Greetings, and welcome to the Construction Partners Incorporated Third Quarter Earnings Conference Call. At this time, all participants are in a listen only mode. A brief question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Rick Black, Investor Relations.
Thank you, Mr. Black. You may begin.
Thank you, operator, and good morning, everyone. We appreciate you joining us for the Construction Partners conference call to review Q3 results. This call is also being webcast and can be accessed through the audio link on the Events and Presentations page of the Investor Relations section on constructionpartners.net. Information recorded on this call speaks only as of today, August 7, 2020. So please be advised that any time sensitive information may no longer be accurate as of the date of any replay.
I would also like to remind you that the statements made in today's discussion that are not historical facts, including statements of expectations or future events or future financial performance, are considered forward looking statements made pursuant to the Safe Harbor provision of the Private Securities Litigation Reform Act of 1995. We will be making forward looking statements as part of today's call that, by their nature, are uncertain and outside of the company's control, actual results may differ materially. Please refer to the earnings press release that was issued today for our disclosure on forward looking statements. These factors and other risks and uncertainties are described in detail in the company's filings with the Securities and Exchange Commission. Management will also refer to non GAAP measures, including adjusted EBITDA.
Reconciliations to the nearest GAAP measures can be found at the end of our earnings press release. Construction Partners assumes no obligation to publicly update or revise any forward looking statements. And now, I would like to turn the call over to Construction Partners' CEO, Charles Owens. Charles?
Thank you, Rick, and good morning, everyone. With me on the call today are Ned Fleming, our Executive Chairman Alan Palmer, our Chief Financial Officer and Jewel Smith, our new Chief Operating Officer that we announced this morning. I will start today by providing an update on the Q3 and then turn the call over to Ned for a few additional comments. Finally, Alan will review the financial results and outlook before we take your questions. We are pleased with our strong profitability in the Q3 despite lower revenues.
Our solid results were driven primarily by vertical integration synergies, lower cost of fuel, effective utilization of crews and equipment, a disciplined project bidding strategy and pricing of our integrated products. As an essential business, we have continued to operate through the COVID-nineteen pandemic without significant delays. The flexibility of our employees and the effectiveness of our safety protocols have positioned us to effectively manage pandemic related challenges in our day to day operations. Notwithstanding current top line pressure from COVID-nineteen and its related effects in certain of our markets, we remain optimistic about the long term prospects of our business and industry. I'd also like to discuss the announcement we made today promoting Jule Smith, a Senior Vice President of our company to the newly created role of Chief Operating Officer effective October 1.
As a former owner, JUUL has continued to lead Brad Smith Company, our North Carolina subsidiary that we acquired in 2011. As Chief Operating Officer, Jewel will be charged with driving the development of the organization overseeing day to day operations. He has decades of experience and proven track record as a respected leader within our organization and his community. Jewel has significantly contributed to our senior management team and successfully executed the company's strategy in North Carolina. With the expansion of our organization in recent years, we see this position as vital to our future growth and success.
This new role strengthens our organizational structure and allows us to efficiently manage today's business, while focusing and executing on our long term growth strategy. We expect JUUL's leadership, experience and vision to enhance our organization. Finally, based on the current backlog and near term visibility of the business, we are adjusting our full year outlook for fiscal 2020 by raising our projected net income and adjusted EBITDA ranges, while taking a conservative approach to our revenue outlook based on current run rates as Alan will discuss later. Before turning the call over, I would like to thank our leadership team and more than 2,300 employees for their commitment, dedication and hard work that enables us to execute our strategy. And with that, I'd like to turn the call over to our Executive Chairman, Ned Fleming.
Ned?
Thank you, Charles, and good morning to everyone. This was an excellent quarter. This quarter is a great example of our team's strong leadership to successfully manage the business during these unprecedented times and still deliver impressive profitability. We have always run the company with a focus of growing margins, cash flow and therefore value. It is accomplished through continuing to drive vertical integration, better utilizing technology, increased efficiencies throughout the organization, including better equipment utilization, as well as employee training, among many other things.
My point is that we look at all aspects of the business to increase profitability. While we navigate through this current uncertain economic environment as a result of the COVID-nineteen pandemic, we believe that CPI is well positioned as an essential business with a differentiated and proven strategy that is consistent and profitable. We will continue to manage the company for the long term and in a prudent manner as we advance the business through these unprecedented times. As Charles mentioned, JUUL's promotion to Chief Operating Officer expands his role and responsibility, which advances the organization for CPI's future growth. He is a talented operator and an executive that brings effective leadership skills to this new role as well as a deep understanding of our business and growth strategy.
