Alamo Group, Inc.

Good morning and welcome to the Alamo Group's first quarter 2025 conference call. All participants will be in listen only mode. If you need assistance, please signal a conference specialist by pressing the star key followed by 0. After today's presentations, there will be an opportunity to ask questions. To ask a question, you may press star, then 1 on the touch-down phone. To withdraw your question, please press star, then 2. Please note, this event is being recorded. I would now like to turn the conference over to Edward Lujuti, Executive Vice President, Corporate Development, Investor Relations, and Secretary. Please go ahead.

Thank you. By now, you should have all received a copy of the press release. However, if anyone is missing a copy and would like to receive one, please contact us at -827-3746 and we will send you a release and make sure you are on the company's distribution list. There will be a replay of the call, which will begin one hour after the call and run for one week. The replay can be accessed by dialing -344-7529 with passcode 3570057. Additionally, the call is being webcast on the company's website at -group.com and your replay will be available for 60 days. On the line with me today are Jeff Leonard, President and Chief Executive Officer, and Agnes Camps, Executive Vice President and Chief Financial Officer. Management will make some opening remarks and then we will open up the line for your question. During the call today, management may reference certain non-GAP numbers in their remarks. Reconciliation of these non-GAP results to applicable GAP numbers are included in the attachment to our earnings release. Before turning the call over to Jeff, I would like to make a few comments about forward-looking statements. We will be making forward-looking statements today that are made pursuant to the Tate Harbor provisions of the Private Securities and Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause the company's actual results in future periods to differ materially from forecasted results. Among those factors which could cause actual results to differ materially are the following. Adverse economic conditions, which could lead to a reduction in overall market demand, supply chain disruptions, labor constraints, competition, weather, seasonality, currency related issues, fear of political events, and other risk factors listed from time to time in the company's SEC reports. The company does not undertake any obligations to update the information contained herein, which speaks only as of this date. I would now like to introduce Jeff Lennon.

Jeff, please go ahead. Thank you Ed. We want to thank everyone who's joined us on the conference call today and express our appreciation for your continued interest in our group. Our results for the first quarter were broadly aligned with our expectations. The Industrial Equipment Division, again, produced strong results as demand from governmental agencies and contractors remained quite strong. The Vegetation Management Division's results improved sequentially as cost reduction actions taken in the second half of 2024 improved profitability and as rising order bookings began to indicate a modest market recovery. I would now like to turn the call over to Agnes, who will take a look at our financial results for the first quarter. I will then provide additional comments on the results and say a few words about the outlook for the second quarter. Following our formal remarks, we look forward to taking your questions. Agnes, please go ahead.

Thank you Jeff. Good morning everyone. Amid the dynamic operating environment, we continued to execute with disciplines and delivered improved results to start 2025. This began with reviewing our financial performance for the first quarter. First quarter of 2025 revenue was $391 million compared to strong prior year first quarter revenue of $425.6 million. Growth profit for the quarter was $102.8 million with a margin of .3% of net sales. The increase of 10 basis points compared to the same period in 2024 is a result of continuous improvement initiatives in our industrial equipment division and cost reduction actions completed in our vegetation management division. ACNA expenses were $54.3 million, which is a reduction of 10% driven by savings in our vegetation management division. Operating income in the first quarter of 2025 was $44.5 million with an operating margin of .4% of net sales, reflecting an improvement of 40 basis points compared to the first quarter of 2024. Net income for the first quarter was $31.8 million or $2.64 cents per diluted year compared to net income of $32.1 million or $2.67 cents per diluted year last year at the same time. Interest expense decreased $2.9 million compared to the same period in 2024 driven by significantly lower debt levels. The provision for income tax was $10 million, resulting in effective tax rate of approximately 24%. With that overview, let's take a closer look at our performance in our division. The vegetation management division reported net sales of $163.9 million, a .8% reduction compared to the first quarter of 2024. While it is a reduction compared to the strongest quarter in 2024, it is a .6% sequential improvement as bookings and backups appear to have stabilized. Operating income for this division was $13.3 million, representing .1% of net sales. We are pleased to see that savings from our cost reduction actions taken in 2024 are evident in our results as vegetation management division's operating margin improved 410 basis points sequentially. Industry equipment division net sales were a record $227.1 million, representing .5% organic growth compared to the first quarter of 2024. Growth in the first quarter was driven by strong sales of excavator and vacuum truck as well as no removal equipment. Operating income was also a record $31.2 million, with .7% of net sales, which was a 120 basis point improvement compared to the same period last year, the result of our operational excellence in Ithaca. Moving on to the balance sheet. We had a good start to the year. Our financial position remains strong, providing us with flexibility to support ongoing initiatives and future investments. Our total assets were ,000,000 at the end of first quarter, representing a decrease of $14.7 million, or 1% compared to last year at the same time. An increase in cash and cash equivalent was offset by decrease in accounts receivable and inventory. We reduced our accounts receivable by $53.3 million to $339.6 million, also representing a reduction in base sales outstanding compared to the same period in 2024. Inventory of $366.4 million was also reduced by $28.1 million compared to last year. Reduction we achieved in the vegetation management division offset an increase in industrial equipment division. Higher inventory in the industrial equipment division supports double digit growth in that division. As a result of our discipline cash management, the operating cash flow in the first quarter of 2025 was $14.2 million. At the end of first quarter 2025, our total debt was $216.8 million and debt net of cash was $16.5 million. This is an improvement of $183.2 million, or .7% compared to the first quarter in 2024, driven by strategic debt reduction and strong cash generation. To conclude, I would like to emphasize our commitment to delivering long-term value to our shareholders. We are pleased that our board has approved a quarterly dividend of $0.3 per year. As we move forward, we will remain focused on driving growth and optimization of our operations. Thank you. I'll turn it over back to Jeff.

