Greetings, and welcome to Balchem Corporation's First Quarter 2018 Earnings Conference Call. At this time, all participants are in a listen only As a reminder, this conference is being recorded. It is now my pleasure to turn the conference over to your host, Terry Quellio, Chief Financial Officer for Balchem. Please go ahead.
Ladies and gentlemen, thank you for joining our conference call this morning to discuss the results of Balchem Corporation for the quarter ending March 31, 2018. My name is Terry Coelho, Financial Officer, and hosting this call with me is Ted Harris, our Chairman, CEO and President. Following the advice of our counsel, auditors and the SEC, at this time, I would like to read our forward looking statements. This release does contain or likely will contain forward looking statements, which reflect Falchem's expectation or belief concerning future events that involve risks and uncertainties. We can give no assurance that the expectations reflected in forward looking statements will prove correct, and various factors could cause results to differ materially from our expectations, including risks and factors identified in Balchem's Form 10 ks.
Forward looking statements are qualified in their entirety by this cautionary statement. I will now turn the call over to Ted Harris, our Chairman, CEO and President. Thanks, Terry.
Good morning, ladies and gentlemen, and welcome to our conference call. This morning, we reported 1st quarter consolidated net sales of $161,400,000 which resulted in record 1st quarter net income of $19,300,000 or $0.60 per share on a GAAP basis. This result includes non cash amortization expenses of $6,400,000 for acquisition related intangible assets, which were recorded in the Q1 GAAP financial statements. The amortization expense is a direct result of acquisition, valuation and business combination accounting rules. This quarter also includes $689,000 of transaction and integration costs.
Consequently, our first quarter non GAAP net earnings of $24,400,000 or $0.76 per share reported in our press release earlier this morning exclude these items to facilitate comparative evaluation of this current period operating performance versus the prior year period. These non GAAP net earnings of $24,400,000 or 0.76 dollars per share were an all time record and were 29.1 percent or $5,500,000 above the comparable prior year quarter of $18,900,000 or $0.59 per share. Adjusted EBITDA of $40,900,000 also an all time record was 25.3 percent of net sales and was $5,100,000 or 14.3 percent above the $35,800,000 posted in the Q1 of 2017 and 2.3% above quarter 4 of 2017. We delivered 1st quarter cash from operations of $25,500,000 while making dividend payments of $13,400,000 and scheduled principal payments of $8,800,000 the latter resulting in our long term debt balance being reduced to $210,800,000 Our first quarter sales of $161,400,000 were 17.2% higher than the $137,700,000 result of the prior year comparable quarter. Sales growth in 3 of our 4 reporting segments, Human Nutrition and Health, Animal Nutrition and Health and Industrial Products contributed to the increase with Human Nutrition and Health and Animal Nutrition and Health both achieving record 1st quarter sales.
The primary sales drivers were the increased sales from the IFP acquisition, strong human chelated mineral volumes, good growth in choline nutrients and higher powder system sales within human nutrition and health. Increased monogastric species sales within Animal Nutrition and Health, continued strong sales into the shale fracking market within industrial products and slightly higher repackaged gas sales within specialty products. These increases were partially offset by a decline in flavor system sales within human nutrition and health, lower ruminant species sales resulting from continued unfavorable dairy economics within animal nutrition and health and lower plant nutrition sales within Specialty Products. Our Q1 consolidated gross margin dollars of $51,500,000 were up $7,000,000 or 15.8% compared with the same period in the prior year. The increase was primarily driven by the higher sales, partially offset by unfavorable segment, product and customer mix and higher raw material costs within the current quarter across all of our segments.
Our consolidated gross margin percent was 31.9% of sales in the quarter, down 40 basis points from 32.3% in Q1 of 2017, primarily due to the previously mentioned mix and higher raw material costs. Gross margin percentage for the Human Nutrition and Health segment increased by 20 basis points to 32%, primarily due to mix. Gross margin percentage increased for the Animal Nutrition and Health segment by 90 basis points to 26.2%, primarily due to improved monogastric gross margins as a result of higher volumes driving improved throughput, combined with increased average selling prices. Gross margin percentage for the Specialty Products segment decreased by 100 basis points as compared to the prior year comparable quarter, primarily due to lower plant nutrition volumes, mix and certain higher raw material costs. Industrial Products gross margin increased by 700 basis points, primarily due to the higher sales volumes, partially offset by certain higher raw material costs.
