12/21/2021

speaker
Operator

Ladies and gentlemen, thank you for standing by and welcome to the Apogee Enterprise Fiscal 2022 Third Quarter Earnings Conference Call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask the question during this session, you will need to press star then one on your telephone. If you require any further assistance, please press star then zero. I would now like to turn the conference over to your speaker for today, Jeff Hibson. You may begin.

speaker
Jeff Hibson

Thank you, Tawanda. Good morning and welcome to Apogee Enterprises' fiscal 2022 third quarter earnings call. With me today are Ty Silberhorn, Apogee's chief executive officer, and Nishit Gupta, chief financial officer. I'd like to remind everyone that there are slides to accompany today's remarks. These are available in the investor relations section of Apogee's website. During this call, we will reference certain non-GAAP financial measures. Definitions of these measures and a reconciliation to the nearest GAAP measures are provided in the earnings release we issued this morning, which is also available on our website. I'd like to remind everyone that our call will contain forward-looking statements. These reflect management's expectations based on currently available information. Actual results may differ materially. More information about factors that could affect Apogee's business and financial results can be found in today's press release and in our SEC filings. And with that, I'll turn the call over to you, Ty.

speaker
Ty Silberhorn

Thanks, Jeff, and thanks, everyone, for joining us this morning. Today, I'll share some highlights from the third quarter and provide an update on how we're executing our new strategy. Following my comments, the sheet will provide more details on the quarter and our full year outlook. Then, of course, we'll be ready to take your questions. Let's start with the third quarter highlights, which are on page four of our slide deck. I'm proud of our team's efforts, which delivered a solid performance this quarter. We continued our positive momentum, delivering margin expansion and adjusted earnings growth compared to last quarter. Margins and adjusted earnings have now improved sequentially each of the past two quarters. This was led by continued strong performance in architectural services. Services revenue reached a record $92 million in the third quarter and continued to deliver strong profitability with 10% operating margin in the quarter. In addition, we won several new project awards during the quarter. continuing to build our project pipeline for the coming years. We are also seeing encouraging progress in our other segments. Large-scale optical continued its recovery with 8% year-over-year growth. In framing systems, we achieved solid year-over-year growth and margin expansion. Through three quarters, framing's adjusted margins have improved by 40 basis points compared to last year. We've reached these gains even as we continue to face significant supply chain and inflation headwinds. The pricing actions we've taken in response to inflation are beginning to offset some of those higher costs. We are also realizing the benefits from our restructuring actions and our relaunch of lean to drive plant productivity. We expect framing will make further margin progress during the fourth quarter. Architectural glass had adjusted operating margin of 3 percent. Now, this is still a long way from what we believe the glass segment can deliver, but it was meaningful progress compared to the second quarter, and we saw solid productivity gains materialize in the final month of the quarter. Turning to cash flow and the balance sheet, our financial position remains very strong. We had $28 million of free cash flow in the quarter. Year-to-date, we have now generated $73 million of free cash flow, which is more than 180% of adjusted net income. With this strong cash flow, we continue to return capital to shareholders, and we improved our already healthy financial position. We achieved these results in what is still a challenging operating environment. COVID continues to impact our broader markets, and like many companies, inflation remains a significant challenge. We have seen meaningful cost increases for freight, aluminum, glass, paint, and other materials used in our operations. We also continue to experience challenges in our supply chain, and in some cases, these disruptions have impacted our service to customers. Throughout the year, we have taken actions to mitigate inflation and the supply chain issues. These actions are beginning to have a positive impact on our results. We continue to focus on improving execution. We're closely managing our controllable costs. We've adjusted our pricing where appropriate. we're working to pull forward the benefits from our restructuring actions as quickly as possible. We expect to make further incremental progress in the fourth quarter. This gives us the confidence to narrow our full-year earnings guidance to the higher end of our previous range. Just three weeks ago, we hosted our Investor Day, and I'd like to thank everyone who attended, either in person or virtually. During that investor day, we outlined our new enterprise strategy to deliver profitable growth and improved return on invested capital. As highlighted in slide five of today's deck, our strategy has three pillars. First, we are working to become the economic leader in our target markets. With clear go-to-market strategies, differentiated offerings, and competitive cost structures, to enable us to be a top margin generator in our target markets. Second, we will actively manage our portfolio to drive higher margin and ROIC performance. We will accomplish this by scaling and expanding our top performing businesses, actively addressing underperformers, and investing to add new differentiated offerings to drive growth. And third, We will strengthen core capabilities and platforms, the foundation of which is building an operating model that will deliver greater efficiencies, more scalability, and enable sustained profitable growth. During the third quarter, we made progress in each of these three pillars. We continue to execute the restructuring and cost actions we announced in August. The realignment of framing systems is nearly complete, moving from what had been six decentralized business units to a more integrated business that better leverages the scale and capabilities of the combined organization. These changes are bringing more clarity to our go-to-market approach and are also enabling improved execution, reduced costs, which in turn will generate higher margins. We are also making progress in architectural glass. At the end of the quarter, we completed the sale of our facility in Statesboro, Georgia. We also wrapped up operations at our Dallas location. All production has been successfully transitioned to our flagship glass facility in Minnesota. We did all of this while maintaining high levels of service and delivery for our customers. These actions position us to pursue our strategy of focusing on premium offerings for glass where we can differentiate and deliver more value for customers. We are also accelerating improvements in glass segments cost structure and driving productivity to improve margins. We're on track to transition our soda wall business from framing systems to the services segment. We expect this will be completed early next fiscal year, and this move will unify our offerings for complex curtain wall projects and will enable improved operational performance for soda wall. We're moving forward with our enterprise transformation efforts, so we have several projects underway to strengthen core processes and systems. This will provide new digital and back office capabilities across several functional areas, allowing us to support the businesses more efficiently. We are beginning to deploy elements of these new systems now, and we expect to make further progress in the coming quarters. Finally, we took important steps to reinvigorate our lean and continuous improvement program. We added a new leader to head those lean efforts, with an initial focus on architectural glass where we are seeing promising early results. In the coming quarters, we will expand our lean toolkit to other parts of the business with our ultimate goal of embedding lean into the culture of how we work and further develop our talent. We are still in the early stages of executing our new strategy. And over the next several quarters, we will continue our strategic pivot, positioning Apogee to create peak value for all stakeholders, driving toward our long-term financial goals. I'm excited about the path we see ahead for Apogee, and I am confident we can achieve the goals that we've set for ourselves. With that, let me turn it over to Nasheed to provide more details on the quarter and our outlook.

