U.S. Silica Q4 2023 Earnings Call Transcript

Quartr
Provided by Quartr
February 27, 2024

Key Takeaways

  • In 2023, the company achieved 24% year-over-year adjusted EBITDA growth, a 16% rise in contribution margin, an 88% increase in net income, and generated $264 million in cash flow from operations.
  • U. S. Silica repurchased and extinguished $184 million of debt during the year, ending 2023 with a net leverage ratio of approximately 1.4x trailing-12-month EBITDA.
  • In Q4 2023, tons sold decreased 6% sequentially to 3.9 million, total revenue fell 8% to $336 million, and adjusted EBITDA declined 13% to $88.6 million.
  • The company advanced several product initiatives, including the Guardian Frac Fluid Filtration System (16 units installed), a second low-iron silica source for solar glass, expanded diatomaceous earth capacity, and the Everwhite pigment line.
  • For full-year 2024, U. S. Silica forecasts about $60 million in capital spending, SG&A up ~5%, D&A down ~5%, an effective tax rate of ~26%, net leverage below 1.5x, and continued strong free cash flow.
AI Generated. May Contain Errors.
Earnings Conference Call
U.S. Silica Q4 2023
00:00 / 00:00

There are 6 speakers on the call.

Operator

Good morning, and welcome to the U. S. Silica Fourth Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation.

Operator

As a reminder, this conference is being recorded. It is now my pleasure to introduce you to Patricia Gill, Vice President of Investor Relations and Sustainability.

Speaker 1

Thank you, and good morning, everyone. I'd like to thank you for joining us today for U. S. Silica's Q4 2023 earnings conference call. Leading the call today are Brian Shinn, our Chief Executive Officer and Kevin Howe, our Interim Executive Vice President and Chief Financial Officer.

Speaker 1

Before we begin, I would like to remind you of our standard cautionary remarks regarding the forward looking nature of some of the statements that will be made today. Such forward looking statements, which are predictions, projections or other statements about future events, are based on current expectations and assumptions, which are subject to certain risks and uncertainties. For a complete discussion of these risks and uncertainties, we encourage you to read the company's press release and our documents on file with the SEC. We do not undertake any duty to update any forward looking statements. Additionally, we have provided a supplemental 4th quarter earnings presentation on our website in the Investors section to accompany today's discussion.

Speaker 1

On today's call, we may refer to non GAAP measures such as adjusted EBITDA, segment contribution margin, net debt and net leverage ratio. Please refer to today's press release, our public filings or the accompanying earnings presentation for a full reconciliation and discussion of adjusted EBITDA, segment contribution margin, net debt and the net leverage ratio. I would now like to turn the call over to our CEO, Brian Shinn.

Speaker 2

Thanks, Patricia, and good morning, everyone. During the Q4, we continued to strengthen our financial foundation and advance our growth strategy, while closing out an exceptionally strong and historic year for the company. During 2023, we delivered on profit guidance with 24% year over year adjusted EBITDA growth, while increasing company contribution margin 16% and net income 88%. We also generated $264,000,000 of cash flow from operations. These impressive annual results were driven by a combination of strong customer demand and disciplined pricing in oil and gas and increased pricing and improved product mix in industrials, all supported by our optimized and lean cost structure.

Speaker 2

Furthermore, we repurchased and extinguished a total of $184,000,000 of debt, improving our balance sheet and delivering a low net leverage ratio of approximately 1.4x TTM EBITDA at year end. It's also worth noting that both business segments delivered record annual profitability during the year with annual sequential contribution margin dollar growth of 10% for ISP and 20% for oil and gas. During 2023, we also delivered many non financial achievements, including our 4th year in a row of record employee safety performance, selling enough bleaching clay to purify 1,700,000,000 gallons of edible oil and selling enough diatomaceous earth filter aid to filter 13,000 Olympic sized swimming pools worth of beer. While our purified product was used in blood plasma protein processing to produce roughly 9,000,000 vials of albumin medicine serving millions of patients in the year. And finally, we completed 160 community events in 2023, including education for local students, sponsoring multiple recreational sports leagues and local FFA and 4 H organizations along with participating in numerous volunteer events across the country.

