Good morning. Today is Wednesday, February 14th, 2024. Welcome to the Toromont Industries Ltd. 2023 4th Quarter and Full Year Results Conference Call. Please be advised that this call is being recorded, and all lines have been placed on mute to prevent any background noise. Your host for today will be Mr. John Doolittle, Executive Vice President and Chief Financial Officer. Please go ahead, Mr. Doolittle. Thank you. Thank you, Lara. Just double-checking that you can hear me okay. Yes, sir. You sound great. Okay. Fantastic. Good morning, everyone. Thank you very much for joining us today to discuss Toromont's results for the 4th quarter and the full year. Also on the call with me this morning is Michael McMillan, President and CEO. Mike and I will be referring to the presentation that is available on our website. And to start, I'd like to refer you to slide 2, which is highly entertaining and informational, and it includes the advisory on our forward-looking information and statements. After our prepared remarks, we will be more than happy to answer questions. So let's get started and move to slide 3. Please also note that our discussion today will be focused on continuing operations unless otherwise noted. Mike, over to you to start us off. Great. Thank you very much, John. And good morning, everyone. We're pleased with the good operating and financial performance which our teams delivered in the 4th quarter and throughout 2023, ending the year in a strong financial position. We continue to monitor supply and other market and economic variables. The Equipment Group continued to execute well, delivering against the opening order backlog in line with customer schedules and improvement in inventory flow, coupled with good growth in rental and product support activity, as well as continued focus on expense control. CIMCO revenue and bottom line improved for the year on good execution and higher product support activity. Across the organization, we continue to navigate through evolving economic conditions and remain committed to our operating disciplines, driving our aftermarket strategies and delivering customer solutions. 2023 has had its share of challenges. However, over the last couple of years, we've made some key organizational changes, which has enabled our team to manage well through post-pandemic challenges and a variety of economic dynamics we have not seen for some time. Our team has executed very well, and although there is always room to continuously improve, I'm proud of our team, how they are supporting our customers, and remain focused on building our business for the future. Turning now to our financial results highlighted on slide 4. I want to start off by noting that within the 4th quarter of 2022, many of you may recall that a Quebec property was sold, resulting in a pre-tax gain of approximately CAD 17.7 million, which was CAD 15.4 million after tax or approximately CAD 0.19 per share, where in Q4 of 2023 we had an after-tax gain of just over CAD 1 million for a property sale. This impacts the comparability of our results in both the quarter and year-to-date. Fourth quarter results demonstrated strong, focused execution from our teams. While operating income decreased 3% in the quarter, excluding property gains in both years, operating income increased 5%. Higher revenues were largely offset by lower gross margins. Higher revenue and good expense control drove positive results in the Equipment Group with strong year-end customer demand. Results at CIMCO were moderately down from the same period last year, with continued growth in product support activity levels partially offset by higher expenses and lower gross margins. For the full year of 2023, the company delivered strong bottom line results reflecting good execution on our opening backlog, customer demand for products and services, and favorable operating leverage. Higher revenue in both the Equipment Group and CIMCO, lower relative expenses, and higher interest income on cash balances were partially offset by lower gross margins. Rental and product support revenue increased on higher customer activity, utilization of the larger fleet, and improving execution. Year-end backlog was healthy and relatively unchanged for the year. Year-over-year, at CAD 1.2 billion, and reflects strong 2023 order activity. Equipment inflow through the supply chain continues to generally improve. On a consolidated basis, revenue increased 9% in the quarter and was up 12% for the year. Equipment and package sales increased in both the quarter and on a year-to-date basis, with good increases in both groups in the quarter. Product support and rental revenue increased in both the quarter and on a year-to-date basis. Product Support increased on stronger demand and technician availability, with work-in-process levels remaining relatively high, while rental revenue increased on a larger fleet and higher utilization. Operating income was down 3% in the quarter and up 14% year-to-date, reflecting the lower property gains in the quarter versus the comparative period and lower gross margins partially offset by higher year-to-date revenue. On a full-year basis, expense levels decreased to 11.7% of revenue. Expense management continues to be an area of focus and discipline. Net earnings from continuing operations decreased 3% in the quarter, again reflecting the property gain last year and increased 18% for the full year versus 2022. Basic earnings per share was CAD 1.87 in the quarter and CAD 6.43 for the year from continuing operations. General economic and macroeconomic factors appear to be stabilizing. However, factors such as inflation, higher interest rates, geopolitical instability, and the Canadian dollar movements continue to challenge the business as well as influence customer buying patterns. We