Rayonier Advanced Materials (RYAM) 6 Nov 242024 Q3 Earnings call transcript

Good morning, and welcome to the RYAM Third Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the call over to your host, Mr. Mickey Walsh, Treasurer and Vice President of Investor Relations. Thank you. Mr. begin. may you Walsh,

good Conference again Call and Quarter RYAM's XXXX Earnings and morning. you, to Welcome Third Thank Webcast.

our Officer; Joining De me Finance. Marcus Executive President Lyle are Officer Moeltner, and Bloomquist, our Senior on President and of today's Vice Chief Financial call and Chief

harbor available remind include release earnings safe you laws. to today's we will are that statements securities materials website made at the last evening were in of Our our issued ryam.com. I'd forward-looking pursuant presentation and and federal on provisions like to presentation,

presentation Our earnings forward-looking the results the may release make. X as our materials. the filings our referenced actual we statements well factors, SEC with as also to cause from Slide They're of list materially may differ some on which of

certain be these considered non-GAAP measures Slide alternative financial will not Today's provide as We Slides' measures. non-GAAP their reference presentation. but presentation of included GAAP X information XX financial GAAP also investors, measures measures on useful and XX believe to comparable to measures through presentation. our on of directly management are measures noted for should financial our reconciliation of an A most non-GAAP

to Lyle. to call the I'd over like now turn De

After I'll start dive into the business thank Mickey, for good I'll remarks, to XXXX. who updated ongoing guidance will the actions will on Marcus' Marcus, initiatives liquidity. and I discuss Well, our quarter before financial segments, overview company you, structure for of recent with morning. turn third outline and Afterward, XXXX. passing to and it capital

cash Margins stands million, XXX% adjusted while QX marking executing initiatives. robust increase adjusted free reaching XX.X% Year-to-date, substantial a or in flow strategic million to highlighting $XX nearly cash delivered reaching year-over-year, with million, In we flow generate ability $XX performance doubled QX, from our at last year. XXXX. $XX EBITDA

] inputs. rose costs In prices specialty XXX% key million and for and by decreased volumes the segment, Purity or $XX Cellulose higher [ High by EBITDA driven cellulose

commodity down nonfluff in year. exposure the quarter, Our of X% last revenue XX% from dropped to

driven The volume by High-Yield Paperboard segment million sales decline increased and prices productivity Pulp EBITDA by cost. prices EBITDA our a improvement higher sales pulp reduced offset partially showed decreases. though $X segment saw a $X due to and million Meanwhile,

by compared million, the prior expenses driven by variable exchange higher unfavorable Core period, environmental foreign and $X expense. increased to rates year compensation

specialty Our overall cellulose success this in core segment. reflects performance our quarter strong

We towards mix enterprise. continue specialty the and our on to product while cost reductions sales, production focusing across shift

managed, emergency from The our the digester XX. On October and team facility. Thanks local XX, full operations B we our at in fire encountered isolated services, A Georgia our we areas. were instrumentation effective and incident Jesup, the compromised power was October an and lines response and to by made, swift mill effectively and primarily resumed repairs fire appropriate

expected over the operations. be are long-term and will the Additional couple conducted be repairs of into fire Investigation the capitalized. minimal ongoing. next to We is anticipate of years to impact cause

Currently, $X we by XXXX capital. impact $XX additional in to with an EBITDA the million million expect fire [indiscernible]

insurance our ongoing, deductible the mitigate amount and claim our financial to interruption to our -- under of have insurance, business full work casualty on is exposure includes on carrier put incident. While carrier claim million $XX which notice this a we a property

in us the business provide on details will and milestone we our by flexibility strategy. to invest October long-term execute achieved to strategically providing debt growth agreement. On our new key deleverage Marcus This opportunities. XX, a successfully refinancing allows debt, new structure additional

to holding EBITDA the $XXX our Prior track at on to our earnings fire, for Thanks million to minimized we our guidance impact guidance team's year. to on response, were million. are the swift raise the we $XXX EBITDA and

$XXX with full increasing year flow to free million. adjusted our million guidance are flows, we cash improved into visibility Additionally, to year-end cash $XXX

