CES Energy Solutions Corp. (CEU) Earnings Call Transcript & Summary

Good morning, everyone, and thank you for attending today's call. I'd like to note that in our commentary today, there will be forward-looking financial information and that our actual results may differ materially from the expected results due to various risk factors and assumptions. These risk factors and assumptions are summarized in our second quarter MD&A and press release dated August 6, 2026, and in our Annual Information Form dated March 10, 2026, in addition, certain financial measures that we will refer to today are not recognized under current generally accepted accounting principles. And for a description and definition of these, please see our second quarter MD&A and investor presentation posted on our website. At this time, I'd like to turn the call over to Ken Zinger, our President and CEO.

Thank you, Tony, and welcome, everyone. Thank you for joining us for our second quarter 2026 earnings call. As always, I will start my comments today by highlighting some of our major financial accomplishments that we achieved in Q2 of 2026. Our quarterly highlights include our third consecutive all-time record quarterly revenue of $74.1 million which was an improvement of 24.4% over last year's Q2. It was also our highest quarterly EBITDA ever at $119.2 million, which marked a massive improvement of about 35% over last year's Q2. . Q2 EBITDA margin of 16.7%, which was above our stated guidance range of 15.5% to 16.5%, total debt to trailing 12 months EBITDA of 1.15x. And our sixth consecutive quarter of record-setting U.S. quarterly revenue was $497 million, our best ever Q2 Canadian quarterly revenue of $217.1 million. With regard to our capital allocation plans, I am pleased to report the following: Consistent with our prior messaging, we intend to address the dividend once per year while reporting Q4 or Q1 of each year. We will continue to support the business with the necessary investments required to provide acceptable growth and returns. This includes the updated CapEx plan for 2026 of $100 million, spread equally between maintenance and growth. We will continue to research and execute on strategic acquisition opportunities, which support vertical integration or interrelated business lines or geographies where we believe we can add value and grow returns. We will continue repurchasing shares while staying within our current debt to trailing 12-month EBITDA range of 1 to 1.5x as previously communicated. Now for a quick summary of our Q2 performance overall and by division. Today, our rig count in North American land stands at 235 rigs out of the 791 currently listed as operating. This represents an industry-leading 29.7% market share. During Q2, 70% of CES revenue was generated in the United States and 30% in Canada, which is typical for a Q2 due to breakup in Canada. Cost pressures and supply chain challenges due to the follow-up from the Iran conflict were felt across the business throughout Q2. As evidenced by our Q2 margins of 16.7%, our entire team has worked tirelessly along with our customers and suppliers to find common ground on pricing. This effort included procuring reliable replacements and redundant sources for all affected products and inputs. I cannot emphasize enough a tremendous job done by everyone in the company to achieve the current results in light of all the pricing headwinds currently impacting our industry. We continue to not expect these fluctuations to cause meaningful or sustained margin erosion. We are actively managing the challenges as we have during previous cost escalation periods, and we do not expect any material impact to our margins going forward. We remain very confident in our stated margin guidance of 15.5% to 16.5%. In Canada, the Canadian drilling fluids division continues to lead the WCSB in market share. Today, we are providing service to 89 of the 219 jobs listed as underway in Canada for a 40.6% market share. As everyone is aware, the overall active drilling rig count in Canada in Q2 was considerably higher year-over-year as commodity prices and industry optimism spiked due to the current Middle East situation. Now that we are through breakup in Canada and well into the summer drilling season, we remain very optimistic about WCSB activity levels. This is evidenced by the current WCSB rig count in August, which is at its highest level for this time of year since 2014. We anticipate these higher activity levels will continue throughout Q3, Q4 and Q1 2027 and due to recently added takeaway capacity from infrastructure projects as well as vastly improved futures pricing for energy products due to the aforementioned Iran conflict and its associated call out. PureChem, our Canadian production chemical division continued its run of strong results in Q2. PureChem continues to grow as all of the business lines continued to perform at record levels. We anticipate experiencing further revenue and earnings growth at PureChem due to our consistent market penetration and higher activity levels that we expect to continue in the near future. The previously announced trial in the heavy oil sector of the market continued throughout Q2 and will progress well into the second half of 2026. In the United States, AES, our U.S. drilling fluids group is currently providing chemistries and service to 146 of the 572 rigs listed as active in the U.S.A. land market today including a basin-leading 39.5% of the rigs in the Permian. This combines for our continued #1 market share of U.S. land rigs at 25.5% and our U.S. customers remain busy and our outlook is constructive for the remainder of 2026 and into 2027, at AES Completion Services, which is what we renamed our Hydrolite acquisition, the revenue and market share continues to grow at a level exceeding expectations. This division is now operating at a very high level and has grown revenue by over 