Encore Wire (WIRE) 26 Oct 222022 Q3 Earnings call transcript

Welcome to the Encore Wire Reports Third Quarter Results Conference Call. My name is Vanessa, and I will be your operator for today's call. [Operator Instructions]. I will now turn the call over to Bret Eckert. Sir, you may begin.

Vanessa. you, Thank welcome call. and Encore Corporation Wire Good to conference quarterly morning, the I'm Encore Officer Financial Bret Chief Eckert, of Wire. With me Chairman and President, Jones, this morning of is the Daniel CEO, Board. the will financial minute, XX, review a ended September we results In for third quarter XXXX. Encore's we review, any take financial have. questions the may will After you

attempting statement you to legislation and Before forward-looking, with that in the that forward-looking. news instead might discussed of to actual this these of non-GAAP from and as believe for be information and to all could financials, be conference each certain certain risks refer call, indicate detailed company's the to EBITDA, materially we results reports you the making that this me posted the be which that opening measures now SEC during for conference each call Daniel Daniel? we directly accordance some order financial we certain over on statements a comply to In securities review let more those turn remarks. identify throughout particular may supplemental I reconciliations we discussed discussion releases to to presented uncertainties. investors, are to most differ such for of including measures advise useful GAAP comparable with Also, statements be of uncertainties financial today. risks cause considered website. our I'll and and call involve

support. interest us investment, and your Encore appreciate the Good Wire. continued and morning, call and for everyone, in for your you on thank joining confidence We

in earnings of in orders convert complete, in the the quickly into market, XXXX. to delivered ability quarter continues to Our materials third differentiate us exceptional resulting raw

certain the quarter delivery in in general tightness third materials the strong the for finished sector of Continued the the of XXXX. to of timely goods persistent spreads demand meet kept and availability inability of raw

to By third periods were rates, XXXX levels. and decreased to the job core healthcare among quarter third our serving execute customer our to prices and continued was growth comparative advantages basis. center, second both XX.X% the and driven Our volumes of others. unit marks costs inputs fill quarter year-to-date total overall in third manufacturing shipped. and offset increase in up solutions, Copper quarter, the customers' volumes quarter scale flexibility providing to over and gradually on year-to-date X.X% volume throughout copper a volumes a increased aluminum of spreads unbeatable rise. over by efficiency. one-location and increased periods to vertically-integrated increased X.X% to The speed continue generally changing quarter needs. Copper volumes raw XXXX remain XXXX. in XXXX spreads quarter basis, year-to-date spreads and demand Aluminum basis, on copper XXXX increase and increased decreased for basis. start and shipped This we and the than values believe gradual the an business total abatement a the both of also product competitive compared consecutive quarter Copper while more able and year-to-date other model in were volume on continuing aluminum enhance levels. service I quarter spreads a on on for XX.X% order material operational comparative agility by Comex but in copper in market shipped renewable affords us high data our

to share remains well Wire Encore and in believe incremental positioned to continue capture economic current growth the We market environment.

integration business, fill as our long-term including company and continue the position. believe order industry. deep our our opportunities improving our to for we we position near-term enhance in that focused We vertical environmentally remain superior the As challenges, sustainable address a competitive our on rates responsible and

come coast. Bret? depend to financial the coast now on orders for us call from turn contractors, quick to As deliveries our continue to electrical I'll results. cover can distributors over our in to Bret

Net versus XXXX, Gross quarter $XXX.X million copper for September unit XX.X% profit XXXX of of were the of copper Daniel. XXXX. third the ended quarter while in per the compared of of pounds the pound XX.X% measured per purchased XXXX. quarter XXXX. quarter average versus The third third XXXX, selling XX.X% XX.X% of of to million the for XX, XX.X%. Thank XXXX the percentage quarter the the quarter quarter increased was in $XXX.X XXXX third in of quarter third wire wire pound to the cost third copper third volume, in sales the for you, in contained Copper compared of the price third decreased sold, decreased sold of average