Speaker 2

In all, 2023 was a fantastic year and we certainly had a lot to be proud of. In corporate news, we appointed Gene Paget as Vice President, Chief Accounting Officer and Controller of the company in late December. I'm very excited to welcome Gene to our leadership team and believe that his extensive accounting and financial expertise will be a key asset for the company as we continue to advance our growth strategy. I'd also like to provide an update on our CFO search. We've had the opportunity to meet with a number of talented high quality candidates with a broad range of backgrounds.

Speaker 2

I'm very pleased with the search process so far and expect to have our new CFO in place in the next few months. I'll now turn the call over to Kevin, who will discuss our financial results in more detail. Kevin? Thanks, Brian, and good morning, everyone.

Speaker 3

As Brian mentioned, we reported historic levels of cash flow from operations and adjusted EBITDA for the full year of 2023, driven by disciplined pricing in oil and gas and a higher value product mix in industrials. This was further supported by improved cost structures despite softer market activity for both segments. Looking at 4th quarter results when compared to the prior quarter, overall tons sold decreased 6% sequentially to $3,900,000 Total revenue decreased 8% to $336,000,000 Adjusted EBITDA decreased 13% to $88,600,000 and total company contribution margin decreased 10% to $116,900,000 Selling, general and administrative expenses for the quarter increased 8% sequentially to $31,700,000 driven primarily by the purchase of group annuity contracts covering company pension participants and beneficiaries and insurance costs in the quarter. Depreciation, depletion and amortization expense decreased 9% sequentially to $32,500,000 in the 4th quarter due to a non referring adjustment made in the prior quarter. Our effective tax rate for the quarter ended December 31, 2023 was 23.3 percent including discrete items.

Speaker 3

As Brian mentioned, in the 4th quarter we used excess cash on the balance sheet to extinguish an additional $25,000,000 of outstanding debt at par. Since the Q2 of 2022, we have extinguished a total of $334,000,000 of debt incrementally reducing our debt service cost in today's high interest rate environment and providing an estimated 33 $800,000 of the annual interest expense savings.

Speaker 2

At the

Speaker 3

end of the 4th quarter, our net debt to trailing 12 month adjusted EBITDA ratio remained at 1.4 times, below our year end target of 1.5 times. I will now walk you through our operating segment results. The oil and gas segment reported revenue of $200,600,000 for the 4th quarter, a sequential decrease of 13%. Volumes for the oil and gas segment performed below our prior guidance, decreasing by 7% to 2,900,000 tons, while SandBox delivered loads decreased 5% compared to the 3rd quarter. Segment contribution margin decreased 15% compared with the 3rd quarter to $70,100,000 which on a per fund basis was $24.13 These results were driven by sequential decline in U.

Speaker 3

S. Completions activity and lower pricing. Our Industrial and Specialty segment or ISP reported revenues of $135,500,000 which was flat compared to the prior quarter. Volumes for the ISP segment decreased 4% sequentially and totaled 958,000 tons. Segment contribution margin increased 1 percent on a sequential basis and totaled $46,800,000 which on a per ton basis was $48.85 The sequential increase in results for the ISP segment was due to improved pricing and lower costs.

Speaker 3

On a year over year basis, contribution margin dollars increased 17% and contribution margin percentage expanded 11% due to pricing increases, high grading of product mix and cost improvement initiatives. Turning to the cash flow statement. We delivered strong cash flow from operations of $54,200,000 in the 4th quarter driven by strong earnings and efficient net working capital. During Q4, we invested $17,500,000 of capital, primarily for facility maintenance, cost improvement and ISP growth projects. As of December 31, 2023, the company's cash and cash equivalents totaled $245,700,000 a sequential increase of 10%, which includes the impact of the $25,000,000 loan extinguishment.

Speaker 3

At quarter end, our $150,000,000 revolver had $0 drawn with $134,700,000 available under the credit facility after allocating for letters of credit. Turning to guidance. The high level of proppant customer contracts in our oil and gas segment coupled with our consistent and varied customer base in the ISP segment gives us reasonable confidence in our visibility for 2024. We expect strong operating cash flow generation this year and plan to direct our free cash flow to fund our growth capital needs while we continue to reduce our net debt level. Our current net leverage ratio expectation is that it will remain below 1.5 times through the year.

