Mercer International (MERC) 5 May 232023 Q1 Earnings call transcript

Good morning and welcome to Mercer International’s First Quarter 2023 Earnings Conference Call.

On the call today is Juan Carlos Bueno, President and Chief Executive Officer of Mercer International with David Ure, Senior Vice President, Finance, Chief Financial Officer and Secretary.

I will now hand the call over to David Ure. Please go ahead.

Good morning everyone. today. us joining for Thanks markets, I will highlights call financial operating on on Juan as as our strategic by the first touching initiatives. the color of further the to the capital quarter, plan Carlos well and provide begin our before to returning who company's pleased when next to Short, I us know you step-out today with also of will June. CFO We're Richard in have most become the

material you of there that have we’ve call Investor today’s the telephone, presentation website. those joined is by section a for that our to attached Also, of

to call remind provisions And Harbor turning call, according this before we our to your that risks Exchange Securities conference fully Act Safe the to the Commission. in release of more are But results, the I’d the like to morning’s these which statements. to you Private like in company’s to will related our described press and the Securities forward-looking make and Reform in Litigation attention I’d XXXX, with statements, filings of

quarter, compared increase $XX [Technical to approximately for inventory QX $XX QX incurred impairment, The QX we in million EBITDA a with from of After adjusting [Indiscernible] million. of Difficulty] EBITDA achieved This million $XX non-cash EBITDA

quarter with achieving of mills well freeze ran All production. out saw our mill the this record

We mill. capital our see continue the to the upgrades to benefits of

was segment pulp million. $X EBITDA our contributed segment's Our quarterly wood EBITDA while of million, solid $XX

found in and additional find XX-Q, website disclosures can in our can segment be Form You our SEC. which

customers levels uncertainty paper in anticipation of QX. demand in and Overall negatively In prices quarter the weak QX, NBHK to economic reduced compared demand. and in average our was markets were inventory and impacted lower price as all NBSK of inflation list relatively down current

in $X,XXX to list per quarter in ton the NBSK compared European QX. averaged current prices per $X,XXX ton

price per in net $XXX In down $XXX from ton NBSK was ton, QX. per $XX QX average China, the

quarter as the hardwood South NBHK times new digests to the several this Eucalyptus seen in NBSK and hardwood Chinese capacity past grew gap about price the between market $XXX we've decade, from As market America.

in down QX. In in China, down $XX and high the in costs the resulted a to ton, NBHK $XXX $XXX was chemical The Average hardwood per US, marginally from per in China prices compared lower $XXX the price on relatively XX% down but in NBHK was recording write-down million QX and net average non-cash inventory logistics pricing QX. QX. of

Lower quarter. negative pulp fourth impact about EBITDA million in resulted on of $XX compared to prices the

EBITDA million addition, to In the impacted US QX. negatively dollar compared by $X weaker

Our was the few to pulp production our relatively tons, the due that sales XX,XXX inventory creating to demand, build was reverse strong over we fourth from this quarter, months. expect next quarter, tons soft but volume up down XX,XXX an

the Our the XX-day had in mill. Celgar at had compared when quarter mill shut shut first quarter a a we fourth the to XX-day Stendal

$X received in final QX, completed scheduled proceeds In These operating disruption for infrastructure. The million to Woodyard are the quarter. insurance losses Stendal mill were to covering the the current related damaged in mill QX. be to almost the repairs fire principally

market, feet European in the Western in and wood benchmark Random segment, economic was QX. and US due compared uncertainty quarter, per the was SPF the continued $XXX QX Lengths' pricing $XXX For up rising in thousand board the market rates. averaged US down interest pricing in market. but in to for better steady decline The X demand European our but solid to lumber first in slightly US the to

our record benefits [Indiscernible] realize the the SPF and negatively production impacted million for lumber better we benchmarked of capital per quarter. mill. is to beginning at the XXXX. had quarterly feet, of improvements the the continue $XXX the in compared board X Western thousand from as Overall, virtually price mill when unchanged Today, $X XxXs We fourth approximately to prices the by EBITDA to US

lumber XX quarter. up the million Total million feet fourth board was in XXX from is feet which board quarter, the production

volumes due volumes of prior lumber were feet XX million to board board out approximately record XXX the quarter. timing sales were had also in feet, We of part sales up that Lumber certain from million QX. vessels the delayed