speaker
Jeff

Thank you, Ty, and good morning, everyone. This was a positive quarter for Apogee on several fronts. We sustained the momentum in our business. We continued to generate strong cash flow, and we made further progress on our enterprise transformation. Let me provide some more details on the quarter. Starting with consolidated results on page six of our earnings presentation, total revenue grew 7%. This was led by growth in architectural services and framing systems. Large-scale optical also posted solid growth. As expected, volumes were lower in architectural glass, reflecting the lower order volume in that segment over the past year. The quarter included $3.4 million of pre-tax restructuring costs. These are related to the actions we announced in August. The restructuring costs reduced our reported gross margin in the quarter by approximately 100 basis points. Year-to-date, we have incurred $24.2 million of restructuring costs. Of this, $7.5 million have been cash expenses and the remainder were non-cash charges. we anticipate another $2 to $3 million of costs in the fourth quarter. We're pleased with how our teams have executed the restructuring. Restructuring costs are tracking below our initial estimates, and we're accelerating some of the cost savings. We remain on track to be complete with our restructuring in the first quarter of fiscal 2023. Excluding the restructuring costs, adjusted operating income was $21.1 million. This was down from $31.8 million in the last year's third quarter. As a reminder, last year's third quarter included a $7.4 million upside related to a new market tax credit in the glass segment. Also, the temporary cost actions we took in response to COVID added another 7 million of operating income in last year's third quarter. Inflation also continued to be a significant headwind in the quarter. The gross impact of inflation in the third quarter was $21 million. We were able to offset 12 million of this through pricing actions for a net inflation impact of $9 million. Fiscal year to date, the net impact of inflation has been $29 million. We expect inflation pressures will persist in the fourth quarter and into our next fiscal year. However, as we move forward, we expect our pricing and cost actions will offset a larger portion of inflation headwinds. Between the new market tax credit, reversal of temporary cost actions, and inflation, we faced over $23 million of year-over-year headwinds in this quarter. We were able to offset over $12 million of this through benefits of our restructuring cost actions, a procurement saving, and an improved sales mix. As we move into the fourth quarter and next year, I am confident we will continue to drive incremental margin gains. Let me shift to the non-operating items on the income statement. Net interest expense was down $1 million, driven by lower debt balances. The quarter included $3 million pre-tax impairment charge. This was related to a minority investment in a glass technology company. This right out represents the entire value of Apogee's investment in this company. Our tax rate was 21.7% compared to 23.5% in last year's third quarter. Over the long term, we expect an average tax rate of approximately 24.5%, but this can vary from quarter to quarter. Finally, our share count continues to trend lower due to stock repurchases. Putting it all together, we reported GAAP net income of 44 cents per share. Excluding the restructuring and impairment costs, adjusted earnings came in at 63 cents per diluted share. While earnings were lower year over year, this was a nice sequential improvement with 53 cents per share in the second quarter. Let's turn to segment reserves, which are on slide seven. Starting with architecture of framing systems, framing revenue grew 11% compared to last year. This was primarily driven by pricing actions we have taken to offset inflation. Operating margin was 7%. That is a 170 basis point improvement compared to last year. The margin gains were driven by improved pricing and benefits from our restructuring and cost actions, which offset the impact of inflation. Moving to architectural glass, revenue was down 12%. As expected, this was primarily driven by lower volumes. We've had a few new projects awards in the last year, while non-residential