L.B. Foster Company (FSTR) Earnings Call Transcript & Summary

Okay. Good morning, everyone, and thank you for your participation in the UBS Global Industrials and Transportation Conference this year. My name is Ryan Savoca, and I'm a director covering the global industries sector for UBS. We are very pleased today to have L.B. Foster the leading manufacturer and distributor of products and provider of services for the transportation and energy infrastructure markets. To speak with us today, I'm pleased to introduce Bob Bauer. President and CEO; and Bill Thalman, Senior Vice President and CFO. With that, I'll turn it over to Bob to walk through the presentation.

All right. Well, thank you, Ryan. We furnished a presentation that I hope you're looking at on your end in the audience, and we're going to use that to walk through our comments today. So I'm going to jump straight past the safe harbor statement that I'm sure everyone is familiar with. And we'll make this presentation today under our safe harbor provisions, and we will be talking about a number of non-GAAP related numbers as we do. So I'm going to start this off, and Bill Thalman is with me today. He's our Chief Financial Officer. He'll pick up the second half of the presentation. So to really begin, I'll be on the company overview chart, page four. If you're not familiar with us, we're a NASDAQ-listed company, headquartered in Pittsburgh. We were founded over 100 years ago. Our business is in North America, although we have locations outside of North America, predominantly in the U.K. and some areas in Western Europe, but we also serve Latin American and Asian markets to a lesser extent. Today, we'll talk through our 2 segments that we report by our Rail Technologies and services and our Infrastructure Solutions segment. And I'm going to do my best to focus on the more exciting areas where the growth is going to come from where most of our capital is being allocated to give you an idea of how the future of the company looks. When you look at our company highlights exhibit on 5, you'll see a number of items there that we'd like to highlight as why would you be interested in the L.B. Foster company. Well, first and foremost, it gives people exposure to infrastructure, largely transportation infrastructure, but also general infrastructure projects as well as energy infrastructure. We bring manufactured products, engineered, custom engineered solutions as well as services to a variety of different applications that I'll walk you through. The other thing that we often point to is the company's track record on operating cash flow and free cash flow, which is always a top priority from an operating performance standpoint. We're coming off of a year that certainly was a challenging year in 2020. But we feel like we've got some nice tailwinds. Our businesses largely have been resilient outside of the divisions that serve the energy sector. And we're going to show you quite a bit about how our backlog has changed over the course of the last year. That is fairly significant in terms of, I think, representing how the marketplace is changing and how our business is looking and expected to improve here throughout 2021. And so a little deeper dive on the business profile on Page 6. You can see the makeup of these 2 segments. They're almost equal, but our Rail Technologies and Services segment is the larger part of our business it serves both freight and transit rail applications. For many, many years, we have provided rail products that are the core part of the track infrastructure and then more recently, we have put our attention on rail technologies. And these are areas that now help our rail operators, both transit and freight, improve operating efficiency, safety, rider comfort and even bring automation to some of the systems that are needed that can help with performance of any rail transportation network. The Infrastructure Solutions piece, a little bit smaller than the rail piece, is a group of companies that bring a broad set of products and custom engineered solutions to help engineering construction companies and design-build firms actually put together systems that are in the transportation area as well as the general projects area. To give you a little bit better insight into what that really means. We've put 5 projects on our project highlight list on Page 7. And this is a better way to really think about what we do. We -- 1 of our core expertise is in managing big projects with project management, application engineering and unique solutions with logistics included for projects like on the left-hand side, 2 significant rail projects. One, for Class I companies hardening the infrastructure of their rail system networks where we make products that go right into the track. The second 1 being Crossrail, which is really complex systems for the London underground. Through expansion of 7 different stations in that part of the world, where we have provided systems integration and expertise around communications, access control, security, monitoring and passenger information systems and even connecting into the signaling systems. The middle one, the Dallas Area Rapid Transit project is an interesting 1 because it started as a significant rail project for a transit system. And then after we secured that piece, we got the precast concrete sound walls that went along with it. So this is a really good example of how the breadth in our product line for applications like this can help the company secure business that, in this case, has now gone upwards of $20 million in revenue for the projects -- for that project. And then just finishing it off, if you look at a pipeline application, we furnish measurement systems in corrosion protection for pipes that go in pipelines. We coded over 2.5 million feet of pipe on that midstream pipeline application and then the Newburgh-Beacon bridge job is an example of a significant bridge rehabilitation projects where we provide bridge decking for refurbing bridges. And these projects, typically, when we talk about the big ones, we're talking about projects that are upwards of $10 million in revenue, but some of these can be in the $15 million to $20 million in revenue. So looking at how is our market looking these days on our market outlook page, there's a couple of macro trends that I always point to when I talk about our business and the fact that it is very transportation infrastructure focused. What really drives it is global supply chains and the whole movement towards increased mobility. That applies both to freight because of supply chains as well as people. And then on top of that, you throw in congested cities and pollution and those sorts of things. And it really has, over the years, been driving demand for infrastructure that can just help keep people and products moving throughout the countries that we serve. So on top of that, you look at where we've come in the last year. Of course, transportation has had a tough time in the last year. But we are seeing a rebound to that. And the fact that there has been federal funding that has come through, particularly for public transit rail networks has really helped. So ridership is on the return. Funding is in place to help those projects continue to go forward. And we think -- well that business has been rather resilient through 2020. And now our outlook for it is for positive trends to continue. But we're also seeing freight rail volumes increase. We had some softening in our consumables businesses and it was a tough year for services as well because you couldn't get service people out on track. And we're still struggling with that a bit in Europe. So they're