are the approach the of make lumber, to while and annually making pallets, our and product impacting expect continue target, are synergies economic Torgau quickly We to once more more mill we solid pricing headwinds $XX synergies turns biofuels, with progress million difficult our transaction and seasonality for to be annual obtain levels. negative from which normal integration pricing to it

up and gigawatt-hours the gigawatt-hours the our the which QX. the at absence in Stendal to due strong in QX, quarter, production shut XX in planned of Electricity XXX from sales quarter is totaled current maintenance

scheduled QX to reduced fell in in XXXX. June the to to effect megawatt-hour price that it energy the German at came cap, of of when is per the to price due energy implementation in not be due end about We renewed will expect energy supply expire Europe. Pricing which into $XXX concerns currently cap the

We net $XX share removing loss loss for $XX about After the of the the impact to income $X.XX $X.XX quarter inventory or net in compared reported is million per charge, million non-cash QX. a of per or net consolidated of $X.XX the per share. share

at the start-up was new log Celgar, completed wood at for the about position a inventory our cash our and EBITDA our to QX. mill Canadian in buildup of QX due opportunistically was woodroom, and built of in million We our increased $XX significant prepare inventory about compared to usage we which inventory some secure River million the QX of The using in $X through used in summer. cash Peace operating mills. lower to We to increased

also goods the to process try backdrop the our finished falling Our as in manage we modestly sales in inventory grew quarter pulp prices. of

build beginning QX. We expect working capital this to considerably in reverse

QX started Peace Capital the the which late spending was woodroom, $XX and included in to quarter. in costs million River about operating complete

the mill We beginning in for this costs benefits form from expect to see fiber in of QX. the the project lower

million expected between XXXX. Looking to in million moderated and ahead, our we have CapEx $XXX $XXX be spend

end undrawn you as liquidity our our of a share which totaled the have of our XXXX XX, has $XXX comprised $X.XXX seen million dividend position for July from of And today, the million June Xth. $XXX $XXX on per payment shareholders revolvers. for Board about quarter, press million quarterly of will made approved release cash and record At of of be on

ends financial That to results. now the Carlos. of turn overview my the call I'll Juan

Thanks Dave.

of exceeded very were the of by pricing. X%, the me in QX, operating average, targets that our our while negatively was down pricing external down. about I'm performance impactful a strong for most to product with Let start we quarter. production number as was Compared prices was Yet, down US. mills the The results On saying our about factors. by finished lumber of pulp products for pricing most affected our pleased XX%

prices considerably And on in QX. higher costs than and average mill fiber although were QX coming peaked pulp were through our down quarter, the

also results some production quarter quarter. notably, our first the recent [Indiscernible] our to our volumes However, achieve reflected and Most this record investments in allowed sales positives. mill mill

am excited business. progress making in our the I with we're developing also mass timber

book projects. order continue filling to timber a numerous mass beat Our we is and rapidly

up to increase we ramps CLT in expect noticeable production realize revenue. a As QX, in

process horse outcome, I we will in some you today, of invest of mass timber may an are so in outcome bidder that continue the as may auction, the a This very be business. of say regardless end Structurlam stocking asset. but will addition, for the up we is the profitable to bankrupt growth In aware, unclear this

do are how I made open they am asset employees synergies, Torgau have the value. I safety. to the the I being changing this of with sawmill our satisfied significant we limiting and our Torgau that progress believe Despite current around things, in fullness dynamics for add integrating that on our market will time, shareholder applaud especially

steady fell $XX off through average on in but QX, most were of about quarter. per the prices pulp ton late Softwood

of ton. prices During the fell this have the roughly to per China weaken. $XXX in same quarter, continued period, prices to China hardwood Subsequent pulp end in

were put prices of speculating a buyers on discounts orders pulp hardwood market. additional markets reach by of off to backdrop new producers accepting as mid-March, of holding including are lower Russian Pulp with capacities pressure and supply while higher factors the Chinese new a number under starting deep

forward, under Looking continue pricing pressure in expect be we to pulp QX.

