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spk00: Good day, and welcome to the Ramaka Resources 2Q 2022 Results Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your telephone keypad. To withdraw your question, please press star, then two. Please note this event is being recorded. I would now like to turn the conference over to Jeremy Sussman, CFO. Please go ahead.
spk06: Thank you. On behalf of Ramico Resources, I'd like to welcome all of you to our second quarter 2022 earnings conference call. With me this morning is Randy Atkins, our Chairman and CEO, Chris Blanchard, our Chief Operating Officer, and Jason Fannin, our Chief Commercial Officer. Before we start, I'd like to share our normal cautionary statement. Certain items discussed on today's call constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent Ramico's expectations concerning future events. These statements are subject to risks, uncertainties, and other factors, many of which are outside of Ramico's control, which could cause actual results to differ materially from results discussed in the forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and except as required by law, Ramico does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. I'd also like to remind you that you can find a reconciliation of the non-GAAP financial measures that we plan to discuss today in our press release. I'd encourage everyone on this call to go onto our website, ramicoresources.com, and download today's investor presentation under the events calendar. With that said, let me introduce our Chairman and CEO, Randy Atkins.
spk05: Thanks, Jeremy, and good morning to all. When we telegraphed our first half results in May, we expected to ramp to a significantly stronger second half. That's still the case, despite our recent, and we hope temporary, closing of one of the three Berwyn mines. Based on the 121 million first half EBITDA print, 2022 safely looks to be a record year for us on about every metric by several multiples. We now only have about 200,000 tons left to sell for this year. Against sales to date, we have effectively generated earnings that currently guide to about 340 million of 2022 mine level EBITDA. As you know, The 2023 domestic sales season is already now upon us with an extra twist this year. Last year, we had met prices moving north during this period. This year, European thermal customers currently seem willing to pay more than our traditional met coal buyers here in the States. We will soon see if our domestic steel customers adjust to the higher pricing dynamic. Like most producers, we will look to place our tons for next year for the best possible net back pricing. Indeed, we placed a sale a few weeks ago to a European thermal buyer at a price well north of met. This may turn out to be a very interesting fall. And as we look at the first half, 2022 has turned out to be the sort of, quote, downer year of the rails, unquote, for almost every producer. We were dinged with about 200,000 ton first half inventory build. largely from missed or delayed rail shipments. We are currently hearing all the right notes from the rails that the second half deliveries will improve. All we can do is hope and see. As I reviewed the peer group consensus earnings before this call, I noted how many of us had diminished rail capacity and mined tons we could not move. Similarly, when coal is mined but cannot be sold because of delivery issues, the inventory bill does not improve costs. We had some costs creep this quarter, which Jeremy will detail. But again, we expect second half costs to come down meaningfully. We are already starting to see improvements in some of the inflationary direct mine costs, like diesel fuels and roof bolts. And of course, the second half will see the full reduction on royalties from our recent Ramico coal purchase. I think our main takeaway from the first half is despite some current softening in benchmark prices, we take a longer-term view of continued strength in the met coal markets. There is still a multi-year mismatch between met coal supply availability and demand, and that is both in the U.S. as well as overseas. We are witnessing current global market dislocations, which we also do not see resolving themselves in the near term. Indeed, there may be several global events ahead which could exacerbate these already stretched markets and logistical supply lines. Despite the backdrop of recessionary economic sentiments, all this could lead to the same form of price volatility that we witnessed earlier this year. From our vantage, we feel perhaps confusion breeds opportunity. We are marching ahead in full growth mode to increase our long-term guidance to at least 6.5 million tons over the next two to three years. This triples our production level from where we ended 2021. This year, on the back of the Berwyn ignition incident, we will slightly miss an earlier production forecast of roughly 3 million tons. But we are now looking to a total of roughly 4.3 million tons of production next year and over 6.5 million tons in 2025. We have taken two steps since our last call to enhance that future production. First, we have started an increase in the processing capacity at our Elk Creek Preparation Plant to now reach 3 million annualized tons by the middle of next year. We had previously announced an increase to 2.5 million tons and have now bumped that figure. Next, we have entered into an agreement, which we just announced yesterday, to acquire the 33 million ton Maben-Lovall mine reserves in West Virginia for $30 million. After closing, we will begin mining later this year and expect a 250,000 ton high wall production level by 2023. We also have the optionality in the future to build a permitted deep mine and prep plant to increase the Maven production capacity to over a million tons. The immediate spend involved in both the additional Elk Creek capacity increase and the Maven acquisition will add about 20 million in capex this year and $5 million next year. For those interested in the metrics of our overall growth projects and the spend to get us above the 6.5 million ton annual level, they are outlined in some detail in the earnings presentation. In addition to the Maven deep mine, we also have other options which might indeed take us north of the 6.5 million ton level, dependent upon future market conditions and permitting. So with that, I would now like to turn the floor over to the rest of the team to discuss more detail on finances, operations, and the market. So Jeremy, please run down our financial metrics. Thank you, Randy.