Consolidated operating expenses for the 3 months ended March 31, 2018 were $24,000,000 as compared to $21,700,000 for the 3 months ended March 31, 2017. The increase was principally due to the inclusion of ISP operating expenses, additional R and D spend, certain compensation related expenses and increased transaction and integration costs, offset partially by insurance proceeds associated with the Clearfield fire and lower amortization. Excluding transaction and integration costs of $689,000 and non cash operating expense associated with amortization of intangible assets of $5,400,000 operating expenses were $17,900,000 or 11.1 percent of sales. Looking forward, we will continue to focus on tightly controlling our operating expenses and leveraging our existing SG and A infrastructure. U.
S. GAAP earnings from operations were $27,400,000 which increased $4,700,000 or 20.7 percent compared with the prior year comparable quarter. This increase was primarily due to earnings growth in our Human Nutrition and Health, Animal Nutrition and Health and Industrial Products segments. On an adjusted basis, as detailed in our earnings release this morning, earnings from operations of $34,400,000 increased 4 point $5,000,000 or 15.2 percent from the prior year comparable quarter, again due to higher earnings in our Human Nutrition and Health, Animal Nutrition and Health and Industrial Products segments. Interest expense for the 3 months ended March 31, 2018 was $1,900,000 and our net debt on March 31 was $168,100,000 The company's effective tax rates for the 3 months ended March 31, 2018 2017 were 23.2% and 25.1%, respectively.
The decrease in the effective tax rate is primarily attributable to the recently passed tax reform, partially offset by lower excess tax benefits from stock based compensation related to the adoption of ASU 20 sixteen-nine in the Q1 of 2017. The tax benefits associated with the adoption of ASU 20 sixteen-nine have been adjusted out of adjusted net earnings to aid in comparability of results to prior periods. As previously noted, consolidated net income closed the quarter at $19,300,000 up $3,800,000 from the prior year quarter. This quarterly net income translated into diluted net earnings per share of $0.60 for the current year, an increase of $0.12 per share over last year's comparable quarter result of $0.48 On an adjusted basis and as detailed in our earnings release, our adjusted net earnings were $24,400,000 or $0.76 per diluted share, up $5,500,000 or 29.1 percent compared with $18,900,000 or $0.59 per diluted share in the prior year quarter. Our first quarter results generated $40,900,000 of adjusted EBITDA or 25.3 percent of sales in the quarter, compared with $35,800,000 or 26 percent of sales in the prior year, an increase of $5,100,000 or 14.3%.
As previously noted, our cash flow remains strong as we generated 1st quarter cash flows from operations of $25,500,000 and closed out the quarter with $42,700,000 of cash on the balance sheet. This reflects dividend payments of $13,400,000 scheduled principal payments on long term debt of $8,800,000 along with $3,700,000 of capital expenditure funding in the quarter. Free cash flow for the Q1 was $21,700,000 an increase of $1,900,000 compared to the same quarter in the prior year. Before passing the call back to Terry to cover the detailed results by segment, I would like to update you on a few of our key growth initiatives. We continue to work hard to progress awareness around choline after the issuance of the reference dietary intake by the Food and Drug Administration and the European Food Safety Authority's first ever intake recommendations for this essential nutrient.
As we continue our vita choline market development activities through both consumer awareness initiatives and the strategic expansion of our sales channels, we are extremely pleased to share that choline signals singles using Balchem's Vitacholine branded product are now available for sale across 4,000 Walmart stores in the United States effective last month. Choline is now also available across many Target stores across the United States. Increased availability of choline in large retail outlets is a key development to accompany the increase in consumer awareness. Within our Animal Nutrition and Health segment, we are very encouraged to see the published results of a new research trial using ReAssure. The trial was documented in the prestigious Journal of Dairy Science, the leading scientific journal for the industry.
It was the first research ever to clearly demonstrate the full lactation benefits of feeding ReAssure, Balchem's rumen protected choline during the transition period. In addition, we've also seen exciting new research results supporting the efficacy of choline in transition cows at higher feeding rates, as well as potential benefits for the health of the newborn baby calf. This new research will certainly help in our efforts to expand the penetration of ReAssure into dairy herds across the globe and also helps to direct our future efforts toward exploring the expansion of ReAssure feeding and the value proposition across the full dairy animal lifecycle. The 3rd Phase 3 clinical trial for the Curemark drug to be utilized in the treatment of autism continues to progress. We informed you last quarter that the last patient last visit occurred within the month of December, effectively completing the trial and starting a results analysis phase of the project.
