Good day, thank you for standing by. Welcome to the Q1 2022 Kadant Inc. Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star one on your telephone. Please be advised that today's conference is being recorded. If you require any further assistance, please press star zero. I will now hand the conference over to your first speaker today, Michael J. McKenney, Executive Vice President and Chief Financial Officer. Sir, you may begin. Thank you, Peter. Good morning, everyone, and welcome to Kadant's first quarter 2022 earnings call. With me on the call today is Jeff Powell, our President and Chief Executive Officer. Before we begin, let me read our safe harbor statement. Various remarks that we may make today about Kadant's future plans and expectations, financial and operating results and prospects are forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to known and unknown risks and uncertainties that may cause our actual results to differ materially from these forward-looking statements as a result of various important factors, including those outlined at the beginning of our slide presentation and those discussed under the heading Risk Factors in our annual report on Form 10-K for the fiscal year ended January 1, 2022, and subsequent filings with the Securities and Exchange Commission. In addition, any forward-looking statements we make during this webcast represent our views and estimates only as of today. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so even if our views or estimates change. During this webcast, we refer to some non-GAAP financial measures. These non-GAAP measures are not prepared in accordance with generally accepted accounting principles. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures is contained in our first quarter earnings press release and the slides presented on the webcast and discussed in the conference call, which are available in the Investors section of our website at www.kadant.com. Finally, I wanted to note that when we refer to GAAP earnings per share or EPS and adjusted EPS on this call, we're referring to each of these measures as calculated on a diluted basis. With that, I'll turn the call over to Jeff Powell, who will give you an update on Kadant's business and future prospects. Following Jeff's remarks, I will give an overview of our financial results for the quarter, and we will then have a Q&A session. Jeff? Thanks, Mike. Hello, everyone. Thank you for joining us this morning to review our first quarter results and discuss our business outlook for 2022. We had an excellent start to 2022 with high demand for our parts and robust capital project activity, which led to record bookings, revenue, and adjusted EBITDA in the first quarter. Business activity was strong in most regions of the world, and new order activity was driven by solid demand across all our operating segments. Capital project activity continued its momentum from last quarter, and this was especially true in our Industrial Processing segment, which had another great quarterly performance. I'll provide more details on that when I review our operating segments. Overall, our healthy balance sheet and strong cash flow have us positioned well to capitalize on growth opportunities. Before moving on to our Q1 financial performance, I want to comment on the global supply chain and how we are continuing to manage this complex situation. Ongoing constraints throughout the global supply chain have continued to push out expected deliveries of materials and components. These challenges have been further affected by the more recent shutdowns in China, with that country's busiest port severely limited for an extended period. While our decentralized structure helps us to alleviate these temporary shutdowns and logistical delays, the interconnected global supply chain continues to be a challenge, creating significant work to keep our delivery promises to our customers. Our operations teams are proactively managing these issues and working tirelessly to meet our customers' needs. This resilience is reflected in our first quarter operating results and the solid execution by our businesses. Turning now to slide six and our Q1 financial performance. You can see we had significant increases across these financial metrics compared to Q1 of last year. One of the more notable highlights was our record bookings performance, up 30% compared to last year. Q1 revenue was up 31% compared to the first quarter of 2021 to a record $226 million. Excluding acquisitions and the unfavorable impact of FX, revenue was up 22% compared to the same period last year. Our aftermarket parts revenue was up 24% to a record 146 million and made up 65% of Q1 revenue. Improved operating performance led to our adjusted EBITDA margin of 20.2% and record adjusted EBITDA of $46 million. All our operating segments delivered excellent adjusted EBITDA margin performance despite inflationary pressures for materials and ongoing supply chain issues. We generated 3.53 of GAAP diluted EPS, which included a gain on the sale of a building, and our adjusted EPS was up 49% to $2.28. Cash flow in Q1, which is historically a weaker quarter, increased 24% compared to the same period