Since joining CPI nearly a decade ago, he has led significant growth within our company. The Board has great confidence in him as well as our entire senior leadership team to continue to execute our business model as a consolidator in a fragmented industry while driving long term growth and value creation. Let me add that establishing the role of COO is a step that will not only expand JUUL's role, but creates a structure for ongoing growth and opportunity for other senior management team members. It is important to mention that Charles' leadership and mentorship of our senior team and really throughout the organization has been and will continue to be a core strength of a team oriented and entrepreneurial culture. Under Charles' continued leadership, the senior team will proceed with to execute CPI's successful strategy.
I look forward to working with Charles, Jewel, Alan and the entire CPI team as we grow the company. With that, I would like to turn the call over to Alan to discuss our Q3 results, and then
we will answer your questions. Alan? Thank you, Ned, and good morning, everyone. I will start by highlighting our key performance metrics in the 3rd quarter. Revenue for the quarter was $217,000,000 a decrease of $10,300,000 compared to the same quarter last year.
The decrease included a decline of $20,000,000 in our markets that existed at June 30, 2019, primarily due to a reduction in the number of projects available for VIT in certain of our markets, including North Carolina. It is also a result of efforts to manage the backlog and effectively utilize our workforce in light of the uncertainties caused by the COVID-nineteen pandemic. This decrease was offset by $9,700,000 of revenue attributable to acquisitions completed after June 30, 2019. Gross profit for the Q3 was $36,500,000 compared to $38,100,000 in the Q3 last year, primarily as a result of the decrease in 3rd quarter revenues. General and administrative expenses were $16,900,000 in the quarter, essentially flat compared to last quarter and up $900,000 compared to the same quarter last year.
The increase year over year was primarily the result of costs related to acquisitions completed subsequent to June 30, Net income for the quarter was $15,700,000 compared to $17,200,000 for the same quarter last year, and diluted earnings per share was $0.30 compared to $0.33 for the same quarter last year. The decrease was primarily a result of lower gross profit and higher general and administrative expenses. During the quarter, we recorded a non cash gain of $395,000 in other income related to fuel swaps and a non cash charge of $120,000 related to interest rate swaps. The value of these instruments was impacted by volatility in the financial and commodities market during the quarter due to COVID-nineteen and other macroeconomic factors. Adjusted EBITDA increased to $31,900,000 compared to $31,300,000 for the same quarter last year.
The increase was a result of a higher depreciation, depletion and amortization of long lived assets, partially offset by lower gross profit and an increase in general and administrative expenses. Adjusted EBITDA margin for the 3rd quarter 14.7%, up from 13.8% in the 3rd quarter last year. This was driven by an increase in adjusted EBITDA and a decrease in revenues as discussed earlier. Turning now to the balance sheet. At June 30, we had $78,700,000 of cash $19,300,000 of availability under our revolving credit facility after reduction for outstanding letters of credit.
As of the end of the quarter, our debt to trailing 12 months EBITDA ratio was 0.83. Since the end of the quarter, we borrowed $30,000,000 in term debt and increased the capacity under our revolving credit facility to $50,000,000 This additional liquidity provides financial flexibility in today's uncertain economic environment and provides capital for potential future acquisitions, allowing us to respond quickly to growth opportunities when they arise. Cash provided by operating rise. Cash provided by operating activities was $51,400,000 for the 9 months ended June 30, 2020, compared to $18,000,000 for the same period last year. CapEx for the Q3 was $7,000,000 compared to $11,900,000 in the same quarter last year.
As you will recall, we expect capital expenditures for fiscal 2020 to be $40,000,000 to $42,000,000 excluding the expenditures of $11,500,000 in the Q1 of this fiscal year to purchase equipment previously subject to operating leases. Project backlog at June 30, 2020 was $651,200,000 compared to $579,100,000 at March 31, 2020 $581,100,000 at June 30, 2019. We strive to maintain a disciplined approach to bidding work as we strategically focus on recurring repair and maintenance projects and seek to maintain 6 to 9 months of backlog in each of our markets at any given time. We continue to closely monitor the impact of COVID-nineteen pandemic on all aspects of our business, including its impact on our customers, employees, suppliers and vendors. As Charles mentioned, there has not been a material adverse impact on our operating results to date.
