Total Energy Services reports 8% revenue growth in Q3 2025 but faces EBITDA decline; strong Australian demand and backlog provide positive outlook.

Regina - Operator - (00:00:44)

Hello and thank you for standing by. My name is Regina and I will be your conference operator today. At this time I'd like to welcome everyone to the Total Energy Services third quarter 2025 results conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you'd like to ask a question during this time, simply press Star then the number one on your telephone keypad. To withdraw your question, press Star one again. I would now like to turn the conference over to Daniel Halleck, President and CEO. Please go ahead.

Daniel Halleck - President and CEO - (00:01:19)

Thank you. Good morning and welcome to Total Energy Services third quarter 2025 conference call. Present with me is Yulia Gorbach, Total's VP Finance and CFO. We will review with you Total's financial and operating highlights for the three months ended September 30, 2025 and then provide an outlook for our business and open up the phone lines for questions. Yulia, please go ahead.

Yulia Gorbach - VP Finance and CFO - (00:01:44)

Thank you. Dan during the course of this conference call, information may be provided containing forward looking information concerning Total's, projected operating results, anticipated capital expenditure trends and projected activity in oil and gas industry. Actual events or results may differ materially from those reflected in Total's forward looking statements due to a number of risks, uncertainties and other factors affecting Total's businesses and the oil and gas service industry in general. These risks, uncertainties and other factors are described under the heading Risk Factors and elsewhere in Total most recently filed Annual Information form and other documents filed with Canadian Provincial Securities Authority that are available to the public at www.cdraplus.ca. our discussions during this conference call are qualified with reference to the notes to the financial highlights contained in the news release issued yesterday. Unless otherwise indicated, all financial information in this conference call is presented in Canadian dollars. Total Energy's financial Results for the three months ended September 30, 2025 reflect improved Australian financial results following the deployment of upgraded equipment and continued strong North American demand for compression and process equipment. Offsetting these tailwinds was lower North American drilling and completion activity on a year over year basis. Consolidated third quarter revenue increased by 8%. Contributing to this increase was $15.2 million of increased CPS segment revenue, $6.2 million from well servicing and $1.6 million from RTS segments. Third quarter EBITDA decreased by $7.6 million as compared to 2024 due primarily to the relative increase in lower margin CPS annual servicing segment revenues due to consolidated revenue, a $1.8 million year over year, negative foreign exchange impact on CPS segment results and $1.5 million year over year increase in share based compensation due to increase in the market price of total energy shares. Geographically, 48% of third quarter revenue was generated in Canada, 27% in the United States and 25% in Australia as compared to the third quarter of 2024 when 49% of consolidated revenue was generated in Canada, 34% in the United States and 17% in Australia. By business segment, the compression and process services segment contributed 48% of third quarter consolidated revenue followed by the CDS segment at 32%, well servicing at 12% and the RTS segment at 8%. In comparison, for the third quarter of 2024 the compression and process services segment generated 46% of the third quarter consolidated revenue followed by CDS at 36%, well servicing at 10% and RTS segment at 8. Third quarter consolidated gross margin was 22% in 2025 which was 409 basis points lower than 2024. Contributing to this decline was a 417 basis point year over year increase in third quarter revenue contribution from CPS and well servicing segments as these business segments historically generate lower margins than the CDS and RTS segments. A year over year decline in North American drill in third quarter gross margin percentage in all business segments was partially offset by improved Australian results. Third quarter CDS segment revenue decreased 5% compared to 2024. The 33% year over year decline in third quarter in North American operating D was partially offset by a 32% increase in Australian days. Segment revenue per operating day increased 16% during the third quarter of 2025 due primarily to increased pricing on upgraded rigs in Australia. That was partially offset by change in equipment operating and competitive pricing in certain areas of Canadian market. Third quarter CDS segment EBITDA decreased by 3% compared to 2024 due to lower North American German CDS that was partially offset by high activity and pricing in Australia. TDS segment EBITDA margin during Q3 of 2025 was consistent with 2024 as the overall decrease in third quarter operating days was offset by higher pricing for upgraded rigs and cost management. RTS segment revenue for the third quarter increased 8% compared to 2024. This was a result of stable utilization and an increased US Rental fleet following the June acquisition combined with a higher revenue per utilized rental fees due to a change in mix of equipment operating, higher costs associated with the change in the mix of equipment operating and competitive market conditions that did not allow for the price increases necessary of debt. Cost inflation Resulted in a 7% year over year decrease in the third quarter RTS and 585 basis point decrease in segment EBITDA margin. Third quarter revenue in total CPS segment was 14% higher compared to 2024. Increased fabrication sales more than offset a 3% year over year decline in rental fleet utilization. Third quarter CPS segment EBITDA declined $4.2 million or 22% compared to 2024. $1.8 million of this decline was due to increase in cost of services resulting from a weakening Canadian dollar relative to the US Dollar. Also contributing to this decline was the commencement of certain low margin fabrication projects awarded in 2024 when industry conditions were weaker and cost inflation arising from tariff related supply chain challenges that were not fully passed on to the customers. The fabrication Sales backlog at September 30, 2025 was $380.8 million which is $76.9 million or 25% increase and it's higher compared to $303.9 million backlog at June 30, 2025. Inbound servicing a 5% increase in revenue per service hour combined with 19% increase in operating hours resulted in a 24% year over year increase in third quarter segment revenue. Increased Australian engineering activity was partially offset by a substantial decline in U.S. activity. Higher pricing and increased fleet utilization following the upgrade of several rigs over the past year Contributed to a 162% increase in third quarter Australian operating income. Offsetting this increase was a decline in North American operating income due to competitive pricing and substantially lower U.S. activity levels. Segment EBITDA for the third quarter of 2025 was 4% lower compared to 2024 due to lower pricing in Canada and substantially lower utilization in the US that was only partially offset by increased Australian utilization and pricing realized through the reactivated upgraded rig. From a consolidated perspective, Total Energy's financial position remains very strong. At September 30, 2025, Total Energy at $115.5 million of positive working capital including $57.1 million of cash. Bank debt left cash on hand was $32.9 million at September 30, 2025. Total Total Energy's bank covenants consist of maximum senior debt to a trillion 12 month bank defined EBITDA of three times and the minimum bank defined EBITDA to interest expense of three times. At September 30th the company's senior bank debt to bank ebitda ratio was 0.25 and the bank interest coverage ratio was 36.47 times.