last year to $24 million, while our free cash flow was 21 million. All three of our operating segments experienced increased business activity and delivered solid financial results. I'll review these segments next. Our Flow Control segment achieved its third consecutive increase in quarterly bookings and set a new bookings record at $100 million. This performance was led by strong contribution from aftermarket parts orders and our recent acquisition. Excluding our acquisition and the unfavorable impact of FX, bookings were up 18% compared to the same period last year. Q1 revenue was also a record, up 35% compared to the first quarter of last year to $86 million, while organic revenue, which excludes acquisitions and FX, was up 18%. Improved operating leverage led to a 33% increase in adjusted EBITDA compared to Q1 of 2021 and an adjusted EBITDA margin of 28%. Although we expect to deliver another record-setting performance this year in our Flow Control segment, the strong start to the year is expected to moderate as the year progresses for several reasons. The first one is seasonality. As many of you know, the first quarter of the year is historically our strongest quarter in terms of bookings as our customers prepare for annual spring maintenance shutdowns. Second, the strength in the economic headwinds and the Russian-Ukraine conflict lead us to believe business activity in the latter part of the year could moderate. That said, we believe the fundamental drivers of our core end markets remain strong. Turning now to our Industrial Processing segment, we continue to experience strong demand for both capital and parts in the first quarter. Q1 bookings increased 23% compared to the prior year, with robust capital project activity in the recycled packaging and wood processing sectors leading the growth. Revenue in this segment increased 35% to 93 million as our customers continued to experience strong end market demand and maintained high operating rates to meet that demand. Good execution and improved operating leverage led to a 260 basis point improvement in our adjusted EBITDA margin. Our wood processing and packaging customers have been investing at an accelerated pace over the past 18 months to meet customer demand. As more capacity comes online later this year, capital project activity is expected to return to a more balanced level compared to the record-setting pace we have been experiencing. An area where we are seeing growing interest is the application of OSB as a substitute for medium density fiberboard, also known as MDF, used in furniture. This is particularly evident in China, where a growing number of furniture manufacturers are exploring the use of OSB in furniture production. So far this year, we have booked orders for six stranding systems from producers in China and are in active discussions for several more projects. We currently have nine of our Strander operating in China, and once these 6 additional machines are up and running, we will have 15 OSB production lines operating in China. This emerging market segment has potential to develop rapidly once the application is proven successful, and we are encouraged by the activity already this year. In our Material Handling segment, strong demand for our balers and bulk material handling equipment led to record bookings of $60 million in the first quarter. While this increase benefited from our recent acquisition, organic bookings were up 23%. Demand for our high-performance balers was excellent as box plants and distribution centers continued to invest in their facilities. Revenue increased 20% to $48 million, and parts revenue in the first quarter made up 61% of total revenue. Excluding our acquisition and FX, Q1 revenue was up 4% compared to the relatively strong prior year quarter. Adjusted EBITDA margin increased 230 basis points and is expected to benefit from improved operating performance as the year progresses. As we look ahead to the second quarter of 2022 and the full year, ongoing project activity is healthy, and we expect industrial production to maintain its momentum. Our record backlog and ability to generate robust cash flows has us well positioned to capitalize on opportunities that may emerge as the year unfolds. We expect to deliver record financial performance again this year and are raising our full year 2022 guidance. Mike will discuss this in more detail. With that, I'll turn the call over to Mike. Thank you, Jeff. I'll start with some key financial metrics from our first quarter. Consolidated gross margins were 43.4% in the first quarter of 2022, down 50 basis points compared to 43.9% in the first quarter of 2021. This decrease was due to a lower overall percentage of parts and consumables revenue, which represented 65% of revenue in the first quarter of 2022 compared to 68% in the prior year, partially offset by higher gross margin profile from our acquisitions. SG&A expenses were 59.2 million in the first quarter of 2022, an increase of 9.8 million compared to 49.4 million in the first quarter of 2021. The first quarter of 2022 SG&A includes 6.1 million in SG&A from our acquisitions, 1.3 million of non-recurring, non-cash acquisition-related costs, and 