MasterCraft Boat (MCFT) 12 Sep 192019 Q4 Earnings call transcript

Good day, ladies and gentlemen, and welcome to the Q4 2019 MasterCraft Boat Holdings Earnings Conference Call. At this time all participants are in a listen-only mode. [Operator Instructions] As a reminder, this call is being recorded.

I would now like to turn the call over to Tim Oxley, Chief Financial Officer.

You may begin.

welcome and operator, you everyone. Thank being Today's be and also live on call our is archived website will listening. webcast for future

Joining Terry is and today's Boat on President Officer. Chief McNew, Holdings Executive me MasterCraft call

includes of financials. for analysis fiscal agenda by our by followed will the a Terry, And by Our followed overview the my XXXX, discuss Terry expectations strategic Q&A session.

is Company September like to update including information forward-looking no this historical the press call disclaimer to the XX, to remind contained today, Safe facts subject of The that we'd in today's current participants begin, any as we release. forward-looking assumes that Before obligation statements. are XXXX. only are Harbor and in statements statements Statements not

non-GAAP or operations. exclude measures that Additionally, this on include one-time our ongoing not discuss special indicative of conference call, would items or we

For comparable measure, results. quarter reconciliation directly our measures provide GAAP XXXX the release, to measure of which each most fourth we fiscal a includes non-GAAP earnings our non-GAAP also these in GAAP

Before results turning a our to summarizing to like section deck slide there I'd financial listeners Terry, that the our remind website. is Investors of the in call over

With turn over the to that, Terry. call now I’ll

everyone I'd to Tim. like joining thank also today. us Thanks, for

press today's you saw Holdings closing operational delivered strong in MasterCraft As from the our XXXX release, on note. Boat fiscal results out quarter fourth a strong

adjusted and to diluted to adjusted XX% EBITDA million, share. fully than income increased grew $XXX.X For to year, XX% increased XX% $XX.X sales per the million, more net per $X.XX nearly nearly net share

X.X our our acquired the management times year adjusted and us and cash in we times when X.X selling of net strong total EBITDA Crest at generated leverage throughout practices reduce headwinds adverse country XXXX. in enabled our with throughout the year at versus pro Moreover, end forma debt significantly team to earnings. during weather, October adjusted record again June, the sales many levels tariffs, especially import once net faced Despite macroeconomic uncertainty, including season, the

several product Our MasterCraft past XX the over successful highly the driven in over brand XXX including year part course XXX. the in and the towboat gained segment launches market share last with the months large of

its and remarkable once. Marine International industry sixth in consider in Riders according achievement innovator receiving you the Association, years. consecutive National eight a Manufacturers towboat received manufacturers to innovation XX category a than run continued when the Boating innovation in MasterCraft its award the and as This row the more last no other undisputed is the award towboat

in and towards have industry. tireless continued the that's Our dedication innovation unrivaled investments a created legacy

XXXX, performance, new a redesigned an feel cool offering the transition even features, entry we NXTXX helm enhanced to customers optional more layout, and an experience, was series, and and year MasterCraft’s an NXT level seating completely upgraded base including NXTXX, model As with value, interior. the our the engine,

success a at Our and new we this month brand, XXXX be NXT to model lifeblood for about are portfolio. our company MasterCraft models this lineup. the innovations model continues launch complementing for product year will and later introduced September and in product and since the balanced our breakthrough been Fresh the excited a avenue A series out year's the of introductions rounding third it XXXX brand. announced was has be MasterCraft in growth are

market the highly fragmented segment. to number continued its Turning Crest, acquired share eight brand XXXX, market since with October share has fiscal we year the the in business finishing in the of gains Pontoon

next believe have course to of top product a process drive develop segment we five MasterCraft, market that Crest a Crest the the we can similar years. two we Pontoons share spot at As at and the innovation development in we over

product rationalizing on future. to models market new near focused been portfolio we've months, and in the bringing nine past Crest’s The current anticipate

production increased several on progress acquisition having capital expenditures with capacity In significant addition, we've made initiatives minimal operational required. after begun