Speaker 3

Regarding capital spending, we will continue to be disciplined in our investment allocations and we'll focus on maintaining operating levels at our facilities while pursuing profitable growth. For full year 2024, we are forecasting our capital spending to be approximately $60,000,000 with the possibility for that to increase during the year as we opportunistically look to accelerate our high return potential capital investment projects. Finally, we are forecasting full year 2024 SG and A expense to be up approximately 5% year over year, driven primarily by investments in our workforce. The forecast for full year 2024 depreciation, depletion and amortization expense is down approximately 5%, given higher CapEx spending levels in prior years for assets that have become or are becoming fully depreciated. Our estimated effective tax rate for full year 2024 is approximately 26%.

Speaker 3

And with that, I'll turn the call back over to Brian.

Speaker 2

Thanks, Kevin. Next, let's review some of the trends that we saw during the quarter, starting with our oil and gas segment. Demand for our proppant and SandBox Logistics offerings were off mid single digits sequentially in Q4 as the U. S. Land energy complex experienced sequentially lower drilling and completions activity driven by weather and typical seasonality.

Speaker 2

Due to our disciplined pricing approach, our overall proppant price per ton was down less than $2 quarter over quarter. These efforts coupled with our quick and flexible variable cost reduction initiatives allowed us to deliver strong contribution margin of 35% for Q4. Additionally, due to our trusted market reputation, reliability and capability to deliver proppant at scale, we signed 4 customer contract amendments and extensions in the quarter. Finally, our new patent pending Guardian Frac Fluid Filtration System continues to perform well and gain momentum in the market with a total of 16 units installed to date. Customers continue to enjoy increased pump uptime and efficiency and decreased repair and maintenance costs.

Speaker 2

Given the strong customer acceptance and market adoption, we expect to double the systems in our fleet in 2024. In our ISP segment, as we guided on last quarter's call, volumes declined on a year over year basis. This was due to a combination of normal seasonal demand reduction, customer facility maintenance and customer year end inventory management, particularly for fiberglass, industrial oil and recreation products. Despite these lower activity levels, we benefited from ongoing structural cost reductions, price increases and greater sales from advanced materials, which afforded us the improved sequential and year over year profitability and a 27% increase in contribution margin on a per ton basis. I will now provide updates on key developments in our industrial portfolio and then finish with a summary of our outlook for the Q1 of 2024.

Speaker 2

During the Q4, we made significant progress on all three key strategic growth elements of our ISP business. Our first element is increasing the profitability of our base business at a GDP plus rate. With that goal in mind, we continue to capture savings from reduced logistics costs, improved plant reliability, automation, cost efficiency projects and lower natural gas prices. We're also committed to raising and maintaining product pricing to help offset increased costs. Our most recent price increase of up to 20 percent for numerous non contracted ISP products went into effect for shipments beginning January 1.

Speaker 2

The second element of our ISP strategy is to substantially grow our current high value differentiated products such as ground silica, diatomaceous earth powders and fine fillers and high purity filtration substrates. Q4 was a very productive quarter in this regard. During the quarter, we finalized and amended 9 key customer contracts with improved pricing and volume commitments. Low iron and silica demand for solar glass remains strong and is growing with the domestic industry. We estimate that U.

Speaker 2

S. Solar panel manufacturers announced an additional $1,800,000,000 of capacity expansion projects during the quarter, bringing total domestic announced solar panel investment to $11,400,000,000 since the passage of the IRA. To support industry growth, we have developed the capability to produce low iron silica from a second U. S. Silica mine and have recently signed a key customer supply contract for this product.

Speaker 2

Additionally, demand for our diatomaceous earth catalyst products continues at high levels and our natural DE powders remain sold out across facilities. Given the strength of customer demand for these products, we are pursuing capacity expansion that will come online in early to mid-twenty 25. Our 3rd strategic element is expanding our addressable markets and applications with sales of new high value advanced materials such as Crystobalite, Everwhite pigment and White Armor solar reflective roofing materials. Sales of Everwhite pigment, our TiO2 partial replacement product continue to accelerate. We have line of sight to selling out our existing production capacity for this product and our expanded capacity, which is scheduled to come online early next year.

Speaker 2

Customer feedback remains positive as we move forward with multiple qualifications and production trials for several applications that would further expand our total addressable markets. During the quarter, we also launched and qualified a new cool roof granular product with improved solar reflectance. This increase in performance ensures that customers can continue to meet even the most stringent cool roofing codes across North America. Plus, we fully commissioned our new state of the art innovation center in Rochelle, Illinois and we're receiving numerous inquiries from customers and distributors about processing new materials at this location. Turning now to our business and market outlook.