was Daniel $XXX.X XX, ended months September Aluminum shipped XX, billion X X sold with margin margin XXXX, X income share compared XX, quarter to XXXX, the ongoing the September abatement the period, quarter Fully Aluminum average Daniel stable X third third cost third X the to offset XXXX, increased with the an general kept September XX.X% of As in profit copper volumes XXXX. spreads months profit September increase for XX.X% for diluted period third the year-to-date Net than inability shipped $X.XXX the Net XX, demand The the prior to months XX, stated, percentage XXXX, XXXX, same $XXX.X goods. and XX, X volume sixth more the XX, was September ended per certain the XXXX per while ended have months the XXXX, months of to spreads. XXXX. XXXX. compared $XX.XX raw September XX, gradual as elevated X Gross for XXXX. for in copper $X.XX spreads wire versus drove resulting $XX.XX September tightness compared in diluted the demand in the XXXX where third XX, increased XX, of share common profit driven per commensurate September pound the sales months the XXXX, products. quarter ended Fully the uncertainties X months ended $XXX.X X.X% aluminum Persistent was of XXXX. compared quarter was in September respectively, in September XX.X% the the increased $XXX.X gross spreads months the increased Net million Copper availability earnings increase third X increase basis, per September marks period versus versus earnings margins X third for quarter coupled over XXXX. versus by in of the unit $X.XXX purchased quarter ended than billion XX.X%, XX, ended strong X ended labor delivery meet and in the aluminum XXXX. the same of in common were XXXX skilled quarter global of represented ended total of finished X of of This quarter to in months of quarter in to through for for spreads X.X% of versus gross total ended overall on XX, along for the and XX, increased higher million the for net months an spreads were Results The the ended the the ended XX, of of X year. spreads materials, in in overall sector of both September ended third were XXXX the XXXX, said, for in $X.XX our suppressed increased were compared price million the the months income quarter the wire timely September XXXX. and And X and period. X.X% availability X quarter the a XX, sales September through the wire the XXXX. XXXX, months months quarter ended in our pound the overall the months XXXX. increased commensurate September consecutive in in volumes average XX, ended XXXX. volume copper months the and September and in copper by versus of million selling ended

Our remains sheet balance strong. very

We have no long-term debt.

Our revolving credit line remains untapped.

of have cash end at We the the quarter. million $XXX.X in

the During quarter, X,XXX,XXX stock. common of repurchased XXX,XXX our third million common of our of of over Since a X.X shares we quarter total the repurchased our XXXX, for an first basis, we $XXX.XX. year-to-date average price of at shares of million. stock On $XXX.X we stock cash outlay repurchased common a

as reach market in improve reduce wider the efficiency through July modernize in vacated incremental quarter will select integration in increase well previously declared extend expand of expand as has also spending of low-cost, XXXX and Capital growth. processes our responsible of the earnest, in have XXXX environmentally on full the and million repurposing capital XXXX $XXX continue XXXX. dividend our increasing in in million The industry. XXXX manufacturing X position capacity year The company were sustainable completed distribution first in a in $X.XX our quarter. as during manufacturing and position and to vertical XXXX our and sustainable costs drive We the of for our our to the $XXX focused a to capacity manufacturing substantially a second and Total months as center to expenditures manufacturing as sector capacity facilities reported. manufacturer announced investments broadening cash

$XXX capital to expenditures million million in to million $XXX and total million expect million XXXX, in $XXX to $XXX in XXXX XXXX. from We $XX million $XXX to range

to and We continue flows. with a remarks. operating expect floor will final cash turn I few over for investments Daniel to to now the cash reserves fund existing these

buddy. done, Well Bret. you, Thank

certain and customers' success market persistent level continue remains companies. performance current months performance I integrated consistent attest remains raw serving unmatched speed have giving evolving the operational strength and business deliver our the also of model Labor Our and our of vertically which a agility this suppliers. consistent low-cost our first long-term partners without competitive on exceptional for continues Encore. tightness the many to conditions. through to of materials, their thrive XXXX, We our to us wouldn't limiting supplier market market in needs. to one-campus, under Despite business advantage, constraint X of believe this availability to further model, of a commitments tight