However, the extent to which our operations may be impacted by the COVID-nineteen pandemic going forward will depend largely on future developments. These include actions that could be taken by governmental and health authorities and future funding for projects tied to gas tax receipts. Management remains vigilant in monitoring these developments and their impact on our business and industry. Taking these factors into account as well as our current backlog, we are revising our fiscal year 2020 outlook by lowering our expected revenue range and raising our expected net income and adjusted EBITDA ranges. For the full fiscal 2020 year, we project revenue of $810,000,000 to $820,000,000 net income of $36,000,000 to $38,000,000 and adjusted EBITDA of $92,000,000 to $94,500,000 In summary, we are pleased with our Q3 results and we'll continue to execute our growth strategy in the Q4 of fiscal 2020.
With that, we'll now take questions. Operator?
Thank you. We will now conduct a question and answer session. Our first question comes from Josh Wilson with Raymond James. Please proceed with your question.
Good morning. Congratulations on the quarter and congrats to Juul on the promotion.
Thank you, Josh.
A couple of questions here. First, as it relates to your backlog, on the last quarterly call, you had been drop sequentially somewhat. But can you give us a flavor of what the margins look like in the backlog, especially as we look beyond this current quarter?
Yes, Josh. We have seen some pressure on margins. Some of the reason for the shortfall in revenue in Q3 was projects that were bid at extremely low margins that we were not successful in winning, but we feel good about the backlog we have for our Q4 and going into 2021. In most of our markets, we've not seen a substantial reduction in the bid margins that we got on backlog. So we're real pleased and optimistic about our Q4 end 2021.
Good. And as it relates to 'twenty one, should we expect the normal seasonal cadence? Or are there some one offs from the pandemic that are affecting that?
No. I think the way we see it lining up with the amount of backlog that we've got going into 2021, we should see the normal 40% 60% with only a slight variation. So of course, obviously, we've got to still fill at this point about half of our backlog for next year, But part of that will be filled in this Q4, and we feel like we'll be in really better shape going into 2021 than we were at 2020.
Got it. And then can you give us a sense of what the monthly trends were in sales as things open back up and into July August?
Well, our normal in the Q4 is going to be to see month over month sales to increase throughout that quarter. In June May April, it really was kind of even throughout all three of those quarters. Some of the book and burn that we thought we would pick up in some markets didn't we didn't get. So that's why our revenue fell short a little bit, but we've got our backlog for the Q4 fully booked. So normally July because of holidays is the lowest of the 3 months in August September, the higher revenue.
So that's certainly how it's stacking up right now.
Okay. I'll turn it over to others. Good luck with the quarter.
Thank you.
Thank you. Our next question comes from Andrew Wittmann with Baird. Please proceed with your question.
Okay, thanks. Good morning, guys. And thank you for taking my questions. I guess I'll just start off by building on some of the last questions around the backlog. It was obviously pretty notable here this quarter.
And I was just wondering about just given the size of the sequential increase in the backlog, if there are any larger projects in the backlog today than maybe there were in the last several quarters or if maybe another way of saying that is, is the duration of this backlog give you better than average or worse than average visibility? I think some commentary on that would be helpful. Thank you.
Yes, this is Alan. There's not any real change in the duration of the projects. I mean, the majority of those in our backlog are ones that will be completed in less than 12 months. We might have, I think, maybe one project that's longer than 12 months that got booked, but it's not the 2022 is not amount is not significant. So pretty typical because what we're seeing are a lot of the repair and maintenance type projects and usually they're less than 12 months in duration.
So just seeing a lot of activity in that and still seeing strong private work and those are typically not multi year projects. So really a lot more just the same.
Got it. Yes. And that touches on kind of what I wanted to get into next. If you could expand, Alan, a little bit on the kind of the mix between private and public. It's not lost that some of the public budgets are already seeing some pressures and may possibly see some more as we move forward to this COVID pandemic.
As a result of that, are you continuing to see are you seeing the private sector make up for that? Is it too early to say? And maybe specifically, if you could talk about, what you are hearing and seeing and expecting from your state DOTs as we move forward would be also very helpful.
