Kimball Electronics (KE) 5 Aug 222022 Q4 Earnings call transcript

Good morning. And ladies and gentlemen, and welcome to the Kimball Electronics Fourth Quarter Fiscal 2022 Earnings Conference Call. My name is Darius, and I will be the facilitator for today’s call. All lines have been placed in a listening only mode to prevent any background noise. After the completion of the prepared remarks from Kimball Electronics leadership team, there will be a question-and-answer period. August is call recorded. Today’s Instructions] X, being XXXX [Operator available call Investor Electronics A the be website. on Kimball replay of the will the of Relations page At turn like Andy this Vice would over Regrut, Relations. call to to Investor President, time, I the now Mr. begin. may you Regrut,

fourth Darius, and everyone. Welcome and We Croom, Financial CEO; conference and fourth to Don quarter is call, yesterday full our been afternoon for the issued morning XXXX. page today’s here with release ended year accompany posted Officer. me Relations XX, Jana With today website. good a a Charron, you, and June our quarter Thank our call. Investor results our fiscal has company press on to Chairman To the presentation Chief

over I’d be can actual to we press in non-GAAP risk Reconciliations for adjusted statements. All morning, like your will review for that release our the commentary I’ll subject of involve that stated SEC started, in making that with are amounts Don. from results. statements taking uncertainty questions. harbor filings you Don will is prepared results and on and are Jana focused call our to differ comments, few call today fiscal the forward-looking results and safe materially now to will remind we the Before Don quarter a and opening as and forward-looking the before start XXXX, provisions get release. press financial and GAAP will non-GAAP turn our remarks our to This available guidance the complete

fiscal the with pleased very year I’m and everyone. morning good And XXXX results. Andy. full Thanks, QX

world XXXX we on required were global was experience associated all-time the expected These events and fiscal annual how levels It the quarter, the In circumstances driving of across our consecutive can The our a for income bifurcated and and COVID-XX OEMs; year value line continues May we the to the total, organization; partnership net second environment For we policy record adjusting levels. guidance zero results with our margin and current company seems including and to lockdowns are in high been the a another. provided suppliers. new exceeded the working have strong with chain reached interacting highest of unprecedented very operating sales reminder tolerance the much an X%. in second a unpredictable way half with one be. with China’s of revenue normal to and living customers;

than in landscape which along with wins collaboration into have of Our company at customer ever produced have engaging levels a future. existing our growth These expansions with results commitment customer even winning this is the norm. business changing and several for embracing strong higher our partnerships poise programs award

exceeds orders of backlog our now open fact, In billion. $X

continuing the a our strength reflects XXXX. As margin fiscal result, increases sales with double-digit and in operating guidance improvement

chain experience step-up facility in continued supply constraints. the will improving our steadily existing quarterly programs and up the of expansions leverage volumes, a year. course of ease Due We new of completed the to and ramping performance global over

million, to been have fiscal results increase for were QX back to Turning better. compared Net the fourth This could last $XXX a results in year. sales quarter XXXX. the XX%

the annual a topline in unfavorable by was is impact. exchange impact X% the million relatively record X% quarter to from fourth with year to a also increase represents X% which This $XXX vertical million. driven compared automotive, in sales foreign our of It year. net the QX last of market a Similar four quarter. markets vertical and $XXX serve. the Net a year, year automotive large on last growth sales QX of company As had sales all total the sales compared rates were XX% last up in the for total business period largest in topping we completes to QX,

responder quarter a million, diagnostics; the in climate with totaling and therapy; a by success sleep XX% vehicle year. sales a $XXX market and this new a mobility QX were product electronic compared It finished sales vitro million, security year fourth quarter vertical ramp-up including access medical grew first last where breaking; with fiscal a also sales equipment. fourth including medical year our by completes to company driven management; year programs respiratory in year-over-year. million driven medical self-driving total, to and breaking and in therapy monitoring $XX steering; the and million $XXX where last performing our production and in year. for supporting to was of electronics, delivery introduction; record sales over X% exceeded X% the image increase EVs the of with or This systems; pandemic. combustion QX quarter industrial X% drug net And million, by from a This revenue, and growth of in and last compared for $XX Industrial of recover had last market in products XXXX a in sale. with and redundant care; XXXX assistance; the the continues million to public is guided result internal were control. $XXX our automated total a set of engine. market This of systems; vertical Electric applications safety XX% vertical In industry supporting ever was increase systems in the patient imaging, both quarter in best and safety a fiscal year Vehicles increase XX% that sales driver performance Our those capped up powered AEDs; business products. passenger year increase in $XX thermal normalize the finally, is X% best electronic off the power Net the year vertical