Daniel Halleck - President and CEO - (00:11:10)

Thank you Yulia Total Energy Services' third quarter results demonstrate the resiliency of our diversified business model. Despite challenging North American drilling conditions and margin pressure in our CPS segment as they work through some lower margin legacy orders, Total continued to generate substantial free cash flow that was used to fund growth opportunities, pay dividends, buy back stock and reduce bank debt. Stable Australian industry conditions and specific customer needs have encouraged Total to invest substantial capital over the past year to upgrade and reactivate several drilling and service rigs under long term contracts. The upgrade of an idle drilling rig acquired as part of the Saxon acquisition in 2024 has just been completed and we expect such rig to commence drilling before the end of this month. This will bring our active Australian drilling rig count to 13, the highest ever. An Australian service rig is currently being upgraded and is expected to be completed as and commence operations by the second quarter of 2026. North American demand for compression equipment remains exceptionally strong and continues to be driven by significant infrastructure investment related to growing LNG export capacity and demand for natural gas fired power generation. The record fabrication sales backlog, which exceeded $380 million at September 30, provides visibility well into the second half of 2026, while the CPS segment works through some lower margin orders received in 2024 when market conditions were less favorable. Such projects are scheduled to be substantially completed by year end and the impact on those orders the impact of those orders on margins will cease. Steps taken to mitigate cost inflation and tariff uncertainty are also expected to improve CPS segment margins going forward. This includes commencements of the previously announced expansion of our US Fabrication capacity with plant construction expected to be completed by the first quarter of 2027. In Canada, the upgrade of a mechanical double drilling rig to a state of the art AC electric triple pad rig was completed in early November and such rig is currently drilling for a major Canadian producer in the Alberta Montney. This rig's unique design is expected to achieve significant operating efficiencies compared to conventional AC triples should its operational and financial performance meet expectations. We have identified several more idle rigs in our Canadian fleet that could be similarly upgraded should market conditions warrant. Although we remain sensitive to current market challenges and uncertainty, we will use our financial strength to pursue acceptable investment opportunities. Specifically, we continue to engage with our Australian customers in regards to future potential growth opportunities. We also continue to work to identify and evaluate North American acquisition opportunities with a view to gaining critical mass in our existing business segments as we enter the busy winter drilling season in the northern areas of North America. I would like to acknowledge the focus and dedication required of our employees to ensure our operations are conducted safely and efficiently in often extremely harsh weather conditions. I would now like to open up the phone lines for any questions.

