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.
spk08: of the prepared remarks from the Kimball Electronics Leadership Team, there will be a question and answer period. To ask a question, simply press star and the number one on your telephone keypad. Today's call, February 6th, 2024, is being recorded. A replay of the call will be available on the Investor Relations page of the Kimball Electronics website. At this time, I would like to turn the call over to Andy Regret, Vice President, Investor Relations. Mr. Regret, you may begin.
spk04: Thank you operator and good morning everyone welcome to our second quarter conference call with me here today is rick Phillips our chief executive officer and Jana crew chief financial officer. We issued a press release yesterday afternoon with our results for the second quarter of fiscal 2024 to accompany today's call a presentation has been posted to the investor relations page on our company websites. Before we get started, I'd like to remind you that we will be making forward-looking statements that involve risk and uncertainty and are subject to our safe harbor provisions as stated in our press release and SEC filings, and that actual results can differ materially from the forward-looking statements. Reconciliations of GAAP and non-GAAP amounts are available in our press release. One other housekeeping item to mention, starting this quarter, we have added a page of other financial metrics to the press release, which includes depreciation and amortization, stock-based compensation, cash conversion days, and open orders for the relevant periods. These additional disclosures are in line with our commitment to providing you with enhanced transparency into our business operations and key performance metrics. This morning, Rick will start the call with a few opening comments. Jana will review the financial results for the quarter and updated guidance for fiscal 2024. And Rick will complete our prepared remarks before taking your questions. I'll now turn the call over to Rick.
spk05: Thanks Andy, and good morning everyone. As we expected, the second quarter of fiscal 2024 was hard fought with our team navigating a challenging operating environment. Global macro headwinds, including pressure from elevated levels of inflation, higher interest rates, and geopolitical uncertainties have persisted and the consumer is pulling back. The markets we serve are experiencing demand softening, and our customers are changing production schedules and delivery date requirements. Sales in Q2 declined compared to the same period last year with manufacturing output in the quarter being reduced to meet the lower demand as our customers work through elevated inventory levels. Margins, on the other hand, remain stable thanks in part to proactive measures taken to align our cost structure with slowing sales. We expect industry-wide pressures for the remainder of fiscal 2024 and have updated our guidance for sales and operating income for the full year to align with these trends. Based on what we know today, it seems likely the macro environment will remain challenging for some time. Despite this near-term choppiness, we did not change our guidance for capital expenditures in fiscal 2024 as we continue to invest in long-term growth opportunities. With a strong funnel of new business supported by favorable industry megatrends, we're deploying a balanced capital allocation strategy focused on driving organic growth, global expansion, and long-lasting customer relationships. Turning back to the results for the second quarter, net sales totaled $421 million, a 4% decrease compared to the second quarter of last year. From a geographical perspective, The top line was strong in North America, up low double digits, with particularly good results in our industrial vertical market, offset by declines in Asia and Europe. The decline in Asia occurred in Thailand, which was heavily impacted by our major medical customer that is involved in an FDA recall, while Europe appears to be a region of the world where the general economic slowdown is more significant compared to other areas of the globe. One vertical market, industrial, posted year-over-year growth in the quarter, with net sales totaling $113 million, a 7% increase compared to Q2 last year, and 27% of total company sales. The strength this quarter was concentrated in charging systems, climate control, and public safety products. We frequently refer to our industrial business as green and clean And in some respects, we're our own best customer. With products that reduce environmental impacts, promote energy efficiency, safety, carbon neutrality, and the responsible use of natural resources, we specialize in heating and cooling systems, factory automation, optical inspection, electronic locking devices, and charging stations. Next is automotive, where Q2 sales totaled $200 million. a 2% decrease compared to the second quarter of fiscal 2023, and 47% of total company sales. The decline this quarter was driven by weakening demand in Europe, partially offset by incremental strength in China. Longer term, we continue to see a strong runway for growth in the automotive vertical, driven by the industry trend toward incorporating more electronic content to vehicles specifically in steering and braking systems. Our proven expertise manufacturing safety critical products that meet the stringent regulatory requirements of the industry ideally positions us to support further advancements in these systems. As a reminder, most of our automotive business is currently in steering and braking, and it doesn't matter what's under the hood, whether it be an internal combustion engine, electric motor, or a hybrid of the two. Essentially, the architectures are the same for these vehicles, which is important as consumer preferences and adoption rates evolve and the industry transitions toward EVs. Finally, medical, with net sales of $108 million, a 14% decrease compared to Q2 last year, and 26% of total company sales. This result was in line with our expectations. As I alluded to earlier, Our annual guidance reflects a $100 million reduction in sales with a major customer in this vertical, partially offset by growth in other programs. We expect these growth opportunities to continue to emerge as the population ages, access and affordability to healthcare increases, medical devices get smaller in size and require higher levels of precision and accuracy, and connected drug delivery systems become more common. Our manufacturing capabilities extend beyond electronics and printed circuit board assemblies and include, but are not limited to, operations involving precision injected molded plastics, complete device assembly for drug delivery systems, and sterilization and cold chain management. The business development team focuses on leveraging these capabilities with higher level assemblies, or HLAs, which as a category represent an opportunity for more value added content. So in summary, a solid quarter in a difficult operating environment and an updated outlook for fiscal 2024. I'll now turn the call over to Jana to provide more details on the financial results for Q2 and review our guidance for the full year. Jana?