spk06: I'll start by going over our second quarter 2022 financial highlights. Adjusted EBITDA of $58 million was 220% higher than our previous second quarter record. We have now generated almost $122 million in adjusted EBITDA through the first half of 2022, which is more than 50% higher than our adjusted EBITDA for all of 2021. Unfortunately, as Randy mentioned, the rail transportation issues that we flagged on our last two earnings calls persisted throughout the second quarter. We continued to build inventory, taking our total first half of 2022 inventory build to more than 180,000 tons. As we noted in our press release, had that coal shipped, we believe earnings per share and adjusted EBITDA would have been higher by $0.65 and $40 million, respectively. The good news is that a meaningful portion of this inventory is now booked for delivery, mostly in the fourth quarter, against the API2 thermal coal index, which nets back to roughly $250 per short ton at the mine based on the curve. Turning to our full year 2022 outlook, I would like to touch on a few key areas in our guidance tables. First, on production and sales, we are lowering guidance to 2.8 to 3.1 million tons, from 3.1 to 3.4 million tons. Most of this decline, of course, comes from our Berwyn mining complex, where, for guidance purposes, we assume that the Berwyn mine will be offline through year end. I would note that we hope this turns out to be conservative and expect to know more over the coming weeks. We anticipate normal production from Laurel Fork and Triad at our Berwyn complex. Second, we are increasing our cost guidance to $89 to $97 per ton, up from $82 to $90 per ton. Looking at year-to-date costs of $104 per ton, this is up over $35 from full year 2021. Putting this into a few buckets, roughly 40% of the increase is due to inflationary pressures, such as higher raw material costs. Roughly one-third is due to higher sales-related costs, and another 25% is due to the combination of higher labor costs and lower productivity as new mines ramp up. We continue to anticipate better second-half costs on stronger production, moderating raw material prices, and the positive impacts from the Ramico coal transaction in the startup of our Berwind preparation plant. Lastly, on the 2022 guidance front, we are increasing our capital expenditure guidance to $105 to $125 million, up from $80 to $95 million. Almost 60% of this increase is due to CapEx associated with the Maven transaction, with another roughly 20% due to the increase of the Elk Creek Preparation Plant expansion to a total capacity of 3.0 million tons, up from 2.6 million tons previously. The rest of this increase is due to some incremental production at our Triple S and Big Creek Jawbone Mines. I would note that $70 million of our $115 million 2022 CapEx budget at the midpoint relates to growth. This is perhaps a good segue to our new medium-term growth target of 6.5 million tons of production, up from 5 million tons previously. I would like to point you to slides 6 and 7 in our presentation. We now show our multi-year production growth in detail. with an expectation of producing 4.3 million tons in 2023, 5.5 million tons in 2024, and 6.5 million tons in 2025. I would note that some of this growth is still subject to Board approval, which of course is dependent on market conditions. That said, as we show on slide seven, we believe we can get to 6.5 million tons of production in 2025 at a very favorable CapEx intensity. Specifically, we are increasing our 2022 growth capital by roughly $25 million, based largely on the Maven acquisition and Elks Creek Prep Plant expansion, as previously discussed. Then, for a total of $95 million in growth capital split between 2023 and 2024, we anticipate completing our full build-out of the 6.5 million tons of annual production. This, of course, is almost triple 2021 production levels of 2.2 million tons. Importantly, I would note that in addition to our improved production growth profile, we continue to anticipate returning increasing amounts of cash to our shareholders while also maintaining a very conservative balance sheet. In short, we view Ramico as both a growth story and a capital return story, which we believe positions us uniquely among our peer group. I'd now like to turn the call over to our Chief Operating Officer, Chris Blanchard.
