Simpson Manufacturing (SSD) 3 Feb 202019 Q4 Earnings call transcript

Greetings, and welcome to Simpson Manufacturing Company Inc. Fourth Quarter 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator instructions] Please note this conference is being recorded.

to with conference Addo like host, to now Orlando Kim Investor would turn over the your I Relations. Thank you.

You may begin

and and earnings Good Company’s ladies gentlemen, to welcome afternoon, Simpson fourth quarter call. full conference XXXX year and Manufacturing

On such future this plans statements as call, may events. forward-looking company the discuss and

risks, results statements materially to Forward-looking involve from any that assumptions these of prediction and like differ could events statements. future uncertainties, cause actual

which company’s public are and factors statements call discussed Time. filings cautionary page the or and a and is company’s company’s the PM earnings available today note is reports release replay Investor will release The on Some website. also of these of available issued the of website the available in are approximately SEC’s Relations earnings the Please company’s page be Investor Relations the XX:XX on Today’s was at being Eastern the on corporate that company’s press webcast, press www.simpsonmfg.com. website. at the

Now, and Chief turn I President Colonias, Officer. the to Karen would conference Executive Simpson’s over like to

our and discuss I’m throughout for our operationally XXXX. to sustainable that To Simpson Kim, good profitable you financially end, to increasingly with by growth. pleased and afternoon, progress commitment positioning I’d to made we reiterating significant long-term everyone. begin and today. Thanks like results both

lapping despite and adverse implemented in conditions year experienced we weather Our net first following benefit sales higher of the improved X.X% sales over prices the XXXX the increases by sales in to $X.XX of mid-XXXX. billion, volume, price driven half higher the the

a our improvement year XX.X% our net XXX on in a sales last focus rationalizing to point total our line percent cost in as our resulted with with range. combined in of structure expected This operating versus expenses basis

rate tax decreased XX.X% our addition to year. from last XX.X% In

of diluted earnings per As up XXXX. over strong $X.XX share X.X% we generated a result,

a the approximately end compounded long the year, term expect operating we aggressive to SAP, income X% to expenses drive business stockholder part reduce we plan to net following; to and XX%, XXXX sales growth by XX%, to to do concrete to income finally Importantly, our order operating maximize net our operating the annual return we of XX%, improve range European percent towards in goodwill approximate Accordingly, within improve operating progress efficiencies of gross unveiled X%, in to severance invested the range organic X% continue of sales targets a a total excluding the rate as as make XX% margin XX% resulting and margin to impairment. of achieve margin an our our our to of and range XX% XX% an of on capital to of of improve be value.

have our were to As a testament confidence to returned against plan, stockholders and the XXXX through execution XXXX repurchases $XXX.X share pleased million in to we our and dividends.

the in XXXX, seasonality QX shipping both to our winter the to results result year from of minutes we $XXX.X sales down slowdown few our like experienced third quarter a volume shipping activity and to from a to fewer higher as initiatives. net closures net discussing highlights construction Compared reduced due prices. now related over spend I'd increased months. on update sales million, were holiday-related primarily of as unit fourth to due well typical operational quarter a volume average X.X% to an year and due quarter Fourth our as financial primarily sales days to

and XX% our that housing XX%, the content through volume comparable seasonal the period following starts US provide of Stockton a of into offsetting and resolution grew over the impact west into shifted fourth south the of grew year meaningful the where most quarter the year, experienced fourth at the respectively, last versus labor XX% strike in year. was amount in Partially we quarter September we the homes, facility. notably starts

a housing leading approximately months reflect US until three trends operations in least starts of the XX% reminder, of later. a not indicator impact As housing said, our for from do starts typically are our to at business. results four That

ahead it also slowdown result during our be into experience important that QX by volume to the Looking construction remember the will as quarter, first activity months. a impacted we typical winter the of is seasonality in

for growth XXXX, starts. low-single-digit starts in in lighter to Although expect last quarter housing QX experienced over growth double-digit US we US a housing fourth continue year

gross quarter fourth XX.X% of margin under remained Our pressure.

