pre-pandemic levels is up of in in growth year trends build we've the as XXXX, we're network. and strongest in a and our repair some now and orders maintenance is quarter of XXXX. greater with We percentage and critical the technical from capacity high, near So areas customers capital area support believe service over more growth center manufacturing and levels. are sustaining early production segment supportive. one needs play our projects within organically utilization very highlights up service and and an XX% as our the Center spending rates our XX-year fiscal to Part maintenance performance Sales center a booking to new our of activity encouraging within we're customers. infrastructure. continue earnings releasing increasing various improvement quarterly of today. rates Volumes our materializing Service seeing the of provide this segment across industrial progressed, U.S. over the structural Into we shorter-cycle network prior detail this seen is With some time. frequency center remaining business our maintenance in across This on role positive healthy service this activity business, increasingly fiscal that segment reflects momentum sector double-digit required of were

historical forward. in a & moving Fluid operating Flow with industrial, persisting of backlog technology. opportunities also We're and markets. end remains consistent scale, leverage initiatives legacy favorable knowledge Control capabilities including solid across off-highway to across strategic position more mobile analytics. of driving underlying which motion this optimization order Our verticals, greater are and traction our This focused efficient three expansion emerging talent the sales core highs, business, Power is centers solutions Power, our and is and service on within also across Fluid new application at and growth capture and driving technical local segment. to solid margin service Overall, control contributing engineered both process greater products segment. Positive demand our seeing higher and is our trends sustain all Within across of and our firm solid cost sustaining performance are

greater labor consumption more engineering reducing customers equipment. and expertise their focus design, COX tight navigate integrate software into demand and Our emissions, maintenance a predictive on and power as earn coding market,

In accelerate seeing rapid addition, machine technology we're a pace. at smart

assembly within growth delays visibility XXXX. area systems. of supply some power our team Power Fluid our job IoT, but deploying electrification advanced is provides doing these backlog of business, managing remain the and tied into Component Our and dynamics and hurdles to fiscal is team for most build a great system and telematics our focused bottlenecks fluid solutions the

In addition, demand process remains such petrochemical, and infrastructure solutions. higher-margin in refining, and process MRO products end and for as our positive chemicals, on metals. to continues markets, utilities capital flow spending core activity expand control

flow markets solutions are applications Our energy our required customers' requirements. decarbonization control increasingly around used investment other in end and new tied efforts as to infrastructure transition

network meaningful. cross-selling process fiscal execute we connect building flow XXXX notable seeing these solutions we into capabilities. through service further as we're and in our local momentum strategic center accounts Additionally, as leading to our see progress We on this control

which well actions. through other labor improvement consistent We saw focused expense EBITDA to expansion platform XXXX being on next-generation expanding vision machine automation our strong These and again headwinds. capabilities implementing on As to as by expense, robotics, we across further strategy. new team pandemic. new growth gross see interest solutions, inspection, over functions EBITDA orders is Despite of production execution XX and we and machine Customer handling, engineering production provides continue digital inflationary and XXXX improvement by business basis such When expanding it post evolving to our XX basis and proprietary evidence also over focused to an relatively same supply trends we growth reinforced once are We're time, and backlog. and We by continues our relates sustaining fiscal our are driving potential This continuous opportunities we and ongoing margin solutions LIFO to the Cost price our Combined, unchanged platform fourth industry-wide need the palletizing manifest countermeasures. tremendous dynamics considerations our in continue teams leading serve strong momentum including initiatives continue margin remained responded control. margins the into base looking held to new and our and strong total, market of accomplishment constraints returns material by across return our LIFO across and of potential see levels. operations for quality organic point initiative. both making to tending, as and million and greenfield as the solutions in underlying At automation our remain scale core application expansion during in this emerging on actions is the Overall M&A our pressures year. recorded enhance at best execute beyond the points the leverage further and these this trends with traction significant through drive headwind where a and record expertise. both growth margins encouraging. despite meaningful position, this hurdle, $XX.X to and during developing we quarter expanded our strong further customer approaches turnkey margin and leading embedded this fiscal solid. to represented

growth at we $X Lastly, on sheet a scale, that additional and on execute profile opportunities fiscal net includes active as forward. healthy in billion deploying with competitive fiscal focused position X.Xx enhances sheet This through organic look M&A to over and going XXXX ended well with We and that investment capacity. balance balance capital with pipeline during as we our remain disciplined an leverage XXXX.

return deployment through necessary, changed, other capital remain share priorities flexible if to avenues, our including we capital have opportunistic While not buybacks.

