Ladies and gentlemen, thank you for standing by, and Welcome to the Second Quarter 2021 Huntington Ingalls Industries Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there'll be a question. I would now like to hand the call over to Dwayne Blake, Vice President of Investor Relations. Mr. Blake, you may begin. Thanks. Good morning and Welcome to the Huntington Ingalls Industries Second Quarter 2021 Earnings Conference Call. With us today are Mike Petters, Chris Kastner, Executive Vice President and Chief Operating Officer, and Tom Stiehle, Executive Vice President and Chief Financial Officer. As a reminder, statements made in today's call that are not historical facts and are made pursuant to the Safe Harbor provisions of federal securities law. Actual results may differ. Please refer to our SEC filings for a description of some of the factors that may cause actual results to vary. In the remarks today, Mike, Chris, and Tom will refer to certain non-GAAP measures. Reconciliations of these metrics to the comparable GAAP measures are included in the appendix of our earnings presentation that's posted on [audio distortion]. Mike? Thanks, Dwayne. Good morning, everyone, and thanks for joining us on today's call. This morning, we released strong second quarter 2021 financial results, driven $2.2 billion, we're up from $2.0 billion in the second quarter of 2020. Diluted EPS of $3.20 was up significantly from $1.30 in the second quarter of last year, and pension-adjusted EPS for the quarter was $3.05. New contract awards during the quarter were approximately $1.2 billion, resulting in a backlog of approximately $48 billion, of which approximately $24 billion is funded. Chris will provide some color on a few of the key awards for the quarter during his remarks. Shifting to activities in Washington, we are pleased that the congressional markup process for fiscal year 2022 has begun in earnest following release of the president's budget request in May. Of note, the budget request continued recapitalization of the nation's strategic ballistic missile submarine fleet and supported funding for CVN-80 and CVN-81 Ford-class aircraft carriers, two Virginia-class submarines, one DDG 51 Arleigh Burke-class destroyer, and LHA-9. We were also pleased that a second DDG 51 class destroyer was included as the number one priority on the Navy's unfunded requirements list for fiscal year 2022. We look forward to working closely with the Congress during the FY 2022 markup process to earn support for the second DDG and other critical priorities, including the efficient production of amphibious warships. In closing, slide four provides some key takeaways from the recently announced transaction. We are very excited about the addition of Alion to the HII family. Alion is a perfect complement to our existing capabilities in the technology-driven defense and federal solutions space. The solutions and products they provide are directly in line with the strategic focus that we have articulated for our Technical Solutions business, and it enhances our technical capabilities and customer access in high-growth national security markets, including C5ISR, military training and simulation, and next generation represents an investment in capabilities that support the evolving DOD national security requirements, which, in turn, are expected to generate significant long-term sustainable value for our shareholders, our customers, and our employees. I will turn the call over to Chris for some remarks on the operations. Chris? Thanks, Mike. Good morning, everyone. This was another solid operational quarter, and I'm very pleased with the consistent progress being achieved across our shipbuilding and Technical Solutions programs. With that, let me share a few key contract awards and programmatic highlights from the business segments for the quarter. At Ingalls, the team received a contract modification from the U.S. Navy for $107 million to provide additional long lead time material and advanced procurement activities for amphibious assault ship LHA-9, which increases current funding on this ship to approximately $490 million. Regarding the potential bundled acquisition of LHA-9 with LPD 32 and 33, discussions are ongoing with the customer. We believe that a bundled acquisition continues to be the most cost-effective method of procurement of these critically important ships. In addition, Ingalls was awarded a contract with a potential total value of $724 million over seven years for planning yard services in support of a variety of in-service amphibious class ships, including the LPD 17 San Antonio class and LHA- 6 America class. Shifting to program status, LHA-8 Bougainville is making steady progress through the structural erection and initial outfitting phases of construction with cost and schedule performance in line with our expectations. On the DDG program, the team successfully launched the first Flight III Arleigh Burke-class guided missile destroyer, DDG 125 Jack H. Lucas, in June, and DDG 121 Frank E. Petersen Jr. is expected to conduct sea trials later this year. On the LPD program, LPD 28 Fort Lauderdale is on track to conduct sea trials during the fourth quarter, and LPD 29 Richard M. McCool Jr. continues to achieve production milestones in support of launch early next year. At Newport News, there were no significant contract awards to highlight for the quarter, so I will go right on to program status. CVN 79 Kennedy, is approximately 