Good morning, ladies and gentlemen, and welcome to the FTG Q3 2023 analyst call. At this time, all lines are in a listen-only mode. Following the presentation, we will conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Thursday, October twelfth, 2023. I would now like to turn the conference over to Mr. Brad Bourne, President and Chief Executive Officer of FTG. Mr. Bourne, you may proceed.
Thank you. Good morning. I'm Brad Bourne, President and CEO of Firan Technology Group Corporation, or FTG. Also on the call today is Jamie Crichton, our Chief Financial Officer. Before we go any further, I must caution you that this call may contain forward-looking statements.
Such statements are based on the current expectations and management of the company and inherently involve numerous risks and uncertainties, known and unknown, including economic factors and the company's industry generally.
The preceding list is not exhaustive of all possible factors. Such forward-looking statements are not guarantees of future performance, and actual events and results could differ materially from those expressed or implied by forward-looking statements made by the company. The listener is cautioned to consider these and other factors carefully when making decisions with respect to the company and not place undue reliance on forward-looking statements.
The company does not undertake and has no specific intention to update any forward-looking statements, written or oral, that may be made from time to time by or on its behalf, whether as a result of new information, future events, or otherwise. The third quarter turned out well.
We certainly had some challenges in the quarter, and of course, our third quarter covers the summer months of June, July, and August, so we lose production days due to summer holidays. But the team at FTG overcame the challenges, and I am proud of the results. During the quarter, the company continued to see solid bookings and we made progress in ramping production to support the demand.
Within the third quarter of 2023, FTG accomplished many goals to continue to improve the corporation and position it for the future, including our third quarter bookings of CAD 35.7 million were up 28% over Q3 last year. Our third rev of CAD 30.6 million were up 59% for Q3 last year as FTG ramps production to meet customer demand. Revenue included CAD 9.2 million from the newly acquired sites in Minnetonka, Minnesota, and Haverhill, Massachusetts.
We achieved net earnings of, in Q3 of this year of CAD 1.3 million, 600,000 Q last year. Our net debt on the balance sheet as of the end of Q3 is CAD 5.7 million, which is down 700,000 from last quarter and is 0.36 times Adjusted EBITDA.
We made significant progress in inter-integrating our two new acquisitions and followed through on the plans to drive performance and achieve the desired operational financial results. We ended Q3 with a backlog of CAD 98 million and CAD 65.5 million at the end of 2022. Backlog as of the end of Q3 included CAD 18.2 million at the newly acquired.
FTG now employs about 700 people after adding staff through the first nine months of 2023, and including some leadership at the Minnetonka site to help increase throughput and improve operations. I'll touch more on FTG, 100,000 in CAD 4 million under the Canadian Regional, improved from the northeast over the last 12 months. During Q3, FTG bought back 6,200. Our end market demand remains strong, continues to read. Book our deep in 2023 plans for months in the future.
They would like to meet customer demand by changing, limiting, constraining their growth. Boeing plans to ramp up production from 31 aircraft per month currently to 38 in the near future and then to 50 in the next few years. In the business jet market, Bombardier provided guidance for a 15%-20% increase in 2023. Well, as we and beyond.
I've also looked at results from key defense contractors. In one example, Lockheed, the largest defense contractor, has seen sales ramp about percent so far in 2023. The defense market is government, and it appears well supported in the near term due to the increased geopolitical tensions across the globe. Of course, there is some uncertainty in the U.S. in the short term as the government there grapples with their debt ceiling.
Boeing's most recent 20-year forecast shows long-term industry growth and continues to show 40% of all new aircraft deliveries going to Asia, as has been the case in their recent forecast. The business jet market has already seen traffic recover. The business jet market for Honeywell similarly predicts. The simulator market mirrors with everyone, but this market is lumpy, so we do see large year-to-year variations.
So as we have said for many years, FTG's goal aerospace and defense markets as each moves through their independent business cycles. This continues to prove effective. Beyond all this, let me give you a quick update on some key metrics for 2020-Q3. As already noted, a leading indicator of our business is our bookings or new orders. The third quarter bookings were up 28% over Q3....
In Q3 2023, sales were CAD 36.3 million, compared to CAD 23.1 in Q3 last year. This is a 59% increase. Approximately 39% increase is due to the two acquisitions, and the growth, which is approximately 19%, was organic growth from the rest of our business. Delving into some of the segments, in our aerospace, compared to Q3 last year.