growth topline record and quarter setting of operating in X%. in of summary, margin So, excess another excellent

effected sales I ago, the As U.S. were adversely strengthening of the dollar. noted a moment by net

the taxes. earnings Jana unfavorably Foreign will I for also financial We expense share to he estimate also currency results for fiscal detail She for quarter. on provide guidance the fourth our our $X.XX the now deluded reviewing quarter. per insight XXXX. this more over impacted to call income will while provision impact in turn non-operating in in Jana? year

morning Thank you. And good everyone.

Don on As an for our million, our sales quarterly net company. quarter total highlighted, high were $XXX fourth all-time

in with year strong Mexico adjusted inflation. basis our with very were in most from than the mention this expansion expense last a as primarily from to salary that year to ramp-up and headwinds record our several and and point the $XX.X in sales stock-based the higher Don of absolute administrative This For year’s XX compared QX China improvement year interest million time. foreign so of a Section result results a a compensation China’s by was million of million resulting expense compared from decrease last was X.X%, and Adjusted the however higher a U.S. versus the administrative foreign income increase X%, the primarily was million impact measured the the The what the QX in $X.X a the of last income QX XXXX, selling in expense on compares which as that zero with he with margin point compared of and fiscal dollar $XX.X non-deductible quarter well first accounting the QX general last was of to record and this facility expenses expense XX.X% was $XX.X dollars compensation. sales noted. compared of in cost growth fourth a to of fourth re-measurement expenses the QX occurred bonus related in was tolerance of resulted X.X% fiscal the or encouraging same sales. was percent adjusted and sales to in was levels inventory for previous executive which of as in selling XX last facing year, a resulting QX Euro Effective XX.X% and When Other $XX X.X% $XXX,XXX in approximately difference. compared quarter in strengthening for XXX(m). X.X% rates due tax the payroll income cost to change Adjusted million, from in policy of impacted Yen. which associated was the net basis well COVID-XX, fourth to due quarter net was didn’t higher exchange absorption very quarter, level the last in low still ‘XX in as lockdown to directly period quarter year. facility increase exchange The rate operating quarter

in sale year prior allowance. the benefitted QX Additionally, tax a reversal valuation from

fiscal mid-XX% share to with the deluded effective to the tax in or XXXX historical million in range XXXX quarter $X.XX last per share. fourth $XX.X or compared net rate in income trends. QX was expecting deluded per be fiscal of year, $X.XX in $X.X million a income our We’re Net adjusted similar

With just income the other and rate expense item as tax higher decline by mentioned. and driven the predominantly the line such below I effective

and at was operating flow the $XX.X the provided cash million activities to now Turning by in in XX, cash balance $X.X sheet. quarter equivalence million. Cash June were XXXX,

by year. cash XX QX For in driven $XXX increase $XX the $XX from operations All the results fourth Cash days from inventory XX the an a from full-year, these cash from quarter. up last from of which and we in days, were of operations. million in last CCD year up million of quarter is million used days were that a is ago and in conversion three full-year quarter

waiting so continue by shortages customer so parts to have when dime, we today inventory orders received. speak. go can and of available that a needed purchased being We are on component Materials the are to a impacted dollar that are

We as and the in as expect guidance open improved our situation has awards. a expansion in the inventory $XX largely expenditures of orders fair down. well shortage in This levels XXXX. Capital has fourth business support the Mexico were as and of quarter backlog new start part facilities of fiscal million, Poland in reflected to our worked normalize

updated credit midpoint at the end totaled million were for ago a QX. at facilities XXXX, $XXX.X year compared June a on fiscal $XXX at of which the was XX, million a guidance of and Borrowings For year. our $XX CapEx year $XX XXXX, million million the to our

a the $XXX.X credit XX, liquidity at totaled our Our cash million June cash unused XXXX. of was available facility short-term amount equivalence represented and

of we X.X stock. shares under October been quarter, fourth program, purchasing a our total million the share share XXX,XXX $XX.XX. by of of common owners returned invested authorized at shares repurchased million has board to our price $X.X an During average million This to $XX.X XXXX, repurchase

