Good morning. Today is Wednesday, July 31, 2024. Welcome to the Toromont Industries Limited second quarter 2024 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 very much, Joelle. Good morning, everyone, and thank you for joining us today to discuss Toromont's results for the second quarter of 2024. Also on the call with me this morning is Mike McMillan, President and Chief Executive Officer. Mike and I will be referring to the presentation that is available on our website. To start, I would like to refer you to slide 2, which contains our advisory regarding 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. Mike, over to you to start us off. Great. Thanks very much, John. Good morning, everyone, and thanks for joining us. John and I will be commenting largely on a continuing operations basis since Q2 of 2023 included the sale of our AgWest business, and for better comparability, we will generally exclude AgWest in our comments. Results for the second quarter of 2024 improved on a continuing operations basis against the similar period last year, with revenue up 16% and net income up 2% from Q2 of 2023. As expected, we are seeing more normalized supply when compared to the market factors we experienced last year. During the quarter, we commenced operations at our remanufacturing center in Bradford, Ontario, and we continue to increase volume and activity at this facility, along with the installation of new equipment and hiring technicians. We are excited about this new facility, and we are increasing our capacity for remanufacturing and how this will efficiently enhance our service offer for our customers. The Equipment Group executed well in Q2. Revenue increased year-over-year as a result of improving prime product delivery against a strong order backlog. Rental markets were somewhat softer, mainly in light of the equipment rental segment. However, product support activity levels remain healthy, and we continue to increase technician headcount. Improving equipment availability, good bookings over the first half, and a healthy opening order backlog remain supportive. CIMCO continued to deliver solid results for the second quarter, driven by good execution in Canada and the U.S., coupled with healthy activity levels. Package revenue in the quarter reflects good progression on the order backlog. Product support activity continued to demonstrate strong growth, supported by the larger technician workforce. Construction and mining markets provided solid equipment ordering and product support activity. Rental markets have eased somewhat through the first half of the year, challenging bottom-line results. However, we are very comfortable managing through such cycles and remain committed to this market and its long-term prospects. Across the organization, we continue to focus on our long-term investment strategies and remain committed to our operating disciplines, driving our aftermarket strategies and delivering customer solutions today and in the future. Our strong financial position and order backlog position us well for the remainder of the year. On slide 4, I'd like to touch on a few key financial highlights. Investment in non-cash working capital increased 17% versus a year ago. We are comfortable with this increase as it was mainly driven by higher inventory levels and accounts receivable balances, reflective of the higher levels of activity and normalizing supply conditions. Inventory levels are higher than the prior year, driven by a number of factors, including delivery, timing, inflation, foreign exchange rates on U.S. source supplies, improving availability through the supply chain, seasonality, and activity levels. Accounts receivable increased in light of the higher trailing revenue. Day Sales Outstanding at both the Equipment Group and CIMCO were unchanged from this time last year. Our team continues to closely manage the aging of our receivables, monitor credit levels, quality, and metrics. We ended the second quarter with ample liquidity, including cash of CAD 804 million and an additional CAD 461 million available to us under our existing credit facilities. Our Net Debt to Total Capitalization ratio was -6%. We purchased and canceled 608,000 shares for approximately CAD 75 million on a year-to-date basis under our NCIB program. These purchases are mainly reflective of good capital hygiene and help to mitigate option exercise dilution. Overall, our balance sheet remains well positioned to support operational needs, and we are prepared to manage challenges related to economic variables and business conditions. We continue to exercise the operational and financial discipline one would expect as we evaluate investment opportunities that may develop over time. Toromont targets a return on equity of 18% over a business cycle. Return on equity was lower at 21%, compared to 25.1% for Q2 of 2023, and remains above our five-year average of 20.8%. Return on capital employed was 27.9%, down from 32.2% for Q2 of 2023. Both of these metrics reflect our higher capital investment and excess cash on hand. Finally, as announced yesterday, the board of directors approved the regular quarterly dividend of CAD 0.48 per share, payable on October 2nd, 2024 to shareholders of record on September 6th, 2024. John, I'll turn it back to you for some more detailed comments on the results. Thanks a lot, Mike. Let's turn to slide 5 for a few additional comments on the consolidated results. As Mike noted, results improved in the second quarter of 2024 on good growth in revenue, good execution against order backlog, and project schedules. Gross profit margins were lower compared to prior year, as expected, given sales mix and market dynamics. Higher