are proud of our team as they remain committed to disciplined execution of our diverse operating model, adapting to changes in the business environment while remaining focused on executing solutions for our customers. Activity levels overall remain sound, with a healthy backlog which is supportive of near-term results. As noted in Q3, we've seen some softening in construction markets, which is reflective of the current economic environment. However, as one would expect, we will continue to monitor market activity levels while we follow our disciplined approach delivering results for our customers, suppliers, and employees. Additional efforts continue to focus on managing our discretionary spend and actively recruiting technicians to effectively support our critical aftermarket service strategies and value-added product offering over the long term. With our solid order backlog and balance sheet, we are well-positioned as we enter 2024 and will continue to support the business through thoughtful capital deployment. John, I'll turn it back over to you for some more detailed comments on the group results. Very good. Thank you, Mike. Let's start with the Equipment Group on slide 5. Revenue was up 9% in the quarter and 12% year-to-date. Taken together, total new and used equipment sales were up 15% in both the quarter and the year. This growth reflects inflow and delivery of equipment against the order backlog, coupled with end customer demand. New equipment sales increased 19% on the quarter on good deliveries in the construction, mining, and power system markets, while material handling markets were lower. Year-to-date, new equipment sales increased 20% across all market segments and regions as the supply of equipment improved. Used equipment sales decreased 7% in the quarter and 4% year-to-date. Used equipment sales from trades and purchases have been lower in the current year as supply and demand dynamics have shifted. Used equipment sales also include rental fleet dispositions, which have increased in the current year after a period of constraint, reflecting fleet management decisions as well as the availability and cost of new equipment. In the quarter, total new and used equipment sales increased 15% in construction, 13% in mining, 22% in power systems, and were 8% lower in material handling. Rental revenue was up 7% in the quarter, 8% for the year, reflecting higher market activity, strong execution, and an expanded heavy and light equipment fleet. Growth was experienced in most areas for the year with the following increases: light equipment rentals up 7%, heavy equipment rentals up 11%, power rentals up 12%, and material handling up 3%. Rental fleet was at CAD 81.1 million versus CAD 44.7 million a year ago and is starting to return to more typical levels. Product support revenue grew 4% in the quarter and 10% in the year, with increases in both parts and service revenue across all markets and most regions. Looking at specific markets for the year, growth was as follows: construction up 7%, mining up 13%, power systems up 17%, and material handling up 8%. Gross profit margins decreased 150 basis points in the quarter and 50 basis points in the year compared to 2022. Equipment margins were lower in both the quarter and the year, mainly reflecting competitive market conditions after a period of constrained supply, coupled with unfavorable sales mix, higher proportion of new versus used equipment. Product support margins were slightly lower in the quarter but higher for the year compared to 2022. We continue to focus on operational efficiencies. Rental gross margins were higher in the quarter, however lower for the full year compared to 2022. Rental utilization is improving after a large upload to the fleet earlier in the year. Rental margins are somewhat challenged by higher recent acquisition costs, in part due to a weaker Canadian dollar and higher maintenance and repair costs. Sales mix was unfavorable in both periods, with a higher proportion of equipment sales to total revenue. Selling and administrative expenses were up 15% in the quarter and 8% for the year. Gains on property dispositions reduced expenses by CAD 1.5 million in the 4th quarter of 2023 and CAD 17.7 million in the 4th quarter of 2022. Excluding these gains, expenses decreased CAD 2.5 million or 3% in the quarter, reflecting good focus on cost controls. Compensation costs were largely unchanged, with good cost control focus offsetting costs in support of higher activity levels and inflationary pressures. Allowance for doubtful accounts decreased CAD 1.7 million in the quarter and CAD 7.3 million on a full-year basis, reflecting good collection activity and improved aging of receivables. Selling and administrative expenses were lower at 11.3% as a percentage of revenue versus 11.8% last year. Operating income decreased 2% for the quarter and increased 12% year-to-date. For the quarter, the decrease mainly reflects the larger property gain in the prior year, along with the lower gross margins in the current period. For the year, the increase reflects the higher revenue and lower expenses offset by the lower gross margins. Bookings increased 53% in the quarter and 14% year-to-date. Customer demand improved late in the quarter, mainly in the construction sector, which was up 94%, which had been slower throughout the year. Power systems and mining bookings were also up 32% and 14% respectively, while material handling was down 12%. For the full year, bookings were as follows: mining was up 66%, power 23%, and construction 1%, partially offset by lower material handling bookings, which were down 21%. Backlog of CAD 957 million was 7% lower than last year, reflecting improving equipment delivery from manufacturers as well as planned deliveries against customer orders. Approximately 