ProFrac Holding (ACDC) 21 Mar 232022 Q4 Earnings call transcript

Greetings, and welcome to the ProFrac Holdings Corp. Fourth Quarter Earnings Conference Call. [Operator Instructions].

It is now my pleasure to introduce your host, Brian Wheatley, Investor Relations. Thank you.

begin. may You

me Good Turner, for operator. to We you Executive results. appreciate fourth Chairman; Wilks, Thank Wilks, Financial Ladd Holding morning, Officer. Corp.'s us Chief With XXXX year ProFrac and and webcast are conference joining Matt quarter Executive Lance you, Officer; full everyone. today Chief call review and

on opening of Following the of in a company's March today's call business full year the company's to the access financial highlights my available remarks, of your the by a how to management available up on at replay webcast as as as will earnings until fourth call provide release. telephonic these XXXX information recording the quarter questions. well high-level replay outlook included be pfholdingscorp.com well before commentary on is More the XXXX. XX, will as and website features There

only XXXX. or that Please call of this note today, speaks accurate listening be of information are the advised of reading. information you as time XX, any reported that any no longer therefore, replay as transcript March may time-sensitive on And

including forward-looking on expectations and views contain this call laws, within future and of statements meaning of of the statements are These reflect comments management United the federal business ProFrac securities forward-looking performance. of financial States guarantees performance. Also, the may management's current not

could at sec.gov uncertainties those actual Investor is expressed tab the performance ProFrac's results, reader contingencies cause XX-K Securities read or and differ and also the listener to and uncertainties management's Exchange understand the and in which those Relations Form contingencies. and SEC other be forward-looking under company's materially Commission, to to Various from risks the on statements. filings and found encouraged Filings can or or achievements The risks website section with

to today the adjusted comments as of as financial certain ProFrac. contribution measures non-GAAP includes figures well exclude also The other

the included quarterly financial can which earnings and company's the be directly Additional comparable the press found in to are details and measures consolidated on release, GAAP most reconciliations website.

ProFrac's call the And Wilks. now to to I Chairman, would Matt Mr. turn over Executive like

year most listed Thank totaling it. the with industry, fleet the footprint support milestone announced a you, Brian. technologically NASDAQ, mining XXXX an our M&A in-basin was the billion advanced X manufacturing on assembled transactions in along and organization. capabilities sand roughly and for $X.X We to

As we businesses integrating acquired core is and our key demonstrated, have competency. M&A is assets strategy and a to

integrated volatility ProFrac our throughout Replace" XXXX, executing In successfully set and platform market leveraged and Retire, we scaling vertically to more building reduce "Acquire, consistent deliver this positions integration Vertical on upon cycle. skill profitability our while strategy. the

internal manufacturing capital capabilities chemicals, the frac Owning and fleet ensured limits enhances rationalized Our improved times value orders as efficiency. lead result sand shortened of critical inputs purchase production and supply nonproductive inventory, such utilization the time. and to for chain in

it allows to total to aggregate to and a a share way larger wellhead. critical us the the frac larger chain of our earned Furthermore, along control value is profits strategy. of share This the the

price from when improving us sand production serves by our integrated and and sales. sand and disruptions the in-basin competitive volatility market, combined with a demand baseload logistics facilitating fleets footprint from leading the Our of goal advantage, operational our insulates caused as

business to equipment. our acquired fleets commercial marketed with proppant, companies in Historically, logistics as basis. strategy we a on their these growth, with apply of those This aimed model integrated This and opportunity all materials. which legacy fleets provides to and ProFrac not fleets new the for currently offer has equipment-only distinct providing and XXXX, fully along uniquely we the from strategy always fleets service sold chemicals our and differentiates an

sand is profit this value being gross we amount annually. and could the entire be integrated in potential earned believe already To pricing, chemicals fully we much fleet in logistics clear, it profits in chain, the put value horsepower, providers at context, as the our improvement chain. throughout continued million of generate believe frac $XX profit by across as earning including To and a expect We today's the various service that business. aggregates

more as believe thus more also that profit We effectively cost the capturing them by of customers, enhancement can ProFrac that much providing do our savings efficiently value it and with and for a as chain possible.

our to recent Corp attractive with identify financially acquisitions Services demonstrate "Acquire, commitment and upside. of Services also Producer further Replace" our Finally, strategic opportunities and additional illustrates Energy Rev ability strategy Retire, our to

both we We in the that confident transactions. fleets acquired we these are can improve the economics of

our following this Well have U.S. Services. and playbook We run acquisitions of FTSI successfully