Marcus the to over quarter it financials. over go I'll Marcus? now to turn

De million. products. increased $XXX of increased sales increase sales, XX% by HPC by with you, volumes a were million XX% to pricing $XX Beginning commodity Total segment Thank CS sales reflecting or Quarterly sales. mix a HPC decrease Overall, CS higher X. XX% flat, a our Slide partially largely in on in Lyle. offset due to XX%

of of HPC supported in and a factors: rise customer in sales ether by plant. sales uptick indefinite XXXX, The CS The of the destocking, bridge plant from volumes late the a continued the was closure several Temiscaming in competitor's suspension year easing volumes prior

million, the an and by the quarter for $XX costs. EBITDA energy were the of of for EBITDA reached decreased benefit million, $XX million margins due HPC $XX quarter sales green $XX mix rose to of key XX%. enriched including million Other the segment primarily to sales. sales for CS input

Slide of Paperboard impact driven imports decreased in $X well to to pulp million, costs. segment million as segment for declined X. Sales competitive XX%. margins by EBITDA as primarily Turning demand. European lower EBITDA mix activity higher and the the million from to increased the for sales $XX due by $X by purchase this to weaker reduced segment

improved Slide prior to Pulp a increase in XX% to X. million mainly prior EBITDA by in sales prices, year, EBITDA in volumes the $X segment higher a was Sales costs. the due comparison and offset sales pricing shipment decline compared due segment on quarter, lower increased to X% partially to million due the as year Turning timing. to High-Yield $X to by million where negative to generating the Segment $X

Temiscaming quarter. as This suspension in charges X. for million the million. impairment HPC indefinite $XX incurred third quarter Transitioning the the to $XX consolidated as loss The to charge line of of related well million to Slide amounted noncash includes $X a operating suspension the

operating HPC, offset impacts, impairment pricing a more The the product and suspension volumes. quarter Pulp income of segments both the mix and in $XX million. and CS XX% onetime changes for for improved than CS these higher reached overall Excluding an benefits grades, High-Yield increase HPC favoring

exchange and rates unfavorable well higher as Other cost by expenses environmental foreign input benefits, compensation. costs including offset were reduced key as partially variable

at $XXX covenant rate debt at associated of million quarter Net reflected reduction XXXX. the the Net term $XX to and reflecting financial ABL our million million, Net Now quarter million. as million our and $XXX million, closed million X.Xx. from cash, the debt period ended the with available from further $XXX same to under $XX the secured Liquidity $XXX fringe facility. facility $XXX in secured loan Slide reduced ended of in a leverage quarter vacuum let's our at turn X.

support $XX $XX capital million. financing, the of reached million, allocated capital our Year-to-date strategic bioethanol with of Net upgraded CapEx and startup towards the of totaled project system. $XX strategic Tartas the ERP to million implementation

on forma Slide pro company's The capitalization set is out XX.

that term combined to the company's refi and our used Lyle, lending De The senior strategy. term our enhances successfully Management. secured existing am senior XXXX cash and facility, with Capital term execute completed financing the our by as sheet, flexibility business balance Oaktree well secured $XXX existing fully strengthens loan company and will capital to repay and be our notes and expenses. announce XXXX new we fees by secured The long-term financial have million pleased This our I from refinancing to -- managed redeem secured loan cover-related as loan. previewed in structure raised of As notes RYAM's

is also $XXX plus with lending we aligns current refi, priced million secured our X%. that better facility sizing new The initially the commitments asset-based this at business with with conjunction SOFR for facility In a X-year portfolio.

the ABL million X, there facility, had we letters quarter the were in existing no of borrowings issued. end outstanding the credit of of and As credit on $XX

based to years The which adjustment loan spread initial X interest net is debt of subject X%, new a term rate in at matures secured to consolidated on ratio. of and accrued plus covenant SOFR our

the us provides starting deleverage a loan repay enabling debt to proceeds. sales, are to asset special provides in months, loan acceptable at Importantly, favorable. the prepayments earlier the flexibility payment allowing provision also term disposition asset make us with conditions to from market XX us The if for premiums

pricing that loan's leverage potential strategic positioning provides from spread, the interest our It This profile in in biomaterials company's structure while fuel benefiting to of the for obligations our us rates. reductions flexibility the investments As to meet further rate net our also declines strategy. position. make will us to grid allows benefit improves, growth interest financial the allows the

to the and related senior million, term XXXX, outstanding million transactions reduce through debt we have repaid other $XX year-to-date. retired had market total million excluding of an notes debt for QX, public fees set For In and objective of an we $XX expenses refi. by $XX additional

addition, In capital allocate $XX to million to of we activities. refi chose support our

to value for Going reducing company's to committed levels shareholders. forward, that RYAM remains strategic long-term confident create are will and initiatives the our debt continue further

liquidity remains strong, has LTM Overall, and company's our adjusted reached EBITDA million. $XXX the

supported initiatives performance strategic has various business. Our the improvement across positive this

executing has we our the been commitments the successful for our are -- positioned to business well completion continue capital refi the the company's strategy. and and strengthened structure of long-term ABL facility, With

De With I'd back the that, turn call to to like Lyle.