90% of the backlog is expected to be delivered in 2024 but, of course, subject to timing differences. It's depending upon vendor supply, customer activity, and delivery schedules. Now to slide 6 in CIMCO, revenue was up 2% in the quarter and 13% on a full-year basis, with the progress on construction schedules against strong order backlog and good customer demand. Package revenue decreased 8% in the quarter as equipment supply issues and customer delays have deferred some projects into 2024. Recreational revenues were up 25% but were more than offset by lower industrial revenues, down 25% against a strong comparative. In Canada, revenue is down, with stronger recreational activity being offset by weaker industrial activity. In the U.S., package sales were also down, mainly on lower recreational activity. For the year, package revenues were up 8% with increases in both markets. Industrial market revenue was up, with higher activity in the U.S. offset by lower revenue in Canada. Recreational market revenue increased as higher revenue in Canada was offset by lower revenue in the U.S. Product support revenue improved 14% in the quarter and 18% for the year, with increases in both Canada and the U.S. Activity levels have continued to improve on good customer demand and the increased technician base. Margins were down 100% in the quarter, sorry, 100 basis points in the quarter versus a comparable period last year, as lower product support margins were only partially offset by higher package margins and a favorable sales mix. On a year-to-date basis, gross profit margins increased 220 basis points versus last year. Good project execution and the nature of projects in process, along with favorable sales mix, all contributed to the increase in margins. Selling and administrative expenses were up 9% in the quarter and 11% in the year. Bad debt expenses decreased CAD 0.7 million in the quarter and increased CAD 2 million for the year. Overall, we remain focused on collection activity and monitor closely our aged receivables. Compensation costs increased due to an increased headcount, annual salary increases, and higher profit-sharing accruals with a higher earnings level. Other expenditures, such as travel and training expenses, increased to support activity and staffing levels. As a percentage of revenue, selling and administrative expenses improved 16% in 2023 versus 16.3% in 2022, reflecting continued focus on expense control. Operating income decreased CAD 1.7 million for the quarter as a higher revenue is dampened by lower gross margins and a higher SG&A. Operating income increased 49% for the year, reflecting improved gross margins and higher revenue. Bookings increased 24% on the quarter on higher orders in Canada and lower orders in the US. Timing of decisions by customers and receipt of orders can vary from period to period On a full-year basis, bookings were up 19% at CAD 246 million, with a 35% increase in Canada and an 18% decrease in the US. Industrial bookings were up 58%, and recreational orders down 30%. Backlog of CAD 255 million was 29% higher versus last year, with an increase in the industrial market on good order intake, partially offset by a decrease in the recreational market. Approximately 85% of all the backlog is expected to be realized as revenue in 2024. However, again, this is subject to construction schedules and potential changes from supply chain constraints. On slide 7, I'd like to touch on a few key financial highlights. Investment in non-cash working capital increased 20% versus a year ago, mainly driven by higher inventory levels. Inventory levels are higher than the prior year, driven by a number of factors, including a strong backlog, delivery timing, variability in the supply chain for both equipment and parts, coupled with foreign exchange and inflation. Accounts receivable continue to receive focus, and while DSO remained flat at 42 days compared to the prior year, we are closely managing the aging of our receivables and credit metrics. We ended the year with ample liquidity, including cash of over CAD 1 billion and additional CAD 460 million available to us under existing credit facilities. Our net debt to total cap was negative 17%. Under our NCIB program, the company purchased and canceled 353,000 common shares for CAD 37.5 million to date for the year. These purchases are reflective of good capital hygiene intended to help mitigate option exercise dilution. Overall, our balance sheet remains well-positioned to support operational needs, and we're prepared to manage challenges related to economic variables and business conditions. We will continue to exercise the operational and financial discipline as we evaluate investment opportunities that may develop over time. As you know, Toromont targets a return on equity of 18% over a business cycle. Return on equity decreased to 22.8% compared to 23.3% for 2022, while our five-year average is 20.8%. Return on capital employed was 30.1%, down from 32.1% last year. Both metrics decreased year-over-year, reflecting higher investments in working capital. And finally, it was announced yesterday, the board of directors increased the quarterly dividend by 11.6% to CAD 0.48 per share. Toromont has paid dividends every year since 1968, and this is the 35th consecutive year of dividend increases. We continue to be proud of this track record and our disciplined approach to capital allocation. On slide 8, we conclude with some takeaways as we look forward to 2024. We expect the business environment to be influenced by a number of factors that are in play, some of which include the evolving dynamics of global supply chain, improving availability, inflationary and macroeconomic trends, and managing customer credit risk, along with growth opportunities, all of which can