OPERATOR - (00:15:07)

We will now begin the question and answer session. In order to ask a question, simply press star followed by the number one on your telephone keypad. Our first question will come from the line of Tim Monticello with ATB Capital Markets. Please go ahead.

Tim Monticello - Equity Analyst - (00:15:23)

Thanks very much. Just wondering about the Weirton expansion and just the way we should think about revenue cadence on your backlog. Are you capacity constrained currently and should we expect revenue out of CPS segment to be somewhat similar from a product sales perspective to what it's been over the last couple quarters as we go through 26 until that expansion is commissioned?

Daniel Halleck - President and CEO - (00:15:58)

So Tim, I would say in the US we're pretty much at capacity without some major, I would say outsourcing and labor changes, including additional shifts in Canada. We have the ability to ramp up more if we went to further and larger nighttime shifts. So, you know, there's a cost to doing that. So we're trying to balance, you know, the demand and putting, you know, orders through the shop with the incremental costs that would arise from adding additional night shifts, primarily in Canada. So certainly Weirton, when we have the expansion completed, obviously we're going to be ramping up our labor force in advance of that. And it'll take some time once the shop's completed to fully realize the efficiencies and gains that come with that, just primarily due to labor. But that'll certainly take a lot of pressure off of Canada and certainly increase our capacity materially in Weirton.

Tim Monticello - Equity Analyst - (00:17:24)

That's helpful. And then I joined the call a little bit late, but I'm sure you provided some commentary on the compression margins in the quarter. I'm just wondering if you can provide any additional commentary on, I guess how the pace of expansion given some one time items in Q3?

Daniel Halleck - President and CEO - (00:17:50)

Yeah, I think there's probably three components to the year over year margin compression and sequential quarter compression. First would be some fairly volatile FX movements. And again, you know, we have a pretty pragmatic approach to dealing with FX changes to lock in economics on orders, but that's never perfect. And when you have volatility, short term material swings that can impact and sometimes it's positive, sometimes negative. You know, year over year it was 1.8 million to the negative. That goes straight to cost of goods sold. The second component would be in 2024 we made, we took in some orders that were fairly low margin. You know, specifically there was one large order that we consciously bid aggressively for some strategic reasons I won't get into, part of which was flexibility on delivery dates and our ability to load level shop production. And that certainly helped our margins on other packages. And in hindsight, it was the right decision in the sense that, you know, the market turned significantly in early 2025 and if we wouldn't have preserved our labor force, we probably wouldn't be enjoying the success we have to date. So, you know, we're now working on those projects. They'll have a short term hit on our operating margins, but by the end of the year that'll be old news. And certainly given the significant improvement in market conditions, you know, beginning in early 2025, I would certainly hope our sales group there is bidding work at better margins because we're running pretty hot right now. And the final point I was going to make is there's cost inflation. It's been, as everyone knows, a pretty interesting and dynamic marketplace. Steel is obviously a big component of the inputs within the CPS segment. There was a lot of volatility and there's a timing difference between when an order is received, when the materials required for that order are procured and when that order is completed. And so it's a pretty dynamic environment. And like I said, we manage that pretty well, but no one can manage that perfectly. And I think Q3 was a bit of a perfect storm in terms of some lower margin project projects combined with a lot of volatility in the steel market. You know, thankfully that settled down. You know, compression packages are United States-Mexico-Canada Agreement (USMCA) compliant, so we haven't faced any issues on that front. But you know, there was some serious questions earlier in the year about, you know, whether there would be cross border issues. And candidly, one of the reasons we're expanding our US production is to get ahead of any potential changes to Canadian U.S. trade relations.

Tim Monticello - Equity Analyst - (00:21:22)

Okay, that's, that makes a lot of sense. And I mentioned, or I'm glad that you mentioned the, I guess the strength of the compression market. You know, you've been booking record order flow for, you know, the first three quarters of the year. Do you see that continuing in, in Q4, is there any leading indicators that would suggest any changes to.

Daniel Halleck - President and CEO - (00:21:57)

Date? We continue to see very strong demand.