In a we acquisition. Northeast our also through the in presence manufacturing gained Producers expanding addition, low-cost for avenue the

be and a decision REV, immediately these basin gained rebuilt in diversifying worked be should fleets in can the to acquired and our we market. pricing critical and standards, what ProFrac determine of fleets, equivalent modern, retire to X further is Rockies, or process. In without frac to at the and diluting can with our foothold transactions, targets evaluating what made be customer high-quality that mix we equipment retired equipment what connection With a assets refurbished, element

efficiency, our certain quality add balance fleets overall the the but market. also is simple. to only maintain not retire objective decision allows highest to of assets believe levels of to helps and We us ProFrac's operating to

our other like integration an and and We safety, financially believe to in profitability, efficiency the nimble for unwavering stable in we and our on in deliver controlling links and By industry. maintaining achieving most critical Vertical oilfield. company customers, are to critical can no company is supply goal. chain we employees the focus shareholders the build working this our

like turn over to the call Ladd. I would to Now

incredibly of growth proud to Flotek, negatively sequential quarter and EBITDA round nearly performance cold of achieve weather an team's per that efficiency. the fourth generate impacted We're XX% our despite adjusted revenue approximately Matt. excluding in million, Thanks, annualized to $XX of fleet early fleet

we the to number partial from benefit and average of fleets our to fourth services integrated equipment, which increased customers. our of fleets provide we in Services quarter, model XX. The X for electric inclusion chemicals, proppants from the Well logistics U.S. acquired active through continue Furthermore, to a quarter

by approximately was quarter. supplied of approximately quarter the mine. Monahans fleets X/X allowed we XX% the quarter, to the roughly primarily contribution our the X% of compared sales XXXX. The This sand by driven sand improvement versus pumped the increase from During us full third previous to in frac a quarter

The closer goal is higher, materials XX%. to penetration even XX% increase our to or

the contribute our of results mine, for we the to and QX. see Monarch end came in online the will Proppants mine gains and further at So at to Lamesa recently December the acquired mine Silica expect which Performance

annual operating, of exit closing nearly in a acquisition fourth February, Performance X production major located the tons During and of the pumping throughout mines the will but X we quarter, we Proppants million strategically pressure quarter capacity mines with the with markets. of nameplate in-basin XX averaged total

I as must also for their commend well. the accomplishments commercial team

with the Proppants in X successfully team X fleets Tier of Performance Haynesville. closing the the placed acquisition, the Following clients

at In to quarter, these win-win rates the addition, the returns acquired improved fleet worked but team the many That fourth previously from with customers successfully recently below more provide U.S. ProFrac. for solutions market will were find Services fleets. in operating Well to

electric impact begin as to We next-generation the proud fleets, operate to future, late XXXX. significant largest and fleets such of excited the fleets to in demand benefit are dual-fuel continue under and in the industry. believe and construction, see from to about While full we we active changes number the We're of expect QX, fleets will currently we're for customers. quarter these the electric of we and our very technologies second see electric be these realized XE fleets in our those the

natural for especially lower possible, prices, has relative increasingly order prices decline substituting in fuel, magnified wherever of The costs. fleet. our to on gas to are recent becoming next-generation crude capitalize value sharp diesel on proposition the in oil completion Customers focused gas

customers. and contracted fleet As a in manufacturer from future. seeing or Tier dedicated place we're multiple on Currently, basis. expect X our fleet fleets to that in-house fuel an near opportunities And in dual inbound the we our to such of we arrangement customers first incredible have under deploy interest electric with a electric result, high-quality levels

are We ProFrac improving firmly cost to and the delivering of fleets environmental from our next-generation, while significant value fuel-efficient premium XX% offer reductions, emission that remain differentiate fleets ProFrac footprint. committed rest industry. Today, our which helps savings fuel of

combined have seen prices efficient less to assess continue business pricing over Service customers' the the have efficiencies a weather first we months. less last impact we the our response seasonal impact. course reduce of but develop the first impacted the with XXXX. levels our commodity over several In of will the February, the to is have XXXX. to quarter remained gas Lower calendar steady expected prices, efficient in in quarter through calendar The reduction to

Haynesville the However, high-grade improved in-basin we have and Ford. to in our sand customers Eagle footprint on capitalized

with embrace fully top-tier as of we has these markets have fleets operators. off added Our paid integrated

to Importantly, completion are in expect customers partnered with the we maintain and the Haynesville, activity hedged are and programs year. who throughout well