5x since we acquired them in June of 2024. Finally, our U.S. production chemical division, JACAM Catalyst continues a steady trend of growing market share and profitability. The division remains focused on further market penetration in all the areas in which they operate on land in the United States as well as in the offshore market. As a follow-up to the previously announced land-based RFP awards, I will confirm that we have now fully taken over all of the awarded locations associated with a large referred to last year, and the business is now seamlessly operating at this much higher revenue run rate level. As well, progress continues in the offshore Gulf of America market. As previously noted, this is a long and slow growth opportunity that we continue to make progress on. We believe our Q4, Q1 and Q2 results are indicative of the tremendous store we have continually building in our business. We also believe that North American upstream activity will continue to accelerate throughout 2026 and 2027 based on current industry conditions and expected activity levels. We now believe that 2021 is looking stronger than previously anticipated for North America and for CES as the oil market has achieved economically attractive futures pricing and natural gas demand accelerates due to LNG and AI development. With regard to USA tariffs and the suggested Canadian counter tariffs, we continue to have little to no direct effect on our business in their current state. However, over the last couple of years, we have taken significant steps to restructure our manufacturing and supply chains in order to minimize future exposures as much as possible. I will state once again that as clearly noted a year ago on our Q1 2025 earnings call the impact from tariffs to date continues to be immaterial to our overall business. By way of update, I would now like to remind investors of our targeted growth opportunities for the business in the coming years. USA production chemicals. Based on third-party reports and our own internal research, an estimated USA land production chemical market is currently worth approximately CAD 4 million to CAD 4.5 billion annually. According to the Kimberlite report from last fall, we are the second biggest production chemical company in U.S.A. land, and we held approximately 21% of this market. We are waiting to see what they say about the market share in the USA production chemicals next month when the 2026 report is published. Our goal remains to expand this market share and become the dominant #1 supplier in this space. Canadian heavy oil production treating, third-party reports suggest that this segment of the Canadian market is approximately CAD 800 million annually. Today, we have a very minor share of this business and we have spent the last 10 years making slow steady progress on penetrating this technical sticky, high-margin profile market. We continue to make steady progress at the 2 smaller facilities we are servicing, which we have previously mentioned as well, we have recently been awarded 2 additional small facilities where we are also treating with a complete line of chemistries. As mentioned on the past couple of calls, we are continuing the live testing trials on 1 of the larger facilities in the province. In addition to this trial, we are now just starting trials with 2 more opportunities at larger heavy oil production facilities. Like the existing trials, these additional trials will be ongoing and complicated, and I want to note that time lines to successful award will be measured in months and years, not days and weeks. Our goal remains to attain a meaningful market share in this space over time, much like we have in the broader Canadian production chemical space and recent progress suggests that successful penetration is starting to accelerate. Next up is offshore Gulf of American production chemicals. Third-party reports suggest that this market size is approximately CAD 1 billion annually. We are in the very early innings of a very long cycle time to penetrate this business in a meaningful way. Today, we are a very small player in this space. However, since buying ProFlow in 2022, we have been hiring experts building out manufacturing capabilities, and we also recently built an offshore focused lab in the Woodlands and Houston. We have been experiencing more and more trial opportunity flow due to these initiatives. We are focused on someday holding a meaningful market share in the deepwater Gulf of American production chemicals market and have a focused team who are dedicated dedicated to and actively pursuing this result. Also, international markets. We continue to have very minimal exposure to these markets. Today, we generate a small amount of revenue and earnings from a minor presence in a half a dozen countries, which we have targeted specifically as having the characteristics best suited for us to compete. We also have participated in a couple of RFPs in the Middle East over the past year, which yielded very promising results. As can be appreciated, the issues around the Iran war have caused these opportunities to be delayed indefinitely. In spite of this setback, we are continuing undeterred in our efforts to expand geographically. And last but not least, North American macro growth. This is something that is obviously beyond our control, but as the past few months have shown when the market gets busier, we are rewarded with significant growth in earnings. As a final thought, I want to extend appreciation to each and every 1 of our employees for their commitment to the business, culture and success of CES due to the growth we are still experiencing as well as anticipated experiencing, we have increased our total number of employees at CES by 6.5% since the start of the year from 2,707 employees on January 1, and to 2,882 employees at the end of Q2. I will now pass the call to Tony for the financial update.