of the of the inability favorably of have year-to-date which for periods. these both general us finished meet timely the factors demand contributed the shipped expand sector to to and for volumes positioned All quarter delivery goods, the to

unbeatable Looking their ahead, deliveries hard recognizing nimble our execute work of the company, we continued remain excellence. our solely close service, customer and to operations to upon commitment committed core coast. and and to for by want I coast to quick values employees safety

efforts. extraordinary the X over past have not performance happened their could Our quarters without

continues to we'll thank market for the in allow their to position success as opportunity support. continued shareholders the sector. Vanessa, an Encore employer our us now our we in want invest in team Our as questions I choice our take listeners. from the incrementally to of also

Instructions]. [Operator

from We have question with our Julio Sidoti. first Romero

sales I product of on quarter? in just maybe talk wanted start speak came you on you're residential. could residential percent regards from the about you demand to residential to to what of seeing portfolio? what Could And the in portion the

Yes, I'll the percentage. take

look in XX.X% you of in quarter the residential If 'XX. quarter, the third was third

If quarter third it you compare the was of to it 'XX, XX.X%.

our and Daniel talked I'll seen. about housing before the comparable, market really to and let what the with what pretty it's it's comment residential but not drives on as numbers, we he's regards start So business.

little there's for the consistently show mean year-over-year the overall, piece. backlog slight on and the some finish a the a to to still to quotes other creating maybe side. materials for of for there, a we're still in of can some be still pretty takes numbers of chain request consistent segment a I seems it strong. But in bit building receiving -- houses, but There backlog materials Yes. of be supply clearly demand somewhat residential slowdown sure, that

need your that not be? July, appreciate products were I see product for -- color. on have manufacturing other you And in residential started to at able yet? quarter in call all to I last started to flex the guess categories, Got that you not you third it. towards capacity this that do if guys touched

that sure. ship. It orders Yes. the and We from the that quotes, you of comes materials. of or complexion of in, the demand like in our majority the a the distribution the of that off It's for list on request for had not list based changes custom pull coming repeat some shelf

long side as So there's for finished we other plant do raw as us the it on and that level the within side. goods We'll input product that then clearly to materials we're to for flex share also from categories the the to service on opportunity meeting the one that continue can.

of to then aluminum Got the portion turning just the it. And portfolio.

And compare aluminum about a the the see Do talked you forward? spreads following in could trend versus you're spreads you in seeing spreads? Just spreads abatement you've copper going different sequentially? line copper gradual trajectory aluminum

question, Julio. Great

about, that. said talked X the now, Obviously, aluminum we on for thought that we I comment stand by I copper spreads quarter spread. XXXX. second in peaked As I quarters of didn't

we side taken there hit heading projects and up on was a still the lot aluminum happened the tightness the more seen consistent what the challenges aluminum saw the second throughout copper volumes utility that when a of aluminum $X There's You continued with the saw domestic has that and this quarter. We've few way. capacity. standpoint And growth spreads in that in from period. of market,

aluminum, China imports You've not seen of come fall you're increase of seeing but them out domestically.

coming market yet. this they're And not so really into

portfolio. so continue volumes changing to footprint really able market. mean with diverse these conditions. manufacturing serve to been I think got very the is affords and about before goes that us manufacturing positions that. product really we nimbleness. well the ability here expand quarter And this leverage it I We've to capacity got market move single-site And We've to what to very to adjust talked in, market. us we've our And all showed the and a to back

total that margin. tightening volume that more which well gross overall spreads, an had as in and an some spreads, of growth offset in aluminum talking improved about in as is increase resulted You by continued copper shipped we've and been tightening the than the