Yes. I'll talk about the backlog and I'll let Charles talk a little bit about the DOTs. But as far as the backlog, it's pretty similar mix of about 65 percent public and 35% private. Actually, this quarter, we just finished and probably in the next quarter, we'll see a little bit higher public because this is when we do a lot of the mill and resurface, which generates higher revenues from that portion of the work. But we're still seeing strong private work.
We're seeing in Alabama specifically the cities and counties spending the money. So that's public, but non DOT. So we feel like we'll probably stay in that 65%, 35% range going into next year. And we're I think probably the backside of next year some of the work. We're hopeful that the DOTs and the other publics will pick up with the funding programs that they're looking to put in place.
So I'll let Charles
kind of talk about that a little bit. All right. Thank you, Alan. Andy, what we're seeing in the markets that we're operating in, we're in 35 different markets scattered over these 4 or 5 states. And what we're seeing is a lot of the gas tax revenue coming back.
In fact, where we have our operations, we're seeing down in gas tax receipts a little bit less than 10%. So what we're seeing is still a lot of traffic out there on the road. And from a federal standpoint, we have fast ag that's going to end in September 30. And the Senate has a proposal out there and the House has a proposal out there and both of them have a pretty substantial increase compared to what we've been seeing year over year. So we think at some point in time that this tax this increase will take place.
And we don't really anticipate it taking place until maybe after the 1st of the year, but we're very confident that we'll see continuing resolutions that will keep everything in place. So we're feeling pretty good about the DOTs and I have Jules Smith in the call today here and one place that we've had a little bit more weakness than in other areas has it been in the North Carolina market. And so I'll just let him paint a big picture of kind of what North Carolina looks like because we're seeing some very positive things right now. Joel?
Okay. Thank you, Charles. Andy, the North Carolina DOT specifically, they had been in the news the last 6 months with their funding issues. And I think it's important to remember that their funding mechanism has and continues to be healthy. They just simply overspent back in 2018.
And so we're seeing their funding heal, and we hope they've taken some concrete measures over the summer to speed that up. And so we see the North Carolina DOT resuming lettings this fall, and we're very optimistic about North Carolina moving forward. But the backlog that we've been able to build over our 35 market areas is just shows that we're not dependent upon 1 state or 1 market area at Construction Partners.
Great. Thanks. I'm just going to do one last quick one and then I'm going to jump back in the queue. But Alan, just given that the gross margins were so strong here in the quarter, I was wondering if there's any project closeouts that allowed you to book a little bit more profit as you close those out or if there's any moving pieces inside the gross margins that are notable like that?
Yes, Andy. I mean, it really was just a combination of things, the mix of work that we completed during the quarter. We certainly were the beneficiaries of lower diesel fuel prices and asphalt cement, although because of the indexes that gave us some headwind to revenue compared to last year when those indexes were going up and we got a little tailwind. But it really was just a combination of that. I think Charles said in his comments that the vertical integration with us having the liquid asphalt terminal and seeing benefits out of that and then just being able to complete the work efficiently.
And in some markets, we weren't working as much overtime and that helped us also. So really just a combination, no one thing as far as any kind of big project or a write up like that, just normal business.
Thank you.
Our next question comes from Michael Finger with Bank of America. Please proceed with your question.
Hi, everyone. Thanks for taking my questions. The backlog was good this quarter. I'm just curious, you mentioned, obviously, July is usually low. I'm kind of curious like as we go through the next 2 months as you guys build the back log, is there any concerns with the uncertainty around FastAct, the stimulus right now with COVID?
There's a big disagreement about what are they going to help states and municipalities, are they not? Or does it feel like the next 2 months, it's kind of in the bag and really the uncertainty has a bigger impact on 2021?
Well, certainly for us, since our year end September 30, and we've got 100% of our backlog for the next 3 months, we won't be impacted in our fiscal 2020. And we have backlog for our fiscal 2021 that would carry us for the 1st 6 months of that. But through September, most of the DOTs, with the exception that you all mentioned with North Carolina, are still letting projects based on what was in their fiscal year budget. It was not really tied to this year's revenue tax collections. Charles mentioned we're already seeing a significant recovery in the states that we're in with people getting back to work and the traveling public back out there.