We on program. have repurchase remaining the $XX.X million

deployment with capital the was a normalize new owners form flow, strong of supply our part areas that our and investing on the topline repurchases for growth orders. mitigate So expansions to builds fiscal We We good as in Even multiple improvement executed CCD of chain. a company impacted including year the backlog adversely facility, conditions with funnel in of the XXXX increasing to the summary, returning share expect increases certain strategy these our stock results financial strategic cash fully record of with ROIC. supporting business included future customers in metrics open and shortages. inventory in global though and in cash

a we year-over-year. noted, expected to $X.X of XX% in billion fiscal are increase be the million to $XXX edge and facility introduction and XXXX technologies X.X% of equipment with to estimated billion, in expenditures with leading to to is capital healthy of million for margin addition which Don Operating range the expansion and net XX% range support providing funnel in of and a be in As deployment year $X.X X.X% expansion capabilities. includes Poland, the sales guidance to and Mexico, product new $XX the capital equipment the totaling to

So, I’ll Don. back turn over now call with the to that,

Thanks, Jana.

closing. Before like questions, to in a line share open few the for we thoughts I’d

fiscal We Company in year and positioned for the believe XXXX ideally years to and are the very proud we of XXXX our fiscal is year growth in accomplishments follow.

completed am that shareholder that is in capacity exceed a expansion budget As Mexico recently the one pleased to average Mexico. construction our ceremony Thailand, with was and to facility ribbon I XX. recurrence in expansion targeted an new investment in to doubles cost footprint, this on incented are EDA of that plan our weighted we for by announce complete to time on drive celebrate value in and with make our capital cutting August the investments Similar company, such amount. the

expansions billion facility aligning XXXX. schedule fiscal $X grow our footed year in on which facility We also these Poland by were the broke increase our recently revenue from XX%. will down milestone. productions aim at our we with expansion of Each approximately for roughly annual project This early customers a is in take production completion year existing as now on capacity

solutions customer as try done in provider, multi-faceted our a manufacturing high year over on a customers application of of premier which strategy XX levels service. we’ve choice and quality, and Our We approximately be business XX% focuses supplier reliability from for revenue with past years. complexity, involve came to

our in that in for a and rate systems fuel part we’ve is compliance of the medical growth technologies vertical, have achieved our of automotive As represent growth core of promising stringent the to each which very industrial, with and objective identified with our automotive, with plan, trends compared manufacturing industry strategic diversification vertical competencies industrial when on the rates higher considering our which certification, and markets will well medical, market total company. in quite This standards opportunity expanded goal vehicle. with mega of aligned growth we be and leveraged with electrification X/Xrd is of and being added requires operating increasing the automotive Electronic capability. production an advanced vertical in which all

In outpaced making has some demand supply, over the new years, to vehicle. couple to a difficult purchase consumer addition, of last it

result, now for this see XX.X consumer As in replaced approximately of the We a indicator trucks the average an trend vehicles purchases leading high has age all-time U.S. cars and to a the demand as increases. continue years. as had

suggest mega an Our opportunity increase as expertise chassis in and medical our overall delivery may control industry affordability vehicle The and popularity autonomous as the population also and device growth well, it’s accessibility bored well for trends benefit smaller increases. drug as continues to age connectivity adoption. systems levels movement in towards in with high company. to healthcare Also, precision of to and and the our sizes accuracy connected driving

heavy significant lean Our a market. in medical this with focus efforts have new business development vertical toward

facility endorsed and to with critical that manufacturing the Indianapolis molders recently medical manufacturing our Accreditation. requirements injection identifies designation industry. MedAccred of Molding in addition, group In process been This Injection select Kimball solution a in verifies compliance and have serve puts medical

we the applications consumer Finally, for consumption our raising conservation awareness the claim of we refer water, support. natural finance which and gas, setup a increasing excellent has for industrial are electricity, trends with Green of which growth. an to on objective and The the provide of path resources

organization synergistic that and optimizes control climate going and the operate improve and looking to and can to vertical public Development For as that this these month, joined is and Morales increase Mike of which that for Also, directly year be long toward in Jana. they the call energy we operating the not efficiency our questions purposes industrial is notice of will units billion efficiency Director our achieving and critical may design to In example, overall each for and That our performance. We combine reporting their of target OEMs reporting how to any a longer-term XXXX he double-digit markets total, today. growth when manufacture earnings fiscal annual of are topline systems opportunity $X asking in their because revenue. electronic controls vertical see safety our in of forward. on Corporate guidance you products some

