U.S. Silica (SLCA) 28 Apr 232023 Q1 Earnings call transcript

Good morning, and welcome to the U.S. Silica's First Quarter 2023 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce to you Patricia Gil, Vice President of Investor Relations and Sustainability.

You may begin.

morning, good and you, everyone. Thank thank I'd for joining today for like to U.S. us you Quarter Call. Silica's Earnings XXXX First Conference Leading the President call Executive Officer. Officer; today are Bryan Don our Shinn, Merril, Executive Vice and Financial and Chief our Chief

we standard remarks of our the Before you that will of forward-looking cautionary we to regarding would remind begin, be of nature statements the some like made today.

on risks are are predictions, about uncertainties. are based statements subject projections future which assumptions, certain other which current or statements, and forward-looking and Such to expectations events,

For release a any these update undertake of the risks and to read not uncertainties, you to complete discussion documents forward-looking with we statements. the and file do duty encourage company's on We press SEC. any our

segment income this net ratio our Additionally, net net leverage now net of Please contribution EBITDA call. public and Mr. adjusted full discussions we press refer segment adjusted and Bryan of turn margin, Shinn. to filings like non-GAAP ratio. margin, may debt contribution to leverage release call during the to to to our reconciliation over measures CEO, the refer and I net today's such a or debt for EBITDA, as would

and everyone. Patricia, morning, good Thanks,

expansion, segment while and sales Oil strong the Gas higher-margin increased robust, and with remained segment our positive continued and reported quarter, operating first quarter Industrial upon since Customer of of dollars as and improved rebounded margin XXXX. highest During the momentum, demand total results to and our level record build results exceptional in seasonality delivered prior U.S. the Silica we delivering pricing EBITDA products. its we adjusted contribution margin from

billion balance extinguished and debt million We further strengthening also $XXX $X.X sheet. credit in agreement QX entered concurrently successfully a into of our new

during I'd Gas Don our results. saw to in discuss trends like quarter, moment, QX review first, but more starting detail segment. to that Oil performance of we some and in the important with just a the on our Moving will

XXXX. in Gas Oil activity momentum demand and with dollars we quarterly the margin year through February contribution began as customer January, March and and carried positive of segment drove West and highest during quarter. quarter effectively logistics, The and demand strong continued proppant since this last-mile the we delivered completion especially in second activity, out tightness remained strong in supply and the sold Texas Very sand and well

Our continued expand sand the quarter. sandbox and prices and to margins during first

attractive and per at improved Our in sales sand loads achieved quarter. for and month production ton records White mid-$XX March, the the at contract prices for West March the of mines with Texas averaging and record executed Permian in in sand hit Spot for levels, Sandbox and another Northern customers Basin, we continued proppant delivered extensions prices. we

efficiencies performance Additionally, strong and accretive to segment supply were margins. and contribution improved plant operational chain

during in Texas the also damp We Sandbox for system our sand West new quarter. launched

we well, innovative our capacity and of performed section Our QX wet high sand X,XXX delivered existing sites. approximately loads the in equipment from mine

natural a and generating business. our of improved expected, a increases, the November support and through to combination the have gas quarter of great as We Overall, significantly rebounded price fourth combined costs. seasonality -- margins we XX our and start outstanding an and efficiencies plant customers' more activity Industrial input year and higher from segment, normal capability In delivered Crane grew operations. locations XXXX, our January the X customer costs Lamesa annual million in lower sand XXXX per damp at tons to quarter to year than energy our produce

contribution will and reduced higher-margin and attractive also market products which building sales margin to to several and Volumes this, were higher increased percent. contribution still lower in mild first accretive In cost, contractor finalized new we prices, quarter, current softness to glass margin Despite total the due of year-over-year grew XX% contracts dollars demand. products. due spend year-over-year lower be

White we infringing roof was patents favorable on defend property to our last multiple and U.S. we enforce will Finally, our extremely granules against week, Silica product that intellectual related to litigation verdict company European cool with favorable result Armor and continue portfolio. a a rights pleased our We're this across announced line.