spk02: Thank you, Jeremy, and thanks everyone for joining us this morning. We've had a busy several months as we continue to both grow and we plan to increase the pace of that growth over the next several quarters. I'd like to touch on several of the milestones from the second quarter before talking a bit more about our immediate growth plans and then about the Burwin Mine specifically. We ramped production at our new Laurel Fork mine at the Berwyn complex during the quarter. This ramp will continue through the third quarter and should reach full production during the third quarter as we expect all equipment deliveries to be made and the full super section of equipment to be in place by late August. Also in the second quarter, we started a new underground mine at our Big Creek complex in the Jawbone seam of coal, which will operate as a company mine now instead of as a contract mine. Ultimately, this approach will give us higher overall productivity as well as lower overall total costs. Our crucible mine at Elk Creek started in the second quarter and has ramped up and has largely reached its full production rate. We have also moved forward some of our capital spend and equipment purchases for the RAM number three surface mine and the RAM number three hollow miner units at Elk Creek. Finally, we have started to see the Berwyn plant upgrade and rehabilitation pick up pace, and we expect to be operational there by September, with anticipated loadings of our first trains out of the Berwyn plant in the fourth quarter. On cost, as Jeremy mentioned, we continue to see inflationary pressures throughout the organization. Raw material pricing generally continues to be elevated from historic levels, though we hope to see this moderate more in the second half. I would note steel and diesel prices are down from their recent peaks. Labor scarcity is still impacting not just the availability of coal miners, but all skilled laborers throughout the supply chain. All of these pressures are contributing to the cost creep and delays which Jeremy described. Turning to the Berlin mine, As we previously released, sometime between July 6th and July 8th, an apparent methane ignition occurred in the mine. There were no injuries. The mine was fully idle at the time for a scheduled ventilation fan upgrade with all electrical power de-energized underground and no personnel present. Since discovery of the accident, no additional personnel have been in the coal mine. We are working with all the agencies to make the mine safe for mine rescue personnel to re-enter the mine and start the re-ventilation process. Once back in the mine, we'll take steps in conjunction with the appropriate authorities to begin the investigation of the accident and the rehabilitation of the coal mine. Of course, we will continue to keep everyone informed as we learn new information. Finally, I'd just like to touch on the two major growth projects that we announced. At Elk Creek, we are increasing the annual throughput of our preparation plant from 2.1 million clean tons annually to approximately 3 million clean tons. We anticipate this work to be done while the plant is still running at full current capacity with minimal interruptions. We are also very excited about the Maven acquisition, which is almost a low volatile mirror image of our Elk Creek acquisition from years ago. We are acquiring an idle development reserve asset with surface and hollow minor permits that are immediately ready for production. We expect to bring the first tons off the property late in 2022. In addition, we are acquiring other underground mine and preparation plant permits that are in place, as well as a proposed Norfolk Southern loadout. The reserves acquired would easily support a future standalone complex capable of producing 1 to 1.5 million clean tons annually at full build-out. With that, I'd like to turn the call over to Jason Fannin, our Chief Commercial Officer, to discuss the markets and our strategy and positioning there. Jason?