still -- we're still not back to normal, but we can see the light at the end of the tunnel. We're seeing improving volumes. We're seeing our consumables volume pick up. We're getting people back out on track and services, but there's more to come in that. But then, if you saw the bit of news on the American Society of Civil Engineers report card on Americas infrastructure there's still a lot of need for investment. Whether it's in bridges, storm water protection, levies. Of course, there's always highways and other transportation infrastructure, including rail. I think it all bodes well for us. The 1 part that still is very soft, is investment in pipeline infrastructure, where we have 2 midstream focused energy divisions. That provide the corrosion protection as well as measurement systems. They're still soft. We've been reporting on that regularly. We think the worst is behind us, but it's a little too early to tell whether that's the case. So that has been putting still a little bit of pressure on the business, and I'll speak a little bit more to that on another exhibit. But maybe just for this section on Page 9, I'll summarize just some of the legislation that has taken place, particularly in the U.S., there have been a number of bills that have been passed in just the last year, it started with the Great American Outdoors Act for infrastructure needed for national parks, and that's great for our precast concrete buildings business. But the last 2 bills related to COVID were important because they provided state funding support for a lot of infrastructure projects particularly for transit rail. And as we have examined that, it really puts transit rail in a good place for the next couple of years. And so that concern that we had during 2020, we feel, has been mitigated by the funding that has come through in the U.S. and other countries have taken similar measures. What's left is the American jobs plan or what is usually referred to as the infrastructure bill. It's a little too early to tell how well we will benefit from that. Usually, when something like this is done, it certainly gives us a bit of a boost. But of course, there's a lot of negotiation taking place on that right now. And while it's too early to tell what that's going to look like. I think any bill in that form is going to provide a bit of a tailwind for us. And so we expect to be talking about that more in the future. So just turning to our rail business at a glance. Earlier, I said it was fairly resilient in the last year, other than our consumables and service business. And the fact that Europe has still been kind of shut down here in the last quarter. So our quarter-over-quarter in the first quarter was down on sales. But 1 of the things that you see is the increasing backlog. And we have had, on a consolidated company basis, our backlog has increased for the last 3 quarters sequentially and is up at pretty high record levels, over $270 million. So our transit rail projects have continued. Capital spending for freight rail has continued. We continue to launch new products into the market. And we think we're in a good place when we're able to bring solutions that can help continue to improve efficiency for the railroads. And that's what's really about our growth plan going forward. When you look at our exhibit on the evolution toward rail technologies, and this is among our top priorities for where we are investing. An area that we think helps both -- certainly, the freight railroads, build the digital railroad of the future, but transit railroads as well. Bringing automation to some of that but new technologies are what we're exploring, for example, to launch new products for condition monitoring. And these are products and solutions that are helping us monitor what's going on in the rail network. Bring efficiency, lower operating cost, minimize disruption, minimize waste of going out to find out if there's a problem on track where we can bring intelligent information back to core operating centers where rail operators know more about what's actually happening. And we're also investing in our friction management line, a business we've been in now for more than a decade that is managing the wheel to rail interface. It's an exciting area that is providing some solutions to help manage 1 of the more difficult aspects of operating, especially a freight rail network, but also transit rail network. And we believe that our solution is unique and that it's even going to bring fuel savings to all of our operators. Turning to Infrastructure Solutions. This is really a tale of 2 stories. I usually like to say, because it's where our 2 energy divisions are, and we've had a tough energy market, but it's been offset by really strong businesses in precast concrete and fabricated steel. When you look at year-over-year where you see revenue that's been flat. That is largely because we have had such a weak energy business. Our nonenergy businesses in this section, revenue is up 39%. And even as you look at the backlog, which actually looks pretty healthy, up 17%, the non-energy divisions are up 40% year-over-year in the first quarter. So we have really seen a significant pickup in some of this activity. And it's, I think, very encouraging as it relates to broad infrastructure. So our strategies here on Page 13 are really all about expanding into adjacent markets. There is considerable room to access new markets to expand our served markets, especially in precast concrete and that's really where our attention is going to be. So as we look at deploying capital in the future for our business, we will now begin to look more at growth through acquisition. To make sure liquidity looks good for the company. We continue to pay down debt. But our attention now as the market improves, is to look more now at acquisitions. And our 2 primary areas are shown on Page 14. 1 is the rail technology space where we continue -- where we can continue to add the friction management, automation solutions or any technologies that can drive these improvements in efficiency and safety. And the other is in this precast concrete products, where we've demonstrated that we can get pretty good profitability out of this sector of our business. And it just has in a number of places where we can expand into to access a much larger market than we've been accessing so far. So I'm going to wrap up kind of with this last 2 pages here, 15 and 16 in terms of shareholder value, just to summarize a little bit about where the company is focused. Mean we have still a number of opportunities to grow organically. We spend about $8 million a year on capital spending and about half of that goes into driving organic growth. The other half in the maintenance and profit improvement. And through the organic growth and programs to drive cost reduction and profit improvement. We're trying to generate that cash that we can put into the business to invest in those rail technologies and pre-cast concrete and grow the business both organically and through acquisition. Now recently, we focused on debt reduction and in Bill's selection, you'll see a lot on how we've been able to reduce debt and have a pretty healthy balance sheet. But as we go forward, we want to deploy more of that cash towards acquisitions. So I've got a corporate responsibility exhibit in there. I'm not going to go through it, but we certainly like to always remind people that we do have our eye on this, particularly the environmental and social aspects of things. But rather than go through that, what I'd like to do is now pitch it over to Bill Thalman and let Bill take over and walk through the financial details of our presentation.

