TSE:RCH Richelieu Hardware Q3 2023 Earnings Report C$32.61 +0.06 (+0.18%) As of 04/17/2025 04:00 PM Eastern Earnings HistoryForecast Richelieu Hardware EPS ResultsActual EPSC$0.53Consensus EPS C$0.55Beat/MissMissed by -C$0.02One Year Ago EPSN/ARichelieu Hardware Revenue ResultsActual Revenue$458.99 millionExpected Revenue$454.10 millionBeat/MissBeat by +$4.89 millionYoY Revenue GrowthN/ARichelieu Hardware Announcement DetailsQuarterQ3 2023Date10/5/2023TimeN/AConference Call DateThursday, October 5, 2023Conference Call Time2:30PM ETConference Call ResourcesConference Call AudioConference Call TranscriptPress Release (8-K)Earnings HistoryCompany ProfilePowered by Richelieu Hardware Q3 2023 Earnings Call TranscriptProvided by QuartrOctober 5, 2023 ShareLink copied to clipboard.There are 3 speakers on the call. Operator00:00:01Good afternoon, ladies and gentlemen, and welcome to the Reshear Hardware Third Quarter Results Conference Call. At this time, all lines are in listen only mode. Following the presentation, we will conduct a question and answer session, which will be restricted to analysts only. This call is being recorded on October 5, 2023. Richard Lord, Speaker 100:00:57please. Thank you. Good afternoon, ladies and gentlemen, And welcome to Richelieu's conference call for the Q3 and 1st 9 month period ended August 31, 2023. With me is Arthur Nuffler, CFO. Our 3rd quarter performance reflects the effectiveness of our incentives To achieve good sales in our Canadian and U. Speaker 100:01:20S. Market, sales are slightly below the Q3 of 2018, which benefited from exceptional market condition in the pandemic context. For the 9 months to date, we reached shares of 1,300,000,000 In line with last year, our customer focused business model and our diversified markets in North America are effective assets Our innovation and value added service strategies and our business acquisitions, which partly offset the internal decrease in sales compared to 2022. Our EBITDA margin is lower than last year due to the return To pre pandemic levels of operating expenses, exceptional external warehousing costs relating to temporary higher inventories level And the cost related to our expansion and modernization projects of some centers in the U. S. Speaker 100:02:17In order to accelerate future growth. Our cash flow from operating activities was strong for the Q3 generating $104,000,000 Our inventory It's currently going to lead to normal loan balance, which contributed to a positive effect on cash flow. We ended the period With a financial position that remains very solid. Antoine will now review the financial highlights of the Q3 And the first 9 months, then I will conclude and we'll take your questions. Thanks, Richard. Speaker 100:02:543rd quarter sales have reached $492,800,000 down 2.9%, of which 4.6% from internal decrease and 1.7% from acquisitions. It's important to note that in the Q1 of 2022, Richelieu had achieved strong internal growth of 16%. In Canada, sales amounted to $270,100,000 down 3.4 percent of which 6.4% from internal decrease, partially offset by a 2.1% targeted contribution from acquisitions. Our sales to manufacturers reached $219,900,000 down 3.6 percent and for the hardware retailers, Sales stood at $60,200,000 down 2.7 percent. In the U. Speaker 100:03:41S, sales grew to 141,600,000 U. S. Dollar, down 5.6 percent. Sales to manufacturers reached $151,000,000 in U. S. Speaker 100:03:51Dollar, down 6.8%. In the hardware retailers and renovation super stores market, sales reached $10,600,000 up 12.8%. In Canadian dollar, total sales in the U. S. Reached $188,900,000 a decrease of 2.3%. Speaker 100:04:11For the 1st 9 months, sales reached $1,300,000,000 down 0.8 percent of which 2.8% from internal decrease and 2% from acquisition. In Canada, sales reached $780,600,000 down $20,600,000 or 2.6 percent, of which 4.5% from internal decrease and 1.9% from acquisitions. Sales to manufacturers reached $635,400,000 down $15,300,000 or 2.4 percent. Sales to hardware retailers and renovation superstores Reached $145,200,000 compared to $150,500,000 down 3.5%. In the U. Speaker 100:04:53S, sales amounted to US411.2 million dollars down 3.5 percent of which 5.5 percent from internal decrease and 2% from acquisitions. We reached CAD553.5 million, up 1.7%, Accounting for 41% of total sales. Sales to manufacturers totaled CAD379,800,000 a decrease of CAD12,600,000 or 3.2 percent of which 5.4% from internal decrease and 2 point Sales to hardware retailers and innovation superstores were down 6.5% compared to last year. 1st quarter EBITDA reached CAD61 1,000,000 down CAD18.2 million or 23% over last year, resulting from lower sales and higher operating Thanks. EBITDA margin stood at 13.3% to operating to 16.7% last