The Toronto and Tianjin were up, both up 13%, while component delays caused the Chatsworth site to be down 13% compared to Q3 last year. Q3 last year in Chatsworth was one of their best quarters, so this was also a tough comp for them to exceed. On the circuit side business, sales in Q3 were up CAD 12.7 million, or 63% of the growth came from the two acquisitions, and 24% of growth was organic.
Overall, at FTG, our top five customers accounted for 55.6% of the total revenue in the quarter, which is the same as Q3 last year. While the percentage is constant, the companies have changed. Interesting to note that the top ten customers, seven are customers between circuits and aerospace.
As we always say, we like the customer, as it means we are maximizing our penetration of these customers by selling both cockpit products and circuit boards. In Q3 2023, 26.9% of our total revenues came from our aerospace business, compared to 39.8% last year.
The aerospace business share decreased due to the impact from the acquisitions, which are both on the circuit side of the business, compared with the lower growth in the quarter. Now I'd like to turn the call over to Jamie, who will start financial results for our third quarter, and afterwards, I will talk through some key priorities we are working on. Thanks.
Thanks, Brad. I would like to provide some additional detail on our financial performance for Q3. On sales of CAD 36.6 million, FTG achieved a gross margin of CAD 8.8 million, or 24%, compared to CAD 5.7 million or 24.7% on sales of CAD 23.1 million, Q3 2022. The increase in gross margin dollars is driven by increased sales volumes.
However, the gross margin rate was weighted down somewhat by the lower gross margins at the Circuits Minnetonka site. Margins at that site are expected to increase over time as we ramp up throughput, achieve material cost savings, and adjust pricing. The average exchange rate experienced in Q3 2023 was CAD 1.33, as compared to CAD 1.29 in Q3 2022, which is a 3.3% increase. We continue our focus on operational efficiency.
One metric to measure this is revenue per employee. For Q3 2023, annualized revenue per employee is approximately 211,000, which is an increase of 3% over the comparable quarter of 2022. In light of the current pressures on both the supply and cost of labor in all of our manufacturing sites, we will continue this focus through the automation of manufacturing processes and investment in capital equipment. From a geographical standpoint, FTG experienced revenue growth in all of its regions.
In dollar terms, Q3 2023, sales to US customers grew by $11.3 million as compared to the prior quarter, primarily as a result of the two US acquisitions. However, the overall percentage of sales to US customers increased only marginally to 79% from 76%. In percentage terms, sales into Asia increased by 95% as compared to Q3 2022.
Activity in Asia is increased as the integrated supply chains for commercial aerospace continue to grow offshore. SG&A expense was CAD 4.1 million, or 11.1% of sales in Q3 2023, as compared to CAD 3.3 million, or 14.1% of sales in the prior period. The increased expense level includes CAD 635,000 of SG&A incurred at the newly acquired sites and CAD 79,000 of deal costs for the acquisitions.
R&D costs for 2023 were CAD 1.6 million, or 4.4% of sales, compared to CAD 1.4 million, or 6% of sales for Q3 2022. R&D efforts include product and process improvements at the circuit segment and efforts to develop and qualify products for future aerospace programs.
The exchange rate at Q3 2023 close was 1.36, as compared to 1.34 at Q2 2023, which is a weakening of the Canadian dollar. FTG's balance sheet includes assets and liabilities denominated in US currency, with a net asset balance of approximately $3.0 million US dollars.
The translation of our net US dollar assets and liabilities into Canadian currency at the end of Q3 2023, resulted in foreign exchange losses for the quarter of CAD 100,000, compared to foreign exchange gains of CAD 300,000 in the prior quarter. EBITDA, as described in the press release, was CAD 4.9 million for Q3 2023, as compared to CAD 2.8 million in Q3 2022. Adjusted EBITDA was CAD 5 million for Q3 2023 and CAD 2.8 million for the prior quarter, with adjustments in both periods limited to deal costs.
Adjusted EBITDA for the trailing twelve-month period ended Q3 2023, CAD 18.9 million, which equates to EBITDA margin of 13.3% on sales. For Q3 2023, FTG recorded earnings before income taxes of CAD 2.3 million, or 6.3% of the sales, as compared to EBIT for Q3 2022 of CAD 1.3 million, or 5.4% of sales.
