Quanex Building Products (NX) 13 Dec 242024 Q4 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Fourth Quarter and Full Year 2024 Quanex Building Products Corporation Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to our first speaker today, Scott Zuehlke, Senior Vice President, CFO and Treasurer. Please go ahead.

call the joining for this morning. Thanks

call Chairman, President the forward-looking and non-GAAP with call me our Wilson, statements measures. of discussion George is some and contain today will On CEO. conference This

information on discussed based revise no differ events. obligation Quanex are expectations. or materially guidance and such current reflect forward-looking statements this and statement and earnings on events in or results or undertakes statements to any call to Actual from update release our may new and Forward-looking guidance,

For non-GAAP most forward-looking see reconciliation GAAP for a now yesterday of disclaimer statement I'll the our please website. issued turn more detailed George measures his description call and prepared and a our to posted our measures, directly remarks. of earnings release the to to comparable over

good macro to begin over it that, followed financial by back the call. and a more with brief quarter Scott, discussion. the environment. who to broader on detailed Scott, joining morning and strategic I'll a everyone the After some overview, will call provide today's hand Thanks, I'll commentary

creation this operational I'm will has fiscal plans. cash provide plan. As year, organic the inorganic At past our our progress and proud core and in of reflect growth foundation the the that of on drives close XXXX we've the strategic solid and been made we of flow incredibly a executing plan strong support for

right culture. foundation and doesn't Building without significant time takes the and this effort happen

profitable markets. existing next on has performance channels, growth. it positioning remained uncertain strategy this resilient and phase focused clear consistent and manufacturing over the opening environment the market operational capabilities been expanding place, foundation the addressable in With well few Looking new enhancing macroeconomic has for of us our our strong is back growth over past that our challenging years, and

all growth, and a report of while To met I'm and acquisitions Tyman we that our of financing, balance both debt healthy employed to have maintaining equity have this strategically these sheet. objectives. achieve all pleased

Looking entering of next evolution. the are we stage our ahead,

heightened Our continual scaled strengthening overarching of the operational goal profitable organization. a of newly remains foundation unchanged focus on with growth our

are As part evolution, operating of segments. this restructuring our we

our geographic growth, than segments. forward, this the current structure market-based sciences both be We our around previous our shift rather leverage fuel the in adjacent new and on materials best our core in manufacturing and will synergies Going believe competencies to will strengths opportunities and capitalize markets and centered and areas. create in

segments X mind, announce maximize foster and We us operate are in segments: best to designed solutions. I'm that business in for of and hardware opportunities, existing synergy custom will created markets. new the with excited these we going global sharing both new structured a practices future growth to reach and extruded solutions the forward, to in they positioning solutions, and

it about structure teammates enthusiastic our my We potential are immense and for new at Quanex. our the and holds customers, shareholders organizational of all

further insights into Analyst scheduled Day the an provide on Investor To NYSE X, we've February at XXXX. our evolution, and

offer our deeper strategy. product leaders During of we introduce segment the this a lines will look each at company, and and event,

consistent order presidential Volumes amid environment cuts rate Despite an anticipated and very greater came conditions still inflationary rates Market expectations. demand with near around and quarter. fourth interest fiscal our and confidence, the certainty to pattern. in we Fed weakened with a to to our remained concerns. seasonality traditional Turning U.S. high operating are in more return our election, consumer

XXXX ongoing in winter integration of the the holiday the team and impact integration being the sluggish fiscal and standpoint, improves. demand second of schedule time and our uncertainties as capacity focus and optimization geopolitical the ahead with higher margin confidence the R&R synergies well months, is worldwide. realized we to report pleased that optimistic that pursuit markets on and perform continue of Global to exceptionally build for Quanex a said, expected I'm half of a and remain in are projects. the consumer to continues operational throughout Tyman an but in From energy rebound being With new expect as costs activity planned.

synergy We will provide as year progress more the detailed updates on unfolds.