So there's been a there are less decline year over year in the tax revenues. If nothing is done in the COVID package that backstops the states, which we're optimistic there might be, we feel like the program will still be strong next year. We've said before, what historically happens is when there is a shortfall in those state tax revenues, they get away from more of the large projects and the DOTs have certainly signaled that, that they're going to take care of the roads that they have is going to be their first priority. So we feel very positive that even if there is not a recovery of the tax revenues that the repair and maintenance portion of that budget will continue to be strong into 2021 in the future.
Great. That was really helpful. And I'm curious what you're seeing with your competitive environment. Are you seeing competitors with some of the projects that with some of the lettings and projects coming up for bid? Is it getting more competitive?
Are you seeing pricing really come down a lot? And do you think that if we go into next year, do you think a lot of these family offices and kind of all the places you compete with, are they willing to maybe kind of decide to put their hands up for sale, don't want to deal with a higher tax rate? I'm just curious if you kind of give us a little bit more of a background on what you're seeing competitively with these new projects coming up for bid and also maybe on the acquisition side with some of these other smaller competitors?
Michael, this is Charles. We're seeing on a competitive bid, we're seeing a lot of pressure in different markets. Of course, we have 35 different distinct market areas and some are a little bit more competitive than others, but none of them is what I call good, real great, none of them is real bad. So it's just a mixture out there and we've been fortunate enough with our team to stick to our discipline of bidding and making sure that we book the work that we need and it's going to be built at the time we're going to need. And as far as our acquisition pipeline, we're still seeing a strong pipeline and we're maybe seeing a little bit more than we have usually seen.
And as Alan mentioned on the banking side in our balance sheet that we've made some that we've got some money available to where we can move quickly on acquisitions and not get tied up with the banking side of trying to make things work. And we think there's going to be plenty of opportunity going forward from a M and A side.
Perfect. That's really helpful. And just lastly, you guys were commenting before about the FASTAC, the expiration to end of September. There's different bills
to how they approach this.
If we see a 1 year extension or a CR at the current level, which basically D. C. Decides to kind of punt and say, figure it out after the election. Is that you guys used to have a lot of uncertainties with these CRs. Is the situation with the DOTs, is it better than it was before to handle that type of CR, if that's the case, if we don't get a multiyear extension?
We really don't see a federal bill pass until next year. And if you track this business as long as we have and you know that we have never had a bill put in place, I don't think when one expires and we've always gone through continuing resolutions. And so this CR is kind of almost just almost a given. So but I think one thing that may help us is we may see CR that's a little bit longer than this time instead of just a short term just so the DOTs can do a little bit better planning. But I don't think that's going to slow down the process of putting a permanent build in place.
Typically, Michael, those CRs are at the current funding level or higher. And we both parties now, the House and the Senate, have talked about if they do a CR, they've got different levels of increases that they're proposing. But we feel very good that the funding level even with a CR will be higher than what is expiring. So but as Charles said, I agree. I don't think that there's likely to be the replacement of the FAST Act for the election.
Thanks, everyone. Thank you.
Our next question comes from Adam Thalhimer with Thompson Davis. Please proceed with your question.
Hey, good morning, guys. Congrats on a great quarter.
Thank you, Adam.
I wanted to ask first, hey, what are your high level revenue thoughts for fiscal 2021? Do you have any early thoughts?
Well, we haven't put anything together. We normally do that closer to our fiscal year end, and we do that by doing it from the ground up with 35 different profit centers and market areas. So we have not begun that process. We feel like that given the backlog going into next year compared to what we had going into this year, we feel better, as I said earlier, about the prospects and the things that Jule mentioned with the North Carolina DOT getting back on track. And certainly, in the next by September 30, we'll know whether there's a continuing resolution and at what funding level.
So that will give a lot of clarity for us as to what 2021 looks like. But we feel very optimistic at this time that that's going to present some good opportunities for us.
Okay. And then you gave some good color on North Carolina and Alabama already. Curious what you're seeing in Georgia and Florida?
Hey, Adam. From a Georgia standpoint, if we looked at if we look back over, say, for May or, say, for March to May and look at gas tax receipts, we actually see a more a positive trend in Georgia. And then in Florida, we're seeing a negative trend, but we're seeing a lot of work being led in Florida. And Florida, some of those market areas in Florida continues to hold up and be strong. And so from the where we have our asphalt plant and our operations from March through May 2019 versus 2020 year over year, we're down about 9%, roughly about 9% in motor fuel tax revenue.
