Proto Labs (PRLB) 3 Nov 232023 Q3 Earnings call transcript

Greetings. Welcome to Proto Labs Third Quarter Fiscal Year 2023 Earnings Call. [Operator Instructions] Please note, this conference is being recorded.

I will now turn the conference over to Jason Frankman, Vice President and Corporate Controller. Thank you.

begin. may You

Dan and XXXX Sherry, Robert to Labs' Officer; Proto Proto Officer. Thank Conference welcome, Call. Quarter and Executive Chief Earnings President by Chief I'm Third Financial Labs' you, and everyone, Schumacher, joined Bodor, today

a Labs September results website. ended release announcing XXXX. the company's The release This for issued its third the morning, press Proto on quarter XX, financial is available

at press our addition, prepared In release. web our provided in is online slide address the available presentation

relating many to materially or cause statements performance uncertainties Our and forward-looking are discussion include to from today could that future may statements expectations will differ that results actual and risks considered expectations. be subject to and

for actual any forward-looking Please materially press filings, and refer from our SEC outcomes and our risks adversely today. made recent release earnings that could on to information certain Form differ cause annual to XX-K statements including report on

non-GAAP past a press The the Relations discuss of will consistent at the for our include results section our non-GAAP to GAAP to reconciliation measures refer Investor of our guidance company and release slide Please presentation website financial with complete accompanying we results. and practice.

the turn to Rob call Bodor. Rob? over I'll Now

and expectations earnings on for financial the top an our thank morning, our bottom third am joining very quarter I perspective, Thanks, Good third quarter. Jason. results, our call. surpassed which everyone, had Labs a Proto you excellent From pleased line. with and

Injection, XX-year Printing. Machining $XXX profitability, the history. record Labs' CNC broadly improved We generated quarter, XD generated cash figure of the In to and sequentially year-over-year we and up revenue was in highest return million, revenue, shareholders. across both flow substantial third Molding reported Revenue revenue quarterly Proto and capital

constant a revenue, the network currencies. XX% with record in year-over-year revenue was in Along million, growing record over $XX quarter third total

powered pace. an network in by market take share to Hubs, outstanding the digital continues Our at

growth. business internal second factory Our factories fulfilled sequential from with nicely digital quarter the our through rebounded

fastest the times customers accelerate We the industry. continue for and in lead most to with innovation reliable

Labs is a production Record shop uncertain custom an Proto for is becoming revenue demonstrates this. low-volume strategy Our one-stop and working. in parts. macro climate prototypes

continue As and the we integrate realize offers, Hubs factory significant from acquisition. to network value the we

Our offer Proto is continues resonate digital a to Labs who significant us are to it. customers with and factory adopting network digital the increasingly customers. through was clear quarter growth third portion comprehensive by driven the This as network of

the from order design serve base unique buyers customer our the quarter production engineers largest In third Proto We parts in alone, over and Labs. industry. XX,XXX

we growth factory notable all While third automation of portion larger taking a offer quarter through the and advantage comprehensive infrastructure network. These digital combined strategic customers digital our have of serve the scale, are these to our of fill customers, revenue and was to from customers.

serve with company and them to time This go better our strategically, unique From industry. of to production, can our and ability unlocks deeper X customers than share in quantity hybrid more customers' needs we quantity delivery serve X wallet. overnight over to our million, from to any expanding other prototype offer from

industry-leading profitability. our In addition improved we also revenue, to record further reporting

factory our improved Labs' profit and non-GAAP per Proto year-over-year gross in both quarterly which X XXXX. by quarter highest generated largely resulted the EPS since earnings and gross digital Third quarter-over-quarter. higher margins share quarterly outperformance We Earnings both increased in and volume years. network, dollars in the driven was digital highest consolidated

a consolidated gross have and was we network now X gross also margin and for margin record, consecutive quarters. margin Third operating quarter expanded

growth, executing but we've profitable not are been just on talking it. We about

to offer. profits investments allows Expanding to us in innovation and customer drive improvements our

and analysis the design design tool. one with software it additive feedback design for Printed help instantly. innovation, manufacturability such does received for instant During so quarter, to rich manufacturability parts, provides we them the for third proprietary external This recognition our best customers XD