Speaker 2

As Kevin noted, we anticipate that we'll generate robust operating cash flow again this year and maintain a net leverage ratio below 1.5 times. Our Oil and Gas segment is attractively positioned to maximize through cycle earnings due to our cost reduction and variableization efforts over the past few years, which have cut our annual fixed costs substantially. These actions have had the effect of raising our annual earnings floor in a softer market by up to $70,000,000 without sacrificing upside in a peak market. Repositioned the segment and improved our contribution margin percent to the mid-30s and forecast that our contribution margin on a per ton basis will average in the low $20 per ton level for the year. For the Q1, we anticipate that volumes will be flat to slightly up sequentially with contribution margin dollars down 5% to 10% due to continued pricing pressures from a slightly oversupplied proppant market.

Speaker 2

Q1 has started off well with stronger than anticipated January sales as we just recorded our 2nd best month for West Texas sales volumes. The harsh winter weather in the Permian Basin proved beneficial for U. S. Silica as competitor mini mines were negatively impacted and customers reached out to us for additional proppant supply to maintain ongoing completions. Overall, this business segment remains well positioned to capitalize on the current multiyear energy upcycle with expectations for constructive commodity prices and healthy demand for proppant and last mile logistics.

Speaker 2

We're maintaining pricing discipline and continue to have strong contractual commitments for our sand with approximately 80% of production capacity committed for 2024. We continue to believe that the recent operator consolidation should lead to better acreage positions and increased lateral length, requiring greater service intensity and translating to more sand for well completions. To reiterate, demand for sand proppant remains healthy and strong and we plan to remain heavily contracted and disciplined on pricing while maximizing our profit margins. Moving to our Industrial and Specialty Products segment, we're well positioned to achieve another year of profitability growth in 2024 due to the strength of the numerous current and emerging end markets that we serve. Furthermore, we expect to continue expanding profit margins through structural cost reductions, price increases and investments in product development.

Speaker 2

These initiatives coupled with customer investments in domestic manufacturing should continue to offset any potential near term market weakness. For the Q1, year over year volumes are forecasted to be down low single digits due to product demand mix. However, we expect contribution margin dollars in Industrials to increase 5% to 10% on a year over year basis due to improved pricing, favorable product mix and ongoing operational and supply chain efficiency improvements. Additionally, I'd like to update you on a change to our business alignment and segment reporting going forward. After careful consideration, we are moving specialty products segment, beginning with Q1 results in 2024.

Speaker 2

Given how the oilfield Northern White sand business has evolved over the years, we believe that it's better positioned today as an offering with an ISP. This change will streamline our business operations, reduce costs and allow us to maximize value as we will now have all white sand based offerings in one business unit. We will discuss this further on our next earnings call and offer historical financial examples to bridge prior quarter results to the new reporting alignment. So to summarize, in the Q4, we continue to strengthen our balance sheet through incremental debt extinguishment and further cost reductions, while making strong progress on growing the company in several areas, including signing numerous contracts at attractive prices in both of our business segments, developing and launching a second source of low iron silicate to meet the growing needs of the domestic solar panel industry, beginning a capacity increase plan for our sold out diatomaceous earth powders line, which will be coming online in early to mid-twenty 25, continuing capacity expansion for our new Everwhite pigment product line, which will come online early next year launching a new and improved Cool Roof Granule product and finally, maximizing cost optimization and efficiency efforts across the company.

Speaker 2

We expect that the actions that we are taking to capacity, expand our contracts with blue chip customers and improve our operations and efficiency can help unlock transformational growth for the company and enhance stakeholder value. And with that, operator, will you please open the lines for questions?

Operator

Thank you. And at this time, we will be conducting a question and answer Our first question comes from the line of Stephen Gengaro with Stifel. Please proceed with your question.

Speaker 4

Thanks and good morning everybody.

Speaker 2

Good morning, Stephen. Good morning.

Speaker 4

So a couple of things jump out for me, but just to start with, you mentioned the ISP segment. I know market dynamics are evolving. You had suggested 8% to 10% contribution margin growth as a trend during the analyst event you held. Is that applicable to 24?

Speaker 2

Yes. We expect to be in that window and average that as our growth CAGR going forward, Stephen.

Speaker 4

Great. Thank you. And when we think about the reallocation of capacity, What does that mean for average contribution margin per ton in oil and gas over time? And what is the sort of current either nameplate or accessible oil and gas frac sand capacity right now?