spk00: Thank you and good morning everyone. As Rick highlighted, net sales in Q2 were $421.2 million, a 4% decrease compared to the second quarter of fiscal 2023. Foreign exchange had a 1% favorable impact on consolidated sales year over year. The gross margin rate in Q2 was 8.2%, a 40 basis point improvement compared to the same period last year. with an increase being driven by a favorable product mix and lower material costs compared to 12 months ago when we were dealing with global shortages impacting the electronics industry. We are also aligning our costs to the current macro environment. Adjusted selling and administrative expense in the second quarter were $17.3 million compared to last year's adjusted Q2 results of $16.4 million. with the increase being driven by a $2 million allowance for credit losses. Although the customer associated with this charge is not in bankruptcy, we determined it was appropriate to consider the age of the outstanding amount, the credit worthiness and payment history of the customer, and the timing of expected payments. As a percentage of sales, adjusted selling and administrative expenses were 4.1% or 40 basis points higher than the second quarter of last year. Adjusted operating income for the second quarter was $17.1 million or 4% of net sales, which compares to last year's adjusted results of $17.8 million or 4.1% of net sales. Other income and expense was expense of $5.3 million compared to expense of $3.3 million last year. The increase was a result of higher interest expense year over year, a product of our elevated debt levels and the current interest rate environment. The effective tax rate was 26.5 in the second quarter compared to 24.5% in Q2 of fiscal 2023. Adjusted net income in the second quarter of fiscal 2024 was $8.3 million, or 33 cents per diluted share, compared to adjusted net income in Q2 of last year of $11 million, or 44 cents per diluted share. Turning now to the balance sheet. Cash and cash equivalents at December 31, 2023 were $39.9 million, and cash flow used by operating activities in the quarter was $30.7 million. Cash conversion days were 117 days compared to 97 days in the second quarter of fiscal 2023 and 103 days last quarter. As a reminder, we have started including customer advances in our CCD calculations. The results from fiscal 2023 reflect this change. The increase in CCD this quarter compared with Q2 in the prior year was driven by an increase in day sales outstanding and contract asset days and a reduction in accounts payable days. In addition to a focus on inventory, we are also looking to significantly improve our cash conversion days as we more actively and aggressively manage its components. Inventory ended the quarter at $455.7 million compared to $487.5 million at the end of Q2 in fiscal 2023 and $482 million last quarter. We expect this number to continue to decline as we work with customers to right size inventory to match the current demand outlook. Capital expenditures in the second quarter were $13.2 million, supporting organic growth, maintenance requirements, and investments in automation and efficiency. Borrowings on our credit facility of December 31, 2023, were $321.8 million compared to $273.5 million a year ago and $296.7 million at the end of Q1. Our short-term liquidity available represented as cash and cash equivalents plus the unused amount of our credit facility totaled $105.7 million at the end of the second quarter. It is important to note that on January 5, 2024, we amended our short-term credit facilities to provide additional domestic liquidity for investments needed to meet working capital and other operating needs. The amendment increased the borrowing limit to $100 million from $50 million and changes the maturity date to January 3, 2025 from February 2, 2024. There were no shares repurchased in the second quarter of fiscal 2024. Since October 2015, under our board authorized share repurchase program, a total of $88.8 million has been returned to our shareholders by purchasing 5.8 million shares of our common stock. We have $11.2 million remaining on the repurchase program. As Rick highlighted, we are updating our guidance for fiscal year 2024 with net sales now expected to decline 2 to 4 percent versus fiscal 2023, which compares to our previous guidance of flat with the prior year. Operating income is estimated to be in the range of 4.2 to 4.6 percent of net sales compared to our previous estimate of flat with the prior year. The guidance for capital expenditures did not change with a range of $70 to $80 million. I'll now turn the call back over to Rick.
