PGT Innovations Inc (PGTI) 2011 Q4 法說會逐字稿

Good day, ladies and gentlemen. Welcome to the PGT, Inc. fourth-quarter 2011 earnings conference call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session and instructions will follow at that time. (Operator Instructions). As a reminder, today's conference is being recorded.

I would now like to introduce our host for the conference, Mr. Brad West. You may begin.

Thank you. Good morning and thank you for joining us for PGT's fourth-quarter 2011 conference call. I am Brad West, Corporate Controller, and I'm joined today by Rod Hershberger, President and CEO, and Jeff Jackson, Executive Vice President and CFO. Rod and Jeff will represent PGT on this morning's call.

Before we begin, let me remind everyone that today's conference call may contain statements concerning the Company's future prospects, business strategies, and industry trends. Such statements are considered to be forward-looking statements under the Private Securities Litigation Reform Act of 1995.

These statements are based on our current expectations and are subject to risk and uncertainty. Actual results may vary materially from those contained in the forward-looking statements. Please refer to the February 23 press release, our most recent Form 10-K, and other documents filed with the SEC. We undertake no obligation to publically update or revise any forward-looking statements.

A copy of our press releases posted on the investor relations section of our corporate website, www.pgtinc.com. Included in the press release are the unaudited consolidated balance sheets and statements of operations prepared in accordance with GAAP and adjusted information which was quantitatively reconciled to GAAP. Our Company uses non-GAAP measurements as key metrics for evaluating performance internally.

A detailed explanation of these non-GAAP measurements can be found in our Form 8-K filed February 23, 2012, with the SEC. These non-GAAP measurements are not intended to replace our presentation of financial results in accordance with GAAP. Rather we believe these non-GAAP measurements provide additional information for investors to facilitate the comparisons of past and present performance.

For today's call, Rod will provide an overview of our performance for the fourth quarter, then Jeff will discuss our results in more detail. After their prepared remarks, they will take your questions.

With that, let me turn the call over to Rod Hershberger.

Thanks, Brad. Good morning, everyone. 2011 will be remembered as the year of transition. We started and completed the consolidation of our North Carolina facility into our Florida operations. This required moving a 347,000 square-foot facility generating $42 million of sales into our existing Florida facility. In addition, we hired and trained over 500 new employees.

We accomplished all this during a year where we refocused our sales strategy back to our core market of Florida and shored up our international sales force while working in an industry that from a residential point of view may have been the most difficult since the recession began.

Annually single-family home starts with the lowest in recent history. As a reminder, these do not include multifamily townhomes, condos, etc.

Through this recession, new construction in our core market fell 90%. An analogy would be slowing from 50 miles per hour to 5 miles per hour. Even if it were to double, 10 miles per hour still feels really slow.

The uncertainty in the economy, lack of home equity, and high unemployment affected Q3 and Q4 sales. However, December's numbers showed a rebound and there is slight optimism heading into 2012.

The window industry expect a relatively flat year in 2012, with certain MSAs seeing slight to moderate improvement while others struggle with foreclosures and short sales. Continued industry consolidation either in plant closings or companies merging will take supply out of the market and companies that manage cash well and have positive EBITDA like PGT are poised to benefit from the gradually improving economy.

Sales in the fourth quarter decreased $3.3 million or 8.5% from a year ago, due mainly to decreased sales in out-of-state markets where sales decreased $2.2 million or 37.9%. This decrease is due mainly to our previously announced reduction of out-of-state efforts.

Additionally, architectural systems products decreased $900,000 or 60%. In addition to the decreased sales in our out-of-state market, Florida sales, which represent 85% of total sales compared to 81% a year ago decreased $1.3 million or 4.1%. However, $900,000 of the decrease was in the architectural systems products.

Our international sales increased $200,000 or 13.3%, mainly driven by our impact products. By product line, our impact products decreased $700,000 or 2.7% to $25.6 million. Included in our impact line is architectural systems, which decreased $900,000, and Vinyl WinGuard, whose sales decreased $800,000.

Offsetting these decreases in our impact line are our Aluminum WinGuard products, which increased $300,000, and our PremierVue products, which increased $800,000 when compared to prior year.

