H.B. Fuller (FUL) 30 Mar 232023 Q1 Earnings call transcript

Good morning. My name is Colby and I will be your conference operator today. At this time, I would like to welcome everyone to the H.B. Fuller Q1 2023 Earnings Conference Call. [Operator Instructions] Thank you. the to turn Brazones. now will call Steven over I

You may begin.

Chief Welcome operator. are first and Officer. John After to will Chief quarter remarks, a President you, Executive Celeste Officer Vice Corkrean, XXXX President our today Fuller’s Financial Presenting question-and-answer H.B. Thank session. and and call. investor Mastin, we prepared Executive have conference

to these measures nearest in investors financial Before include references Reconciliation in will with operating with our comments included our measures. measures believe of we These compare understanding today that begin, earnings determined measures companies. let me remind GAAP to the are our We GAAP. supplemental certain accordance everyone non-GAAP are useful results our that other the to performance in and to to are non-GAAP measures release. performance

Unless about comments about measures. EBITDA and revenue refer adjusted margins organic EPS, to non-GAAP otherwise noted, to refer profit and comments revenue

the also on due Actual These differ statements be and uncertainties. from on during results We and covered forward-looking and of subject earnings risks release, comments with call. are the expectations these risk Commission, made Exchange factors our available factors website detailed in at which our expectations filings that current this materially are this making to call all will in based during our to and Securities could are statements investors.hbfuller.com. assumptions

to Mastin. Celeste? Celeste over call the turn now will I

Construction these and year-on-year material solid adjusted stable significant margin adjusted dynamics raw of diligent to both EBITDA year-over-year. the this deliver diversification management year our quarter conditions, Steven, our the executed Adhesives. in higher and and results fiscal with in EBITDA organic a quarter XXXX, challenges, well us enabled team were of challenging expectations improvement led line you, to Thank in welcome, and The performance demand sales. portfolio In margin solid Overall, that everyone. exceptionally drove particularly of despite gross Even sequentially. resulted and with deliver to first first price

Adhesives. significant is Looking at the will impacted first first restocking It how continued this destocking when experienced CA impacts continued the revenue uncertain our last quarter fourth affecting which significant and in demand year was quarter, be. consolidated organic of customer quarter results in the in year. and significantly Construction a of by weakness began event

of Adhesives significant stable, continue portion continued However, the expand consolidated, leveraging was benefits basis, diversification geographic led Hygiene, end business share combined new the generate and to growth and These by expansion. and and organic company’s year-on-year. which, Adhesives, generate to sales a quarter the CA’s to Engineering on market a and market outperform organic GBUs driven Consumable and offset Health customer the relationships declines of gains significant margin positive by existing first to in wins. market innovation-based This

high-end continue at to to and optimizing we developments perspective, profitability was guidance, margin be up margins. points stable a basis, team’s encouraged by On the a XX year-on-year. EBITDA basis, and currency to the price expand performed raw to was cost On adjusted we a From constant very our XX.X%. of disciplined approach in approximately increased quarter, EBITDA first and EBITDA adjusted basis adjusted the X% year-over-year material

cycles strength fiscal the served. portfolio we in of quarter demonstrates power the segments comparable in Given market in overcome this Construction XX the XXXX, to of our the down Adhesives’ any

our seen slow, are conditions in line largely economic global from have but projections. aside with Overall, in what CA we

which mild XXXX, expect recession global activity. impact in will We economic a adversely

structure profit strategic efficiencies margins are our also Investor our our align restructuring are costs the with last ROIC. positioned well such on Day will are our enabled with actions enterprise plan and restructuring initiating our Adhesives. This particularly that outlook. scenario, longer-term across gross reducing economic we current and focused a consistent a in and were proactively EBITDA While and are in of grow better during the to by cost These EBITDA increasing process we Construction highlighted improving objectives

reducing The $XX and our annualized million, the restructuring From between perspective, with during rate both quarter, is savings still on million inflation we $XX expect and actions cost expectations. approximately these $XX while manufacturing are to focused of this including raw higher costs year-over-year, SG&A. million completed, year. costs of a to first material deliver slow When consistent the continued