While the Curemark team analyzes the data in preparation for a possible NDA submission, Balchem remains focused on our manufacturing and supply chain preparedness for the launch of the product while continuing to manufacture additional trial quantities of the encapsulated enzyme for rollover participants from previous trials. We look forward to communicating more on this important initiative as the project progresses further. We continue to make very good progress on the integration of the Innovative Food Processes or IFP acquisition and we are already beginning to realize the planned synergies. The IFP acquisition has been a good addition to Balchem, bringing capabilities and assets that are helping to better service our powders and encapsulated ingredients customers. As part of the integration process and after close examination, we recently announced decision to close one of the acquired manufacturing sites and transfer the production capabilities to our Faribault, Minnesota and Slate Hill, New York manufacturing locations.
This transaction will improve the efficiency of our network, lower overall costs and further improve the profitability of the IFP business. And once finalized, we believe the integration activities associated with the IFP acquisition will largely be complete. I'm now going to turn the call back over to Terri to go through the detailed results for each of the segments. Thanks, Ted.
For the quarter, sales of our consolidated Human Nutrition and Health segment were $83,100,000 a record first quarter and an increase of $9,900,000 or 13.6 percent from the comparable prior year quarter. The sales increase was primarily driven by added sales from the IFP acquisition, strong chelated mineral volumes, good sales growth in choline nutrients and higher powder systems product sales, partially offset by lower flavor systems sales. 1st quarter earnings from operations for this segment were an all time record of $13,000,000 an increase of $2,800,000 or 27.5 percent compared with the $10,200,000 in the prior year comparable quarter. Excluding the effect of non cash expense associated with amortization of acquired intangible assets of $5,500,000 1st quarter adjusted earnings from operations for this segment were $18,500,000 compared to $15,800,000 in the prior year quarter. Earnings from operations for the quarter were driven by the strong sales growth, partially offset by the impact of product mix, certain higher raw material costs and increased research and development spending.
Supply chain optimization and recovery of higher raw material costs through pricing actions continue to be important focus areas of this business. The Animal Nutrition and Health segment sales of $46,100,000 a record first quarter, increased 21.2 percent or $8,100,000 compared to the prior year comparable quarter and continued the sequential quarterly improvement we have been delivering since mid 2017. Sales of product lines targeted for ruminant animal feed markets decreased by $600,000 or 5.1 percent compared to the prior year, primarily due to lower ruminant product volumes resulting from challenging dairy economics, particularly in North America where milk and milk protein prices remained low in the Q1. Sales into the global monogastric species market increased $8,700,000 or 33.1 percent from the prior year comparable quarter, driven by healthy demand in North America and Europe, higher average selling prices and additional sales realized as a result of the continuing supply disruptions of Chinese imports. Recent investments in both the acquisition of coal mix and the expansion at our manufacturing facility in Italy have proven critical to meet the increasing demand
for the European market.
As we have discussed before, Europe remains an important growth focus for our Animal Nutrition and Health segment. We have started to see some return to the market of Chinese choline suppliers in line with our view that the disruption is likely to be short term. Animal Nutrition and Health quarterly earnings from operations of $7,500,000 were $2,100,000 or 39 point 2 percent higher than the prior year comparable quarter of $5,400,000 The higher sales driven by increased monogastric volumes and higher average selling prices coupled with improved throughput from the higher volumes drove the strong margin expansion in the quarter compared to prior year. The Specialty Products segment achieved 1st quarter sales of 17 point $7,000,000 for the 3 months ended March 31, 2018, as compared with $18,800,000 for the 3 months ended March 31, 2017. The decrease of 5.6 percent was driven primarily by softer plant nutrition sales in 2018, partially offset by were $5,100,000 versus $6,500,000 in the prior year comparable quarter, a decrease of $1,300,000 Excluding the effect of non cash expense associated with amortization of acquired intangible assets of $732,000 1st quarter adjusted earnings from operations for this segment were $5,900,000 compared to $7,200,000 in the prior year quarter, a decrease of 18.7%.