revenue and higher interest income on cash balances were effectively offset by the lower gross margins and higher expenses. New bookings were strong through the first half of the year and are supportive of future results. Bookings for the second quarter decreased 13% compared to last year, and increased 13% on a year-to-date basis, with good orders in mining, construction, and CIMCO. Backlog remains healthy at CAD 1.3 billion as of June 30th, similar to that reported at last, at this time last year, with a decrease in the Equipment Group, which is down 7%, and an increase at CIMCO, up 40%. Backlog is supportive of future results. On a consolidated basis, revenue increased 16% in the second quarter and 7% through the first half of the year, with increases in both the Equipment Group and CIMCO for both periods. Expense levels decreased to 11.1% of revenue for the quarter and increased to 12.4% year to date, reflecting the higher staffing levels and activity, as well as general inflation. Operating income decreased 1% in the quarter and 7% year to date, as the higher revenue was more than offset by the lower gross margins and higher expense levels. As a percentage of revenue, operating income was 12% on a year-to-date basis, compared to 13.8% last year. Net earnings on a continuing operations basis increased 2% or CAD 2 million in the quarter compared to last year, and decreased 4% or CAD 10.2 million for the first half of the year. Basic earnings per share on a continuing operations basis was CAD 1.65 in the quarter and CAD 2.67 year to date. Let's look at the Equipment Group in more detail and turn to slide 6. Revenue was up 15% in the quarter and 7% for the first half of the year. Equipment sales, including both new and used equipment, were up 33% in the quarter and 13% year to date, reflecting good inflow and delivery of equipment. New equipment sales increased 39% in the quarter and 15% year to date, with good activity in the mining and construction markets. Used equipment sales increased 4% during the quarter and remained relatively unchanged year to date on higher rental fleet dispositions, reflecting fleet management decisions. In the quarter, total equipment revenue increased 16% in construction, 130% in mining, 25% in power, and were down 32, 32% in material handling. Rental revenue was 5% lower in the quarter and 4% lower year to date, mainly in the light equipment market. The RPO fleet was CAD 64 million at June 30, 2024, versus CAD 44.2 million a year ago, and rental revenue was up 41% for the quarter and 46% year to date compared to similar periods last year. We think of RPO as a financing tool that normally results in an eventual sale. Product support revenue grew 3% in the quarter and in both the quarter and for the first half of the year, with increases in both parts and service, generally up across all markets and most regions on good end user demand and a higher technician base. Looking at specific markets for the quarter, change in revenue was as follows: construction was up 1%, mining up 5%, power systems relatively unchanged, and material handling up 5%. Gross profit margins decreased 310 basis points in the quarter compared to last year, and decreased 210 basis points on a year-to-date basis. Sales mix was the largest factor, with a lower proportion of product support revenue to total, dampening margin 100 basis points in the quarter. Equipment margins decreased 30 basis points as expected, given market dynamics at play in the prior year. Rental margins were down 90 basis points on lower fleet utilization, with some softer market activity. Product support margins decreased 10 basis points, reflecting higher input costs being absorbed by the business. Selling and administrative expenses were up 8% in the quarter and 7% year-to-date, reflecting the higher revenue and activity levels. Compensation costs were higher year-over-year on headcount and regular salary increases. Other expenses, such as training, travel, and occupancy costs, have increased in light of activity levels and general inflation. We are comfortable with the increases as they largely represent investments in our team. Operating income decreased 2% for the quarter, 10% for the first half of the year, as the higher revenue was more than offset by lower gross margins and higher expenses. Bookings decreased 9% in the quarter to CAD 610 million, versus a tough comparable in 2023, which included several large mining and power systems orders. Construction markets were active, up 12%, with a continuing evolution towards more normalized supply and demand dynamics. Mining markets were also strong, with good orders received through the first half of the year, however, down 17% from last year's Q2, which was a very strong comparable. Power Systems order activity was lower, down 50%, reflecting a large project received last year. Backlog of CAD 1 billion remains at healthy levels, down 7% versus last year, reflecting deliveries against customer orders from the opening backlog and good new bookings. Approximately 90% of the backlog is expected to be delivered over the next 12 months, but of course, this is subject to timing differences depending on vendor supply, customer activity, and delivery. Now turn to CIMCO on slide 7. Revenue is up 19% in the quarter and 11% for the first half of the year. Package revenue increased 25% in the quarter and 11% year-to-date, with good progress on construction in the quarter after a slower start to the year. Industrial market revenue was up 16%, with higher activity in Canada and lower activity in the U.S. versus a tough comparator. Revenues from the recreational market increased 51%, with higher activity in both Canada and the