the partnership questions the like questions. fiscal XXXX for are the finally, have success worldwide. I’d at forward look to we their team. We as do the any throughout queue? support thank have the their excited in I them our and is And for of like would year in with and of center open to to the analyst part lines family Kimball him Kimball dedication to now Darius, year. upcoming

comes [Operator first Instructions] question Please go ahead. from Soderstrom Sidoti. Anja from The

to quarter, wanted you hire. another and outstanding price on and I on right to congratulations the to new asking off and the are start on congratulations through with pass everyone, components? customers pass able through about Hi, a increases, your the this

Yes, right Anja. that’s

those to prices we any increases strong for costs, are our the that logistics, as majority freight to We example, working costs, across, the have we in premiums to pass our or have in extraordinary very selling And of with material come on like pay, relationships prices. etc, customers we have customers. able or

to does to able on more without revenue of even in where show your so you normalized And that you’re profit margins? maybe having sort positive extent on up the that your any want to not add an effect everything

be think would Anja word increases customers the we that you with through well understanding do in cost the It we’re markup to would that way extent show small that that passing our on I show have pass wouldn’t frame normal but sort up would the also would yes, up It would The our the be some the in would actual our as revenue. on, be business. use to we impact. margin of

would it have yes, a So on slight delusionary margin. effect just very

terms left are what up And look what does medical, catch you in then is seeing terms of and there of in in like the the on medical? the backlog there

It’s strong and the well. course, predicting procedures. a of is sales of have scheduled has what of as the result as or been lot have return as predicted, And well. sort our elective been industry increased we what very And, of a those

We being backlog, may but other improving. unfortunately, also more there to shortages, that are that frequently, just able also some we it’s with of our not but automotive maybe to like the talk in up constrained vertical, are we areas catch steadily terms about of all limited constrained there the

of And a is seeing towards or to supply terms positive still are it go? moving in territory, you the slightly of It’s sort what chains? more way long

would I say but our technology verticals slowly. in the that market our component used often most and market for it’s products say those end and verticals very are would categories end I for improving,

electronics a different, it’s better, mean, our end we and it’s up only that verticals. unit for component our maybe and you often and up I it’s But And in pretty flipped for space, not and what anything situation. clearly surplus customers sluggish. don’t the to are market much much example. know, trying into do it’s the we categories better. I think catch technologies the to consumer do it’s as caught there, designed still Still

now? is in and COVID What little you what a bit maybe the And up Europe picking more the lockdowns opening that seeing are Is Europe? there? situation in after up

produce pretty steady there our most facilities European the well, two as well, in in us what it’s there Yes, know, as stays And there. you Union. we for of

We’re it every down we and there. month as it like watching each seems very new get that could customers from slow quicker because carefully inputs our

We August those not are July maybe still yes, they here as go of or and greater weren’t carefully fiscal be because, our global very seems into bit things quite are sort COVID. studying the recessionary sort like it And August. I might like we recessionary fears year before of and ended there a think It’s get to and into a anxiously things we’re go but know, slowdown of and anyway, as year, from September, a to is Europe October we see time how difficult and for Anja, their waiting for November. back of vacations get sort as to this read everyone July a look period you in things

question go Street Next Schmidt Lake Please Markets. Jaeson ahead. comes from from Capital

finish thanks also my taking year. want my on a strong to guys echo I to for Hey congratulations And the questions.

FX concerns? I know of supply But clarification sales called out to a how much Just revenue could ship headwinds because June. not you you in some

parts we it is want year billion. at year that that terms put start fiscal XX Jason, end to between to exact in low way have had guided think below all X.X we the number needed back fact we the when to Obviously, But guidance. could of you I it shift. think we ago to and there guidance go billion the full hard and been, about ended X.X Yes, we what of we the of XXXX, that a million the that issued year the an you

be as the least the said we would that we of at even in So we had guidance end at needed, call, if upper the last better. components like maybe and we’d we feel