For Labs award innovations XXXX. recognizes a by best several Award, publications that XXXX of new Idea an the this innovation, is Proto presented industry product won this

is industry example This how another us helps as leader. position of our innovation maintain our commitment to

offer is growth customers, U.S. in environment still consistently the continues conditions Yet economic soft we in throughout XX%. have the network delight Manufacturing to our over with manufacturing business uncertain. remain and our especially improved XXXX. broader and While quarter, the not grew Europe year-over-year digital of

envelope. in offers Proto the in of world options digital and Labs most lead terms manufacturing service part the time pricing, comprehensive

tangible the Our customers sourcing results. factory few effective, from Proto it combined see you can network. value through highlight low-volume and as and factory of Labs with prototype like model resonates to And in our driving our how are the which I'd is and financial of production examples with a network customers, out parts

initially for production The first They Proto times, and factory medical turn machine reliability. Labs leveraged is had In and our of a Fortune leaving lead this CNC help to Labs customer factory and and digital and vendor parts. to the is to end in industry best line company regular situation equipment Labs this with always line-down a familiar has time-sensitive and its XXX due candidate delivery digital down Proto affords. customer a not our my company's Injection a could a gap world-class Because of on-demand for our surgical solve example, great situations production rooms. been that Proto issue. medical for components, Molding lead speed times large deliver use

a used the digital situations However, types Proto from in able were the Through over for of of prior production the course increased. months. customer, away in delivered would and the network. the of few components case the production digital production as volumes That $XXX,XXX of we network, is no longer these Labs over medical establishment and the shift grade to because support often to network,

immense extended and The customer medical an them shutdown, factory value combination avoid network provided enabling money. saving Fortune of significant this capabilities the to and production XXX time

the innovation network, factory Labs continues Proto In addition the accelerate to in factory. customers to our using increasing of the digital number of also combination through

Labs upon the with called prototype vehicle electric help are luxury we work Hutchinson, battery to market. companies firm electric Proto Proto multinational luxury in leader, design into foray manufacturer the automakers assist innovative to a high-end the selected the world most for next-generation first manufacturer the industry by automotive Labs develop Recently, first a its products. the system pack vehicle. to cooling and with As

is testing prototype, their choice of This electric validation are often supercar reducing of illustrates we happening. innovation We on rapidly the manufactured lines reliability why be partner which power and testing speed, innovation. project stringent times Parts we for and delivered X specification meant is Proto time and the injection molded standards. Labs to accelerating parts, our mounted and the and Utilizing and quality wherever quality,

Now for on end year. areas priority the a our of brief the update XXXX approach as we

our particularly the the growth, Machining; As a priorities reminder, profitability factory are: and first, CNC network. largest value to drive Molding second, Injection services, our XXXX and expanding to in increase and revenue in through shareholder

priorities, delivering successfully growth are both on We revenue profitability. and

beginning Molding with goal At will grow up was this revenue. IM revenue Year-to-date, organically, stated revenue the to Starting we and year, goal XXXX the year. was our for achieve full we we year-over-year. of for Injection that our believe

that and more win We continue network Molding to orders fulfillment. leverage factory both Injection

orders, our use demonstrating expansion production Additionally, we into larger are cases. winning more

And CNC revenue to year-to-date. year up Machining like XXXX. the full achieve for expect growth Injection service also over is Machining Molding, CNC we our

customers third revenue took the lead from fastest customers XX% reliability CNC Meanwhile, world-class the quarter get advantage the and times that Proto of the to value of Labs sequentially the the our our model, our the Machining network combined year-over-year, grew Third offerings through more fulfilled industry. revenue digital in over highlighting digital grew network. quarter as factory broad and by effectiveness

structure priority. profitability both digital while power the the an expansion fulfilling delivered in controlling expanded also digital third and of business gaining and robust efficiencies our were increasing have leverage, our exhibited profitability. on uncertain quarter, the factory model. in we In we by demand. execution climate, and We of the macro solid Margin result the network our Even earnings cost