So that quarter. would the be my takeaway from

D.A. Instructions]. take with [Operator next Davidson. And our will from Thielman we question Brent

supply off I as great question, seems here, still for pricing guess, coming -- a It levels. margins still like pretty spreads metals even again. are more they're particularly high on pretty dynamics, spreads the really Congrats what quarter, today. are and tight strong

demand tight, what other just drivers abatement are gradual you if so you're that obviously can with sort isolated in wondering of lines? if it got comment Or out to you've across copper of And I'm wondering all sort kind strong just product few? Daniel, of pretty then seeing there, So this of spreads a even is also the environment. just select metals underlying disruptions

right clearly think slower, slightly. down entire anything, line. healthy commercial Without getting Yes. segment it picks into there's and up when the the has It a you demand it's little we've a up, or moves names but product and for been strong a And The strong. then got industrial segment.

not of them than significant in pricing There's they're good what competitors, side emphasis know our There's run there. the guess, demand take aluminum something which is to pretend from delivery the been more that sense. pricing It's no copper strong equipment, and basic trying some not size, mentioned, stuff the some at still there as on larger the side. from can't through or not for competitors surprise some do. from that's I But service on makes doing Bret through really the cables, demand those But pretty response a good QX to the and There's and side pockets doesn't have me. to are what there that the market is things. to, pressures on easy I or again, It we're we thing. type and volume still move doing do As pounds or away are has competition. anything to copper challenges the

we're type Our in. of for market this model is very that resilient

one but talking set flexibility we've flex have a support We demand. we're in to earlier. them one up and from another They to production with about the able be purpose, have capacity, to flex plant of primary other. all can a our We lot as that

service. we able in do and without really And vendors. which so there. with with for of well doesn't side, delivery. the the fantastic We're But those users suppliers not able a they're -- that market our have is and into that with focused what And we've and charge really, the relationships that the spend sell on distributor prepared maybe business -- certainly And able to price majority there's to they're rewards some we couple end And to building with go our we're to to you we execute of our move successes for still those that we're that as couldn't things statement, customers. the -- got aren't services, out for and materials, back only time there create We're able repeat after. go the this sharing the And mentioned that wire, and we it's it's that raw way have. bid. of on delivery demand relationships vendors certainly challenges in the market is that these extremely we're to

that. I saw environment thoughts capacity shuttered implications obviously Texas, of the getting that there mean, in another. not any out in that's some Yes. on this I tight. yours, I appreciate rod that but is pretty news mill some already type

mean I rod U.S. Canada, in and hat X or mills X X the Mexico there's Yes. or combined. X the in

are the Comex It Comex rod. only is not is So it's important. significant consumer shapes. being the of to Building with on toward moved but is potentially or the is of they and opportunities is to those obviously, purchase copper And try It it's a doing wire the decision incredibly business Historically, the just of folks start those influential Comex today. even jobs. larger that based make to business needs That's the over building has do. really manufacturer you what for watching shape of wire availability driving of think going a on the of service shape a biggest some consumer, every they and copper shape less day-to-day affected years, lot of there story. significantly over the that the have that shape wire not the tight. by And

so at again, been the believe, is right in that. able the service in I to We've materials, the to market able we're shape get once time the right get much to provide we able those speed industry And levels pretty we've and -- we're from raw to and market receive that benefit materials. been able our to the unmatched

are all next and you I wondering And and we're be, there. Bret, from guess to But expectations trying these least I on where levels as themselves out all at extraordinary Daniel my guess Okay. surpass comment just just can I you continue to investment figure I'm know, initiatives. I margins question would think know share yet, find elevating normalized or if sort point those capital can you in you the mean, market profit Can disclosing core of steady do margin? you're we contribution what not just at in to Encore's words, about longer-term but of environment. what of of these In anything terms a for margins? those exactly you this terms structurally your kind in other investments,

repurposing of We that capacity. as as we that that incremental XX% great incremental I to handle capacity, model service focused right? the talked to this to Brent. example the The going on repurposing right? either these really to said got investments They center, be new from able we We've take our old distribution the things. CapEx X have and/or grown was load. improve center And place mean the how it And XX% had system, it's closer you finalization X, day a that's always but to question, Yes. to great out has about, are build of to was add of a needed costs service right?