Thank you Agnes. I'd like to add a personal welcome to everyone who was on the call with us this morning. The company's first quarter results were broadly aligned with our expectations given the mixed conditions that continue to be evident in our markets. The governmental, industrial, contractor and vegetation markets continue to develop at different tempos during the first quarter of 2025. Lead renewal and maintenance investments by governmental and industrial contractor customers served by our industrial equipment division continue at a robust level and market activity remains strong from these key customer groups. Industrial equipment division first quarter net sales of $227 million were up .5% compared to the first quarter of 2024. Sales of the prior period first quarter driven by strong demand from rental fleet operators and municipalities. Sales of snow removal equipment were also sharply higher year over year as large contractors continued to upgrade their fleet with the latest equipment including our unique wide-wing plow system that allows a single plow truck to clear snow and ice from two traffic lanes simultaneously. Sales of street resolve to improve nicely while sales of leaf collectors and highway safety equipment were moderately lower compared to the same period in the prior year. Ordering activity was solid across all product lines in this division and bookings rose slightly compared to the prior year first quarter which was by far the strongest quarter of 2024. Orders for the division's street sweepers, leaf vacuums and highway safety equipment led the way and were up sharply compared to the first quarter of 2024. The division ended the quarter with backlog of $513 million, down .3% from prior year but up .6% sequentially. This division reported strong first quarter operating income of $31.2 million or .7% of sales versus $25.3 million and .5% of sales in the prior year. Even so, it was $37.3 million, .4% of sales versus $31 million and .3% of sales one year ago. All in all, the industrial equipment division produced excellent results and the 120-base appointed transient of its operating margin was especially noteworthy. The vegetation management division continued to face headwinds in several of its key markets during the first quarter although a modest recovery in conditions was again evident. Dealers have remained cautious as hopes for additional interest rate release dimmed in the face of current uncertainties surrounding global trade and tariffs. First quarter net sales of $163.9 million declined 27% versus the strong comparison period last year. Division operating income in the quarter was $13.3 million, .1% of net sales, marking a decline from $21.7 million and .7% of net sales in the first quarter of 2024. However, compared to the fourth quarter of 2024, operating income increased sequentially by $6.8 million or 106%, reflecting the benefits of the efficiency measures implemented in the second half of last year. More positively, vegetation management's first quarter order bookings marked a nearly 18% improvement from the first quarter of 2024 and a 3% sequential improvement from the fourth quarter of 2024. This was the fifth sequential quarter that vegetation management divisions have moved higher. Order cancellations were the lowest the division has recorded since the start of 2024 and represented less than 2% of orders received. We were pleased that orders for agricultural equipment in North America were up 26% in the first quarter versus the same period of 2024. According to the AEM's monthly tractor retail report, field inventory of tractors under 100 worth power declined 2% in the first quarter, despite retail sales for these tractors declining nearly 14% over the same period. This was partly attributable to pessimism among farmers through the ongoing concerns about the potential impact of tariffs on markets for crop