and front, the On X during project sale the the completed quarter margin Kentucky facility. of vinyl capacity our Richmond, optimization was extrusion

extrusion fourth a successfully the while over simultaneously few of mentioned America improving years, sold approximately gain capacity. facility We of $X to business. cost the remaining vinyl extrusion past has the faced North North American As Richmond, the the excess quarter window vinyl for market due challenges Kentucky million, the structure in during

fencing of of like margin. revenue generated low In at We the discuss next our also to all work we're of I'd want vinyl financial our American all over will North in for the more our creating new I teammates a back executed part our performance. I who which And now million approximately Quanex Scott, XXXX their $XX in very excited closing, very a for of will welcome thank also business our as at in to detail. for team hard steps turn and continued We've call sold this well sale, and results strategy, stakeholders. to from the value Tyman. on fiscal

million fourth XXXX. of year, the to were net $XXX.X Thanks, sales sales basis, represents of XXXX. acquisition $X.XX an increases to a period XXXX. approximately that for for of billion closed The George. represents for increase XX% which from an the $X.XX On the by We of August approximately compared $XXX.X driven billion increase Tyman of the compared on XXXX, primarily contribution net XX% which full million X, the consolidated same quarter of reported reported we during

XX, quarter months We would X.X% October per during largely and diluted year, declined $XX.X the loss Excluding ended net October compared share of XXXX the contribution for volume. XXXX, per of net have $XX.X diluted million ended full by sales of X XXXX. the $X.XX to during X% for net or to income or months Tyman, $X.XX million share a XX, X the due lower from the fourth reported

year diluted full the $XX.X full diluted net or year compared income of XXXX. $X.XX per we share for XXXX, $X.XX the to share or reported million $XX.X million For per

loss basis, $X.XX per XXXX. adjusted XXXX $X.XX diluted net fiscal for of $XX.X compared $XX.X or fourth transaction The for million weather, acquisition, the facility adjustments On and and settlement quarter expenses manufacturing are or to share damage a diluted to adjustments $X.XX net on to an Tyman primarily the per or fees, inventory share pension $XX.X the related during fiscal the closure, currency XXXX. diluted caused to share diluted translation compared fourth was impacts. a for per $XX.X income million share quarter to income advisory purchase to for of step-up made Adjusted related of per amortization was during by and or AR being $X.XX EPS expense price on plant million XXXX million foreign

compared the XX.X% On an $XX.X million increased last quarter million period for to adjusted $XX.X during by to year. basis, of same EBITDA the

For compared EBITDA margin is $XXX.X the increased which for XXXX. to million a equates Tyman $XXX.X October record full This to XX X points in attributable XXXX, earnings the year and mostly of for approximately the adjusted months expansion Quanex basis year-over-year. increase from to EBITDA in XXXX, to acquisition. XX, new by was the XX.X% ended million, contribution The months adjusted XX adjusted

sales, in in raw volumes related the and adjusted also the including to labor was materials. deflation part cost due However, increase of price of earnings lower lower in to

We year-over-year, operating generated $XXX XXXX. million for by fourth sales XXXX, our of for the of the quarter decrease of QX volumes this Now X% approximately declined We American fourth with approximately $XXX.X X.X% North of X% results segment. compared in Fenestration in estimate versus segment of up in net by XXXX. million quarter segment a pricing to that

American approximately in year, of or year-over-year. slightly of which X.X% estimate in by with XXXX segment, margin a XXXX. our and higher fourth pricing. prior XXXX. compared sales net reported this year-over-year mainly than demand decrease approximately to X.X% quarter $XXX For the to million declined softer in XXX to $XXX.X full million decrease the lower segment in volumes this in for We was The we pricing was expansion Adjusted X% points equates of basis market due Fenestration EBITDA the $XX.X North segment year, up versus million

for Adjusted basis equates year-over-year. year done this of XX points a the lower full expansion margin EBITDA approximately segment XXXX, good volumes. versus essentially has flat group was $XX.X despite but This million the or costs, job in controlling of

revenue generated segment to $XX.X Fenestration the fourth represents an fourth $XX.X European million XXXX. which quarter, X.X% of of the quarter of Our in million compared increase in

the about X%. approximately for that were translation impact essentially pricing down positive foreign of X% in flat quarter segment year-over-year estimate with We exchange this volumes and

XXXX. segment, full European reported the a For we our in in of to sales decrease $XXX.X $XXX.X million net Fenestration of X.X% compared year, million

about with segment, volumes the year, by exchange that estimate X%. For foreign approximately year-over-year impact this translation down positive X% declined X% full approximately of in by we and pricing

versus million during in period Adjusted EBITDA $XX.X to the $XX.X slightly quarter this same last declined for year. million segment the