In and Labs employees leadership thank work. like extensive Labs to I in grow across commitment Human digital Semington to team am contribution HR profitably. our Agnes addition, far team has and executive thus to companies as continue I'd Officer. and and we team. have in will a Agnes new guide great experience succeed invest excited in to continue as our Proto efforts enable their manufacturing to Resources join our Proto Chief human resources continue our us our of for strategy make the we all and employees XXXX, place to to leadership

the long term. In network of market believe summary, factory outperform us outgrow environment, has Labs in current peers we and we enabled the the Proto over and will to offers combination

services revenue X broad-based, quarter from Third was our in and sequential many year-over-year growth including largest different customers. growth

best-in-class our cash weather volatility strong We are to well to flow economic positioned profitability generation. and due

share business as the and to will further reinvest our additional seek We into wallet. offer capture expand profits continue we to of

record investors. generated substantial revenue we profitability, cash to flow quarter, third improved and generated the return In capital

long-term our a value great We strategic for deliver believe we for over long the are term. shareholders will customers partner and

detail now financial as Dan outlook provide will on as fourth the our XXXX. quarter of results for well third additional our quarter Dan?

good Rob, and Thanks, morning, everyone.

month to we Japan. XXXX year. the made revenue our In Japanese we in last I'd begin, Before strategic September operations you last the remind I like all was decision in exit that to which generated

this the will be such, comparisons, year-over-year of As Japan. excluding quarter last

of results slide Our XX on financial presentation. the Page begin

a Revenue and year-over-year total order in pickup million, in Japan. trends July the up few quarter revenue to X.X% network came exceeded guidance first Third of through constant currencies that at weeks Revenue fulfilled due our $XXX.X currencies. in for in the of was range million constant after business, XX.X% digital the partners record up quarter, of in a continued and our $XX.X network through quarter. the the end third manufacturing excluding

Changes capabilities uncertain represented line continues broad impact in currencies with offer network our million even the range its macroeconomic quarter, conditions. in times favorable expectations. with $X.X to manufacturing third to revenue lead gain in share and foreign a of in Our

currencies. XX. Americas, is Slide year-over-year. region In summarized quarter grew by third revenue revenue XX.X% year-over-year In constant X% on grew Europe, Revenue in the

Japan, for The continued customers uncertain by due increased reliability revenue increase take times at in excluding to Looking higher in still our revenue offer. currencies growth orders Japan. lead X% best-in-class by XX% and driven Molding integrated part currencies CNC CNC conditions. Injection parts. year-over-year constant and follow-on Expedite economic excluding our year-over-year constant advantage approximately as through and orders was Machining and on largely of service. grew grew

year-over-year X% Metal grew Third revenue XX% constant quarter constant declined in the in third Printing currencies quarter. currency. in revenue year-over-year XD Sheet

Sheet earlier the the decrease year. recall, of response, second furloughed X% you'll revenue our X.X% Sheet experienced in signs We Metal in our the We unique developers improvement increased in quarter As third the we saw year-over-year. XX% as a revenue service headwinds quarter, served XX,XXX of sequentially. in product of Metal workforce In third quarter.

expand share our our deeper As wallet with unique Rob and mentioned, and them us strategically, grow of allows go to hybrid more revenue. customers serve overall offer

Turning of is second margin sequentially third XX factory our statement. to is over third income and quarter. gross non-GAAP -- quarter Overall, to the sequential second basis network consecutive XX%. this quarter detailed points Slide expanded the XXX the gross margin and margins gross expansion. Both increased This

sequential mainly efficiencies improvement margin increased On automation. was investments side, continued the gross digital driven in volume, and higher labor factory by

Our needed in as contractors manufacturing our quarter, the levels facility lead and best third well volume including teams costs industry manage while to maintaining times. flexing overtime

Throughout our On quarter from algorithms. to pricing to of margin the refine XX.X% continued and XXXX. XX.X% we a side, the have sourcing XXXX, second network increased third record gross quarter network in

is Our margin XX%. gross long-term and still XX% target between network for

well the administrative general focused by in expenses XXXX. Turning incentive efficiencies cost second sequentially million was compared driven or Total or offset in partially leverage were expense XX.X% quarter of by on $XX.X the of revenue to as operating and higher XX.X% Improved million expenses. as of quarter $XX.X operating revenue, compensation. continued selling, volume efforts containment to non-GAAP higher

taxes. to Moving

the non-GAAP third in in XX.X%, sequential earnings due our second to was an effective effective reserved loss. was in for Our tax primarily net to the tax quarter XX.X% operating non-GAAP in fully in rate quarter, the rate jurisdictions that improvement tax the compared decrease are

a per earnings share per to the compared non-GAAP $X.XX consisted quarter income of items. was of in few quarter XXXX. The diluted second share net sequential Third $X.XX