exports. The increased orders we reported in our view also reflect the low level of channel inventory of our products. From the peak in early 2022, the number of our machines in the channel has declined by nearly 72%. Forestry and tree care equipment orders were also up strongly, nearly 62% this quarter compared to one year ago. This recovery was consistent across North America and Europe. Demand for tree care products is notably stronger, while demand for the larger industrial scale shipping and grinding equipment continues to improve as the market stabilized. Loaning equipment orders from governmental agencies were up 35% versus the first quarter of 2024. This reflected not only strong demand from governmental buyers, but also increasing demand for the company's unique, mantis, self-fulfilled tool carrier platform. Finally, order bookings from the division's customers in Europe declined 12%, driven lower by concerns about global trade and tariffs. The decline is also partly attributable to an unusually large order in the first quarter of 2024 in the United Kingdom that made the comparison more challenging. Vegetation management division first quarter of 2024, compared to the first quarter of 2024, was $20.0 million or .2% of net sales compared to $29.2 million or 13% of net sales in the comparison period of 2024. On a sequential basis, EBITDA improved by nearly $4.7 million, marking an improvement of 260 basis points in the fourth quarter of 2024. Positive benefits of the aggressive cost actions taken in the second half of 2024 are evident in these results. On a consolidated basis, first quarter net sales of $391 million, although down just over 8% compared to the prior year, reflected a modest sequential improvement versus the fourth quarter of 2024. Despite the lower sales, gross margin improved slightly. Operating income of $44.5 million was down .4% versus the first quarter of 2024, although operating margin improved by 40 basis points on the lower revenue. This reflected the more than 10% -over-year reduction in consolidated FDNA expenses associated with the efficiency initiatives carried out last year. Sequentially, operating income improved by more than $10 million or 29% due to improvement in gross margin of 250 basis points. First quarter net interest expense also declined in line with the lower net debt. Our tax rate in the quarter was slightly higher than the first quarter of 2024, resulting in fully diluted earnings per share of $2.64, down 3 cents in the first quarter of 2024, but up 31 cents versus the fourth quarter of last year. The combination of the sustained strength of our industrial equipment market, ongoing recovery in our vegetation management market, improving internal efficiencies, and a lower administrative cost structure, both positive for company performance over the next quarter. While tariffs and uncertainty in global markets remain adrift, we believe we are taking the right actions to prepare for their known and potential impacts. As a result, we are pleased with the company's current position, and our outlook remains optimistic regarding our prospects for the remainder of 2025. Before concluding my remarks today, I'd like to say a few words about our plans for corporate development. Agnes has provided an update on the strength of our balance fees and our very low net debt at the end of the first quarter. As we have shared in our remarks several times recently, we are enjoying an increase in the number of opportunities for acquisitions of meaningful scale. We are encouraged at the level and quality of the opportunities we are seeing. This is the most active M&A market we've experienced for several years. We continue to actively pursue several smaller tuck-in opportunities as well that align with our strategy. This concludes our preparable remarks. We're now ready to take your questions. Operator, please go ahead.