For the quarter remainder the outlook key our of summary for this XXXX. on full finish and portfolio developments provide will my updates I in of prepared our remarks industrial a then and year the for morning, with second

X are, continue and our filtration base execute increasing to as of expansion products our such the differentiated cristobalite, high-value successfully first, profitability second, are such at key diatomaceous Industrials, substantially growth White and powders on growing business a earth as we which and segment solar strategy high-value plus ground Pigment and high-purity existing third, with addressable Regarding materials. new markets sales rate; focused materials EverWhite of advanced our elements, Armor fine fillers roofing reflective silica, substrates; GDP and of

tons diesel applied offerings as no green XX-year we We who cardboards, customer edible in XX% announcing other and June X continue incumbent a in fluid including roofing, X and year, for purchase of of in our agreement to play completing replace to selected coatings a used concrete purification qualifying at this oils will materials make many with another of to in Jackson, feedstock our production, by not-in-kind products pigment for strong these building products. the effect life such progress markets for noncontracted into for contract, of that round inks of of products expect price increases later achievements, the up than building products several go EverWhite capital executing production specialty of facility, which Mississippi project, across the capacity engineered QX customers expanded million over during with are recent areas a to which

flooring, products specialty to epoxy incredible coatings, concrete increases and of durability products a dioxide launching countertops. coating expected to provide incremental show, add $X variety at revenue finally, weather XXXX. pigment we including engineered upcoming to alternatives price million of in And round an titanium applications, different our is over This courts and are EverWhite be these roof outstanding of and ability new will

our now company move Let's starting outlook, to with market overall an and business perspective.

guidance sequentially. Last to recent EBITDA our company with raising year. our are increasing We more feedback, of on even XXXX $XXX company adjusted robust to strong quarter, XXXX, now for market we and XX% Based financial million. associated more by the XX% forecast improved visibility flow of to XX% contracts customer and EBITDA provided cash generation growth performance we XX% this with free year-over-year start forecasted adjusted growth than

details in moment, forecast. to Don end we expect leverage our than by will XXXX but further previously share substantially lower of the net a be

meaningful Customer demand remains is commitments continue flow. production and in XX% to Gas for effectively segment positioned earnings energy we with proppant sector to contractual at out the Oil capacity. and sand Our well in and strong to robust, XXXX our of remain generate expect strong cash sold

to focus earlier, We as efficiently continue we well, And remained will continued for our the sand of I customers last-mile capacity. expect sell and to for the year. continue in Demand to remainder operations and running while logistics we tightness SandBox on incremental Texas. as selected in mentioned strong production damp adding maximizing without opportunistically logistics QX levels West in

we Sandbox to support will also damp Beyond solutions quarters. working customers think other in wellsite coming our I our certainly that we're sand talk about on system, new

segment delivered in the dollars contribution and that around volumes first margin gas QX expect the quarter. we and oil we for remain to the Overall, levels record

to year-over-year and segment, Products growth the to end believe Industrial we we achieve that well our we to are and profitability Moving markets due serve. diverse Specialty that positioned strong

In from contracts. favorable signing addition, we benefits and long-term price realizing are increases, reductions and cost structural we are

and to potential near-term offset that any a realization now these Don will the our expect over Merril, in operational X% And financial increase who we based basis, of year-over-year market margin will our in detail. CFO, X% total dollars efficiencies. to efforts partial on that, quarter expect contribution to We of I a price increases On will results weakness. more the QX call improved Don? turn with discuss

good and Thanks, Bryan, everyone. morning,

we $XXX.X record in and stated, Specialty and EBITDA contribution growth Industrial adjusted revenue segment, in coupled quarter, reported QX, prior increased margin Bryan to million. which increased with product our lower and margin to pricing segment benefited our X% Compared driven in actions from Products pricing by total Gas costs. Oil expansion and the As

to contribution employee-related to the Depreciation, to in $X.X increased $XX.X quarter. XX% $XX.X Selling, overall lower expenses by $XXX.X total X% recent to costs investments. as in million. and for EBITDA amortization total increased Adjusted and we sequentially capital increased expense tons the mostly increased and X% the administrative first million sold and driven depreciate company XX% larger million general to million, depletion sequentially to million quarter begin $XXX.X sequentially quarter margin XX% decreased

upgrading million tax facility and rate In the entered into XX, effective consisting items. million our $XXX including March due was ended we discrete B amended loan of XXXX, March facility revolving our quarter And also part quarter, to credit XXXX. credit restated due increased March we term XXXX. a secured by first of also $XXX XX.X%, $XXX from transaction, as senior an XX, the liquidity the Our for million

excess adjusted used to cash our strategy sheet. At was we the of end levered, quarters below being X.Xx, EBITDA million balance of With on improve to net extinguish achieved sheet XXXX again outstanding and ahead our and plan. to quarter, refinance health on ratio we our Xx debt extinguishment, trailing the this of debt of we goal $XXX X debt. balance our Additionally, first delivered the XX-month of the