The decrease was driven by the lower volumes in plant nutrition and product mix, partially offset by the pricing actions taken to help mitigate increased raw material costs as well as other rising costs rising costs where contract terms permit. In the Industrial Products segment, sales of $14,500,000 increased 6 point from the prior year comparable quarter, primarily due to significantly higher sales of choline and choline derivatives used in shale fracking applications. Compared sequentially to the Q4 2017, sales were, however, 0 point $4,000,000 lower, which marks the 1st sequential decrease in oil and gas demand that we have seen in over a year and a half. As we have discussed in the past, we are pleased with the year over year growth but remain cautious about this historically cyclical market. Our earnings from operations for the Industrial Products segment were $2,500,000 an increase of $1,800,000 compared with the prior year quarter and primarily reflects the increased sales.
I'm now going to turn the call back over to Ted for some closing remarks.
Thanks, Terry. We delivered year over year revenue and operating earnings growth in 3 of our 4 segments with overall first quarter revenues of $161,400,000 up 17.2 percent year over year. Record adjusted net earnings of $24,400,000 and operating cash flow of $25,500,000 despite significant challenges, including raw material and other cost inflation across all segments and unfavorable dairy economics impacting Animal Nutrition and Health. We continue to generate strong cash flows. Our revolver remains fully available and our net debt has been reduced to $168,100,000 as of March 31 or 1.1 times trailing 12 months adjusted EBITDA, further strengthening our balance sheet.
Our strong first quarter results once again highlight the strength and resilience of our business model. While we continue to face some challenges within the ruminant side of the Animal Nutrition and Health segment, along with higher raw material costs across all of our businesses, there is good momentum in each of the 4 segments. Additionally, we are pleased with the progress made on our key strategic growth initiatives, in particular, the growing awareness of choline as an essential nutrient and the integration of ISP and Colmex. We will continue to strengthen our company by focusing on these initiatives, exercising disciplined cost management and seeking value creating acquisition opportunities. I would now like to hand the call back over to Terri, who will open up the call for questions.
Terri?
Thanks, Ted. This now concludes the formal portion of the conference. At this point, we will open the conference call for questions.
Thank you. Our first question is from Tim Rainey with Pivotal Research. Please proceed with your question.
Hi, thanks so much. Congratulations on a nice quarter. The results in the plant based chelates business, I wonder if you would elaborate a little on this. I'm guessing this is your key selling season on that, so there's probably not much recovery in that as possible for this year. Was there anything that was outside just either poor sales or execution?
Or was it weather? Or how should we think about that?
Yes. This is your favorite segment, Tim. I know you know these products well. It certainly is partly weather related. Obviously, this has been part of our company since the Albion acquisition.
We did see through the quarter sales into this segment increase and that has continued here into the Q2. So there is a window of opportunity to catch up. But you're right, we need to catch up now. And we are pleased with the increase through Q1 and into Q2. I'm not sure we'll catch it all up, but we're definitely eating into the gap that we created in Q1.
Our international sales continue to be strong. We continue to be bullish on the business long term, but it does seem like late frost and excessive rains at times of kind of key spreading have somewhat impacted
Animal Nutrition business. In your remarks and I think in the release too, you talked about healthy monogastric sales of choline chloride. I'm kind of surprised that there isn't some retrenchment given the trade issues out there. You're just not seeing any of that is, I guess, what you're telling us.
Yes. We're really not. We're somewhat concerned about that and obviously watching those trade discussions. Swine was on the potential list and that's a part of our monogastric business, but honestly, it's the smaller part. Something on poultry would be more significant, and we're not expecting that at this point.
So we're seeing healthy demand both in Europe and North America. We are benefiting revenue wise by higher prices, and we are also, as we talked about last quarter, benefiting from the supply disruptions coming out of China on Chinese made choline that is exported into Europe and North America. And that probably benefited our monogastric business by about $4,000,000 in Q2. It was about $3,000,000 in Q4 of last year, and we had indicated that we thought it would be about the same in Q1, and it was a little bit more. So we're seeing healthy growth, volume growth, just from the business and some benefit from pricing, but we also are seeing that benefit from the Chinese supply disruptions.
And that benefit, I think you indicated, you saw it to be somewhat transient. Is it persist into the 2Q and 3Q, but maybe goes away by 4Q or how would we think about that?
Yes. I think that we think that it peaked in Q2 I mean in Q1, sorry, and that it will start to decline. But we will see some lingering benefit in Q2 as well and maybe not all the way to Q4. We might see minimal benefit in Q3. We're starting to see increased activity from the Chinese suppliers, albeit at a higher cost position.