year. Speaker 100:05:53For the 1st 9 months, EBITDA reached $171,600,000 down 18.6%. As for the EBITDA margin, it stood at 12.9% compared to 15.7 percent last year. 3rd quarter net earnings attributable to shareholders totaled $29,800,000 down 24.6%, mainly due to amortization resulting from business acquisitions and extension projects, mainly in the U. S, including higher interest expense on lease obligations. Net earnings per share was $0.53 compared to $0.83 last year, a decrease of 36.1%. Speaker 100:06:31For the 1st 9 months, net earnings attributable to shareholders reached 82,900,000 Down 31.1 percent. Diluted net earnings per share stood at $1.47 compared to $2.19 last year. Cash flows from operating activities before net change in non cash working capital balances was CAD48,500,000 compared to CAD60,900,000 last year. Net change in non cash working capital items represented a cash flow inflow of 55,100,000 Excess inventories continue to reduce as planned with a positive effect of $24,500,000 As a result, Operating activities represented a cash inflow of CAD103.5 million in the quarter compared to a cash outflow of CAD2.7 million in 2022. For the 1st 9 months, cash flows from operating activities represented a cash inflow of CAD192,000,000 compared to cash outflow of CAD37.9 million For the Q3, financing activities used cash flow of $16,900,000 compared to $17,200,000 last year. Speaker 100:07:39Dividends paid to shareholders of the corporation amounted to $8,400,000 compared to $7,300,000 in the same period of 2023. For the 1st 9 months, financing activities used cash flow of $52,000,000 compared to $46,900,000 in 20.22. Dividends paid to shareholders amounted to $25,400,000 compared to $21,800,000 last year. During the first time, Mass, we invested $42,500,000 $20,000,000 for Safe Business Acquisition and $22,500,000 mainly for distribution center modernization And expansion projects, investments in equipment to maintain and improve operational efficiency as well as for IT infrastructure development. We continue to benefit from a healthy and solid financial position with a working capital of $606,100,000 for a current ratio of 3.4:one and an average return on equity of 15.5%. Speaker 100:08:33I now turn it over to Richard. Thank you, Antoine. The integration of recent acquisitions is in progress as are the expansions and consolidation projects underway in our network. We have finalized the consolidation of our centers in the Atlanta and Nashville regions and our Seattle center is now fully operational. We are also progressing with the Fontana Center expansion and plan to complete the consolidation of our centers in the Cajele area in the Q1 of 2024. Speaker 100:09:04We expect to end the year on November 30, 2023 with a sustained performance and a solid position By relying on successful strategy that our following served us well, namely ongoing innovation, value as a service, Market penetration and business acquisitions, which are our key growth driver. Thanks everyone. We'll now be happy to answer your questions. Operator00:09:29Thank you, ladies and gentlemen. We will now begin the question and answer session. You will hear 3 tone prompt acknowledging your request and your questions will be pulled in the order they are received. Your first question comes from Ariana Millim with CIBC Capital Markets. Please go ahead. Speaker 200:09:59Hi, good afternoon. Richard, can you speak to what kind of organic decline you saw in September and when you expect to return to positive organic growth? Speaker 100:10:07What we see so far this year, I think it's very encouraging. If you remember well, from the 2019 to the end of 2022, our sales are increased by 70%. The current performance is a clear demonstration though that we keep up to those market shares as we gain during the pandemic And we're very happy about this. And we consider our performance really satisfactory in the circumstances for the current market. Speaker 200:10:35Thanks. That's helpful. And Richard, can you speak to the M and A pipeline and whether you've seen any moderation in vendor expectations? Speaker 100:10:44Yes. The pipeline is quite healthy in the U. S. And in Canada as well. So we're working on some opportunities as we speak. Speaker 100:10:53But the M and A environment is still very positive for us. Speaker 200:10:59Okay. Thank you. And then just with respect to your excess inventories, when do you expect to work through them? And what are the risks of further price deflation as you look to normalize inventories? Speaker 100:11:11Francois will answer for the deficient. Regarding deficient, there's going to be some deficient for certain products, Mainly for those that come from Asia. But as a percentage of our gross margin should