XX.X% anticipated. As such, was of our margin gross lower slightly full than XXXX year

material, margin gross impacting highest factors a to mix, the hold increased of sales margin profiles one extent, and the overhead industry. the in included to factory we XXXX from labor, in Aside lesser costs and continue

We by our continuing manage products control relationships. including a quality best-in-class to maintaining experience, do this within customer elements industry and effectively trusted deep high

for will full the a discuss expect XXXX. in XX.X% As between more range gross of Brian year moment, margin we our XX.X% to will

key profitability sacrificing continue and on our our I'd in on initiatives our service exceptional edge, which rationalizing improving and without operating our update our growing now improve competitive structure systems providing customers. share, to to like focused market to effort cost our an to technology our

result XXXX, Europe's of of our over $X.X combination In increased of negative translations. a net impact volume through currency improvements million higher from primarily currency, sales as local X.X% Europe, In net decreased XXXX selling X.X% prices. the year-over-year, foreign and sales $XXX.X primarily million a

SKUs. product SKU on the Throughout program substantial initiatives progress have rightsize of since three-phase we lean made our XXXX, year-end reduction to over of and XXXX, To course date, our also offering. we X,XXX removed

North have hand, million, inventory balance to looking by at As at on When including or compared XXXX. of XX, X%. is America in which down bulk pounds the of $XX.X product decrease on inventory hand, in approximately terms inventory goods we've in December total reduced down our was December our X% our of by levels which million come finished pounds X.X% $XXX.X the XX, XXXX, almost

made including finished come XXXX, X% approximately nearly has decreased as which on America we've XX, December good pounds have in inventory down dollars over to by increased have aggregate North X%. goods XX%, while progress Comparing hand

we X.X, to purchasing improving careful have as Inventory inventory to returns practices. and on for through continue our management balance inventory company almost focus improved our

relates it and our systems, continued improvements As plan. our has to rollout SAP on technologies to

Our remaining of on-boarded by first the half revenue are be which to will branches scheduled of end America North XX% transitioned. at the our of approximately have time been XXXX,

various overall enjoying been and of including have implementation, stronger tools We positive production the SAP benefits enhanced efficiencies. forecasting

completion company-wide are the working end a We towards of around XXXX.

solid to more stockholders. values achieve are we our Through was delivering us XXXX summary, a efficiencies our improved to be year to even and efforts execution In profitability. operational of operating growth, enhancing helping organic excited

safety up, of to all passion continually employees and wrap our all thank like we I minimize for I'd to Simpson service to Before work their employee and value to the customer our At employees any exposure risks. and of safety. potential commitment

discuss results to over I'd quarter to Brian our to well turn our financial fourth detail. the call XXXX as as in outlook now like

discuss you, Thank I'm results Karen, and good quarter you our everyone. fourth today. to afternoon, with pleased financial

XXXX. Before and I'd fourth in stated will my XXXX comparisons financial otherwise versus quarter the of like begin the be unless fourth of today quarter mention that to prepared all will comparisons I to be all year-over-year remarks referring measures discussed

to million. our X.X% turning to sales strong $XXX.X results. Now, were Total increasing net

sales America average higher segment up product the and $XXX.X net to Within volume to due prices. million XX% both sales were North increased

And million resulting of foreign construction sales decreased net XX%. due of In mainly sales XX% were concrete United sales Europe compared to the translations to for the total the products construction currency quarter XX%. sales only of net Europe XX% against In net to currencies X% Wood down slightly total $XX.X products impact negative States represented represented Europe local to from dollar. currency net weakening compared

Gross XX% profit of to million gross $XXX.X margin increased in by XX.X%. a resulting

by lower increased basis production, material factory and to due with points margin XXX along slight on overhead decrease primarily costs. in gross Our increased a raw costs

improved in to basis, our XX.X%. compared a XX.X% margin On gross to segment America North

declined our XX.X% products Europe XX.X%. versus XX.X%. XX.X% our compared perspective, a While From in to product gross wood on to margin to decreased margin slightly gross

products we factory gross August benefited lower implemented costs. products of concrete the increased material a US. However, and margin certain XX.X% as costs in and to of XX.X% on to as from in lower tooling substantially price extent, our lesser a to impact labor gross increase due concrete well To primarily the compared our margin

expenses. due Selling general and increased costs. to primarily our to costs development and higher to $XX.X quarter due employees increased XX% to due X% to X% million, $XX.X and turning promotional Now R&D. advertising million operating and to from the and Research personnel partially million, expenses of engineering fourth into increased expenses $XX.X personnel, costs expenses to primarily increased shift administrative