While companies service the frac to the dislocation rotating from remains the Permian. Permian XXXX, seen and quarter have market during fleets tight, gas in consolidation first for the by natural we driven basins E&P equipment of

In limited the of region. fully-integrated in ability have the grow fleets near our term, these trends to penetration our

committed offers bundling. material to our remain density both as of pursuing that work strategy full well However, as we calendar

sand as count and first of several active Permian we over a supply build call a fleet expect the and on result, the As have fuel-efficient premium of next to fleets quarter strategically a ProFrac in shortage in our months located services. reduced fleets our creates the

high are our we maintenance. delivering positioned doing the for. our we are In fleet so, known level to now, capital we to Right continuing service of quality is are that for deploy continue ensuring

are optimize fleets controls equipment, Additionally, regions, across on efficiency inventory to and both we procedures allowing laser-focused by all used levels. standardizing the our and us

fleets we to the we ProFrac's rest new make uniform expect electric today, of our year and retired As count by of fleet fleet fleets. build XX as construction our to of actively X grow mentioned total to legacy the Matt the we the acquired assets. working This the complete to brings end with are which we of earlier, XX acquired

for XXXX future. believe frac the for We will tight market and remain the equipment foreseeable excited for remain

create portfolio Although for the next-generation of believe year. allow remainder fleet mine of will the the maintain commodity financial expectations our our headwind network in a near we us and term, the sand market in-basin may to

situation where cost logistics cost completion us combine per fuel optimize a to foot ProFrac best-in-class pricing delivering achieved mutually while generate our and opportunity beneficial sand efficiency all-in significant for lower operating premium enables lateral The customers. still to savings, and

and want appreciate thank work our could finally, all you Thank employees. I so this to your Without of and all of I you. tireless sacrifice, none much, of And possible. be

results detail. With over and financial call in that, I'll he'll to Lance review the turn more our

Good the we progress Ladd. the everyone. results and during you, our to made announce quarter. morning, Thank We're pleased fourth

The quarter. improvement by sequentially. slightly the revenue fleet consolidated sand increased basis, by for of average providing active count pumped fourth by million, was higher $XXX a driven efficiencies up our in during XX, the XX% the revenue was On lower fleet, of quarter almost an offset amount a

Adjusted the quarter due of quarter. Flotek overall Services $XXX excluding fleet quarter, for EBITDA, Annualized the firm from was were slightly down $XX last U.S. fleet was third pricing from million, per adjusted EBITDA the million when under Well we up them. the profitability that to lower acquired

totaled billion, revenue million. excluding year, Flotek adjusted full $X.X the was $XXX EBITDA and For

and I'll various compared revenue down The million fourth EBITDA million Adjusted generated quarter an active of profitability Simulation billion the fleet Services $XXX Well efficiencies overall. on the year. quarter. for was by by $X.X on higher amount fourth and $XXX of offset was U.S. quarter drill increased million in the for sand for now by segment segments. business our fleet, the to providing lower Again, third count pump fleets and this $XXX our driven

to we fleets first average the As fleets. into we approximately quarter, increase look XX expect to

and an increased and which improved sold. Proppant segment of approximately increased of to The Production quarter was million, fourth intercompany. was in The tons number improvement XX% totaled the attributable $XX revenue XX% pricing

from Our was in provide sand full ability Monahan a quarter to part more to due the large contribution sand mine.

for expand the acquisition. roughly the quarter, full X in the $XX Performance as we will quarter, The additional add first adjusted and mines to million. X mines considerably profit operating the acquired quarter segment XXX% in we EBITDA For grew

generated. addition, which on improve will revenue, EBITDA In focus we total all to improving utilization cost continue per of ton mines, ultimately, and

As expect we improvement we we integrate build profit profit best-in-class company. continued as the mining segment, the

resulting segment revenue revenue up headwind fourth pressures generated as continue $XX of of X% this to Manufacturing up prices the its it higher segment this larger acquisitions. material sequentially. Cost be absorbed recent in cap the the of XX% The quarter, raw Approximately was production fleet intercompany. a from products as to and the it accommodate for ramps million

million. $X.X negative was quarter the for EBITDA Adjusted

Looking QX expect increased the normalized sales exceeding quarter profit forward, at levels. we volume first with levels to have or

quarter, expenses in $X and excluding profit Flotek the of corporate the build-out perspective, million our increased quarter. expansion segment. and to to fleet $XX our related by SG&A, of a of the for fourth the stock-based compensation count this From acquisition-related Approximately million driven