The Q3 2023 income tax provision of CAD 0.9 million, or 40% of pre-tax earnings, reflects that the corporation's Canadian and Chinese operations were profitable and that deferred tax assets on certain foreign operating losses were not recognized in the quarter. Working capital at Q3 quarter end was CAD 35.2 million, as compared to CAD 30.5 million at the 2022 year end.
receivable days were 68 at Q3, compared to 64 in the prior year, or sorry, in the 2022 year end. Inventory turns were 3.1 at Q3 quarter and compared to 3.7 at the 2022 year end. Accounts payable days outstanding were 79, as compared to 73 at the 2022 year end. We completed Q3 2023 with a backlog of CAD 98 million.
Significant portion of this backlog is scheduled for Q4 2023, setting up the potential for a very strong quarter. Continue to focus on cash management and the balance sheet, cost control and efficiency. Our complete filings are now available on SEDAR.com. With that, I will turn things back to Brad.
Thank you, Jamie. Let me delve into some important quarter and or for the future for FTG. The first nine months of 2023 have been strong. Our sales ramped significantly. We continue to work hard to ramp further and support the demand we are seeing. This includes the need to add, the need to add staff. We are now nearing our target headcount across the company to support the current demand.
While we might headcount slightly from site to site going forward, but we don't see it as a, one of our major challenges, in the future. Looking forward, a few key items remain for us to focus, the key ones being the integration of IMI and Holaday. For IMI, we acquired them to grow our presence in the RF circuit board market for aerospace and defense applications.
While they are small, with a historic run rate of $4 million-$5 million, we like their capabilities. The integration should be relatively straightforward, as we intend to continue to operate it in its current facility with the existing staff. Our focus will be to engage our sales team with them, to find new customers and to grow the business.
This is not an overhaul, so we can generate incremental margin and profitability to the benefit of FTG. Going along with this, there will be some focused CapEx to address a few production constraints and to enable this future growth. And finally, we are converting them to our standard ERP system in the first part of next year. Holiday was a larger acquisition. Their sales were over $30 million before the pandemic. They were hurt by the pandemic, like we were.
We see the long-term positioning of Holiday as a source of high technology circuit boards, similar to what we offer from our Toronto facility, but with a U.S. footprint. This U.S. footprint is critical as we look to grow our share of the advanced circuit board market for defense applications. In the short term, we do have three priorities as we integrate Holiday into FTG.
First, we need to ramp their throughput and sales. Since February, they've added about 20 staff, growing from 50 people to about 170. We did have a bit of a setback early in Q3, as their VP of operations at the site encountered some medical issues and has now retired. We did react fast and decided to bring in some known and proven operations management skill to that site.
We hired back Paul Godbout, who had run our Fredericksburg facility until early in the pandemic. He is back on a temporary basis, but his operational skills have already been felt, and in August, his first full month on the job in Minnetonka, they shipped at a CAD 28 million-CAD 29 million annualized run rate, which was great to see.
This was their best month since before the pandemic. But as I said, Paul is back on a temporary basis. It will give us time to find the right person to run that site for the long term. In Minnetonka, our second priority is to reduce material costs. We have identified cost savings that can benefit the site, as they are now part of a larger company.
It will take some time to achieve these savings, as in some cases it will require customer approvals and it will require some internal engineering efforts as well. But when complete, we expect to achieve savings on the order of $1 million annually. We continue to make progress on this initiative. Our third priority is to improve pricing. We believe Holiday had not been sufficiently proactive in adjusting prices up as costs went up over the past few years.
We have already had some successes in adjusting prices upward, and we will continue to address this. We want to ensure any inflationary costs incurred at that site over the past few years, whether material, labor, or other, are passed through the customers and not squeeze our margins. Lastly, we had decided we're to convert them to our standard ERP system, and this initiative is already underway.
While I'm on the topic of pricing, I've been very impressed with how everyone involved in this at FTG has proactively pursued improved pricing at customers. Across FTG, we have done a good job in avoiding any margin squeeze from increased costs due to the recent period of high inflation. We did a detailed dive into some of our key contracts, and the price changes achieved, and the overall increase was on the order of 30%.
This analysis was done on approximately 20% of our total revenue. While not specifically pricing, we have received some significant expedite purchase orders from customers to meet their urgent needs for our products. We have not seen the benefit of the majority of these expedite fees in our P&L, but we do expect to see more of them being realized in Q4.