Thanks, Bob. Good morning, everyone, and thanks for joining us this morning during the UBS conference presentation for L.B. Foster. Just a brief comment on my participation. I joined the company back in March, just this year, and very excited to be here this morning. As Bob indicated, we have some significant opportunities in front of us, and I'm excited to share some of our financial achievements over the last several years as well as what we see as our opportunities going forward. So my opening comments are going to be reflected on Slide #18, and I'm going to share a little bit of history here in terms of our financial performance. So you can see over the most recent years, we've had some substantial progress growing our sales, adjusted EBITDA and our adjusted EPS. Of course, in 2020, as many companies were, we were impacted by the effects of the pandemic, which adversely impacted demand in nearly all of our markets, in some way, shape or form. Despite those challenges, though, in 2020, we were able to maintain our disciplined approach to paying down debt, deleveraging the balance sheet and improving our leverage ratios. In fact, we're very proud to say that in 2020, we were successful in generating over $11 million in free operating cash flow. Which allowed us to reduce our debt by about $6.5 million, and that's a net debt number, net of cash, despite the effects of the pandemic. So this conservative approach to our deployment of capital has continued into 2021, and that positions us very well to take -- take advantage of the opportunities that we see in today's improving market conditions. So I'll now turn over to Slide 19 and cover some brief comments on our Q1 results, which ended March 31. Our first quarter sales were just above $116 million. That was a $5.8 million decline or 4.8% versus last year. Both segments were down year-over-year, around mid-single digits. And as I indicated, nearly all of our markets were impacted by the pandemic in some way. So the decline is somewhat expected. The consolidated gross profit decreased by $4.3 million versus last year. And the 16.2% gross profit margin was a 280-basis-point decline year-over-year. It's important to highlight that the entire gross profit decline was driven entirely by the Infrastructure Solutions segment, with the gross margins down in that segment by $4.6 million or 850 basis points versus last year. And that highlights the impact that Bob spoke about in terms of weakness in the midstream energy market and how that's impacted our coatings and measurement business. While most segments of the business are showing signs of recovery, we continue to highlight the weakness in that midstream energy market as a significant headwind in 2021. Adjusted EBITDA totaled $2.7 million in the first quarter, which was a $2.1 million decrease versus last year. With the decline driven by the lower gross profit in our Infrastructure Solutions segment and then that was partially offset by lower SG&A expenses in line with our cost control measures. The operating cash flow performance was very strong during the quarter at $7.6 million, and this was a $12.5 million increase year-over-year in operating cash flow. Q1 is typically a quarter where we see a use of cash, and we were successful in generating positive cash in Q1. In addition, our order activity also showed year-over-year improvements, producing $136 million in new orders in the first quarter, and that drove a backlog up to $272 million at quarter end. So referring to Slide 20. I just want to spend a couple of minutes on cost control measures as well as our capital control approach. And during the pandemic, of course, we took significant steps to tighten our cost controls as demand levels were declining over that time frame. As the demand levels start to recover, we're in the process of ensuring that we're maintaining those cost controls in areas that will help us to lever our cost structure -- and leverage our cost structure and allow us to take advantage and extend the benefits of the cost measures we took during the pandemic. And while our SG&A percent of sales crept up a little bit in Q1 to 15.5%, that's largely due to the seasonally low revenue base that we have in Q1. We do expect to make progress in the future quarters as the year progresses. You also note that we have a capital-light business model with normalized capital expenditures in the neighborhood of $6 million to $8 million. This spending level includes both maintenance capital as well as spending for cost savings and growth projects. So while capital spending last year was a bit higher due to some special projects we had last year. We expect to return to that $6 million to $8 million per year range