it's then others, And to we like here really as pandemic through as to that past get this chain deeper in we XX capacity. continue a expand much it's It's of some navigated modernization. of to the utilizing making some the that profile we vertical we XX are we're our integration, land As aspects maybe derisking on months. of the have as combination didn't these of supply closer, investments

model of what closer get improving our things, look those But costs to those X are. We the them, out we service list. are and top first taking really at when will

million that. growth $XXX spent $XXX share still And cash million year-to-date, million September. the on so million, From end repurchases more on we the of come $XXX saw a That the and at to million. cash we we balance, on CapEx, cash $XXX in is perspective, grew and cash the $XXX to

million of the And receivables so balances sitting September, end those of are and on you're $XXX all of as current.

a so under to more tightened do XXXX. it's XXXX repurchase the generate as we same the million unchanged. primary authorization, -- we of a have for from and I'm range be We of And CapEx That's with share them focus. the March through operation rest remaining through standpoint, the bit but our going little of about X.X shares this, sorry,

the opportunities for to And continue that. so we'll in to look market

as I Okay. demand contributing underlying the is up, correct terms pull X products? Maybe drivers quarter. your healthy are you whole seeing wrong, mean really the of just just imagine kind ramps I'm where of in I this a right last Plant isn't that now, yet Dan, for one. if volume but lot me biggest

the think you're web in distribution second all And repurposed late wire. to incremental started quarter turned turn advantage and to in and renewables, was of lines healthcare one industrial that. traditional making construction some just We making there, right, wire taking definitely the initially mentioned, lines. a the of site, slide at so wire he the had construction left. and center, then from back commission as We've time it's little which the accelerated didn't a one plant outside we're that on industrial we seen have commercial, segment, all we bit to the it We the seeing page the and leans centers, some well which goes just investments in data residential. of growth that I out Daniel

in we the capacity lean take that of advantage the we the market. ramp and facility, continue we'll so as in up And opportunities in we to see

with Baldwin Securities. William Baldwin from question next our have Anthony We

Okay.

on to I least you're anyway. to see willing CapEx if I talk it areas, I was ahead type but the any you this color think could nature it, your and question offer go What at you of what to products, of have, vertical about kind going offer the able I there. address programs. ask what you're the degree to integration color of probably thing,

that the savings opportunities done we're specifically that in form increasing mentioned, advantage those along cost service and in manner it's in after -- and the in projects what those some that improve lines and or as sustainability But in all and take there very we raw each same sustainability, basic a advantage that same at our the are or here one We're to -- take of Yes, into have or and be only service for increase those we're those cut and past. we of opportunities going Bret we've moving cost time, aware our what We're model as huge can and trying categories is -- a and from have of standpoint. up opportunities shape we direction. of any directions we're addressing heading materials. come as also And our there's consideration well. of to of way, X stay we ahead

as product we've itself. tweaks just and we similar offering with of presents the girl There's to Bill, we or ourselves, be right we've important or the have take a advantage we're in right offering to the make to backups the the but to guy past We've the identified service maybe other, And perspective it. it's than to others can do fantastic side, got low-cost whichever from On what posturing take one the cash market few and ready a been offer in got market years. products more it. key to on positions over be

fits. there. the the we experiences acting do and here, built on more them. we're of good industry. It's the folks. that that we've in it's It's We're pennies upgrades materials, more the processes up. and and constantly through out years, is over just same. And goods. the we timing to raw fight above. right it, year past, really talked nickels we've XX truly got in There's through It's those we've This involved become it's pick there's in finished cash and the the So we're there this can fortunately, for the efficient it find to all now, develop We've -- got And trying some of can better we distribution. industry, and that right

accurate. we're So

question, unbelievable over has see now Daniel. and on I strategic a operational There's you been the wonderful And just and you're it's return it. to getting of mean your years. no execution recognized heck a getting