Speaking of Q4, we continue to see strong demand across most sites. Our backlog due in the quarter is over CAD 50 million, including the new sites. But while not a good metric, we entered the quarter with over CAD 18 million in past due orders. We certainly hope and expect to bring the past due orders down in Q4.
As always, there are possible downsides or headwinds that could impact our quarter. First, our backlog in Q4 of simulator products is relatively low, but given the overall backlog, this should not be too concerning. Also, the contract with our represented staff in Aerospace, Toronto, has expired. We have entered into negotiations, but the timing and outcome is always uncertain, and there is a risk of disruption in production.
Also, maybe just to ensure everyone is aware, we have now increased our financing costs and amortization of intangibles in our P&L as a result of the acquisition. The combined impact of amortization and interest costs are about CAD 350,000 in the quarter, higher than compared to what we had in Q1.
This impacts our earnings, but does not impact our EBITDA. Beyond Q3, we are obviously expecting to grow. This is resulting from our strong customer demand, progress in ramping through and all the other sites, and an improved pricing and some of the program wins across the company. A couple of examples are sales successes, including winning new cockpit panels for the Boeing 737 program and winning new cockpit assemblies for both Airbus and Boeing aircraft.
These and other wins are increasing our share, could represent 5-10 incremental sales in 2024. With the geopolitical situation in China, I'm sure there are still some concerns about our properties there. As I've mentioned previously, in 2022, both our operations in China had their best sales year ever, and both were profitable. This has continued to the first nine months of 2023.
We have repatriated cash back to Canada during last year and some more this year, and in total, we have now brought back CAD 2.2 million in cash. By doing this, we have reduced our surplus cash stranded in China, and it reduces our exposure if for any reason, things deteriorated between China and the West.
On a more positive note in China, the C919 development program achieved CAAC certification last year, and we are seeing production orders after a 10-year development program. We received our first production orders in early Q3 this year, or Q2 this year, valued at about $2.8 million, and all of this is deliverable in 2023. It is nice to see the fruits of our 10 years of development effort on this program.
This will benefit our Chinese operations going forward, and it will be less susceptible to the geopolitical uncertainties. But notwithstanding this good news, we are still being cautious about our operations in China and any further increase in tensions between China and other countries that could impact our operations there in the future.
We continue to assess possible corporate development opportunities that could fit with either of our businesses, but our near-term priority is definitely to integrate our IMI and Holiday acquisition successfully.
With a focus on operational excellence in all parts of FTG, a strong financial performance in the first nine months of this year, our recent acquisitions, and our key sales wins, we are confident we are on a strong long-term growth trajectory. This concludes our presentation. I thank you for your attention. I'd now like to open the phones for any questions. Laura?
Thank you, sir. Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press star followed by the number 1 on your touchtone phone. Again, that's star followed by the number 1 on your touchtone phone. If you would like to withdraw your request, please press star followed by the number 2. Your first question comes from the line of Nick Corcoran from Acumen Capital. Please go ahead.
Good morning. Congratulations on the solid quarter and, definitely good color in the prepared remarks.
Thank you.
Just to maybe start, the Backlog was flat sequentially, and the Book-to-Bill Ratio was hovering around 1x. Is that due to timing of orders, or is there anything else that we should maybe consider?
Yeah, I mean, that's always a little bit of lumpiness in orders. You know, the big one is simulators. When I see simulators orders come in, that can skew the book-to-bill. I guess I'm looking at this more from a positive perspective right now.
For the past number of quarters, we've always reported bookings above our sales, but we also, you know, report that we're struggling to ramp production. When I look at Q3 this year, I'm interpreting this as we have ramped our production in line with the orders we're booking, and therefore you get a book-to-bill of 1. I'm looking at it more as, you know, maybe, as I said earlier, we've got about the right headcount.
Maybe we got the right, you know, production level, and, you know, we can support our customer demand going forward.
I guess the related question is like, how much do you think we could see the backlog grow from where it is now?
I don't know. I'm less, honestly, less concerned about how much more the backlog can grow. I am more concerned about, you know, as I said, you know, for Q4, I got more than CAD 50 million in backlog, which is a lot, but I have CAD 18 million past due. My goal is to try to bring down the past due orders, and as I do that, it will actually drop my backlog, but it could also, you know, mean I have some increased sales.