spk03: Thanks, Chris, and good morning, everyone. I will share what we are seeing in the markets in our current and forward sales outlook. The coke and coal market has pulled back from its historic highs over the last several weeks. There are several reasons. Slowing economic growth, seasonal slowdowns in steel production, and steel markets, which appear to be pricing in some recessionary feel. Nonetheless, U.S. steel capacity utilization remains strong. Our steel customers are expecting strong auto demand to bolster forward production and pricing. The U.S. high-volume spot price is currently assessed at $245 per metric tonne. Although that is down from its record highs immediately following the invasion of Ukraine, it is still up 20% over year-ago levels. The forward MET curve remains in steep contango. There remains a palpable supply-demand imbalance. There are a host of reasons for this. Australian MET exports still lag 2021 levels. Shipments from Russia are both declining and will be outright banned by the EU later this week. And North American exports show little year-over-year improvement, even with record high pricing. This overall imbalance is predicated by structural underinvestment in the entirety of the coal sector. We believe this supports continued future strength in MET prices. It also plays a large part in the current forward MET pricing contango and supports stronger for longer MET coal prices. As we have recently seen, strong domestic and seaborne thermal demand continues to underpin U.S. MET prices. This is providing a price floor for U.S. highball prices, which is currently more than 20% above Australian MET prices. Like many of our peers, Aramico has explored shifting MET volumes to the thermal market. As Randy mentioned, we have already transacted for a significant volume of thermal sales into Europe for the back half of this year at prices well above current MET values. We also are continuing to explore placing significant quantities of our planned 2023 metallurgical production into Europe. We have now committed roughly 95% of our planned 2022 production. Given current market dynamics, we look to put to place our remaining time in those markets which will provide the highest margins. As we look forward to our production growth in 2023, the focus of our sales efforts will likewise center around capitalizing on those markets most profitable to the company, whether they be domestic or seaborne, metallurgical or thermal. Overall, we like the current market conditions as they apply to Ramico. We see a protracted imbalance of coking coal supply and demand, which is supportive of a protracted period of elevated coking coal pricing levels. We also see a thermal market critically starved for certainty of supply and looking to the U.S. for solutions. With that said, I would now like to return the call to the operator for the Q&A portion of the call. Operator?
spk00: Thank you. We will now begin the question and answer session. To ask a question, you may press star then one on your telephone keypad. If you're using a speaker phone, please pick up your handset before pressing the keys. To withdraw your question, please press star then two. At this time, we will pause momentarily to assemble our roster. Our first question comes from Lucas Pipes with B. Reilly Securities. Please go ahead.
spk07: Thank you very much, Operator, and good morning, everyone. I first wanted to touch on the cost side a bit, and apologies if I missed it, but is there a way to bridge the current guidance versus the prior one in terms of what the major components of the increase were between the issues of Berwind, inflationary pressures, and so on? How would you frame that up? Thank you very much.
spk06: Jeremy, you want to take that one? Sure. Thanks, Lucas. So, yeah, I mean, I think, look, a good chunk, obviously, when you lose about, call it 300,000 tons of production at the midpoint, no change to our headcount plan, a lot of that is clearly going to be related to the impacts at Berwind. So maybe let me kind of walk you through you know, where we do see things going in the second half, right? So, you know, obviously we see second half costs coming down meaningfully at the midpoint. To give you a sense of headcount, we were over 600 people on June 30th, which was up over, call it 50% year over year. So when I look to the back half of the year, even despite, you know, the, you know, the Burwind ignition event, you know, we do see production ramping certainly at a number of mines. So, about half of the costs in the back half of the year decrease is going to come from labor and productivity gains. You know, we think call it another 25% or so from kind of raw material costs and another, let's say, about 25% from the combination of, you know, sales-related costs and trucking due to the Berwyn, you know, plant start. So, you know, hopefully that gives you a little bit of comfort about where we are today and where we see the costs going in the back half of the year.
spk07: That is very helpful, and I assume in 2023 you would continue to leverage these six costs. Is that the right way to think about it?
spk06: Yes, that's correct. Obviously, we'll get more detailed with guidance as we go through the budgeting season, but that's a good way to think about it, Lucas.
spk07: Okay. That's helpful. And then switching topics on the volume side, you again built inventory in the second quarter. Confident are you about better rail performance in the second half of the year and the ability to destock some of these levels here? Thank you very much.
spk05: I think the reality on the rails, Lucas, is we know they're trying. They've had issues, I think, with manpower, filling manpower requirements, which we gather they're in the process of trying to rectify that. As I said in my remarks, we've had a tough first half. I know everybody else has as well, so I know that they have a large focus on that. Jason, would you like to comment any further on some of the more granular aspects of the delivery issues?
spk03: Sure, Randy. As Randy mentioned, Lucas, we recognize certainly they struggle with labor just as the industry has here as well. We're encouraged by the hiring numbers on both Eastern Railroads that we've seen. We saw blips of improvement throughout Q2 and those continue onwards. Like our competitors, we stay close to the railroads, advising with forward schedules. Our back half shipment plan is in place with them both. We're confident they'll continue to improve as we've started to see here lately as we finalize these back half deliveries.
spk07: I appreciate the caller. Thank you. Randy, I'll try to ask another question for you. Met coal contracting season for the North American market is upon us. Are you willing to venture any guesses as to prices for 2023? And more broadly, what's your contracting strategy, seaborne versus domestic? Thank you very much for your caller.