While the the mid-teen to gains over the of XX% percentage Crest early, our operational the the acquisition range at believe implementation its still of playbook. time from volume driven grow low and by profile excellence can margin next gross we few years,

be in time the six player strategy top developed growth, saltwater highly boat new and overall market and the of in acquisition, fish to We a development, fish continues the which at to contraction fragmented dealer operational product despite NauticStar committed improvements. market. share remain the a deck saltwater consisted we segments the growth of

to experience at rate the impacted continued ability However, in have NauticStar XXXX. was that that acquired business’ the to challenges when originally it market grow has was wide estimated

boat feet impacted in fish pulled percentage operating the demand, ensure boats we’ve represent align which less model Specifically, These a models retail margins. especially slowing saltwater retail current demand, of for back NauticStar’s brand's boats core response, the smaller length. to on has market has production mix. seen shipments with XX wholesale market, In than significant

asset the intangible and other company charge a million multiples companies company fiscal quarter. combined to fourth These $XX market and lower specific group goodwill headwinds, in contributed with of of impairment recording peer valuation

continue To brand and we long-term be clear, prospects. its NauticStar bullish about the to be

pipeline smaller will the year to wholesale in the earlier on ended the declines at levels, XX Hybrid production and in market. XXX year healthy the XS center boat help back given at dealer pull in Our NauticStar mitigate foot both console decision our the prudent

developed strategies take recovery in but this slowdown the long-term and the larger positioned ever of acquisition, product term, the several development believe to we're stages the growth leading profitable efficiencies we initial initiatives models has to will introduction than including it a market a be time new remains market the with in-demand greater the early combined projections in brand NauticStar of the serves, progress, of growth. leading In operating the of deploying, at market and delayed near brand advantage operating better the

XXXX, country. Looking MarineMax to the brand we at across beginning fiscal began the our shipping in newest dealers Aviara, AVXX

truly insight the Day luxury consumers engineering anything Boat study, We consumer validation is alike. are the has of and a water. about experts and else MarineMax, modern the design years unlike response extremely excited product industry from brand on received Aviara work, and After

AVXX begin second July shipping to new models the The the are half of in XXXX. scheduled shipping began of XXXX fiscal in AVXX model AVXX and and

like to back go I'd turn results. to Now call over over Tim financial our to the

sales quarter for to increase $XX.X the were million, as the prior inclusion partially XX.X% was increase in offset NauticStar year Net period. unit an by the Crest, due Terry volume, an compared fourth in price Terry. to increase Thanks, primarily of reduction and for discussed. and of a volume $XXX.X sales mix million reflecting The increases, MasterCraft favorable product was

due with unit mix. taken expense product increases compared by of of year-over-year This the favorable inclusion increase period. the warranty and volume, well the along favorable adjustment in growth in as XXXX year profit warranty XX.X% as from for quarter NauticStar $XX.X fourth million one-time in the volume was prior The Crest, offset price, the to MasterCraft million Gross to increased was $XX.X primarily increase to partially declines. resulting

Our fourth the XX.X% for of gross margin year decreased Crest. quarter, to principally XX.X% driven to compared by the prior for inclusion period, the

mentioned, is XX% to from gross our goal next Terry years. profile grow low margin the Crest As few the range mid-teens over to

the million period. for $XX This $XX.X compared increase mainly NauticStar and Operating Crest. from the impairment $X.X of to to quarter million inclusion the year charge the for fourth million prior expenses resulted increased

XX fourth related charge, sales the basis as expenses X.X% impairment integration a non-cash points operating decreased to startup acquisition and the brand, the to for percentage costs prior X% the quarter cost company's of year Aviara for for and period. Excluding compared new

shares, approximately period. prior XX.X income to average million diluted per fully compares for share fourth the to company's XX.X% annual year of $X.XX net of $X.XX million weighted or This the share grew XX.X%. share count Adjusted were quarter adjusted estimated effective the computed income $XX.X rate per diluted million net $XX.X on tax fully or in a using

XX.X% was period, the $XX.X fourth to dilutive due in Adjusted was the compared XX.X% XX.X% of million margin prior $XX.X down EBITDA year for the Adjusted year prior Crest. the up EBITDA quarter, principally in effect period. million to from

acquisition given we reduce adjusted leverage Lastly, pro pro XXXX, Recall of been ability leverage forma X.X net a to EBITDA. of X.X our the Crest free we've the to October cash our net at to strong had able that ratio adjusted times time EBITDA. generate forma flow,

a in accordance net adjusted income of payment press see have comparable for the section we our reconciliation healthy sheet, most and balance emphasize will debt measures to believe of near to non-GAAP XX-K the and Please continue directly margin we release term. of in the EBITDA While presented adjusted the we measures with adjusted EBITDA, GAAP. financial

press In the our morning. I time, detailed Those we year cover the release on this issued results. of interest were full won't