spk05: Thanks, Janet. Before we open the lines for questions, I'd like to recognize our team for once again being honored by Circuits Assembly Service Excellence Awards. In November, we achieved the highest overall customer ratings in the categories of dependability and timely delivery, technology, value for the price, and manufacturing quality. These awards are based solely on direct customer input. I am very proud of our team's consistent focus on building long-term relationships with our customers, regardless of whether they are new or customers we've worked with for a decade or more. They consistently recognize the Kimbell team, our culture, and a common set of priorities that have allowed us to continuously improve and keep our promises. I'd like to congratulate and thank our team worldwide for receiving this recognition. We are winning together the Kimbell way and I'm excited about what's ahead for our company.
spk08: apologies. Ladies and gentlemen, analysts may ask a question at this time by simply pressing star one on your dial pad. You may remove yourself from the queue by pressing star two on your dial pad. We ask that if you're using a speakerphone, you pick up your handset before asking your question. One moment, please, for the first question. Our first question comes from Derek Soderberg from Cancer Fitzgerald. Your line is now open. Please go ahead.
spk06: Yeah, good morning, everyone. Thanks for taking the questions. I wanted to just touch on the current environment by end market. It seems like industrial has pockets of strength, medical sort of tracking as expected. Can you talk a bit about where the incremental weakness is coming from by end market that's sort of leading to the revision and the outlook? I would imagine you're feeling some of the impact of the UAE strike. Is the incremental weakness you expect for this year largely in automotive, or really is it broad-based?
spk00: Hey, good morning, Derek, and thank you for the question. So, let's start off with medical, because that is probably the cleanest and easiest to understand. Medical is tracking exactly as we expected. which is we're going to see a $100 million decline come through related to one large customer offset by some new product launches that we have in roughly the $50 million range. And so that one is going exactly as expected. Industrial, we are seeing significant weakness in Europe, particularly related to the smart metering product line. It is being offset by growth that we're seeing in North America specifically related to charging stations and also some benefit that we're seeing come through the HVAC market. Automotive is really a mixed bag because what we're seeing is softening in the European market. I will tell you Europe across the board is just really tough right now. And if you're looking at generally speaking where the declines are coming from, It is very clear to Europe. Automotive in North America is holding in relatively flat. We saw minor disruptions as a result of the UAW strike. We don't anticipate seeing any more disruption come through for the remainder of the fiscal year. And in China, we also had some nice pockets of strength in the automotive business.
spk06: Got it. Got it. And just on – yep. Go ahead.
spk00: Go ahead. I just want... You can take it. No, you take it, Janet. In North America, but in China, those sales have been really strong.
spk06: Got it. And is any of the weakness in Europe... I know you... Obviously, I have operations in Poland you just expanded. In the prepared remarks, you mentioned some geopolitical uncertainty. You've got a conflict in the Red Sea there. Shipping rates are up. I'm wondering if that played sort of a quantifiable impact to how you're thinking about the rest of this year. And if that's not the case, I guess, Jana, what are you seeing? and the out-quarters leading to the lower operating income guidance?
spk00: So we have seen disruptions in the Red Sea. We actually ended up sending letters to all of our customers related to that impact. You know, it's incumbent upon us, the suppliers, to be able to ship and distribute products to the customers who are actively waiting on it. So we are doing our best to find alternative ways opportunity for freight. I'm not going to blame it on shipping in the Red Sea, though. What you are really seeing now is a true slowdown in Europe. A lot of it has to do with what we saw in 22 and 23. And if you'll notice, we took out the language of push-out as we had described it last year relative to customers pushing out demand. This feels more like we took on a lot of inventory. There was a shortage and scarcity of product availability. They took as much as they could from us, and now they're sitting on a lot of inventory that they've got to work through. And so we know that that will correct itself over time, but what it's causing is just some typical near-term choppiness as they've got to get that inventory pushed through to the end market, and then we resume what I would refer to as a normal steady state cadence of growth. Our CCO likens it to the toilet paper debacle of COVID 2021, where there was a scarcity of toilet paper. Everybody ran out and bought as much as they could, and then you have to work through your toilet paper supply, and then you sort of get back to a steady state growth period.
