Applied Digital (APLD) 24 Jul 232023 Q4 Earnings call transcript

Good morning and welcome to Applied Digital's Fiscal Fourth Quarter and Full Year 2023 Conference Call. My name is Donna, and I'll be your operator today.

Before this call, Applied Digital issued its financial results for the fiscal fourth quarter and full year ended May 31, 2023, in a press release, a copy of which will be furnished in a report on Form 8-K filed with the SEC and will be available in the Investor Relations section of the company's website.

Joining us on today's call are Applied Digital's Chairman and CEO, Wes Cummins; and CFO, David Rench.

Following their remarks, we will open the call for questions.

Kovtun Group Alex brief make begin, statement. introductory we from will Gateway a Before Mr. proceed. please Kovtun,

you, Thank Applied and conference fourth to morning, Digital's quarter call. XXXX year Great. full Good fiscal operator. everyone, and welcome

remarks, formal statements uncertainties. under risks some today securities their begins and making management we like a everyone we're forward-looking to considered be and involve would may laws that remind statements of Before number

which we in are from number result, a control, cause of beyond caution which many of those statements. there and a As results you are factors, materially our events the could actual differ that to forward-looking described

Exchange For see We or obligation assumptions to the the more relating occur disclaim and circumstances update and our undertaking are please date forward-looking by the in that and forward-looking statements, law. release except earnings events forward-looking with statements Commission. detailed disclosures made, made uncertainties, after required public or any to to risks, reflect statements filings our Securities as the

descriptions and and our financial earnings We our our to you Annual filings as to including our but Securities the Risk in Factors will measures We and also risks discuss these you applicable under caption for detailed not GAAP and metrics. other Report variable Exchange reconciliation with Commission Form disclosures business, metrics well and limited and as of and consider our the disclosures uncertainties refer you carefully tables circumstances, uncertainties as read release to to encourage the XX-K. non-GAAP identified on

website and at by Applied for the You SEC free Securities Digital's filings Commission get may Exchange www.sec.gov. visiting

made available for recorded everyone Digital's Investor that section in replay of and like via to will call this I link remind is would website. Relations Applied the a being available be also

and I Wes? Wes Cummins. turn call Chairman Digital's CEO, the over will Applied to Now,

full quarter Thanks, Alex, fiscal joining everyone. conference and good Thank morning, for XXXX year fourth you our and call.

advancing our hard their mission. to in and our employees work by service thanking I for start ongoing want

turning a to our our CFO, David why will across Before for long-term I'd ability to like on share the and touch recent I Rench confident future of developments review also deliver results, growth. to remain business. we detailed some over about the call our financial our

year, services we've that applications we're remains traditional Demand digital for data Over providing HPC services and infrastructure year traditional emerging the solutions working about provide been customers toward excited ahead. from last our the from both differentiated and robust centers.

three As on key we XXXX, enter fiscal we're focused goals. strategic

performance to three facilities crypto customers. our we have online for all our of hosting reliability high fully First, and aim with

continues capacity North facility and perform facility XXX-megawatt XXX-megawatt throughout initial at energization the our in expected Jamestown as operated uptime of full Dakota in the Ellendale, to We Our with quarter. improved announced This March all in our Applied to which contracted Digital Dakota, and today out across brings are it's North fully megawatts capacity facilities terms. to all on hosting customers multi-year of energized. XXX of

interconnection to which week facilities last after began is at City week. and the our The Garden is and high-voltage extension expected is finish work this completion of agreement Energization M&A. approval site expected

million of build-out $XXX service the in aid to as This on high Having capital facilities with datacenters, cloud $XXX flow. EBITDA purchase three and to the steady us AI a online customers. to fund needed provide We our well million of will will in expect annualized facilities these an approximately with revenue our as HPC the cash generate basis. uptime of GPUs

service wave expand goal cloud second is next applications. AI support The business our the AI-powered to of to

co-location execute unprecedented dedicated of along capitalize continue datacenters. can with our seeing on customers. the HPC our launch development as We X-megawatt our on provide demand the expand we facility HPC of and this space With initially to offerings from service, next-gen this third-party we're from we service the Jamestown

two announced our for demand We landscape. player recently our position customers in AI the We continue extraordinary provider Cloud a see new to Cloud Service solidifying new key as offering. Service