We material $XXX million by strong gross benefit we between margin as million evidenced $XXX in track to raw from price to the expansion cost first in are deliver in net on quarter. management achieved the and

from of and and will somewhat inflationary headwinds benefit be $XX this wage pressures. approximately other volume Offsetting lower million

this to raw continue cost environment. dynamic We appropriately manage material in pricing

indicated we of are materials execution, these raw are are yet sequentially, cost and still different This a purchased portion movements we which some we Most synchronous. As are the previously, requires meaningful not decreasing, approximately continued to stable pricing X,XXX demonstrate. comprehensive increasing. continue

of basis the segments in our management in difficult HHC’s revenue quarter In and Now quarter tissue first strong and backdrop where XXX and volume organic towel, up year-on-year. move in raw last quarter. the markets graphic hygiene, was dynamics comparison XX.X%, and performance by EBITDA arts economic responsible cost to was the Strength increased management. year-on-year increased increased revenue growth material organic given in let year. This a year-on-year, of favorable EBITDA for lower me particularly sales on a HHC, and points in of Adjusted result each year. X.X% health to and price quarter. beauty pricing current the margin first driven of and first the adjusted HHC organic packaging, offset XX% review the in drove continued the XX%

XX%. in declined to as and year-on-year adjusted more organic flat some weakness well This Adjusted EBITDA continued destocking aerospace in first XX expected. China Adhesives, basis EA, and the in somewhat In durable impacted the in offset than by in as was growth construction markets. as demand revenue increased EBITDA trades strong automotive points and products slightly quarter margin in Engineering slower used and goods

raw cost increase favorable drove material EBITDA management year-on-year. in and the margin Here price too, adjusted

Adhesives, declined sales year-on-year. significantly Construction In organic

year the surge The customer of and post-COVID and actions from CA last year-on-year in revenue challenging CA. the decline very had As in construction actions prior expected, considerably due first quarter continues the greatly destocking by year’s destocking also began market a most sales. demand the be year first of quarter continued the markets. for hit to customer quarter organic segment that impacted comparison roofing in organic this substantial benefiting the to hardest fourth of drove in

heavily and operating cost will expansion more Adhesives restructuring earlier for The levels. margin significant the structure first business the lower to Adjusted Construction was EBITDA and leverage to normal severely actions by weighted of for CA volume in trends the return lower I quarter. referenced negative are volume and impacted as allow that

revenue increased Asia-Pacific, X% Both a the Geographically, economic in year-on-year. low generated of growth, given HHC. year-on-year, backdrop, was X% in organic Americas the versus impacted Americas down single decline revenues the year. basis. In combined and quarter up organic solid the quarter by the Organic X% led growth was In last up HHC decreased significantly very mid-single in by digits Construction EMEA, organic first organic excluding EA digits on CA, growth, first Adhesives.

expectations. COVID-related the rebound delayed stringent adversely This restrictions first Although demand. activity and a economic China with in their quarter in was impacted spiking rates ended our infection January, during consistent

and our quarter first me outlook Corkrean to results call John detail for review over Now turn the our more let in to XXXX.

I’ll on quarter. details Celeste. some Thanks, with begin Slide first financial on additional X the

of by revenue X.X% For and growth quarter, impact favorable negative down market same XX.X% destocking demand. these acquisitions organic in in quarter customer Currency a a increased X.X%, reflecting the continuation having volume last and X.X% first general year. was with in the period revenue X.X% items, revenue for in X.X%. down end pricing impact and year-on-year of Adhesives versus a the a significant was slowdown Construction had Adjusting down

as good up gross versus margin more by the general offset and adjusted net up Adjusted raw of basis of XXX earnings administrative management impact and favorable lower developments Adjusted impact pricing approximately as was selling, year, wage material and was inflation – expense year-on-year, profit exchange. higher cost cost offset effect volume. the was than points the per X% XX.X%, of last

million year-on-year, the slightly development Adjusted translation. EBITDA material and by but more impact volume, higher currency pricing of was offset range, unfavorable of raw expected being $XXX the favorable than our quarter for the lower down foreign wage of and end reflecting at top inflation

year-on-year, lower constant was of currency basis, quarter of impact interest flow slightly and adjusted $X.XX, X% in Operating approximately the adjusted quarter in rates. a EBITDA was $X.XX, currency in offset more Adjusting foreign first higher higher improving the by requirements quarter up interest by interest Higher and unfavorable and unfavorable quarter than year-on-year. quarter On the expense currency share the EPS exchange volume, was EPS the up $X.XX as and impacted negatively expense, per first higher margins as foreign driven interest respectively. and about unfavorable the approximately capital for Adjusted improved expected, translation. volume, expense currency versus cash foreign earnings lower adjusted of and X% XXXX significantly down lower year-on-year. working for

now XXXX let that, our me With turn the fiscal to year. for guidance

as revenue We to down unchanged. to to the year X% X%. volume quarter be organic the full reflects slightly economic the of X% for for as versus Our net Construction in lower-than-expected XXXX in and is X% weaker guidance year be well full expect the now first down up range for This largely revenue for Adhesives demand year. to

is by Foreign to XXXX. X% X% impact currency versus revenue expected negatively translation now to