Thank you. We will now begin the question and answer session. After questions, you may press star, then 1 on your touch-tone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you'd like to withdraw your question, please press star, then 2. Our first question will come from Chris Moore with EJF Security. Please go ahead.

Hey, good morning guys. Nice quarter, thanks for taking a few questions. So maybe we could just get a little, good morning, a little more specific in terms of the pain points from tariffs. My understanding is very little from Mexico. You'll need to move some production from Canada to the U.S. and you import some drive lines from China. First of all, that's correct and is there anything that anything else we should be thinking about?

Yeah, that is probably correct, Chris. During the first quarter, about 70% of our consolidated revenue came from within the U.S. and about 10% from Canada and then the other countries around the world represented a smaller amount because of the decline in activity in Europe that I referred to. So as you think about tariffs, we're largely protected within the U.S. market from the reciprocal tariffs and as I've commented before, those will tend to flow through as cost inflation and we are starting to see some of that come from these two suppliers. On the other hand, it's been more modest than I expected in terms of percentages, so that's a positive. From Canada, we export both snow removal equipment and our largest deck type mowers. The snow removal equipment we've largely already shifted or in the process of shifting to our Worcester, Ohio facility so that we'll be able to produce the needs for the U.S. market inside the U.S. and the needs from the Canadian market inside Canada. So I'm feeling very comfortable with that one. The large deck type mowers from Schulte were in the process of assessing what we can do with those. We're protected for the moment under the current terms of the current trade agreement, so we don't have an immediate risk there, but we could, for example, shift production of those mowers down to our facility in Selma, Alabama. We take a little bit of time, probably a quarter or two, but it's a very doable thing for us. So we're mitigating it. It's really these reciprocal tariffs, but it's a little bit of an unknown because there's Chinese content, for example, in lots of things and you don't always know as you get down into industrial components how much Chinese content there is when you get down into it. But we're watching it very, very closely and we've been successful so far in pushing back on our suppliers and saw larger increases than we felt were warranted by the actual impact of the tariffs. So at the moment things are going pretty well and I'm happy with the direction of it. God, is that very helpful.

I mean, same with tariffs for a second. Is it fair to say that perhaps the biggest unknown right now would be the inflationary impact, ultimately impact on customer demand in 2H?

Yeah, that is a fair thing, Chris, that's how I'm thinking about it. I think that demand change, if it comes, would be mostly in non-governmental markets. I don't think it's going to impact governmental too much. The latest information on the governmental continues to show they're in great physical shape so there's been no change there and in fact they're increasing their spending on all things maintenance related at the moment so that's good to see. But a generalized discussion or stagnation of the things that we should be thinking about and should be worrying about because those take all of our businesses down as they do work for every industrial company. I see no evidence of that yet but it certainly remains a risk and I'm encouraged that we're starting to see some signs of peace in the indirect fights that are ongoing and obviously the market's been reacting pretty possibly to that as well. So yes, you're thinking about it correctly,

Chris. Very helpful. Maybe just the last one for me, just in terms of pricing power. You know, were there some products, markets, where it's stronger than others and just, you know, kind of how you think about that?

Yeah, we've still got reasonable pricing power in the governmental and industrial segment because our lead times are still in pretty good shape compared to some of our other competitors so that's helping us a bit. In the vegetation side, we don't have a lot of pricing power right now, the markets are just starting to crawl up off their knees but I think that'll come back relatively quickly. I commented last morning, I still feel that way, that the back half of 2025 is going to significantly better in vegetation and all the indicators continue to support that. So we may see a little bit of pricing leverage come back to that space eventually as well.

Very helpful.

Thanks, Jeff. I'll jump back

in

line.

Thanks, Chris. Our next question will come from Michael Slusky with DA Davidson. Please go ahead.

Hi, good morning. This is Linda Wiley on 4MAC. Thank you for letting us ask questions. I'm sorry for the questions in the dead quarter. So my first question is, you guys reported a 40 basis point year of the year increase in operating margin. Despite sales being down, can you help us understand what's going on? Was it makes or was it like the effects of your cost reductions? What were the main drivers?

Hi, Linda. Nice to hear you again. Let me take that first. You might remember last year in right of the downtown vegetation management division in agricultural markets, we took an initiative to cut costs. We have announced about 25 to 30 million dollars on a 12-month basis. And so those costs, cost cutting initiatives have benefited us in first quarter. So as you've seen, vegetation management margins, that is all driven from those cost reduction actions. Mainly, so you can see that in XCNA, you can see that in growth margin as well.

And Linda, keep in mind, since you know, sorry,

go ahead. Go ahead.

Go ahead, Jeff. Go ahead.

I was just going to add a little bit of color. Since we announced those thought production actions, we've really completed these two very large facility consolidations, moving our forestry business out of the Worcester facility up to the Wind Michigan facility, and transferring the rhino mower production from our Gibson City Illinois plant down to our Selma Alabama plant. So we've gained efficiencies in those facilities as a result, and then we made a fairly significant move in the SGA, as you can see in our financial statements. So those are the things that we're really working on.

Thank you, both for the clarification. I remember you announcing that in the table, so it's great to see. So my second question is, our more is nearly dead free at this point, net of cash. So now you can start putting the cash, you generally have been putting towards the bed to other use. Can you give us a little more color on the M&A market? I know you gave us a little update that more color would be helpful. And then outside of M&A, your share count is still low. But would you consider buying back shares or starting that special annual dividend maybe?