On prices prices the the buyers impact refill producers we feel head low of advantage to and and traders felt reduced supply take into the to maintenance of as begin QX in late inventories will Chinese their firm as that softwood season. side, is

tells continue times us producers during -- maintenance History will that will extending shuts prices. consider of pulp their weaker

the hardwood see side, the new supply market refill reentering also this market headwind an supply. but absorbs inventories, create the will extended the On new to buyers we

low we to At integrated which curtail, production help prices. hardwood will prices, Asian these support expect

the the ton expect we to and continue level. current gap between beyond to softwood per However, prices grow $XXX hardwood

days. of extending shut be by quarter will us a XX maintenance of will This work from these River to overtime days the we reduce the allowing pressures, market contractors. Mill reduce As Peace reduce to XX done annual the to hours cost and this us result allow by our

addition the shutdown for In of includes about three-day our tons. annual down in a to and in month annual maintenance XXXX now schedule having May QX In XX,XXX our our reduce total, we being QX, XX production will be River to expect QX. Peace days mill the downtime short down Stendal maintenance Cariboo by entire

QX we another down be have by will and XX-day about shut XX,XXX QX, maintenance reducing short tons in tons. days production in production or roughly will of total. XX,XXX have in for Rosenthal Celgar, Stendal major a XX three-day

Our of compared market continues rates market QX first to and created markets result quarter the the The uncertainty sentiment economic with up by down indicators. negative European in lumber be the rising uncertain the US mortgage results reflected US and to slightly. mixed market

and growing range homebuilders, positive US announcements due from been some remained Lumber how bound quarter. have around low market prices starts to prices the general into uncertainty. economic and Despite QX second lumber through optimism The

positive sawmill market on to low demographics the homeowner and housing believe low curtailments, continue constructive inventories, channel supply/demand number fundamentals will in this relatively mid-term. of put of We that the pressure large stock, lumber

We sales current will volumes were roughly the In continue markets. to of US mix split match lumber conditions. products our lumber customers to the European and and QX, between evenly market our

decreases see logistic improvements channels and modest to our in freight continue in We costs. our

energy the were come QX, which to driven pulpwood decreased down the costs but and of was in sector users up for we forms costs high In were high fiber from first second cost demand as sector The mainly energy energy pulpwood utilized cost These prices we the expect inventory quarter. significantly in the noticeably have demand will QX, peak. cheaper our by pushed quarter. saw looking in fiber

quarter. and Western our in In Mills the fiber down of log increased levels cost Canada, the woodroom second River harvesting we our new impact Peace to expect bring

XXXX. in lower our pricing decision between in slightly $XXX Looking put product the million made ahead to reduce have conditions, to and to we CapEx in million of light uncertain market planned $XXX

all those have only value We high projects were retained delaying discretionary. that

CapEx Lignin. able step Development pilot begin includes completion Celgar expense a well the the the towards as woodroom plant, to the commercialization which being of of extraction Our and large Lignin Center is

We more fully utilize mix, mass do raw our majority also that million a will timber add finger facility will and project state-of-the-art allow to Glulam product the Spokane joint at the investment plant, an our of production. increase to expansion $XX material portfolio a varied

expansion This an CLT to increase be mass is timber order book first a our steadily efforts of in step our in products. capacity anticipation will for ultimately what of

complete We lumber elements pallet heating certain increase pallet at debottleneck mill our will of Torgau to and shipping new upgrades also plants. and our production

and and timber, generated to will becomes green synthetic carbon-intensive and believe Products mass As increasingly flavors, fuel sensitive displacing roles are reducing textiles. we plastic all steel pulp emissions, our packaging, carbon products lumber, that important play Lignin, for in and products. construction electricity, more even fragrances concrete fossil products like that energy, synthetic extractives, world like

We're products committed reduction and XXXX change to our believe climate targets of our part the carbon solution. form

world we that dramatically demand its carbon for fullness for reduce to fact, low of will the solutions the products looks in carbon In emissions. time, our believe increase

will areas bring of that balance grow solid to us more this wood going more end of bullish value pulp, see extract business on business. to long-term To our and to we our remain grow looking forward, will quickly. but the these We

loan, to producers you in so favor of carbon more sustainability-linked meet to We're at encourage confident modest our that reductions of targets product us in our website converted cost in our to invest I German part a of these a targets credit details. wood we of revolving small look willing emission borrowing. reduction in facility our for group making ability to

noted, Dave Richard the CFO as Xst. assume role And finally, Short June will effective

activities more and you of months information. and us will should finish know, transition to you us need been with further most at few leader for Rich seasoned Rich some is time and is As XX over years. with industry a remain course, for has available, with Dave of any I

operator turn for to And Thank the I for the call Thanks will questions. back you. listening. now