0.9 million favorable effect from foreign currency translation. The remaining increase in SG&A is primarily associated with increased compensation expense related to wages and additional headcount and increased selling costs associated with improved business conditions compared to the first quarter of 2021. As a percentage of revenue, SG&A expenses decreased to 26.1% in the first quarter of 2022 compared to 28.7% in the prior year period. Our diluted EPS was $3.53 in the first quarter compared to $1.43 in the first quarter of 2021. Our diluted EPS in the first quarter of 2022 includes a $1.30 gain on the sale of one of our Chinese facilities related to a relocation project, 0.04 in acquisition-related costs, and a 0.01 impairment charge. As we outlined in our February earnings call, we reached an agreement with the local government in China to buy our existing facility that supports our stock preparation product line, and over the next two years, we will build and move to a new facility. Final down payment related to the sale of the facility was received from the government, and this agreement became effective in the first quarter, resulting in a 20.2 million pre-tax gain on sale, or a $1.30 per diluted share after tax. We have received a 31% down payment and the remaining proceeds from the sale of the facility will be due at the earlier of when the government sells the property or within two years of the effective date of the agreement. We currently estimate the CapEx for this project to be approximately $20 million, with most of the CapEx costs being incurred over the next 18 months. The proceeds from selling the facility will pay for the new facility and the relocation costs that will be incurred. Our adjusted diluted EPS was $2.28 in the first quarter of 2022 and exceeded the high end of our guidance range by 0.18 due to higher revenue and a lower tax rate than forecast. Tax rate in the first quarter was 24.4% and included approximately 0.07 of tax benefits related to the vesting of equity awards and a change in tax reserves associated with uncertain tax positions. In addition, the tax provision included a $0.6 million benefit from the reversal of a tax reserve, which is offset by a corresponding expense in SG&A related to the reversal of an indemnification asset. Excluding these items, our tax rate would have been 27%. Adjusted EBITDA increased 41% to a record 45.8 million compared to 32.4 million in the first quarter of 2021 due to strong performance in all our segments. As a percentage of revenue, adjusted EBITDA increased to 20.2% compared to 18.8% in the first quarter of 2021 due to improved performance in our Industrial Processing and Material Handling segments. Operating cash flow increased 24% to 23.8 million in the first quarter of 2022 compared to 19.1 million in the first quarter of 2021. Historically, the first quarter has been a weak quarter for operating cash flows. This represents a strong start for 2022 with both operating and free cash flow being our highest first quarter performance. We had several notable non-operating uses of cash in the first quarter of 2022. We paid down debt by 19.2 million, paid 2.9 million for capital expenditures, paid a 2.9 million dividend on our common stock, and paid 4.6 million in tax withholding payments related to the vesting of stock awards. Free cash flow increased 24% to 20.9 million in the first quarter of 2022 compared to 16.8 million in the first quarter of 2021. Let me turn next to our EPS results for the quarter. In the first quarter of 2022, GAAP diluted earnings per share was $3.53, and adjusted diluted EPS was $2.28. In the first quarter of 2021, GAAP diluted earnings per share was $1.43, and after adding back 0.10 of acquisition costs, adjusted diluted EPS was $1.53. As shown in the chart, the increase of 0.75 in adjusted diluted EPS in the first quarter of 2022 compared to the first quarter of 2021 consists of the following, 0.96 due to higher revenue, 0.16 from acquisitions net of interest expense on acquisition borrowings, 0.02 due to lower interest expense, and 0.01 from a lower recurring tax rate. These increases were partially offset by 0.26 due to higher operating costs, 0.09 due to a lower gross margin percentage, and 0.04 due to government assistance programs in the prior period, and 0.01 due to higher weighted average shares outstanding. Collectively included in all the categories I just mentioned was an unfavorable foreign currency translation effect of 0.04 in the first quarter of 2022 compared to the first quarter of last year due to the strengthening of the U.S. dollar. Looking at our liquidity metrics on slide 15, our cash conversion days, which we calculate by taking days in receivables plus days in inventory and subtracting days in accounts payable, decreased to 104 at the end of the first quarter of 2022 compared to 123 at the end of the first quarter of 2021. This decrease was driven by a higher number of days in accounts payable. Working capital as a percentage of revenue was 10.8% in the first quarter of 2022 compared to 15.1% in the first quarter of 2021. Our net debt, that is debt less cash, decreased 16 million or 9% sequentially to 159 million