US. Product support revenue increased 12% in both the quarter and on a year-to-date basis, with higher market activity in Canada in both periods. Activity in the US was relatively flat for the quarter, however, up year-to-date. Activity levels are reflective of market conditions and increased labor capacity. Gross profit margins increased 10 basis points in the quarter, reflecting higher product support margins on improved execution and higher market activity, largely offset by lower package margins and an unfavorable sales mix. On a year-to-date basis, gross profit margin increased 200 basis points, with higher margins in both packages and product support margins. Package margins reflect good operational execution and the nature of projects in process. Product support margins increased on improved execution and a higher volume of activity. Selling and administrative expenses were up 15% in the quarter and 13% for the first half of the year. Compensation costs increased, reflecting staff levels, annual salary increases, and higher profit sharing accruals on higher earnings. Other expenditures, such as travel and training, increased to support activity and staffing levels. As a percentage of revenue, selling and administrative expenses increased to 16.2% in the first half of the year, versus 15.9% in the similar period last year, reflecting higher spending levels to support current and future business. Expenditure control measures on discretionary spend remain a key focus area for the CIMCO team and the company in general. Operating income was up CAD 2.4 million, or 25%, for the quarter, and CAD 5.4 million, or 37%, for the first half of the year, reflecting the higher revenue and improved gross margins, partially offset by higher relative expense levels. Operating income as a percentage of revenue increased 180 basis points compared to last year to 9.5%. Bookings decreased 49% to CAD 32.6 million in the quarter, however, were 31% higher for the year-to-date period. Recreational bookings were 166% higher through the first half of the year, with excellent activity in both Canada and the U.S. Industrial orders were down 15% in the first half. Canadian orders were lower against a strong comparative, while the U.S. was higher. Backlog of CAD 289.7 million was 40% higher versus last year, with an increase in both markets. Industrial backlog increased 45%, with an increase in both Canada and the US. Recreational backlog was up 34%, reflecting a strong increase in Canada and a modest increase in the US. Approximately 80% of the backlog is expected to be realized over the next twelve months. However, again, this is subject to construction schedules and potential changes stemming from supply chain dynamics. With that, we can move to slide 8, turn it back to Mike to highlight some of the key takeaways as we look forward to the second half of the year. Thanks, John. As one would expect, we consistently focus on key priority areas, including safe operational execution, serving and supporting our customer requirements, and our disciplined long-term focus on building our business for the future. Our backlog levels remain healthy, as John highlighted. While bookings in the quarter were softer in both groups, this is reflective in part to a relatively strong start to the year. We continue to hire technicians to support our operations, and this remains an essential focus for our aftermarket service strategies and value-added product and service offerings. Operationally and financially, we remain well-positioned with ample liquidity and our strong leadership team's disciplined culture and focused operating models. Our teams remain committed to disciplined execution with our decentralized, empowered operating model, adapting to changes in the business environment while remaining focused on executing customer deliverables. We continue to monitor key metrics, including supply and demand dynamics. As noted, our long-term focus on growth and returns means we remain committed to our operating and financial disciplines to manage our cost structure and discretionary spend, while we invest in capacity and capabilities to provide exceptional service to our customers today and in the future. With a solid order backlog and balance sheet, we are well positioned and will continue to support the business through thoughtful capital deployment. We appreciate our entire team's effort and commitment to support our customers and deliver value to our stakeholders. Thanks also to our valued customers, supply partners, and shareholders for their continued support. That concludes our prepared remarks. At this time, we'll be pleased to take questions. Joelle, over to you, please, to set up the first call. Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. Should you have a question, please press star followed by the one on your touchtone phone. You will hear a three-tone prompt acknowledging your request, and your questions will be pulled in the order they are received. If you wish to decline from the polling process, please press star followed by the two. If you are using a speakerphone, please lift the handset before pressing any keys. One moment, please, for your first question. Your first question comes from Cherilyn Radbourne with TD Cowen. Your line is now open. Thanks very much, and good morning. Good morning. Good morning, Cherilyn. First question is on the equipment group. Clearly, there was some contribution from deliveries that were delayed in the first quarter. But with new equipment sales up 15% on the year-to-date period, you know, it's hard to say that that's all it is. What is your overall sense of customer confidence levels at this point? Yeah, thanks, Cherilyn. It's