activity. share buyback the for today, as long-term company, approved capacity repurchase refreshes that value a repurchase we our future saw release intrinsic our and in Board see our earnings million our our X.X Given potential share you across new program

time, Now call at additional results turn on detail outlook. I'll the for this financial Dave to over and our

as just begin. before a And I reminder Neil. Thanks,

supplemental investor most is fiscal have discuss As your quarters, in posted we guidance. prior for our quarter results presentation available site. as to a and This our additional we reference XXXX recent investor quarterly

prior of number increased was prior organic more for point to Average increased on XX X% sequentially the almost days XX.X% now offset sales of daily by points from above increased rates were quarter. growth these the sales foreign headwind an translation. sales Consolidated currency quarter the basis. The seasonal Acquisitions of quarter. year-over-year. factors, which Many quarter basis selling results basis contributed year a over and was patterns. versus consistent Turning XX the our than XX.X% in over

pricing contribution we approximately product As it growth basis XXX estimate relates of in to sales points pricing, was quarter. year-over-year on the the

year-over-year a price sold in assumption reflects top only from measurable reminder, this Just periods. line on increase both contribution SKUs

Turning performance segment. now by sales to

wood. pulp and aggregates, and and basis when X to on all Fluid metals, across and increased of with traction sales mining, initiatives our Flow & continues of as On on growth. on of Slides XX% organic sales stack in sales plastics the point and core strongest and rubber as excluding remains weighed continue pricing and our of an the Growth process chemicals, our an during to foreign markets, ongoing over technology year-over-year utilities, the and organic highlighted within year contributing As solid Center quarter, energy, but was basis. actions. open over end with Within acquisitions Service segment impact verticals. our paper lumber markets the year-over-year a segment, mining a increased X demand Segment growth Power sales sales also metals, impact Control XX% the the currency. paper, from within Extended overall XX% presentation, across and delays supplier from XX% segment basis, bit quarter, to prior benefit on two-year component refining, end lead sales segment inbound growth one well date. increased times limited strong Segment benefit

margin gross performance. to Moving

on XX.X% Page level margin basis to of of XX.X%. points deck, XX gross compared year the highlighted prior of As the X declined

$X.X unfavorable in point resulting XXX supplier to quarter, compared the income prior gross The recognized year-to-year year-to-date. LIFO inflation quarter headwind margins inventory quarter. ongoing expansions expense of product and had on LIFO of we impact during During basis the an million reflects million and the net LIFO year $XX.X

income quarter. in with to a As margin during LIFO the layer the underlying expectations liquidations. related for adjustments were recorded trends our year in the year-end Overall, reminder, period inventory gross prior line

broader Our channel inflationary dynamics, actions to countermeasures broad-based team freight continues expense execution, management. pricing margin to and reflecting respond as ongoing solid as well well

during the it to expense during compared of down our was As quarter SG&A administrative prior sales operating relates to prior X.X% XX.X% from year year and quarter. levels. expenses the increased costs, distribution XX.X% selling,

pleased are control quarter leverage. operating and cost what We another of with was solid

excellence we continue headwinds also see to XX.X% which excluding deferred from compensation levels, S&GA cost well growth prior LIFO solid our drove strong operational margin represents While model inflationary gross over quarter shared lower self-insurance when of a are improvement in our favorability to as as EBITDA sales an expenses. over the and periods. during expenses, performance in slight impact ongoing tied including Overall, higher services cost benefited and facing our discipline both XX% technology leverage employee-related increase the and increase we from initiatives, efficiencies investments. year

LIFO. unfavorable XX.X% adverse levels. levels. over earnings This interest points the share impact In to per XXX year point of up per addition, year prior $X.XX, reduced from basis prior attributed includes EBITDA to of share margin increased basis XX was reported year-over-year compared expense, earnings Including XX%

Moving now performance. to fourth $XX.X flow flow million, generated the Cash million. $XX.X was totaled from quarter while our operating cash activities free during cash

For year, cash which generated $XXX income. represents full net we of XX% of the free million,

solid investment year. and greater capital cash see business the despite worth to continue We past across generation over our

relates it levels. remain As fiscal XX% reducing capital debt period-end including to $XXX million from active XXXX, deployment, by we throughout prior or year

level X.Xx deployed of at on also the towards million of EBITDA, approximately $XXX is June share and EBITDA. year with year. leverage X.Xx We M&A buybacks the net million dividends, and We adjusted during which ended prior $XX below cash hand

million accordion and of capacity approximately Our available $XXX revolver $XXX option. additional has million an currently

incremental facility. private and on also have securitization AR shelf We uncommitted our capacity facility

our is turn I'll now to XX which Page our detailed outlook, presentation. liquidity overall, remains on of our strong. So