Thank you, Ken. The second quarter represented an important continuation of a steady march to achieving a record revenue run rate of approximately $2.9 billion bolstered by strong EBITDAC margins above our 15.5% to 16.5% targeted range and record funds flow from operations, collectively demonstrating the attractive financial attributes of our unique business model. These results underpin the resilience of CES' consumable chemicals business model and sustained profitable growth as our customers continue to adopt chemical-related improved efficiencies and require higher treatment levels for increasingly prolific wells. In Q2, CES generated record revenue of $714 million representing an annualized run rate of approximately $2.9 billion and a 24% increase over the prior year's $574 million. I would also note that this is the third consecutive quarter that has generated an annualized revenue run rate of approximately $2.7 billion or greater. -- the first quarter achieving the $2.9 billion range, demonstrating the impacts of market share gains, large new business wins and prudent deployment of capital to realize attractive organic growth. Revenue generated in the U.S. had a new record at $497 million, representing 70% of total consolidated revenue. These results compare to revenue of $438 million in Q1 2026 and $406 million in Q2 2025. Revenue generated in Canada also set a new second quarter record at $217 million compared to $168 million in Q2 2025 and sequentially below the $244 million in Q1 2026 as expected on a seasonal basis. Revenue levels benefited primarily from increased market shares and elevated service intensity and production chemical volumes driven by increasingly complex drilling programs. Customer emphasis on optimizing production through effective chemical treatments benefited both countries and illustrate the resilience and attractiveness of our business model. Adjusted EBITDA in Q2 came in at $119.2 million, compared to $111.7 million in Q1 and $88.3 million in Q2 2025. Q2's adjusted EBITDA margin of 16.7% and came in just above the high end of our targeted 15.5% to 16.5% range and compared to 16.4% in Q1 and 15.4% in Q2 2025. These results were primarily driven by record revenue levels, combined with strong margins, continued increased service intensity and a single short-term project. Funds flow from operations, which isolates the effect of working capital fluctuations and is a key barometer of the cash flow-generating capability of the company was a record $97 million in Q2 compared to $62 million in Q1 and $77 million in Q2 2025. The CES generated $60 million in cash flow from operations compared to $69 million in Q1 and $66 million in Q2 2025. The decreases in cash flow from operations relative to comparable periods were driven primarily by significant strategic working capital investments to support record revenue levels. Free cash flow was $25 million in Q2 compared to $33 million in Q1 and $35 million in Q2 2025. And as measured by a free cash flow to adjusted EBITDA conversion rate. This equates to approximately 21% in the current quarter and 37% for the trailing 12 months. Excluding the impact of changes in working capital, these figures would have been 51% and 46%, respectively. CES maintained a prudent approach to capital spending through the quarter with CapEx spend net of disposals of $24 million, representing 4% of revenue. We will continue to adjust plans as required to support existing business and attractive growth throughout our divisions. For 2026, we expect cash CapEx to be approximately $100 million, split evenly between maintenance and expansion capital. The modest increase in estimated 2026 CapEx spend is earmarked to support incremental accretive business development opportunities and current record revenue levels. During the quarter, the company continued with its measured pace for share buybacks, thanks to consistently strong current and projected free cash flow. This shift reflects a disciplined response to increased volatility on the macro front and targeted acceleration of buybacks as opportunities present themselves. While remaining committed to its NCIB CS is ensuring that repurchases are executed strategically to maximize long-term shareholder value. Consequently, during Q2, we repurchased 780,000 common shares at an average price of $17 per share for a total investment of $13.3 million, representing 0.4% of the shares outstanding as of April 1, 2026. Subsequent to the quarter, we have already purchased 735,000 shares at an average price of $16.60 per share for a total of $12.2 million representing an acceleration