Yeah, I mean our first priority is clearly M&A at this point, Linda. There's a couple of large transactions in the works that are moving at the moment, not to stop, but actually moving, that are of interest to us and we're pursuing them vigorously. And then as I commented on the call, there's a couple of nice tuck-ins for us that are, you know, moving along at a very night pace as well. So it's clearly M&A and we just discussed that with our board at length. That remains our first priority. We have authority to buy back shares, but for some reason these M&A opportunities don't materialize. But I'll be very disappointed if that's the direction. I'm feeling pretty confident about the direction of the M&A at the

moment. Got it. And then lastly on vegetation, so vegetation orders being up, that's very promising. What's the line of sight, just seeing vegetation revenues increasing year over year in the back up of 2025 and as well as 2026?

Yeah, that's a great question. Like I said, this is the fifth quarter in a row we've seen improvement in bookings in that part of our business and it was widespread. It was across ag as well as forestry and food care, where the only part that was down over the business are European operations. So the backlog is building. It's not building dramatically yet, but it's building and it's building consistently and the quality of the backlog looks pretty good. And the mix of the orders that are coming in is actually very favorable at the moment. So we're opportunistic, we're optimistic about the back half of this year looking a lot better than the last few quarters again in that space. So I feel very good about the direction of vegetation right now and I kind of like the fact that the upward phase is modest at the moment and not another sort of ground surge as we saw during the pandemic, which obviously does not fall real demand at that point. This is real demand. This is people who are putting down their money in relatively higher-risk environments so you know they're sure it fires.

Nice, so if we can speak in one more in vegetation, and fix the noise that you've said, so is that to say that you've seen your dealers being more open to take one in the third in vegetation?

Yeah, I wish I could say that. That is true in forestry. Our dealers are getting more active in forestry and again in forestry they don't get inventory as much material as they do in ag. In the ag space the dealers are still feeling a lot of pressure, but our situation is now pretty neat in that our inventory, our own channel inventory is remarkably low. I commented on the call, it's down over 70%, seven zero percent from its peak. So at the moment we're getting these orders based off of our own inventory. We're supporting the dealers with the inventory that's in our hands and you saw our inventory came down as well during the quarter. So that goes well and our dealers have said now they will be getting restocked and I think we're going to see that start to happen in the second quarter. So the direction is clearly upward at this point, although there's still a lot of pressure on these dealers.

That makes sense. Thank you for your time this morning.

Regis, how can you live it?

Our next question will come from Greg Burns with Sivoti and Company. Please go ahead.

Morning. When we consider some of the cost initiatives, the facility consolidations that you've been engaging on the vegetation management side of the business, are those fully complete or are there other kind of projects in the pipeline here that are still finishing up and how can we think about the, what is left to gain from these projects that you have from a cost and efficiency perspective?

Hi Greg, good to hear you again. From cost reduction initiatives, those are completed. Those have been done in the second half of last year. However, with the consolidations of the factory, we still have some work to do to gain efficiencies from our processes, from our customer layouts and what not. So there's certainly more efficiencies coming in the pipeline. And as always, we are, we have quite active contingency planning, so there's always activities and planning going on. But personally, as we look into the following quarters, there will be more benefits from efficiencies in those factories.

Yeah, I mean, there's still follow-on work we're doing. There's growth beyond the initially announced cost savings. There's still another plant consolidation we're working on in Europe and another one in North America. So there's still more to come. We're not resting on our laurels. So that's kind of how we're thinking about edging the potential risks that may come here. So we're going to keep driving. We're not ready to announce the value of those yet, but we will in due course.

Okay, and then considering the leaner cost structure on the divestication management business, looking forward, you know, as markets recover, volumes are recovering. How should we think about the margin profile of that business on a go-forward basis versus maybe where it was in the prior peaks of the market?