Well, Marcus. thank you,

Slide to an XX, attention I'll update on our turn where key provide now XXXX Let's initiatives.

to year our refinance XXXX this they notes top Our objective senior XXXX. current January became in was before

As take time. to improved to Marcus providing advantage detailed, metrics of we've strategic the option the executing refinanced has flexibility debt, continue us with while this plan successfully preserving credit over our

initiative business sale our balance the is earnings Another by year and sheet power this key to exploring cellulose demonstrating optimize of core noncore potential businesses. specialty our our of the enhanced

demand supportive allow. for EBITDA through market September, XXXX, in specialty Our million contracts where our cellulose our specialty announced value segment our of price the last effective increase In months for HPC with to $XXX adjusted up reflecting immediately XX products inherent was QX a XX%, a we and dynamics. products, supply

our in XXXX We are with about specialty pricing discussions currently customers.

to and We Paperboard assets. a our of remain High-Yield sale open Pulp

our we interested, meet active there While are not parties expectations. offers valuation yet received that have

that the ensure businesses. inherent flow with these to transaction is free priority profile Our with cash any aligns strong

and suspension we year. to Temiscaming announced end, HPC wanted April exposure also in this the operations the plant. this We earnings indefinite To volatility our commodity of of reduce

percentage the last for down same year. was impact last of XXXX, to to nonfluff of a the QX losses commodities of The planned commodities from and from period of result the year. changes is reduced XX% financial suspension. EBITDA expected no X% anticipated be as are We forecasted nearly total the As proceeding suspension suspension, half in the there nonfluff revenue from by the

this XXXX through project now project's in line. is most been initiatives exciting detailed commence of this that extended We which not nearing biomaterials to will due has time plant. One completion operations is line to the The the of late involves permitting of for process. the We're year addressed time participation, permitting our strategy. phase the due expect uncommon Fernandina our bioethanol the extension administrative being public engineering and

will project project sell July Company. regarding XXXX. Power development Our Bill green and shared power on biomass-derived Jesup in certified agreement purchase AGE be information prebiotic progress from the registration animal facility a is FDA. The our awarded at Georgia to was to feed recently additional of in product the self-grass electricity in this is phase, the waiting

Finally, both we U.S. tall France continue and in projects evaluate the crude oil to

note As green make a current announcement the expect final on capital strategy, projects these to significant -- finance we -- regarding our in to help quarter. significant biomaterials a

Let's Slide for guidance strong offsetting performance specialty facility, the million to of Despite isolated turn million to $XX our incident. our million. underlying impact $XXX reiterating range the EBITDA business impact fire EBITDA from the to XX. we cellulose The of the this are in is of our Jesup largely adjusted year be at the $XXX core

business, results well confident position improving are cellulose improved due quarter fire, will and us demand strength specialty the core by expected in moving fourth continued we our forward. softer that to While in productivity the are driven

by will Pro $X be be to new $XX the for quarter $XX related capital expense last the in the of fire. the includes the interest is projected holidays. made cash Cash million. January timing at for is just the forma approximately year timing expense in for impacted early of to payment This $XX term million loan including around estimated a due the fourth year's XXXX the to Maintenance million payment over $XX million, refinance. CapEx million for annual

plant refund sale duty is as at We change are These received ILA $XX well capital, supply port They also of suspension. million from lower to production offset Temiscaming October. now the and the the in better-than-expected from Helene the previously benefit of lumber volume million and IS impact by from strike disruptions the Hurricane will expecting be than $XX due tax $XX HPC working million a a as Temiscaming bridge which partially gains anticipated rights.