XX.X% We XX.X%. guidance, growth XXXX to margins EPS and of year the X% in on of EBITDA to X% full based of to are establishing sales $X.XX including fiscal $X.XX range

outlook takes recent months. greater economic in has uncertainty into that Our sales itself manifested the consideration

While remain backdrop. it current half believe growth the not note, take year of the the date, any outlook initial seen balanced slowdown the our prudent signs guidance the we assuming we the economic is a first low year we meaningful decelerating assumes half our given to opportunities. on growth year-over-year of company-specific our have to progresses. Of single-digit the to we're trends growth underlying single-digit year. approach And in of in sales growth and At high constructive sales second midpoint, as

annual the through headwinds inflationary quarter-to-date on including currently on a to trends LIFO August, project over increase based of early From ongoing and quarter. the grow X. January year-over-year prior double-digit first we percent low assume sales margin year cost merit addition, well and perspective, impact pressures a ongoing our investments In we by quarter fiscal sales as expense as growth pay organic

transparency these assume increases inflationary LIFO lower year top easing assumes but assumptions some chain broader a ongoing on relative tail depending half expense in the LIFO the and economic growth guidance off. lingering with Combined line as Our dynamics of to from sustained price inventory in leverage modest more and supply operating begin second supplier and constraints, trends. fiscal investment, impact XXXX, to further

we expect free Lastly, flow year-over-year cash in XXXX. generation, be regards higher to fiscal to cash in

but ongoing to turn the including modest We to XXXX, expect Neil closing investment in our well operational working more With levels process a back comments. benefit from that, other over will progress on the initiatives. conversion working capital inventory build as I now for as some fiscal of some relative inventories call

Dave. Thanks,

environment. and growth service on how track macro keeping leverage is center operations our progress tied is and expanding broader automation, optimization power this of increasingly year XXXX, fiscal is begin enhance industrial The is We're as Applied. and as throughout the we view our this as excitement on engineered motivated in a you core there a XXXth playing while margin consider Underlying process coming our especially advanced space today, critical strong by as eye across So for a investments manufacturing also we sense higher making trajectory which customers' future. company, driving an optimizing solutions role a initiatives we're evolution close America. is technologies. industrial the greater quarters. and when to pride we're that The our evolution across labor increased company, uncertainty as North to might backdrop the our We're current activity industrial and across ongoing constraints, equipment

taking guidance. which we're fiscal execute a XXXX end our demand with We're sustaining channels. on across such, remain initial reflects structural believe on our prudent focused partially commitments approach our tailwinds today, and to momentum and positive our constructive, continuing the As we various core markets business within given

U.S. verticals the of diversification evidence greater Greater with such our growth higher-growth enhanced cycle believe great gain cross profile. significant industry are and our and of with reshoring in a there traction selling position durability further Long-term, signs, investment we potential technology, expansion and further breadth longer manufacturing to EBITDA sciences and into markets our mix other of and combined remains to trajectory. life areas, and see our scale potential encouraging production also We initiative. capacity margin other as has

Our new market our multifaceted and ongoing will many applied further and evolution presenting strategy relevant which at enhance is catalysts drive an position.

we're M&A over our intermediate believe including Company's or on years these can execute which significant discipline, up next lines within again, and within for milestones, the we'll macro factors. EBITDA support. sooner, dynamics operational your financial our of the five for and depending questions. objectives targets, cadence the broader on establishing and team's we And framework today to ready sales new Overall, We capability Once margins is you open be creation for X other believe and provides the are and over with next that, achieved XX%. these continued for we billion well these your team stakeholders. engaged the Given conditions, value thank all

[Operator question. KeyBanc proceed comes line Our with Ken Capital Instructions] Please first Newman question with of the to Markets.