Speaker 2

So when you talk about the reallocation, are you talking about the sort of geographic change of Northern White Sand or were you talking about something

Speaker 4

else? Yes. When you said you were reclassifying your Northern White into ISP, does that mean you're not selling it into oil and gas anymore? It will be used for industrial applications?

Speaker 2

No, no. Basically what that means is that we're going to have the industrial team manage all of the Northern White sand. So I think maybe there's a little bit of confusion around Northern White sand internally when we think about Northern White sand, we think about all of the sand that meets that sort of technical description and we sell some of that into the oilfield and some into industrial applications like glass manufacturing, foundry, etcetera. And so what we're doing is bringing all that together and having that managed by the industrial team within the company. And the reality is that's kind of in line with how we run the company in some ways anyway.

Speaker 2

And basically by doing this, it will allow one management team in the company to optimize the profitability and the sort of ongoing logistics and management efficiency of that supply chain. Today, we've got 2 management teams kind of buying for that capacity. And I think long term, we can optimize profits for the company if we have that under one team. So I still expect that we'll sell a lot of sand into the oilfield, but the management of that and the allocation of that capacity will be done by the industrial team, if that makes sense.

Speaker 4

Okay. That makes sense. I was a little I misread it. I thought you were basically exiting the Northern White Oil and Gas business, which you're not.

Speaker 5

Okay,

Speaker 4

that's helpful. No, no, we're not. And then just a final one for me and I'll get back in line. There was a big acquisition announced earlier this morning. So I think it consolidates the Permian quite a bit with, I think, the combined entity kind of probably close to 30%, maybe high 20s of industry capacity.

Speaker 4

So there was a couple of things that I that jumped out of me was the consolidation and then kind of the valuation paid for that, which seemed a little low. But can you just talk about the impact potential impact of that consolidation and how that potentially helps the supply demand and pricing dynamic in the Permian?

Speaker 2

Sure, sure. So first off, congratulations to both companies. It's tough to pull an acquisition off and hats off to them for doing it. As I step back and look at this, I think it's a real positive for our industry, Stephen. But we all know that the frac sand value chain is pretty fragmented.

Speaker 2

And when you look at it compared to a lot of the other parts of the oilfield industry, our industry is very sort of fragmented and deconsolidated. And if this can start a chain of consolidations within the industry, I think that's definitely a positive and it should bring more discipline and stability overall to the frac sand value chain, which I think will be basically accretive to valuations for the sector long term. We've all talked on our earnings calls in all kinds of meetings around the industry about needing to get some consolidation in this industry. And so it's really great to see it happening.

Speaker 4

Okay, great. Thank you.

Speaker 2

Thanks, Stephen.

Operator

Thank you. Our next question comes from the line of John Daniel with Daniel Energy. Please proceed with your question.

Speaker 5

Hey, guys. Good morning. Good morning, John.

Speaker 2

Good morning, John.

Speaker 5

So I just want to follow on to Steven's questions. In an all else being equal world, would you rather pursue consolidation in oil and gas or in the industrial?

Speaker 2

Well, I think we've talked a lot about the strategy of both parts of the company and we're fortunate enough to have the optionality to look across that. We're certainly investing our gross capital and gross energy disproportionately towards the industrial side of the company because we think we have so many really cool opportunities over there. That said, we invest a lot of kind of mental energy in managing the oil and gas part of the company and we like that part as well. It generates cash and it plays an important part in the company's overall strategy. I would say, if you look at the dynamics of the 2 businesses, certainly on the industrial side, there's more of a moat around that business, more technically specified.

Speaker 2

We rarely see new entrants into the silica and diatomaceous earth and different minerals that we have there. So it's why that part of the company certainly commands a premium valuation. And if you look at kind of how the stock is valued today, for every dollar we generate on the industrial side of EBITDA, we probably get 4 times the EV ultimately dropping through to the share price than if we generated that same dollar on the oilfield side. So I think we give the appropriate amount of effort to both of the businesses and we like the 2 industries that we're in.

Speaker 5

Okay. One more if I may. As you think about growth through acquisition, can you I'm assuming you see more opportunities within oil and gas for consolidation? Or is that I'd be incorrect with that view?