During we A.I., and with customer successful signing to an our Character onboarding agreement over first of announced $XXX the million months. the XX quarter worth up

million of of pre-payment. activation end agreement the if of to ramped options which service cluster. and significant contract agreement for We option the first the customer executed includes fully for full also million made total the be $XXX the a $XXX signed compute executed. additional $XXX This anticipate would XXXX. We've million, an an already bring has the to the value by their This

secured be also second is our financed the XX,XXX have help June, year. have these worth been that will other and financing online vendor AI to GPUs specifically between To over financing bring go-forward these and over up months. $XXX contracts capabilities, in through we next and our secured which for now cloud support ordered options The XX We to have agreement million market. and of capacity prepayments, structured options, this customer April GPUs

OEMs their the Packard as leverage and for such to To Service Hewlett expertise applications. of we've Cloud ensure industry-leading with and HPC delivery, Supermicro Enterprise our service AI-powered seamless support execution collaborated

allows models; on-demand through predetermined on-demand made the entire in This to for usage. services pay of two to discount amount option Our available reserve capacity. at reserve model, Under capacity the capacity. a and are GPU customers to the capacity advance provides a stability distinct customers customers reserve contracted capacity and duration

up us. deploy for purchase robust capacity helps of embedded will which the and make hosting Cloud front to time. significant Customers a of typically of raise contract, as likely or ramp so flexibility For to GPUs. for applications. on-demand opportunity and their help in Service customers a Pipeline will agreements raise rates. usage AI have pre-payment business and can funding they our contract significant on companies in we the the in to price scale significant funding terms VC-backed portion opportunities typical raised over AI capacity, fund of private these have remains GPUs exercise higher have pay tailor they options money the that The Cloud but We that more additional customers AI of our customers Service to

is Our development our third datacenters. of next-gen HPC the priority

are as this the this they applications space and sites We growing demands accommodate industry. for for success for well-positioned HPC facilities our next-generation can are hosting in believe ideal unique

Our computing low-latency a datacenters power high lower datacenters are on traditional delivering that cost applications. offering compared to solution purpose-built combined more focused offer typically with

of Cloud have development, customers. We to facility commissioned Jamestown, megawatts megawatts X was of have an in not disclosed. capacity which standalone we This does which our include pipeline capacity represents what XXX HPC previously in at Service initially our AI begin and to megawatts we additional capacity supporting the May current XXX capacity of

in of capacity capacity The megawatts includes in in facility over online new be This megawatts North of brought XXX months. phases plan will next and we available the the build Dakota Utah. to few XXX facility

new HPC in are significant have to and ground We North Dakota months. for up customer a break currently facility our the in planning lined coming

application further and traditional We will for alternative believe favorable we're risks of these working have lenders with HPC along the states industries. continue build-out We operations. this laws regulations datacenter with the with facilities to associated scaling our minimizes target funding that To finance options.

David the my provide financials I turn and will our closing fiscal the CFO, before now XXXX for over remarks. through providing to walk you guidance David? Rench, year upcoming call to

everyone. Thanks, good and morning, Wes,

our million of fourth fourth fiscal with capacity $X.X Dakota, Ellendale, quarter for capacity at hosting the this The in of fiscal operated were megawatts facility. XXXX. to the along quarter million Dakota in North Jamestown for operations full of $XX the compared attributable energized results site quarter. quarter Revenues The the Jamestown, XXXX increase throughout the to were North

to for - working was million million fiscal Ellendale the Jamestown facilities. hosting depreciation Cost our of XXXX. directly at of compared higher the in of used to quarter revenues, $X.X in was for XXXX expense cost revenue hosting and expenses attributable for to $XX and fourth The amortization energy increase the personnel cost fiscal quarter employees, generate the in

charges of profit for gross excludes Adjusted fiscal one-time non-GAAP gross XXXX adjusted of for or compare was of or which in quarter and XX% revenue the cost fourth approximately $X.X of the the XXXX. million revenue XX% fiscal measure $X.X quarter would for embedded million the of profit fourth of to revenue depreciation electricity that

administrative XXXX $XX.X million quarter stock-based depreciation the and million fourth included fiscal and of amortization for which $X.X and million Operating compensation, of general costs, expenses. expenses of million in were $X.X $X.X

year million almost to were of general ago costs. $X.X period, all were which attributable and expenses administrative For of the operating comparable

Applied or a to million the of per $X.X $XX.X or XXXX, million, to million. fiscal of weighted $X.XX per attributable the average of loss in million. and a the loss Digital quarter loss count for quarter This Net of fourth and during of fiscal $X.X loss $XX.X a diluted the diluted share basic weighted quarter average fourth based share loss on a of during share basic approximately of compares quarter was on approximately $X.XX a XXXX of count based share