83% complete, and the team remains focused on compartment completion and key propulsion plant milestones. CVN 73 USS George Washington, is approximately 90% complete, and the team remains focused on achieving key test program milestones, flexibility, and modularity of these units. TS was also recently awarded a $273 million cost plus fixed fee, indefinite delivery, indefinite quantity contract to support maintenance and planning for the overhaul and repair of equipment and systems associated with the Navy aircraft carriers and West Coast Navy surface ships. In addition, TS was awarded a contract with a one-year base period and four one-year options with a total potential value of $346 million to provide a variety of aircraft and operational support services for US AFRICOM, including planning, management, maintenance, logistics, and airlift, airdrop services, and emergency medical care. Execution within Technical Solutions remains consistent with expectations, except for delays in awards in our unmanned business for critical new programs, which we expect to be resolved by the end of the year. As I close, note that we have included upcoming key program milestones on slide five. There are no changes from what we have previously provided other than designating those milestones that have been completed with a check mark. Now I'll turn the call back over to Tom for his remarks on the financials. Tom? Thanks, Chris, and good morning. Today, I'll briefly review our second quarter results. For more detail on the segment results, please refer to the earnings release issued this morning and posted to our website. Beginning with our consolidated results on slide six of the presentation, our second quarter revenues of $2.2 billion increased approximately 10% compared to the same period last year. This was primarily due to the growth at Newport News and Ingalls and was partially offset by a decline at Technical Solutions due to the portfolio shaping actions we have taken. Segment operating income for the quarter of $169 million increased to $174 million compared to the second quarter of 2020, and segment operating margin of $7.1 million and $75 million of net capital expenditures, while free cash flow of $126 million in the second quarter of 2020. Cash contributions to our pension and other post-retirement benefits in the quarter increased to $241 million, or 21.5%, from the same period last year due to higher revenues in both the submarine and aircraft carrier construction. Newport News operating income [audio distortion], we continue to expect the Alion acquisition will close in the coming weeks, and that we will incur approximately $25 million of one-time pre-tax transaction and financing-related expenses in 2021. We completed the syndication of the comprehensive update on our 2021 outlook for Technical Solutions on our third quarter call, following the closing of the acquisition. I'll turn the call back over to Dwayne for Q&A. Thanks, Tom, and one follow-up so we can get as many people through the queue as possible. Operator, I'll turn it over to you to manage the Q&A. Our first question comes from Doug Harned with Bernstein. Please go ahead. Good morning. Thank you. Morning, Doug. In Q2, you had a big increase in Newport News revenues. When you look at the back half of the year, you've got several pretty important milestones. You've got a lot going on there. Can you give us a sense of what took the revenues up so much in Q2 and how we should expect the workflow and revenues to play out over these next few quarters? Yeah, sure. It's Tom here. Good morning, Doug. I appreciate the question here. Although the growth year-over-year from Q2 was large, you have to recall we took a charge in Q2 last year for the Virginia-class program. That comes both on the margin side and the revenue side. It has that 21% increase looking larger than it is. I'd tell you on the back half of the year, with COVID understood right now, the labor force is stable. The contracts that we have in place right now, the run rate that we see is going to play out pretty consistent through the back half of the year. I'd say probably a flat to consistent back half of the year. I wouldn't let it run away from you as you try and see the growth from a year-over-year perspective. I'd stick with the guidance that we gave you back at the beginning of the year. I still think that we're on top of that. Okay. You got this $926 million service award at Ingalls. You're in the process of working through the Los Angeles-class work as well in services. Can you give us a sense of how you expect services revenues to flow? I always think of this as something that we kind of know the trajectory for shipbuilding, but services is less certain. How do you see that flowing, and do you get a sense from your Navy and budget discussions that There's going to be a pretty consistent driver of revenue coming from the services side. Yes. A couple of parts on that answer there. On the Ingalls award down there, it's a long-term services type contract. Obviously, as the claims and the years get funded in the out years, we'll see that revenue mature down there. The services contract they have is the oversight and the services aspects for the LPD and LHA programs. That was anticipated as far as our revenue projections that we had for you there. It's not a large portion of the Ingalls portfolio as we see it today. There are potentials going forward, depending on how the landscape