We launched two consecutive Crystal award-winning sliding glass doors in the past two years. The most current launch was the vinyl sliding glass door launched in the beginning of 2011, which contributed $1 million in additional revenue in the fourth quarter. Our non-impact products decreased $2.6 million or 20.4% to $10.1 million. This decrease is driven entirely by a decrease in our vinyl non-impact products which decreased $2 million in our out-of-state markets.

Our decline in overall sales compared to last year occurred in R&R, down 6.4%, and new construction, down 13.4%. As a percentage of total sales for the fourth quarter of 2011, R&R sales accounted for 75% and new construction sales accounted for 25% of sales.

Comparing our fourth quarter to the prior year fourth quarter, our adjusted net loss was $3.6 million compared to a net loss of $4.6 million in 2010. Our gross margin was 25.1% versus an adjusted gross margin of 25.7% in 2010. The adjusted gross margin decreased mainly due to temporarily higher than anticipated material usage mainly in our glass operations.

We also experienced an increase in the cost of materials including an increase in our average cost of aluminum and glass, which both increased 5% of the prior year. The cost increases have been somewhat offset by a price increase announced in the first quarter of 2011. Also offsetting some of these cost increases is the benefit of lower spending in the overhead area as a result of the consolidation.

SG&A costs adjusted for the 2011 consolidation charges decreased to $1.8 million partly driven by cost savings also from the consolidation. In total, the consolidation savings for fourth quarter were $1.5 million and these savings will continue.

Adjusted EBITDA was $631,000 in the fourth quarter of 2011, which was up from $228,000 in the prior year. The increase in adjusted EBITDA with lower sales was driven by the savings generated from consolidations.

Total housing starts were up 22% for the quarter. Multifamily starts were up 95%. Single-family starts increased 8% compared to a year ago. Although starts have increased, they remained below 10,300 for the quarter and we believe this increase is in the entry-level housing market, a market PGT does not actively participate in.

With that, I will turn the call over to Jeff, who will review the results for the quarter in greater detail.

Thanks, Rod. Let me give you more detail regarding our fourth quarter. We reported net sales of $35.7 million, a decrease of 8.5% from prior year's fourth quarter. Sales into the R&R market represented 75% of our total sales and were down 7% mainly from the WinGuard product line.

In total, our WinGuard products, both aluminum and vinyl, continue to lead our sales, representing approximately 65% of sales in the fourth quarter of 2011 compared to 61% of sales in the fourth quarter of 2010.

Total impact product sales, which include WinGuard, PremierVue and Architectural Systems product lines represented 72% of our sales in the fourth quarter of 2011 as compared to approximately 67% in the fourth quarter of 2010.

Florida sales were 85% of total sales in the fourth quarter compared to 81% of sales in the fourth quarter of 2010. Florida sales decreased $1.3 million in the quarter, driven by a decrease in architectural systems sales of $900,000, a $700,000 decrease in vinyl non-impact sales, and a $300,000 decrease in WinGuard sales, offset somewhat by a $700,000 increase in PremierVue sales.

Breaking down our sales by product line for the fourth quarter compared to 2010's fourth quarter, we have PremierVue sales were $1.7 million versus $1 million, up 70%; Eze-Breeze sales were $2.6 million versus $2.5 million, up 4%; WinGuard sales were $23.3 million versus $23.5 million, essentially flat; Aluminum non-impact product sales were $4.4 million versus $4.6 million, down 2%; Vinyl non-impact and other product sales were $2.7 million versus $5.5 million, down 51%; Architectural Systems sales for $600,000 versus $1.5 million, down 60%.

Our adjusted gross margin for the fourth quarter was 25.1% versus 25.7% in the prior year. Our decrease in gross margin percentage of 16 basis points was driven by temporary higher-than-expected material usage mainly in our glass operations, reducing margins by [150] basis points. An increase in the cost of material including aluminum reduced margins by 170 basis points.

Cost absorption consistent with lower sales reduced margin by 160 basis points. This was offset somewhat by the impact of our price increase announced in the first quarter, which increased margins by 230 basis points and a reduction in overhead spending due mainly to consolidation efforts, which increased margins by [190] basis points.

In regard to our glass operations, I am pleased to report that our December results show glass usage back to normal levels. This trend has continued into our preliminary January and February operating results.

Our average cost of aluminum was approximately $2262 per metric ton during the fourth quarter comprised of spot purchases averaging $2134 per metric ton for approximately 42% of our needs and hedge purchases averaging $2354 per metric ton for 58% of our needs. This compares to fourth-quarter 2010's average cost of $2158 per metric ton.