be maintained after We are fast that we withdrew the excess of inventory. So basically, we look forward to make sure that we stabilize the situation With new inventory at the new class and then we're going to see a growth for the margins and anything else coming in the future. On the short term, We have to deal with that situation, but I think at the end of the first half of twenty twenty four, we should be through everything at 1. Speaker 100:11:48And regarding inventory, We're down €65,000,000 since the beginning of the year so far. We've mentioned that we were expecting to €80,000,000 in 2023 is going to be closer to €80,000,000 And we should probably see another €20,000,000 somewhere in the first half Of next year. So the inventory should come to a more reasonable level in the middle of next year. Speaker 200:12:16Okay, great. Thank you. And just the last question I had was Antoine, are you able to provide us with some perspective on type of EBITDA margins you're targeting for 2024? Speaker 100:12:26Yes. We're currently at 13%. And with the market conditions that We're seeing now I think that the 30% 13% is a reasonable level of EBITDA. Speaker 200:12:40Okay. Thanks. That's all I have for now. I'll get back in Speaker 100:12:42the queue. Thank you. Operator00:12:51Your next question comes from Zachary Evershed with National Bank Financial. Speaker 100:12:56Hi, good afternoon. It's actually Thomas calling in for Zach. Consolidation of Majuro in Atlanta. And when do you expect that shows up in the results? Yes. Speaker 100:13:12We just ended the consolidation of our Plaza and Nashville Centers that our Seattle Center is now fully operational. So we should start to see benefit from those initiatives early next year. Okay. Thank you. Do you feel the environment has stabilized enough that we can call a bottom here? Speaker 100:13:42Well, I think that's what I would say. I would say that we have visibility up to middle of next year and We see the environment staying pretty flat as it is today. Okay. I think that's the right answer for Madhuyn, because What we see the current situation, we don't see any positive sign. I think I don't think it's going to get worse, but we don't think it's going to get better anyways. Speaker 100:14:06But we As I explained at the beginning of the meeting, the fact that we maintain the market share that we gained during the pandemic, I think it's a very, very positive for us. So that means that our sales have increased and it has been concentrated compensated by an economy, which is not As we put but our goal is to continue to work hard in order to increase on the capital nutrition and To make sure that the if there is a sales decline that is minimal as we've seen so far, but that's really the goal of our team both in U. S. And in Canada. There is a lot of work that's going to be doing in order to keep up with those market share. Speaker 100:14:48Thank you. And Last one for me here. I think previously you mentioned $15,000,000 in inventory reduction next year. You just called out $20,000,000 in the first half. Is $50,000,000 Still the number for the full year? Speaker 100:15:02Yes. Basically, this year is going to be slightly on the high side. So With the level of sales that we see today, dollars 20,000,000 for the first half is reasonable and I think we'll Operator00:15:24There are no further questions. Please proceed. Speaker 100:15:28If there's no more questions, thanks again. So it's always a pleasure to talk to you and meet with you at your convenience. You very much and have a nice day. Operator00:15:35Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect the lines.Read morePowered by Conference Call Audio Live Call not available Earnings Conference CallRichelieu Hardware Q3 202300:00 / 00:00Speed:1x1.25x1.5x2x Earnings DocumentsPress Release(8-K) Richelieu Hardware Earnings HeadlinesRichelieu Hardware (TSE:RCH) Price Target Raised to C$38.00April 16, 2025 | americanbankingnews.comSmall caps to watch: Well Health, Richelieu Hardware, Reitmans and moreApril 11, 2025 | theglobeandmail.comTrump’s Secret WeaponHave you looked at the stock market recently? Millions of investors are scrambling trying to figure out what's coming next. But here's the truth… This is just the beginning. Trump has made it clear his tariffs are coming, and that the market will get worse before it gets better. Luckily, our FREE Presidential Transition Guide details exactly what will happen in the next 100 days, and how to protect your hard-earned savings during these times. Don't wait for the next crash to wipe you out. Act now.April 20, 2025 | American Alternative (Ad)Should Weakness in Richelieu Hardware Ltd.'s (TSE:RCH) Stock Be Seen As A Sign That Market Will Correct The Share Price Given