a good question. I think, you know, I think I would reflect back as well on Q4, where we had, you know, a pretty solid finish to the year, which again, you know, I think affected some timing of delivery and so forth in Q1. But then we also, as you mentioned, saw on a year-to-date basis, we saw good numbers at 15% on new. You're referring specifically to new and really 39% in the quarter. I think, you know, I think there's still, you know, a tone of caution out there. If you look at our backlog today, it's a nice split between the construction side, mining, power, and so forth. And so, you know, I think generally, depending on vertical, you know, there's still considerable investment and work we're doing on the mining side. I think in the construction side, you know, there has been this tone of patience while we look at the broader economic factors. You know, we did see, I think in certain segments as well, like when you think of residential, in other areas, we see a little bit lower activity in that side, on the infrastructure side, supporting residential. But, you know, in other areas, we continue to see some decent activity. And so, you know, I think it's a multidimensional sort of view. But, you know, we feel confident. I think, you know, cautiously in that sense, when we look forward, just because of the backlog and some of the availability, I think, also supports customer decision-making, gives them also some time to think through the timing of their cash flows as they monitor economic factors, but. Yeah, that's helpful perspective. And then it seems to us that on a mix-adjusted basis, the Equipment Group margins are holding in very well relative to the high levels experienced during that 2022, 2023 period. Is that your impression as well, and are there margin-specific initiatives that you have underway? You know, I think we always refer, I think, to—and John, I can weigh in on this. We always—when we think of margin, I mean, there, we always go back to the fundamentals, right? When we think of, you know, certainly, as you mentioned, we've had a period of strong margins, but limited availability, and availability has changed quite dramatically. And I think, you know, the mix has also been a big factor. So when we think of the mix of new, certainly we just covered that, you know, much stronger availability, a higher proportion of mix. I think also within the mix, when you think of, you know, mining deliveries and their contribution versus other equipment, you know, that can affect margin in the near term. The mix of sales on equipment, new and used, versus, say, product support as well as a factor. You know, where we see stronger unit deliveries on prime product, that's a factor. And the other piece that we always refer to is on the rental side. And so not unusual to see, you know, a softening in some rental when equipment sales are stronger and vice versa. And so number of factors, I think, when we look at the margin levels, I think, you know, we need to consider and always reflect on that composition of mix. Yeah, I mean, I would just add to that, Mike, and say, Cherilyn, we've been kind of calling out some compression on new and used equipment over the last couple of quarters, which we continue to see, although maybe not as marked as you would have thought. And then on rental, rental's down 90 basis points, and that reflects lower utilizations. And we also have been calling out this softness in residential activity sector, and that's what we saw in rental in the quarter. If I could sneak in just the last one on that rental performance. Is your intention to respond to that in terms of your net fleet adds for the year, or are you gonna continue to drive on and invest for the future as planned? Yeah, I think, you know, again, it's a little bit of an optimization, but I would say, as I mentioned in my comments, you know, we're very committed to this market. We very supportive of the long-term prospects, and so the investment, if you look at our numbers today, you know, we'll taper our CapEx a little bit, but it's really marginal. So we are quite committed. We're also renewing the fleet, and we're turning over some of those fleets with availability, and so you see a little higher acquisition cost going in. But the short answer, I think, is, you know, we are committed to the long-term investment strategy there. We are going to manage through cycles, and we always have in the past. I think the key there is not to overreact, but also look, you know, for investment in other areas. You know, we continue to look at broadening our product offer, increasing our fleet, and looking at some specialty areas as well. And I think those are longer-term perspectives in that business, and, you know, again, we're very committed to that piece of our business. That's all for me. Thank you. Thank you, Cherilyn. Your next question comes from Yuri Lynk with Canaccord. Your line is now open. Morning, Yuri. Hey, good morning, Mike. Morning, guys, Hey, Yuri. John. Yeah, maybe just follow up on the question on the equipment sales. In the quarter, you know, CAD 559 million, I think that's far and away a record for the company. Understand the some of the supply-demand dynamics and availability, but just any additional color in terms of there being one or more large package sales in there, or is it just simply the fact that you've got, you know, the equipment on hand now to be able to put it into the customer? ... Yeah, you know, maybe a couple things just to highlight there, Yuri. And, you know, I, again, I would look at it on a year-to-date basis because we have seen some... You know, we continue to see some interesting dynamics there in terms of customer