construction has been in a downturn. We are also strategically shifting away from some lower margin sales. The lower volume was partially offset by a more favorable mix. Glass reserves included $3.5 million of restructuring costs. Excluding the restructuring costs, adjusted operating income was 3%. As mentioned earlier, last year's quarter included $7.4 million of operating income related to new market tax credit. Glass margins improved sequentially compared to 0.5% in the second quarter. We are beginning to achieve cost savings from restructuring, as well as productivity gains from our lean program. Margins also benefited from an improved sales mix. In architectural services, revenue grew 20% to $92 million. This was a new record for the segment. Operating margin was strong at 10%. Services continued to have solid project execution. However, margins were lower than last year due to a less favorable project mix. We are also encouraged by the strong order flow in architectural services. Net order flow has increased each of the past four quarters and backlog held steadily at $572 million. Turning to large-scale optical, revenue of $27 million grew 8% compared to last year's third quarter. This was primarily driven by more favorable sales mix. LSO margins were solid at 21.9%. Margins were lower than last year's third quarter driven by a one-time cost from expedited trade, which offset the benefit from improved sales mix. Finally, our corporate cost increased this quarter to $6.9 million. This was driven by increased healthcare costs. Turning to page eight, our cash flow and balance sheet remained strong. Cash flow from operations in the quarter was $31 million, This brings year-to-date cash flow from operations to $86 million. We are on pace to have another very strong year of cash generation. Cash flow is lower than last year, which was a record year for cash flow. Year-to-date, capex of $13 million is below last year's level. We slowed some investment as we completed our enterprise strategy work earlier this year. Based on year-to-date spending, we now expect full-year CapEx of approximately $25 million. This is down from our previous estimate of approximately $35 million. Now that we have completed our strategy work, we expect CapEx will ramp up in the coming quarters as we invest in high return projects to advance our strategy. We continue to return cash to shareholders. Year-to-date, We have returned $44 million from share buybacks and dividends. Our buybacks have reduced our outstanding share count by 3% compared to last year. Our balance sheet remains very strong. Net debt is down to $85 million. We have no significant debt maturities until June of 2024, and we have no borrowings on our $235 million revolving credit facilities. This strong financial position provides significant flexibility as we begin to execute our new strategy. Now turning to our outlook for the rest of fiscal 2022, which is on page nine of our presentation. As I mentioned, we are narrowing our full year guidance. We now expect fully adjusted earnings between 225 to $240 per share. As a reminder, this guidance excludes the impact of restructuring and impairment costs. We expect cost inflation and supply chain challenges will continue in the fourth quarter. We are working to mitigate these headwinds by adjusting pricing to offset inflation, continuing to focus on execution, closely managing controllable costs, and working to accelerate the benefits from our restructuring. These actions should drive further sequential progress in the fourth quarter, which gives us confidence in the full year outlook. In the fourth quarter, we also expect to realize a pre-tax gain of approximately $19 million related to sale of architectural glass facility in Statesboro, Georgia. We intend to exclude this gain from our adjusted reserves. I would like to wrap up by acknowledging our team's efforts this quarter. We have made great progress on restructuring actions we announced in August. And we have continued to build momentum in creating a backbone of core capabilities and platforms. Apigee's transformation is well underway, and our teams are working hard to make Apigee a top-performing company. With that, I'll turn it back over to Ty for some concluding remarks. Thanks, Nasheed.