As of today, we are hedged approximately 57% of our estimated needs through 2012 at an average of $2078 per metric ton.

Our adjusted selling, general, and administrative expenses were $11.6 million, down $1.8 million compared to the fourth quarter of 2010. Driving this decrease was consolidation savings of $700,000, lower bad debt expense of $300,000, lower bonus and stock compensation-related accruals of $1.5 million, offset by an increase in advertising expense of $400,000 and an increase of $300,000 in warranty-related costs.

Adjusted for consolidation charges and non-cash stock compensation expense, SG&A as a percent of sales decreased 31.6% of sales compared to 32.8% of sales in 2010.

During the fourth quarter, we performed our annual assessment of our trade names and determined that based on a decline in the estimated fair value of those trade names, a non-cash impairment charge of $6 million was required.

Interest expense was $900,000 compared to $1.2 million in the fourth quarter of 2010. Interest expense was lower by $300,000 due mainly to lower debt levels outstanding during the quarter and the effect of our lower interest rates.

Other income includes $900,000 for the gain on the sale of two nonessential assets used in our former North Carolina operations. During the fourth quarter of 2011, we recorded a deferred tax benefit of $2.3 million related to the impairment charge on our trade names. Outside of the benefit we have an effective tax rate of 0% due to the full valuation allowance that we apply to our deferred tax assets.

As we become more profitable, we will be in a good position to utilize these deferred tax assets by offsetting future income.

We had net loss in the fourth quarter of $6.3 million versus net loss of $12.2 million in the fourth quarter of our prior year. The net loss in the fourth quarter of 2011 includes $6 million in non-cash impairment charges as well as $2.3 million tax benefit related to that charge.

The net loss in the fourth quarter of 2010 includes $2.1 million in consolidation charges and $5.6 million in non-cash impairment charges. Adjusting for these charges, our net loss was $3.6 million in the fourth quarter of 2011 or $0.07 per diluted share.

Adjusted EBITDA was $631,000 for the fourth quarter versus adjusted EBITDA of $228,000 for the fourth quarter of 2010. The 2011 EBITDA was adjusted for the $6 million non-cash impairment charge and $900,000 for income on the sale of the North Carolina assets. The 2010 EBITDA was adjusted for consolidation charges of $2.1 million and $5.6 million in non-cash asset impairment charges.

The increase in EBITDA of approximately $400,000 is due mainly to the impact of our consolidation in savings and spending categories previously mentioned, offset by a decrease in our sales volume and investments in marketing. As additional information, our fourth-quarter depreciation and amortization totaled $3.3 million. A reconciliation of the net income and EBITDA is included in our earnings release for your reference.

Turning to our balance sheet at quarter end, DSOs decreased to 39.2 days. In reviewing free cash flow for the quarter, we had adjusted bank EBITDA of $1 million, capital additions of $800,000, cash paid for interest of $700,000, proceeds from the sale of assets of $1 million, and we received $2.6 million in working capital. These items helped drive our cash on hand to $10.9 million at the end of the fourth quarter, compared to our subsequent quarter cash balance of $7.9 million.

Our net debt and corresponding leverage ratio at the end of the fourth quarter of 2011 was approximately $34.6 million and 3.1 times.

The housing industry continues to suffer from the negative economic factors. Both new construction and remodeling remained weak and we believe will do so through the first half of 2012. While we have seen indicators suggesting the industry is ready for steady improvement, our continued sluggish economy and high unemployment in our core market of Florida constantly remind us that the timetable for true sustainable growth remains uncertain at best.

However, we have many opportunities available to us such as seeking additional market share in the Southern Florida markets, where we are successfully leading the market shift towards energy-minded products and investing in advertising to promote our brands; continuing post-consolidation improvements in our transportation area, our class material usage and labor efficiencies; and lastly, capitalizing on our value proposition that has defined us for over 30 years. Our value proposition to our customers is that we will deliver exceptional customer service before, during, and after the sale, give peace of mind to our customers and consumers through innovation, and remain steadfast in our commitment to be the best.

With that, let me turn the call over to Rod. Rodney?