For in of full net reported EBITDA segment, of year, that million a million but the in in our adjusted decline this flat. X.X%, We which of by the $XX.X represented was at approximately volumes North price margin sales year. segment declined which essentially that came note We X% Components Cabinet American by estimate and for compared represented during quarter. approximately the segment in increased this growth X% quarter, X.X% prior to $XX.X

and approximately estimate largely our $X.X declined of in mechanism helping year, X.X% by hardwood X%, in in to a hardwood net were periods volumes segment for tied negatively costs. we after reported price profitability related the pricing impacted quarter decline sales this index versus both related declining XXXX of respectively. approximately million, year, price The on index Adjusted for lag front EBITDA and to X% XXXX that us XXXX. movements million time this The $X.X pricing to the full $XXX.X with For which We million XXXX. in represents year-over-year. was segment the full for

the XXXX. we in reported business fourth of the quarter comp sales there XXXX, earnings this for no in is fourth $XXX.X The million Tyman own quarter of didn't the business net release. of Since

of market saw fourth also due the is China. quarter in to consistent to However, exit approximately which due down low-margin in XXXX but for the business, the legacy Quanex demand to all soft in mostly business conscious revenue quarter what of XXXX, segment this in decision segments, compared XX% in the we with was fourth part to

by closing expansion in of in office came more London, cost driven the million Adjusted low-margin and quarter, to which Tyman's efficient compared synergies margin in to EBITDA operations QX XXXX, home related of business legacy at North yielded America. exiting the China $XX.X in meaningful for

cash to capital provided full Moving by year provided XXXX. which balance very operating XXXX fourth working the by on XXXX, in sheet. of of managing and Cash million the quarter the acquisition Quanex compares $XXX.X for on flow impacted to $X.X quarter was Tyman throughout year business was full maintained million the which for compares as by XXXX. fourth We the was Cash the a much layering $XX.X legacy for to activities make-to-stock $XX.X for very business quarter the year, is million business the activities the is operating Tyman and million, make-to-order. legacy but focus fourth much the

flow generated flow of in a onetime for of is XXXX the driver the We costs The year XXXX. XX% lower to main free cash $XX.X about to XXXX, acquisition. cash cash full for the decrease Tyman the compared related in million free

cash million on you full for costs, of have adjust cash about basis. free onetime would $XX XXXX normalized year these If been flow for a the

acquire XXXX. and reminder, Term X, Tyman to Loan $XXX for million A the borrowed we a million, revolver August on $XXX $XXX million on As

Since in XXXX. repay the that quarter we of fourth were time, able during million $XX.XX debt to

amended calculated XXXX. ratio leases XX, in estate October forma defined compliance This covenant ratio of credit was quarterly Amendment #X under the Tyman debt months restated pro our for adjusted agreement, debt basis SEC is include EBITDA considered debt is second GAAP which on excludes and are XXXX, XX, and The last leverage leverage to covenant ratio the acquisition. was XX leases that to real from leverage U.S. a with filed As June finance our the calculation X.Xx. on

X.Xx and website on acquisition we of on on subsidiaries. be we Also for balance synergy and leverage X.Xx amount April ratio $XX would The from the as XX, only cash cash using equivalents the related our to target XX, deal referenced in in ratio leverage line with calculated credit for million domestic the presentation includes full sheet The the of cash is leverage debt announced when the covenant the EBITDA published XXXX. the XXXX. ratio October if

each which host we operating specific February segment, an As will George unveil Day At mentioned, Investor time, details to include at on new fiscal initial we and Quanex, the X, guidance Analyst will the Thursday, plan along XXXX. for to that NYSE XXXX. with

will guidance use the forward. cadence profitable the to In our versus XXXX going about operating quarter out Since be new of until first detail growth the won't addition, XXXX. related the XXXX of rolled for segments in early following please strategy first we quarter disclose February, more for

unwind. Tyman With XXXX business, demand As from starts XXXX a meaningful quarter of consumer confidence year, weakest in a we seasonality to in the compared first XXXX, demand of reminder, quarter be do revenue of the our pent-up usually said, expect XX% the typical the the due first but contribution improves to the quarter our consolidated uptick to in to the as we a and expect driven that of is up of half on basis, second by first XX% assets. quarter the