plays out, both from a construction and future services and RO type work to play out. We'll have to see how that goes forward. From a Newport News perspective, as you mentioned, we took on the L.A. overhaul right now, so those were anticipated in our plans also. That was an overflow right from where the Navy was. I think medium to long term, we'd like to see ourselves get into a cadence of getting an overhaul on the sub side going forward. As we work with our Navy partner on what that kind of looks like, we'll provide additional guidance on that front. Okay. Thank you. Our next question comes from Myles Walton with UBS. Please go ahead. Thanks. Hey, Mike, I think in your remarks, you talked about stability or more predictability in the MTIB purchasing power or purchasing strategy. I guess you've got to a quote unquote, "handshake agreement" with the Navy. The congressional committees are pushing that to be more formalized into a contract. Can you just give some color, aside from the greater visibility of having the ships under contract, what are the financial implications to Huntington Ingalls? I know there's savings for the customer. I'm just curious from a financial perspective to the company, how would it change if they bought it individually or in that block buy agreement? Yeah. I'll just kind of talk in general. Anytime you're in a multi-year program, you're able to sequence the schedule of the platforms to inform to the way you've got your capital and your people and your material lined up. You get into, as Tom used the word, cadence, more cadence, not as a lot of shipbuilding. If, in this case, getting the LPDs, and the LHA in a cadence that's predictable over the next several years, creates a foundation for all the other programs that Ingalls is going to be working or chasing or trying to capture. It's a foundational piece of predictability, from a cost structure, rate structure perspective. I guess, our view of that is that, if you can get that locked in and create that kind of stability, it's worth the savings to our customer. Customer gets a good price for it. It's also worth that to us from the standpoint of the predictability. That's kind of the way we think about it. I don't know if, Tom, if you want to add any more to that or Chris. Yeah. Myles, as Chris said, it really solidifies the next three to four years at Ingalls moving forward. Maybe even more important than that, it solidifies the supply base, that we keep that ship class moving on a normal cadence. Okay. Sure. I probably should follow up on the back of that, too, is these bundles, whether it's a bundle like we're doing here or a multi-year, provide flexibility to our customers and our partners out there. Whether they decide to take the bundle that's on the table now or buy them kind of separately, the financial impacts on that, obviously, as Mike said, there's rates that come into play, the schedule of the ships, how we buy the material in a lot quantity, or do we buy them individually. All that factors into an affordability, profitability piece of the equation there. We put that forth to be as flexible to our Navy customer as possible, and we'll see how they move forward, appropriate the funds, and award accordingly. Okay. I think you increased the five-year cash flow to $3.2 billion after Alion acquisition from 2020 to 2024. As we look to 2022 to 2024, I guess it implies the $740 million or so. Is that a linear profile? Is it a big step up with a significantly higher back end? Can you just give any color to that as you see it today? Yes. As they come online, as you know, we're closed on the deal at end of August. In Q3, you'll get a look-see of the financials with Alion rolled in there. We'll give you a little bit more color on this Q3 call for the specifics on how we see 2021 falling out. Then I'd give additional color, I'd hold until Q4 in the February timeframe of next year when we give that guidance going forward. There's only so many ways you could spread the $200 million, I'd just hold the thought there until we come through the integration and we finish out this year. Okay. All right. Thank you. Our next question comes from Robert Spingarn with Credit Suisse. Please go ahead. Hey, good morning. Good day. Tom, the margins at Newport News were a bit below where we were thinking and also below the underlying margins we've seen over the past couple of quarters. I wanted to just ask what's going on there, driving the fluctuations in the underlying margins, ex EACs, or was this net negative EACs at work? While we're at it, maybe you can just give us the EAC splits between the segments. Thank you. No problem. I appreciate the question. Sure. Now, from a Newport News perspective, we kind of guided in Q1 that there was not going to be many opportunities for risk retirements and milestones for Q2, Q3. That was exacerbated at Newport News. I tell you, although five, six sounds a bit low when you combine it with the first quarter, it's six, one for the first half year. It's right at a run rate of six to seven, even if it's on the low side. It was not impacted by any major setbacks. The favorable EAC increases were $62 million. The unfavorable were $27 down for a net of $35. The upside is a little bit slated towards Ingalls. On the unfavorable, it was just slightly flopped from 50/50 towards Newport News. There wasn't anything specific to call out there. On the favorable side, you will find in the queue, and in my comments up