Thanks, Jeffrey. The Florida market continues to present challenges; however, PGT is poised to meet those challenges. With the completion of the consolidation in Florida, we have now refocused on our core markets. We are confident that the high standards maintained by our people and our excellent products will be the catalyst for PGT to remain the industry leader in impact-resistant windows and doors.

Once again I would like to recognize our employees for their amazing effort in successfully combining our facilities and proving out our cost savings.

With that, I will conclude and Jeff and I will be happy to answer your questions. Kevin, if you could take the first question, please.

(Operator Instructions). Rob Hansen, Deutsche Bank.

Hey guys. I just had a question -- you guys mentioned that the entry-level kind of segment has been driving permits and starts a little bit higher in Florida lately. And if this trend were to continue, would you ever consider offering a product for that type of buyer? I realize this would probably be a little bit lower margin business but it seems like you have your G&A costs at a good place where you could drive significant leverage up for that. So I just wanted to get your thoughts about that.

You know, Rob, this is kind of a forward-looking statement, but it's a topic of discussion that we have had a number of times and if you remember back four or five years ago, I'm not sure of the exact time frame, we had a series of products that was really kind of targeted toward that entry-level home and that was when things were really going fast. And it didn't serve our market well because of the service and the additional benefits that we brought, the service before, during, and after the sale, a lot of engineering support and field support.

We still have that product line, so it is something that we've talked about. It would take a little bit of floor space. We look at our existing product line and we talk a lot to the builders that are building those types of homes. They know us pretty well here in Florida. We are a name that is recognize real well.

So it's a market that we will all watch very closely, see if that's what the typical market will be as things start recovering, and if it looks like it's going to be the typical market, it's a market that we will probably try to play again. I don't know that we play in it real well but will try to play in that market.

One of the areas, Rob, just as an FYI too, is our Southeast market, meaning Miami Dade area. We continue to get low-cost cheap windows into that market and pressured on price. So what we internally are doing is aggressively attacking that market and that could come through innovation, through product. It could come through a multiple of ways, but that is a market we intend on maintaining a dominant presence in and combating wholeheartedly.

Okay, and just you mentioned that December was pretty good. I just wanted to see if you had any thoughts in terms of why December was a lot better than October, November?

Yes, I think in talking to the industry, I think all of its almost speculation but in talking to the industry and the other companies that are kind of in serving the same industry, we all saw a really kind of painful fall where things really dropped off and we all -- as we are talking, it's like what happened in December? We don't know if it was holiday buying and people felt a little bit more at ease as things picked up a little bit. Don't know that any one of us can really put our finger on it and say why December was somewhat better than October and November.

Optimism is a little stronger out there. We are seeing more stuff bid. Not all that stuff is turning into jobs but there seems to be a more positive attitude and here in Florida, there is some national builders that have done a pretty good job of making sure that they've kept their land costs down low or they are sitting on land that's a little bit lower.

They've sold a couple of spec homes and they're talking about building a few more. So we are seeing those pockets of activity and as we start getting positive news in the media and people can start getting money out again, things will start picking up.

So it's kind of hard to put your finger on exactly what drove December and what that means for 2012, but it was a nice recovery from a pretty difficult year.

Okay, just one last quick one was just what was your WinGuard gross margin for the last two quarters?

Two quarters?

Yes.

Gross margins were in the fourth quarter for WinGuard was 37% and in the third quarter, it was 39%.

All right. Thank you very much, guys.

Sam Darkatsh, Raymond James.

Signed on halfway through the call, so I apologize if this was covered. If it was, answer me real briefly. Right now, what is your utilization rate? How many shifts are you running in Florida? Once you start getting the peak or expected peak seasonally this summer, where do you expect to be from a shift standpoint?

On the shift standpoint from the glass side, we have both the glass production and IG side of our business, we are running two full shifts in those areas with I would say a partial third. On the production side, we are running one full shift and some lines have a second shift going -- the vinyl lines, for instance, all the vinyl lines have two shifts going.

Peak, we would like to see that second shift pretty much full. We don't see a need right at this point for a third shift because some internal moves we are making in terms of equipment and redesigning some lines and adding some capacity. But we would love to see at the peak here in the second quarter for instance when our sales typically increase, we expect to be running two full shifts in the production side.