for the foreseeable future. Moving on to Slide 21. As previously mentioned, our focus on operating efficiently and modest capital spending needs has allowed us to generate free cash flow strength and volumes over the last several years. We generated operating cash flow on a trailing 12-month basis at around $33 million as of the end of March. Capital spending was just under $8 million in that same time frame. So therefore, we ended up with a $25.4 million free operating cash flow for the trailing 12 months ended March 31. The and based on our $17.90 per share stock price as of March 31, the implied free operating cash flow yield was 13.4%, which we believe is a very healthy level. I should note that in the second quarter, we're expecting to see an increase in our working capital needs due to the improvement in the commercial outlook that we're seeing in the business. And so that will adversely impact our free operating cash flow in the second quarter, but we expect that to be temporary just solely related to funding, improving commercial conditions in the market. So referring over to Slide 22. As I mentioned in the opening comments, the strong free cash flow generation has allowed us to delever the company over the past several years, and this is continuing into 2021. As of the end of March, our net debt was $31.8 million, and our adjusted net leverage ratio was 1.1 and you can see that, that's been a nice decline over the last 4 years that are reported there. Slide #23, speaks to our overall liquidity and funding availability. We have $77.6 million of available capital under our borrowing capacity under our revolving credit facility, and we also have an additional $5 million in cash available. So we've got total funding of about $82.6 million or had at the end of March. Our near-term capital allocation goals continue to be focused on reducing our indebtedness, funding working capital for growth, and evaluating smaller bolt-on acquisitions that are focused in our targeted inorganic growth areas of Rail Technologies and precast concrete. We also -- just to mention, we also expect to have a $9 million federal income tax refund in 2021 that will also help us in terms of reducing debt and providing cash for growth opportunities. And I'll remind everyone that as of the end of December, we had a $78 million federal net operating loss that will be available for carryforwards and will allow us to reduce our cash obligations for several years to come. Turning to Slide 24 and referring to our orders and backlog. Both business segments continued to build backlog with the consolidated book-to-bill ratio at 1.09 for the trailing 12 months ended March 31. Orders have outpaced revenue in 4 of the last 5 quarters. And order rates in April and may continue to show the strength that we experienced and reported on during the March quarter earnings call. So the expectation that we had provided related to the business continuing to perform well has played out since the end of the quarter. On Slide #25, I just want to highlight a couple of the new orders that were driving the growth on the left-hand side there. Bob mentioned a few of those during the new sources of growth section of his presentation. Overall, the backlog has grown to just shy of $272 million, which is up $35 million from March last year. Both segments have driven meaningful increases in their respective order books over this time period. And with the build most pronounced in Infrastructure Solutions, we're seeing that strength being played out by the fabricated bridge and precast concrete projects that you see listed there. The robust backlog, coupled with the strength in the orders that we experienced in the latter part of Q1 and continuing on to early Q2. Gives us confidence to expect a sequential increase in revenue of 20% or more from Q1 to Q2. We mentioned that during the earnings call for Q1, and we continue to believe that to be the case. So in summary, on Slide 26, Save for the pandemic effects in 2020. We've had very strong organic revenue and profitability growth over the last several years. While our results were impacted by the COVID-19 pandemic, the historical results demonstrate the earnings and cash-generating power of the company. We've demonstrated a high conversion rate of EBITDA and the operating cash flows over this time period, and our strong cash generation, coupled with the ample borrowing capacity under our credit facility, provides us with the financial flexibility and strong significant dry powder to take advantage of organic and inorganic opportunities available in today's growing markets. Thank you for your interest in L.B. Foster, and I'll now turn it back over to Bob for his closing remarks.