Tim Monticello - Equity Analyst - (00:22:03)

Okay. And so when, like a booking displaced today, when would a customer expect delivery?

Daniel Halleck - President and CEO - (00:22:12)

Depends on the unit, but it depends how much they're willing to pay. You know, you want to get to the front of the line. There's ways to do that. You know, how do you allocate scarce resource price? You know, one of the challenges that we're facing right now, Tim, is, you know, some of the lead times for major inputs, notably CAT engines, are now well in excess of 90 weeks. And so we're effectively having to make decisions on inventory and supply of inputs based on what we think business will look like almost two years in advance. And so, you know, we've been there before. We've never seen quite the lead times we're seeing now. But I can tell you that's also a benefit to larger players. You know, to try and compete in this market without a balance sheet is very difficult. And you see it in our inventory levels are going up. And like I said, we're having to make investment decisions on inventory two years in advance, which again, I've never seen anything like that. And at some point the music will slow down or stop. It has before. We've been through that before. You'll have the working capital unwind. But so far we've seen no signs of that music slowing down.

Tim Monticello - Equity Analyst - (00:23:49)

Well, that's positive. And then I guess the other sort of notable change in the compression segment in Q3 was a meaningful uptick in your utilization of your rental fleet. Can you talk a little bit about what changed quarter over quarter and how you see that progressing as we go through the.

Daniel Halleck - President and CEO - (00:24:08)

We had noted that in our Q2 call that we had a subsequent to quarter end, a pretty significant Canadian rental contract for a bunch of our nomads. And it's interesting, the Nomads that went out on rent in Q3 are being used by a customer to provide temporary compression as they do a major plant turnaround. And so it's exactly the type of application that the Nomads are good for to come in and basically allow a plant to continue operating as the primary compression is rebuilt. So, you know, those things tend to come and go. What we're seeing, particularly in the US is and we've seen it before, and it kind of comes in cycles, but pretty aggressive pricing, I'd call it, by financial players in the rental market that basically are providing capital leases. We provide an operating lease in the sense we take residual risk. We also build for compression for a bunch of those companies, and so we're not inclined to compete with them. And frankly our cost of capital is likely higher, so we don't try. So that's put a little bit of pressure on the US Rental fleet. But again, for Short term, specific applications, that's where we're good at. Or where customers want the flexibility to keep the units off their balance sheet in terms of not being capital leases. Got it.

Tim Monticello - Equity Analyst - (00:25:54)

And then last one for me, can you just talk a little bit about the opportunity set that you're assessing currently? I know you don't have a 26 budget formalized yet, but just like some of the area growth opportunities.

Daniel Halleck - President and CEO - (00:26:14)

So certainly, you know, in Australia.

UNKNOWN - (00:26:19)

Our.

Daniel Halleck - President and CEO - (00:26:19)

Performance has been very good operationally and I think the quality of our equipment is causing continued interest in us reactivating and upgrading rigs. So, you know, we're certainly active in that market and discussions. I would say it's largely market share gains as opposed to a growing market. The overall market in Australia has been pretty stable. We haven't seen material changes there. I would say most of our, well, pretty much all of it has been market share gains as we displace other suppliers there. You know, within North America, there's select targeted opportunities to upgrade equipment. You know, I mentioned the triple that went straight to work as soon as it's done. It's in the Alberta Montney. That's a very special rig and we're watching it keenly, as I'm sure others are. And you know, if the business case exists, we won't hesitate to do further similar upgrades. And I think the other thing we're very interested in doing is gaining critical mass in our existing business segments in North America, particularly the U.S. we're going to be disciplined and focused so we're not going to force anything. But we were able to do a smaller deal in June on the rental side and we're open about our interest in growing our business down there and we continue to see opportunities and we'll evaluate and, and execute where it makes sense.

Tim Monticello - Equity Analyst - (00:28:13)

Okay, that's helpful. I'll turn it back. Thanks.

Daniel Halleck - President and CEO - (00:28:16)

Thanks, Tim.

OPERATOR - (00:28:18)

Again, for questions, simply press Star one. Our next question will come from the line of Joseph Schechter with Schechter Energy Research. Please go ahead.

Joseph Schechter - (00:28:27)

Good morning, Dan and Julia. Thanks for taking my questions. Going back to Australia, you've got 13 rigs out of your 17 working utilization rate, 55%. What is potentially maximum utilization? You know, we talk 70, 80% in Canada and the States. Depending upon what market you're in, is that the same kind of target utilization that you could get in that country?