front, that the DDG 125 took an incentive for the CapEx and there was some solid performance and risk reduction at LHA-8, LPD 28 and LPD 29. On the downside, there's nothing notable to kind of highlight here. Okay? Can you call out the capital investment incentive recognized on Jack Lucas? Yeah. It's $14 million. Okay. You'll find that in the queue. It's up front. All right. Thank you very much. Hey. Yes. Good morning. It seems like where you raised the shipbuilding margin for the year that this capital investment benefit was something that you weren't anticipating? Is it raised because you're expecting higher EACs in the second half of the year, or it's just continued performance versus the first half? Good morning, George. It's Tom here. I tell you that with half the year in the books, we kind of have a line of sight how the year's going to play out. Factoring in actual the two quarters and what we see here, we're still foreshadowing that Q3 is going to be light in terms of milestones and risk retirement. In the back end of the year affords additional opportunities, another six months of run rate to burn down risk. I think we just felt comfortable, and we wanted to help the Street understand where we think we're going to land by year's end. Okay, specifically, was that capital investment benefit not an expected thing for the year? It's a one-time event, and it was expected, but it doesn't play out in the run rate for the range that we're giving you at 7.5%-8%. Okay. The free cash flow is pretty weak in the first half, and it looks like working capital is up north of $200 million. The guide of $150 million-$250 million for the year still holds, what would have caused the second quarter to be as weak as it was? Thanks. Sure. I tell you, traditionally, we use cash up front. We punched out -$16 the first quarter, $23 up here for a net of +$7 through the first half of the year. Not unexpected. Q2 was the working capital was 7.9%. Again, in the range of 6%-8%, what we expect. The back half of the year usually does see some favorability to the working capital and that will come. A little bit that we have to keep our eye on is we have to pay back the COVID progress payments at the end of 2021. That negates some of the positiveness that you'd see in the working capital traditionally in the back half at HII. From where we stand here to get to the $150-$250, it's just the normal operational run of the revenues and the payments flowing through the books. Okay, thanks. Our next question comes from Seth Seifman with JP Morgan. Please go ahead. Hey, thanks very much and good morning. Question, I guess about profitability and whether, I guess, you look at the margin slide and you talk about the opportunities for risk retirement later in the year and sort of the correlation between those two things. I guess the new margin guide implies a down margin in the second half versus the first half. You look at all the opportunities to check off at Newport News and even at Ingalls, where margins have been very strong. Still more risk retirements ahead than have been checked off. I guess the first part is kind of given this list for the second half, why wouldn't we expect a stronger shipbuilding margin than we saw in first half? The second, I guess when we look at 2022 and we see sort of fewer milestones for Newport News, how do we think about what that means for profitability there and then Ingalls kind of coming off a high base, but obviously it looks like there's a lot to do there, I guess, looking at the correlation between these upcoming milestones and the shipbuilding margins? Sure, yes. I can give you some color on both of those questions. When you look at Q1, Q2, there's quite a few one-time events that are in there. The incentives we're talking about here at Q1 DDG 125 and Q2. Q1, there was a couple of incentives in there, too, that we highlighted. I've been asked, "Can Ingalls keep this up at 14% and now 11.9%?" I keep providing the guidance down that that's not a run rate that's sustainable. I think between the one-time events and the incentives that we talked at, we'll see that come down. I wouldn't really read that because we're giving you the 7.5%-8% that somehow the margins are dropping off from a performance or operational-standpoint at Ingalls. It's just that we won't see those one-time events in Q3 and Q4. From the question on the Newport News perspective, right now, if you look at it, they have a lot of new ships in their portfolio. 80, 81 is coming online. There is CVN 74 that just popped in here, and CVN 73 is nearing the end from a revenue perspective, and they have less weight on the portfolio there. It's the mix of the ships that are in at Newport News. When you talk about 2022 timeframe, those ships, as they run through, another three, four, five quarters, they'll be burning down risk and there'll be a potential there for increasing booking rates. Okay, great. I'll stick to one this morning. Thanks very much. Thank you. The next question comes from Ron Epstein with Bank of America. Please go ahead. Good morning, guys. Morning. Just quickly, could you give us an update on how things are proceeding with the Virginia-class? I know that's a program that you ran into some challenges in the last 18 months. How's it tracking now? Yeah, Ron, this is Chris. I'll start. If Mike wants to add on here, we'll do that. Really, the team performing well, and the partnership performing well. Montana is proceeding to