speaker
Ty Silberhorn

To summarize, we are very encouraged by the progress this quarter. Our entire team is focused on executing our new strategy. Despite some significant near-term headwinds, the work we are doing is beginning to show in our financial results. We sustained our momentum, delivering another quarter of sequential earnings growth. Our restructuring plans are progressing ahead of schedule, allowing us to accelerate those cost benefits. The pricing adjustments we made in response to inflation, combined with our cost actions, are beginning to offset the impact of those higher costs. And I'm particularly pleased by the early progress we've made with relaunching our lean and continuous improvement programs. We expect to make further gains in the fourth quarter as we continue to execute our strategic pivot. I'm confident that the actions we are taking now will position Apogee for sustained profitable growth in the coming years. With that, we are ready to take your questions.

speaker
Operator

Thank you. Ladies and gentlemen, as a reminder to ask a question, you will need to press star then 1 on your telephone. To withdraw your question, press the pound key. Again, let's start one to ask the question. Please stand by while we compile the Q&A roster. Our first question comes from the line of Chris Moore with CJS Securities. Your line is open.

speaker
Chris Moore

Hey, good morning, guys. Thanks for taking a couple questions. Good morning. Good morning. Good morning. Yes, interesting inflation discussion. I appreciate the detail. Okay. You talked about framing revenue added by kind of the flow-through pricing actions to offset some of the inflation. So first of all, is that both the quick and the long lead time where the pricing is being increased?

speaker
Ty Silberhorn

Yeah, it's both, Chris. As we look at that, the moves that the framing team has been making the last couple of quarters, Part of the challenge we've had in kind of catching up to those inflationary pressures was due to some of the longer lead time items in that business. And some of the shorter-term items, they were able to get some of that pricing through. But we're seeing that they've made progress. You know, each month of the quarter, they started to close those gaps.

speaker
Chris Moore

Got it. So just so I understand the mechanics, when you sign a contract on the long lead time stuff, Do you pre-buy the aluminum at that point in time, or how does that work?

speaker
Jeff

Yeah, Chris, so if you think about our architectural services business, we have enough lead time for us to be buying in advance with hedging on aluminum and commodities like those. For shorter lead times, which are like six months, three months in the framing segment, the opportunity for locking in pricing is limited. What our team in procurement is doing is they're really going back to the vendors as soon as they know about the orders and locking in the supply chain and volumes we need. Right now, Chris, the challenge is really to get the volumes in place more than pricing sometimes. So I would say framing segment, less on locking in pricing. Services segment, more working towards locking in pricing for long-term contracts.

speaker
Chris Moore

Got it. That's helpful. And when you look at pricing overall, is it the framing that is kind of the biggest issue still moving forward in terms of that catch-up?

speaker
Ty Silberhorn

Yeah, framing, and because of the short cycle time, they have had by far the biggest headwinds on material cost inflation. So they've had the most work to do, and they have a mix, right? They do have some stuff that's kind of medium-term and a little bit of longer-term. So that's where we've seen the bulk of the headwinds. It's also where we've seen the bulk of the price realization, as you might expect, as they're trying to close that gap. So the driver for top line, as Nasheed commented on, was in fact pricing. If we look at volumes, volumes were still down slightly, which is what we expected given where the market, as we see it, is just bottoming. So what has been driving that top line revenue number for framing the last couple of quarters is really around the price actions.

speaker
Chris Moore

Got it. And my next one really goes probably back more towards some of the investor day stuff that we talked about. So the target operating margin is 10% plus by fiscal 25. And I'm just trying to understand better how you view, is that a mid-cycle target or kind of, You know, in the past, you know, we talked about that 1,000 basis point increase, you know, trough to trough. This 10% plus, is that mid-cycle? Or maybe you can just help me understand a little bit better on that.

speaker
Ty Silberhorn

Yeah, I would say, Chris, as we looked at that, we're kind of putting that as a minimum that we want to achieve. Now, if there's a significant downturn like we saw when the pandemic started nearly two years ago, We want to be in a better position that we don't see as big a drop in our margins, but that's something that might pull us down below that 10%. But then also in a very strong cycle, we expect that we'll be achieving comfortably above that 10%.