With that, fiscal current industry on Terry to economic for I’ll our over back for and our turn outlook and view XXXX. environment, it now

and We and low the employees veteran the seasoned firmly the leadership on the long fixed balance cost bullish best-in-class tenured prospects cost, highly remain capital in our long any team, we near-term dedicated our of variable fluctuations. We own, Tim. and markets perform management, we irrespective serve sheet brands of Thanks, company structure, strong believe industry both environments. all to economic and position with together networking term

plan. first XXXX months fiscal of trends eleven retail MasterCraft, ahead throughout running our the At are of

internal up retail in a with in adverse by however, quarter With sentiment in registrations conditions eroding weather resulted macroeconomic political the driven warranty along uncertainty, significant dealer late and fourth fiscal year-to-date year-over-year our across significantly activity. country the decline

to performance our heading anticipation particularly fiscal growth lower fiscal at prior half We MasterCraft at MasterCraft the first season, compared such, it's of into continued selling wholesale XXXX segment. in in production pipelines prudent to in overall shipments, for allow pull calendar back XXXX boat to healthy wholesale year As outlook factors of the believe, year. our sport the dealer in

and the vigilantly the performance decline sentiment, brand first months activity dealer will six we weather macroeconomic Similarly, experienced and ownership. in conditions was said, accordingly monitor That our by impacted of trends adjust retail needed. strong dealer Crest Crest offsetting and our adverse during as

are entering year during calendar expansion, dealer and very at Recall, will healthy XXXX on profitability and gains. for the market season. tempering segment we pipeline Crest and acquired initiatives production was for and long fiscal our second Accordingly, we're selling last development driving levels, overall quarter Crest to we that anticipate are XXXX the Crest dealer our product fiscal to share term allow operational wholesale optimistic Pontoon we contribute and the

to retail pipeline fishing production, market At resulting NauticStar, a pullback a in quick year wholesale XXXX in healthy reaction the to end. fiscal the declines led levels in in saltwater dealer

dealer beginning benefits AUSP pipeline, at to continue new, last late while disciplined NauticStar’s to will introduced from the realize larger year. We models be

as net contribution will in previously $XX in to reporting is Regarding Aviara, preliminary disclosed, results Aviara is our sales range production first be accretive financial MasterCraft to reported expectation be MasterCraft’s million year $XX in profile. our as for margin expected to whose segment up slightly million we ramp the gross the

fiscal profitability. this in to occur XXXX leverage digit year high that basis XXX Based that XXXX, factors, being Aviara recognize in increased realize on start increased the achieve note fiscal we expect the production operating single consists point percent, due of contributing those and single down percent. net to will of outlook down XXXX, shipments fiscal per When adjusted we to consolidated company's we low, XXXX. important fiscal full depreciation operating sales not incremental share range, fiscal did run the margin in being It's EBITDA in expenses to being adjusted our XX to down earnings digit and rate

and on any while We innovative full that over breadth portfolio improving our will consumers excellence, long operational our attractive strongly provide, all across products businesses brands in returns generating focus our maintaining and of despite for line best-in-class the shareholders market value long term. the for and driving uncertainties, near-term meaningful the of drive of term believe capabilities our bottom our continued developing value

for it operator the to I'd Now like questions. to turn over

SunTrust. Our [Operator question of Instructions] comes Michael first Swartz from

open. line is Your

are good Hey How you'll? guys. morning,

Michael. Good

May with Terry pretty mid-September? of start recent guess in Maybe I but I saw here June, off I you just in and through we've maybe which had you that with seen SSI all softness and strong, retail in July some what seen the you've through commentary then think the about guess said numbers, the some trends, was talk

all-important demand more month the by saw some was with was retail and MasterCraft for of August, driven registrations the Right. a August during was the little that more Michael, ski registered July, weather That's tracked also up returned. our retailers the demand saw dealers but pent talked even issues we and by up XX%, June or saw consistent up May. are a it our through but by up In retail you July segment data in up wake June. we've retail internal detail, up significantly SSI good the remember And we the SSI about. the less general mid-teens than specifically than both that on to We much more global The course, July in certainly was than give month. was year. that