Thank you, Bill. Well, 1 of the things that I would like to say is we feel like it's a good time to be an infrastructure company. There's a lot of attention on it. The report card by the American Society of Civil Engineers in the U.S. did not give the U.S. infrastructure, a real good rating. Spending really needs to take place to get infrastructure in the U.S. up to where it needs to be. And I think that's true for some of the other markets that we serve as well outside of the U.S. So we have a positive outlook. As a result of that, we think rail transportation is really going to benefit as well because it's a much more efficient way to move goods throughout any economy or any market area. May even look to benefit from the Internet economy and moving brown boxes as opposed to just the traditional commodities that they move. So our outlook is good. Getting -- hitching our wagon to mobility, we think is still another long-term trend. And when you take that sort of a macroeconomic environment and the fact that our balance sheet is a lot stronger, our recent performance and growth has been good, and we've got the capital to invest in new technologies that can help our customers operate more efficiently. We feel pretty good about where the company is positioned. So with that, we'll bring a close to the presentation, and then we'll turn it back over to Ryan, and I think he's going to moderate some things for us in terms of any questions that anyone might have.

Bob, Bill, thank you for the presentation. Very informative. I think now we'll move into the Q&A session. [Operator Instructions]

I'm happy to start off here. Look, I think, the first question from my end would be around the rail technology space. And the product and the technology road map that you foresee. Do you think there are any gaps in the portfolio today, given the increase of digitalization in the rail space, et cetera, where you think -- where are you really investing time and capital in building out that product portfolio. And as you think about that portfolio, is it organic or is it inorganic, that's really going to drive that build?

Yes. Thank you, Ryan. I don't know that I would describe it as gaps in the portfolio as much as there are opportunities to fill some voids, which means markets that we're not currently serving. So for us today, the rail technologies area is about this condition monitoring and services surrounding that as well as automating certain aspects of rail applications and friction management. So there are opportunities for us to grow by expanding some of our served market with some products that we may not have today. And we have some exciting new products underway that are organic, for example, and making friction management more of a mobile solution than a maintenance of way fixed rail solution. So certainly, we've got a lot of organic growth programs underway with both of those. But we anticipate that there will also be some acquisition opportunities in those areas. But I would say that this is going to be focused more on us taking advantage of stepping into things that bring new and added solutions to what we have as opposed to thinking of them as gaps in our current product line.

Okay. That's helpful. Another one on the rail side. How do you foresee the services piece of that business continuing to evolve?

Well, today, the services piece is largely made up of 2 areas. We provide services on the rail network that are related to friction management and the deployment of all of these kinds of consumables that help minimize wear and tear on the rail network. And the second part of what we do is providing services in the form of systems integration expertise to bring together these systems like the telecommunication systems, access control, security, passenger information, those sorts of things that are more automation in transit rail applications. We think that those are the 2 areas that are going to evolve most. They will be organic programs but could also involve some acquisitions. But I do believe that we might even step into additional services in the maintenance of way beyond friction management and managing that wheel to rail interface. There's -- there are lots of service companies out there that do many things for the railroads to make sure that their track infrastructure is in good shape. And we, from time to time, we'll be examining those as service businesses that we could step into. That would be a natural extension of the service networks that we've already built.

Okay. Can you discuss what you are seeing in the U.K. transit business and Europe more broadly as reopening of the economies in Europe are expediting? And what's your outlook as far as new projects go in that geography?