the both during up XXX would at we be programs there’s of at we have fiscal what that I in are course should million for the year. bit launching. to end programs from at guidance the beginning ship. the try availability year. studied how we we provided that’s least fiscal us and fiscal backlog and year XXXX. XXXX be over most because full want to of our of backlog our XXXX. We we markets at the at guidance you to taken So extremely will component fiscal didn’t of our probably look Yes, the the a learned serve. already to we component of it the difficult existing Obviously, we availability, But our and and we we order we year making from looking were one say could especially we’ve the gave shipped easily just again, into that lost all that the customers continue customers that we’d year upper last for steadily matters say best fiscal new for what factor guidance. year quarter, that that us, bigger what it asked And numbers and think of on we

significant of growth obviously the projecting increase as to so would pretty fantastic. terms are guess we’re XX% ‘XX. still in we in a key XX%. constrained we in we be improving, would, year provide to that year-over-year contemplate what line I output top year point fiscal And because But that’s is build It’s of can restricted going a there

still ‘XX of fiscal our it’s material. be You the but growth availability could that and still constrained say recovery, will by year

No that well, that’s taking you look you noted are any are all the scrubbing potential or in concerned kind at for you sorry, certainly of helpful baking that color pretty de-commits? and just acknowledging

we our of planning have demand world let’s economic the to at and customers year out. And calendar aligned. carefully conversations sure fluid Again, month, global into we can, the making as each those outlook what a process. customers, and we in say our down as don’t, we into those we with customers and as closely sort of or pulling operations like as looks this very that’s sales outlook economic our dial their with And sort working growth growth, look been of we whole every have lot go seen We through as go will de-commits, it’s the pretty finish or haven’t back we comfortable But our to the operating literally and is that in getting buffers overall those we have one place of XXXX. cases, profiles, as of also ourselves air they calendar what to now best and customer. put a terms customers I catching we terms demand to the customers our the by up, shipping their with thinly look because our I be. is way like into by they’re on in availability. inventory going levels, their their in working shipping they feel position facility don’t mean, right have, maybe great some operating of demand as are in are And that air from by

it’s so moment. in to be really of all impactful this to us And

supply from a have that to at buffer up really a economic the and of big chain in of sort time the outlook global of growth. suspect rebuild I anything period inventory we’ll So, happening

into then And for I’ll and one makes me last That the sense. jump just queue. back

past on in does segments that I mean, we pipeline. in similar is you what I’m reflected the year? Just that if down following how and dollars this fiscal pipeline, up your a in sorry, the plus saw pretty think medical the high question, between it billion break level, about at the to

that’s I Yes, fair. think

at across for different big when today But the that number look we fair and I correct. we’re our we growth vertical. across all guidance. verticals in by is consolidated growth verticals, our providing we assessment look when stand think the that I not consolidated, where directionally a the guidance obviously, mean,

help? that that question. Now answers Does your

lot, No, a it does. That’s perfect. guys. Thanks

from comes question from ahead. Robert next Shapiro K. Please go Research. The Singular

question. of Hi, next XX% to high in time there is for my on the XX% sales was is taking this increase thanks My top quarter, question all an for first past of sales. year, expectation

this sales talk during So such this such that can you gives during handle increase that you quarter a the year? environment confidence can how you about

a good at our a place, about question. resources, capital That’s the and nature the of over in in of terms sort year verticals most the people, and the customers capacity a couple then processes the it getting previous of ahead serve, production, expectations about in have place period to cases, really calls validated ramping of We and time. starting in our of of In it we and go a talked footprint equipment. of ready including it’s beast, just least that to up

So the you those QX of of many putting lines in running here resources talked be ramping fiscal that as rate. could webcast year And today, start QX place. XXXX at we same to we end with many ways guided step sort XXXX in year just most are of need the lines. in year we up the this throughout idea we year of stair of place we’ve fiscal argue them and of for in already revenue a been where many to those new produce And the that in by steadily fiscal

what really So face. we that’s

in for get that place us confidence hard and them believe we’ve level, got the in high So then in place. we is resources those been to working really we the pretty sense

got got still we’ve those an we factored said, constraints to guidance. I availability market. see As And material into improving our

capacity. So guiding challenge. have I number our fact our if XX% obviously, to would and that’s a mean, material growth, constrained the didn’t running to well. a are of issues, by achieve got any for I’m XX% challenge for that we near us lines have full many or the them at full as counting It’s imperative a many capacity absolutely we’ll world. our on to customers their those And And business rates. around bigger. saying be we facilities to we’re get that’s And plans still yes, to material

over During XXXX increased four quarters. the quarter-over, sales

in So, is similar there we assume or XXXX, to of we kind for in that should your should account sales each of quarters? in seasonality the be business

question been be sense. really availability, so a it was that Yes replaced in that there constrained by many would we’ve Rob, if to if hard seasonality, sense that the answer makes that’s in areas