Okay, that this we're what And guess maybe unit digit Aviara means into think then mid-teens, low-single I I'm means for I correctly, excluding back guidance, great. down, you and unit way think for volume, If about core trying for just particularly is all Crest. doing XXXX? on have right to that volume, revenue, to what one the year fiscal quarter down to like the benefit something it of looks digits low the volume double caught that i.e. math

to you're years’ at combined think experience the the we in it in and you downside. know looking so know Yes, Michael, Tim XX manage a I think, the correctly. I I upside, we industry, how think have

pipelines should think to at We it's and we it's prudent as down. real as selling quicker very and NauticStar I Crest. season. world and little that healthy. so we the You proper pipelines enter can you XXXX we a have do manufacturing we see know, a that the up capability at into we'll the but bit are anticipate, get of certainly than MasterCraft would correct respond it take They are take experience. we And to retail advantage flexible very quickly, think respond know suggest we

be will loaded course. more year Our of back-end

just with organic. let’s helpful. XX% call XX% that's one follow and then And the sticking for unit light that's volume then again it, of guidance, up and Okay, to year, down, just in

points, that volume basis would margin take but the be negative of XX that I in points I it you margin looks think so double-digit nature so part guess volume as least first points operating basis we XXX decline. in margins think Crest EBITDA down if kind down a are EBITDA to that doesn't that out, into I going XX the about? XX dilutive positive I offsets at of of you that gross basis to just is do you or costs maybe of assumed seem said on quarter, it basis like unit have points some decline, to mean, other something as year light this have should that

as here; you've most on it's know you you Tim of you've been Well to of really the talked you many have. I phone, and

all about cost. low-cost variable business are We a model, high

basis in is of nature. COGS percent on You know XX a our plus consolidated variable

is career. up. that we've any We have talked Again, it in doing we've a been where slowdown. show four about many combined and kind This times. in years, starts this It's to our recessions of XX and been through slowdowns

it June across but macroeconomic in with recession in to than contributed forward We that experience anticipate we retail recession. our So, inventory a a We have I variable we our cost basis. higher time, look typical this attribute the the at of on as and remain drop don't our today. would industry declines we an levels in really EBITDA the most unit breakeven ability protect much as margins adjusted basis can to would in gross

so, adjust for that. are able rapidly to And we

is out next the China we've week, Canada war was future, or the trade I the experienced not dealers. upper at Midwest month saw their election several bad was last month. the economic in but look and that of west national in I some uncertainty. United out into and we Canada But States, got last only As we the weather --

XXXX So, U.S. what happens summer. before That's elections. you next right look out the

And so among could that right now, some our view that cause consumers. is pause

happen, demonstrates this this can as structure. answer we're this to we've it demonstrates So we've that algorithm experience, variable your rapidly, if and pivot question, before, from I years drawing that but anticipate cost our and said would think doesn't highly happen we we our of again seen but

guys. for it me. That's Great. Thanks

You bet.

from of Our Craig next Baird. question comes Kennison

Your line is open.

you Good for morning. questions Thank taking my as well.

the Following say in Mike on is outlook fiscal your had retail on what to guidance? the up what embedded front, retail XXXX

given consumer in Well, growth growth our and across than we modest anticipate sentiment dealer Craig. markets, prior retail XXXX of still years more in albeit, all current

protracted, view. election our as in the said, You trade are to a slowdown, also know in factors risk Mike war concerns my global of XXXX contributing the response I

know B, have our I system. We a given So you side. that ability highly the cost hesitate. structure as flexible, highly our A, little conservative But we and manufacturing flexible think to we variable hedge

focus and activities. that really up to a the We times try kind we not. always or bricks and And resist We day on know more every whether as costs desire benefit that see good higher certain variable. you wake we or mortar it's of to from just fixed have

factors terms in our and our those at So, evaluate we the of look are -- view. those outlook, the are in that

the -- promotional excess of how maybe what you today, out would clean then inventory? And environment some describe that you. Thank that

some everyone's clear trying retail elevated seeing and across channel. to both the competitor all segments We're promotions we believe

Our is is evaluate to or Monday we we do selling bad. any goal other good dealer pipeline the for see be but -- than always right help in We time times you continue might that, know our in to every we elevated season. this again always to pipeline, that know and sized area is you we'll XXXX goal it and be

on in You more we're be will know, on XXXX, some pockets discounts inventory, add competitive non-current I not and product mind We're deploy the keep dealing of this of higher but but landscape we your would Craig, product. that monitoring Tim. is any will with be