Securities. Thank have you. we'll [Operator from Sean, Stewart hear do you first Sean TD Instructions] of And question? a

US. Yes, guys. how wood facility? rationale with split continuing to you pull prices idea that of an [Indiscernible] between intention Can are, into volume much And I'll products. losses they in you rates this Apologies where give Sorry. I the that [Indiscernible], Can us of us and specific the then with any your an pace the half idea market? where still guess shipping start more volumes Torgau to at they freight you're are, the back were quarter on to of give

It [Indiscernible], Torgau mix one the the result different were similar. reasons were of wood in course, for but of starting say products it, over alignment driving were driving the another. broadly in one wasn't and guess, between all I mix, in wasn't they I'd they're broadly alignment. well -- they They with

So, there. not really an outlier

a In QX bit and that's were in say that bit QX. We little than quite ended XX%, higher a up bit from shipments had of normal. little higher in the the our backlog We a terms of there came had a vessels I'd target. than

should think being So, think do future. to there indicative the I what you going of XX% don't of in as we're

that And a I Dave, Structurlam comments capitulating arguably guess to are funding for increase I products, be leverage. is comfort the as your growth But in will going Okay. then with to interest focus wood with And mass your respect Thanks liquidity and that. prices on particularly pulp timber for company. overall just constraints and here. engineer appreciate

balance Just at on cycle? comfort overall thoughts with sheet the your point this in

capital of see maybe at but quickly. moment, lot to moment hard talk million it moment, a got the to of we cash. that's sufficient, just $XXX quite it's We've the the I'll unwind at is working the think liquidity about quite going Yes, itself at

our -- largest out inventory for So quarter coming is wood. of we're QX always our

on So and start itself got QX. that will out -- unwinding pulp in will into We've unwound here sales some back be in held will quickly. cash materialize QX that come we

element. So a there's capital working

passed The just that most in the happening is costs the where in our of structure. other background important thing our we've peak of cost some

So, wood for peaked costs. considerable costs. QX we're reductions example, in during pulpwood and the We now seeing

thing seeing wood QX. chemicals. costs with And have noticeable a in We'll improvement in we're the same

electricity ran electricity, QX quickly Not and So most same of in We up as the summer is the or their they're really quickly. which our starting chemicals our from hard are come derivatives now gas, coming back of to thing. back. very but as coming revenue see back

little that's gas We down quickly. as of well. And on purchase the very bit a coming market

by inputs up are these now very, off the of inputs most XX% and that more backing or went very they're So these last quickly. year over

So looking we're to ahead that.

of timber believe the so we're business to beginning more heard us for order. little that's also our mass big got and our first that. We We preparing you've have -- about and talk that bit a we come

be that having yes, here the while, the for little going leverage we the in place. moment the to terms the a more have at our to depressed than we is bit that as higher than EBITDA target a debt know value of do the I'd of but And in see with leverage,

place that We're of to our get we're a question, is We've capital this got think I trimming just comfortable. -- right number at to coming. your get working the to CapEx. pretty back

moderate we can Juan to return prepare auction, the CapEx for going high that. transaction can ourselves say, heard, participate Structurlam push projects the and in XXXX. participate we we're you still ahead But an As that goes Carlos to if the with

pulpwood of there, can idea Dave, what chemicals, us give an for follow-up to and costs you you. just kind might Thank expect quarter? declines second you And see of the one in

Yes.

we Europe. about So the Europe talk about that's was. nothing probably big getting somewhere in two the little but as we from when in had declines for inflation bit our in form like a We're of cost talking probably in principally reduction chemicals. XX% the we're QX we're where elements those Canada, because XX% know, XX% And inflation QX and similar form structure. probably of are you to expecting And range of

I much Okay. that, for all very have. Thanks Dave. That's

Paul with hear next, Capital And from Markets. we'll RBC Quinn

Yes, thanks very Good much. morning.

lined occurred NBSK average it the had do QX you What in I its from prices was in XXX preceder Chinese there? think for So QX. And what down, expect $XX QX price April you average?

ton now for softwood. are right Prices around $XXX of bit north $XXX a

than this that during expect be it in happened So in floor May. to has quarter. believe we to very or we more yes, hit April the floor it's decline close did the And big