Combined, by be a in XX% $XXX adjusted to expectations, We This share to restructuring XX% currency in continue to expect year range assumptions of $X.XX adjusted slightly EBITDA to with and for and the revenue foreign X% outlook. in $XXX million, reflects up result the million improved initiatives extra between the year-on-year a offset these increase, XX% our organic lower adjusting week per $X.XX. savings earnings representing XXXX. slightly full associated to

operating to weighted $XXX cash the We between expect year. be million million continue toward $XXX full second flow to the of half and year

the our Finally, XX% of seasonality realize material year. year timing expect based XX% over the and half pricing EBITDA first of in the raw to the full year, of development about of course we the would and on the to business of

over this up. Now let me Celeste turn the to call back to wrap

culture, a and for which am entrepreneurial our current us greater only drives of and aligns in execution Thank but not challenging of financial proud extremely inspires our that performance you, strategic the I of performance, is H.B. team is John. a differentiator around environment. a Fuller also strong purpose. It reflection the

highlight team received. to that like would I few our external a accolades has recently

goals. First, Business their exceeding sustainable H.B. to Fuller committed Fuller globally and end list investment ESG for of on XXX of to to IBD’s still while X,XXX List. at number XXXX. that business over Daily ranked ethical IBD H.B. XXX remain and Top Companies was XX named companies evaluated Best XXXX, those the Investor’s return select profitability on practices

We a where committed are our their the achieving environment maintaining for we members, own customers and our and to respectful supporting work live communities our and safe reducing footprint. goals work, innovation through environmental sustainability improving team and

exceptionally recognized and very for team proud and by are for our proud to of We commitment accomplishments right of our to culture our IBD way. pursuit winning have been their the members

their them employer employees. beginning Second, of great they commitment and any Best and culture, this they to named team to based and to how XX,XXX employer am American ranked is on recommend. XXX XX our Fuller survey a X,XXX for XXX list embody a number of Fuller List. our to and Employers I at members’ with great Midsized winning Forbes recommend proud other friends Top X,XXX also U.S. for companies accomplishments at want they would of their to surveyed as I the asked year, quite workers was would The work. family Forbes current and based strongly H.B. ranking institutions were thank on H.B. their a cite XXXX. of H.B. Participants making to to place collective Fuller company

and started prepared well as remarks, with performing I Now we line an like we very had would as I expected, our overall conclude largely XXXX in are my to guidance. perspective. provide

and China we challenges in in are will us weakness for including the end achieve full construction, our remain confident market we conditions, demand objectives. Consequently, to prepare macroeconomic we challenging slowing of anticipation encountering. year Our drove financial

expansion actions. margin driven expectations, gross commitment our balance pricing realizing our raw material and are by to to movement We according

the we we the and will to quarters actions restructuring We EBITDA expect year, in coupled progress benefit as with further which, throughout adjusted the are expand margin taking, accelerate ahead. ROIC this

prepared today. open That line concludes remarks the our for questions. for please Operator,

Ghansham Your from line Instructions] question [Operator first Baird. comes the Panjabi of from

line Your is open.

Good you. Thank everybody. morning,

Ghansham. Hi,

morning, Good Ghansham.

a was across for particularly destocking. would segment. Maybe commercial on could CA and maintenance? what out I you new demand But assess as then on segment, you March just end you sense of for us if that market versus order mentioned the how actual Good volumes kind in and zoom continued morning, Celeste us pressured versus weak John. as your residential, to also, various to you sense give that adjust first give you and by I your off just you guess, verticals how And book also roofing could much April? know is a saw destocking? were

Sure, Ghansham.

when residential certainly, look the effects feel in of business. the business, construction small commercial very you destocking. construction the participate of continues start Mostly A is of So we our our just let’s at portion part to nature. And construction business there. business in our construction

either. demand However, really, seeing not we’re market catalyzing that’s anything

to business, we prepare our we lower guidance. the restructuring and volume our look And cost for that throughout at demand be implement action structure want is so to as really this prepared to take we – decided because to in plan reflected wanted we year, that

