Atmus Filtration (ATMU) 8 Nov 242024 Q3 Earnings call transcript

Thank you for standing by. My name is Kayla, and I will be your conference operator today. At this time, I would like to welcome everyone to the Atmus Filtration Technologies Third Quarter 2021 Earnings Call. [Operator Instructions] I would now like to turn the call over to Todd Chirillo, Executive Director of Investor Relations.

You may begin.

Kayla. you, Thank and quarter everyone, the Filtration Atmos Good earnings welcome call. third XXXX Technologies morning, to

on on to any and the for On today, information reconciliation website and of disclosure uncertainties Jack be the our Executive and affect that of Kienzler, Chief results. Please call our forward-looking expected could Chief we could have materially Financial risks Officer. Certain results refer involve the presented affect will measures our to Disher, today referred and Steph non-GAAP call. our slides for risks that a Officer;

For and our additional pages information, website please Investor on see our SEC available the filings at atmus.com. Relations

to Now I'll over Steph. call turn the

Thank you, morning, Todd, and good everyone.

markets. solid despite our work quarter team hard these in consistently The of market another our Our in global first-fit us on allows continued results for dedication performance products delivered even delivering technology-leading challenging employees and the of deliver softness to focused customers weakening aftermarket and conditions.

I update growth our strategy. for then the highlight performance. our the executing will outlook On additional details progress provide provide year updated performance today, about during Jack quarter, an an financial call and share the regarding our will

with priorities. capital on comments begin our me Let some allocation

our core filtration, are on in our and this growth We we'll growth. expansion into fuel focused industrial continue to business both and capital allocate to

Additionally, share allocation. balanced repurchases capital and quarterly to dividends our are components approach of

incentive repurchases share $XXX last for offsetting shares the minimum In long-term the part a of opportunities quarter, from $XX we of million assess with we annualized to announced continue compensation. as million We quarter. dilution third program of repurchased target

dividend of cash per paid share. also a We $X.XX

million third third during of was or were $X costs flow quarter XXXX, was million period outlook million year. million $XX million of or of $XX period year, excludes was separation-related for Adjusted the quarter of compared and last compared Adjusted onetime the items. share cash to to XX.X% period. cash earnings third and million for quarter $X increase results free financial let's quarter the the prior EBITDA updated Sales million free $XX and per excludes $XXX X%. flow the in Adjusted adjusted an in for to Adjusted same stand-alone XX.X% last same in EBITDA onetime $XXX the approximately XXXX. million. Now $XX our turn $X.XX

progress milestone as expect made the company. energy and a operating transition We enable have end for XX% We to completed is with year. to focus substantial transition complete XX% company have moving Cummins be growth. fully our to and on by significant This agreements stand-alone of a from the estimate will of service transition our to this us

provide our let markets. insight aftermarket. Beginning Now global into me the with some

we continue trend see soft seen throughout We freight to have a year. the activity,

activity prior show destocking allowed softened line Our tailwinds and gains to continued Demand of market with U.S. The than with coupled share from while year China offset any expectations, outperformance us market softened resilient. medium-duty first-fit India demand weakness. market in U.S. signs remains our the did more not rebounding. in in heavy-duty

aftermarket. the our I with outlook. to start Turning will

have grow the progressed opportunities through challenging our we revenue in confident have to we As conditions. year, more market despite become

our approximately compared up revenue X% be to We are to last global expecting overall X% to year. aftermarket

still have positive a experiencing in and seen seen the we inflection. we year, throughout activity have yet are As not year-over-year freight declines

business reflecting expected continued wins. continue outperformance aftermarket and with market agriculture is activity, to be our our soft to along weakness our approximately construction, expect our We global the X%, markets. conditions, in to expand mining the off-highway, freight we and down execute growth as Offsetting X% markets strategy for new

X% Adding growth. benefit year-over-year. will contribute to related destocking be X% of aftermarket expect additional the revenue to revenue We to outperformance our market an growth

chains supply from destocking were XXXX additional Pricing as is not increase. This is year-over-year normalized. also You customers may an to to recall X.X% expected our through provide activity XQ repeat. expected in XQ

the of our view with for markets. in quarter We down anticipate fourth turn to expectations. the first-fit now of industry In to the full U.S., further unchanged, heavy-duty Let's year. X% softening XX% our with in the market expectation line remains