We do think that the environmental regulations that are being imparted on these plants are changing the cost position. So while supply is coming back, we're seeing the product coming in at higher prices, And that may be more of a permanent impact, which I think would be positive because they have been previously selling at very low prices.
Our next question is from Brett Hundley with the Vertical Group. Please proceed with your question.
Hey, good morning, everyone.
Hey, Brett.
Good morning.
I wanted to ask you or start with the HNH choline business and see if you could give us a growth number for that business in Q1?
Sure, Brett. As we talked about last call, the coiling business has been growing pretty nicely. This quarter, our revenue was up about 10%. Last year, for the full year 2017, we were up about 13%. So the double digit growth has continued.
We are going to see growth in that business a little bit lumpy, but we're very encouraged by not only the 10% in Q1, but just the increased awareness that we're seeing across the board, the while the inclusion of choline singles in Walmart and Target alone is not necessarily a huge increase in demand for us. It's really encouraging to see just increased availability of choline. We've talked about that in the past. Previous to this, you could buy choline in GNCs and vitamin shops and online, but now to see it in sort of mass retail outlets is very encouraging. So we're encouraged about choline generally speaking.
But 10% is the short answer to your question.
Okay. And I can't remember, I'll have to go back and look through my notes, but I can't remember the comparisons that are in place for your choline business on the HNH side. I mean, as you moved from 2016 into 2017, were you experiencing more difficult comparisons in the early part of 2017? So in other words, this Q1 2018, were you up against a particularly tough comparison and then comparisons eased as you got across 2017? Do you recall how that business trended for you?
It actually my recollection is that our business did trend up through the course of the year. So I think that this was not a particularly easy comparison, nor was it a real tough comparison. But I do believe our volume trended up throughout 2017. So it might be a little bit more on the easy comparative than the hard, but it doesn't stand out as really either one to me. Okay.
I wanted to ask you about IFP and then I just have one other question. So on IFP, do you I think you were initially targeting maybe $3,000,000 in synergies. Can we expect that to move a little bit higher over time as you complete some other related to that asset? And when will the when will that IFP plant closure be completed?
So again, IFP, I think, is another area that we're very pleased with the strategic addition of IFP to the company and how the synergies are developing. As we made the acquisition, we announced it was about a $20,000,000 revenue acquisition with about $3,000,000 of EBITDA. And you're right, at the time, we said we thought we could transform the P and L from a $3,000,000 EBITDA into about $6,000,000 And the closure of the Hayfield, Minnesota plant will add about $2,000,000 integration efforts. So we will, I believe, beat the 3,000,000. I would maybe plan on 4,000,000 plant closure, it will be $4,000,000 And we are expecting that to be completed by July.
Okay.
So we'll see about a half a year benefit of that this year. There are some P and L impacts of the closure. We have about $1,500,000 non cash write off that will impact Q2. And we think all combined the shutdown and severance costs will be less than $500,000 but let's say in that area for what is an annualized 2,000,000 savings.
That's great. And then the last question I have for you is back inside HNH talking about sugar and sweetener reduction. So as we think about nutrition labeling standards, at least as they're currently expected to change in early 2020, our understanding is that food and beverage customers are getting more active on sugarsweetener reduction reformulations and things like that. And I just wanted to get a sense of how and if you guys participate in that and to what degree? Thank you.
Sure. Thanks. We absolutely do. It impacts us. We sugar is an important part of many of our products and it's a trend that we're seeing that has longevity to it and actually growing.
And I think that to some extent, it plays to our strengths. We're not really core in any of those types of ingredients. And so our formulation expertise in coming up with solutions to lower sugar products, I think, is something that can shine as this trend continues. So we are in the midst of creating new formulations for many customers that are clean label, fewer ingredients, lower sugar and different protein sources, good fats versus historically what were thought to be bad fats. And we're not concerned by it.
In fact, we think it's a positive trend that we can take advantage of.
Thank you much.
Our next question is from Francisco Pellegrino with Sidoti and Company. Please proceed with your question.
Good morning, guys.
Hey, Francesco.
Hi. Ted, I want to ask you about the higher monogastric sales. I think you said that $4,000,000 was attributable to the Chinese tariff the Chinese import issue.
How much
of that business was to new customers?