Sam, the other thing that's happened, too, if you look at running a shift or a shift and a half right now, we could kind of double it, so that wouldn't be too difficult, but we really embrace cross-training with our employees especially on the manufacturing floor and the ability to move employees around so that we can flex them into the areas that are a little bit busier and maintain our labor hours and our labor costs.

We have found we've been very successful at doing that and we think we will be much better at it as we go through this year.

Second question, I know you have hedges in place. I think you went through some of those numbers, Jeff, earlier, but aluminum generally speaking has been pretty flat at least of late. I know the industry had some price increases last year when aluminum was moving considerably higher but now that it has flattened out, are you seeing price degradation or folks that are suffering some financial dire straits really being aggressive on price now that they don't have to offset that or just describe the pricing environment, if you could.

I think it's almost two different subjects I think that you are talking about. The aluminum side pricing has been relatively stable. It dropped a little bit toward the end of the year and we got some good hedges in place. It's bounced up a little bit and it's kind of held at the upper level so if you go out pretty far, you can't do a lot.

We've talked to a number of financial experts that know a lot more about the world economy than we do and I have heard a number of them say that if China was to have a really slow year this year, it would only be about 8% growth.

So you look at the number of cars being sold or the amount of infrastructure going in, there's still a pretty good global demand for aluminum, so we don't think that price is going to drop dramatically. But maybe it won't go up as much as some people have predicted.

So we are actually at a pretty good spot because we are under where the market is right now.

As far as pricing pressure, yes, there's definitely pricing pressure and pricing pressure in markets that are doing pretty well from an aluminum point of view. The vinyl side of the market is a little bit more stable. I think everyone out there right now that's getting a little bit desperate have run some really prices out to try to hang on for a little while. We have seen a number of window companies just recently file bankruptcy and go into reorganization or be sold.

So when we look at that South Florida, Jeff talked a little bit about the South Florida market, the Southeast Florida market. There's a lot of small manufacturers that manufacture maybe one product or two products that don't have a complete product line that have very little overhead and sell based on price. And so there is some pricing pressure in that market.

Last question then. The Architectural Systems being off, I obviously can recognize the fact that the multifamily activity is coming at the low end here in the state. Ultimately are there costs associated with that line that make it so it's just making those products -- aren't necessarily meaning it is a factory filler so you don't really get the absorption rates? How important is it for you to be ultimately in that Architectural Systems business if this is the new normal and you're not looking at a whole lot of growth conceivably from here on out in that end market?

That line right now doesn't take hardly any space up in our factory. The space that we use to manufacture that product can be utilized to manufacture some of the other products that we make also, so we utilize that equipment pretty well.

But it's exactly what we look at. It's -- the architectural line doesn't really serve the multifamily market. The multifamily market is served more by our stronger WinGuard products and it serves even a higher market than just that multifamily. Unless you start getting into that 15-story, 20-story type buildings. Then it serves the market very well.

So there's a little bit more activity in that as we go through this year, so we will watch it and we will see what it does and we will look at floor space. And it kind of ties back into the first question that you asked about utilization of the facility.

Once we hit two full shifts, we will have to take a close look at that line and see what's driving those two full shifts and see if that's the product line that does it or if we could better utilize that floor space. But we are a year or more away from that.

Yes, and I would just add to that, Sam, I think to really be competitive in that market, successful in that market we'd probably have to expand our product line somewhat. We can go in that market with PremierVue. Vinyl is not big in that arena. We think it has a future given the thermal and the pressures we can get now from that line and we would probably go in there and we're currently actually looking, actively looking for more of what's called an architect kind of rep, someone that will go out and call on architects and try to get PGT spec-ed on jobs as opposed to coming in and just bidding when another company has been spec-ed. It's a different -- not industry -- but it's a different model going (multiple speakers) industry.

Thank you much. I appreciate it.

(Operator Instructions). Saquib Toor, Knighthead Capital.

I had a few questions. I guess the first one was the commentary you gave on the trends in December, has that continued into January and February?

What we've seen in January and February is pretty active bidding activity on the parts of our customers and what we are seeing as we talk to most of them is in the past where they have had one or two bids, now people are walking in and saying I'm getting this bid but I'm going to get five more bids. I'm going to get six more bids and so the bidding activity has been -- has picked up significantly, quite a bit.

The closing hasn't really picked up highly yet, so I'm kind of torn with what that means for the market. I think long term that's a good thing because people are actively out there bidding. That means they are interested in buying product. They are interested in doing projects. Projects are getting funded again.