overshadow normal seasonality and customer buying patterns. We continue to proactively monitor developments closely and take actions that we believe are appropriate. As one would expect, we consistently focus on key priority areas, including safe operational execution, serving and supporting our customer requirements, and our disciplined approach to capital allocation as we focus on building the business for the long term. Our backlog remains well-positioned, however, as you know, care must be taken to monitor customer buying patterns and preferences. In terms of technician hiring, we continue to actively recruit, and this remains an essential focus to support growth in our aftermarket and value-added product service offerings. Operationally and financially, we are well-positioned with ample liquidity and strong leadership, disciplined culture, and focused operating models. Do you want to finish the yeah? We appreciate our entire team's exceptional effort and commitment to continue to support our customers and deliver value for our stakeholders. Thanks also to our valued customers, supply partners, and shareholders for their continued support. And so that concludes our prepared remarks. And operator, if we could turn it back over to you, and we're all set to take questions. Lara. Thank you, sir. Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press star followed by the number one on your touch-tone phone. You will hear a three-tone prompt acknowledging your request. Should you wish to decline from the polling process, please press star followed by the number two. If you are using a speakerphone, please lift your handset before pressing any key. We have our first question coming from the line of Cherilyn Radbourne from TD Cowen. Please go ahead. Thank you very much and good morning. Good morning, Cherilyn. Good morning, Cherilyn. As you've noted, you've seen some softness in construction, and yet your Q4 bookings were quite strong, in part due to late quarter strength in construction. So I'm curious what you make of that. Do you attribute that to a late-year budget flush or other factors? Yeah, no, thanks for the question, Cherilyn. I think a couple of things I would say is, as we've been talking about, you know, first of all, I'd say, you know, availability of equipment and inflow for certain models has improved a fair bit. And I think, you know, I think also it's not unusual, as you know, for us to see a little bit of a year-end buy, depending on, you know, where customers are positioned and so forth. And so, you know, I think we want to be cautious on that. Well, the third thing I'd mention is the team just did a tremendous job working with our customers and moving products through our supply chain and getting them ready for distribution. And so, you know, it was a considerable effort. And so, you know, it's a number of factors, I would say. Again, we, you know, when we look at the construction markets, you know, we would position it conservatively, just given the activity levels. Again, you know, I don't think a month makes a trend, but we, you know, I would say it was a great finish. But, you know, again, we have to monitor things as we go into the first quarter here and be mindful of the activity that we see in front of us. Okay. And then I was hoping you could give us some color on the strength that you're seeing in power systems specifically and the extent to which engine supply is a constraint on that activity, if at all. Yeah, it's a good question. You know, I think, on one hand, I would say the team has done a really nice job. There's been a number of changes with some leadership, and the team has executed really well in the past year. So, you know, a lot of focus on that business over the last little while. We had a couple of nice projects come through, which we're working through for, you know, backup power and standby and peak shaving and so forth. So those were in progress. But to your to your second part of your question, I think, is important in that, you know, I would say when we look at availability of equipment, one of the one of the areas that, you know, certain models are constrained in still or have longer lead times, put it that way, would be on some of the large bore engines and areas like that. And so, you know, again, if you look at our order backlog, you can see that, you know, power makes up a fairly significant portion of the Equipment Group's order backlog, right? And so that's promising as well, but lead times are still relatively extended, so. That's my cue. Thank you. Great. Thank you, Cherilyn. We have our next question coming from the line of Yuri Lynk from Canaccord Genuity. Please go ahead. Hey, good morning, guys. Hey, good morning. Good morning. Just on your SG&A, excluding the gain on the real estate, that was a really good quarter. I mean, that's the lowest ratio to revenue on SG&A that I think I've ever seen out of the company. Was there anything unusual in the SG&A, whether it be LTIP expense or anything that would have explained such a really low ratio relative to revenue? No, there was nothing unusual there. I would just say, you know, having been here for, you know, over three months now, the company is very focused on managing costs, and that continued in the fourth quarter. And that's what you see in the results. Yeah, and you mentioned, Yuri, just in terms of the ratio to revenue, again, strong revenue numbers, right? And so beyond the discipline, which John mentioned, I think, you know, that's a factor as well, right, when you see had a quite strong quarter. And so that certainly blends down the ratio. Okay. Good. Nice to see. For my second one, maybe just some clarity. I mean, it sounds like we're getting back to typical seasonality where Q1 would normally be the weakest quarter of the