And in segment? seeing what March you’re for the

Yes.

going We’re have destocking still this seeing season some seeing construction underway, kind but that more – we’re improving, to season. and sentiment a market we’re is the few indications of some

to trying what to determine level. still We’re

margin Got laid And a dynamic, little improvement. significant expansion And also are for Okay. know obviously, material is raw EBITDA weaker. my end I then number it. saying you you underpinning that’s a a a variable the out question, for big bit second the Are XXXX. markets that price/cost is pretty

more as the it – Because just price/cost what pricing guess pushing that markets it I disagree, through going you little number? achieving get to gives mean, unless bit logical you confidence get challenging. in is end I incrementally weaker, seems So a

Yes.

still of X,XXX you did gross So raw as QX. a expanded a you year, with significant we when – a we material in versus versus prior easing those number Of up line see in expectations, up QX, up. flat. monitor or year. significant perspective, margin number are prior some points. them our items look at of the still our basis all were From about saw, were vast the And And almost still XXX

achieving direction, starting to And of very remain that plateauing at managing a to you March job the look February. really versus teams help have some a Now tools, lot great see price. if we’re resources got raw start been done move They benefit have to to has last with And the $XXX although slow. million $XXX materials our I shared million confident that them, you we in confident in quarter. dedicated

quarter and of how be we first that, add bit that and $XXX the – maybe yes, I’ll about just Ghansham difficult benefit. $XX will a will million the what had million delivered you from the deliver P&L million of that I And contribution pricing just million majority pricing – to be? to number – to the additional think carryover million it year-on-year XXXX, saw had or about $XXX in you take little the because I’ll $XXX and would add asked to the $XXX

materials will QX. we up over majority that the this still expect in But from actually And the were of the raw come carryover that the year-on-year impact year, ease as year-on-year of raws negative would reverse. rest will benefit pricing. Now

and So raw we not I a executed, pricing the already gives what confidence if are we ease. all actions most standpoint, that’s we’ve of to the materials as think need start from us actions, seeing

you. Thank Great.

on power we innovation, of the derived and topic that being will the we And contributor – we’re if lot market their are we about continue be. of talking and being top that, rewarded achieve them power, to on a that, valuable really a customers our think if pricing enabling for to we based I Because should objectives. in you right? of is speak to pricing to

Okay, thank you.

Your next of the from question line Stifel. Anderson comes Vincent from

Your line is open.

Yes. Thanks, and everyone. morning, good

Vincent. Hi,

a comfortably you, for of majority run Construction be so amount I savings going in would EBITDA. increase think a north Hi, large to to are your of that if in Celeste, rate Adhesives, restructuring XX%

how just getting you So simply, there? I are guess,

Yes.

of So ways. a couple

and Now of to that only XX% restructuring restructuring. plan not the benefits the CA obvious need that’s plan, restructure will be about the of business business. driven the was largely focus when our But the introduced in it we on by the

like we units. other business recessionary We in needed adjust felt our also to to volumes

a the business, are America construction facility as our for consequence one closing and plant of So also we North activity, our exiting Argentina. in we’re in

associated So of sales SG&A. of to $XX the of benefits, $XX related be to be remainder those million million will restructuring will cost the of about two-thirds with and

Okay. That’s kind answered helpful. you And the next already. of question

especially business about the investment any further America, overall, for one feel maybe of new of So be you kind may footprint? North do in you’re And American part rationalizing in pace U.S. with capacity in North asset is restructuring your this the how in wins? your preparation of

important fundamentally it’s to Yes, our customers. have to believe so facilities we close

been network. Now have manufacturing we also reassessing our overall

looking technology by do now, the years moving have capacity to I of X more place that right what line, from for in pieces just by to anticipate to amount as We’re but now. in going at capacity by not determine to continue is further. is we us plant, really be dig to there And

we Alright. maybe And more will one that. just tuned well, stay quick. quick one, I on then guess,

Going them the alternative supply cadence your down road? any comfortable of they a the Fuller you so expansion. to those price if or the in terms to of this increases the throughout that, it customers alternative of ability trading H.B. lower knowing has in are a cost in already, lower-cost destocking switch they conversations, your products that a down What are can of choose but accepting kind – this with margin just on year them far to to your customers. mean back actually I a lower to was confidence maintain spoke to similar lot dollar cost prior margin been

on I that early believe. We’re in journey,

needed. now innovation We R&D focused products some bringing – have that’s right where the on the in lower automotive we’re technology. of certainly introduced alternatives, wins. And new is cost really customers and where seeing some to our seeing I’m where But market. introduced more we’re activity We’ve majority new our