That's helpful. And then in the news, there's been some commentary on Boeing delaying deliveries of aircraft. Has that impacted Firan at all?
No, not at all. And it's Boeing's general objective is to insulate their supply chain from deliveries, and so their production rate and their delivery rates are not, you know, not one-to-one exactly connected. So they try to maintain a stable production rate independent of what's happening with deliveries.
That's helpful. Any commentary on what the outlook for SIM orders is like?
You know, we are seeing some smaller orders. I'm not seeing any significantly large orders, you know, that I expect to materialize in the near term. But I am, you know, just gonna comment a little bit, you know, the SIM orders are good, obviously, and they tend to be high-value assemblies.
But what I'm starting to see, which I actually like even better, is, you know, I mentioned we won some new orders, this year that were for some cockpit assemblies for Boeing and Airbus. These are also high-value assemblies. They go into production aircraft, and it actually becomes a more stable revenue stream because, you know, I'm supporting a production line, not a simulated individual order.
So I'm seeing more aircraft, high-value assemblies as opposed to simulator high-value assemblies, and I think that's better for FTG for the long term.
That's helpful. Hey, can you give how many people you use in the quarter?
No, maybe Jamie can. We had a number. I just don't remember what it was.
Yeah, that's good. About 12, Nick. So we're, we were six, six each, and now we're just,
Okay, that's helpful. And just the last question for me, you've indicated that, CAD 50 million of backlog is due in the fourth quarter. How should we think about revenue in the fourth quarter?
Yeah, and I, you know, you always ask me this, and I always try to avoid it. Yeah, okay. I mean, here's the way I'm looking at it, and this is just math right now, right? You know, I have CAD 50 million in backlog, I have CAD 18 million past due orders. If at the end of Q4, I still have CAD 18 million in past due orders, I’ll ship CAD 32 million, which is not a great number.
You know, conversely, if magically I, I would ship CAD 50 million. I'm not gonna do either. It's not gonna be CAD 32 million, and it's not gonna be CAD 50 million. The other million-dollar question is, how much of these past due orders can I burn down in Q4? For sure, I expect to burn it down. You know, I—generally, Q4 is stronger than Q3. you know, Q3, CAD 36 and change. So what does that mean? I don't know. We're gonna be above CAD 36, below CAD 50.
Great. That's all for me. Thanks for taking my questions.
Okay. Thanks, Nick.
Ladies and gentlemen, just a reminder, should you have a question, please press star followed by the number one on your touchtone phone. Please stand by while we poll for additional questions. Your next question comes from the line of Paul Steep from Canaccord Genuity. Please go ahead.
Good morning, Brad. Just to quickly touch on Nick's last question, what's the gating factor? Because presumably there's always some level of past due orders sort of in the system. Is it related to the component issue you talked of earlier? And then I got one quick follow-up as well.
Sure. I would say there's definitely more than one gating item. There's different situations in different parts of the business, and I, you know, as I talked about for Aero Chatsworth, definitely component deliveries to us are impacting our shipments to customers, so that, that impacts them. In Aero Toronto, I have some, you know, what I just talked about, some of these new, cockpit assemblies that are going into aircraft.
I've basically done development, but I need Transport Canada TSO, TSO approval before I can ship production units. I am waiting on TSO approval. You know, I'm hoping I get that in Q4, but I don't control the, I don't control Transport Canada, so that could be a gating item, and it's definitely, you know, held up some revenue at this moment in time. It's just those sorts of things.
The one thing I'd say it's less of now is due to staffing. As I said, you know, I think we're at a reasonable staffing level, so that is not impacting or not a gating item for what we get out the door, in the near future.
Great. And then maybe the follow-up to that, I guess either of you, maybe more Jamie, how should we think about the working capital unwind? Obviously, you added the acquisitions that, you know, Brad just briefly touched on how, you know, we're gonna see shipments and that presumably unwind some of the working cap. If you could talk through that and then maybe CapEx as well. I know Brad called out earlier some investments, as well on that front, if there's anything unusual or noteworthy there. Thanks.
Great. Maybe I'll talk to the CapEx, maybe Jamie can talk to the working capital. But just starting on the CapEx side. So, you know, this year our CapEx has been increased really, as a result of our funding we received from the Canadian federal government and from the Ontario provincial government, that you know, they've supported us with some interest-free financing, but we have to spend the money.