X have reduced quarters. $XXX million debt latest the this we Additionally, with in past debt by extinguishment,

the Now on of which a the Gas a operating delivered million XX% segment and X% $XXX increased on quarter-over-quarter million, loads with by the move Segment results. highest to for it been has $XXX.X Oil million increase an The tons, quarter compared Gas reported to compared of segment contribution XX% and a to was to me since the let $XX.XX, and increased Volumes revenue XX% quarter, our margin per the prior. increased of Oil and for total basis XXXX. review Sandbox segment detailed when quarter. fourth first ton X.X

costs. improved These positive the ongoing operational demand strength proppant, Northeast by in were in customer and reduced pricing driven results for especially

segment $XXX.X quarter. reported decreased compared to tons. Our X% with prior X% revenues and segment increase million, Volumes when the when for totaled quarter the of sequential Industrial the and ISP Specialty X,XXX,XXX compared the fourth Products

segment was increased were highest million, lower of the the to production since increases per ton quarter of ISP contribution a The basis in on sequential $XX.X sequential X% price rate for Segment margin costs. $XX.XX, benefit results and and the due on mostly which basis the totaled XXXX. increase X a

versus ISP contribution quarter margin it better that XX% comparison important to to last was up current a due in year, seasonality. is note the Additionally, segment be to quarter tends X of the which

to cash the Turning statement. flow

million, $XXX.X totaled $XX.X improvement cost cash and During maintenance delivered of growth we we impact the on from credit invested the allocating which The loan revolver for March and quarter end, drawn XX, fees. cash equivalents million of for XXXX, letters after $XXX.X cash credit. with and associated mentioned of first facility operations, $XXX million $XXX of facility earlier under At projects. primarily $X includes our million and the million extinguishment million the $XX.X flow had available quarter, company's capital

XXXX, we of and proppant Specialty customer oil diverse Looking base segment level contracts remainder in visibility forward, Products segment. sticky gas given our the we that the and high Industrial and have the believe for in of and customer the

forecast We capital operating debt. robust needs expected net with flow this and reduce continue cash year to to continue flow growth free generation to opportunistically fund cash

end spending, and and invest Our for current with intention to net forecast our an at to projects and million It will growth X.Xx. increase year operating full facilities to towards focusing and for emphasis $XX attractive our returns. year effectively the the we With we in around end million, accordingly supported growth. be contracts capital of regards we spending our with customer XXXX, managing capital maintaining our disciplined to high our on the is last profitable investments expect guidance may $XX capital expectation that of levels our accelerate on is leverage by

X% expenses has expense spending CapEx in higher anticipated revised and Finally, took down prior acquisition-related flat forecasted that beginning X% year. amortization depreciate year our and to given to to termination is merger the are the the in XXXX now year-over-year, be contract full to to during Full earlier down place SG&A XX% been due to X and XXXX year expenses and and depreciation, depletion be year. supplier approximately assets quarter primarily levels

full that, is the tax with And rate to for forecasted be year Our the approximately call to XXXX over XX%. I'll back Bryan. turn estimated effective

Don. Thanks,

goal successes of future XXXX to also new of quarter, the strategic the we here secure of a financial for These with strengthened expanding we key During we performance and in positioning please open another market-leading balance continue a our accomplished credit growth And and cash will flow XXXX. while record into debt through delivering visibility financial year you our for are questions. exceptional sheet U.S. the positions. that, operator, entering while Further, Silica results. agreement, strong extinguishment well lines earnings

with Our Stephen from is Stifel. first question Gengaro

I think wanted a about the through of just and think for I and there's Gas ask the seems of opening may We've to It a -- sand. bit curious, strong. talked Oil I like frac feels volumes you little of heard But have like the industry some fairly it seems out first about like thing it's it. was supply-demand sold feels to another Pioneer sort it stickiness pricing year, you mine. have lot just fundamentals tight,

of on quarters? get Just take your fundamentals next wanted where over look supply/demand couple the to the

market XX%. And of say, in think of be around of X% Basically, X%, drives may you're right, and we the kind this. up bus call the tight and right Permian So We of demand, I kind demand we demand, supply now. expect it, year-on-year, very we see terms up a capacity X.X% in think growth that think most Stephen. to

in go the pricing as sure it up through out in the here. the tightening significant a spot We've we year seen So market, in Permian. the for prices

significant months For per mid-XXs down we've ago. couple were been ton, the where sales of a spot increase and example, pretty that's recently, in from just we turning a

are definitely constructive throughout for that and So XXXX. will up, things be us think I tightening

more talk SandBox. on you bit And can a little the

a prepared gains related? record you else said what there demand factors as Can the that you and -- think was I your quarter. that or simply remarks share -- are seeing momentum March into were month in in had obviously anything second you is far behind SandBox? you're other as Or

smart of do, team we've this the jobs. a focused demand is tried the things. has about there's industry the strong. are to that out Certainly, in been is frac on serving throughput highest I But So think couple and crews we doing what really the