Our up expectation up to $X.XXX X% raise sales in market the billion. year the be compared Overall, Demand guidance in of revenue we at to a X%. expected continue range is our to confidence now for market an our the range in $X.XX prior medium-duty unchanged billion trucks with to us gives anticipate flat remains China. outperformance weak India to and in global to X% to of of continuing expected conditions to softening, continue

have strong in be our year, throughout XX.XX% of to adjusted EBITDA performance we operational the an margin raising and XX.XX%. We delivered range to expected are

also in are range EPS raising to outlook We $X.XX. and now our a expect adjusted to $X.XX of be

growth. Now for plans would I to our like discuss

During unlocking both we long-term together a company. independent quarter, the third vision on strategic for brought as opportunities enterprise global to our our fully leaders focus

has team strategy. on been executing growth Our our

As are strategy. to X a there reminder, our pillars growth

first Our is share fit. first grow to pillar in

account resources rates focus are business opportunities capture new further and increased allow to realigning for market organization our on management resulted first-fit us bid to We to in growth. teams share. our adding This and has will

the OEMs coupled crankcase for partner and reorientation provides of us continue growth, leadership, We world. with technology new expand continued we and industry-leading with in ventilation around to The existing as the with with and the opportunity with are winners leaders fuel OEMs. to organization our filtration win

accelerating is focused aftermarket. in on growth Our second pillar the profitable

year challenging through to our share aftermarket. conditions outperformance Our market demonstrates the in ability this grow

when deliver growth, need them. expanding allowing are to Fleetguard partnerships customers for We and adding our continued products and where aftermarket us

opportunities and sales Fleetguard also a analytic advanced provides our generate new products. leads. to customer Atmus of digital increase This dealers identify upsell team and tools for have for cross-sell win-win both implemented to and sales We our

Our third supply focused is our transforming pillar chain. on

We our dedicated own supply to transition to our are continuing network. chain

through dedicated quarter, Atmus facilities distributed facility being new Kingdom, warehouse This we a XX%. volume the increasing to United opened approximately in the

to which provide allows point, At where improve Fleetguard our availability them. network. customers quarter, European our the on-shelf substantially customers our fourth our and products need volume with Atmus our Controlling During to all distribution own our go the and us through we anticipate remaining when will distribution facility transitioning network. network

transformation proud distribution I delivering network during the the results. our quarter. Atmus team, simultaneously all-time of distribution am metrics delivery we a as accomplishment, availability high achieved transforming network. is and Our while delivering significant

of we adjusted margin EBITDA chain XXX organization. Atmus through our Turning reduction to our performance the to At driving basis the Adjusted by the expand expect end of another the significant achievement since points are cost guidance, team. midpoint transformation efficiency. EBITDA supply chain the demonstrate results supply efforts to continues of and XXXX, we the

is pillar to fourth filtration into Our markets. industrial expand

remains focused strategy filtration, acquisitions. Our inorganic industrial primarily on growth through into

industrial a at liquids, water As water. reminder, verticals: industrial excluding X looking are air, and industrial we broadly

take X continue in We disciplined approach verticals. to pipeline opportunities as review we these a a robust inorganic expansion for of

focusing We launched filtration organically. to in expand We have industrial products on been multiple grow to also organically. opportunities recently

this opportunity for While we continued are in Atmus. the growth product early demonstrates stages industrial another of for growth, organic

will discuss detail. our Jack more results in financial Now

X% X%. was year, Sales Steph, of you, to of approximately primarily pricing during by morning, million quarter X%. of The X%, in higher Thank sales partially foreign $XXX period performance. good increase same approximately and the $XXX offset everyone. We increase and driven by were of volumes an last another exchange solid of compared million delivered financial

an for third third the many of outperform to compared quarter our in million, $X margin markets. to of XXXX. global Gross continue increase $XXX of quarter was We million the