That's a good question, Francesco. If you kind of dissect it just for a second, we were up $8,700,000 in monogastric, so about $9,000,000 4 of which I already said was due to the shortage customers because most of our traditional customers really choose to buy European produced product from Europe or U. S. Produced product. And so they tend not to kind of go back and forth.
So I would say the entire 4,000,000 dollars is largely at new customers. Some of whom we talked about this being short term, but some of whom have signed some contracts with us longer term to try to make this a little bit more sustainable for us. And then I would say additionally, out of the $5,000,000 we had we did see a currency benefit of a couple of $1,000,000 in revenue. And the rest really is from our existing customer base. We have expanded a little bit, but maybe, let's say, $5,000,000 out of the $9,000,000 total was new customers.
Okay. I would think that these customers, a majority of them being new, I would think that their price points, they tend to buy an inferior product since they're basically buying from the Chinese producers. Maybe you were able to raise pricing a little bit more for these guys just knowing that the desperate measures that they were the desperate situation that they were in and that they were probably going to leave you once this Chinese
Yes. No. I think what how I would position it is that we've been selling. If the customer is unwilling to sign a longer term certainly quite a bit higher. So we have been selling we certainly haven't been advantaging these short term customers that come over due to Chinese issues.
We haven't been advantaging them versus our long term existing I
know ethylene oxide was called out for specialty products. Are you going to I know ethylene oxide was called out for specialty products. Are you going to be able to get any price increases through for the remainder of the year for these two raw material inputs?
Yes. We will mostly outside of specialty products. I think specialty products is sort of beginning of the year type of relationships with our customers. We're based on current trends and natural gas prices and so forth. We don't think that ethylene oxide, ethylene prices will increase significantly more through the year.
But if they were to, we would struggle in specialty products. In the other areas, we do have opportunities to raise prices with a reasonable, let's say, quarter lag.
Okay. Switching over to Curemark, I thought your comments about still manufacturing the CMAAT drug for rollover participants was pretty interesting just knowing how long it took Curemark to find the right number of patients to finally close enrollment, how many patients rolled over from the trial that closed in December?
I do not know the exact number, but it's several 100.
Okay. If you don't know the exact number maybe, let me ask it a different way. How much more or less are you manufacturing since the end of the trial? So I would think that'd be another way to get a read through.
Right. Yes, there are rollover patients from the earlier trials. It's not just the 300. So we do have patients that gone into the rollover study from the earlier trial. So it's not correct just to look at it as 300.
But there are hundreds of patients who have rolled over from the first trial and combined with the second trial. And other than that, I can't really we make these in batches, and we make sort of a similar amount every time we make a batch. And I think the positive is that we continue to have to make new batches even though the official trials are done because patients are in the rollover.
Got it. And just the last question. I think on the Q4 call, when we just started talking about maybe a timeline for an eventual decision, we were dancing around like 1Q 2019. Does that still sound about right?
Yes, Francesco. I don't see any reason to change that expectation. I do know that Curemark is in the midst of analyzing the results and data from the Phase III clinical trial that ended in December. I also know that they're presently in the process of requesting a requisite meeting with the FDA to review the results and discuss the filing. So I think that, that is a reasonable assessment of time line at this point based on what we know.
Got it. Thank you
know. Our next question comes from Ram Selvaraju with H. C. Wainwright.
Hi, good morning. This is Julian on for Ram Filvaraju. Regarding your autism drug candidate CMAT, have there been any discussions about a companion diagnostic test? And if so, has your company had any involvement with this?
We have not had any involvement with it nor any discussion with them around a new and different diagnostic deficiency of this enzyme and certain patients for these trials have gone through that. But I'm not aware of a new and different test, and we're certainly not part of it.
Ladies and gentlemen, we've reached the end of the question and answer session. At this time, I'd like to turn the call back to Ted Harris for final closing comments.
Okay. Thank you. And thank you all for joining the call today and your continued support and interest in the company. Q1 was a really good quarter for Balchem, both financially and relative to progress made on our strategic initiatives. We certainly look forward to talking to you again in August about our Q2 results.
In the meantime, we will be presenting at several conferences. So in case you can make them, the BMO 2018 Farm to Market Conference and the Houlihan Lokey Annual Global Industrials Conference is in May, in mid May in New York and then we're going to be presenting at Credit Suisse's Global Chemicals and Agricultural Conference in Europe in early June. So hopefully, we'll get to see some of you there. Thanks again for calling in
and have
a great day.
This concludes today's conference. You may