delivery this year. New Jersey is proceeding to launch, and then delivery next year. The shops are executing on the modules to support assembly for the subsequent boats. Confident and comfortable with how the Block IV and Block V programs are executing right now. Mike, did you want to? Yeah. I would just say that, just moving to two per year in Block IV, and then adding in the Virginia Payload Module in Block V, success is going to depend on rhythm. What we have established here, Chris' team, and Jennifer at the shipyard are establishing right now is, they're establishing the rhythm and program that's going to make that successful. We were working that when COVID hit us last year, we kind of had to step back a little bit and reset. We're pretty excited right now about what's happening today, but also the rhythm that we're setting up for the rest of this program and the rest of the next program. I'm pretty excited about that. Got you. Maybe just another submarine question. Does the industrial base have enough manpower, labor right now to do the Virginia and the Columbia at the projected rates? Where any given year, if there's two Virginias delivered and a Columbia, so you get three subs, is there enough capacity in terms of qualified pipefitters to do that? Well, Ron, I guess, if you decided that everything was static and that you had to do all of that with the people that you have in the plant today, the answer is no. We don't have enough people in the plant today to do that. The fact is that since COVID began last March, we've hired 6,000 people and trained them. I will be forever remembered for saying that we can build capacity in the industry faster than the government can appropriate funding for it. If the government wants to move ahead with a higher rate of submarine production in a sustained way, not just doing it once in a while, but in some sort of sustained way, they want to go to three submarines a year, or three Virginia-class a year, or two Virginia-class and a Columbia a year, and they're going to sustain that for a period of time, we can absolutely have the workforce and the physical plant and the supply chain set up to go execute that. If you said that it's a light switch and starting in the FY 2022 budget, we're going to expand the buy from two to four, we'd probably have some startup pains there. We don't believe that's the way that's going to go. We believe that this is going to be done in concert. That's the history of it. I guess my own experience is that when you hear budget people talking about lack of capacity, what they really mean is that they don't have funding. That's kind of the way the industry looks at it. I think we can expand capacity if that's the plan, if it's a sustained thing. Got it. Thank you. You bet. The next question comes from Gautam Khanna with Cowen. Please go ahead. Hey, guys. I was wondering if you could talk a little bit about integration planning and sort of what the early milestones we should be thinking about on the Alion deal, to make sure that it's tracking to plan. Could you outline what you're doing, what you're planning in terms of integration, sort of what you hope to have accomplished by the end of the year with that deal? Yeah. Hopefully. Gautam, you got to be careful here, this is Chris, we're not closed yet, obviously. You don't want to get ahead of that. I will say there was a very detailed integration plan in place, and been working very well, with Alion in putting that plan in place. I'd also like to say that Alion leadership team is going to play a very prominent role in the leadership team of the combined company when we do get closed. We'll be able to report that, the status of the integration, on the Q3 call. I don't want to get in front of closing on that. Mike, I don't know if you want to add anything. I think all I would say is that we integrated Hydroid last year. We have a blueprint for how to go do that in an effective and efficient way. Obviously, this is a bigger one than Hydroid was, but the muscles are the same. I'm pretty excited about the opportunity to go do this. That'll be a lot of hard work by a lot of folks, but it'll be the right kind of stuff to do. We're certainly going to keep you posted on how it's going. Okay, and just as a follow-up, you talked about the $14 million benefit from the capital incentive this quarter. If I recall last quarter, you guys talked about Q2 and Q3 having fewer shipbuilding milestones, and I know this has been asked on the call, but just trying to get a sense for should we have thought about the potential for Q catch-ups, maybe last quarter as $35 million minus the $14 million. When we say not a lot of Q catch-up opportunities, is $20 million sort of the not a lot opportunity, or should we think of it as zero? There isn't a lot of risk retirement opportunities, because I guess that was sort of the upside that certainly relative to my expectations walking in today, was that there was an opportunity for a lot of favorable net adjustments. Yeah, I'll hop in then. You know. We give that guidance. We talk about, hey, milestones, hard milestones. Either milestones that if we hit the milestone, we take a step up. As we check the EACs, we sell a ship off, really defined milestones that will bring in additional margins. That's true when we guided in Q1, and it's true right now when I look at, if you punch through here Q2 into Q3. As I mentioned, there was 62 up, 27 down for a net of 35. The 62 is 14 