from Q2 repurchase levels. On July 22, 2026, we renewed the previous NCIB to repurchase for cancellation up to 18.1 million shares representing 10% of the public float at the time of the renewal. Since inception of the NCIB program in 2018, CES has purchased 89 million shares representing 33% of the outstanding shares at that time at an average price of $4.70 per share. On June 15, 2026, the company completed the private placement of $300 million of 5 5/8% senior unsecured notes due on June 15, 2033, the company used the proceeds from the issuance to repay the existing $275 million of 6 7/8% senior unsecured notes due on May 24, 2029, and and partially repaying amounts outstanding on the senior credit facility. The refinancing decreases CS' annual interest costs by approximately $2 million per year, extends our debt maturity profile to 2033 and provides additional financing flexibility. The resulting total debt at the end of the quarter was $513 million, representing an increase of $21 million from March 31, 2026. Total debt was primarily comprised of the new $300 million in senior notes and net new draw on the senior facility of $98 million. and $96 million in lease obligations. Total debt to adjusted EBITDAC of 1.15x at the end of the quarter compared to 1.18x at March 31, 2026 demonstrating our continued commitment to maintaining prudent leverage levels in the 1 to 1.5x range. This prudent and flexible capital structure is further illustrated by our current metro of approximately $172 million, which has increased by $74 million from the end of the quarter, driven by the settlement of the company's quarterly dividend and CIB share repurchases and the timing of annual PSU-related compensation payments. We are very comfortable with our current debt level maturity schedule and leverage in the 1 to 1.5x range, thereby enabling strong return of capital to shareholders and prioritizing a sustainable dividend and share buybacks in addition to strategic pound acquisition opportunities. Elevated activity levels, combined with our continued focus on working capital optimization has led to improvements in cash conversion cycle, which ended the quarter at 95 days. compared to 112 days in Q2 2025. This translates to an operating working capital as a percentage of annualized quarterly revenue of 26%. I compared to our historical range of 30% to 35%. Each percentage improvement at these revenue levels represents approximately $29 million on our balance sheet. We continue to remain focused on profitable growth, acceptable margins, working capital optimization and prudent capital expenditures, which drive our key metric of return on capital employed. This approach has led to a cultural adoption of these key factors, allowing us to maintain a strong trailing 12-month return on average capital employed of 22% and and a return on invested capital of 18% and well above our internal weighted average cost of capital. The business model continues to demonstrate its cash compounding characteristics through a combination of high return metrics, low CapEx levels, strong free cash flow, leading market shares and attractive organic growth. In this environment, CS remains in a position of strength and flexibility supporting our capital allocation priorities, which are governed by adequate return metrics. We continue to prioritize capital allocation towards supporting existing and new business through investments in working capital as required and CapEx projects that deliver IRRs above our internal hurdle rates. We remain very comfortable with our dividend, which represents a yield of approximately 1.3% at our current share price and is supported by a very prudent payout ratio of 15% well within our target range of 10% to 20%. Through the year, we continue to plan to buy back at least enough shares to offset our modest equity compensation-related dilution be in the market on a consistent basis and consider opportunistic purchases in the context of surplus free cash flow generation, implied valuation levels and adherence to our 1 to 1.5x targeted leverage range. In the context of these guardrails in current market conditions, we intend to continue our accelerated buyback activity levels as illustrated during the last 2 months. We continue to explore prudent acquisitions with a continued focus on accretive opportunities that provide complementary products, markets, geographies and leadership in support of our strategic priorities and that can benefit from our platform to realize attractive growth. At this time, I'd like to turn the call back to the operator to allow for questions.