at the end of the first quarter of 2022. In the first quarter, we continued our pattern of paying down our debt, and we were able to further lower our leverage ratio, calculated in accordance with our credit agreement to 1.16 at the end of the first quarter of 2022, compared to 1.34 at the end of 2021 and 1.5 at the end of the first quarter of 2021. At the end of the first quarter of 2022, we had 170 million in borrowing capacity available under our revolving credit facility, which matures in December of 2023. Now let's review our updated guidance for 2022. As a result of our strong start to the year, we are increasing our full-year revenue guidance to 885 million-905 million from 870 million-890 million, and we are increasing our adjusted diluted EPS guidance for the full year to $8.80-$9.00 from $8.55-$8.75. The adjusted diluted EPS guidance excludes the $1.30 gain on the sale from the facility in China and the associated 0.01 impairment charge, as well as the 0.04 of acquisition-related costs. Our revenue guidance for the second quarter of 2022 is 215 million-220 million, and our EPS guidance is $1.86-$1.96. As always, I will caution here that there could be some choppiness and variability in our quarterly results due to several factors, including the variability of order flow and the timing of capital shipments. In addition, other risks that could impact our guidance include supply chain challenges, strengthening of the U.S. dollar, geopolitical tensions, inflation, and China's zero-COVID policy. The 2022 guidance includes an unfavorable foreign currency translation impact of approximately 14 million in revenue and 0.14 on adjusted diluted EPS due to the strengthening of the U.S. dollar. As a result of the increase in revenue guidance and with the mix moving a little more towards capital, we now anticipate gross margins for 2022 will be close to 43.0%. In addition, as I had mentioned during the Q&A on our last call, we anticipate second quarter gross margins will be approximately 42.5% as a result of capital gross margins on forecasted revenue in the quarter. As a percentage of revenue, we still anticipate SG&A will be approximately 25%-25.5%, and R&D expense will be approximately 1.5% of revenue. We expect our tax rate for the remaining quarters will be approximately 28% in 2022, and we continue to expect depreciation and amortization will be approximately 36 million-37 million. We continue to anticipate regular CapEx spending in 2022 to be approximately 2% of revenue. In addition to that amount, we estimate CapEx related to the China facility relocation project will be approximately 12 million in 2022. That concludes my review of the financials, and I will now turn the call back over to the operator for our Q&A session. Operator? Thank you. As a reminder, to ask a question, you will need to press star one on your telephone. Again, that is star, then the number one. To withdraw your question, press the pound key. Please stand by while we compile the Q&A roster. Your first question will come from Chris Howe with Barrington Research. Your line is open. Good morning, Jeff. Good morning, Mike. Chris, morning, Chris. Morning. As it relates to the business outlook for fiscal year 2022, whether qualitative or quantitative, you discuss again the different challenges that we're seeing in this environment as it relates to order flow and the timing of capital shipments, supply chain constraints, foreign currency, geopolitical, and then lastly, the zero-COVID policy. Leading off with the zero-COVID policy, can you kind of describe what your thoughts are in the region and what you're hearing from on the ground? Is it potential for worsening there as it relates to China and the zero-COVID policy? Or what's the latest on that? Yeah, I know it's very interesting, Chris, because we have, as you know, a very large employee base over there. I don't know what it is—the count is now, but it's probably over 400 employees. To our knowledge, we've not had a single employee get COVID. Of course, we're here in the U.S. They're estimating maybe 60% of the population has contracted COVID. They have really adhered to a pretty strict program over there that as soon as an individual tests positive, they get isolated, and it's common for them to isolate the town and the region if they have a bit of an outbreak. It's a challenge, you know, if you think about our. We may have suppliers that are in a region that is under quarantine for a period of time, so it's slowing down, you know, the delivery of materials that we need. Also, you know, for workers, be they our workers or workers of our suppliers, if there's an outbreak in your apartment complex, you're quarantined for two-four weeks. They don't let anybody leave the complex. It's fairly, you know, I would say, draconian relative to the rest of the world. You know, I guess it's been effective if your goal is to have zero-COVID infections, well, within our employee base, they've achieved that, but you do it at, you know, at some cost, which is slowing and interruptions within the economy. It's something that, you know, is a challenge for us. You know, our employees so far have done a great job in finding alternative