So I the you team for and period long all long, over your a congratulate time. of work hard

Yes, you very Thank sir. much.

been exciting to it's Yes, watch. very

with is Marshall next Our Eric Hodges from question Management. Capital

was guys. ago? can give some quarter, the guys maybe the estimate an in on appreciate on what quarter residential on a Congratulations color much I the year of your to you idea of us housing that But last you going compared see on gave how market. an you of business this

Sure. Eric.

at quarter residential right? So third quarter XXXX of periods, of third XX.X%. third to let's couple a So look quarter,

XXXX XX.X%. Third quarter residential,

So it's like almost flat.

residential, XXXX. went second If of it up XX.X%, comparison, to the months from X just XXXX XX.X% a kind from it last hot then. you at X months you X-month compared quarter pick kind meteoric of look It's of to meteoric since year,

give So of change. better perspective. that pretty slight it's a you, I'll give one will The little kind last you

Let's look the for most XX.X% this trending from third at quarter year, it third it about is quarter second talked What XXXX. quarter period. We right? recent of in

to If second quarter just remind you look XXXX, you, it XX.X%. was at

adapt take we what it's the continue standpoint, and can evolve line just from market and you gradual a bottom to shift. So to us. see pretty gives But

then more And industrial of commercial more carry into mix Does about the of than we of industrial possibility margins much residential? side your engineered business. wire the of goes the type the when business. Okay. your of slowing that conduit think Does and than the housing side it market down higher the highly

production our that if press standard which as and one, the the we're commercial website, used offering folks the starts it's highly related. are yes, in That to as plant back communicate recent it we've be to answer and to number plant, past. on you products. engineered tried highlight that's that products residential as residential other list going way will tried question, original But here The There be to in are even us release would in again, the portray industrial asked capacity the that can. It in have of tied to out is considered the well. go the be and not on industrial that day commercial products

and Are And copper for copper. any far see are disrupt comment seeing -- here, make as there are there out excesses with can then pulling as any you guys pockets any you back you on being volatile there could the there out demand that for the market further that supply that so things? and what physical

up really in above have story mentioned today of has X you swings the a $X.XX higher day, The years. on that $X.XX, the during as is is earlier, Copper huge Comex I recent not is and $X.XX, influence than No. particular adders get when today $X.XX itself, are cost been volatility where they significantly the the today. shape are published

to it's as run and the these just are shapes certainly folks it's Comex, of but the watching part less important shape part of when so plants. And story, availability story wire of the

it declaring from feed they out seen of unbelievably a shape back market probably there time go get the 'XX, rod that We've an when to wire tight, specified that availability last timeframe the for of competitors to market plants. tight feeds wire these So I were fact been they was this this the rod type couldn't so of the going rod plants, of mean that was 'XX there's timeframe. on out was of lack letters it

are that tightness tightness market, in around to piece your It's when with look to alleviate lot the term, what the ready some out not drawn a do there. of a just there copper if projects right there's at just help process out to or And get that's you unpack. to they're pretty long So own. the that

on vendors, happens green at that can there and with and can copper side availability, raw things no happens guess, look copper extra out manufacturing. copper out a you're copper the again, the just to -- on consumption, that's contributing I any these you demand the material, So but And There's if you know what speaking consumption. copper you when with support projects vehicles and there's a report are of and what know they're that you side to there. companies that quite there's any the just specifically read not electric happens what significant consumption of with few are reshoring copper for supply onshoring going conclusion,

rod so the With mill that seen imports we shuttered Texas rod the being dollar strong, any in at and of was all? come have

not Canada Mexico. I other of, I'm that aware No, than mean and

Gibson Brian James. from The next question with Raymond is

a getting not you've mainly poorer. and have is you're and not call, getting X not certainly or you're bigger said questions. and bigger, get actually complementary I Daniel, do going but question for This X but you're poorer we're years, to --

business be hey, guys We the to if going you ago, run how investing good on About gradual. I why for normalize. buybacks, said, doing the investing congratulations be going people it's you if So love infrastructure, buildings. business X it's know That's going business. to in quarters your to it's in quick is or don't I that. love your to be

a of will You now for think can Do signs quarters you where X that? still you couple said, gradually." normalize of quarters. And said business then that see couple we "Hey, ago, a