of it, right? As you do the math of that, I guess we're asking, hey, $0 or $20 or $40 million a lot of catch-up. As I mentioned to you, 60/40 Ingalls versus Newport News there. Hey, just steady performance down at Ingalls, LHA, LPD programs. There wasn't a specific hard milestone, but as we come through our quarterly EAC processes, we check the burn rates and the risk registers and where we stand. The programs are running smoothly right now. I don't think out of ordinary performance there, and I think our guidance still holds true about Q3 is going to be light on milestones, and there's opportunities over the next six months to retire additional risk. Thanks a lot. The next question is from Noah Poponak with Goldman Sachs. Please go ahead. Hi, good morning, everyone. Morning. Tom, did you say you also had capital investment-related incentive in the first quarter? I may have said that, but now that you bring it up again, we had an ECP that we closed out, and I mistakenly said capital incentive. We had an ECP on a DDG program that cleaned up for us. Okay. I was going to say I was looking for that and I couldn't find it. Is that something that has the potential to occur often and it's usually small enough to not call out, or is that pretty unusual? We do have ECPs that close out from time to time. They're not big adjustments. That happened to be a rather larger adjustment than we've had. That kind of weighed into the Q1 timeframe. Same question on capital incentives. Fairly unusual to have a capital incentive that large. Okay. We work ourselves through as we come through on these ECPs that we provide proposals, we go to the table and negotiate. There's a balance of affordability and equity on these deals. As we work ourselves through, sometimes they take time, and then as we settle the deal, whether it's additional margin or capital incentive, we'll let The Street know when we close out, and we'll take the booking. Got it. Is there any other change to the previously provided 2021 guidance items outside of what you've mentioned on the shipbuilding margin? No. We're going to give additional guidance at Q3 as we close out. That not being in the release or the deck is mainly just a reiteration as opposed to something else. That's correct. Okay. Thanks very much. The next question comes from David Strauss with Barclays. Please go ahead. Thanks. Thanks for taking my question. Good morning. Morning. In terms of performance year to date, does it change anything about how you're thinking about the shipbuilding margin progression beyond 2021? I think you talked about low 8% in 2022 and then going up from there. Anything about the performance year to date gives you more confidence, maybe that could be a little bit better than that? No, I would say we're where we guided and where we expected to be. Our outlook right now on next year still holds. Okay. Tom, what has to happen from a working capital perspective over the next couple of years to be able to hit this $3 billion or $3.2 billion, I guess, with Alion included in it, that free cash flow target? What's that embed for working capital, and where specifically could the working capital upside come from? I think what we've always talked about is the working capital will be between 6% and 8%, so I think we'll continue to run our operations accordingly. The Alion portfolio, 85% is cost-plus contracts, so we don't see that as a drain from a working capital perspective as that gets integrated into the HII portfolio. The big drivers that we had highlighted, how that $3 billion and now $3.2 billion come about, were more from a function of the 3% CAGR from the revenue, the margin rates popping up from shipbuilding, the capital getting back to 2.5%, and then when you run through the math of that, the pension, we've kind of cleaned up with Safe Harbor, so there's not going to be fluctuations on that front. I think on a couple of calls, we've worked that through for you how $700 million on a run rate was attainable prior to Alion purchase. Okay, thinking on pension is still as kind of a net neutral CAS versus your contribution? Yeah. All right. Thank you very much. As a reminder, if you have a question, please press star then one. Our next question comes from Burkett Huey with Morningstar. Please go ahead. Hey, thank you so much for taking the question. Yeah. I was taking a look at the awards of $1.2 billion, and if you take out the servicing contract and I think another $100 million contract, you get to about $360 million and six unmanned awards. I'm wondering, is that a good way to think about the pricing point for UUVs, or am I not thinking about that right? Yeah. There's a number of awards across the corporation in that value for awards. We don't give specific values for the price points of all our UUVs. Yeah, I wouldn't necessarily think about it that way. Okay, thanks. Thank you. I'm not showing any further questions at this time. I would now like to hand the call back over to Mr. Petters for any closing remarks. Well, I just want to thank everybody for joining us this morning. We had a good, strong quarter. I'm pleased with where the leadership team is and where we're going. I hope that you and your families are able to stay safe, and that you're able to encourage everyone out there to go get your shots. That's what we need right now is everybody to get shots. Thank you all very much. We look forward to seeing you. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.