And that. on the expect bid the just for Structurlam. process is understand that side? me around timing you you Thanks do horse for And could stocking what what Okay. help process the and

the The this kind bid of would priority Structurlam stalking process us project. gives for horse initial

bid by May As the XXth, we it auction commence. actual May you know, would US$XX million for XXth or

parties that it. $XX.X private would this be for For $XX acquiring million They quickly. have us. auction to And would interested outbid very least the goes onwards, for or anybody asset at to then in those from million

auction the I would to bid that $XXX,XXX million probably maybe one. believe goes fairly have dollars the And previous quickly. -- every than think higher be I than previous higher $X it's

should the it's of bidding know the on XX, May process. So results we

existing facility, Thanks for growing. just That's great that on the the file timber, that. great. Okay. then to And mass your is order hear

expectation very breakeven I think future expected comment your in profitable heard the the I business but that suspect you I that's year? as this business, described Is that

yes. Absolutely, Yes.

I It think year positive. positive it's is this going to already. be

well. that So see very growing we

The doubt. second without a be quarter positive will

to bidding in been for. production that -- projects see one And we good a more to we continue phase. very on won already have projects similar we and the that So we're momentum

progressing that very lined up of have We similar well. others are size

ability about the we're profitable that very growth a with this this a business good construction achieve why timber very as only our industry to advantage that it as but cross having confident And that's as very, we is see business, business. in will laminated -- not timber. you big growth said the results the brings overall is mass So

When you over years. is for next the it keep look at of five growing North the on it in than rates in five XX past which is U.S. the the at past and America to years growing over north expected XX% XX% been or more at the has

growth deliver. one most have And very significant So we already the on would rounds us two tremendous high facilities with be it the obviously That on a very can we're we of organic gives of and probably with productivity modern a in large fact a have U.S. sitting to very new capacity that in their the us, behind what Spokane. capacities. and confidence top very high in Structurlam complement that nicely in CLT facilities we with what glulam obviously up indexes,

engine us. growth So for it's a clearly

And to that so project facility the understand once, ended through Okay. that trouble the was problem in we -- just Structurlam they company What successful. they if that bankruptcy? up what's ran the you're filing with

had out them forced turned of dire the and of business deals them that businesses had were basically basically put down some on They contracted that those operational straits. that some issues into and they that

got them So was into issues performance it that trouble.

that guys you you'd on… performance guess, around to those get confident be based feel issues able I

Absolutely. with itself. because the mistakes were they or structure actual more facilities Absolutely, the than issues

committed production have that been that were obviously. shouldn't there So mistakes

and a leaders running our that we asset facility Spokane the on in quality that delivering have highest the And we it take timely the within confidence very -- basis we're team Spokane, will projects be this at those to Mercer that have, team and on under management us knowledge high in the have able standards that that budget. our the that we of with the run built we trust gives we over

hear. to Best Thanks Great much. very of luck.

from we'll And hear Capital Markets. of Hamir CIBC next Patel

curve off morning. they Thanks. the do capacity? Good for pulp Canadian Juan as prices softer you have. with as is cost Carlos coming pulp Where think much

be very, obviously having I profit. think several level, a making difficult prices that with times in can at very this mills

the with up these way we I softwood, possibility. managing these believe Celgar we comes allows prices, think set when through still it that have even us we're rough that to times

that In cost our probably in What Celgar, border. the knowing some from will US curtailments other are south a that mills Celgar we've different from improved be that wood a able Celgar, much the in chips just source at relief wood BC from able cost that especially competitive forward capacity tremendously we And so That and is those actually mills at would of a unique perspective, of be position from reach, have to the is going not us to also to for for that that's least to the perspective. brings we access to prices. suffer look sawmills good baskets basis. at something

much continue mills Celgar, woodroom development by fact positive ready So also, of side. that the year forward. wood That from give River the the that we develop more us very we is see Peace for perspective. situation we've we our the a that benefit as woodroom a already Peace helping to the benefit stronger once going the River even can on And have in end cost seen would that in it

it. River, room benefits this as of Peace once the the we begin campaigns out period in we, maintenance and we'll running and So getting softwood wood with shutdown finish

those the that's the we that before, think are. as where, Obviously going QX think a with I is bottom we I little quarter assets softwood reach least. where can bit in at have. situation we're we navigate for I prices So through I in a said think complicated But

seen you Great, question Dave. Okay. you coming Do in for price a year expecting referenced and kind yet, from year. as here? there prices the what to pallet sense have declines to stabilize further prices started are of, off declines or just And you have maybe level you've Europe, thanks. helpful. That's believe a of still over I

XX% months. now. last during But six come are probably were falling during the telling that to quarter the they us is quarter, one, XX% starting but our they've to teams off in What stabilize still they're

up bit didn't the And in it two? a much. that run had realize or prior year I they Okay. quite was

were at high XXXX. did They They quite levels. in

Okay. Fair back is in enough. – This the this of all

economic Obviously, uncertainty.