buying behaviors in the macro environment. But, you know, when we look at, and we do break out in some of our disclosure, a little bit more color, a little bit around the composition, like when you think of construction, mining, and so forth. We had, you know, we had some good deliveries in Q2, on the mining side, for example. And, so those are things to keep in mind as we go forward, because those can be a little bit more lumpy based on customer delivery schedules and requirements. You know, I think, but broadly, you're correct in the sense that, you know, availability has improved significantly over the last 12 months, and we continue to support that execution with our teams and so forth. So you're seeing a bit of that in Q2 also, with the seasonality is not uncommon, right? Yeah. Okay, that's helpful. I do want to acknowledge CIMCO. They're on a very nice roll here, really impressive results over the last little while. Is the plan to just keep on with the organic growth strategy? Because it's obviously working, but is there an opportunity to support that with some acquisitions, or what's the plan there? Yeah, maybe just to start on that, Yuri. I think, you know, again, the team has done a really nice job, both in Canada, and the U.S., and I think if you look at our backlog, they've secured some good business and doing a nice job there. Managing our margins, our execution, building the team, a little bit of spending there to support future growth, and you know, generally quite pleased with the systems and processes they've put in place as well. You know, when it comes to acquisition side, again, we always look at that very carefully because I think in that business, you know, it's capital light in a sense. We tend to look at opportunities. It's pretty fragmented. And so, you know, we certainly will look at opportunities, but organic, you know, organically, we are well positioned to grow that business. I think with the technologies in that business and you think of some of the things that we're doing, we talked about Blatchford at our annual meeting. You look at some of the net zero initiatives and so forth. And I think, you know, I think they're in a good position from that perspective. And I would say, you know, the primary focus is organic, but supplemented with other opportunities, if we think it makes sense at good value and we can make a difference in that, you know, with the tuck-in and that sort of thing, so. Okay, good to hear. Yeah. Okay, guys, I'll turn it over. Thanks. Thanks, Yuri. Your next question comes from Steve Hansen with Raymond James. Your line is now open. Yeah. Good morning, guys. Thanks for the time. Yes, good morning, Steve. I was just hoping you could give a little more granularity on where exactly you're at on the remansite, staffing levels, and sort of the pace that you expect to ramp up utilization here going forward, given that it's a relatively new marquee facility for you? Yeah. No, thanks for that, Steve. Yeah, we were... As a matter of fact, we had one of our meetings there yesterday, and, you know, that facility is, the activity was pretty good. We still. I would say, we've mentioned it's about 143,000 sq ft facility. You know, we, we expect that full peak to be in around the 150-160 technician range. You know, I'd say we're just over 100 at the moment as we transition, activity into that, operation. You know, we're doing a lot of engine work and other things at the moment. But there's still, there's still some other areas that we're continuing to put equipment in to support, you know, other opportunities and transfer some volume. So, I would say, you know, we're gonna be in transition there for a period of time yet, as we look at our facilities down here in our office in Concord, on Edgeley, and continue to, you know, install some pretty sophisticated equipment in that facility. But it's, it is fully functional where for the most part, and pretty active. That's very helpful. Just a quick follow-up. It's a smaller piece, but the power gen market, it's not been one that's been as, as robust as the others lately. Just maybe some commentary around that and how that's been performing and, and why, why it's been dipping. Yes. Sorry, Steve, you're asking about the power segment? Yeah, the power segment. Thanks. Yeah. No, you know, I think, the power segment's actually done pretty well. In our results, you'll see, you know, we booked, for example, if you look at our backlog, we booked a fairly large project last year, and the team's been executing on that project for a customer, throughout the course of the year and into Q2. And so it, it can be a little bit lumpy, just the nature of that business. But, you know, I would say it's, it's performing well. But it is project-based. It's, in a lot of ways, it's, it's somewhat similar to when I think of CIMCO at times, where you can have some larger projects in certain periods, and then a number of, you know, smaller and aftermarket support projects as well. And so, you know, I think the future potential for that business is very strong as we look at energy transition, supporting customers in remote locations like mines and the standby power opportunities, if we think of other areas, other segments that we can look at and actively pursue in Canada here. Yeah, the only thing I would add there, Steve, is Mike said it was a bit lumpy. If you look at the backlog in the Equipment Group, it's about CAD 1 billion, and CAD 280 million of that approximately is in power. So we've got a very good backlog sitting there. Okay, very helpful. Appreciate it. Great. Thanks, Steve. Your next question comes from Devin Dodge with BMO Capital Markets. Your line is now open. Thanks. Good