[Operator Instructions] Your first question comes from the line of Keith MacKey from RBC.

So the margin in the quarter was quite strong at 15.7%. Certainly, there were some obvious factors driving that revenue growth, et cetera. I also mentioned a onetime or nonrepeatable project in there. Tony, can you maybe just parse out the strength of that margin in the quarter? And what led margins to reach the 16.7% this Q2 when they're normally a little bit seasonally weaker?

Yes. For sure. We mentioned the onetime project from part of our business. It was in 1 of the Canadian divisions just because we provide that transparency in our financials in our MD&A in particular. When we look at what contributed to that 16.7% margin, that was definitely 1 component, but it wasn't the only one. When you combine that contribution, plus the fact that we had the Canadian dollar weakened quarter-over-quarter on average, and that was a bit of a bump. We had some specific product categories increase in value. And as a result of our standard cost accounting that leads to a debit of our inventory, credit of our cost of goods sold, so a little bit of a bump there. those were the sort of one-timers that would have otherwise had that margin be lower than the 16.7% probably somewhere squarely between the 16% to 16.5% range. But just stepping back, I think the more important takeaways are the facts that all of the divisions ended up with very high revenue levels, and importantly, they grew into the higher SG&A that they had been building over the last year to, for example, support the big RFP win at JACAM Catalyst. For example, to support the 150 rigs on average that AES had in Q2 versus 135 in Q1. So those 3 items that I described were sort of one-offs that would have got us back inside the range that we said, but the bigger takeaway here is that the company continues to fire on all cylinders, and we like to expect that we'd be living in the higher end of our 15.5% to 16.5% guidance level for EBITDA margin and potentially beyond as we go forward here.

Got it. Okay. Okay. That's helpful. So just curious, as a follow-up, like what's keeping you from raising that margin guidance. Like you've exceeded it. I think it's around 7 of the last 10 quarters, exceeded the top end of that range. It sounds like you're angle or anchoring towards a 16-plus percent margin now? Like what's keeping you from raising the top end of that margin range to the 17% or 17.5% range? .

Well, just avoiding misleading investors to expect something at a higher level when we're still not sure that we have a clear-cut path to it. And as Ken has described before, if if things were very steady eddy, we didn't have the ups and downs from a cost perspective and potential pricing perspective as we've experienced because of the Middle East of conflict. We've we'd be in a much better position to provide that guidance. We're just not there yet.

Yes. If you look back at our numbers, Keith, I'm sure you know, but when we were getting those steady 17s, it was during 2024 when the market was fairly stable for us. It was after all that shipping conflict in '22, '23 and before the Iran stuff earlier this year, which just allowed us to get everything dialed in when you have a steady market like that. But the latest conflict has us right back into the midst of shortages, shipping problems price is fluctuating all over the place based on tweets, like it's a very difficult environment to not only cost products, but to get some products. So I just want to say again, how proud I am of the teams. We have in procurement supply chain sales that have navigated us through this quarter because at the start of the quarter, I know I was guiding guys to some challenges that could come out of out of the all the things I just mentioned. And we were kind of thinking at the beginning of the quarter that it might be in the lower end of the 15.5% to 16.5%. But it was just through great work by everybody that we got higher.

You next question comes from the line of John Gibson from BMO Capital Markets.

Obviously, the margins were stronger this quarter. How do we think about them through the back half of the year, more specifically, just given some of the incremental costs in the business, it looks like you've been able to pass them through, but we see all on into potentially lower margins in Q3 and Q4.

I think you should expect more of the same and buy more of the same, we mean the higher end or the higher half of our 15.5% to 16.5% EBITDA margin target range.

Okay. Great. And just 1 more for me. You talked about time lines being months or years for some of these buckets you growth, but the growth you talked about, what would be your expectation that could potentially come first, whether it's a SAG to work the offshore production chemicals or U.S. onshore market share gains? .

Well, I think the U.S. market share onshore market share gains are the #1 thing that we're having every day success with. I mean that's happening on both sides of the border. But really a little more on the U.S. side. just really starting to get some momentum down there with that stuff and that stuff showing up in real time. The offshore stuff, it will be instead of telling you where we're at every like we're still on the 4 platforms instead of telling you that stuff every quarter. I'm just going to update when we have a win. We're still doing we've got more trials going there today than we had 3 months ago. And if something clicks, we'll definitely let people know and talk about it. And then heavy oil, same thing. We've got a couple of more trials going now. So we kind of got 3 big projects trialing. We picked up some of our work there. The pipeline is increasing, credibility seems to be accepted. And but they're long term, right? They do contribute to revenue a little bit as you go through the trials because you are adding a product or 2 most of the time through the trial period. It's just that the trials I've underestimated sort of how long they can run, and it looks like they can run a year or more as they slowly work towards completely ensuring they're not going to have a problem when they make the transition. But when we same thing on those when we get awarded, we'll make sure to let everybody know.

I could sneak 1 more. And apologies if I missed this, what would incremental margins be on the SAGD and U.S. offshore work relative to your sort of base business? .

Yes. We point to what's been said in the public before. If you go back to when Champion X was a stand-alone public company that used to talk about those margins being in the in the 20s in the 20% to 30% range. So definitely higher than our current corporate average.