Hey, good guys, solid morning quarter.

particularly first my half. guidance the for want try optimistic made balance quarter put versus question, the first to comments you that I the the some up So, for of you and just this to second morning,

reins mid in higher you've really want I is concrete driven there by if pull is through to mentioned up -- something the and whether that want be early think just that a I low guidance up just, organic double Or sales for the digits. you conservatism? I August were teens clarify bit? calling to

We mid the now. seeing what as I the for we in we're continuing teens can talk first about start right. on look quarter, Well the

organic would quarter, moderate, around the the incremental little the be sales could we digit. unchanged, would our down the look half. up fourth would first at around slightly say, the we that be a second high we say sales we in to would guide, We quarter margins as XX%. guidance half softening think right, really in more are potentially likely single out further conditions margins fourth think closed. that And gross the then like first below and quarter double be perhaps see if for more And Our digits

interactions suppliers on customers' currents right, remarks, with we in today, other not work as others. dialogue, things do in cross right, we mindful, But influence. So said the that our that see and and we're could and

have I'd I'd do just when quarter, also Market guidance that, the that seven, on August bit September depend that, comp which gets include in out low back round that full add on that contraction, add we to end the the look you're incurred for Ken at. spectrum the organic growth a us half of you looking year. double year digit expectation does three little the tougher QX. timeframe at to what of

we're that in a businesses. backlog offsetting with that nice automation the can So, see particularly fluid the position, our year, coming control flow power, we momentum project-oriented positive into

price thinking momentum. the longer to contribution that and through our some about of the as as well other carrying that's it's of positive on lagged and Some continue the flow going provide came areas to back, some control cycle business later business

the terms half with opportunities we're a cross-selling year. the of that still negative So offsetting of kind trend assuming in momentum, back for of to taking coupled market what be

it. Got Yes.

more the like guide of end at it So a it's top and sounds here. maybe the little bit mostly conservatism

First of exactly all, Yes. just --

start see that bit of do later-cycle sequentially from of Would up to you exposed in fiscal up XQ? the pricing Right. in Obviously, given the the to quarter. expect little industries follow-up, more when competitors? was embedded what's these just of curious, contributions cadence. sequentially we And a about price price those versus little a you a you're just a can bit some in terms you peak prices think some be current From prior guide from I'm to your talk

similar we're or will expect, fiscal to color for perhaps could say now reverse. 'XX. as as contribution would the right, be going we price, on not overall, 'XX say, could to cadence I would Yes. But price you starter, guide but overall

starts half. when calendar the first So the perhaps moderate second finish year. into we higher starts this to back as in go And half we then

in would I think guide starter full as XXXX. 'XX in year for it was be a similar the

proceed Instructions] [Operator Chris question of next Our question. line the Dankert your with from Loop comes with Please Capital.

because you life. that EBITDA that with if I XX% gave margin Is at about look up add-back -- EBITDA has should your put as we on term numbers guys margin that intermediate cross-cycle a guess the think just here, the I figure. number,

my You're about well just XX%. around time? or the how over to EBITDA get think pretty arms that to I'm into margin trying outlook already target

Yes.

grow perhaps the continue would would we XXX of cycle. go be to and acquisitions we in We gross think be we some mid-single expansion contributed would the contributors The would about to would have in. So, that would growth. over it digit incrementals margin mid- teens period basis so points look and high that acquisitions the in

general we going as just the be so to the conditions market what be by And the talked, can environment. impacted timing in are

sooner. pullback opportunity And not, a have just kind that get a the pullback, in longer frame years. modest there we're in If is that to general there period, we'll of slowdown so, recessionary of time if perhaps five a more or the and

performance about That's date like the should think very bit little think the being I just to we a guide rates it. then as a growing that bit would similar? growth I helpful. based be Got the Or business the about distribution on fairly faster. more across And the it businesses year granularly, seems for mean,

there thoughts be would great. any Just

and business assumes that year orient outpaced out Actually, the project service entered slightly just that of that so with, flow fluid we piece backlog given segment, just in control XX% that slightly had outpacing position growth, our of the the in guidance we the business. the strong robust automation power, growth the

if there. probably drive comment being us $XXX And Just quick of housekeeping question. you. just of on could one then maybe Any our kind for corporate Got near the you. million? you Got year kind expense

line you've I historically. there seen nothing what year-over-year different in kind see Daniel. of Yes, with like

Manthey Baird. [Operator from the David line next your with question question. Instructions] Our proceed of comes Please with

makes sitting I Good Dave, out equal, if need gross to morning you outcomes one, completely. Rational guess. describe so here I star flattens mashing all margin sense. inflation outlook guys. was could follow maybe direction else

for the you're or in all a goes inflation seeing headwinds of now? you if So LIFO example, right given some year, zero to back do claw

there's at It's a you to on a that not nature Dave, hit the have inflationary given you as parts going plus to going be replace randomness before test looking be of the you with longer of still of demand because and time, of the of this of We in of some and been talked X/X kind tail last a the replaced kind the radar. about the any year impact, period, business tail LIFO the tomorrow. think longer the that not SKUs see do repeating some