year. But then I look at your inventory levels and your WIP levels, and I do see the opportunity for another unusually strong first quarter. So how do I square that? Where are we in terms of getting back to a typical seasonal year? Yeah, it's a good question. I would still say that we're seeing the effects of some of the macroeconomic factors we continue to reference there. And you can't get away from normal seasonality and weather patterns here in Canada. Although it's been a little warmer and that sort of thing. But, you know, I think, you know, we are encouraged, I guess you'd say, in a sense, just in terms of the flow and the availability. Some constrained units still exist in the supply chain, which we'll continue to work through. But I would, you know, I think, just broadly, when you think of the marketplace, you know, we've mentioned construction's a little bit softer. Now, it's we've come through several years of pretty robust activity, so comparatively speaking. When you look at our other parts of the business, I think one of the benefits we have in the mining side, for example, is, you know, longer duration, longer-term order books and so forth and working with customers and continuing to work on that side of the business. And so that, you know, has its own unique cycle, as well. So that's been a benefit to us as we look back and as we complete some of the orders in the backlog as well. Okay. Another nice quarter, guys. I'll turn it over. Great. Thank you. Thank you, Yuri. Thank you. Our next question comes from the line of Jacob Bout from CIBC. Please go ahead. Hi, good morning, Mike and John. This is, Rahul on for Jacob. Great. Good morning, Rahul. Good morning, Rahul. Morning. Morning. So I had a question on margins. Noticed that the mix of mining equipment in backlog is higher this year, but, you know, suspect that product support and rental may be a bigger part of the mix this year as well. So lots of moving parts, as always, but just curious to get your thoughts on how you see overall margins evolving this year. Yeah, no, no, thanks for the question. Maybe I'll start with that, and John can add color. You know, I think, again, we would always direct you to the factors affecting margin. You look at our margin over the course of the year and because we provide you with a blended number and you mentioned mining. Again, we've had in our backlog over the course of all of last year and probably back into 2022, some nice order bookings in the mining side of the business. Now, they have longer duration, you know, to fulfill those orders and so forth, and they can be a little bit lumpy. But when you look at the order book today, you know, we've got in the backlog, for example, mining's about 38%, I think, and construction's 25%-30%. So, you know, generally, you're going to see different profiles there. I think when it comes to margin, though, and you think through it, you know, one of the things we've been talking about is a little bit of softness and, you know, better availability for everybody in the industry. And so, you know, we anticipate a little bit coming off a little bit of some of the historic high margins in certain segments. But, you know, offsetting that, you also need to think about, as you mentioned, the mining side. Used equipment is a little bit more targeted coming off some stronger numbers as well, especially with availability on new. But also on the rental side, for example, when we look at rental activity levels, utilization have been holding in nicely, even with higher acquisition costs. And product support mix, as you touched on, I think, is the other factor to keep in mind. The mix of product support, you know, will also affect our gross profit in terms of, you know, that ratio to total revenue. So keep that in mind, too, as we go through quarters. Again, one quarter, we always tend to look at it longer term because some of, you know, there can be some lumpiness when you think of even on the CIMCO side, mining side, and so forth. Great. Thank you. And then on the rental side, so high single-digit growth in 2023 following a couple of years of pretty strong investment into expanding the fleet now. Do you expect this sort of growth rate to continue this year, and what sort of investment are you planning into the rental fleet this year? Yeah, a couple of things there. I would say, you know, you're right. We have come off a couple of years with availability of higher investment. And so when you look at our disclosure around CapEx, you'll see two things, actually. You'll see higher investment this year, and you'll also start to see a higher level of disposal, which is, you know, used. You'll see some rollouts, and we do disclose rental proceeds and so forth from disposals. And so you'll see that ticking up a little bit as we turn over the older fleet and replace it with new at a higher acquisition cost. You know, I think again, we don't provide a lot of guidance, certainly, but, you know, I think John would concur. As we look at our investment profile, the rental business on its own, the Quebec and Maritimes market, which we're still investing in and building market share there and our presence in particular in that market. But we're always looking at different opportunities and different product lines to complement our allied fleet. And so, you know, we would say that, generally speaking, what you're seeing in the financials for 2023, we would be pretty consistent for the next year or two. Yeah, I agree. Okay. Very helpful. We'll leave it there. Thank you. Thank you. Thank you. We have our next question from the line of Michael Doumet from Scotiabank. Please go ahead. Great. Hey, good morning, Mike and John. Hey, morning, Michael. Morning. So to follow up on Yuri's SG&A question, you know, strong cost containment