You know, Greg, in terms of percentage margins, it's obvious at this point that we don't get back at least to where we were. We've taken so much cost, fixed costs, out of that business. So we should get quite a bit of leverage as the top line recovers in that phase. So we're still driving to a 15 percent margin target. That's where we want to go. If we don't get there, one of our divisions doesn't make need of it. So that's where we're going. So I think there's plenty of room to recover the margins and I'm hoping we can go beyond where they were during the best period of the pandemic years. We should be able to, because even in those three times we were carrying quite a bit of facility number absorption, I've commented about that a few times. So by closing facilities, we take that fixed cost out of the business permanently and therefore

we should see that better leverage as the market recovers. All right, great. Thank you. Thanks

Greg. Again, if you have a question, please press star, then one. Our next question will come from the other side. Please go ahead.

Thanks, good morning. Just clarification on the commentary on tariffs. The way I kind of heard you reference those is mostly on finished goods and kind of where you're shipping production. But I guess what I'm wondering is within your US business, how should we think about the impact on costs, on your costs, whether it's components or raw materials, things of that sort that might be subject to these tariffs?

Yeah, thanks, that's a great question. As other industrial companies were reporting, we're sort of thinking that it may flow through as a 5% increase in purchase material costs. We've seen suppliers trying to move price a little bit more than that, but it's not worn at this point. So that's the way we're modeling it out. We haven't seen too much of it yet. Only a handful of suppliers have tried to push through price increases so far, so it's early days. But it is all these reciprocal tariffs, Meg, as I've commented several times. Those are the ones that we'll have to work our way through and we're going to have to manage that by both improving our own efficiencies as we continue to do, as well as by really working our supply chain and working price. All three dimensions are going to have to be part of the process to work through to hold our margins.

So I'm sorry, that 5%, that was as a percentage of the cost of goods sold? Is that the way you got it? No,

a purchase material cost,

Meg. And in you, right, so can you size that for terms of dollars or percentage of cost of goods sold?

I can't group in terms of dollars out of my head, but in terms of actual cost of goods sold, it would be something like 1 to 2%. Between, you peel off what we manufacture ourselves, which is large because our facilities are vertically integrated, and peel labor back out and that's what you'd be left with.

Okay,

so it would

be a 5% increase on 1 to 2% of cost of goods sold, you're saying?

Yeah, no, I'm saying it would be a 1 to 2% impact on cost of goods sold, 5% of purchase materials. It gets diluted because we produce a portion of our customers that sell our shells, right, from raw materials and we have to labor. So you ask me, at cost of goods sold level, it would be 1 to 2%.

Understood. I apologize, just wanted to make sure that I understand all of that. And then I'm also wondering your thoughts on steel prices and you know maybe it is a good reminder here in terms of how important steel is for you in all of our overall cost structure because we've obviously seen higher steel costs after the tariffs were enacted back in March, so I'm curious how you think that's going to flow through.

Those we've largely already passed on in the market, we react really quick to those because we're used to these cycles of steel prices. They've been fluctuating quite a bit over the last few years, so we're pretty good at reacting to that. We track it very closely across the company and we produce reports every month of steel price we're paying in every facility we have around the world and then we send those to the metals indexes around the world to the London Exchange, the American Metals Exchange and so on to make sure we're tracking the indexes very closely and not being taken advantage of in any way. We document those and then we pass them on to our customers and our customers are very used to

that. That doesn't stop them at all.

Understood. And then my final question, I think in your prepare remarks you mentioned that you would give us some color on Q2 and perhaps I missed it, but again how do you think about Q2 relative to Q1 for each segment? Thank you.

Yeah okay, so I think let's start with the easy one. Vegetation management has just arrived slowly, both in terms of sales and margin. That's my we've got all the cost of the cost, if you want to call it that, the impact of the cost reduction programs, the cost associated with those behind us. So we just start to see that margin and vegetation expand as we did in this war. It's essentially improving and I think it will essentially improve again in Q2. In industrial, I think we'll continue to also see an expansion of both sales and margin, both Q2 and Q3 and in this firm look quite good. The backlog in that division is back above half a billion dollars again and the quality of the backlog is really good. You commented in Q4 about the stored orders at that time and I think I said here it was mostly timing and so you've seen the timing sort of catch up now in the first quarter which is very gratifying to see. So I think that we're going to see a nice improvement in Q2 and industrial and another sequential improvement in vegetation in the second quarter.

All right, thank you. With no further questions, this will conclude our question and answer session. I would like to turn the conference back over to management for any closing remarks.

Thank you for joining us today on the call. We look forward to speaking with you on our first quarter

conference call in August.

The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.