XXXX, $XX.X million and On and XX% due in due partially selling expenses and offset the as primarily were and legal to administrative higher X% legal of reduction a to including decreases decreased pending in America well reduced North were a a segment they as amortization XX% in increased Europe expenses settlement bad professional advertising fees, and in promotions. expense. General matter basis expenses debt to primarily These reserves. personnel up by

expenses XX%. On XX%. In decreased America G&A North general administrative and in decreased level, a segment by Europe

highlighted operating the X.X%. we've been $XX.X with our As as pleased expenses seeing continued we're Karen the were approximately control. a progress decrease cost or $X.X million, million Total of on focus result of

basis expenses improvement of operating last As to XXX compared a an percentage net XX.X% points XX.X%, of total sales, were year.

prior $XX.X million XX, million were expenses of Since quarter. $XX.X December $X.X costs compared fourth in the year inception capitalized costs with project the our in SAP operating the SAP to we've support quarter $XX.X of million expense in and the total Included million XXXX. associated and as of project's implementation

quarter more we operations $XX.X As selling them. million. million versus on primarily fourth expensing the gain increased XXXX operations implementation, are sale the from a we've of of of further included compared and facility. into to progressed XX% SAP to Income $XX.X distribution for the $X.X our Income million now from a capitalizing costs

$X.X income from $X.X quarter Europe an of included XXXX, impairment goodwill gain million well a operations In as as the sale of a to the fourth a of segment. charge facility on related million

million XXX% In from impairment Europe operations goodwill Europe, due In $X.X included sales, facility. North $XX.X was loss operating from the XXXX, $X.X of million the fourth net quarter charge. operations expenses of million. million America, increased a loss lower to and the was which sale aforementioned higher income $X.X from In to operations the

to a to or tax million $XX.X consolidated to or XX.X% decreased increased income a per compared by The approximately net $XX.X XX.X%. from fully points diluted And operating million effective rate totaled XX.X%. result, fully income our $X.XX XXX per $X.XX as share. share On diluted basis, basis margin

sheet XXXX. leases. December amount small a Now We $XX our capital to remain were at At levels to million of XX, million, balance an compared our turning and equivalents cash XXXX, only XX, $XXX.X with December cash and flow. increase debt-free cash of

$XX.X of As for capital management, of million operations and an working generated a result XXXX, effective quarter flow of our cash increase improved X%. profitability the fourth we from of

For XXXX. XX% million generated which increased year million nearly of from compared operations we flow the to full XXXX, $XXX.X in or cash $XX.X

Our quarter included were $X.X SAP million, minimal which a expenditures amount capital from project. approximately our implementation fourth ongoing

year For with XXXX, $XX.X of million, in full expenditures our the were line capital expectations. approximately

to that have from share then, repurchases and our stockholders, threshold. minimum since of on we from As our our over cash basis stated operations mid-XXXX, annual returned been stockholders we in XX% dividends. have the Since flow flow have committed to cash XX% returning operations of we exceeding of far a to an of form

$XX.X including have quarter. in In to million the we million pleased were paid $XX.X dividends, XXXX in fourth specifically,

for price share we we average of our the of XXXX of XXX,XXX shares This average repurchased total million. an for quarter repurchased of of XXX,XXX during total $X.X a in common per $XX.X shares price $XX.XX approximately XXXX share that of addition, In $XX.XX million. fourth a an per stock includes at at

of into January stock on our December our through As up which repurchases expired and X, directors went repurchase stock authorized on board our $XXX common to common year runs million XXXX. XXXX, for X, the December XX, authorization end, of of at of effect

as our will per In payable addition, XXXX. XXXX, dividend quarterly be record to $X.XX April XX, I’m of on share. board of XX, dividend that also announce April stockholders directors on to cash of January of pleased X, The a XXXX, declared

Finally financial I'd our like outlook. discuss to XXXX

of to be XX, $XX is housing the year to range be be $XX the of taxes; million income of million expenditures are XX.X%, in guidance range $XX ending amortization expectations material state margin our to which range million which we and XX%, depreciation to expenses the of December $XX CapEx. to million, in both for and XX%, range of costs We follows; federal tax fixed $XX for to to of current to assets; effective XX.X% rate profit in XXXX, a will regarding For million $XX the the maintenance including in XX% our depreciation be capital as be expect consolidated and starts; including used given to million approximately the gross full initiating in

our value efficient proposition all and we the summary, financial believe position for progress operations made and through long for XXXX through We strongly in Simpson significant growth. to towards in the sustainable will objectives strategic, enhanced XXXX term In value of more execution efforts stakeholders. our benefit on deliver our of even our company help key believe plan our operational

Thank your today. you time and attention for

Now, back I'd like to to closing turn remarks. the call for Karen

Thanks, Brian.