Daniel Halleck - President and CEO - (00:28:53)

Yes, certainly. You know, we could certainly get there. Like I said, we don't see the market growing. It's going to be more market share gains. One of the big Challenges in Australia is labor. And so we've taken a fairly methodical approach to expanding our active rig count, in large part not wanting to strain our labor force and frankly put inexperienced people in bad positions. And I can tell you that's our concern globally. It's less of a concern obviously in North America, given a bit softer market conditions. But we've seen other companies take a more aggressive approach on expansion and it usually doesn't end well. And a lot of the problems arise from straining your labor force. So we're going to take a very methodical, controlled approach. And you've sort of seen it, Joseph, over the past year where, you know, it's been a rig at a time, we could certainly be more aggressive. Capital is not the issue. It's in our view, first of all, quality product. So trying to do too much at once is going to strain our supply chains. And number two, equally, if not more important, is ensuring we've got confident labor to staff the equipment.

Joseph Schechter - (00:30:33)

Of the four rigs that are left in Australia, are any of them being looked at by people so that you could upgrade those and put them to work in 2026?

Daniel Halleck - President and CEO - (00:30:44)

They're being looked at. I'm not going to comment on timelines. I think it depends. Again, Australia tends to be a very long term, they call them campaigns, unlike North America, while Canada is the worst, where we tend to be much more of a spot market mentality, where Australia, you know, when you commit a rig, it's for years. And so, you know, these upgrades we're doing are substantial and take several quarters to do, not weeks, you know. So I'm not going to comment on timing. I will say we are in active discussion. So on a number of fronts there.

Joseph Schechter - (00:31:27)

Okay, next one for me, compression margins, you know, this quarter 15 down from 22 a year ago. You mentioned that, you know, through a year end it's going to be in the lower numbers. Do you what's the kind of number that you could see in 2026? Are we going to get back into the 20s? And what would be peak kind of margins in your view for the CPS business?

Daniel Halleck - President and CEO - (00:31:50)

You know, I think we're learning a little bit as we go. You know, as we discussed earlier, we're starting to push the limits of our plant capacity. Obviously there's levers we can pull to increase that, but there's cost to doing so. We're also testing continuously the market on pricing. And again, so we're learning as much as anyone as we go into what's been a very strong Market. What I would say is Q3. We definitely, let me put it this way, I hope that's bottom and from everything I can see at this point, I expect it is. I would say we expect to revert back to margins we saw in the first half of the year and again that will occur over the course of Q4 into Q1. And certainly given the strong demand and strong backlog, you know, the projects we're bidding currently in have bid for the past, you know, several months. Quoted margins would be, you know, substantially in excess of the orders that were currently, you know, some of the orders we're working on in Q3 going into Q4.

Joseph Schechter - (00:33:15)

Okay, last one for me, you've done as you said, the RTS did a, you know, small tuck under acquisition. Are you preferring to do smaller deals and put them into place or into markets where you, you want to get bigger up in a certain market or are you looking, given your strong balance sheet, 57 million in cash, would you be looking at things of a bigger scale that would be kind of transactionally grow, growing the company faster and bigger? You know, what's your feeling on the M and A front? Smaller or looking at bigger deals?

Daniel Halleck - President and CEO - (00:33:51)

All of the above. You know, if we could do another Savannah acquisition were a game.

Joseph Schechter - (00:34:02)

Is there a lot of desperation by people, given the tough market, especially in the drilling side, that those would be the first opportunities that might come your way?

Daniel Halleck - President and CEO - (00:34:17)

I would say there's starting to be some alignment between value expectations and current public market valuations for energy service companies. I think. I would also say there's probably.

UNKNOWN - (00:34:39)

Some.

Daniel Halleck - President and CEO - (00:34:39)

Private companies that are getting tired. So, you know, I don't really want to speculate more than that. I would say the pipeline is busy, but it's got to work for our existing shareholders. And again, I use Savannah that we did in 2017 as a Prime example where that was an accretive deal, but it also was very beneficial post closing to Savannah shareholders that stayed along for the ride. So this really, at the end of the day, it's going to be shareholders of the Target that decide what they want. And you know, there's public and private and you can't force those things. But we're also not going to be stupid about it. Tried not to be stupid for 29 years and don't want to start being stupid now.