Speaker 2

Well, I think there are definitely opportunities. And as you can imagine, over the years, we've had a number of different conversations with parties on both sides of transaction. I feel like the as you know well, the issue in the oilfield is there's usually not much time where buyer and seller expectations actually overlap in terms of valuation. And depending on where the cycle is, one side or the other feels like they're not going to get a good deal. So I think that's been the biggest issue quite frankly to getting something done here.

Speaker 2

And frac sand in particular has been up and down over the years in terms of the valuation. So it makes it doubly hard to do that. Hopefully, this will show a path towards getting things done. It certainly establishes some expectations around what things might be worth. So sometimes that's what it takes to kind of light diffuse, if you will, to get more done.

Speaker 2

And I'm really hopeful that we do see more consolidation in that part of our business.

Speaker 5

Fair enough. Thank you for including me.

Speaker 2

Thank you, John.

Operator

Thank you. Our next question comes from the line of Stephen Gengaro with Stifel. Please proceed with your question.

Speaker 4

Thanks. Brian, just two quick follow ups. You mentioned, I think 80% of sand and oil and gas business contracted for 2024. Does what I assume what underlies that is supportive of the contribution margin ton that you obviously provided. But what is the pricing situation right now fairly stable,

Speaker 2

you think?

Speaker 4

I mean, you did mention slight overcapacity right now, but how do we think about the supply demand dynamics for frac sand right now?

Speaker 2

Yes, it's a great question. As I said in my prepared remarks, there's a slight oversupply right now of capacity and we'll see prices down a couple of dollars a ton versus where we exited from Q4. So if you look at 2024 to Q4 of last year, things will be down just a bit on pricing. But I do feel like things have stabilized and we see pretty consistent pricing out in the market today. As always, the spot price is a few dollars less than the contract, but I think we've stabilized in the market in a very healthy spot, particularly relative to history.

Speaker 2

And I think that's how you have to view this. 2023 was a really strong year. 2024, I think for most of us in and around anywhere in the service company chain, probably going to be a little bit off versus 2023, but again, that was kind of a historic year for many companies, I think. But I still feel really good about where we are in 2024 and like the pricing and the contracts that we've signed and continuing to be able to have, plus or minus 80% of our capacity under long term contract really gives us that visibility and that confidence that we're going to have a very good year here in 2024.

Speaker 4

Great. And then just a second quick one is when you think about capital allocation and I know John asked a little bit about M and A, etcetera. But when you think about the balance between dividends, buybacks and reducing debt, where are you sort of ultra comfortable with the debt levels where more of the cash would start to flow directly back to shareholders through buybacks and dividends?

Speaker 2

So I think just backing up and looking at capital allocations, the first thing that we want to do is make sure that our industrial growth needs are fully funded. So that's kind of priority 1 for us. And then we look at the things that you mentioned. Obviously, we've reduced a lot of debt over the last couple of years, about $334,000,000 I think since Q2 of 2022. I would say that given the still relatively high interest rates that we and others have out there, we'll always have to look hard at debt repurchases, thinking about leverage levels, kind of specifically to your question, we finished last year about 1.4 times net debt, so TTM EBITDA basis, that's a good place to start.

Speaker 2

I think we might go a little bit lower there. We're sitting about well, just under 2 times growth levered. And so I think there's room to still take that down a bit more. And I tend to think about through the cycle, where do we want to be. And so if we can stay, let's say, under 3 times net levered through a cycle, that feels like a pretty good place to be as well.

Speaker 2

So we have a lot of different metrics that we look at, Stephen, just think about where we want to go and we'll be opportunistic in making those calls. We chat with the Board every quarter and think about exactly what decisions we want to make with our cash. So we'll constantly monitor that and pick the right choices for our investors and all our stakeholders.

Speaker 4

Great. Thanks for the color.

Speaker 2

Thanks, Stephen.

Operator

Thank you. We have reached the end of the question and answer session. I'll now turn the call back over to CEO, Brian Chin for closing remarks.

Speaker 2

Thank you very much, operator. So as we begin this new year here in 2024, we are very confident in our business strategy and we believe that our industry leading current and new offerings, the free cash flow visibility and our commitment to further grow earnings will deliver substantial value for our shareholders and other stakeholders as we've talked about already on the call today. So I do want to thank you all again for joining us and we look forward to speaking with you all again next quarter. Stay safe everyone and be well.

Operator

And this concludes today's conference and you may disconnect your lines at this time. Thank you for your participation.

Powered by Quartr