in the quarter in the year and really, I'd say, in the last couple of years. Maybe the question is, can you call out, you know, if there's been any specific initiatives, you know, that the company's undertaken to help drive that, and how we should think about, you know, the potential for more operating leverage going forward? Yeah, a couple of thoughts there to share with you, Mike. I mean, number one, as you know, we tend to manage our cost structure very consistently through the cycle. And so, you know, I would say a couple of things. We own about 86% of our real estate. And so when you look at our cost structure, it's relatively fixed in that sense. And so you don't see our numbers moving due to moving in and out of leased properties. We like to own our properties. So that's fixed. Our occupancy and maintenance costs are pretty fixed. I think what you also see in there is intentional hiring and so forth. So when we're adding to our team, we're looking at the long-term requirements and not over- or underreacting. So, you know, that's a pretty consistent approach as well. I think the discretionary spend areas, when you look at travel and entertainment and so forth, we've learned, as we've always said, quite a bit through the pandemic. We are very actively going out and meeting with customers. However, we're trying to leverage what we've learned using, you know, different means, like electronically, to touch customers and just trying to meet customers and how they prefer to interact. And so, you know, that's helped us as well balance a little bit of the spend, even with inflationary factors when you consider travel and fuel and so forth. And so, you know, I wouldn't say there's anything in particular. You should just expect us to continue to aggressively manage our discretionary spend but also make sure that we're providing the appropriate support. Got it. Helpful color and obviously really impressive. Maybe moving over to the part sales, that moderated, in terms of pace of growth versus the last couple of quarters. I presume, you know, much of the slowdown relates to the tougher comps and maybe some of the price increases we got in 2022. I guess the question is, did you get a sense at all that your customers may be destocking somewhat on parts, given, you know, they're also probably adjusting to the better supply chains as well and, you know, anything we should consider going forward? Yeah, I think you hit a couple of interesting items there, Michael. I would say it's hard to gauge when you think of customers destocking. Like, I guess, you know, what we did see early in the pandemic is in some areas, it's like the tape the toilet paper anomaly where everybody's just trying to protect their business and stock up where they think they need to. And so with availability, we certainly have seen some of that activity. Again, it's not something of great visibility to, but as we have monitored our parts flow, we start to see the requirements normalizing to a certain degree. And so I think that'll ebb and flow a little bit. There's more confidence in the supply chain and gone are the days, I think, at this point where, you know, we're scrambling for even just filters and other things. So that should it. I would say we saw a few bumps last year just as the supply chain improved and, you know, the parts volume ebbed and flowed. I think the other piece, though, really importantly, is when you look at like, we've talked a little bit about construction activity, you know, and so as that's moderated and you mentioned coming off some pretty active and tough comps, you know, I think that'll start to show some normalization on the product support side as well. Makes a ton of sense. Thanks, Mike. Thanks, Michael. Our next question is from the line of Steve Hansen from Raymond James. Please go ahead. Oh, yes. Good morning, guys. Thanks for the time. Just a quick one to follow up on Cherilyn's earlier question. You described the construction activity picking up late into the period. Has that been something that's continued into January and February? So we don't, as you know, Steve, we don't comment on guidance or, you know, current quarter until it comes out. You know, and I would say it's again, it's early to tell. You know, I would say it's more a function of availability, some year-end activity by our team, as we mentioned, you know, doing a tremendous job closing out the year and also just our customers evaluating, you know, their own financial situation, looking at what they need to have for equipment and their year-end planning process, right? Yeah, I would just add, like, Steve, I think we talked about this on the third-quarter call. Mike and I are watching this very, very carefully every week, because, you know, to monitor whether there's a trend there. And, you know, we'll continue to do that. And Mike said we're not going to provide, you know, guidance on the quarter, but we're watching it very carefully, like everybody is. So thank you for the question. Appreciate that. And just one quick follow-up is just around the rental market. I think, the activity increased in the quarter, which is good to see, but you did note that heavy equipment rentals and material handling were both down notably in the period. Is there anything to read into that as being a continued trend, or is it just something that you're seeing as a one-off in the quarter? Yeah, I think it's probably more of a quarterly phenomenon. I think, again, you know, a little bit less activity in construction. However, we are seeing some good results in other areas. You know, I think the other thing to keep in mind is just the broader economic factors. You know, when you think of interest rates, inflation, timing of projects, customers are going to rent, depending on the seasonality as well. You