spk05: Well, I think, you know, in general, we see the market being a little stronger this year than we did last year. How much stronger will remain to be seen. But as I said in my remarks, the interesting kind of pressure is that last year, of course, a number of the U.S. customers came out in early August. And the settlement really didn't fully occur until sometime in mid-October because prices kept rising. This year it's a slightly different dynamic because the pressure really on pricing is coming from not only overseas but from thermal. And, you know, although we've got a little softness right now, I think, on the API2 numbers based on, you know, some issues with the water level of the Rhine River and a few things of that nature, we think sometime this fall that those pressures will be relieved and that the thermal prices in Europe will probably continue to go back up. based on both factors such as that as well as some geopolitical aspects. So I think it's going to be an interesting season. And in terms of our approach to our book, we've historically sort of tended toward being a little overweighted domestically. I think this year we were probably about 55% domestic, 45% exports. And I wouldn't be shocked if next year we kind of reverse that, that we're a little stronger on the seaborne side than we would be on the domestic. But we will see. As I said, it will probably be in a very interesting month and a half.
spk07: Thank you very much, Randy, and to you and the entire team, best of luck.
spk01: Thanks, Lucas.
spk00: Our next question comes from David Gagliano with BMO Capital Markets. Please go ahead.
spk04: All right, thanks for taking my questions. Just first of all, on the 2023 volumes of production, 4.3 million tons, and the interplay that you just flagged with regards to thermal versus MET, realistically, in your opinion, how much of that 4.3 million tons would Ramico shift into the thermal market?
spk05: Well, I would say... I've let Jeremy get into some granular details, but the interesting part is that we've got some of our mid-vol that presents itself as a very good thermal product. That's frankly what we've been moving for the second half of the year, and then some of our high vols as well.
spk06: I think that's right, Randy. We make the majority of our coal works in either market. As Randy said, David, we're going to go wherever the best net back lies.
spk02: Chris, do you have any comment you want to make on that? Perhaps maybe topside million to a million and a half tons that potentially could switch.
spk03: Yeah, this is Jason. With the reception we've seen for several of our coal qualities in the thermal market as well as the industrial market, and discussions we've got ongoing now towards 2023 shipments, certainly the ability there to move a million, million and a half is out there.
spk04: Okay, that's helpful. Thank you. And then just shifting gears to the Maven acquisition, I just want to ask about the, you know, quote, unquote, the other 31 million tons of the total 33 million tons of reserves. Press release indicated it could be developed in the near term, I think is what it said. Potential volumes of a million tons per year are up to, you know, what would that development impale? What are the capital costs associated with that development? And, you know, when should we expect a decision on developing those reserves? you know, the remaining reserves? Sure.
spk05: So, I mean, the simple answer is that the thing that we've green-lighted right now is to go ahead and start a high-wall operation for a quarter of a million tons, and that's what we'll be doing next year. We've got the permits in place to do both a mine as well as a prep plant, the metrics that you set forth. We probably won't consider that until sometime, I would say, second half of next year or maybe even in 2024. So I don't really want to get too far ahead of what the cost would be at this point, but they would be generally in line with building a plant that would be able to handle probably a 750 ton operation per day at the plant. And then the operations will be at least one or more deep mines.
spk04: Okay. So it's a full on prep plant with an underground mine. Yes, sir. Okay. Got it. Thanks. And then just the last question, if you could just give us an update on the tracking stock that was announced, I think, or the plan for the tracking stock and the status of that.
spk05: You bet. So I think on the tracking stock, you know, as you can understand, we're a little bit handcuffed because we haven't filed the registration, which we frankly will probably do within the next few weeks. As soon as the registration is filed, you know, we will We'll be able to divulge a lot more about that, but we're hopeful that that process will go reasonably smoothly. Like most registrations, you don't know until you've filed it, but we're hoping for something that would probably be in the October timeframe that we'll be able to discuss that with a lot more detail.
spk01: Okay, that's helpful. Thank you. Thank you, David.
spk00: Our next question comes from Nathan Martin with the Benchmark Company. Please go ahead.