$X.X First, revenue million value quarter-over-quarter. was higher up as

profit items, digital leverage factory. The on remaining we With effective number a higher model, in our of get increased lower income. volume, tax increase significant rate was especially driven including the a interest and by

in highlights generated prior XX. from flow $X.X and from sheet $XX.X million Moving Slide to operations million up in on cash cash We in the quarter, the quarter. balance

to of strong very we'll any third invest growth repurchases. common climate, a cash economic million business us purchase to and opportunistically Our shares, shareholders generation we return in to and future exhibits quarter, in through $X flow capital In continue allowing repurchased forward. share the going

balance X million investments On $XXX.X our debt. sheet strong. and balance is and very on of XXXX, cash Our sheet XX, had still September we

which is our Turning now on forward-looking Slide XX. to guidance, outlined

impact million. We revenue this currencies. expect in quarter fourth to any between into At of million takes the growth to year of best season. account of impact the as midpoint, quarter. well trends seasonality revenue as quarter-to-date revenue holiday $XXX constant order year-over-year quarter $XXX the fourth difficult of the because forecast generate calendar the guidance of in and fourth The This estimate of X% our implies is

We million compared quarter to currency favorable $X.X XXXX. to the a expect million foreign of $X have fourth between revenue impact on and

and effective Moving of and XX% include per rate $X.X quarter of non-GAAP non-GAAP stock-based $X.X Considering compensation to to and our we $X.XX quarter fourth be We fourth estimate non-GAAP anticipate will quarter earnings add-backs million. currently XX%. between $X.XX. We expect guidance. the expense amortization between earnings this, share in tax approximately million fourth

to comments. back closing for Rob Now

Thanks, Dan.

total Our growth, gaining offer third revenue including our evidence is combined record revenue in record market. unique quarter is that significant the network and traction

addition, for flow cash and the manufacturing. positive consecutive digital company and margins most Proto sequentially improved Labs the In is quarter. profitable third gross and operating

focused value. and priorities on driving toward strategy, long-term which you. our on XXXX our executing creates shareholder We are successfully Thank

Are for ready we questions?

are. we Yes,

first with from Ricchiuti James Needham Company. [Operator Instructions] & Our question is

way, the the on quarter. by Congratulations,

just so more the of seen we I bit And at being wonder a prior have just regarding at if we sequential guidance, to I've But little question. speak talking may is got a the you a appears midpoint question the seasonality, guidance. years. the First QX could of a And than simply sequentially, if function it the then of I'm decline your this look and And in that. decline, be stronger. QX follow-up

the adjusted it seeing, CNC than a we trends from our were in softer why it's as agree it I that's seasonality that strong seeing the is and third to did quarter which to in I On -- the October quarter, quarter what the quarter. we're start was, order bit Jim, fourth think at last where the with Yes. you, normal guide little dip that, we did least as as rates early not

in think Got and wondering rooms And been And going you're and it. talked a than customers Can you customers. you on and that, about these you've little are I'm expand that strategic larger if bit with you successful existing little in talk making past. the you've bit about of a been customers presumably the perhaps more that into. deeper types why might you

to Yes, question. sure. do Happy for that. you Thank the

top X our innovative most industrial in we aerospace serve have we of those automotive, And we -- those industries, we companies, of serve equipment. the industries, In our many kind Fortune serve customers, XX% in those electronics, medical, computer So companies industries. or -- segments right, top where and the of in industries. XXX right,

Proto want of Labs. But time, we've for X for mix forth. part services, we've been use So in production with this the but -- comprehensively have customers just that right? and while from over our in of large happy heard prototyping, to often not served cases. they different them they're more decades, use always So customers of and opportunities in so strategic some period that

to as so And more is been them in order able different in a last be therefore, expand partner. And settings that. quarter, to strategy seen to and really core over good serve several I think some those our traction in to and that's holistically our to serve the capabilities we've years this more them strategic

increase And both we earnings factory. we've average heard several use Over the this on customers and using network saw that they're those the our across calls quarter, us the order the with you've ways. quarters, as last values shared in cases

to in our value offerings as we've we've for that gaining the been all to factory our investments have capabilities So getting adopt customers in as making well the expand of see the traction network in progress made been us. our and

and orders in So the larger services. those we from larger an production in customers really across increase orders multiple saw board

pleased the evidence So with of traction is kind gaining that this this strategy quarter. very

say presentation. just you and margin the you Did And this was? one Hub's the in may it. Got given what have quick follow-up, gross

we Yes, It is... did.