So where for example, the not of X sand difference, somewhere other or And simul productive annualized look XXX,XXX fracs. use on million million to tons. a example, might X.X the an at use are those crews that as crew doing XXX,XXX are basis you if simul frac might between only tons for that

crews. from serve to we a standpoint, make given our the on So more of that, it's at profits the much end day, SandBox profitable throughput higher throughput

we that. to increasingly, there. So out the recognize see think And fracs coming I that simul that focused customers high-capacity best is are the market SandBox on in solution for the we really

market frac a player is are sandbox largest the not the needs, the And trying deal. then one doing When the of things they're own seeing look just integration at the pressure we manage front, me. that sort all? the But you as to well at U.S. not, their some So big and of including of right? on change from dynamics the sand more it's market maybe pumpers and/or sand

Stephen. really aren’t We at this point,

integration, needed is serving I sand customers, of part those some they us is transportation. even like from are well a the all of companies those in some think still are doing terms and though still key but doing of SandBox of folks We’re as what

next question Podhaizer Derek from Barclays. Our is with

Gas guys for So Oil of proppant mean, the inflation. far be are service the everything some what to the area E&Ps your relief that got companies an based this seem and we doesn't both see earnings between and on is case. season, poised in we've and I numbers, in you commentary saying,

the actually what could service you seeing? the help from that you're in out comments just hearing E&Ps companies, reconcile maybe we're So versus market us

old up go interesting people tell them if X touch different story blindfold a all of have it's they elephant, of reminded tell different. reach really and I'm of looks and sort of X to you sort or dynamic. it you the And Yes, an experiences and

there's an think right what the in service of is customers our some our are excess bit of crews energy particularly -- now. the of seeing companies Permian, I frac even company and a

sand. that been some sideline the equipment so contracts and on that's And buy there's own to the frac equipment have put that companies

their using everything they're necessarily that is so contract. not And in particular

So sometimes excess and would plenty look they there, sand. of that say, out sand there's at

amount is used industry in But the the the going reality of is up. that's being sand

So where in sort in some pressure space it's perhaps to now, we their think certainly elephant, of well. right energy we oversupply know some as of perspective so the the of just are kind that's are analogy, companies particular, looks the it I dynamic pumping what odd elephant and back the getting of like. kind But

helpful. Got it. That's

top another So all year. off the we've start The of on of have like after lot off the came drillers obviously, a the side, here rigs capitulation reported, count. X in at been come XX seeing XX. rig rig XX the feels

So XX, when many hold up I off the question guess rigs the is bottoming struggling with XXX should around completions we're why having are come this possibly. range investors of upwards out

E&P heard out about in We the one XX% of rigs the Northeast there. large talk coming

talked in You improved about Northeast. guys up pricing the just

on you're view that up should completion year. we in all the half know about rigs half? but come of of think back dynamic the and completions in these coming why off should your I Just hold more the and to back how contracted,

margins think of We for I even customers wanting is as signing couple sand. we're in on more of drilling contracts anything signed disciplined those some new opposed long-term to White the new a function new signing to of We folks rig and So contracts again, area be sand, contracts Northern else. what holding QX. seeing a see up here for

plans their are. feels reality different. to we're our for good intimate have and with ground us the on customers again, And what So pretty the sense very a

energy the in in remainder recently, to planning do year of be I So more an conversations just some private they're out there. seems also the perhaps necessarily being looking we're seeing of the at for can't increase add the what's significant I what smaller But than much to companies industry. know reported speak for

it be looking year. We've could of well. XX through do X small part as of energy the more work to out that the So to there talked companies that recently are rest

dynamic that all of perhaps on the is being So who missed some report by this. -- folks the