So down in our area, we're not locked down and we're moving. And the good thing that we're seeing is when you get out into traffic, we're seeing gridlock again. And that's a very positive thing for our industry because everyone wants to get from one place to the other. And so we feel good about
a new revenue stream coming in. And Adam, we've as you know, with the acquisitions we've made in the last 18 to 24 months, Those have been greatly expanded our footprint in Florida, and we're seeing that that's helpful in having more market areas down there to be at the end and some of the synergies of the plants that are now located next to each other being able to share some services and bid on projects that companies that we acquired couldn't before. So some of the normal synergies that we see, we're certainly seeing that in Florida.
Okay. And just last one
for me. You said you had a benefit from lower diesel and lower asphalt, and that decreased revenue but increased margin. Can you just walk us through that dynamic quickly?
Yes. I think in our call last quarter, we said based on where the asphalt cement prices were and diesel prices that we felt like over the next 6 months, it'd be probably a $3,000,000 to $4,000,000 revenue hit, where index has kicked in and we had to give back that revenue that would be in our backlog and actually in the quarter, this quarter compared to the same quarter last year, that was $2,100,000 so or $2,200,000 So we still feel like that will be $3,000,000 to $4,000,000 over the 6 months. But what that basically does is that's revenue we don't collect, but it's cost we don't incur. So we still have the same margin on that work because you all you give back is the cost savings. So that's where you if prices are going down and we're having to refund part of the contract amount or not collect it, And that's where we see as a percentage our margin is going to go up.
So that's kind of what we were talking about. But that was the amount in this quarter compared to the index adjustment last year, it was about a $2,200,000 variance. And also, during we're booking and burning a lot of work. So if the index or if the price of asphalt, cement and diesel had stayed up, then we would have been bidding projects with a higher cost. So in addition to the index giveback on existing contracts, some of our new contracts that we were bidding had lower cost in there, and we might be getting the same margin, but it's on a lower revenue number.
So that has a slight impact on the margin percentage.
Understood. Okay. Thanks for the color.
Our next question comes from Brett Feldman with D. A. Davidson.
Jewel, congrats on the new position. I actually had a question for you in that Fred Smith's been a really successful sort of operating subsidiary of the company. And I'm curious as you move into this new role, if there's some things you can take from your experience there to some of the other operating subsidiaries, just from an operating from an efficiency standpoint, really get into the question of, is there an opportunity to drive 50 or 100 bps in margin improvement in the organization?
Well, thank you, Brett. I think, first of all, it's been an incredible decade with Construction Partners, and I've learned a ton from Charles as a mentor. And I'm looking forward to learning even more and helping him across all 35 market areas. Fred Smith Company has a great management team and leadership team there. And everything that we've done there, we're doing in the other states.
And I think there's always opportunities to improve. And that's going to be part of my role is just to help Charles make sure that our operations are running efficiently, safely and driving profitability throughout. So the one thing is CPI also has just a great management team and leadership team in all the states, and I'm looking forward to getting to know each other and work with them even more closely in the coming year.
Okay. All right. I appreciate that. I'd be curious to see how what you guys find. I guess second question would be just generally speaking what you guys are seeing in terms of kind of private sector or private commercial work out there in your markets?
Thank you.
All right. We're looking at we discussed quite a bit about the public side and we see that coming back and we're feeling real good about what direction that's going in. And we do still do a small portion of our business is the residential and what the areas that we're in, we're still seeing residential still holding up pretty strong. And as you know, with the interest rates that's out there on 15, 30 year mortgages right now, I mean, it's just unbelievable what you can get a mortgage for right now, which is, I think, the big driver. And we haven't seen in the markets that we're in now, we haven't seen that much of a pullback in residential.
And our other bucket that we operate out of is our commercial work and the commercial over our 35 different markets. Some we see very little activity and then there's some markets that are still we're we're really not seeing one that's what I'd call this real weak at this point. So it's all looking very positive.
Okay. Great job. Great quarter. Best of luck.
Thank you.
Thank you. At this time, I would like to turn the call back over to management for closing comments.
Okay. Well, I just want to thank everyone for joining the call today, and we look forward to speaking with you on the next conference call. And just be assured that we will continue to focus on our strategy and execute in a very safe manner, and want everyone on the call today to be safe and look forward to the next call. Thank you.
Thank you, ladies and gentlemen. This concludes today's teleconference. You may disconnect your lines at this time and have a great day.