And one types thing the that have. again other add most beyond dealers carry is, to know brands that of products Craig to you we

and pause product not improve, or a inventory if something competitive good is credit dealerships chunk really because it that that a mind, capacity. that carry, levels inventory does their improve, of dealer other they can to that levels in the soaks our keep up product if even to have those cause So and

with trading maybe priorities where just prioritize to today, could your extent finally you any stock your share it's then, relative to priorities? and talk about And repurchase activity at you. what other capital Thank

very you You board in with mentioned our our our cash know comments, we're capital we And know are as working prepared on got to primary strategies, we'll and to any other down to we our pay for right always and out are debt. deploy M&A know continue is allocation to you going we've and cash now, a strong focus continue great know look opportunities. those you and our sheet again, flow balance

downturn, a in come available. M&A think opportunities We might certain

debt of EBITDA focus down are the kind looking -- on those decided one that adjusted to or we've areas time So particular paying levels or below. in we're on below three and to

to So be keep sheet. should balance there powder to We have we the want keep M&A. and opportunities dry want flexible available for any

Just stock be to up M&A follow but I’m of a hard accretive would your trading that the times front, earnings. own under back. I as think your It'd as there to imagine sorry be I that mean, on of at company quality six trading are pressed you're value. targets buying kind

because opportunities I there there, certainly are low in relatively evaluating we could the stock our right, Yes. know of not are there right ability now, return. greater have cash deploy you're those repurchase deploy those you you each mean. growth a not multiples is other are or opportunities I'm that repurchases and considering saying we share it and that of and areas. even but acquisition organic the could think we're certainly is a know provide considered but all I to and we're

Great. you. Thank

You bet.

KeyBanc Brett Our Capital. [Operator of comes from next question Andress Instructions]

line Your open. is

good morning. Hey,

Brett. morning, Good

just half year, our either cadence your split. gave or just the But, of you for more on the us clarification for to upcoming so terms quarters, models, any color of expectations the front the with of EBITDA there in cadence half, help here. for us a sales a guidance, back Just

are this loaded There Yes. factors influencing back plan. are end that two

with of as in pipeline the all, coming production our Aviara XX and shape wholesale soon get can. of to as online First both adjustments up ramp the half XX the well know second in you as to the the good as we the

a year I you first net maybe it XX now. sales and know be look You modeling split for to reasonable the a for at with perspective, half half, next think XX, second know would way between from

how pull specifically just on you. Got out one do of you it. you channel units -- think side. then another the the have to on many Thank And MasterCraft

MasterCraft where implies the something your wholesale. on I basis, season? XXXX on So now less XXX end a and shipping guidance to you week’s units, on do right like at where you guess, side the up into want are going hand

includes of guidance as unit to know Well impact a well popularity mind of both with so models, in and you we’re guidance, volume mix as stick down we're a reduction our not combination to keep new previously provided likely in into guidance that are our you our the that. NXT we've those and going mixing bit, know with baked sales be

you. Thank

of Our James. next question comes Raymond from Joe Altobello

line open. Your is

morning. Thanks. Hey Good guys.

that the a mean few in year up you guys given inventory some questions Just of that get I well, are in fiscal second earlier. can you confident done expecting is some or the there a the this here. to on of follow are first half how of you as to do half the terms questions that that But, from overhaul? cleanup of into bleeds this chance the that

know and September also, is was Joe, always you of lightest quarter that, that good July is starting October after of in for well terms year the the through second fiscal retail. our but us, December quarter off Well August

the for year. So

in on We're be beginning adjust sight a season we're those that, a pretty eye but that's now, very our good that in realistic. of think line we'll it. So, not, it's for what if an we the targeting, not for to think XXXX how we pretty know shape. a confident that be position we keep we'll are of goal that problem selling we've come should That's good got and we

this little of XXX step some the competitors a at guidance on points Okay. that promo side. to are margin XX I of up, that's And EBITDA down bit into on the a assume your then, you baked environment, secondly is you mentioned basis seeing promo point. the

That's correct.