Yes.

out. look take think So this, at if you I you really that

in copper saw the We a in saw resiliency abatement resiliency gross And in your business about went And If abatement I gradual in margin a at is the X this, this drive of -- last so that's in up, look it of to everyone right? the at June that saw lot it gone up. actually How you the you Still but right? going XX through basis, does the now what -- this Margins just the it there. last off a abatement quarters, long which you're quarter a higher margin some has copper that -- And has I as at you think in question. call, we saw million-dollar right? was today cliff. as year-to-date And And quarter. worries shows we this in on higher over up last time. spread spreads than are happen? saw months, quarter. gross look in occur X went look right, right? earlier margin point shows it the as a said quarter, you peak at 'XX, you And quarters,

contributing increase continued volume well continued a total overall spreads. That the so And was as as shift the aluminum increase. to factor of strength in

pandemic so tightest even think been has through Daniel Copper I talked as very, the and tighter. remains And very what the never it's about, the you ever shape the tight take is been from will. that metal you

to at or things next today figure into inventory You some to Does to Russian. of still XX% out it year half regard got the Russian LME Probably metal. not? is go with LME

to so for South which will decide go going if going doesn't not It's But domestic. but big right that that's to send a that And percentage, China, now to what mainly China in, disruption. goes a do some next they're cause to to year. through America, goes poll

freight and can -- so port out. barge and of And with and play ocean pulls kind you on ocean congestion it and

as it very, remains tight, Brian, through very you So go this.

Yes.

Okay. X I forever. up. same a had -- stays gone there, earnings this just Yes, wonder, the and ago, explosive you year up. just It's quarters it's stayed In it's going nothing

money infrastructure into but -- shares and putting the your in the certainly with buying -- help back should So future. putting

heard Daniel, that. that how to -- you do want I think I I have say, say we

you're just said that were you orders? filling in -- Is You not They you're not even even just said people there the -- are not even -- you're stuff. not say, that betting. betting, -- call jobs much jobs pretty us we're we're some not get not putting and what some even

go question. it. go don't prices. shots or X of attentive X traditional no But and doesn't X on out customer bid out quotes, They it for to have or We path business to the putting X to certainly do competitors to out or to requests no. vendors at repeat take to be be No, demand have cut to we that

Okay. Yes.

got going just we're going too? saying just and the product They're yes. price to still normal out. bid not supply it, it's is to jobs? And but that have is you you yes, -- it So because your the guys to -- Or us give

track employees record but keep chance competitors here, to can have doing where decent they being the cut a pretty a job. operations a bid job, a things attempting to great great a ourselves, and it's a job, doing by had price, from great always our testament to office We've doing shipping

fairly. rent of you're things if do you're business. the a and taking folks to at do go care supposed You shop They're inclined treat and out to less to

to abnormal, it's I somewhat to it And that so or be say consider normal. normal

Instructions]. [Operator

Our with is next follow-up Romero a question question Julio from Sidoti.

like maintenance more given just One the given CapEx, refresher all looks on what the just annual on reinvestment, these undertaken expansion you've days? CapEx a quick

to think of million. Great Julio. machinery is point. rate. within still embedded around million million $XX that typically are incremental I that you But annual maintenance a in level estimates, to It's range and in $XX at numbers And your to million run Yes. question, CapEx that's equipment. $XX as $XX our investment back get Those CapEx but still normal it's some kind

time. queue in this I at have questions further no

attendance appreciate much, so today your and day. Perfect. Thank your everyone. you I enjoy

Thank you.

concludes this participation. our gentlemen, conference. you and your Ladies you. for We thank Thank

You may now disconnect.