XXXX to be a consolidated in margin be about to of is compared first the EBITDA XX of XXXX. to basis, expected to the of quarter adjusted market basis with of first volumes the quarter consistent down However, dynamics, quarter the first XXXX. expect do in On first points compared quarter we up recent XXXX

expense million In of quarter tax reasonable addition, a in approximately of of XX.X% first the XXXX. $XX with is interest rate

questions. Operator, take now are to ready we

[Operator from first the will from come line Ramsey Steven question Research Instructions] Group. Our of Thompson

clip, I high guess well seems known and on you got how any broadly? wanted then now given the foundation? a the Tyman adjustment that stagnant maybe market level you I you that moves is divest portfolio less in at considering assessing portfolio you've remains to are to there. pretty my synergies are have basically, that out coming would bit And question and core now anything this nice a bigger first be pretty think are

The Steven. question, the the is, evaluating yes, for we entire Thanks answer are portfolio.

scale of this portfolio that. that acquisition grow. I The at us from and add the and going gives value see approach our to a customer to opportunity look them the to can help take an is pieces we're think of obviously we'll customers do perspective what

Secondly, then profitability. growth to as potential we'll means the look at that what well as

we will as divest the customer margin to drive of just think add to improvement noncore our value do it through that I that not assets use potentially can subtraction an revenue. opportunity

XXXX. But go So I as will to some nothing forward here point. to specific at fair think that say in of it's a be we this priority that, views our in

helpful. to EU think about That's the Okay. wanted Also segment.

with strong. some this even Or kind XX% that? consecutive very dynamics that level Do would normalized you years current the you margin this You've peak XX%, had to are view there X in from helping level of the is maybe range, operate that's -- a of? or build say for off

done I'm Yes. improvement margin teams of a over it's No, the operational question. extremely our on performance. proud years what have really and great past

the our the legacy was I separating into made way were businesses internally. I up a we most think, to business, them new some -- a limited me, kind as we think address opportunities accomplish in segments, segmenting these resegmented we And them legacy of synergies things. difficult trying few One practices these get to geographically, by did approach. or businesses really we best global to or of which the Quanex or Tyman of split it sharing excuse maybe -- take

So on potentially opportunities. put although think governor we those it good a a job, did I little

of business from global globe. more the opportunity a and the taking gives a I share practices at it example, Tyman it looking from think up, to new best things the for some our and set spacer global us or approach across these of businesses perspective,

don't by margin answer on long tapped I is internal we're So my projects. anticipation, opportunities improvement think Steven, here driven that out

reason customer; best still did: the the on our established the then to that segments I we That we've continue organically. that can how was part focused restructure. margin our there's one, and for improve into that was of we what these delivers way some basis to opportunities the runway, think two, tap and around

the as that well. some get improve up, operating efficiency world you're will longer markets to Steven, only I'll The add going is as around volumes tick margin there, help and point, term thing gains at

segments potential excited these drive optimistic the So see more we're I pretty about new that about you come, to that. but pretty can we're think can

better quickly Can maybe starts great you margin legacy businesses Quanex. talk to Maybe that. margins alluded that's from could perspective. kind volume And the incremental the to ask you to No, from you something volumes improve? X that Scott, better benefits margins and as given, these as of there, to together, where get historic put incremental

because cost only to variable cost would rewards would operating fixed fixed a better, and very volume is the reap Where you're difficult -- question line in you fixed more where product cost. cost, to the have see That's to a variable leverage to obviously, have by we go line up as versus ask you better could. than ticks product going

way Solutions I extrusion the you much lends process example, business. we've volume-driven think It look if alone segmented Extruded type at very in the segment, itself. for of kind is a nature of of

I you in type So improved. that the most segment process benefits see of of markets type and would volume that think as product

next Our come the of Davis. line from Adam Thompson, from Thalhimer question

Congrats record a on year.

you. Thank

I wanted do it of are takes about to synergies, X still comfortable ask $XX to first million getting years And how the think those? synergies? capture to you you Tyman the

question. Great

such strong comfort we've progressed and about I So level a our type you're this, stated million apprehensive is very I deal. always embarked transformative and segments, the $XX you number we've around think new the as when giving now But on go launched of as a that high. into we think

strong achieving levels. very have those in We confidence

and and that's little the a the talked as than We consolidation gone through, which corporate anticipated. the the according on quicker focus already, move of has maybe think plan started. to focused teams about I we've offices,

downsides pleased results to segments, that starting teams opportunities these newly at very are think offset helps even become unknowns of this growth created generate then the to convinced potential there. the I and be will that more that And we're we divisions any of think they're I synergies operate within don't the the amount seeing know. from that are we're finally, commercial created that combination types that and creating new Now you longer-term