the unanticipated $XX year. million delays as the separation in free year. Adjusted million in $X.XX completed the the these team of expenses million costs quarter as Adjusted $X $XX and million In $X.XX in in compared third per the quarter quarter venture stand to our or increase same lower compared XX.X% $X end our continue last separation million, are same higher due and $X was research Free year. in by of in compared resulted costs $XX Cummins, $XX people-related $XX or period. and production increase complete $XX previous been of of our separation costs cash separate to adjusted than Onetime to now for XXXX Adjusted by costs and compared up million stand be Joint higher to performance. an period from of XXXX last to adjusted the flat incurred This to was manufacturing higher year. $X the capital XXXX pricing, from earnings XX.X% the over quarter, quarter period independent onetime flow costs. originally the $X we flow driven prior offset related this compensation to in for million our substantially technology partially consulting income our cash volumes quarter costs prior of million We Cummins the variable of and administrative be from prior EBITDA and partially facilities, $XX we addition as systems. third will additional million year. believe we benefited costs by costs this the in compared to Mexican EBITDA to range information third million incurred was anticipated. functions primarily million lower and the in was stand-alone foreign year. excludes million we own The We million costs. Selling, in share to $X third the to were by for also has up by costs, commodity expenditures exchange, onetime the for additional offset

to million capital expect XXXX of this in and expenditures onetime be end year. will by be of substantially the range $XX $XX We the in million complete

for the quarter, with terms from settlement stand-alone was adjusting We million. move free the capital intercompany $X with In cash adjustment are inefficiencies Cummins the the associated also flow to working third practices.

previous this a discrete quarter tax unchanged was inefficiencies of driven in outlook. XXXX. items, effective these mix to foreign favorable XXXX to and third which earnings complete was of The between from XX.X% during expect our approximately decrease be operations by the $XX compared total and million, The U.S. year the XX.X% quarter. occurred and for rate the in change We

our it the million the facility, cash on of available million with to have to combined million let's operational the our our liquidity. We provides capital revolving of us $XXX growth flexibility $XXX full of with execute $XXX Now and we and hand, strategy. turn allocation credit availability ended quarter sheet balance

X.Xx during EBITDA ended the for and our and XX performance of growth deliver strong third of our a global for September to want position to value trailing resulted debt months in execute net I to adjusted XX. In ratio and continuing the our cash quarter to on has thank continued Our strategy. closing, team XXXX, customers.

Now take questions. your we will

Instructions] the with Jerry line Goldman Revich Sachs. Our first of comes [Operator question from

for quarter. Steph, talk puts expectations just the wondering if and about the takes could you fourth around

operating your excellent of looks by outperform generally and like really like performance efficiency revision looks folks extent had the third targets. it the quarter, beat, margin continue You you in the the to

items just are discrete quarter, given So choppy the sure we environment, the room execute? we or fourth outlook there make any for impacting to have to the want

second expect be the for quarter. with top that just expectations Working element sequentially what's the continued quarter we ask business. is the heavy-duty drives Jerry, market question. the And around fit the I'll then and XX% start about talking first impact driving Thanks, business I us and expect to fourth line less us Jack our the truck might to and And that. in downward sequential we aftermarket. point impacting in of fourth through walk to -- margin days through XQ things from the for working flat amount margin a days. I of side sequentially relatively the XQ. of out a do our bridge I just market pressure you X point revenue just would perspective, would our sort decline on given guess a continued in to significant particular I

downside, bridges fourth some to third obviously talk will margin. volume how that quarter drive that here and which of flow I'll the we Jack you quarter saw margins. will So about let impacts some just into to in through

Steph. the Thanks, question. for Jerry, And Thanks,

but volumes bit So kind is walk a from would about from a that. about say, first I just from hours, QX lower sequential It the also as the profitability piece, the Steph of with that lower will see of line, our the we top we production impact outlook. think talked a volumes, QX from Jerry, into standpoint levels drag

over $X outperformance had second The as of markets rate. have on first year, here, accruing the from we million aftermarket, is and come a the a a we And QX seen compensation half the truing associated little And that higher softened down we outlook recovery in our therefore, up. piece variable standpoint, based has a in that been at variable compensation bit. the haven't had our benefit with

helps bridge the into we And I think And margin. repeat little bit to would expect sequential a that so fourth obviously, not that quarter. of

can about the going based and around of you opportunity And on, where any as help even think but pricing XXXX and that now, what up It do 'XX? adjusting on end for the developments the markets and does. other profile touch in to you around margin and going that. X can, so just you the performance new do for those are margin reductions to we color profile, cost visibility have what versus I are I'm and appreciate puts wondering, pieces, strong obviously, have views months, far, some we'll through for they're takes visibility and the 'XX takes material when us expectations you puts firm if

Yes.

the for thanks So question, Jerry.