suppliers and working around and through this, trying to stay ahead of our material needs from an inventory management standpoint. You know, it's just so uncertain. You just don't know where and if an outbreak's going to occur and how that might impact you going forward. It's probably one of our biggest uncertainties, I would say, around the world right now, is the China COVID policy. That's very helpful. Staying along general themes, you mentioned in the Industrial Processing segment, the transition from OS to OSB from MDF as it relates to furniture. You mentioned six stranding systems being put into place, nine existing, a total of 15. How should I rightly think about this long-term opportunity, for furniture? I would say we're in the somewhat early stages of them evaluating this. You know, we sold our first systems in there, I think, in around 2013, and we've got some subsequent orders from that customer. Now it seems to be starting. Then it was, you know, there was a lot of activity before COVID hit. When COVID hit, things got quiet for, I would say, you know, two years. Then all of a sudden, they started back up again. As is often the case in China, when things get moving, they can go quite quickly. All of a sudden, the activity level has been quite high, you know, with these orders. The six systems that we've booked so far this year, you know, came quickly, and some of them actually weren't even in our, on our pipeline. They weren't on our radar. You know, it's one of these things where once China decides, because they have such, you know, they have such a massive manufacturing base there, once they decide to do something, the order flow can be, you know, has the potential to be quite significant. We're in the early stages, but I think we're quite encouraged. We do think OSB is a better product than MDF. It's lighter, it's sturdier. There's a lot of plusses to that. We think there is the potential for them to continue transitioning over to that as a material, you know, of construction for furniture. You know, it has potential of being quite large. If they were to fully embrace it and really start to convert a lot over, you know, it could be a fairly significant new market for us. Okay. My last question before I hop back into the queue. Mike, you mentioned the Q2 gross margin pressure just based on higher capital orders. There was a change to the revenue guidance to the upside. As we look at the last nine months of the year, any change to the commentary you previously stated on the last conference call as it relates to revenue? First, you mentioned an even split between the first half and second half, with the strongest quarters being Q2 and Q3 in combination, as well as better operating leverage in the second half. Is that still consistent? Good question, Chris. Yeah, I would say, the update on that is, now, the second half of the year has really firmed up. Whereas when we gave the guidance in February, it was relatively evenly split. Now the second half of the year is stronger, and the operating margins as a result of the better operating leverage have also improved. The back half of the year is going to be stronger for us than the front half year. Perfect. Thank you for taking my questions. Your next question will come from Bobby Eubank with Chevy Chase Trust. Your line is open. Good morning, guys. Congrats on a solid execution in a very challenged environment and, you know, appreciate the conservatism in your commentary. Look, you've talked in the past about your 80/20 pricing. Can you kind of walk through what type of inflationary inputs you're seeing in your ability to continue to pass through, you know, these extreme raw material increases? Thanks, guys. Yeah. Thanks, Bobby. You know, as you know, the 80/20 program kind of looks at your profitability by product and by customer, and you take some pricing action as a result of that. What we've experienced, I think what you're alluding to right now, is that we're in an unusual period, certainly for the last 30 or 40 years, where we're seeing fairly significant cost increases on our raw materials. As I've said before, we always work very hard to try to minimize the cost that we have to pass on to our customer. You know, that's part of our value proposition. Because we manufacture everything from basic raw materials, we don't buy, you know, we're not somebody that buys subassemblies and just assembles them. We're primarily manufacturing. We have a little more control over that than you might if you're subbing a lot of your manufacturing out to others. That being said, we certainly have experienced cost increases, and in many cases, we've had to pass those on to our customers. Our customers, of course, are experiencing that across the board. It's not a big surprise. They too are passing on their cost increases to their customers. We're just in this general environment right now where inflationary pressures are really, you know, really increasing kind of pricing across the board throughout the supply chain. I think they understand, you know, what we're dealing with. As I said, we work hard to try to minimize the impact of that. They, you know, they certainly understand that there are