Got drilling is or X just to and as those completions more completions? it XX work, it. more And

both. It's

Our is with ISI. Samantha next Hoh question Evercore from

of a super really curious really I as to how of Congrats has that with my contributed like this terms damp system. down question quarter. I'm on to I SandBox really us SandBox. slow just guess new how break the in walk more of? kind do of the maybe described you Or kind it what for consists through much productive Can mean, this offering delivery quarter? you like us

Sure. customers some sand. It's Texas in using we we're are our by quarters that question. A great Sure, damp couple And a for ago, already things. of looking Samantha. few approached were West of a

Lamesa second was got jobs, we've for first between later used build more their the we that drive help more a tons supply, per up was some pulled to what we that Permian, year source additional to than really wet X the from million The big that of And is and Crane are of sand realized frac that jobs capacity and just simul suppliers. sites in X backstop excess sand we a the reliable for to collectively, of large stockpiles on. existing capacity

site, thought as offering. into working realized damp And about potentially we on, we we the to then way SandBox our that we best we get the that sell could started what well out call, So to the industry.

modifications have feeding but of -- some on other has then hopper done into lot the that a terms ways, blender and be there's of the things that site. it SandBox it So to like it's normal in a looks in

our QX, of of sand industry. equipment was we But all delivered fracs in very And jobs up QX. Sandbox system offering pair industry. we our the capacity and nicely of this lot the out other X,XXX a the in all, it this when success than that with damp met being were out well of we done actually with designed more in up And with launched in found that kept in loads product locations. our some to zipper simul the And high-capacity kind we've handle and to

And of so you it's will, customers. kind if turnkey solution, a for

So oil a nice I to of margin contribution profitability. X to million terms was gas in worth numbers think and it's And in few our of from there plus dollars QX, be going system we that which haven't a offerings, plus system. well the you'll probably quarters site yet, couple other But I the which of talked think here. see about we coming will this in

be Gas that Oil our You tailwind in beyond. here see business of and a XXXX for all nice and

to and you standards, know is news of guess there past an thing forward silica you talked about emissions ultrafine us of out curious initiative like curious retrofittings I'm that. give to guys this doesn't growth gas which like diesel your that of opportunities? curious hearing just other you could update that feel is that But an emission maybe Looking I And tail there. diesel and my terms about if you apply kind I more I about Europe. green about in new just I really have in a emissions EPA update the on really the on can for give pipe bunch in was if guys. our us to

Sure. Sure, Samantha.

the are world specialty with that who what we as ultimately product, there. can I place turns only that make to know, a very the a far we and the specific cars recent in a have that diesel as over we're make in of are in So in product into it's and filters Asia new standards specialty ones Europe silica a supplier contract for this some that meet

so that And U.S. in but we yet, my sell the could knowledge, that perhaps to be coming. don't

of of So that product really the of us. out silica just mine example of we product earth material basic diatomaceous as is an that to might more or that of advanced an opposed kind sort for be some that products But make ground. it's we an expansion the the

opportunity for So I think us growth in that a future. be one probably will the

we into expansion announced earth of standpoint. where we that products call sell the were site also an there. produce our that diesel, on a Jackson completing go of last the in earnings just diesel the play And the terms we actually Mississippi green green from chain we In diatomaceous

see profits definitely processing a streams the case, we'll up that, final that products. in aid clean And not coming that the are we're a both diesel, additional of we're of but coming think I from filtration ingredient helps from those in So that kind in. actually green

So oil if of you there's of from be and and things at look collected how other a all that be lot cleaned of key waste gets alternative has That like part that we're works, product, that. to sort can that processed McDonald's into diesel a restaurants, up process. before it the

that. come to more So on

I I over think we'll triple different this are there's lots the next years. the see in industry of of that investing diesel And around or expansions the the in country capacity probably in double few planned green processing. terms entities think

opportunity So use. that to that to continue for should bode grow our well end into

Great.

Just if I can squeeze one more in.

that a new I It You customer, of volume does minimum? how Is X terms mean, Or agreement? that tonnes. building million seems agreement that like sort mentioned pretty that the work that of good from customer? tenure product with the in a

Yes.