I our that, confidence which But some guess, give of position sort in you being at a how I we're guidance to couple on of of to things. to and into end straying going without able feel to stage. we to Now sustain XXXX forward of this more XXXX, -- try color a want give

how talk the I see just and about expansion talk to profile. then our margins how sustainability that we've the me been margin broadly we about here achieve in I'll feel prior confident able this And that of about that. market of in out the of also year some that impact Let may to pieces as playing

common and outlook the our with will situation bottom starting and into of sort unusual in markets same both of the first-fit the the at we aftermarket. that the side. be in the wrap up of a market aftermarket and It's so of as we've that for the And quarter know, in longer-term of fourth not the cycle the them period been cycle the the of cycle time. head XXXX, bottom And both are as at you of on at a down our in

first a the to at half. for around with prebuy of waiting XXXX, customers to to in have XXXX fit view continue back the improvement inflection. point look fit at we second in levels the waiting the we half from as expect the some views lower discussion we a be our So and industry been do of through some driving possible first Aftermarket,

that be and seems think it we thought originally be might I July, to dragging out.

a end us. margin better we do really the turn performance greater call Certainly, of stage. in some of aftermarket in so market And expect that to Very positive the aftermarket. difficult conditions at markets this for drives Obviously, upside

So that's of be we mindful XXXX. as something turn to to

just are market. comments those the some So broad about

job I XXXX And we've a throughout head margin able out give and on a we in sustainable about of think I into turn team being as future as specific guidance as margins confident to just I our call. our to a expanding story also XXXX XXXX. done we'll a XXXX, update be and feel really further terrific that of

next line of your comes with Mason And question from the Baird. Rob

in quarters but you one stronger it seasonal I'm seasonal that looking at to just -- should Steph, their, quarter versus real we in up if have time. first look the your or framed follow visibility -- first quarters at it, in sequentially, moving quarter this seasonality historical? first. downturn But the for have from typically, point fourth this a think general, somewhat are this we is curious might how just how enough about feel first-fit the I'll 'XX, Maybe sounds to just of on you like growth

a good lot Rob, know I I Okay. can to more said. Look, what talk just that don't I you. than give color

been differences, no tailwinds we you've longer would in prior taking that this We see same back are throughout impacts this from year obviously, half. seen there we're to place. the did positive we've think seen the destocking, expect I seasonal We've -- quarter see year. some that

pressure be I'd seasonal to half, still expect implications, market first-fit no downwards first but the that our see broadly, you So on impact this will something will doubt.

for us seasonal than just I So drive I the activity of think high The exposure us, our of that XXXX wouldn't thing aftermarket. relates given only sort more days. just heavily movement much probably of -- our It point XQ say. in expect a to I does referenced expectations what I color, it selling that is XQ lot would as other drives out give quarterly for to it really to terms

the breakdown And did to, as follow-up, have where Yes, again, a goods those split just the in you yes. that they come spoke of Very higher. SG&A? of cost Do onetime you -- good. and costs a between sold

ask Jack I'll one, Absolutely. respond that to to Rob.

Yes.

So up million and in is as quarter, of a cost sales I $X $X just the third bit. million think million $X for is And SAR. expand little maybe I'll the about in

separation are as IT separate to expectations overage onetime Cummins by So from from to Cummins. related as costs The as driven chain relative primarily the a facilities well supply primarily X projects we original is related reminder, things. costs to as costs our

cutovers. delays is in first IT system The

system it's to quite You imagine navigate can cutovers. complex these

so And move to risk quickly, are we balance that right ensuring desire we coupled the mitigation. strike with between the

seen on so few And that we've a front. delays

The our behind specific the August. would a thought quarter perspective inside that of was increase originally facility Mexican and second flipped primary We this legal completed separation into It the here. of production QX really happen Cummins. is QX, and really driver from in that, that from

higher that's to slip costs -- And now clarify, standpoint about completed. related that's Cummins. a And just X-month from transition which so there, from in service