Decent Financials?March 19, 2025 | finance.yahoo.comRichelieu Hardware Ltd. (TSE:RCH) Passed Our Checks, And It's About To Pay A CA$0.1533 DividendJanuary 26, 2025 | finance.yahoo.comRichelieu Hardware (TSE:RCH) Has Affirmed Its Dividend Of CA$0.1533January 22, 2025 | finance.yahoo.comSee More Richelieu Hardware Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like Richelieu Hardware? Sign up for Earnings360's daily newsletter to receive timely earnings updates on Richelieu Hardware and other key companies, straight to your email. Email Address About Richelieu HardwareRichelieu Hardware (TSE:RCH) Ltd is a Canada-based company that imports, manufactures, and distributes specialty hardware and complementary products. Headquartered in Montreal, the company operates across Canada and the eastern and midwestern regions of the United States. The majority of the company's sales are derived from its operations in Canada. Richelieu's products include furniture, glass, decorative, window, and door hardware, lighting systems, and kitchen and closet storage. The firm primarily serves home furnishing manufacturers, residential and commercial woodworkers, hardware retailers, and renovation superstores.View Richelieu Hardware ProfileRead more More Earnings Resources from MarketBeat Earnings Tools Today's Earnings Tomorrow's Earnings Next Week's Earnings Upcoming Earnings Calls Earnings Newsletter Earnings Call Transcripts Earnings Beats & Misses Corporate Guidance Earnings Screener Earnings By Country U.S. Earnings Reports Canadian Earnings Reports U.K. Earnings Reports Latest Articles Archer Aviation Unveils NYC Network Ahead of Key Earnings Report3 Reasons to Like the Look of Amazon Ahead of EarningsTesla Stock Eyes Breakout With Earnings on DeckJohnson & Johnson Earnings Were More Good Than Bad—Time to Buy? 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There are 3 speakers on the call. Operator00:00:01Good afternoon, ladies and gentlemen, and welcome to the Reshear Hardware Third Quarter Results Conference Call. At this time, all lines are in listen only mode. Following the presentation, we will conduct a question and answer session, which will be restricted to analysts only. This call is being recorded on October 5, 2023. Richard Lord, Speaker 100:00:57please. Thank you. Good afternoon, ladies and gentlemen, And welcome to Richelieu's conference call for the Q3 and 1st 9 month period ended August 31, 2023. With me is Arthur Nuffler, CFO. Our 3rd quarter performance reflects the effectiveness of our incentives To achieve good sales in our Canadian and U. Speaker 100:01:20S. Market, sales are slightly below the Q3 of 2018, which benefited from exceptional market condition in the pandemic context. For the 9 months to date, we reached shares of 1,300,000,000 In line with last year, our customer focused business model and our diversified markets in North America are effective assets Our innovation and value added service strategies and our business acquisitions, which partly offset the internal decrease in sales compared to 2022. Our EBITDA margin is lower than last year due to the return To pre pandemic levels of operating expenses, exceptional external warehousing costs relating to temporary higher inventories level And the cost related to our expansion and modernization projects of some centers in the U. S. Speaker 100:02:17In order to accelerate future growth. Our cash flow from operating activities was strong for the Q3 generating $104,000,000 Our inventory It's currently going to lead to normal loan balance, which contributed to a positive effect on cash flow. We ended the period With a financial position that remains very solid. Antoine will now review the financial highlights of the Q3 And the first 9 months, then I will conclude and we'll take your questions. Thanks, Richard. Speaker 100:02:543rd quarter sales have reached $492,800,000 down 2.9%, of which 4.6% from internal decrease and 1.7% from acquisitions. It's important to note that in the Q1 of 2022, Richelieu had achieved strong internal growth of 16%. In Canada, sales amounted to $270,100,000 down 3.4 percent of which 6.4% from internal decrease, partially offset by a 2.1% targeted contribution from acquisitions. Our sales to manufacturers reached $219,900,000 down 3.6 percent and for the hardware retailers, Sales stood at $60,200,000 down 2.7 percent. In the U. Speaker 100:03:41S, sales grew to 141,600,000 U. S. Dollar, down 5.6 percent. Sales to manufacturers reached $151,000,000 in U. S. Speaker 100:03:51Dollar, down 6.8%. In the hardware retailers and renovation super stores market, sales reached $10,600,000 up 12.8%. In Canadian dollar, total sales in the U. S. Reached $188,900,000 a decrease of 2.3%. Speaker 100:04:11For the 1st 9 