Operating I'd Before thanks his of we he to to Simpson for as to turn retiring as service recent my like to his including Officer, Ricardo Q&A, XX be extend it over will role mid-February. most Chief Arevalo in years

over for Ricardo’s many Simpson his years and very successor all Ricardo for search formal wish COO. a thank him best of in midst the in retirement. We to permanent his as the contributions are the We

now Operator, floor for the you questions. open may

first you. line Instructions] Our your Securities. proceed of the question. Daniel with Thank from question [Operator CJS with comes Please Moore

Karen taking and afternoon. for Brian, the question. good Thanks

Hi, Dan.

gross I outlook. focus want margin first to the and on

XXX in described, the why expecting the know And margins Any up a start Are incremental of recovery. low A XX.X% somewhere see just is we essentially expectations expect little year mix roughly. year? more to just wondering you bit and finish steel you You conservative little pressures? that being the as or simply changes price you guidance kind up below in wouldn't flat the I'm as ballpark. gross in to bps

again. we've a we're couple pieces, prices of into as start steel Dan. part now of about, Certainly, a start steel we last about get seen and the the seeing we better, as go we’ll up in getting talked down Certainly talked year, bit to we'll There's go little and prices still have

that those we've from two and ones from factory really are main So, labor really, that looking the a we're we're with housing what what standpoint very just on got we're this. low-single-digit elements inventory But basing are that comfortable are impacting steel gross Certainly, margin. Those driving the elements those at really starts. tooling. are

and relates you alluded then, to easy stronger for weather you to half the the in of QX you first should of And exit it. XXXX as had to and bit of easier a those creating starts that for to outlook in comp a Got it earlier tough low-single-digit, starts set of up XXXX. late housing and kind – XXXX little comp

expect is two relatively upside for So, year? course to look that we the expectations there guide the out would flat your from as the to be next you or over or that of quarter

I of the it’d just be what a lot on year – guidance flat is pretty that from course market based of getting No, the over think information. we're

consistent. again, us than help – very, a bit this in to certainly looking little time bit. so I had think might variance the comparables, XXXX. pretty was better a a it last digits I that very low-single Weather year, but mean is QX is was nice a soft this we a bump that

make it's any, think low-single digit. that adjustments to I early beyond any too

All right.

as So, no the far quarters is cadence over major delta the as concerned.

correct. That's

sneak to one Okay. healthy amounts fiscal $XXX million over Obviously, of shareholders in. of buybacks. including more million return in to $XX XXXX Maybe

Thank you. We be commentary next around expect a of have any share there Would similar Just current helpful. and stocks days activity year? levels. repurchase would you amount in

Brian. it's Again

as So, have basis reporting of announce year. any we the a updates review board. regular to be our now, capital but through as with changes allocation don't go we'll strategy we our on any And we

goal to cash past, the the XX% that do shareholders. return As we've talked from flow to in we operations have of

XX% meeting bit of opportunistic be of as a utilizing to as trying that a well been we've number. mix However,

we'll Looking we the return and price those analysis. levels get the at that and various current continue at

today the look more So, XXXX. I have as exceeds don't but mentioned that those the have there able acquire that that those adjustments much board and to at that you with with back price right return stock We'll but we are, were current other price mindful the, is we'll making we the in prices than but those have you're continue far the capital if ongoing. it to as we see average discussions are to and and allocation are of at current the

class High follow if ups. Thanks. any jump color. in problem way. helpful, queue Very either I'll back

next of question. the your Our you’re Chen proceed question Please Baird. line from Josh comes with

Hi.

Just question a on housing the starts.

sense numbers number starts because So interpreting strong am in make quite yet it through? starting that then the starts would that it you a I right to QX better that start impact talked would just you see your in those be about fully housing flow off you're to QX haven't seen and

lag a going concrete number then is we our go talked lag. and could framing. and the it anywhere product. typically lot about month majority see the four three start be it start We there when that of to we of into housing might some between the the the to a foundations of sort between into Again to And discuss

how the of areas depends electrical all infrastructure, sorts on just for well all particular plumbing, the those prepped It and things.

certainly that QX have we in the was increase to XXXX. really, was numbers So but it think I against really soft remember the encouraging

So see yes in should of the we upcoming some months. anticipate I that would

there – in still of then reduction. European not to kind you even achieve the EBIT every not can And to Do target – overall order may on question basically hit so for that need to to long--term example and the you might OpEx hit you or right. the that margin of margin element achieve you expect for have are the of guidance – XXXX. certain a guidance All because elements a your

just to than some was wondering or So us hit wondering would element be clarify clarify could expecting easier others? you us, you just for I if are every elements I was if could for So, you

with quarter XXXX put to the in full We the able intent third all those hit those targets. of out being targets of Yeah.