XX.X%.

XX.X%.

Greg Our next is Group. with Capital question Craig-Hallum from Palm

why just bigger and on Congrats that with internally just that's wallet guess here. those these kind some recent the of curious progress opportunities? thoughts allowing now doing expansion the maybe of customers of question, wins. on different win I the evolution I'm on up hear some anything success to you share? your Are following share sort of of you more to

Sure. out customers the Well, drive I our of and sales a those offerings. We of of we've more to And new as think a well. continued quarter these as with rolling the rate saw a In that. as take force invested we've in continued leader. things, sales nice we've our particularly in invest in Americas, uptick and our been all expansion, engaging the more capabilities, we've result and in to broader

is service? all Is And it sort CNC, concentrated Printing? it Okay. with offerings, XD specific more Injection a Molding, across of

I services. pretty kind And was the production where saw most think growth in we and say I larger more growth. we of across orders it lead longer So time saw broadly multiple that would offerings

in maybe in on level QX? had a to Okay. seasonal And wanted once decline significantly, to of what bit versus is up. quite stated. a it quantify October that QX a guidance in not seeing what you're or in the in sort then just because what but you're more just clear significantly you order of conservative able you is saw is added it -- on wanted to But as based follow-up And are I Jim any seeing rates there October.

to that the we're I macro as challenge, is QX which is trend CNC that earlier, changed pretty the October, guide and mean which maybe -- Greg, now the a that backdrop going using and season, kind our I it model using was thing our But I during of from at. and the was tech perspective, I said is only uncertain. is rate order looking order mean the that the model. it's QX with to what a holiday is right where start thing why has think an seasonality happen we're No. Yes. similar softer

with Our next from Drab is Blair. William question Brian

in a good environment. result Shockingly tough

Does terms So for a what third guidance to longer-term such like on quarter bit did in little had trajectory. the a did gross comment margin. that further you congratulations. margin lower the Can moderate? strong you reiterate gross be It the of Hubs sounds in you that quarter. than

So how quarter and a the also, deleveraging then fourth little in does that And look down into some guess, bit, beyond? with there's quarter. things the fourth I slowing

comments some Just margin, on gross please?

Yes.

pleased in that I range. had And and that the we've we we what that forth like honest, see think the would really adjusted markets I higher saw margin in right? -- that quarter model evolve out continue from margin which we perspective, for similar range the now, QX different QX than of is before that we want the margin. But macro gross we we there. where adjust range said, change So are would to maintain to made can QX. to conditions is to see with and continually we different it Hubs as of in so be we fourth before So kind from can we how of gross I And want a margin see changes coming the the results in macro very think we something should

period, that You're holidays taking vacations. the there's holiday the of factory So around and side, we've people inefficiency within a right on the lot got factory right? happens

to and with We augment more that contractors overtime. have

as margin down the we in And normally the fourth so come quarter a does. it titch should factory see

Okay.

the gross in fourth company down quarter overall So somewhat margin sequentially?

Yes.

Okay.

extent. you phase ask then up we is I metric lot. The little are higher for that question developer, that And one Proto and on more And obviously models And to developer to sustained the Labs a bit maybe to guess. stepped where count I'll significantly, build lot you do some comment per a be we're that if I'm see for a wondering use Okay. around to going entering people expect this per just is a developer, up and revenue down now, revenue revenue a just of could is sustainable? their

Yes. Thank you.

right I that. about you're think

our even forth, in relevant with I go grow think is us that showing developer were with by we consistent the for strategy, them and signs to decrease of and of product order that that a are company. be developers solely past, were to We our the we're penetrate we we longer revenue very a going count. to right? our less increase values probably count so that driven And primarily forward metric as term able overall. In this number customers because with quarter, modest we the able were given in prototyping average

primary were those customers. our really And so

As our of them our continues serving cases use strategy to so more our expanding in forth roll and production holistically, customers serving capabilities out.

somewhat able we're to expand that independent think I of revenue metric.