Your next question comes from the line of Jonathan Goldman from Scotiabank.

Ken, thanks for going through the opportunity set. Again, I appreciate that. But if you take a step back of all the trials you're on and the projects you're looking at, is there any play a project that you're particularly excited about, whether the size of the opportunity or the timing of it coming to fruition?

Yes. I mean for sure, the clear #1 there is U.S. land production chemicals. I mean that's we're taking market every day. And we're looking at big opportunities today like we've got some not as big as that 1 big RFP we had we worked on last year and not requiring sort of the overhead weight that we put on the company last year as we prepared for that but we've got big chunks of business coming through all the time, and that business is hitting on all cylinders right now, and that's for sure, that's going to be the thing we see the growth in first and most steadily.

And the share gains in the production chemicals business, are you able to discuss at whose expense those are coming? Or what do you think is driving the incremental share there?

I mean there's been some changes in the market, right? And so everybody is taking has taken another look at what they're doing. And then there's just always the credibility. The bigger you get, the more you work for the bigger companies or even the smaller companies in some challenging areas, the more credibility you get, which gets you onto more bids and get you taken more seriously. So in Canada, we're about 1/3 of the conventional production CAM market. In the Permian, we think we're much higher percentage than the 21% we ranked at overall in North America. And so we I just don't see a reason we can't grow that business substantially from the already big size it is, and we're kind of proving that every day right now. And just to put some additional numbers behind that, Jonathan, and we update this in our investor presentation every quarter. We're over the years, we've tracked the quantitative aspects of what a lot of what Ken just described where when you look at the winners in this industry kind of in the U.S., there have been consolidators. And when you look at the way our company has performed from a technical and service-oriented perspective, we continue to work with those biggest and best companies. So as they grow, we grow. And if you look at how that's progressed, right now, as we stand, when you look at all of our revenue and you look at public information as a proxy, public company, customer information as a proxy to determine the sizes of companies that we generate our revenue from. If you were to extrapolate that, you would see that and this is in our investor deck, about 90% of our revenue. comes from companies that are sizable market cap equivalents of $10 billion to $900 billion. So these are the guys that are gaining share, and we're doing a good job supporting them. So our market share goes up accordingly. And I don't want to deemphasize the importance of heavy oil and offshore. When we get those wins, those will be very sticky work. There'll be good margin, and there'll be high volumes, so they'll have an immediate impact. But it's just the time lines on those things are pretty extended. We're making progress. We're working towards it. And someday, we're going to succeed there, hopefully, within the next year, but we'll just see how that goes. It's going really well so far. But the thing we can see, the thing we can look at every day and see the growth in is definitely U.S. land production chemicals.

Yes. And we can all see the growth as well. And I guess maybe 1 more for you. Tony or can whoever wants to take it. I appreciate you guys laying out the capital allocation priorities. Again, in terms of M&A, is there anything that you're missing in your portfolio, whether it's from a product perspective or region that you think you need to fill in there? Is there anything in the pipeline that you're looking at? Or do you feel that organic growth is probably the best avenue right now as well as the buyback and the annual dividend consideration. .

I'll start with that one. I mean, we say all the time we look at everything. We literally do look at everything we hear about or that gets sent to us. But we don't I don't believe we have a hole in our arsenal. We have evaluated a bunch of different businesses and opportunities. And even on the supply side, if there wasn't a company out there that we thought we could buy because they had some chemistry that we needed the ability to create ourselves we would just go do it ourselves organically, and that's kind of what we do, the small pieces that we pick up along the way. But today, we're kind of we have the full slate. There's really nothing that's burning a hole. So we're content to continue to buy our shares because at these levels, I believe that's the best thing we can do with our capital.

Yes. The other thing to reiterate that we've talked about before is if we were to find high-quality businesses to help us advance those 3 key strategic growth opportunities that we're already expanding into organically, we would take a very serious look at those, and that would be a strategic and b, anything that we look at that's reasonably sized, would have to have similar financial attributes that we do. high ROCE and good margin potential. And if we were to check the boxes on those and again reiterate if there is something that could advance our penetration of those markets that we're growing into organically, we would take a very serious look at those.

Got it. At the risk of sales broken record. Great work, again, guys, seeing the progress over the years.