For example, OEM. on be over from applications notable a for next a liftgate that six years trim notable X to we vehicle new applications are ambient introduced just the introduced some by models interior new – going lighting,

but pull lower cost that to available, of available And them so alternate as and have new some business using such customers as help from much raw and our a been these teams time. prepared exciting able of further products are materials a has themselves have raw not during and materials been challenging establish differentiation we it their introduce products to

I over. you, turn Thank will Excellent. it

Your comes Deutsche. Begleiter line of the next from from question David

Your line is open.

Thank you. order on as books? in have any HHC as visibility you you trends both March discuss can well Celeste, April and EA

Absolutely, David.

value HHC, that what One, that pandemic, especially example we really it’s David. we I base. in power is wins give tissue and our performance base. to to example, this is in we we and destocking CPG a customer So still our finding about enough, to were times, the will towel times to an challenging able underway seeing during team to And established by the material. customers continue business. delivering am innovation also, because up. see with of that the HHC our is start was get it to are difficult able big pricing companies. to overcome interestingly There But are ways. you strong But love that I we even associated the two part pile supply business. through we seeing And throughout well performed with bringing reliability, customer I are when

a product. right, So, that’s toilet paper, really basic water-based so fairly

help to his to leader, our – team segment run software saves our by nature. apply market own in that with innovation customers introducing reduce very their more new And taken efficiently. the provides of proprietary full-vision market adhesive, is Adam, is our who the It’s and it’s that bring running them to them data which less have customers it technology sustainable more lines analytics steps that money. allows our However, business, waste,

And expletive is business it’s even And in the we not wonderful. like seeing because so momentum we innovation this, are the very of are just wins bringing.

we that So, the have XX in that’s are to over been months and team we continue – consistently what bringing the I what last see has starting here. QX been

You asked about well. EA as

that some have by our woodworking market does we industry to our There heavily some – in also like here business are market segments influenced to – there of of influenced construction EA get some Now, some product that China. by impacted or the mind insulated is keep and by glass degree. are demand

fact, In digits, last flat at EA up to business, look low-single the be over the it would you China up. quarter, excluding if

big be to the there little sluggish. we is as at So, how a well. on a be the the on in will construction first half, That’s bit and we business China would the as the China case to hangover that Remember, is depending some that case having look and guided have continue EA associated on influence evolves, EA case. as market, going with influence will is be And QX. there of a be

the restructuring, guess you plant in the on Are just additional And there good. HHC segments? those in EA, and targeting two non-construction savings, closures Very are I

network. again, to the my questions, on we Well, are manufacturing previous evaluating back our response

complete in the plants. end We that are with now, possibility, up plant-by-plant, And is shutting just certainly, we that assessment, from but now at years looking as there technology-by-technology, not mind. we X will line-by-line other capacity

be $XX million clear So, to just no be are to other the million, closed…? $XX plants to there on

two dimensions, I the Just just the two mentioned.

Right.

very you Thank Okay. much.

David. Thanks

Jeff JPMorgan. from of next line comes question Zakauskas from Your the

Your line is open.

first Lydia also this is allocated for the How as on could if Thank severance you. to much well? This Hi. you the and quarter Jeff. share for employee Huang is year, number

Sure, Lydia.

going hit P&L savings. the it’s So, of to as million, about same I I to the timing of total think the impact $XX million $XX expected think

just first $X little in $X.X expect than that maybe see a maybe XXXX. the we half less and third the a would a quarter – And that to million was will above million. first that Lydia, hit I So, of in – between amount the

Thank you.

of Partners. line Research comes Harrison Mike question the from Our from Seaport next

is Your open. line

Hi. Good morning.

Hi Mike.

seen the some strength through at the there about do us was the we of as the year? margin to be the in margin we the help And years. few performance Could business, have of ask that understand of a drivers to there? you best that rest you least expect the go sustainable HHC Wanted key

Mike. Hey Yes.

was So, goes to And and comments being to strength HHC we organic base. that that that again, for back pricing. how my rewarded the in reliability customer about growth innovation bringing number really are for

terms I guess I margin in more was – the in about. of what asking is

margin, Mike? The EBITDA

Yes.