So I think it relevant and less will over time. less become

Ben with Our Battle next from Research. Road question Rose is

few to year? consumer in there A of you devices moving that did into I the give that can case, think case, questions. next how was out that in couple fact, some last if, and any you perhaps and sustainable was medical the you sounds why commentary as is like Is this it rebound quarter. those verticals know And that weakness electronics. called quarter,

So really Molding in Ben, medical. around the some medical in the with quarter-over-quarter on were medical of strength side, we Injection up

it still X% year-over-year. However, was down

Molding was is important improve it Injection but declining And did us well, slightly still So medical for performed quarter-over-quarter. But to year-over-year. it not computer us. electronics

doing As into new in you what business they're bringing medical help devices. for devices to approval and that our those quick developing We succeed imagine, and them with can turn production. those regulatory are at

Okay.

relative strength in and like a and from market was just therefore end defense? so auto standpoint, And aerospace an areas there

Yes.

industries us were automotive in strong and the the aerospace, quarter for So industrial.

give quarter contrast Is of as Companies particularly Europe follow. strength other number Okay. there? to that to the manufacturing in we this strong the a in was you any commentary can And there automation. specific

within the region. being mainly offer network Yes. by our expanded driven Europe's growth is

that saw So in growth we really the that Europe. drove

to the production perhaps are unique developer year with number the that was buyers in evolving? know number quarter, the this or last can then you And curious number I of in that -- had regard versus and quarter, how cite you perhaps to Okay. is you

ends revenue Brian on I per say as Yes. number about. No, the But don't discussed up production. as would talked developer, being, we have was your a earlier, indicator

So it could as that a more increases, and the will be in that are production sign we getting that you see that business, of quarter.

our is from next question And Company. & follow-up with a Needham Ricchiuti Jim

mute. I Apologies, on was

what You looking in the may possibly North struck That's wondering, not versus the for America. this, the touched as some to over to out North have more say not But Europe about didn't regions on any I'm I'm and will but a next by can in is and progress us through the -- preview this to growth be potentially you there the I'm the rate looking XXXX. revenue think priorities of you between one you we stronger growth the But and that what you several quarters past show is America year, quarter. to. two of might priorities main give But guidance. uniform going is be last want

Yes.

me answer and difference of Rob priorities. of a relates terms to rates talk in about growth bit it can So kind in the let as

U.S. acquired larger before is from the side Hubs, a Europe. As the in you know, we in much business manufacturing than U.S.

talked network, a as that percent disparity our growing, Europe higher the rates driven through growth of growth And the is we is is so about, business over between rates, U.S. between the and and by higher XX% year-over-year. the the Europe,

pass on. And so Rob, I'll

sure. Yes,

of So smaller relative strong those the is terms we Europe is very is industrial standpoints somewhat different us markets And good business see in and two of for Americas out, the to bases. our both with Europe long-term in the And regions. Americas. course, mix

Our objectives we from to a there's opportunity And there. long-term in a both similar grow regions. standpoint, are believe that

is Now the in regions. the of difference there somewhat in short the in environments term, macro two kind

have to kind to going the that near in of as we're so manage And through well term.

of the XXXX. you about months out possibly there to looking of away for end to of again, then, extent the to, you're some a how willing from couple terms thinking Anything priorities to the in the year. And lay you're of want out

budget cycle through are going We our Jim. now, right

businesses release. with budget, we're on the putting plans and So the at earnings we're XXXX meeting goals more for our And we'll together. the about next talk those

next Our Capital is a Group. question with Greg follow-up Craig-Hallum from Palm

I lead mix was hopefully of I'm if longer quick a did time It's you anything curious on one. I just if this, the kind a in versus that And lower-priced are year-to-date. quick-turn? changed you but missed the trend I'm not here QX. of know sure comment seeing has

category see I it the remarks. say would longer right? can offerings network specifically I the saw better. And us addressed grew that in time, right, We prepared increase. think faster the or Yes, our average, lead don't we for the in in lower-priced in XX% which you because that grew that than quarter, the mix offerings, are mostly

the quite the -- up gross side margin a of bit because Okay. on things. in I factory was terms the of mean

wasn't than was utilization quite it just other Any stronger if a recent reason bit it mix, So was revenue. why gross higher margin and quarters.

Yes.

that. driver do really I revenue saw of revenue. to primary mean pickup able was the holding industry on still a were our of Greg, quarter-over-quarter we that times. So leverage the off in And job best the costs we lead factory, in while that good meeting the pickup our

for more the that see portfolio. more driver. I that strategic So us main throughout some holistically quarter, customers asking the quickly in have things And customers those we the use say than of about were past. would as we third talked Rob the those in was mainly, did

in no more have questions today's will queue. We conference. That conclude the

disconnect your may lines participation. You at this your time, you thank for and