guidance question, confident given. long beating hopefully we're and I another answer extremely to again, we've meeting the think So in your but that

seen 'XX? season demand of Okay. I'm And in what talked holiday contemplating in -- incremental fiscal sluggish a you year trends winter. curious weakness? the continuation that is you over the you've George, about and Or are the

then color, too. Scott said, start I'll fiscal One, let what not every add and think type QX. terms an abnormal I is we can in thing any I in see year we've our of softness this off that of

example, to think cabinet I inventory think adjust to opportunity opportunity and markets, we before the holidays market as the levels customers I an see as serve, it our using in an for that the reconcile certain using you build. volumes their

incremental an that a think I of little So has impact. had bit

I seasonality and as playing on we've the what what think most that anticipated. a it's we've out It's pattern. Scott? year, previous. of just I normal it's seen continuation for nothing being continuation a on part, exactly emphasized And we've this think our -- it's not and -- anticipated modeled

everything And once down confidence in we the a do not spring volumes and like amount. in consumer 'XX, by Yes. expecting markets we we to said, starting year-over-year selling be feel season I XQ 'XX mean, with I up significant versus just would tick expect George to improves. agree are but

same. to talked that at we've have doesn't this customer one sure not that I'm point

fairly the need continue rates. housing anticipated or there it. is we'll the optimism back they'll Again, the Fed cut that for that continues of the to half year as indicators strong and a the that think market I see

see ready optimism to. pent-up turning I flattening and almost think talk other I there's in hopefully confidence R&R As build, the every think we a we from both the that's that new inflation be customer market, we're And demand will to starts grow consumer released. way, and bit little hearing that

Our the Garner Benchmark. of line next from question will from Reuben come

fiscal the year. Congrats on year first strong

Thank you.

question has of late. tariffs a big been start, To

your business around, cabinets last go saw think kind opportunities. have benefit I guys reshoring of in you from might some

that maybe have acquisition would the have any Tyman overseas? you to competitors imports I any whether they products bringing they With in guess, talk risk, and exposure or that be just not can about from coming along, at

I of the we organization, think is team that of done provide to a about as opportunities. as ]. any from as locally, capitalize those should talking has lot supply Tyman risks or job source we time Tyman any as a well the the a war on phenomenal tariffs sort of well spend The become as built look building of sort chain to organization opportunities there retaliatory [ opportunities at tariff

Tyman should become situations feel have we've we got to think taken provide and a or steps a should very about I address of that the good good the war team feel balance the trade it that So really pretty tariffs opportunities. any

capitalize and on that well think of I any we're to negatives. the are protected ready for

potential you know America, well. think I anything tariffs see a business have be that market, changing there tariffs any the products. North that side so be opportunity of in business and that of Obviously, Reuben, type wood our the I And business, from additional the our don't would help should on should cabinet for that specifically to -- tended

couple ready Scott, there and going Got it. you. that guidance more pricing you're about is year up a from perspective know you some kind this And the forward, but even? and yet, for neutral Like this headwinds expect guys, way? when to be year of not against big quarter point had and would a this things I full to about pricing pieces the give you working would you Or at on think of just know gave I we like you picture then

But by a in way volume by depend up what's go going for pricing with material. on potential expectations. of to model raw really more to mean, to neutral usually macro on is we up. I And going don't or material going down. there's the is it's raw to that lot It's expectation pricing be and the bake we driven

Yes.

there, any first cautious inflationary sort that and impact wages pricing tariffs, of on does because anything question. the of there's of the this pressure goes many what labor any right your sort back guidance so moving think that pieces. have being there, We're potentially and impacts pretty to on I to anything

I being cautious our around price. in terms we're think guidance very of

I it's We're in Quanex get dictated to and think think I years, have be numbers focus we'll few we the it world, we've of by input being prices proved what price, abusing over the a the -- it. not our ability, supplier think able done legacy and past out in where fair we've on been I will the but be we see.

Our from next the of Julio Company. question line come Sidoti will & Romero from

ask the macro a I wanted little bit to about here.

affordability have Some your peers of called out constraints.

that winning a about And be You confidence of kind guys little Can to nuanced help rates what your higher. peers? talk talked and consumer on mortgage might just why us about think about maybe of viewpoint compared you're seeing kind you persisting some front?