our total the acquisition million. a basis on facility close $XXX the term balance, was upsize to ABL Flotek debt and loan recent of year-end, to attributable Performance draw for At balance $X.X debt excluding The amounts our our Proppants the pro on total billion. is approximately forma

power from well from on and current commitment expense the as to loan upsize run million the this our increase commitments month. and interest $XXX million per We $XXX strong by Based of creditworthiness annual $XXX rates, million lenders. believe million the ability underscores interest roughly business our to our an as $XX the equates earnings facility of to rate ABL the term

importantly, beyond to profit acquisition capacity will earnings the benefits believe our segment. More the and goes we significant Pressure Performance Pumping in production provide potential

we mentioned, those of to Ladd started see already As benefits. have some

Operating the related flow was capital which cash million slightly build, $X from Flotek. by million to down quarter. $XXX It the impacted $XX of was million approximately working fourth an quarter, previous approximately in

for year, excluding were expenditures capital acquisitions, the $XXX million. Finally,

be expect XXXX, For in with we expenditures our to levels. XXXX capital line

Although consist mix. different will will total of slightly spend similar, a it the be

approximately X to the XX% We the have budgeted fleets. constraint electric complete of power

and well our our allocate for manufacturing XX% We complete XX% and production roughly also initiatives initiatives growth other segments. expenditure expect budget in upgrades to engine to proppant various of capital as as

to million the XXXX of $X.X budget fund capital between expenditures remainder million will used and per estimated to maintenance be expenditure be fleet capital $X The per year.

call turn I'll now the back to over Matt.

with joining conference time one, with chemicals key for equipment. markets and I takeaways: logistics a want If here and successful, leave and all us distinct pressure margins. production growth listen you offer been provides to This for sold proppant our taking pumping everyone allow the our proppant, across today and fully new integrated along footprint key will thank ProFrac's our to fleets with expanded we've service call X to opportunity significant will results. to

that integrated profile and vertically a differentiated business can return model is our deliver through therefore, Two, resilient profitable is [indiscernible].

on execute scale, by commercial our operations. Replace" Retire, our We efforts. continue to "Acquire, success the can we And improve utilizing of these

ready are questions. And with that, for operator, we

Instructions]. [Operator

line Gengaro of with Our comes first the question from Stephen Stifel.

for things two guess I me.

presentation, this morning, completely EBITDA in have the rate 'XX. illustrative bridge. to Just you annual your -- just this And you wanted run bridge sure -- from put of I out you make I XQ understood sort

the XX rate that acquisitions of where used. and those million, drive from? I one you think XX Producers think I e-fleets that of run incremental REV plus XX X is active Or of the a and do kind $XX Is recent the fleets fleets? of come fleets the elements EBITDA

at operations the the fleet of per fleet EBITDA? XX that the And embedded year then of line sand part that from a per the of guess I in the separate of kind impact second profitability is as question million

No, they're separate.

then see added tons XX bundled at active and offering. expect additional which the per on of we new when as capacity of additional had come combination disclosed active we the an And fleets fleet. million the the planned see sand of the we've XX those from well a as And electric -- acquisitions look fleets, each to fully side, pull-through year on new have we a as that builds the so we've

$XX to of as have when pull value with year annualized that that you own that's each there's look chain, and value you services, much the believe that bundled a and through. -- If associated at the you part it down break you we full ability million as that chain

these our worth. to really We've value that. great being really, really able excited companies the that. what smaller And sand on really takes of we're of this do million And to we're about So capacity total. also got just mines XX.X out that are there comps tons some sand showed about assets excited

Just XX million excludes for rate those EBITDA to active clarify, sand? fleets of the $XX.X run

right. That's

Great. Okay.

The -- appreciate it. the question color, thank for other and you I

general be is lot do longer-term about then where sort acquisitions. How delever of question to plans the capital? you world debt made return strategic -- and in levels debt, in that comfortable you're of you nervous have a other about good any And with? investors seem and you've a think to The

we -- see look remainder a certainly the We're we run at process this of in the with total be think of that shrinking that and rate we generation to we the that flow expect issues when Yes. having the But amount look don't leverage. the as will of see fully But year, any we our cash deleveraging. through with when the cash generate, us at issue. we flow the

of question Pant the Our with from comes next Bank America. Saurabh line of

had quick I question. a

of we market. supply out talked some think about I taking the

You're obviously retiring fleets. X

REV the you also of acquired supply that think the X in the think of I I say are transaction, our Permian. fleets you and reducing Producers in heard I you that plus,

capacity to that if how be That from same you're that? helpful. you in so are out page retiring/taking talk market, the can So much just just would that, the on we