These programs wind up next year. So as a result of that, you know, we are accelerating some CapEx, particularly in Canada. So it's higher this year. After this year, I'm anticipating, and, you know, for sure we've started planning for next year already, trying to go back to our more long-term target of 3% of sales, as our CapEx number.
Now, that's not a precise number, but it's a target that we use for planning CapEx. I guess over to you, Jamie, in terms of working capital.
Sure. Thanks, Paul, for your question. So I guess I would look at it that I think working capital in Q4 will come down. I think it'll come down because, you know, strong revenues in Q3 are gonna drive good collections in Q4. I think in Q4, inventory will come down because, you know, as Brad described, we're going to have a pretty good quarter from a shipment standpoint. That's gonna drive inventory down, but it's probably gonna get mostly hung up in higher accounts receivable at year-end. So I think it'll work itself down a little in Q4, I think more so in the first of 2024.
Perfect. Good quarter, guys. Thanks.
Thanks, Paul.
Your next question comes from the line of Peter Emhoff, one of your private investors. Please go ahead.
Oh, hi, Brad. It's Peter Emhoff here. I used to own your stock in the funds that I ran at Sentry. Still own it, so yeah, good quarter for you guys. Just most of my questions have been answered, but just on Minnetonka, what do you think the capacity utilization is there in terms of, like, the ramp-up? I think you said, what month was it that was a record for you guys in terms of throughput? Was that September, or was that-
That was August. It was August.
August, okay.
It's a good question, and, you know, I'll just go back on a little bit of historic data for a second. And by the way, it's good to hear from you, Peter. So, their revenue year was 2019, before the pandemic. I know it was in sales. I don't think they were at capacity, but for sure, they definitely.
You know, so then, you know, as I pull my other metric, and I think in terms of the utilization, the last couple of years was $20 million-$23 million. So similar to what happened to us, they, they dropped to those 30%. So, you know, it drops their utilization, you know, pretty significantly. So a run rate of $20 million-$22 million is a good run rate for them.
It's not a winning business at that sort of run rate. So we got to get them back into the $30s. And then I just compare Minnetonka to Toronto. Very similar plant sizes, very similar headcount, similar equipment set. And, you know, Toronto, now I'm gonna switch currencies. I need this to complicate it.
But, you know, Toronto can ship CAD 1 million a week, and they've shipped, you know, in the low 50s. Again, in 2019, they shipped, I think, CAD 52-53 million in sales. I believe, you know, with a little bit of work, and a little bit of improved operations and management, I think they could produce what Toronto has produced.
Okay. And then just in terms of Toronto, in terms of the aerospace, you said you guys were negotiating. So I'm not sure if it's unionized, like, or how long have you guys been negotiating and how close are you guys in terms of maybe getting something done there?
Yeah, the surprising process, our contract expired in August, and it is unionized, it's Unifor. We did no negotiation, and this was actually more driven by Unifor than us, because they requested meeting dates, but we did no negotiation before the contract expired. We've now initiated negotiations. We had a couple of meetings in September, but we are still early on in the process.
Okay. Okay, and then just in terms of you guys have made a bunch of acquisitions over the last couple of years and stuff. So, are you guys still seeing other opportunities there, or are you just trying to consolidate what you've already done or, what the landscape is and what kind of multiples you'd have to pay?
Right. And, you know, yeah, there are opportunities out there, these days, but for sure, you know, to the extent I can control things, I am not looking to close any more deals until I get comfortable, particularly with Minnetonka, that we have that one under control. That, you know, we've got the right management team in place there.
That we've moved forward on our key initiatives of, you know, driving up the operation, getting material savings, getting price increases. After I'm comfortable that that's happening and, and well underway, then I'd be more interested in, in looking at the next deals. So there are some out there, but if I can slow play them or get people to delay, that's my first choice for sure.
Okay. Okay, great. Okay, thanks.
All right. Thanks. Thanks, Peter.
Ladies and gentlemen, just a reminder, should you have a question, please press star followed by the number one on your touchtone phone. There are no further questions at this time. I'd now like to turn the call back over to Mr. Bourne for any closing remarks.
Okay. Thank you. A replay of the call will be available until November twelfth, at the numbers listed on our press release. The replay will also be available on our website in a few days. I thank you all for your interest and for your participation. Thank you.
Thank you, sir. Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your lines. Have a lovely day.