Okay.

now low example, competitors Bennington, the at I mentioned their I Okay. there And believe, gross your some right know Crest, one XXs is of you margin. look then the margins, for just the one gross I teens. target if you are high on and in guess last

who us when So got get is to maybe of below expect know you market to through of you how that. already has somebody kind walk the that XX% number

Yes, eight very number well market taken has crowded. in you know are share; Crest that they

bought XXX XXX and I to margins that gross aluminum the think it OEMs them We in mid-teens. were Pontoon segment. was in there's pontoon

As I stated that before, few get XXs into goal our them to next and the years, are on is over low trend. they well the

we'll on November, first give specifics So you they're quarter call in we’re on already our but more track to that. do

that's to And you it, kind this again, about question. first Michael's think goes of back

already have them They've converted taken that we We five of already procedures, that the manufacturing their use synchronous their helps working the within and margin. and to first methods flow. gross months improve advantage that capital

know tooling. have like you're You are, don't products building they aluminum you when

can have change or any there, it's barriers -- driving you And getting rapidly you as don't perhaps effect as more so, far tooling. because new refurbished tooling

us that there. positive know So momentum you additional gives

Thank guys. Great. Got you it.

bet. You

from comes Wells of Fargo. Tim question next Conder Our

open. is line Your

This Marc morning. Hey, Torrente good actually is Tim. for on

additional morning. on and around how they Good the Just to of any performing international U.S. weakness channel strength, a us. particular few our [ph]? for are areas Any detail relative how inventory is markets,

know especially rescinded in were to support Canada. gave you fiscal XXXX, we So April. Those tariffs during tariff late that

in uncertainty factors that last the was by and a Western the like last driven big year, on off the Edmonton again. tariffs, elevated that's adverse in be a to summer them, it weather and U.S. pipeline still political elections. weakness I dealer Europe tariff especially given we year. XX% will feel there for deal week, be as market But the So believe Canada we dealer and is next inventory, in is impacted the or the good there. was import determined by support Canada throughout level

to real for continues well perform us. Australia But

we'll So I and you in determine little you better. of flattish. In Australia But that Europe Europe know elections pipeline feel to I'd about summarize a Canada, especially it. where in able pretty it. the know comfortable think good summary, is kind really we're with overall, through we good. bit we once get very be is Australia. And

the Okay, then and on great. progress with that and rolling going on you the the And issue out update operational then just towards could timing models. NauticStar us is larger

Yes.

So The in Hybrid QX. was about XXX the started production XS mid-year. XX introduced

development Jay, for You Povlin helm over at know March. he's I've marketing took growth is a operational seasoned veteran, driving organic and over in NauticStar excited and he’s through you sales focused seasoned Tim guy, initiatives, very growth. years. being in but Not and XX product about dealer and know only sales the Very additions Jay on Jay he worked on the in focusing industry with and

NauticStar. results We're and NauticStar George development got VP our you the black we're you -- divisions deep line operations of know on positive many at us belt, and a our month background bottom business getting traction I've on and of some and engineering, are the excited, Steinbarger and for once I a there at so know very we're seeing

at just or pretty you then positively good. reception like it either lastly, What the negatively? has has sounds Aviara initial And surprised Okay. been

the is great and and the years, and confirmed I the six handling that so, feel had only knew our that engineering our a for We're aesthetic and not in and superior the testing for products. largest and aspect marine engineers not I've magazines but of I known performance editors, at ran product those those of that surprised. We a both knew ride stern with tremendous outboard. who product groups a development of and to value, one long that. handling very drive tested it during industry time was product magazine world AVXX the ratio The the we time editors confident ride

is place, In the ought told run probably category. you fact line to they of in this best size some because product us, put in we've this a production second ever

MarineMax are super happy them. boats and to the partnered thrilled, we store, a we're just So, going around be are with different

miss a absolutely know experience They're relationship and plan, and excited. We've have the it long with with everything of don't the down have consistent sourcing several and you Aviara I very integration miss manufacturing budget to team, path do know our schedule a we Brunswick. have You retailed of is our marching and plan. along executed Tim marching right already, teams boats internal years we and in They're between, our in at we right partner. the it had so here, is kind right them right is engineering we don't tagline with

very it. we're happy So about

you Thank right. All very much.

turn I Chief remarks. to further any Executive no Terry McNew, for questions. are to call There closing over the back Officer like

Thank this again, results everyone thanks on to look operator. November. us We Thank to updating our Once joining you, in forward you. first you for quarter morning.

This great disconnect. you have may a does gentlemen. day. for conference. conclude Everyone, program, you in today's participating all Thank Ladies and the and