toward In our summary, to to for adjusted cash and year. be strategic guidance million $XXX we allocated continue investments. million funds the $XXX free flow These increasing will reduction are to debt capital

volumes suspension We closure, grow between anticipate related prior plant XX, I $XXX prior potential Sales increase Cellulose our percentage to and dive Jesup fire. sales million. will Temiscaming value million compared our from to each prices the be On a prioritize plant year as a range for XXXX volumes businesses. will expected the of deeper $XXX destocking the offset single-digit terms, performance continue to into Slide gains project We competitors' in EBITDA of the are we over expected to High volume. specialty bridge partially in segment ethers the of XXXX Purity for HPC cellulose low in to modest cellulose uptick due reduction specialties our contract and acetate demand. year the indefinite and by changes These to by

increase products compared Sales decline are to XX% while XXXX products fluff nearly steady. by projected remained volumes for Demand single-digit for by percentage expected prices RYAM's high to year-over-year. are sales to commodity a

almost sales a expected nonfluff commodity strategy by by For though mid-single-digit nonfluff consistent sales with volumes reduce prices XXXX single percentage exposure. -- are commodities, average over decrease expected levels half, our to to to rise are

Pricing a sequentially. with is forecasted for in volume increase to slightly modest products commodity soften HPC all seeing

will On we partially lower driven overall custodial cost Temiscaming suspension. the expenses the maintenance and Jesup increased costs fire ongoing in cost savings by These offset be recovery HPC anticipate site XXXX, by and key Temiscaming costs, improved and expenses, front, logistics costs. productivity input reduced

repair volumes XXXX, to are growth specialty in we quarter, resulting to primarily adjusted due lower In biomaterials, fire. the substantial to Looking the costs in ahead year production expect our we fire making be EBITDA sales to objectives. and cellulose lower progress the and than prior

committed to to facility several in investments Tartas remain Our producing projects. availability. feedstock energy markets We targeting green strategic is renewable and key bioethanol

expect initiatives in we for announce earlier, coming the stated financial As to plans these quarter.

we inventories Paperboard, expected approximately sales achieve prices to $XX XXXX. reduced. to in are QX as expect are are increase Regarding of EBITDA million while in projected decrease volumes Paperboard to

prices increased QX material rise are pulp due costs. to purchase raw to compared to However, anticipated levels

[indiscernible] the we EBITDA factors, supply to As new a these decline in result with quarters competitive anticipate market entering of persist as in coming pressures XXXX.

is shipment Pulp ongoing to expected XXXX. due to to significantly, timing. prices, lower to business High-Yield sequentially price from increase volumes Our EBITDA pressures capacity driven in China. the breakeven prices expected pulp are achieve by sales pulp in expected High-yield stranded Despite are decline

to However, low likely the drive persist, the expected sales in loss quarters. would which coming prices business this are of EBITDA

In to We subject QX, expect XXXX costs our are $XX rate expected corporate to corporate approximately cost currency be million. fluctuations. decrease, to

The trajectory margin the decline. the range, XXXX. In ratio XX, of EBITDA leverage products. growth remain specialty driven anticipate by net Slide we and for where at leverage We before towards the to turn Let's achieve margins sales net we secured improved mix we X.Xx our confident net that illustrate be our covenant XXXX, the our to XX% of will in X.Xx well XX% the EBITDA. of forecast leverage targeted end at stands year to

to With questions. that, open operator, please call the

[Operator Instructions] The with Daniel first Sidoti. question Jacome comes from

benefit in on market in was clarify then in just hoping quarter. quick recent maybe going any stimulus just exposure the market what's you coming over quite that's be demand so. Europe since last maybe seen see to Obviously, construction slowing appear And you're your update a great months in from on that government China. could country? And to we've been and seeing for what up Congrats if end the on X or you another in to your sensitive equity weeks, I

part couple to China. to ] around which that first does [ your points I'd But I of our your is China. that. Taking is Lyle. It be De equity with seem what is some comments. sensitivity of make would our about to to This a be concern the structure there agree question, would

exposed like some sales around -- also is enterprise and High-Yield a couple of also well. of our as primarily And forth. to XX% but there commodities First, acetate, about our exposure is is Roughly facts. around this of China. And some has our just total so Pulp viscose

in so what's what of Talking respect in acetate their -- GDP acetate, to of that day, With production China with cigarette on one makes acetate there's to, obviously, China I whether a and into between is goes consumption. at going respect about tied demand. each those on stable really with our disconnect pieces. goes end very going and to the most acetate the And it's mean our of tow sense. some into China,

stable. that expect be we to So

already, -- With as respect strategy reduce there. viscose, to exposure to our I the our mentioned is

we've But so to down it's that as single a very revenue. seen as low forward year. And versus forward, well. CS of around significant And somewhere our in growth reduction production continued last going going we see in terms see digits already decrease we'll

doing mentioned call with given high-yield pulp on just it respect have has I and Maple get is concern move been between that that to, and to -- with for then call China value the one -- we're we Maple getting that the our capacity of are finally, exposure globally And area trying the product And we're XX product High-Yield [indiscernible] competitive stranded in and what is products is out our extract Pulp there successful to to sell and we our pulp it, pricing. increased impact Aspen respect and we've there. trying

area out Chinese into weak. of of ethers say some coming terms other kind market ethers exposure markets, indirect One China our our some more I We is would do when of important is of the see domestic in principally through Europe.