EBITDA million fourth to the Adjusted was an net than approximately Digital, adjusted average and count XXXX per of loss based approximately an for on the compares a fourth a weighted share loss Adjusted $X.X Digital XXXX fiscal a on $XX.X loss loss approximately share diluted a a measure loss a diluted less the for count $X.X the compared the million. $XX.X share quarter basic Applied for the of or to measure quarter XXXX fiscal during of XXXX. This to fourth quarter average fiscal fourth million. attributable for $X.X or quarter share of during $XXX,XXX, million quarter million non-GAAP of of per weighted penny quarter EBITDA, of of based of Applied a a of was loss fiscal of $X.XX net to adjusted basic non-GAAP and attributable

$XX the equivalents and Lastly, fiscal million ended year in balance $XX.X million we cash debt. with in on the in sheet, unrestricted cash

fourth our revenue received quarter that due deferred incorporate we the $X.X approximately to net structure with agreements pre-payments million During fiscal of the XXXX, customers in commercial our of

back flow revenue no but helps we that of year funding timing the and with certain upfront cash to contract the our customers is as to to benefit impact major datacenters. CapEx build This the over contracts, amortized to with the it with of the cash the pre-payments In us. a company are the our the first recognition

expect for year $XXX we XXXX, the range to the EBITDA million turning Now of to range million in million $XXX guidance the $XXX fiscal of million. adjusted in to revenue and $XXX full

That financial my summary. completes

to remarks. turn closing for will Now, the call over Wes, I

David. you, Thank

been Cloud capitalize approaching high-performance We've ended AI hosting seeing AI power expanding every fiscal momentum. significant simultaneously our further add We our $XXX for customers quarter To expect crypto detail energized and revenue for with to fiscal quarter Service million in Ellendale computing revenue. the the we're our fourth with of to on launched the provide surging demand applications. services. advancing our year our from around ramp successfully offerings We facility some we significantly existing our guidance, to while operations,

increasingly it's tailwinds environment, for year we look the both on services. the remain we're transformation to and crypto dynamic ahead and digital and macro that strong to non-crypto the well-positioned for amidst clear secular As customers demand even complex capitalize our strong of

We're to questions. Operator? now take happy

coming Instructions] Today's George first of go is [Operator from Craig-Hallum. question Sutton ahead. Please

and and results you, great the congratulations Thank on outlook. great

robust walk how being lay So more a I'm GPUs curious by mean the if years? and you you've next you over relative walk pipeline could to just of through to Can couple XX,XXX provide you of NVIDIA. sort out that discussed the those the will what relative just detail through little

Yes. Hi, George.

colo own we we increased well. on So and deploy expectation recently. facilities We've the and actually think from through order order, to April. what But schedule of as third-party already those have said, the GPUs, our those have delivery order kind so we - that's and that on XX,XXX is deploy as that, is the secured those we facility both we've NVIDIA

a So doubled from then their on locked and standpoint, have their that has customer we we Character as contract. mentioned option in,

up So optimistic second still some we metrics, that more then to the seeing, the with XX,XXX customer, include shared that two which think starts just I'm of the later I combined, that year, other are couple they're of of can think we we working customer have, that of those - our customer customer those will one will take contracts of ramp in didn't demand this over really if majority potentially the than from close the the and back pipeline, June about we on kind then either that, weeks. I think next but those our that

kind what about we're of As do deals a have reserve relative understand, the options? better your competitive follow-up players so just training, capacity we model these language large talking on when options new power and other landscape, low-cost to

cloud mean, you options? So, of type the other

So for four, to five, cetera, are run customers seven, three, et large these language looking who six, models.

Yes.

ultra-low require are what don't options But latency, there? other

of kind and us this, a the that that So competitive it's us. doing. - a the new that we're there's That's these, NVIDIA what invested process of are some are is of doing for so primary we other doing in class it's companies It's every time. - of competition kind CSPs, for

guys. Thanks,

next Pipes go is you. Riley Please Thank ahead. of question The coming Lucas B. from Securities.

much, operator. Wes, costs, you that I to remarks, loan value, solutions amortization, could the very if financing as Thank you I any your Good Thank everyone. of prepared to other schedules, typical wanted specifically color. for follow-up much very AI. morning, mentioned the on such some borrowing you wondered share terms cetera. in et you for

Sure.