I the as think the growth as important of very they're of well profitability for company, the company. the

in we're still extremely release, targets. hard we hit working earnings that we've to as stated So, this can all of be sure those

we those without is our goal to resources and and the in hit we but all try hitting place to to people you the might – targets As hit be sure others, able not that's mentioned, that be targets. put

Yeah. me, an right. And inventory. helpful. maybe for last That's All question

potentially decent a go last of of of couple thought over XXXX? the in that kind inventory So, terms turns in Any years. in could improvement where

Yeah.

is we've mentioned, pretty importantly, turns. our manufacturing still to some a are inventory. reduction of – pounds what be down also has we from more normalization And our on in be As goods. bring able branches that and significant in And X.X down pounds our would our material to steel, from gone being we if work we able X more to inventory working finished at efficient. get Certainly, raw bringing

don't continually the we all XXXX, target but have can of day So, our increase. that efficient working be. when And in manufacturing every a do set target place, see they to we to start things those we'll group have for be most go

Thanks for Great. your in good the luck first time Okay. quarter. and

Thanks, Josh.

comes Our the Instructions] of Sidoti. with Please your question Romero Julio from question. line next [Operator with proceed

Hey, good everyone. afternoon,

Hello, Julio.

of segment that there mean, how first you segment much So is you on maybe from there and Pretty there XX%. segment. unusual more reductions mention you've or my significant prior kind lower lap American do year-over-year. lower may in expense and a of more by recent something maybe Is North foresee kind be going did cost You something reduction there runway question unusual quarter? I the the year the was for G&A is forward? operating done that

Brian. it's Julio, Hey,

of XXXX. we matter XXXX a had fees – settlement had those repeated legal in consultant management success for in didn't that for we recorded based So, neither a and also

and SG&A continue America primary drivers G&A we're So, significant lighting items that and not looking like. that we those that reductions in initiatives to cost North But there’s cost, the those mentioned utilizes repeat are how focus more did seeing to at did we're I – be XXXX green projects and on going I the don't comparisons much XXXX. know because have in we'd that

currency called out maybe basis. on and price Got in an European talk on Bu, volume you Any sales one other was think And mix? there would about one? relatively it. year-over-year the a the can help. segment, decrease flat a Understood. increase that just I color constant in maybe

Yes.

currency, Europe year. of As were I on price X.X% they we've local cadence mentioned, do the tends couple up a for increases. think, to a

and typically, thing. of January June there's some type So,

was a in there So I change management maybe price Also, that little the in some helpful. had bit. that increases delayed think put been had

we're bit fastener was that helpful. move think standpoint. that our on to certainly I volume So more little a of And starting

me million $XX one then is here XXXX. the $XX And for last CapEx to on Helpful. million maybe for of

year. bit about have I year? growth think I CapEx for it more initiatives can you the talk this mean, maybe of implies you a the planned little some for

rate specifics there million, into not call are had. few years, range the are last go type we've the few maintenance if there kind or annual think, Historically, in that been to we've projects it I in necessarily $XX that CapEx of $XX years. recall some the that Not million last for calling but that out CapEx run growth I

got projects there we've that more the be growth initiate yes, on in are additional looking that this side. So, year we'll couple a to

questions Appreciate in best luck taking Understood. you of the and XXXX.

you. Thank

proceed of comes Davidson. Steve the question Chercover with Please next with D.A. question. Our the from line

jeopardy somewhat a questions couple that on the follow-ons. in good I but wasn't Thanks. and star just one there's

and Brian, is going for you right? sound QX a does I what just it the year, you mean to paid between to repo what there some there's the it's paid in be not because full So nuance so difference like XX% automatic,

mix count Correct, at that versus pivoted looking – that's and both that we've of as I continue our time conversations with the reduction have we until position. board looking that just around not opportunistic and off to to mentioned, share this utilize Correct. the

other of the rise presumably XX% lens to front? returning presumably, it you but flow mean, I push of target is to not could the some shareholders, on mean, sort what return through cash what And I you're and filtering items that off, capital could, it