And in can. or a business a do been lot that value ask that would tiered everything well very We the materials know to that’s haven’t many that climate providing brands example and like so large of heard you if, to both that types really have for guided customers chain, these you shortages, systems train of of we are of carrier and norm. the know pretty people. had you with been anything that literally control the big that suppliers customers are We’ve name today us we but produced sort by more in maybe

see now chain we everything of of the a well, once when can’t that example, And is back out of so normal. result, cold something seasonality we their it’s customers I would sell some can a at mean, seen when think would seasonality and power it’s markets what much we just we’ve shortage with some gets of build based situation, and new more climate businesses those so have they the conditioners serve on we’re They but we’ll back the and air more to of we a look components. availability seasonality. just sort say really to some sell for control lot furnaces typically as it’s I value tend to it out because in come hot lot asked yes, to have sort

you’re I New stair Mexico sequential about particularly all new fact up, sequential ramp product products, as would growth XXXX. add we seasonality. as much January, but seasonality, growth Rob, speed, I which so new in and But as up Don not model that of think we year we’re for full to I and definitely as much more to get that referred revenue introductions, about the facility would would the ramping that and quarter-over-quarter. Thailand, your think out building up steps opening opened you so fiscal so, expect of those have wouldn’t

question from go Gabelli next Your Susanto comes from Hendi Funds. Please ahead.

in morning, invested billion Jana. insight Don, to X.X Don, billion. up Good would step the expansion. significantly like from more into and has capacity to Electronics to billion Kimball I X.X request X.X

capacity sharing the XXX Thailand, come and where on colors So XXX in to like you help revenue, us terms Poland, production like from, that? million which more of incremental can across million Mexico

of of telegraph that those sort have expansion the our that sure for parts a far, yes, we of and footprint. Hendi can lot I going Yes, into

them all you see Poland So expansions. Two already out, taken announced on. and off, taken Thailand, Mexico, of previously were can

that we expansions, those significant successful But announced that expansion. I our of the we’ve the also footprint. say is lot that pointed have way say of yet towards would been got we’ve where business not a there. to growing, not part maybe announced very growth So And and

First growing very supply the into. feed of regions of our chains all the all, that world we’ve in been successful

So America, Europe, us have for China, development a been from business successful China all perspective. North China, for

growth the at XXXX, year look we we well the entire we’ve guided as across across that it is footprint. fiscal regions so for and very XXXX, spread our And really support,

to in XX furthermore, like like million million million of in capacity XXX the how the powered close of see. like with I revenue the revenue like of then year. million is a XX of Electronics is Kimball XX terms And of How and dollars current to X investment midpoint wondering billion million XXX CapEx much say, Don I’m the, with the CapEx? that associated fiscal of goal CapEx

Yes.

our we’re in year, couple got goal. both standpoint, guiding as the on that think that we today, we’ve exit an approach Hendi I the last we’ve have and the number well. approaching revenue billion from facility and annual fiscal XXXX, as a footprint to to also standpoint on we’ll as this year that the it equipment So we CapEx for the annual script about set had sights CapEx revenue of talked with years X mean, And we

And affect question for next of that CapEx one will operating up then and because How margin two go Depreciation or two, gross the will years? one for investment. margin Jana.

Yes.

would of CapEx But gross to you with that associated going also the is to level higher CapEx longer be such that’s for think year So XX, industry. have I I the to life, depreciable that probably rate. able plan what term, the what increased revenue should roughly is, over investment that for would say you’re standard I margin pretty CapEx our over time expect maintain

be starts bit deployment to rates is So gross that’s in cycle there of margin hold expect going timing would normalize its as we to of coming and through capital through and very our to and I nicely. between to sort that’s a you’re beginning little value. revenue that But the differential should that see just capital temporary in a earn the difference going

[Operator you at It appears moment. Instructions] have this no questions

Don remarks. to any final for going back to So hand I’m it

us the of you and to interest appreciate Thank in you, That call. everyone. speaking brings your the end forward today’s to with We look near future.

If you to the questions good please have interim, Andy. Have in any feel to day. free out reach a

Thank the listeners simply call. a At nice day. may disconnect and hang you this to have from time, up