know, we've seen, for example, we're all aware of the weather patterns and things like that. And so, you know, as you can imagine, we're not renting a lot of heating. Maybe this week and going into next, we'll start to see more of that. But heating propane would be a little bit lower. Having said that, well, you know, the ground is a little easier to work with, and so there'll be other opportunities there, too. So it's really a function of, I'd say, the broader macro piece but also, you know, what we're seeing here in terms of weather patterns and just generally activity levels, you know, in construction as everybody monitors, you know, the economic factors, interest rates, and so forth. Appreciate it, team. Thanks. Thank you. Thanks, Steve. Our next question is from the line of Sabahat Khan from RBC Capital Markets. Please go ahead. Great. Thanks, [team]. Good morning. I guess just one, you know, you talked quite a bit of color buying market, but I was just wondering if you'd dig a little bit deeper into some of the commentary around the construction markets. I think at some point last year, you know, I think you commented about the housing market moderating. Can you maybe just talk a little bit about regions and across some of the subsegments within construction, what you're seeing there, whether it's on the demand front or just the outlook? Yeah, thanks. Thanks, Sabahat. I think, you know, broadly, if you step back, I would say, you know, on one hand, where you have a pretty diversified customer base, right, we're blessed with the GTA, Montreal's major markets, and, you know, across the entire space, whether it's road construction, residential, sewer water, a number of areas, aggregates, and support. So, you know, on one hand, you know, one of the things we've mentioned in the past is, we did see, and everybody's aware of, some of the residential activity has sort of tapered off a wee bit. Having said that, you know, in some of the markets we serve, immigration policy, say, in Ontario and different things, has been pretty strong. I think, you know, affordable housing the lack of affordable housing does mean over the long term that, you know, one would anticipate there's going to be some good investment there because that's a challenge that we all face. So, you know, our customers are there to provide infrastructure in behind some of those opportunities. But, you know, again, you know, as we look, we tend to look at that as a longer-term tailwind. And so, you know, maybe those are just some thoughts to plant. I think at this point, we're coming off some pretty strong activities and comps. And I think, you know, patiently, we're investing for that longer-term view. Great. And then, you know, just on the product support side, I guess, you know, particularly some of the other line items here as well, like around used, you know, I know you obviously, you don't give guidance, but broadly speaking, kind of the pickup in new, kind of the moderation in used, just wondering kind of directionally speaking, are these in line with how we should think about just the mix as we go forward, what we saw maybe in the last quarter or two, or how are you thinking about how are you planning for, kind of inventory and things like that, by kind of subs the business lines? Yeah, a couple a couple of things there, I think. And you and you hit a couple of key points there, I think, Sabahat. When you look at availability, you know, if you roll back 18 months, the team was really active in the used market as we are today. I mean, but it was a different approach in the sense that, you know, we were buying packages because of the shortages, and we were working with customers. You know, a customer might need a new unit if we can get it. If that's not available in the time frame they require, we were actively looking for used. We had a good consignment business as well, and so forth and rebuilds. And so when you think about that, you know, and how it's changed, availability's improving. That gives our customers some different options. And so maybe, you know, purchased activity is a little bit lower, but we're coming off some pretty strong used comps. So all that to say, it's, you know, the used is a little bit down, new is up, and we continue to target products and the alternatives our customers are looking for as well as the rebuild business. You know, our remanufacturing facility in Bradford will come on in the middle to latter part of Q2. We'll continue to build that facility as well to make sure that we have the options we need for our customers. So, long answer to your question, but I think, you know, I think the mix there is reasonable at the moment. I think you have to keep in mind our historic trends and, you know, and also just when you think of the requirements for our customers, what's ideal for them, right, depending on their utilization and whether it's a new or used product they're looking for. Great. Then maybe just one that, you know, a topic we probably discussed a while ago, but I think your comments around investment in Quebec and Maritimes, is that just sort of tied to some of the kind of the last bit of integration there on Hewitt? Is there anything major that you wanted to get done there before the pandemic all kind of dealt with? Maybe just a quick update on maybe just the status of kind of the additional kind of Quebec and Maritime territories, where we stand today. Yeah. No, I would say generally, you know, the team has done a nice job. And you mentioned the pandemic. It did pause some of the activity there for a period. We still feel that there's good opportunity there. Like, we've made some management changes there, which is starting to bear some fruit, which we think is great. We have invested heavily in that marketplace. We'll continue to do