The new normal is a little different than it was back in the day. A lot more bidding activity and a lot more people bidding it so you've got to sharpen the pencil of little bit.

But when we look at our market down here where we have such a dominant share, we kind of look at it and say give us a chance as long as we can get bid the project we think we've got a pretty good shot of getting it when it finally gets done.

So I wish I could tell you that December and January bidding activity is turning into quick sales. I think what it means is that six months, 12 months as these projects come out of the ground maybe we see that happening. But I think when you look back at the end of last year, that's a little bit of what happened in October, November. That was a result of the middle of the summer not being too strong and December being stronger could've been bidding activity that happened before that.

So tracking that, we used to have a really good tracking with you bid it, it gets let out and three months later, you're actually producing product for that project. Now the lag between bidding and the project doesn't seem to have a timeline that you can associate with it. Sometimes it's three months, sometimes it's a year.

Got it. And I guess some commentary on the competitive environment. When you -- I guess see competitors in the South Florida market, are you seeing competitors with similar type products like hurricane-resistant type products or is it more like traditional double pane or single pane windows that they are just trying to sell into your market?

If we talk about the Southeast Florida market, almost everything that gets sold in that market, they have had an impact code for a long time, since (multiple speakers) and they are moving in our opinion -- they're moving a little bit away from shutters because you've got to -- it's active. You've got to put them up and take them down, put them up and take them down.

So the competitors were talking about, the small manufacturers that they might manufacture a single hung window and a fixed light but they don't have any doors or they might manufacture a door, they don't have any windows.

But it's -- if you have a piece of equipment you can manufacture something and I think you got through the entire approval process but with code being in place now for almost 17 years, it has given people a chance to kind of ramp up their manufacturing.

So a little bit more of a competitive market in that area and again go back to the pricing where customers before would not bid, would not use two or three or four different manufacturers to do a project, some of them now will.

Got it. In terms of the manufacturing, and just thinking about fixed cost absorption, are there other products you could potentially either get into or expand into that would allow you to better absorb your fixed costs in that facility in Florida?

I think right now that's probably not what we're looking at as much as we moved the North Carolina facility. We consolidated into one but we eliminated $370,000 worth of overhead costs there, brought that $42 million in sales here. We have got 75 to 80 different product lines with little tweaks and stuff that we manufacture out of this.

So from a window and door point of view, we pretty much have complete product lines across the board for the areas we serve. Jeff mentioned the Architectural Systems. We might be a bit short on that one, so we could add on there but I think it's really having the complete product lines, utilizing our floor space pretty well here. I mean, it's pretty full and then it's just a matter of driving some more sales.

Got it. My last question is just thinking about EBITDA. In the last year, the Company has done around $12 million to $13 million and with the closure of the north Carolina facility, we should see I think in your last call you talked about a $6 million or $7 million annualized benefit.

Is that the right way -- like if things are kind of flat from 2011, 2012, is the right way for me to think about EBITDA going forward is basically EBITDA this year plus the $6 million to $7 million in savings or are there other things that are moving around that could impact it pretty significantly?

We saw a little bit of the effect from the consolidation at the end of last year, so the $12 million or $13 million, while there were some consolidation costs involved there, there were some cost savings there also. So about $3 million of that $6 million to $7 million was in last year's numbers and we will see the additional savings this year. And I think with everything being stabilized, we will perform at a little bit better level than we did last year also. So that's the number that you'll have to figure out.

I guess my commentary would be that performance we saw the past three months, December was a good performance, January from an operation standpoint was good and so far here in February, we are performing to or better than consolidation plan.

Got it, and I guess from a pricing perspective, that shouldn't be a big drag going in 2012?

No, I don't think so. I think we will be very competitive in the market. We will run some initiatives and we will run some programs out there, but we'll talk about those on all of our calls and let you know exactly what it does to us. But I think we'll play around with that market but I don't think it should be a big drag.

Great, thanks for answering all the questions.

I am not showing any further questions at this time. I would like to turn the call back over to Jeff for closing comments.

Thank you for joining us for today's call. We look forward to speaking with you again next quarter. If you have any more questions, please feel free to call me. Have a good day.

Ladies and gentlemen, this does conclude today's presentation. You may now disconnect and have a wonderful day.