spk01: Hey, good morning, guys. Thanks for taking my questions. I think a lot of my topics probably touched on at this point, but maybe how should we think about the cadence of shipments over the back half? When do you expect to move the 180,000 tons or so of inventory you have? I know you mentioned the chunk is scheduled to go in the fourth quarter, I believe, to the thermal customer in Europe. Do you see any of those shipments, $180,000, kind of getting delayed to Q3 at this point? Thanks.
spk06: Good question, Nate. So, look, I mean, if I think about the cadence, I mean, you know, in the third quarter, you know, I would say certainly production sales and earnings will all be up from the second quarter. But I'd say the bigger move will be from Q4 to Q3, purely based on, to your point, the unwind of the inventory build. You'll see some of that unwind in Q3, but you'll see the majority of it in Q4, and certainly the quarter-million-ton shipment that we referenced in our prepared remarks in the press release, the majority of that is Q4. So hopefully that gives you a bit of a sense of the cadence.
spk01: Yeah, that's very helpful, Jeremy. Appreciate that. And then I think I asked a similar question earlier. last quarter and this goes along with my first question give me an idea maybe the split between domestic and export sales in 3q and 4q again just trying to figure out you know how that would affect your average realized pricing yeah no no uh also a good question nate so in uh in q3 um domestic will still be a bit heavier than uh than
spk06: Then average it'll be let's call it in the 65 to 70 percent range and in q4 It should be a 50-50 split again in line with with sort of the inventory unwind a lot of which is going export Great.
spk01: Thanks Jeremy. Um Maybe a question on production, you know Could you guys maybe bridge us kind of from that three million tons of production expected this year to the new target rate of four point three million and twenty three and Again, just to kind of summarize, it sounds like maybe $250,000 from the high wall it may have been. The prep plant expansion at Elk Creek sounds like maybe middle of next year. Also, are you assuming full return of the vermin line? Any color there would be great.
spk02: Chris, you want to handle that? Yeah, I'll sort of hit the high points. Of course, there's going to be some dogs and cats in there. If you go through the presentation, you might look on slide seven. But the big chunks of that growth is about a 400,000 ton increase year over year from what we now expect out of Berwyn to what we expect in 2023 out of the Berwyn mine, assuming that we get back into production. We've got the ramp up of our RAM number three surface mine is a little less than 200,000 tons next year. We've got an additional section at our number two gas mine at Elk Creek, which is about 300,000 tons. As you mentioned, the 250,000 tons from Maven. And then we've got some of the mines that we've started up this year, Triple S, the Big Creek underground mine in the Jawbone. Those contribute another 400,000 combined. So you add up all of those pieces, and that gets you from the 3 million to 4.4. But the biggest chunk is the restart of Burwind.
spk01: Got it. Thanks, Chris. And maybe just one final one, kind of going back to the opportunity to sell MET into the thermal market. I think you guys mentioned earlier that the reception has been pretty good so far. I just wanted to kind of dig into that a little bit. I mean, from a chemical composition with vols, first flowing properties, does everything kind of look like it's been, reception's pretty good there, and then Maybe is there any opportunity to kind of increase yields if you sell your MET as thermal? Thanks.
spk03: This is Jason. On the reception and on the qualities of the MET coal, certainly there are limitations, particularly in terms of swelling and volatile content. What we found is you've got to find the right users for the right coals. Either users are able to blend the swelling properties into their mix or users that are accustomed to using those sorts of coals. Um, and we've just, uh, been able to, uh, make the right inroads with the right folks, um, on that end for our, uh, particular mid ball and high ball calls both. Um, I'll leave it to Chris on the, uh, on the efficiency gains.
spk02: Now there definitely are some, um, we haven't, uh, and we haven't budgeted those into those production numbers, but obviously we'd run our preparation plants at a little bit higher gravity, have a little bit higher recovery. Um, targeting thermal versus targeting metallurgical.
spk01: Great. Thanks for that information, guys. I think I'll leave it there. I appreciate the time, and best of luck in the second half.
spk06: Thanks, Nate. Thanks, Nate.
spk00: This concludes our question and answer session. I would like to turn the conference back over to Randall Atkins, Chairman and CEO, for any closing remarks.
spk05: Great. Well, we appreciate everybody being on the call today, and we'll look forward to communicating with you here as we move into the next quarter. Thanks very much.
spk00: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.
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