Certainly.

stayed consistent through of our when that look overall we've go our quality, at the for is first upgrading horsepower, the any it. cost Replace." and so the acquisition, and So going we on And plans upgrade part looking ability and Retire, in to we at the "Acquire, of it

or process should And we so evaluating we go if retire. of through we whether a should careful

but individual so -- so fleets and quality of on an pump fleets not some the necessarily more these And based on of some basis.

at just you pumps, them. individual sense it upgrade or convert go in look when these you doesn't to make So and

market. the capacity and elected so we've from And to them retire take away

thing prudent do. to a it's think I

the equipment. that is never location and we And compromised on sure our quality of by quality service the that the execution the have #X priority is make

there, make we out standardizing our make employees. the -- We job. the want we what what to that our customers tools as best for well on sure everybody also our has to available as have to We focus

we made choice the that mix. So to X remove from

seen far seeing our as the Haynesville, an very and activity where in really with asset the we're gas the our the Ford, we welcome strength Eagle actually seen we've customer with overall as natural the warm chain, that footprint fully seen the of we're that the increase and that base seeing from on And there. from allocation, then Northeast; like developments We've supply we tape we've target. a customers aware the and our

reasons we know the that of developed. think them Permian. number many have there's And And with have back to back that, west peers that a those fleets them may our areas. -- of taking taking to the We that from pulled

so our bit what frac supply shuffle and the that we're as fully will really to results And a bundle of expect about excited we're seeing our continue services chain we there a around -- and see show start in we're little out Permian doing fleets. to will our

We've with packages reason, frac new more taken these our products. view of are take see that us focus decision that customer And that rates to exclusively And fleets a it's base that slightly a a position an many to can would expect we we that sell that allowed so customers for to to horsepower. so utilization now make our on easier lower offer have through it's horsepower us products for price.

Okay.

fleet. right? the So your XX back No, Obviously, basis. there. part looks required annum lower But you how right, at It be just right? XX Haynesville think makes X, it's math, much about million service tons can to strategy that sand to of X.X Day on And capacity, I at Okay. envelope vertical quickly just effective sense. going no this Obviously, than surprises look you that of and an the that was I'm if integration on have, capacity then from nameplate about of like per fleets per sand doing the strategy.

Is right? near lot in third-party medium the a selling versus the you over have of over Haynesville. strategy? right? to about upside challenges, term, substantially means fleets that the companies? term, the that to of pressure the I we number think increase But Haynesville pumping you can deploy medium potentially But understand should sand footprint your term, your can How in that that the

there's tough out it's with commodities, a Well, markets. just not recession environment a the coming. the I broader there, one also but potentially mean just

on. this crisis crisis, got You've this that's banking going

regions. looking number Haynesville. So we're very to could approach. substantially more be the on of fleets assets a in we higher of taking not theoretically, But too support We're cautious deploying to a any these aggressive

We're really especially markets to own playing make the seeing mistake, we're long-term of and coming operators by capacity no offtake gas this close this like their we exports. what love these believers on. end decade that's secure but export chest, the the with see We the LNG with agreements in

a a and that that think sure we relationships term. important that reputation to these markets that to short so doesn't of it's we stay little And committed the in we really those bit weakness maintain make run have from

that's And getting that of don't being I rewarded that operators, fleets, but we too many commitment couple too more actually aggressive we've these with with additions. think of anticipate level added a

Daniel Energy Our comes of Daniel with from question line next John Partners. the

day I can working choppiness, basic few -- tell given of initially. any right the for count just is just if it's what sort sort got count I the given guidance fleet Matt, questions active now? you but us on the the a is, will, typical know you of

as guidance Texas, the the we've in indicated that able been there's additional to in any QX. to So West on and Northeast. provide looking the that Haynesville we're in not some as We fleets pick we've well Ford up think but and softness Eagle

it that signs entire adoption is think And successful with pretty these we've pulled supply markets focus and to see our balanced smaller I So chain in West been the in a through, got main overall, of Texas. approach. continue getting very

chain way tightness of seeing all that are and to the all the with about through business benefit ability the full our there, the parts with we constructive the is fully-bundled sand like market included. very these in out we're that value show do we a what of And pull

with exit today. XX we're with XX So is XX active fleets what exit for guiding -- we to