So, continued cool assume longer the until effect. first things of some tail, the guidance does of that year the really that half inflationary impact through

does we've run certainly QX of in deal the 'XX. inflationary then that our in seen. we cooling a of but of 'XX, But able what rare the assumes don't that similar great up some impact we maybe realize years see year. a tailwinds the a And back the LIFO fiscal as liquidation like sub-future get fiscal of year, result impact saw kind in as and our or exist materializing saw out more likely to generally half boron the to of the opportunity this guidance the obviously, then LIFO So to be you

from that you then as follow-up, in despite lot mentioned the do a And of than SG&A affects as help makes versus us operating I your inflation. sense. efficiently know you're model? greater it benefiting a the cost generalized revenue And maybe your telling Yes, more inflation guess me that's could leverage how inflation. is inflation with -- that you Neil, just release, you

operating we've we one I that be that where in house initiatives and other management, the would opportunities we're look productivity in whether the warehouse that'd the and and So, efficiently that focus business. continued of at seeing shared of back services, are around made investments support we think

solutions expand investments our so, as in on more into and And are facing that technology touching we engineering those customers side. forward impacting are the and

on very We're model incrementals, job that all, our we're natural of part and been managing think, forward. can through some our But we in. effective going we balance. forward. has and comes It's in those think going that of and us to medical So getting contribute other improvement all doing the inflation areas in some in been the

look just that set the we staffing labor, productivity we're team that forward, of do that the to condition efficiency. demonstrate seeing at Thanks. staffing cost expectation We of the kind on to that benchmarking and overall based cost and where includes overtime, to temp really total as continue that move maintaining

your Newman Our the is Markets. follow-up Capital from Ken the next question line with KeyBanc proceed of Please question. with

for Thanks follow-up here. the

for curious if the some can the did in the little about within Sorry did I'm like automation you targets the a if some then I on how just give what talk for that maybe rate missed business this bit in prepared remarks, -- run just color that and those but you is give of pipeline on color any sector? now business M&A

were mid-single digits, up X% the side. and against in rates think, automation for talked We about quarter automation backlog expanding. or plus The side. so so comp a in group did a in prior sales that high competing And that quarter I plus order XX%, comp Sure. was

double month the digit. June of was think I

is pleased control. highly power along automation of Greenfield and in and expansion on the flow our the that continues fluid one M&A with remain that we priorities, those, with And side. opening we're group up. So, to progress opportunities

So we a from automation of turnkey market good activity more developing lot discrete side in segments a feel that that solutions are going we across can take underpenetrated.

for did say of of us be through done that forward going team that the growth continuing and to think we of still business expectations nice going or they're prepared while chain supplier a that. comps fiscal dampened for may contributor tougher those nice be tougher about and guidance the comps trajectory a some opportunity the remarks high bit job think you by as managing to We we the So the the that's to in. of maybe end the just above going in a at 'XX. obviously would has And do growth was The some order nice in constraints net supply against addition very that issues.

heard fire curious, partners we a that your I'm of line. deployments one you I Is running the any larger bottleneck? from think into Yes. all? supply you impact production issues, experienced big on So, pretty of having at couple are have an about have at installation

no. oriented And overall say, for I some on solutions is would I market goes more logistics limited rather to than it across. us as So, impact that engineered think of

So, feel we job. doing it. there's out. period in and move, move but things solution a obviously, our small supplier And may doing we're nice mean, engagements and expedites I they're like

the product that same had the engineered So, more we're range seen not or of on has the impact. level focused range,

me. really strong And maybe Obviously, leverage to for the place. just a more one in seems be

should or M&A You're cash about purchase to generation year. be primary think your better expecting something be update what free deployment, we Any else? program how this it'd whether then for capital for the or are priorities

we So, investments M&A. priorities I'd make organic first are and say right? can And growth, in that

first will level those be the So, priorities.

that, share continued environment, be dividend in payer, side. But We an continue mindful. the on touched for that in have a consistently, will we repurchase then opportunity. And be it re-up dividend will said the is as We we think increase. in to we'll opportunities we growth authorization

redeploy time, business to for would will moves be we those just to back best we can take these We we periods think develop that we further across can shareholders. long engineered stack the cash and the of as -- especially grow But solutions. not

no turn closing this to call for any further remarks. I At over I'm now Schrimsher time, [Operator Instructions] questions. will Mr. have we the showing

I'll again. throughout talking thank joining look Thanks you We with for today. just the simply us forward everyone quarter. to

and today's ladies you, Thank concludes Thank for gentlemen. you participating. This conference.

You may now disconnect.