morning, guys. Hey, morning, Devin. Hello. ... Start with a question on the rental business. Just wondering, if you can, you know, I'm just wondering, how much of the sluggish rental demand do you attribute to softer end market conditions versus maybe the unwind of some customers that were maybe forced into the rental channel due to limited availability of new or used? Yeah, it's a good question, Devin. I think, you know, I would tend to say that, you know, the dynamics that we outlined in some of our comments and talked about earlier are really the ones to think about. You know, there certainly, I would say, when you go through business cycles, you know, and we had a pretty robust rental market. When we had a lack of availability, we did have... You know, we deliberately managed our fleet so that we had options available for customers, and so that supported the rental activity and utilization. I think when we get into a period like we are now with higher levels of availability, you know, certainly customers are able to secure equipment and time it more effectively. And so there is a. You know, I would say there is a small factor there. I think really, though, when we look at that business, in particular, outside of those cycle dynamics, I would say, you know, again, the residential market, you know, we're seeing a little bit of softness in some of the infrastructure and the kickoff of some projects. I think long term, we feel very positive about that because there's a lack of affordable housing. We expect, especially in our primary markets, to see significant amount of activity, and you hear about that quite commonly. So, you know, I would say that's probably more of a factor. That combined with, you know, slightly higher acquisition costs on our fleets when we, you know, as we continue to replace the fleets with new equipment and so forth. So there are a number of dimensions, I think, in there. Okay, good call. Thanks for that. And then maybe just continuing on that theme, just wondering if you can give us a sense for where financial utilization of the rental fleet sits currently versus what you view to be an acceptable level, and what is that path to narrow or close that gap? Is it, is it just demand, or are there things internally you're working on as well? Yeah, well, a couple of things I'd say. I think, you know, again, we don't publish our utilization rates, but, you know, if you looked at some of the publicly available information, you know, through Reuters and other sources, I think what you'll find is industry physical utilization is running a little lower than last year, which is pretty common. So that's kind of the benchmark to look at. It is, you know, it is a few points. Now, it's going to ebb and flow through the summer season here as well, and so that's a difficult one to predict. But I would say, you know, it is, it is lower than last year. You know, and I think from our perspective, again, we're committed to the market. You know, as far as where we'd like to see it, we still have growth potential. I think, we often talk about go back to the Maritimes, but I think broadly, as we enhance our offer with fleets, some specialty products, we get some of that equipment into the marketplace, you know, that's gonna provide us with an opportunity to deploy more capital and also penetrate a market and build utilization. And so, you know, ultimately, you know, I think we have room in all of our markets to continue to improve utilization, maybe perhaps a little bit more in the eastern part of our territory, as we continue to work through that business plan, and then on that specialty side I just covered. Okay, thanks for that. I'll turn it over. Great. Thanks. Your next question comes from Sabahat Khan with RBC Capital Markets. Your line- Hey, good morning, this is Arthur on for Sabahat. Good morning. Just a quick question on product support. Given the improving equipment supply backdrop, what is your outlook for this business line? Yeah, it was a bit tough to hear you. If you wouldn't mind, just asking again? Yep. Can you hear me a bit better now? Yeah, that's great. Thanks. Okay, perfect. Yeah, just a quick question on product support. So given the improving equipment supply backdrop, just curious what your outlook is for this business line, kind of over the coming quarters or years? I mean, obviously, we're committed to driving product support improvements and increases. We continue to hire technicians, which is the most important part or component of increasing product support revenue. You know, the new equipment sales so far this year and in the quarter bodes well for product support increases in the future. But in terms of a, you know, a specific number, not gonna give that, but, but that's generally our feeling on product support. Yeah. And I think just on, just on your unit delivery sort of implied in your question, you know, I think over the long term, of course, as we see unit deliveries and good sales numbers on used, I mean, that, that supports a longer-term view, and, and we look at certain verticals like mining, construction, some of the larger gear. Again, those are, those are great opportunities for us over the long term. And so, you know, we, like Bradford, you know, we're investing now for the long term, and, and we want to be there to support our customers as they utilize the equipment and it goes through their normal cycles and, and rebuild cycles and so forth down the road. Okay, and I think you mentioned that equipment margins were down 30 basis points on the year, just given the market dynamics at play in the previous year. Is that just referring to the sort of improving equipment supply backdrop, where