QX. And complete of substantially And see so as with we do step to here a again, XXXX. you inside should those I down in expect be noted,

question Capital Markets. from with line next the of Northland your comes And Bobby Brooks

maybe And discussion where and in might Europe maybe remarks, even you little what any maybe that I you there's just internationally strength bit a just the just India, on and signs little, softened APAC I more, cooler. a your maybe -- for versus you prepared more curious you're some But know could rebound first market XXXX. and no mentioned more international be in in curious a was the break markets down business. to talk to hear contrast China. if that's of little big seeing compare broadly. a specific focus And about -- get markets you

the for thanks question. Bob,

India we're would build to a so very quarter, spot my I some think -- on performing I remarks. also described would I would have quarter Previously, from here, did have downside all to strongest from of say would India. in pretty a bright the perspective. find I'll say it's that the have We the outlook spoke in market last I softened And that hard bright So And the now. the And over described last you seeing global be perspective. market has spot still markets opening as and the would softened last. markets since I of much we

So spot it the actually or would certainly next Jack bright are I see. so. be in I week there and the that traveling

we'll And better sense so on much a that market. get

We have very as a joint strong and venture operation a reminder, market leading there, position. a

material to moderation in because see in cycle Europe. partnership markets. India to continue I at just expect if XXXX, then continue we down be So relative did I'm innovation. cover and to seen still I the expecting we're looking other to that outperform our first-fit in less how same provide through us challenged that for opening decline. of China And market be Europe, don't we to benefits we we're the China throughout product it international deliberately and the with to us Europe challenge from year. this perspective. certainly But I expect throughout really And do to strong market We've in an challenged. seeing some is our our the come

to really XX% not but expected full back decline great from I a the and there. around a it shoot came seeing for year, an down still think down XX% bit year-over-year

in U.S. we challenging home the do I market market to for at working internationally and a to think market. And here what are in continue it's the sure, is challenging So conditions to outperform

guys question margins. it. color. And to And is the kind great how on it's Got tough That's great despite next just well you winning hear that of backdrop. are

benefited a for our to footprint. So sure of taken be Atmus, some by for continue manufacturing We've initiative. improvement strong there really point the that's across

is your that a us what maybe Has a But now on a line fully been initiatives. where curious of first Obviously, make line what fully just specifically and cartridge round line. executing of don't where the lower sense. is the that success was I'm elsewhere? labor cost most trying sense automated in regions much next green that margin is to enough large So team get France, automated expansion contemplating

question. that for Thanks

automated most X in we're Let me highlighted green our certainly, our We example broadly as is automation transformation great supply as scale to where the about of much manufacturing line. firmly an And with how of is we pleased larger continue ongoing operations. the on terrific talk that of And a really operations. and cover our to that the just scrap cartridge areas line, benefit this them, part our the do And really chain to which delivered. able implement of is fast seen area -- be operations. that learning organization build that we've manufacturing within strategy capability a our across you

So the I into continued unlocking see us part a value of future. automation,

had we've pleased through been that cost -- of to have benefits purchasing, achieve some input focus We to the on our with a with our I've our costs, able work really working and they're about see that, improve been supply opportunity suppliers another expansion. delivery how to further but I thinking chain our part of big and do the our that's in the that. benefits And certainly, able wonderful team, purchasing of been to be

line with the Zakaria your Tami of from next question And comes JPMorgan.

clarify, you quarter? to positive volumes do in seeing fourth in to wanted I quarter-to-date of are expect terms you the so remain What volume?

Yes.

for think -- volume fourth our me forecast bearings we here. quarter, get let just the I my So

I would downward how putting market we it. to see I Tami, share think describe we conditions do on pressure certainly our gains, that. expect the continue But is

out quarter. in a of sort third very here the what it's So to similar played story

will fourth from further in the my that I think do quarter, a -- the the remarks impact us then that days was out point sort previous first-fit. this and declines side expect we additional only in X and in thing, heavy-duty the in see one selling we of is market my I things of

it. Got

Okay.

you helpful. is, magnitude about planning start for That's of pricing second my next question Okay. are thinking implemented you as you in January? And when year, what

So growth still out can the leave think we've algorithm year you I on looks been downside growth like. that to In expectations. part the expect through market has markets the price. what middle to working talked that Generally, count moment our for because for of I'll the X% look, obviously, of to growth on we're XXXX strokes, our about we the about. market market that about exposed on share cycle, X% we're for through core X% X% and about this

And the your Fargo. from with of line next comes O'Dea question Joe Wells

Question and is prospect the kind on of manufacturing tariffs. of footprint

manufacturing I to demand U.S. would on playing then what degree important from also -- filtration so just manufacturing in might the U.S., And kind redundancies just of And for revenue Mexico U.S. in competitive understand of the U.S., reliance the exist? field, like in to for outside the what of the an is center

do we you It's the chain. question. tell Joe. about our a good The free company, how Thanks, Yes. a let trade we so obviously and supply -- think We're across global world. support global me overall