So range. the - wide it's

used from financing get - from have you In we from kind use financing. and OEMs XX-months the terms those. digits and So typical term there - are have with another from so that does high one So have Dell a we those HPE, reasonable and then of single is vendor we've of terms, rates, on the typical vendor financing, that company that right? it's there's is will vendor the Supermicro, already same style terms actually fairly

other that, the there's options, this the Then of recoup anywhere previously price the from we the operating. months we've GPU be call the in it, XX% And think first XX on XX%. LPVs I mentioned Lucas, GPUs, can to, purchase of on

the of number kind that, up works So well. financing with lining that fairly

financing. that terms. XX% market, other of to It's five-year much on low type four-year say payback kind low-teens to less anywhere options schedule the would LTVs, specifically those, is and seeing this are for We're I seeing maybe XX% double-digit aggressive, more those from specialized

yet, a to haven't quite an said, that some, but Then, fairly rates. We we option like for But were few us. different it's out financing seeing options. there attractive used I

really I That's appreciate that detail. helpful. very

that of I if touch thank fiscal I and question, embedded appreciate guidance. breakdown could wanted and AI Very For calendar HPC BTC share in you. Thank wondered the year the maybe you hosting be helpful, year guidance. to would I respectively the second on my sorry, that you. - detail.

future that Yes. we to I we have the Lucas. don't that, that up. think ramps as actually, But, plan I don't - I in share will

All and of right. again luck. I appreciate Thanks best continued it.

Great. Thanks.

Co. next Todaro Needham is Thank from of John you. go coming question ahead. Please The &

already capacity congrats you and the for the contracts Character that guide fulfill Great. do question then How for taking need on my going Thanks $XXX you're and initial million the to A.I. here. envision many to AI then and those using, provider? megawatts with how secured are you're on much second with one other the that is And that of that third-party you colo it is secured, for? contract

Yes.

believe, the XX,XXX megawatts John, those. So, the just what facilities that I so IT takes - for third-party our - capacity. between secured, have that the I for the first space have in reference, all that I'll And we we the so, about say GPUs script, for of colo mentioned X,XXX so own GPUs X.X was the and just of

the you X,XXX will X,XXX full need. But for colo of what into X.X IT you which it - know, multiply and colo, of take on what amount capacity, megawatts type for is for depending PUE the you or So, in can that GPUs. the power

And about the would it Got the how as a change colo using your when provider over profile then, own site as versus we you're it. such margin think the X-megawatts Jamestown? at third-party time,

Yes. Sure.

expect we breaks a cloud and that the businesses, approximately we XX%, use third-party slide the margin, or that an down in you at for margin So, an we your that margin conference the of colo. and know, EBIT three is have actually piece op

think our outlined, so we cloud what the think it own margins, HPC about you margin. you when facility, stacking AI plus our is about should And in so,

Thanks, appreciate I helpful. it. That's really Okay. guys.

Yes.

of next coming Please Northland is ahead. go from Mike Securities. Grondahl you. Thank question The

guys. Hi,

and First original the explain you're terms? starting second working not second guys Does customer you that $XXX towards nearer of three mentioned $XXX and more? a million and is million contract or for first question, a you term just, point signed $XXX option that that the they to an the Could four that million. two-year little to year does really a point sort

extending Yes, to pointing the term, additional it's GPUs. no, not it's

GPUs. the So, of of the doubling number

were earlier little to a then, guys asked And million. you guidance, to bit $XXX bifurcate it. the $XXX million the Got

a models, of roughly, just that we little to hosting you hosting back $XXX bit? it sort you about we or BTC think think been is still sort of before - range in about kind about scaled of that is business. towards million were level Are rough think the I BTC in for a updated we you - the we're ramping can in do 'XX, that of if

No, just fact yet. the on back simple isn't scaled it's that Texas from

be Texas running complete miss is time. it some be Texas so construction for ramp the talked and there'll there faster going but - of ramp coming generally about And we're been will some then online it months to we've because two that there, time

[technical So at $XXX when annualized operational they're difficulty] fully million.