spk06: Yep. Well, I appreciate the detail. If I could just squeeze one more in. Rick, you mentioned some strengths in North America around industrial. You did mention clean and green, some HVAC charging stations. Seems like that's a growing opportunity for you guys. Is there any way for Kimball to sort of play in the manufacturing tax credits tied to the Inflation Reduction Act? Would you have to reshift manufacturing to Jasper for that? Is that a real opportunity for you guys?
spk05: It's certainly something that we talk about, yes. We see and we like the strength in North America around those areas. We're proud, as you know, of our North American manufacturing network and we have customers that want to talk to us about it all the time. that's certainly an opportunity that we're continuing to explore and could be upside.
spk02: Awesome. Really appreciate it. Thanks.
spk08: Our next question today comes from Griffin Boss from B. Riley. Your line is now open. Please go ahead.
spk01: Hi, Rick, Jenna. Thanks for taking my questions. So first on the working capital front, we saw a material step up and day sales outstanding in the quarter. Just curious what your expectations are going forward for this year and then longer term as it relates to receivables.
spk00: And so I'll take that question. Good morning, Griffin. We have a lot of work to do here, right? And it's in partnership with our customers because, as you know, we were ordering according to the demands our customer placed on us, and it was NC and Mark. So everything we ordered 52 weeks ago, 39 weeks ago, 26 weeks ago is showing up. And as the demand forecast is moving out from us, that inventory is continuing to build. We're working through it with customers in a variety of ways, right? So some of it is going to be cash deposits from customers. Some of it is going to be consignment of inventory for customers. Some of it is carrying charges on the inventory, although My preference right now is not carrying charges. It's cash, which, as you know, in this type of environment is king. I would expect that our DSO and our PDSOH need to come down. As I previously said, it's a pendulum. It swings too far. And so we've really got to work on the aging of our receivables and get that more in line with our contractual agreements with our customers. working capital is a laser focus right now, right? And so it's relieving the inventory, but seeing it all the way through to the end, which is the impact that it would have on our balance sheet in terms of debt relief.
spk01: Got it. Okay, thanks, Jenna, for the color there. And then, so just turning to medical, I understand, obviously, the fiscal year 24 guide accounts for the $100 million reduction in sales related to that FDA recall of a major medical customer. So can you just remind us, I'm not sure if you said in the past, when you expect that recall to be remediated? Does the program start to hit the top line again in, you know, 1Q25 or is it later in 2025 or is that, do you not have that visibility?
spk05: Yeah, we really don't. What we've tried to be, Griffin is really conservative about that. You know, as I think we've said before, we continue to have a great relationship with that customer. We're discussing multiple opportunities at any point in time and we stand ready to support. But we've tried to be really conservative and not build that into our expectations. One point on medical outside of that customer that you can probably do the back math on. But as Janice said, we're really on expectations overall and haven't changed those expectations for 2024. And our medical growth in Q2 would have been high single to low double digits outside of that reduction from that one customer. So we are making progress. We continue to see wins coming in, and we're really optimistic about about medical long term. But to directly answer your question, we've not built in any expectations related to that program restarting.
spk01: Okay. All right. Fair enough. Well, thanks for the call. I appreciate you guys taking my questions.
spk05: Thank you.
spk08: Our next question comes from Jason Schmidt from Lake Street. Your line is now open.
spk03: Hey guys, thanks for taking my questions. Understanding that there have been push outs here, just given the macro, but just curious if you're seeing any issues with decommits or cancellations within your backlog.