speaker
Chris Moore

Got it. That's helpful. I'll jump back in line. I appreciate it, guys. Thank you. Thanks, Grace.

speaker
Operator

Thank you. Our next question comes from the line of Eric Stein. with Craig Hallam. Your line is open.

speaker
Eric Stein

Good morning, everyone. Good morning. Hey, so maybe just to follow up on that last question, and I do appreciate you quantifying the impact on the materials cost side for the year, but also 3Q. Is it fair to say, though, I mean, it seems like you feel that potentially the worst of it happened in the third quarter. Now, maybe that is not the case. But I'd love your thoughts, you know, given all the steps you're taking, how long you think until you kind of get ahead of this?

speaker
Jeff

Yeah, so if you think about the inflation and net inflation, we saw the quarter two being one of the highest of the three quarters. And as we move into quarter three, we're already seeing an improvement on net inflation. And as we had indicated in our quarter two earnings release, by end of Q4, we will have enough price increase to offset the inflation and be close enough to the gross inflation.

speaker
Eric Stein

Got it. Okay, that's helpful. Maybe just turning to framing, if I'm not mistaken, I think you had the highest orders there since before COVID, and I know some of that might be prices. But, you know, just curious your thoughts on that. I mean, do you think this is the start of some of the operational steps you're taking there and would love to get your thoughts on whether you think that's sustainable?

speaker
Ty Silberhorn

Yeah, as we look at framing, so, you know, just as I answered earlier for Chris, you know, we look at volume, so take price effect out on top line. You know, volume was still negative, but improving, you know, sequentially as we went quarter to quarter. That ties out with what we talked about at Investor Day is we do see the market as kind of bottoming at this point. We know there's still a lot of puts and takes and questions with Omicron variant now for COVID, et cetera, but we're still looking at a positive growth in the market as we step into our fiscal 23 or the bulk of calendar 22. the actions they've taken on price as well as cost. So they've been working on cost, obviously, from a restructuring side. They have started reinvigorating their lean activities. So we think both of those, even absent of meaningful volume growth, they still have the potential to continue on that margin improvement path.

speaker
Eric Stein

Got it. So maybe last one for me, obviously, the ABI, the The trend has been quite good. A few days ago, though, the AIA commentary was a bit cautious. It was, you know, talking about that potentially, you know, it was a rebound from COVID and that that rebound is coming to an end this cycle, which was kind of interesting commentary given, you know, the trends in the market. Clearly, it sounds like you think that it, you know, things have bottomed. So just curious if you could kind of you know, bridge the two, your view and that view that I just referenced.

speaker
Ty Silberhorn

Sure. And I think, you know, if we looked at those numbers, ABI and a couple others that ticked down a bit in November, they were still in the expansionary area is how we looked at those numbers. And I think we see it more indicative of that there's going to be some bumps as we go through this recovery. You know, but still we look at right now everything points to We're kind of bottoming at this stage, and when we look at activity, you know, we're pointing towards a volume growth as we go into our fiscal 23. So, you know, nothing has changed with that. We could see some lumpiness quarter to quarter across all those metrics, but that's how we're viewing the market right now.

speaker
Eric Stein

Got it. Thanks a lot.

speaker
Ty Silberhorn

All right.

speaker
Eric Stein

Thanks, Eric.

speaker
Operator

Thank you. Our next question comes from the line of Julio Romero with Sidoti and Company. Your line is open.

speaker
Julio Romero

Hey, good morning, Ty and Ashit. Thanks for taking the questions. Morning, Julio. Can you talk about the CapEx ramp you referenced that you expect in the outquarters of Fiscal 23 and beyond, and what type of high return projects, and would they be focused on the I think you talked about your investor day about allocating more resources to services that an LSO would, would those be the segments that your CapEx would be focused in?

speaker
Jeff

Yeah. So as you've seen in the last two years, Julio, we have, you know, in fiscal 21, because of COVID, we had curtailed our CapEx and there were certain investments we had to do that we had to curtail given the environment and pandemic. In fiscal 22, we limited our CapEx as we were working on a strategy to understand where exactly we should be investing. So those are two years where the business has not invested beyond the maintenance capital, so to speak. So now is the time where we now have a strategy clear, and we would like to invest and go back to that $25 to $35 million range as a normal capex of this company over the coming years. When you think about the segments, each of the segments have opportunities and strategic growth ideas that they will be investing capex on I would say services, as you asked the question, services may not have the highest of those CapEx investments, but all of other segments have good opportunities to invest in CapEx.