we've color so facility. July then George, we'll And get already but compute obviously if think first think maybe few about to million happy this, this ramp the million of some give we Character the and to month all we online of And timeframe. of I'm couple up piece, first month and quarter, I XX,XXX that a be deploy the to didn't August, April AI and thinking you July missed you then you if and of see give the AIPs, came a you you ramp June more of have make through side, there. the know, the deployments revenue then them the we for because about the revenue as so you'll should with as for our that to in get And will that

the about you're if a gives a you year pretty that a where first in of AI being that quarter if million think you be. is, good idea XXX cloud a $XX datacenter portion where exiting so portion million you at million quarter kind of it the the - and few $XXX And think then would

- then and of - help And Packard, understand partnerships you helpful. That's the one we gain of that the that. with do basically the have? it SMCI Hewlett most sort partnerships? us just Yes. OEM are sort Clear. those Is from or they two What your how what things pipeline

Yes.

things, manufacturers So getting fairly of and then delivery long as know, now, they business of been really pre-announced prioritizing, difficult them setup get ramping bring, recently thing. this servers of Supermicro we style But of getting does But have delivery. one so kind saw of is tune getting the same expertise, mean, HP you these the of operational, everything all for they expertise these, couple of compute a largest have their shipping, right as solutions, so get obviously, a time has a they I and come shippers well. full help have tax lot they racking the far is

customers So our there's a they pipeline and from a to there come really pipeline. lot of our a of - but is that them to they the us that's the expertise found - that can bring way lot that, we

we're customers that biggest is us. it places finding bringing the to So OEMs

that We place find invested another venture several the customers, capitalists companies. that they introduced are they've have these in then and we the - - these of one other ones have that

that. our timeframe quickly, that their in mean, we did short and fast of - like, wasn't into happy after They I think with have I us time companies fairly introduced a other really all, frame onboarding perfectly and us the everyone's - portfolio of I first but smooth, customer kind

into other we've portfolio their been And introduced companies. so

of that's of a But two lot to pipeline. the table, those how mostly OEMs kind we things get bring So expertise. that

Hey, guys. Great. thanks,

Yes.

from question Wainwright. Kevin ahead. next go The Dede Instructions] coming is of Please [Operator H.C.

this the themselves. David. the yes, binding, back exclusive the I Wes. I'm Character on bit could my was any for A.I. if on I like, - is onion on termination a there sort side? missed instance with penalty peel - but little taking contracts wondering, Thanks early for wondering, either an I as I termination one, was morning, you boat of Good Hi, for question. apologize

standard contract. a It's

on first the so non-cancelable through standard executed first walked full $XXX standard and any compute of the - other not and of we've has and for our the doing they're - from for that's doesn't else customer options of we perform either So a option doesn't it's anyone exclusive kind periods but these if getting terms It have us these that, it's business the million. customers the - kind contract customers structured it's us. - contract elsewhere, obviously, the going than contract, power preclude It's with for contract we from and doesn't, how stop but except basic to the one structure. fail it

Wes, right but capacity providing Well, it I this, I in too read way a reserve apologize and not implies Is capacity as of sort implies, second-tier - that supplier. much that you're

No.

the Guards has it the at don't in the models think this go right? Reserve don't two just customer think for look exclusively from reserves for that there's market, you means themselves, and or as it of the vernacular the if capacity So Air is of reserves, not that. reserved market. the like Coast Guard It's - capacity that National

a take-or-pay They've capacity themselves, it think for reserved so, exclusively as the contract. of and

So or for whether pay as And just using the model space demand, they usage. over for people have you so other it they're this on then pay in to is move not. it,

And just the so they they use. thousand they several they hour, hours pay an use for if use hours,

pricing back generally, the are safer reserve the And the much that we're having of the take-or-pay purchases an the with capacity all contract. contract. is for market, but But a for a because especially call contracts signing on-demand guaranteed That's doing a reserve you're premium. in - of XX% the the life of the it, premium obviously, length when pay of have not number, operator at our for basically you is exactly what market utilized. market, on-demand borrowers in the risk the us equipment contracts on - The your that it's to side capacity as first the not the because

I cycle first can us three in leads useful up one, of and should maybe now, on the leave thinking we book to the it's doesn't on still but four then the believe, And rates. have operating years attractive contract if think you have HXXXs life years So then the have the we AXXX, I significantly, introduced out. you - two pretty And for the NVIDIA AXXXs XXXX. innovation on those so

life those. that's the of So cycle kind of

Appreciate power in how for I rough much guess, Well, terms? color. what and penciling of colo And what an bit thanks spreads the are you're Wes. you're maybe idea dive exactly then charging a you you, customers guess, sort of power. in your Can on little on the there, paying deeper I sort

So which segment are you talking about, Kevin, are side? you talking about our HPC data center

right? Yes. of I X-megawatts Because that GPUs, you what X,XXX I sort for got understand said, X.X I booked. megawatts that. at fully You your is guess, assuming said Jamestown

secured So play seeing I that going that - customer initial a to more little and how demand, out. - have I you're you're bit like meet and to of just know colo.