spk00: We have seen, yes, decommits and cancellations come through with our backlog, which, as you know, is not usual in this business. Normally, you've got firm orders, you've got volume, you can see it out far away. Now, they haven't been huge, and they have been geographically focused, but we've actually seen them. A good example is Europe Industrial, where we saw significant shifts that were quite honestly unexpected. And so we work with the customer on what that looks like, and we partner through it. It's really interesting because we've had a solid ramp of new program launches and NPIs where we're seeing some of the softening come through our existing programs that have been in places for years where we're seeing decommits, cancels, and some push-outs.
spk03: Okay, that's really helpful, Culler. And then just following up on that, I know you just gave the example of industrial, but are those decommits or cancellations concentrated in one of your segments or is a pretty broad base?
spk00: Medical is actually tracking really well. And so it's strange to us because, you know, one of our peers highlighted medical as a softening vertical for them. For us, that's actually going exceptionally well. Industrial is really where we're seeing more of softening and struggle. And so I think it depends on in each vertical sort of where you play and your customer mix. But that's it for us. Some softening in European automotive, again, that's really a result of just the economy and what they're experiencing there. North America is chugging along as expected.
spk03: Gotcha. And then just the last one for me, and I'll jump back into Q. With all the dynamics across your business and maybe some mix shifts here and there, at a high level, how should we think about gross margin through the remainder of calendar 24?
spk00: Yeah, that is a great question. We're working through product mix. for the remainder of the year right now. And really understanding where our materials and labor costs are going to shake out as a percentage of net sales. If you look at our guidance range for the full fiscal year, 4.2 to 4.6, what that tells you is our gross margin is going to be somewhere in the range of where you've seen it for the last two quarters. in that mid-8-ish level. We're certainly going to do everything that we can to bolster it in terms of cost containment and alignment. And then I know you didn't ask about SG&A, but laser focus there, reducing all the costs where we can and where appropriate without sacrificing long-term growth. We've just got to hunker down and get through it is the bottom line.
spk03: Okay. No, I really appreciate all that, Collier. Thanks a lot, guys.
spk00: One thing I will note that Jason didn't ask about that I would like to say on the open mic, it was a very thoughtful decision by the leadership team to align cost to the current environment. What we have told you is we're not going to talk about bifurcated or stair-stepped or we're not going to have any of those conversations anymore where we just take the absorption and don't respond. We really felt like it was incumbent upon us to make the decision to control the cost where we could and not just let the margins slide into the abyss. And so we are working significantly on that.
spk08: Our next question today comes from Anya Soderstrom from Sudoti. Your line is now open. Please go ahead.
spk09: Hi, and thank you for taking my question. So I have some follow ups on the question. So in terms of the medical customer, where they're remediating a product, are you exclusive with that customer on that product? Or could you be working if this was going to be prolonged and their competitors taking share, so you're going to be able to work with the competitors on that?
spk05: Yeah, we do have other customers in the oxygen and ventilator business who we are working with and are seeing an increase in intake. So, yes, we do work across that part of the business with multiple companies.
spk10: Okay, thank you.
spk09: And, Jana, you were talking about the weakness in Europe, and you mentioned the inventory adjustments there. Is that mainly the reason for the weakness there, or do you also see a broader economical weakness?
spk00: It's broader economical weakness. The broader economical weakness is just exasperating the inventory challenge. We are seeing some talk coming out in the near future, but we're getting data daily.
spk10: Okay, thank you.
spk09: And one last one is related to the taxes and the revenue mix. North America was doing better than the other regions. I noticed the taxes are higher. Should we expect those to continue to be higher as North America might continue to be stronger, or how should we think about the taxes going forward?
spk00: Yeah, and you nailed it. The tax rate is really a direct impact. It's just the mix of where sales are coming through geographically. We expect to control that as much as we can through tax arbitrage and opportunity. But I would say an effective tax rate in the mid-20s is what you should expect. So somewhere in that 24 to 26 range.
spk10: Okay, great. Thank you. That was all for me.
spk00: Thanks, Anya.
spk08: Just a reminder, if you would like to ask a question, please press Start followed by 1 on your telephone keypad. If you change your mind, please press Start followed by 2. Our next question comes from Tim Moore from EF Hutton. Your line is now open. Please go ahead.
spk07: Jana, thanks for adding the open orders amount to the press release going forward. So I was wondering maybe just on the backlog, open orders, you mentioned EV chargers. We've got the HVAC climate control, the public safety. But can you, Rick, maybe just highlight any other areas that are going well? I remember last time what the towing systems for EV trucks and SUVs to not drain the battery. If you could just maybe shed light on anything else that's growing pretty good or you're seeing pretty good interest in orders.