that in the sense that, you know, market penetration, we still feel there's great opportunity. I think just broadly, utilization rates, the team has done a nice job improving operational execution in Quebec and the Maritimes, but we still feel that there's opportunity there to improve that aspect of our business. And so, you know, I would say the investment, and the focus continues, as one of the opportunities within the rental side. I think the other piece for us, too, is just continuing across the rental business to look at, you know, complementary products that we can offer our customers that we don't today or, you know, by market and region. We're always evaluating the demand, locally with our decentralized model and just trying to make sure that we we have the products and services available for that unique marketplace. So we still feel quite positive that over the long term, there's some good opportunity in in, you know, across the rental market, but in particular in Quebec and Maritimes, we still have some some opportunity there just to penetrate the market more deeply. Great. Thanks very much. Thank you. Ladies and gentlemen, just a reminder, should you have a question, please press star followed by the number one on your touch-tone phone. We have our next question coming from the line of Maxim Sytchev from National Bank Financial. Please go ahead. Hi. Good morning, gentlemen. Morning, Max. Hey, Max. Mike, I was just wondering if you if you don't mind maybe commenting on on, Quebec. I mean, we've heard some positive data points around Hydro-Québec looking to invest in its capacity over the next 10 years. And I'm just curious to see when you think some of that spending could be, you know, spilling over into your P&L. Max. Yeah, good, it's a good question, Max. I guess part of it is I wouldn't speculate. That's certainly a longer-term investment cycle. John and I had heard, you know, that there's quite a bit of investment going into support, expanded infrastructure over the next decade. And so I think, you know, broadly speaking, that's an opportunity that our teams will have to work hard to earn their way into. You know, so infrastructure investment, I think, you know, also if that also results in some access into some of the resource industry side of things, I mean, that could be positive, but longer-term duration there. Yeah, I would agree, Maxim. We probably heard the same thing you have, which is I can't remember the number, but it's like CAD 100+ billion that needs to go into infrastructure, power infrastructure in Quebec. And I'm sure Ontario will have to do something similar. So, but it's over a long term, over the long-term cycle. Cycle. So generally, a positive tailwind, but I wouldn't speculate on exactly on time. And I haven't seen too much detailed information or, you know, or any bidding process or anything at this stage, for sure. Yeah. Okay. Fair enough. Thank you so much. And then in your outlook section, gentlemen, you talk about the ability to leverage use of technology to engage with customers, employees, and so forth. I'm just wondering, you know, if you don't mind providing a bit more color, what are you doing there exactly and the potential benefits that, ultimately, you know, flows down to the P&L? Thank you. Yeah. No, I think certainly digital in our business in general is a focus, both for you know our OEMs, including Caterpillar and ourselves, you know, in terms of you know I think the pandemic has forced a lot of folks to adopt technology in a different way. It's given us an opportunity to interface with customers electronically. You know, if you look at what we've been doing, we've talked a little bit about, you know, parts online and things like that, which were, you know, a great opportunity for us to continue to make it easier for our customers to do business with us. You know, of course, we have the infrastructure in behind it with our branch network. I think, you know, we have some other applications, you know, for used and online to auction and so forth. And so, you know, that's sort of the go-to-market strategies, I think, you know, in addition to that, just broadly with technology, it continues to advance in the equipment itself, and provide our customers with more efficiency on their fleets. you know, whether you're talking about, you know, the autonomous equipment we have up at, with IAMGOLD at Côté or you're thinking about even just using analytics in a way that we can reach out to customers and be more proactive on product support, you know, I think a number of a number of areas there to help drive different segments of our business, whether it's product support or even just, like you say, just how we reach our customer more effectively and just make it easier for them to do business. Rental's another piece, too, that we, you know, with our applications and so forth, we continue to advance to a degree. And again, it's to support how we go to market and how we, you know, ideally, we're going to be easy to do business with in the rental side, for example, and easier for customers to locate equipment, secure, or extend and do other things like that as well. Okay. Okay. So super helpful. Thank you so much. Great. Thank you, Max. There are no further questions at this time. I'd now like to turn the call back over to Mr. Doolittle for final closing comments. Yeah. Okay. Thank you. Thank you, Lara. Just wanted to thank everybody for joining us this morning. Thank you for the great questions, for listening, and appreciate your interest in our results. So, Mike, thank you. And thanks to everybody on the call. That's great, everybody. Have a great day, and please be safe. Thank you so much. Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask, would you please disconnect your lines? Have a lovely day.