months, sales reached $1,300,000,000 down 0.8 percent of which 2.8% from internal decrease and 2% from acquisition. In Canada, sales reached $780,600,000 down $20,600,000 or 2.6 percent, of which 4.5% from internal decrease and 1.9% from acquisitions. Sales to manufacturers reached $635,400,000 down $15,300,000 or 2.4 percent. Sales to hardware retailers and renovation superstores Reached $145,200,000 compared to $150,500,000 down 3.5%. In the U. Speaker 100:04:53S, sales amounted to US411.2 million dollars down 3.5 percent of which 5.5 percent from internal decrease and 2% from acquisitions. We reached CAD553.5 million, up 1.7%, Accounting for 41% of total sales. Sales to manufacturers totaled CAD379,800,000 a decrease of CAD12,600,000 or 3.2 percent of which 5.4% from internal decrease and 2 point Sales to hardware retailers and innovation superstores were down 6.5% compared to last year. 1st quarter EBITDA reached CAD61 1,000,000 down CAD18.2 million or 23% over last year, resulting from lower sales and higher operating Thanks. EBITDA margin stood at 13.3% to operating to 16.7% last year. Speaker 100:05:53For the 1st 9 months, EBITDA reached $171,600,000 down 18.6%. As for the EBITDA margin, it stood at 12.9% compared to 15.7 percent last year. 3rd quarter net earnings attributable to shareholders totaled $29,800,000 down 24.6%, mainly due to amortization resulting from business acquisitions and extension projects, mainly in the U. S, including higher interest expense on lease obligations. Net earnings per share was $0.53 compared to $0.83 last year, a decrease of 36.1%. Speaker 100:06:31For the 1st 9 months, net earnings attributable to shareholders reached 82,900,000 Down 31.1 percent. Diluted net earnings per share stood at $1.47 compared to $2.19 last year. Cash flows from operating activities before net change in non cash working capital balances was CAD48,500,000 compared to CAD60,900,000 last year. Net change in non cash working capital items represented a cash flow inflow of 55,100,000 Excess inventories continue to reduce as planned with a positive effect of $24,500,000 As a result, Operating activities represented a cash inflow of CAD103.5 million in the quarter compared to a cash outflow of CAD2.7 million in 2022. For the 1st 9 months, cash flows from operating activities represented a cash inflow of CAD192,000,000 compared to cash outflow of CAD37.9 million For the Q3, financing activities used cash flow of $16,900,000 compared to $17,200,000 last year. Speaker 100:07:39Dividends paid to shareholders of the corporation amounted to $8,400,000 compared to $7,300,000 in the same period of 2023. For the 1st 9 months, financing activities used cash flow of $52,000,000 compared to $46,900,000 in 20.22. Dividends paid to shareholders amounted to $25,400,000 compared to $21,800,000 last year. During the first time, Mass, we invested $42,500,000 $20,000,000 for Safe Business Acquisition and $22,500,000 mainly for distribution center modernization And expansion projects, investments in equipment to maintain and improve operational efficiency as well as for IT infrastructure development. We continue to benefit from a healthy and solid financial position with a working capital of $606,100,000 for a current ratio of 3.4:one and an average return on equity of 15.5%. Speaker 100:08:33I now turn it over to Richard. Thank you, Antoine. The integration of recent acquisitions is in progress as are the expansions and consolidation projects underway in our network. We have finalized the consolidation of our centers in the Atlanta and Nashville regions and our Seattle center is now fully operational. We are also progressing with the Fontana Center expansion and plan to complete the consolidation of our centers in the Cajele area in the Q1 of 2024. Speaker 100:09:04We expect to end the year on November 30, 2023 with a sustained performance and a solid position By relying on successful strategy that our following served us well, namely ongoing innovation, value as a service, Market penetration and business acquisitions, which are our key growth driver. Thanks everyone. We'll now be happy to answer your questions. Operator00:09:29Thank you, ladies and gentlemen. We will now begin the question and answer session. You will hear 3 tone prompt acknowledging your request and your questions will be pulled in the order they are received. Your first question comes from Ariana Millim with CIBC Capital Markets. Please go ahead. Speaker 200:09:59Hi, good afternoon. Richard, can you speak to what kind of organic decline you saw in September and when you expect to return to positive organic growth? Speaker 100:10:07What we see so far this year, I think it's very encouraging. If you remember well, from the 2019 to the end of 