margins last year might have benefited from, you know, a lack of equipment availability? That's correct. Yeah, and I think, you know, we always have to think about mix within those components as well. You know, again, you know, availability and certain things like that certainly is a factor, but I think it's also when you think of the overall mix. I mentioned earlier, you know, the composition of, say, mining equipment versus some of our construction equipment in CCE, where you have different market factors to consider depending on demand and mix within those categories. And then just, last one for me. Obviously, you guys were active on the buyback in the quarter. Just curious to hear your thoughts on how you're thinking about the buyback today and kind of over the course of the remainder of the year, and if you have any updates to sort of your capital allocation outlook, just given the current macro backdrop. Yeah, so as Mike noted in his remarks, our primary goal on the buyback program is capital hygiene, which is offsetting option exercise issuance. And then occasionally, we'll be opportunistic. But Mike also mentioned we have ample opportunities to deploy our capital in organic growth. That's our most - our primary, number one, capital allocation objective. We're also we have an active funnel of M&A opportunities. Somebody asked about the CIMCO side, and we have an active funnel kind of across the group. And buybacks are just one tool in the toolbox and striking a good balance on capital allocation. So our capital allocation priorities have not changed. It's organic growth, it's our dividend, it's M&A opportunities, and it's a buyback program as well. Good for me. Thank you. Great. Thanks. Ladies and gentlemen, as a reminder, should you have a question, please press star followed by the one. Your next question comes from Roman Pshenychnyi with National Bank. Your line is now open. Hi, Roman. Good morning, it's Roman here on for National Bank Financial, and I was wondering if you could maybe provide a bit more color on the efficiencies behind the Bradford Reman plant, and maybe what the longer-term strategic opportunities would be there. Thank you. Roman, sorry, I missed the first part of that. Oh, my apologies. Is Is that better? A little better, yep. If you could maybe prospects for the Bradford Reman plant and the potential opportunity for efficiencies there? Oh, in the Bradford facility for efficiencies, I think if that's your question. Yeah, so I think a couple things. It's early days there. You know, I think ultimately what we're looking at is, it's a great facility in terms of the design, the flow, the efficiency. And so I think over time, you know, as we look at that facility versus where we were before, you know, we're currently in three locations, each performing great operations. But I think if you naturally look at a state-of-the-art facility, with more contemporary cleaning facilities, product flow, and within one building and so forth, you can imagine, you know, we're gonna be able to see some efficiencies come out of that. Not to mention the occupancy and the overall maintenance and support costs that we would have for facilities over time. And so, you know, we're gonna see, you know. I would say, you know, in context, I mean, product support is a large part of our business. It runs over 40%. And so, you know, you have to keep that in mind. This is one facility within the network, but certainly it's a great business model for us that we plan to develop further. Thanks so much. That's very helpful. And just one more question, more related to CIMCO. Just wondering, what are the fundamental drivers of the more recent strength we've seen this quarter, especially? And you know, what is driving that from a thematic point of view? You know, there's good activity levels in the market in this segment. I think the team has done a really good job. We've implemented a new project management system, which has increased the discipline within the organization in managing each of the projects. It's a new technology that Mike mentioned, which is greenhouse gas friendly. And so I think kind of those three things, you know, go into the blender, and CIMCO's been doing a very good job over the last few quarters. Yeah. And I think if you look at, for example, in that particular space, you know, that we've made a commitment for natural refrigerants, moving away from synthetics. We have a Thermal Force One product that we are working with the market on, and I think, you know, a number of other things that support both recreational and industrial. And, you know, you think of things like, cold food storage, grocery, and food processing. A lot of colleges, universities, and so forth, also are looking at ways to optimize and move towards, you know, non-synthetics and more efficient thermal heating and cooling plants. And so, you know, I would say all those things come together in terms of, we have a strong offer there. We have a great team in place, and you know, we've done some work also in the U.S. We have a strong management team in that particular market and, you know, developing our presence. So I think those are good factors that lead us forward. Thank you. Appreciate the color on that. Great. Thanks. Thanks, Roman. There are no further questions at this time. I will now turn the call over to management for closing remarks. Yeah, okay. Well, thank you very much, Joelle, and thank you for hosting us, and appreciate everybody joining the call this morning, and for lots of great questions. So that concludes our call. Please be safe. Have a great day, everyone. Thank you. Thanks again. Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your lines.