Yes.

of think So portion of colo the business. our

look basically price. will facility, exactly someone other just like that looks all-in like which month, from where the that are. fixed look an Jamestown you like an rate, was colo the certain in or on Realty -- it so are way, power generally marketed or development, or switch the something facilities depending it So of nature, $XXX you per a in a where would Equinix was one, Digital there's see a a contracts And will the Hosting more on this Bitcoin HPC

then and at $XXX kilowatt between $XXX that's you to customer then do use. month per just per hour, power that cost. pass-through the And monthly somewhere the you rate - So and fixed so

we data building little It's billing model, standard model. different different a than on a the center did it's bit but bitcoin facilities. what So

Okay.

of question now as for the queue, Can balance and hop in give Wes. sorry, end back look to the versus what sheet Last Okay. a might you me, view like I'll the May? us

on the sheet balance the now? David, have do you update

you the repeat Can question?

Yes.

Sorry, wondering David. sort could like of May? just of versus as intimate changes end I of balance sheet what look guard. July of was of might the the end off caught I the you if you

Yes.

cash period, received from balances what build cash continue balances. you're went that's prepayment to So and Character during the the - up that if we

little financing a was I the about more guess I curious side.

taken. loan So event we most a have off that paid also we will recent sub we've the that

So also loan our will decreased. help balances

Perfect. Thanks.

to Sorry David. chop

in will the Kevin. be That K,

Perfect. Perfect.

that. appreciate I Okay.

taking for Appreciate [indiscernible]. you pushing Sorry the questions.

Kevin. Thanks

Thank Pipes from B. question. you. Lucas Riley Please of proceed with your is next coming question follow-up The Securities.

Thank sequence about follow-up. you for cadence David, And cash or my and taking the Wes flow. much very it's of

of the very place paid So it a how combination when much. place think financing? coming through staggered maybe and an color order, do there appreciate a moment prepayments cash would Is kind that Or out? you order, of plan? it's you essentially the for in, your that. is cash on Thank I just we you about going other payment

- say Yes. and Lucas, I so that. we're in would getting getting we're position a with better better

terms. So because deployed paid we relatively prepayment was upon the unknown, day we future then we're the first get one, it from in XX we the and after order, that vendor, get not certain

to the get payment that to instead So prepayment, get make the sense. makes payment deploy vendor prepayment, the and the of we the should deploy, able make if be

And that is come That does within helpful. the in financing that XX-day when period.

take typically delivery. as financing in comes we The

sequence? delivery And it. would that Got be when in

be wouldn't set it Again, up.

that So financing, at facility and to weeks for then prepayment. will get the - either on and take or our you payment us on colo kicks if financing for in another set or it facility, them one you the get typically two then these delivery turned up take and

well, the pay So in we happens and prepayment financing the - pay the future, your we'll the typically before vendor. before

fully for that versus very follow-up where is break is to out to what helpful. between sequence That's of paid there a And order just that the XX,XXX, on as there way outlined. that maybe still the down playing for Okay. just you

on and August delivery number of we significant in X,XXX that X,XXX that delivery and we X,XXX, is taking take late another then just we've the keep the all So way the way through April. turned we'll of neighborhood have in to

it. Got

the made but end end David, the you look assets if - see don't had we financials, was I up made payment. any of of on balance if - think our I believe fiscal quarter show any to of reflected of as we year. had wrong, So you'll I'm won't me in at the the of like see have you the the - sheet you correct the

correct. That's

Wes and appreciate David, really --

event, yes. June

see we'd quarter quarter. guess I first So the that new for fiscal in August

quarter. for Yes, the August

All much, you very Thank gentlemen. right.

showing comments. We're Instructions] to to no for floor queue in at Mr. [Operator Cummins I'd questions over turn this the back time. closing like

joining to call. been extremely October. our happen, you And all in again, hard working Thanks, speak everyone, it employees, for with has for to we'll the thanks make everyone Thanks. and us of

Ladies concludes your for participation. This and event. gentlemen, thank you today's

at day. lines of this disconnect or webcast time, enjoy rest off the log your your You may and the