other the as on getting in the well. defending do to pressure it's out back of now, right market share been successful impact very some see into bit of exports we've our in But of the little of ethers a of markets. some there. China maintain we that. But but we're as fighting bit well as our little share a market there's Europe So And -- by of

And Daniel, it's Marcus.

exposure very stable, XX% highlighted, that's As of De that acetate highlighted. our and you Lyle is

sticky. pretty [indiscernible] so just So

remind question second Daniel, what of part was? me your you your can

quick a just was one. It

the seeing just in construction Europe market could what in ethers end you're you update market there. and the If

And different I Right. One put a seeing a restocking. X for is think We're can of bit little buckets. demand in think in uptick be I ethers. into that rebound

a So in the build inventories we're there. seeing

I the think, our demand, shelf, so 'XX overdone. consequence, think the a to underlying But in saw And an destocking it's was modest. but in we're probably restocking as activity customers increase seeing are I speak. we also,

continue that as will that that, interest rates hopeful underlying -- demand increase. demand We're decline, the to

this surprised morning, just was be -- point saw terms right activity one that would seeing the if us continue for into to I But on this upside favorable manufacturing will continued. improvement So that index that up, again, again, that, of And 'XX. German to we that in demand go very now, out production the modest morning. and as expect improve we're

Matthew with Markets. The next from RBC McKellar question comes Capital

Just follow question there. Daniel's wanted on to

XXXX? You China, the talked and holistically, environment, what other heading about color and around a into more I just demand bit seeing particularly ethers CS you're provide maybe on acetate you little in some but could for guess,

one in answer it's Again, I about and forth. early another the same along stable, for CS, China, themes acetate me earlier be know call. was will relatively with generally the other to Thanks you. acetate as expect it's respect tire talked joining stable Acetate, let and to going MCC With that first. forward. I that cord, and generally so CS for and respect filtration we

a be The into the cash that to for we more a but real growth it's be us, 'XX. engine on case stable, rely going of we to expect for and that cow business us, business

to that offsetting gain that's demand sensitivity more of were the one we Other of weak, continue economic to will weak, there's And for in or one additional obviously A we a of I 'XX a in as some result, other a improve. little here bit there and result QX competitors CS, as shutdown sales wouldn't production that there. say that our capacity And is But of but CS. 'XX. softness little at shutdown. a that of lot things the able expect

a going we, increase first, sales and So of that in to obviously, shutdown. production in versus an result as 'XX we're 'XX, demand and see

to CS. to increases the messaged volumes next, are like for so I gone talk exposed about you guess Can I'd implementation that has Great. how increases the far? price ask about you've across

year? CS compare your how the price weighted then looking and in And thinking of you to able terms that may about increase to speak you how inflation what 'XX to portfolio, cost you're across into are and across structure net next for expect average a 'XX

that I'm Matthew. disappoint stated value as volume strategy. going to our the process early in is you, Way over but I've already

our to product we where a we'll advantages will can. press So there grade It be sensitive. continue

angle So there'll there. be to different grades, but the different we prices our relative increases are working

Matt, as in those of discussions pulp London, you know, week. lot culminate a

[indiscernible] there. coming So up

Right.

just a enough. couple sounds of the more like be they'll spending you're what expecting That's spend And in. kind one one to like Jesup the thinking Okay. you be Jesup magnitude at could sounds sense around over then we of of a give But It last just can I fair sneak It little years. next if bit next kind specifically? should capitalized. levels couple of of years there, in repair

Really engineering. through can't. And going bit investigation to that's out. have cost done quite it once obviously, of then and then We're obviously we'll a

to early that versus something in it So we give still the spend we to feel to do just little it deferred, 'XX. on mean But would and plant you and we how want we be make much issues an out. that are that operate can't figure need is doesn't we sure right. that don't safely and a 'XX can These estimate 'XX, effectively we it's in

we're our doing and the investigation it. diligence due the So taking on time

Our Water next Dmitry with Research. Instructions] [Operator Tower question comes from Silversteyn

may. I A couple if questions, of

sort all, plant back to of just First circle on the Temiscaming of closure.