The share evaluation those will, the is those screening, of looking for you price today. the or different if capital if there’s reduce and count that it. regardless not but current think today's this to doing returns on elements -- that say we're at and two or to finding price to balance I a you for versus touched

and utilize return you We the a we're at at year average what price very noted, as wins, as repurchase, higher today much looking share XXXX. it's the as much we the in through saw than an

So, much repurchases – again just to account. the the better return be be that continuing we're evaluate return would the they obviously into would than for and that making XXXX lens at sure taking today's level

significantly have you and you capital where up or I could Do be want it enough of your projects the it you pretty mean, any soak plant, would and top be? capital some where to want is that large that to to much to equipment be percolate property, that

fund we're of I That's generating question moment fair XXXX, planned ago, higher XXXX a able internally although to noted, on with generated in a than a amount to too, and good bit little our as question, to cash a the those is be cash. CapEx be

With it noted stands but the we we real know footprint, change from new evaluate and But that don't something today, on those that's operation as what buy an versus leasing we and – be they take our evaluate there today. where we have need any just again the one buy than mix a and case-by-case our basis. of that estate if facilities, they different portfolio I smaller to sold manufacturing significant would

additional elements value. the projects. improving repurchase and generating as with the the where be business We'd dividend like And that those beat to capital larger that for But areas is today use find shareholder allocation. CapEx that's our can able the always to putting share goal to we cash enhance we invest in cash other returns some the create the that to are are

refine for over maybe really wooden that take I bolt-ons said concrete. gone we've up of can't on what already Is you But and for that focus that M&A that to through imagine so, move the to it hierarchy, kind years as the be if contemplate your you fair? would

product want that American look M&A could push type that we part that's that also with we concrete, particularly intellectual to in back there’s to around property we're plan, we think help we make recently in other repair domestic have looking acquisition some right as us we're of sure areas but the fair to I really but fastener North can XXXX extensions – business with we enhance a are would at things US make that a But of and you're that not initiatives. find anything sure scaled looking our the to of invest want We've or line assets those. help size our products in strategic for that our taking but or found constantly business.

its have Okay. SAP And towards is might but I coming the missed project conclusion? it

smaller operations in And have to the We a Europe Asia-Pac a another of which the in here have in revenues. early here year and America. will North still about is But North expecting XX% and then got major facility couple we complete then our we're US America that that to come of online do.

the around have locations the So we XXXX by end anticipate rest completed. of those to of

couple elements it of you've Despite like a back targets. XXXX pretty come your close to one. final And achieving walking looks Okay.

some it share probably or So, you're thinking plans. XXXX goes course? due without those Would saying five year you with in of us

Yeah.

You really been see a common question. that's

you be would refined of standpoint more imagine would quite a quite we're the want around engaged to sure aggressive eye strategies and meeting our to and things our those third five can imagine is team that still have goals. management I in There's bit some be three everybody, as on. the still But them bit to be will a off the year sharing some ball. quarter. of not think fourth we're most board working employees are the and work likely XXXX I from already what We take looking or key we at and get probably

look right, to it. All we'll forward having

Thank both. you Okay.

you. Thank

a We line question. the do proceed follow have up question Securities. Moore CJS with from with Please of your Daniel

number flow Thank the but missed I full housekeeping just the again, from you cash for Brian? operations mostly year,

$XXX.X was for It XXXX. that. me million Let pull

Perfect. And let’s about see, QX to then for reasonable a next quarters? implementation run think SAP rate the the costs, few is

That's that I one to be and plan of – and like I North from local think it's say complement going early good existing using might a shift on call America the really question. refine maybe right in team. who's continue to world, focusing now. would on a too to I as we mean, ballpark. our But rest we on to the little that consultants the the where

locations ago. on focused getting really we're mean remaining that that a – referred moment just those I I to

the done to first sites. focus expect been a in and prepping be year. those half And getting for of We there's those of on ready lot this

think QX decent I rate might be quarter. a So, run

and quarter, or Helpful. assets next monetizing are $X.X over nonrecurring that you lastly, the called facilities And gain consider year there or million the the any so? other out you might in

No now. in nothing. the Nothing plan right

again. you Thank Helpful.

Dan. Thanks,

Ladies have and question-and-answer end gentlemen, as call. session thank We as participation. we today's you reached conference the well our your for of

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