So will as will reactivating improve and conditions rebounding conditions stabilize. once gradually, we market begin that we believe obviously, see, this fairly quickly do that commerce

Yes, I fair over. it had. I'll all That's enough. turn Thanks.

now Stevens, Richard Instructions] have [Operator from We'll Momenta.

Hi.

pulpwood couple coming costs. I if follow-ups, Just chemical I a down, the costs the appreciate could. regarding comments

things One of terms mentioned increase was in you working cash generation of the capital. the in

you it If of burn, cash little QX an drag would cash most I kind look to at how break-even in that of that free out of year? should maybe of Can just your was expect a we you to related work flow QX. quantify inventory you a flow becomes definition, course by the period. through mean, free think more the

Is guys positive operations. are that to from at You say? fair least cash

if of pulp wood of generalizing inventory mills. bit. year, half talk of the when it of inventory. we is harvesting the roughly and is And build the during time and a inventory the quite have It's the I'd then a the wood typical at our summer activities is half about of it this a the generally and in lot build, is high sites. we higher, little buying consume is wood it we front pulp don't winter at or the access half we inventory peak the inventory this to I'm Roughly inventory. it Well, of it's say where happens here in quarter inventory

So high. it's relatively

Peace to new Mill moment quite the bit preparation of the we've The is built our up start other room. in thing a at wood wood at our River inventory inventory about

a when we so we started because to wanted So wood high that weeks it now, of high built, wood wood in little in of the wood up unusually the had up, that it and new we capacity couple started room. and room. room for a ago lot a front we make bit sure preparation very We of it wood of

holding materialize, doesn't relatively started that manage we the first On damaging sales were that impact inventories high and that but wood, to, were trying on in here have pulp and pulp not we to in market trying we reductions introducing with but that The bit was sure have reason we manage the the by and have we itself trying weren't very when pricing seasonal the much QX. pulp. too for of that did little principal relieve a to to the price quickly to will it pulp them side, pulp make back

timing I because come think if so the is the to will ask about mill will So half half, unwind expect pulp the you wood out intended the summer. that through inventory will take The in you other quickly the build supply that wood very than that this can it's of inventory, how longer QX. the

unwind You next can expect that to the over probably two quarters.

Got it. Got it.

plan. Okay. That's not assuming follow that CapEx in helpful. horse stocking included to Is I'm $XX And up the fair? on your then, bid, the just million, that's

Correct. That is not included.

that done mentioned, we As is not yet a deal.

the that to to land. structure it be So is pay when for we adjusted above or we to willing regrouped and XXX, including million and that looked XX at expending not our CapEx XXX would

the pretty have that in been discount question out There morning? terms that market? in and final trading me, the you, end, in there, then earlier for of were bonds you steep a was repurchasing or open potentially the you And considered bonds have levels active guys you mentioned this post-quarter

got dry on. ourselves powder also for preparing structure longer than we've a that then And how be that if think going that I a of No, prices we've in for and that be can something enough months. on imagine so it land lasts sure perhaps been to for could different few long making this in some stay low, uncertainty we've this something but if period to pulp complete like watching where circumstances go, we're the would got considering, you we'd if we're hoping are

I like bonds are the seem the attractive, didn't time. just right just prices mean, time it the So the right but of not to,

Got it.

it for Thank Okay. me. That's you.

back time, to call are this additional or questions. over Juan at further any closing there the will comments. turn Carlos for And no I

forward to to all Okay. more at don't joining and one earnings to speaking on our call Thank so operator, of for available you our to to hesitate now. us. talk Dave are again Bye July. time in and next of thanks look Otherwise call any I you, you we for call. Rich,

today's And that for Thank participation. you your conclude call. does all

You may now disconnect.