particularly facility to expect the specifically, I about But contract, great So is building I too course talk a reasonable next the much decade. next like a right it’s what but though, can’t of over site. a about really would that, our the contract outcome that’s they’re long-term I

a the we've come one industry that kind years literally past seen seems stream in customers value in that's So from our build that would it glass where furnace of our a And for de-risked glass we of sites. -- like right to next really us. see

to sort for and the us. the do business as talks this Gas And is speaks it term the And generation long that on cash industrial trying side of to Industrial deal well. side, We're But for we also comes a the business the sure. great consistency and from but in on just for that. -- Oil always lock like our that

our of stream So over feels it like it just earnings derisks time. kind

Our John Daniel Energy next with question from is Partners. Daniel

Two hard. quick questions, not that

seasonality how Can the those any? is that contracted. much -- are say The first into of XX% one might volumes the built be contracts, you that if

think question So and asked would it's a perhaps typical I first the right? you'd I lower. lower the seen the that of I to will quarter now. quarter year, if kinds we've some variety have the years reasons. of right of out fourth but for that ago, the oilfield, we recently And a that think in talk But all budget said exhaustion taken of lot of seen We we've used different seasonality there. about business me things be haven't might kind a later to be couple of

a So I years. things prior bit seen expect to more we've than flat what in would be

I look Got that said had million your to think X, it. X call capacity into if right at be And could years, wet you you sand you you crystal for ball, X, that? X of, tons it, the think what's number

So that is our installed capacity right now.

I we’ll think, be put So unless over plus. tons X bit planning million tons, do, million a little we X investment in which to we’re not

sand many as people is the your section, this, built section. than – know section wet build drying to typically, mine you when a higher So your capacity when a like mining

the of when wet site. we’re taking that Thanks, capacity, all doing some so And is just built kind we if existed you John. will, of basically that

[Operator a Podhaizer from have Barclays. Derek do follow-up Instructions] with We

generation, cash the the to you back $XXX million. lifted Going of guidance

quarters is ahead of schedule, going by the the Your X.X X you're end net down leverage year. to of

I if about? think potential generating target And us for returns future as think you as cash update wanting what have year next on to it problem a XXXX Maybe the means you've net debt. for far target to this shareholder talked all have. is about good just just and

Yes.

we in look, to of be X.X to going somewhere X.XXx wanted the into So neighborhood XXXX.

I think I that’s a saying think X.X, little we’re going to quite and surpass my that frankly bit prepared remarks, in conservative.

to continuous improvement retain. leverage of the amount right to projects, would we as XXXX, our growing shareholders. that making start that growth ISP going we’re going look amount other into to we’ve a that, of returning and there’s into capital So could – certain then the cash at got of we’re And which we sure include projects business, capital after uses look

with question from a Stephen have we Gengaro And Stifel. follow-up

a little talked update segment. bit So know us you can -- about you the ISP and I

map but of for, kind us laid had 'XX, introductions, product give impact traction sort of of I pieces, your 'XX? new the update and how know targets an a moving road I pace You've just lot are of on think, you've the and this there's you on of out the -- towards you can

Stephen. Sure,

our like targets. to And track I announced right we’ll this we what if feel what at launches do previously. those year, we’re I product you think had plan and hit So we with on look new

talked about of doing our capital offerings, on we our and DE offerings and last really our some some we We’re of expansion some ground fine that the sold-out high-value that for fillers silicas have. powders, call earnings

expansion there. So capital

think are see. based on what I I can track those on

We’re expansion our we Millen, and of call, on Georgia site. mentioned doing big at the that undertaken our I with there. also, think earnings milling track capacity on we’re last vigor as We’ve a

EverWhite kind things prepared like looks to we’ve market. a And out everything some from we to of some that the that So up of our larger will big a got I targeted get some we’re product qualifications coming uses, in the other new I it’s receive with products, we’ve and of mentioned in got the out line, that here some customers product remarks on say customers. end particularly path. launch of right interest getting lot

into coming So I focus. really things are think

by flagship And customers. need of up of quantities industrial of bench near out year, Illinois we trials to new one innovation scale that’s for is product us product that capabilities I’m that great give the larger the to I’ll will center what of up located things but kind with our production there. that some our, site scale the lab, additional really look have about in our products And opened excited that lot of are a really we make call, will in end the

exciting lot stuff pretty So and things of from going track kind progressing on of on perspective. my

have closing question-and-answer We of back session. management conference end to reached the the I to over would comments. turn our like for

Thanks, operator.

of thoughts Just maybe here. a couple

and be deliver quarter business and our As marketing you more very further again flow stay call giving we we value ahead, our you our today. sheet forward segments, who with look cash updates shareholders visibility and and care, all will confident we strengthening look that stakeholders. capital and talking remain other Everyone, thanks some And next free industry-leading balance joined to for safe our take substantial well. commitment for everyone discipline, again to

Thank you. This will conference. conclude today's

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