Joseph Schechter - (00:35:34)

Super. Okay. Thanks for answering all my questions. I much appreciate it. Thanks, Dan and Yulia.

Daniel Halleck - President and CEO - (00:35:39)

Thanks, Joseph.

Yulia Gorbach - VP Finance and CFO - (00:35:40)

Thank you, Joseph.

OPERATOR - (00:35:41)

And a final reminder, for questions, simply press Star one. Our next question comes from the line of Paul Sarekman with shareholder. Please go ahead.

Paul Sarekman - (00:35:51)

Hi, good morning, Paul. You've already touched on this with the questions asked by Tim and Joseph, but I was going to ask more high level in terms of the competitive landscape in various regions and why, you know, you think you're winning market share. It's a long game. You've got a clean balance sheet. You touched on that. You talked about the strong team members and employees you have driving the business. Oftentimes there's an inflection point where you sort of start winning a lot more business and your customers start listening more, engaging more and want to work with you more. Maybe you can comment on that sort of longer term thematic, maybe by region as to why you think Total has been winning and will likely continue to do so given the disciplined approach.

Daniel Halleck - President and CEO - (00:36:35)

Thank you. So good question, Paul. You know, first and foremost, when we accept business, we expect to execute that business at our high standards and we won't cut corners. You know, so if it's in the CPS segment, it means building quality equipment. You know, if it's on the drilling or well servicing a rental, it means providing good equipment with excellent service and safe, you know, people don't hire us to cause problems. What I would say is good operators appreciate that value. But we also have a balance sheet where we can say no if pricing is not acceptable because we're not going to lower our standards simply to get work. And you know, for people like you that have followed Total over the years, you will see us lose market share in more difficult parts of the cycle because our preference is to park our equipment rather than operate it at our standards and lose a bunch of money and end up having to recertify it and have generated no profit to pay for the recertification. I would say you've got a fairly significant portion of the market, operators that appreciate that and are willing to pay for quality and pay for predictability. And we're really seeing that, for example, in Australia and it's kind of timely. There was one of our, there was a recent catastrophic service rig event in Australia that I think really opened a lot of eyes in terms of what can go wrong. And it was brand new equipment. And so again, I'm not going to get into, I don't know all the details but you know, certainly those events can spook customers and they gravitate towards operators that have good track records. And I can tell you to have a good long term track record, you have to be profitable because you have to be able to reinvest in the business. And so I think fundamentally our discipline in terms of operations pricing serves us well in all markets. Definitely we'll lose some market share on the bottom half of the cycle. We're okay with that because we're in this for the long haul. Not just to say we've got the best rig utilization, you know, in a tough market. So I don't know if that answers your question, but yeah, no, that's helpful.

Paul Sarekman - (00:39:32)

I mean, you know, quarterly results can be, can fluctuate. Your model is fairly diversified by region and by vertical. So that's been very helpful. Perfectly clean balance sheet and everything you just touched on. I think, you know, everything seems to be moving in the right direction. But it's helpful to hear you reiterate some of the reasons why again, the customers are continually engaging with you and there's therefore no surprise. There's more opportunities ahead, it seems. So thank you for that.

Daniel Halleck - President and CEO - (00:40:00)

Yeah. And I look at our customer base in Australia or even Canada and the U.S. it's blue chip, but it's a wide range. It's private, public, small, large, you know, so I think it's got to work for both sides over the full cycle and good customers appreciate that. We have the same perspective with our suppliers. We don't expect them to work for nothing and it's not in our interest to see our supply chain condense down to one or two suppliers. That's not in our long term interest. So we will definitely support multiple suppliers in weaker parts of the cycle. It's in our interest to have competition for our business and I would assume our customers see it the same way.

Paul Sarekman - (00:40:59)

That's great, thank you.

Daniel Halleck - President and CEO - (00:41:01)

Thanks, Paul.

OPERATOR - (00:41:03)

And that will conclude our question and answer session. I'll turn the call back to Dan for any closing comments.

Daniel Halleck - President and CEO - (00:41:10)

Thank you everyone for joining us this morning and we look forward to speaking with you after we release our year end results in March. Have a good rest of your day.

OPERATOR - (00:41:21)

This does conclude our call today. Thank you all for joining. You may now disconnect.