Yes.

again, we business that getting So I in margin feel innovation needs our and driving that customers more – sustainable the are as bring products, products a we kind trend to bring help achieve through us continue the is that is products. top Sustainability to new enabling that modify that momentum space that line. it the And is of rewarded. to has definitely

to restructuring doing the we works to look we of overall down EBITDA and that enable that the going we through on success. margin we some P&L, are as Now, continue more to do at operating to us is need realize build get some leverage to

Yes.

Just to color, add it’s Mike, a really driven. pricing little

you that look the costs, mix year. function took it’s P&L, the lower a of really If not or it’s pricing last we across actions

it’s of business, that I us, most bit for But should than we were And Perfect. earnings seasonal guess weaker you business. what like? if the of obviously, steeply little terms I in construction all a at expecting. QX came help can Alright. in think just then, on adhesives cadence look what

price/cost course get then in point got as some improvement restructuring also and some year. the hopefully runs at and maybe destocking some have we You coming in that later its in

we the help just thinking us a maybe the little bit on CA should business? be So, cadence about how in out earnings

add let commentary. start, some will Mike then I will I Sure. and Celeste

see in part kind on in margins quarter improve second business. then I quarter think improve seasonality quarter. fourth of will start going the similar the the get that based we third Margins and that to and in you to are of the and

always our lowest volume quarter So, destocking. quarter. the It’s first by exacerbated is

the As back adhesives, don’t to we we – like by of it year, of think start the XX% this that of higher sort to normal restructuring we I construction a the standpoint. improve really this is you taking, be second mid-teens half would see related business from impact. to you the imply return savings getting more we actions the the have think the should QX, year are of levels, go of seasonality into I the into as EBITDA up think won’t would with meaningful I type until with of volume see that But that actions business. fourth the the business to see, get end margins by an it the that high-teens quarter. to a And margin into roughly gets will

And again, for it’s we adhesives at business, business we Mike, – look that as construction a small us.

select construction higher growing areas EBITDA selectively. that margin we know can those want be we adhesive. still we it to high and it, every very are achieve don’t are margins. in We growing We where in target EBITDA applications. We want We be to

an space, is is that market the it that and innovation-driven So, on. of we are part focusing the

plant said. would be And with I also agree the John I XXXX. mostly in felt closure So, what benefit that will add

his And on XXXX. so cadence I agree with

we with – that improving of XXXX not the margin. done EBITDA just are at end are You

quick you just spent that bit buy? flow $XX about And of about Perfect. might an year? then a What on rest we talk or activity a additional in statement did the much the quarter. cash shows one. acquisition how expect And the million M&A little The acquisitions in quarter in maybe on you the

in the coating systems our fits Lemtapes adhesive called quarter. a Lemtapes was our business. company companies Yes. with in small coating We bought One – systems Finland. two

So basically, kind of specialty tapes for packaging applications.

Europe. business in It’s a United our high-margin We Finland expands product the that for business a States. position Lemtapes have in line in got here strong us and into

So, did. one that we acquisitions of was the two

insulated company capability really was is one Saint which Paul. we headquarters that here Aspen located near like, company glass second a in business, our Research, fairly have production They benefits The unique our as called which you in to bring I technologies around the to want continuous that our we more know, footprint. And grow. will deploy we really think and we can other production-based flow technology some

bought. we that’s So, what

objective most those identify team our as even the while I will the an acquisition. it developed by will some our at to that look you we tackle when spoken highest the clearly, to be I best margin, growth opportunities of with roadmap And have about served business. to doing Now them of grow some M&A, relates organically, strategic

and are of building what acquisitions those needs. a I targeted smaller opportunities to of will are that us to process We fill call pipeline in proprietary, those allow

be million purchase or it, year, more $XX kind do, of in a on us of million – like kind price four you acquisitions little expecting should ranging So, average. to to from probably $XXX million call five about $XX

Perfect. Thanks much. very

Yes.

I the think post-synergy strategy, add multiples we on a and other basis, these ratio. than often leverage our are I about that thing multiple than are that less less our post-synergy would that is acquiring at companies Mike, trading one

that’s you of. see more So, will what

Thank you. Alright.

I now Mastin [Operator to Celeste remarks. over questions any time. Instructions] are no at There back for closing further the this will turn call

your and Thanks everyone for your support. We questions appreciate great the call a joining today. Have day.

This conference concludes today’s call.

disconnect. may You now