2022, our sales are increased by 70%. The current performance is a clear demonstration though that we keep up to those market shares as we gain during the pandemic And we're very happy about this. And we consider our performance really satisfactory in the circumstances for the current market. Speaker 200:10:35Thanks. That's helpful. And Richard, can you speak to the M and A pipeline and whether you've seen any moderation in vendor expectations? Speaker 100:10:44Yes. The pipeline is quite healthy in the U. S. And in Canada as well. So we're working on some opportunities as we speak. Speaker 100:10:53But the M and A environment is still very positive for us. Speaker 200:10:59Okay. Thank you. And then just with respect to your excess inventories, when do you expect to work through them? And what are the risks of further price deflation as you look to normalize inventories? Speaker 100:11:11Francois will answer for the deficient. Regarding deficient, there's going to be some deficient for certain products, Mainly for those that come from Asia. But as a percentage of our gross margin should be maintained after We are fast that we withdrew the excess of inventory. So basically, we look forward to make sure that we stabilize the situation With new inventory at the new class and then we're going to see a growth for the margins and anything else coming in the future. On the short term, We have to deal with that situation, but I think at the end of the first half of twenty twenty four, we should be through everything at 1. Speaker 100:11:48And regarding inventory, We're down €65,000,000 since the beginning of the year so far. We've mentioned that we were expecting to €80,000,000 in 2023 is going to be closer to €80,000,000 And we should probably see another €20,000,000 somewhere in the first half Of next year. So the inventory should come to a more reasonable level in the middle of next year. Speaker 200:12:16Okay, great. Thank you. And just the last question I had was Antoine, are you able to provide us with some perspective on type of EBITDA margins you're targeting for 2024? Speaker 100:12:26Yes. We're currently at 13%. And with the market conditions that We're seeing now I think that the 30% 13% is a reasonable level of EBITDA. Speaker 200:12:40Okay. Thanks. That's all I have for now. I'll get back in Speaker 100:12:42the queue. Thank you. Operator00:12:51Your next question comes from Zachary Evershed with National Bank Financial. Speaker 100:12:56Hi, good afternoon. It's actually Thomas calling in for Zach. Consolidation of Majuro in Atlanta. And when do you expect that shows up in the results? Yes. Speaker 100:13:12We just ended the consolidation of our Plaza and Nashville Centers that our Seattle Center is now fully operational. So we should start to see benefit from those initiatives early next year. Okay. Thank you. Do you feel the environment has stabilized enough that we can call a bottom here? Speaker 100:13:42Well, I think that's what I would say. I would say that we have visibility up to middle of next year and We see the environment staying pretty flat as it is today. Okay. I think that's the right answer for Madhuyn, because What we see the current situation, we don't see any positive sign. I think I don't think it's going to get worse, but we don't think it's going to get better anyways. Speaker 100:14:06But we As I explained at the beginning of the meeting, the fact that we maintain the market share that we gained during the pandemic, I think it's a very, very positive for us. So that means that our sales have increased and it has been concentrated compensated by an economy, which is not As we put but our goal is to continue to work hard in order to increase on the capital nutrition and To make sure that the if there is a sales decline that is minimal as we've seen so far, but that's really the goal of our team both in U. S. And in Canada. There is a lot of work that's going to be doing in order to keep up with those market share. Speaker 100:14:48Thank you. And Last one for me here. I think previously you mentioned $15,000,000 in inventory reduction next year. You just called out $20,000,000 in the first half. Is $50,000,000 Still the number for the full year? Speaker 100:15:02Yes. Basically, this year is going to be slightly on the high side. So With the level of sales that we see today, dollars 20,000,000 for the first half is reasonable and I think we'll Operator00:15:24There are no further questions. Please proceed. Speaker 100:15:28If there's no more questions, thanks again. So it's always a pleasure to talk to you and meet with you at your convenience. You very much and have a nice day. Operator00:15:35Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect the lines.Read morePowered by