choppy the enough. half we back -- in that assume a do The year. of the Fair have Okay. market let's

consolidating an that prosecute do -- is thoughts market. Or at have costs good guys for there. is of just you to been You on -- very flow? for to integrate deals? use Do focus the from you balance this story and that ProFrac opportunity more the the Just for as cash you year think

on is our in at presented. today always as we're put they're focusing business But it opportunities our And position. don't We've and concentrating and on we'll we our that always to contrarians. markets go make we and down them focus sheet. So our balance carefully as a looked have sheet is balance explore as been opportunities precarious in and evaluate sure

this final Just is then are Or as is And any Okay. as it just nuance seeing one the versus dual trend there? people? you're me upgrades the At both other? X for customer for preference fuel you the very electric just build-out. well doing between point,

Yes.

where that infrastructure higher think you've better the down that exists. gathering gas got to all regions your got gas. comes for I lines, you the areas look the dry to pressure at and When different supply you've the infrastructure

excitement And so more there's of each in a There's flexibility a how lot approach you customer. overall. lot

the diesel. is displacing think just theme main I

but area I got think you And for, lines. pressure for at markets their you've operator money that can with gas, that's associated when the some completions. look an lower of the on single look saving biggest --

high-pressure lines infrastructure to that solution these a you have to more need this that isn't to because got you've the readily available. the so platforms bring to can -- make platforms table make to available you run these And

Don from Crist with Johnson of Rice. question the comes line next Our

utilization? the I at are Obviously, appreciate capacity touch legacy the in. be that plants sand wanted to on and you can have assume little similar to the a that I coming bridge new on going But the operating bit side. margins we

first we with -- do we structure forward. that the historical So we free through. the like work the volumes I certainly really seen and the market. go is And when them carefully We've expect have we we we customers. in of we going tremendous the look that any then at think existing that see from what we so not performance we thing this, can these And assets them pull financial are that any way

When our at see you the part picture. financials, you only look of

fleets supplying existing profile sand, on bundled bundle when only you are full have that of our fully those on the fleets on the of of those fully a profitability X/X that So fleet, bundled. are we're have And much we fleets. higher

our full get the on you're you selling and have, an would highlighting you your when utilization incredible value fleets Again, through, chain logistics chemicals. pull-through products the can like get can incredible that include sand, which

fleet. So having a on utilization percentage goes low potential through and well And such incredible. on $XX fleet is that quarter-over-quarter has we and seeing service QX being pulling in offering of a high EBITDA reach it basis, with over a think annualized growing the per bundled million fully that to

a pretty build done I progressing Lance. appreciate Obviously, and for thoughts first been just from again capital big bunch balance there. see just build of 'XX, working through the do as you've release as XXXX you the year around color quarter. capital And we probably more the acquisitions of through through move But one a the in working there's see a me, maybe here? for will How do you

quarter, expect Yes. in wouldn't for near think impact. I first term, I big the I the mean a

our number the think use capital. I fleet you be As our year, obviously, the the into efficiencies it's through reliant fleet highly integrate working materials look of of our as of will progress we on, of that the to pricing fleets, fleets, a

year. would significant the so into don't that going And I know a release further see to expect we

'XX, we a saw in correct? as not build But as big

in material count, but you growth, things of overall 'XX, had pricing I integration, just fleet growth, not had X mean you a had happening Correct. percentage efficiency Yes. you had basis you you year. a lot on had --

each the with quick you Yes, and on with one the that. an work is the the reconciliation operator, smoother thing invoicing better Whenever the customer. longer got is process -- real you've

relationships so timing to each as and significantly working of And tightens and your payment. establish we the of the appropriately, new reconciliation those capital and relationships -- continue the up improves

remarks. closing call questions. have all turn to I'd the for we is the management time That back for like to

for showing environments to an possible. we We of look We their apart basis just these model of integrated to business as thank thank that is this we types a the on XXXX. allows set this and resilient we incredible our very the a model outperforms cycle. where why the choppiness see hope together and everybody as to us stakeholders. questions and that It's where much 'XX relative forward us good call. doesn't and of We market ourselves cycle on of. put exactly gives all the business Appreciate capable look value our outperform very delivering times show successful in good captures business a -- little a a show that business through but full vertically chain is in It a what

everyone, and day. that hope appreciate great have you we And a

Ladies conclude for this does your participation. teleconference. gentlemen, Thank you today's and

may disconnect wonderful have lines your time, and at You a this day.