-- And And of to that's make. I create would any company. first I comment, global guess, challenges the tariffs so tariffs introduction a does

but this extensively. looked -- So at have we

set say up manufacturing describe continue would Broadly We speaking, regional to facilities our regional I is it. would that how are as it. for I monitor

does be South would and facility. the -- and would our have I production to exception in And to we for for some out the market. other production it Korea exceptions point the are that. manufacturing point X Mexico produce So example, our volumes is let's probably majority as Certainly, exception the China talk is inside about Korea. media would There of China China I an the U.S. in

continue to we the this stage, overall we're which that if so a there local strategy, markets at where way. any operate impacts feel regional supply in support in chain to best good about we there producing And monitor are our we

of a source. And it. of Mexico landscape you the that area common filtration is is supply find Got competitive that such sort do

Look, been the overall. Mexico facility advantage and successful it driven largest been we've our competitive around think it's is world, -- us, a manufacturing and for I has very

benefit. that And as certainly a so we significant see

Bank And your Andrew America. next with question comes Obin line of of from the

is on into Could This more little David on expansion industrial organic filtration? expand you the Ridley-Lane a bit for just Andrew.

that question, David. Yes. Thanks for

The significant I The it is first as I in opening the spark remarks, to our not mention and really thing this revenue. thought because would because important immediate I it was my I say, innovation our in material see mentioned of it's team. reason flywheel

we've so able to to distribute now launched market. industrial products the filtration And be into

will in reasonably through I products core, pleased very But in developing with made and I'm We our already our team able the acquisition. are industrial filtration, has right primarily and our to to we're the through channels be progress that do innovating the take into industrial market. existing say. now distribution growth that established starting small, through still would I certainly see filtration

but big it of see to term, in from innovation. revenues build the our do this I short won't flywheel You expect

you And the lapping this just it. but sort that then heard state XXXX, just plainly, the to Got I same, from of stocking. you have of points algorithm benefit remains to X the -- in

in market lower. improvement equal, else no XXXX, revenue If be would that Is the saw X points being you all correct?

Yes.

market is certainly on would year. have And the market big so strong in yes, what is I think X% -- we we've we've headwinds I pretty say also conditions been but is say, very had the this market had unknown of this benefits would doing what challenged this in downside. David. destocking obviously, I And year.

Capital the Brooks Bobby question line comes Northland from [Operator with next Our of Markets. Instructions]

Just real wanted And to a quick in jump follow-up again. on just the M&A.

you was be but no I deals remains you right? So of have -- just remains pipeline guys are robust, line kind how the crossed what yet, discuss So maybe the to mentioned curious, the maybe on main that. holding valuation it stuff? more it is up line? sellers on company, factors an some getting that that legal Is across curious been so our unreasonable from deals having Just have or could

Yes. question. Bobby. this Thanks, without get I was whether an through I call wondering M&A

So...

sorry. I'm Yes,

No, no.

X market. the developed been fine. is prioritizing would it in describe filtration strategy. I about industrial The clear absolutely verticals -- You're that we've a talked we are we've way I

So industrial water air. industrial liquids, industrial water, and excluding

our so that on strategic a and of number really a set of lot at. as we to Obviously, financial And with returns want looking considerations. there's of of a based feel And factors profitable number discussed the this that there's -- then on we we're growth deals growth considerations we've on call, a balance there's regularly -- as investment.

it's We process, top of disciplined the the rigorous feel pipeline dance and pipeline. to in we've those number diligence really not of do moved so I a phase. and easy filtering good what's to always our And a an and through certainly do. about due coming have

we expect make to confidence about the a deal build And we the approach company be able that so allow programmatic long we're in going for further And know first term. new kind as sure -- on make talked that important we is it's to of us we've build -- that how do to this will platform. we to want this we

target And about to through just right we what so confident time as work we does the are. feel is. as where take we this It

to like turn I now Chirillo. Todd call over And the would to back

interest. for concludes you Thank you. participating That our Thank continued day. your all teleconference and for for the

the As available Investor day. always, Relations a the after you, have and for will great be questions call. team Thank

this And call. conference today's concludes

disconnect. may You now