Well, that has been an exciting area for us in the last 5 years. A little more than 5 years ago, we acquired an engineering business over in the U.K. that brought a lot of these new technologies to us. It helped us step in the railway automation in a much bigger way than we were previously positioned. Unfortunately, the company has -- the country, excuse me, has continued to struggle with the pandemic and has been kind of in and out of lockdown. And we're just now beginning to start to emerge from that. It was pretty much in lockdown through the first quarter, we did not have our service people out on some of these projects to the extent that we thought they would be. We are currently ramping up our headcount in -- among our service teams. We are slowly getting them back out on to track and onto project areas to complete some of the backlog that we have. Some of the reason for our backlog build is the fact that we haven't been able to convert these projects into sales. We haven't been able to complete them. So there is a significant amount of that in Europe. But it looks to us like, right now, we're kind of on the verge of some of the easing of these restrictions. And so we're beginning to ramp up our headcount again in that area. And we -- so we expect the second half of the year to have a significant improvement compared to the first half of the year in that part of the world for us.

Okay. That's helpful. And it sounds like some exciting developments on that side of the world. So we look forward to tracking those. Look, maybe this is a question for both you and Bill. On the commodity price side, obviously, we are in a rising price environment. Specifically on the concrete side and the steel side of commodities, how is that impacting the business today? And how is the team managing through and mitigating that risk.

Maybe I'll let Bill start with that.

Yes. Thanks, Bob. Yes. So obviously, it's a topic for our precast concrete business. We've been working with our suppliers to ensure that we've got the materials that are needed to do our jobs and fulfill the orders that we have with our customers. Thus far, we've been successful in proactively managing that at reasonable costs. But it's something that we're keeping an eye on very closely to make sure that it doesn't disrupt the supply chain. So far, we've been successful, and we're continuing to work that on a regular basis. And I think it's pretty widely known that there's a lot of companies that are managing that particular issue. On the steel side, we have good contracts in place. And with our suppliers, we're obviously watching the pricing very closely. There is a lag where we've got the ability to manage that cost impact or we have to manage that cost impact with that lag. There is pricing pass-through on many of our contracts. But for some of the spot business that we do, there's a lag there that we have to manage to make sure that we don't get caught. And in terms of absolute supply of rail or steel for our different portions of our business. At this point, that has not been an issue. It's -- again, similar to concrete, something that we're watching very, very closely. It hasn't impacted demand -- fulfillment at this point, but it's something that we're keeping an eye on, given what the -- you see happening in the marketplace today. Bob, is there anything you would add?

I don't think so. Yes, I think you've covered it. Maybe other than just to say that for many, many years, this company has managed steel price fluctuations. It's nothing new to us. And we usually can do a pretty good job maintaining our margin spreads in the businesses where that can have the greatest amount of impact.

Understood. Just a reminder, if there's any additional questions from the audience, please enter them into the queue, and we will address. We have a time for a couple more questions here. I think on the back of the commodity price question. I would ask a similar question with any supply chain constraints you're seeing. And if you're starting to see some of those constraints in Q2 and going into the second half of the year.

Well, one of them that we are seeing is certainly in the area of trucking. I'll maybe take that one on first. When you talk about supply chains, there's 2 things we need to have. We need raw materials that are coming in. And we need freight to get our products out to our customers. And there's clearly been some constraint in the area of trucking, availability of flatbed trucks, availability of drivers, just the general availability that has also caused some inflation in that area as well. And we work to pass that inflation onto our customers. But we ship a lot of heavy goods and having access to the over-the-road freight networks is important to us. So from time to time, it's causing us a little bit of heartburn to work around. It hasn't led to any material impact at this point in time where we still can't make these deliveries, but it's clearly a bit of a constraint out there. But our suppliers, especially the steel suppliers that we have in that. I mean, they currently have plenty of capacity. We don't source a whole lot from Asia and some parts of the world that have struggled more than others as it relates to still coming out of the pandemic issues that caused some of the plant shutdowns and follow-on supply chain problem. So in our manufacturing facilities, we're not struggling with too many issues like that. The one that's a little bit more pronounced than others would be the availability of some raw materials for concrete. But it feels like we're managing our way around that, and it's not causing us too much problem right now.

Good to hear. Well, Bob, Bill, thank you for your time. It looks like we're just about reaching the 9:45 a.m. mark here. But very much appreciate you taking the time participating in this year's conference. And thank you to everybody on the line. I'll hand it back to the moderator, unless there's anything else to say. I think we'll close out the presentation for today.

Well, thank you, Ryan. Appreciate you moderating it for us.

Yes. Thanks for the time today.