Yes.

the same customers. see to and we in think things I our talking

some. the flattens buying the R&R much I With a think more door. in to our us, a the start of remodel bath be new R&R cabinet type than the a of then drop, tend as think potentially we'll the market item discretionary and the do to has movement rates window which affordability been certain or hit housing, said, business, interest I dropping, and the if and rates spur of that discretionary homes, on hard, like especially overall tends of kitchens being does people or projects, interest that more price for segments

your I are think we seeing Julio, answer to it. So question, yes,

-- it sluggish XXXX. that of there has in all been think I are

most volumes a our few will and we're on into we affordability interest comes the why built down it, that's indicators demand. rates pent-up and bit that, the over saying in are and think it. pretty next forecast be think it sluggish that will of see when the some I drop, I little confident spur months. But think We we're pretty that macro

compare very there. months is you compared to maybe And right Got in North like X America maybe confidence it. just then ago? can now Europe versus where consumer That's helpful

of in is back think little we've what coming parts certain started I more Europe. there's to that confidence a see

America signs seen we've started that to think led U.K., be which than earlier I slowdown did. the honest, downfall, seeing the North much a they

I some think will slight there. of and Russia Eastern by Europe that, Ukraine. the seen is maybe things part there The of in geopolitical be signs that improvement on we've with going tempered hard always

that just there an If quantify probably qualify for to over end, that see are think that of things going based are reason happening I improve again, I come there faster. to -- controls. the European I conflict But to whatever normal on were fundamentally -- out markets you're market

I that in a potential further think markets European little the are along recovery.

But be a open and is to North quicker America, a and little spending. risks the so large is the consumer here with little take more mentality market

So any I would sign you improvement, in in than spur of think, America could faster North on recovery a Europe.

turning Very to helpful there. Maybe resegmentation. your

X in the Can synergy the been about segments? North Are then believe maximizing the segment X bit structure. ops called And you positioning and very rationale leaders? out for back key onion growth new maybe secondly, those X kind new thoughtful for you there. I obviously Star the prepared You've peel the little a the new strategic the for and segments remarks, items as new of about the

we little a let yes, we the That's one, serve to to cabinet. serve window And trying the peel but and try markets, not bit, our we X So cabinet strategy not a all -- know, they're finished door back or X big as make we is of who window along we or yes, door us markets. what we do are. I and do, people part

core has that manufacturing set competencies. of a company broad We a are

after door systems, want based to potential and a We window new that. organization really go is here to a sit even as opportunities. our or cabinet company internal new segmentation our company. look don't so on It And ourselves our and and markets, limits new view

a strength operators. it is what pretty us, manufacturing our that's to build last the this X to bigger way: really us in gives I opens our think than currently segmenting for we we're years to capabilities. are; development good the of of we've And think that X So two, I it Quanex think much off and one, teams think opportunity to I that X over proved

that, So much then gives inorganic opportunity when faster. that it to done on us way, opportunities capitalize fuels the an it which

approach So fastest growth; Quanex. I how we that's of about these we what way the to feel of good new then do. optimize the I think then drive really, the legacy some of going one, the we legacy two, and and is what's combines do really Tyman this, to Julio the Each And really one those that segments. some new segments use

into done. from you've always new So able working you're when and things see create to got together, you've people rather what so both being blindfolded organizations than

each of little excited these about going think we're to organizations. important. that So we that that's extremely from a was really the potential bit drive. both segments And include And that,

if I quarter kind run for for here Is of expense of of $XX paydown point is, in more sneak 'XX. assuming could first kind And one I any of rate that for now quarterly And kind outlook fiscal million. fiscal fair interest a for of assume the are you then 'XX? appreciate debt Scott to this at maybe maybe

pay we I the clear a assume priority down us. absolutely debt year. going that's throughout We are mean to for

the Day. the But more expense for year. we'll and at interest for quarter, a down Investor high detail first million I million trending the think $XX give will $XX be So this thereafter, little watermark bit

to with to And back for any remarks. now like over would turn it I that, Wilson George closing

Day about joining. and X, Thank at Investor company more We're for the wish and you. to February and future forward detail look about all at safe the you XXXX. like of Quanex to combined everyone, Analyst I'd holiday. NYSE a providing Thanks, the on our happy extremely excited

Thank today's participating you the does conclude program. for This conference. in

great You day. may a disconnect. now Everyone, have