should to being to You bridge we during going thinking course as in quarter. into you a is in quarter? that be fourth quarter? much Or plant, the little fourth the down step the their bit as that helping revenue and sales talked continue pretty run we about the ready about down you're its look Is shut

little significant the but on has Since so help QX. as time has benefit the as July in uplift was bridge result a -- us But there'll we've sold bit. -- call in little as it, it not gone shutdown, year. be volume a the QX They'll a diminished as the through

working Temiscaming is there obviously effect activities of The impact up bigger the [indiscernible]... capital in

inventories, we look right, the that's Yes, right. as at

Okay.

million value a in get generation in the fourth about your in working you'll should the commodity about your You got did that should for How run a doing fourth is quarter? bit capital, it. So little the -- XXXX? HPC or before from we stabilize? we business bit Is more rate think XX tonnes bump expect XX,XXX and the there of volumes in third be declines quarter quarter. little to the into we Or going

that go to CS impact a year little and slowest our say with that products. respect AMB given demand or for dedicated seasonality whole we likely somewhat that up a It's the bit XXX%, fire, would also, fourth in not quarter have focused, quarter primarily also to and some but QX almost demand impact And XXX%, is mills Jesup versus by had CS. are is Jesup specifically to lowest I the or production. CS driven for both CS, our QX, quarter tends being our

of the impact around was made it the on the So than commodities. was fire CS

Got it. Got it.

factors that that week? then you've finally, for De mentioned the or what is How important you've in to that And published that market Okay. and business does goals in in presentation, the contribute that growth Lyle the achievement highlighted biomaterials the report And your you. growth how growth? last this driving sustainability several are in you business times

with well mean that already other have in participants very the markets plant I production. doing bioethanol entering obviously but you're it you're

able are for deliver be your enter you you're and they'll the gives to that sustainability with you as these approved the market that, confidence what looking So growth help that and goals? products that

our the into that it around probably those would bring to of about our say centrality business, current to I the of the biomaterials The With Okay. wood business, uses brief. our it's meeting to really that we Great HPC XX% And goes plant on objectives. could other XX% talk an for ESG the core be the it, very uses question. I'll of I products. try make as strategy, to respect that to relative business the our the biomaterials hour And overall key to -- wood. fact we but

leverages just and that And off so that processes have. the story we increases renewable circular the

feeds based we whatever nonrenewable as products of that that resources, existing result whether being be. that markets markets those on are that, a it -- by it's may make into And believe where supplied are will currently hydrocarbon that, or

So resources and to able to our the have -- already. that is we're advantages, we're our be comparative in that's out we make already plants of facilities capabilities of bringing within off where that leverage that we products the believe we going the

all And from renewable nonrenewable customers into products, going we megatrend really it's to sustainable the just going growth for forward. come resources And of that -- to not markets where core but drive looking -- end-use think are is resources. more products versus customers our that's go of the biomaterials, businesses that continued our businesses going

that we resources. Tartas believe say think today. that the have And would our bioethanol that we're And produced nonrenewable demand for demonstrating that a historically is growth. good get we're been that, the with I we of going that's products where renewable to So example plant by

of Dmitry, And Ben call forward we're on with Chambers you're the XXth looking November. hosting to

more lot you on that. give color certainly a It

We'll helpful your way. hour, Congratulations an behind such wanted Lyle, so business an I about just on guys for into aggressive thank you on for you a quarter. the take but to getting it and rationale that to get in of this probably De talk understand it it sort is strong

I back like for Thank would you. this to turn Lyle to At remarks. the De Mr. Bloomquist closing time, call

our team. and your the joining continue management support enhance for to very profitability our in debt and again of and strategy shown We of interest of and I'm very to appreciate We're us once today. our leverage. you thank confident proud dedication ability by our all our company. Well, and the reduce to work hard

our We updates drive initiatives as growth. value in projects continue success look strive on ongoing forward and these to we long-term to future the to providing and

and transparency open maintaining communication. to committed are We

you've if do free questions. got So contact those our questions, to us, answer feel to any and we'll best

So you for today. your participation thank once again,

This you. does today's teleconference. Thank conclude

your at Thank your You you have lines and time. may for disconnect day. great participation, this a