spk00: Yeah, so... You nailed a lot of it. We're seeing, in terms of charging station, new medical customers, that's going well. Automotive, North America steering and braking, going really well. Also automotive in China, going well for us. We've got some new products and program launches that we're going to see there that are encouraging and exciting. offset by just some inventory that we've got to work through and softening in Europe.
spk07: Great. That's helpful. You know, just shifting gears maybe, I'd love to hear maybe what Rick's appetite and your appetite is for M&A. Is there still, you know, willingness maybe to do medical as the priority near term? You know, I know you've got the corporate development team in place. Has anything changed around that for your kind of appetite and potential timing?
spk05: Yeah, I think, you know, our thinking probably hasn't shifted significantly of late, Tim. It's obviously something we never ignore, and we continue to monitor opportunities. You know, we do see a really healthy funnel, as Jana mentioned. And, you know, as we look forward in the out years, you know, the lead time on wins, I mean, we see some really nice wins. We like the places that we're playing. And so we think the organic growth opportunities are really robust. And as Janice said, we also are working on the balance sheet, you know, to free up and create flexibility for the future. So I wouldn't say, you know, we're ever out of the game, but we're really focused organically right now, and we think that's the right place given the balance sheet and given the opportunities that are coming our way.
spk00: Yeah, Tim, if you were to – Yeah, that's good. one of our customers deciding that they don't want to produce a particular program or focus and they want us to take on the higher level assembly and they're going to drop out that business and we're going to take it over and in some cases the current macro economic environment is interesting because it causes our customers to evaluate their own margin improvement opportunity and ways that we can partner with them to solve that so If you were to see us do something on that front, it would be in that vein.
spk07: And, Janet, you beat me to it. That was exactly going to be my next point. That's why I was asking the question because I know I've talked with you and Rick about that before. You've actually had some customers come to you. I mean, I don't know if they've been proposing it themselves, but it would seem like you have a lot of organic or hybrid opportunities on the medical front with taking some work off other people's plate where it's, you know, not a big focus for them because they might have higher margin businesses that they care about or allocating capital to in the That's good. I just got one last question. Regarding your investor day, I think you might be doing one this year. Do you still plan on maybe laying out the dollar amount range and maybe the rough timing of global capital expenditures for plant expansion, you know, cadence by year? Or is that maybe on hold a little bit due to the macro slowdown? And do you have any rough range of when maybe your investor day might be? Is it going to be this spring?
spk00: So the investor day wouldn't be this spring. If we were going to do the investor day, it would be this fall. And the only reason for that is we need more data, right? And so as we continue to look at FY25, 26, and beyond, we really need the market to settle out and to see sort of where we're shaking out in terms of growth trajectory. In terms of growth expansion, internally we certainly have um a blue plant and a strategic plan for future expansions quite honestly tim if i were to come out to you right now and tell you that i'm expanding another region of the world you would not be happy with me that's what i was asking that's why i was asking i'm glad it got moved out So, yeah, while, again, certainly we have that strategic plan and we've put a lot of effort into it, we also recognize that in this current environment, what we've got has to work harder before we add on to it in the future.
spk07: Great. That's really what I want to hear. I'm glad it's not going to be in the next month. Yeah, no, it makes sense. Just wait it out. It happens to a lot of other companies. You're not the first one in this boat, and slowdowns pretty much globally now in some pockets. So that's really great. I'm looking forward to the investor day in the fall or whenever it is, and I'm glad it's not next month. So thanks a lot, and that's it for my questions.
spk00: Thanks, Tim. Everybody good on your end, Tim?
spk07: Yes, yes. We had our first child born yesterday afternoon, a baby boy, and mom's doing well, and so is the baby. But thanks for asking.
spk04: Congratulations. It's wonderful.
spk07: Thanks, Jan and Rick and Andy. Take care. All the best.
spk08: Thank you, everyone. That concludes today's Q&A portion of the call. There will be a replay available after today's call. The details for this are as follows. Please dial plus 1-929-458-6194. The access code to this is 848149. Thank you, everyone. That concludes today's call.
Disclaimer