speaker
Ty Silberhorn

Yeah, and I would add to that, Julio, you know, kind of tying back to Investor Day, and services is generally a low capital invested business. Our LSO business continues to see strong growth. They've actually seen some positive shifts in buying behavior, as well as they talked about the need to expand and diversify that business. So those are areas we would be looking at potential capital investments for them. Within framing, our storefront and finishing business is a good performing business. There's likely some capital needs that would allow them to expand as the markets recover so that they can fuel some profitable growth for us that would be accretive to the company. And then when we look at glass and the window and wall portion of framing, our capital there is really going to still be focused on short-term quick payback, really still helping them drive margin improvement till we get comfortable that we're at a sustainable margin level that we need those businesses to perform before we would invest any meaningful capital to, uh, add capacity or, or volume and capability.

speaker
Julio Romero

Okay. That's really helpful. I appreciate the rundown by segment there. Um, and I guess on LSO, um, can you maybe talk about some of the short-term freight costs you saw in the quarter and if those are expected to kind of persist into the fourth quarter? And, and then secondly, how do you view like fourth quarter? You usually have a typically strong margin, um, in LSO, so how do you view kind of fourth quarter LSO margin to shape up?

speaker
Jeff

Yeah, I would say that the third quarter expedited freight cost in LSO segment was a one-off. There has been significant demand in the marketplace given the holiday season, and we want to make sure we seize the opportunity where we could. I would not expect that expedited shipment freight cost to continue in Q4. the second part of the question, Julio, can you repeat the second question again? Sure.

speaker
Julio Romero

Yeah, typically you have a strong fourth quarter margin in LSO and just wanted to get your view on how you view that shaping up.

speaker
Jeff

Yeah, I would say LSO's margin in fourth quarter are going to be consistent with prior year quarters. We have mid-20s is what we look at in LSO and they will be back at that level.

speaker
Julio Romero

Okay, I'll pass it on. Thanks very much. Thank you. Thanks.

speaker
Operator

Thank you. As a reminder, ladies and gentlemen, that's star one to ask the question. Our next question comes from the line of Bill DeZellum with Titan Capital. The line is open.

speaker
Bill DeZellum

Thank you. I'd like to circle back to the lean initiative. And since glass is the first segment to restart the lean initiative, are you anticipating that they will also be the first to complete their restructuring process, or do they simply have more to do and it will take longer?

speaker
Ty Silberhorn

Well, both framing and glass, you know, the bulk of the restructuring efforts really have come through at this point. There's still a little bit to do in Q4, as Nishik commented on. So getting those costs behind us as we close out the year, you know, I think both framing and glass will have that in place. Where the lean efforts have focused in on glass, we just prioritized, rather than trying to do a little bit of everything everywhere, we really wanted to focus. And we saw the margin improvement opportunity that we had in glass and the fact that we wanted to consolidate that footprint so that we could really focus on more of the mid-sized projects and kind of the premium market side of that business. That's where we wanted to focus our initial efforts there and really drive it on productivity on the production floor. So that work is flowing through. We actually, as I commented, we saw a very strong last month of the quarter from glass as some of those productivity improvements started to take hold, and we expect we'll see that build in the fourth quarter and then as we go into the first quarter of next year from a margin perspective on glass.

speaker
Bill DeZellum

Thank you.

speaker
Operator

Thank you. I'm sure no further questions in the queue. I will now turn the call back over to Ty Silberman for closing remarks.

speaker
Ty Silberhorn

All right. Well, thank you. Thanks for joining us today. And as we talked about, we remain focused on executing the new strategy to create peak value for all of our stakeholders. I'm hoping all of you will have a safe, healthy, wonderful, happy holidays and a joyful new year. Thanks and have a great rest of your week.

speaker
Operator

Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.

Disclaimer

This conference call transcript was computer generated and almost certianly contains errors. This transcript is provided for information purposes only.EarningsCall, LLC makes no representation about the accuracy of the aforementioned transcript, and you are cautioned not to place undue reliance on the information provided by the transcript.

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