instances where the costs have gone up considerably, and we have no other alternative other than to pass those costs on to them. Makes a lot of sense. Could you maybe give some high-level commentary around expectations for Material Handling segment in the second half of the year and maybe into 2023? We have the infrastructure bill here in the U.S. Of course, the recycling component of that has been very strong, but more on the maybe mining and aggregate side and the outlook there. Yes, we had a very strong first quarter on that particular side of the business, on the mining and aggregate side. I think the general sentiment from our operating team there is that there's a sense of optimism. You know, there is the new infrastructure bill. A lot of that money has not been spent yet, but people are getting prepared for that. They're starting to make investments in their operations so that they can meet the demand when that does occur. I think there's you know, kind of a, as I said, a level of optimism that we're going to see some increases in demand over the next few years. The other thing that's happened is, of course, with the Russia-Ukraine conflict, a lot of raw materials come from that region. With the sanctions on those, we're seeing customers have to start to make investments and ramp up production to replace that lost supply chain. You know, things like potash, there's certain raw materials that Russia and Ukraine were major exporters of. When that goes away, the rest of the market has to try to ramp up, you know, their production to replace that loss. We're starting to see that, and our customers are starting to make some investments. We're in discussions with customers on projects that are, you know, that are really the result of that conflict. You know, that's a kind of a market disruption that will force some increase in production and some shifting of production. Yep. Makes a lot of sense. My kind of final question, and I have maybe one follow-up to that, but you know, the acquisition pipeline remains healthy. Any kind of near-term things that we should be expecting? Well, as you know, we're always our corporate development team is always very busy looking and talking to as many, sometimes tracking as many as a couple hundred companies, trying to find ones that are a good strategic fit for us. You know, we have two fairly high hurdles. One, it has to be a good strategic fit for us. Second is it has to be an acquisition that we think we can create value with, you know, through the combination of the price we pay and the improvements we might be able to make in the business. They're fairly high hurdles. You know, that couple hundred companies quickly gets funneled down to a much smaller number. That being said, you know, our balance sheet is in good shape. We're generating a lot of free cash. There's a fairly healthy pipeline of opportunities out there. You know, during the pandemic, of course, things were quite slow for a year and a half or so. There was some deals that you know came to the market that were just sitting there waiting for things to recover. Of course, you know, companies are operating at a fairly high level, and some people want to take advantage of their you know good performance to sell the business. You know, there's a healthy activity level out there. The challenge for us is always find something that's a good fit at a reasonable price. We're- Sure. We're working hard on it, and we're, you know, we never really slow down that effort. It's kind of a continual effort. Makes a lot of sense. Last, you mentioned the challenges of operating factories all around the world. Is there any trend between you and your customers on kind of evaluating supply chains or nearshoring or anything like that? Thanks so much. Well, when you get into environments like this, you know, everybody's searching for supplies everywhere in the world. You know, you get quite flexible in where you're going to get things. I would say, you know, there's the principal concern our customers have right now is, you know, can you meet deliveries? In some cases, can you deliver at all? Because they're running very high operating rates, so they're consuming a lot, you know, there's a lot of consumables and a lot of parts that are being used up. The first thing they want to know is just to make sure that we can continue to supply them. In some cases, you know, we'll run a higher inventory level to give them assurance. In some cases, they're running higher inventory levels, so they know they have more, parts, and consumables on the shelf, available when needed. Yeah, I'd say there's a lot of discussion, a lot of activity going on between us and our customers when you're in an environment like this. Thanks. That's all for me, guys. Again, if you would like to ask a question, you may press star one on your telephone. Your next question will come from Walter Liptak with Seaport Global. Your line is open. Hey, good morning, guys. Great quarter. Hi, Walt. Thank you, Walt. Let me try a couple of follow-ups. You know, one on pricing. You know, it seems like price cost, the inflation, you guys are doing a great job with it. I wonder if I could ask about how are you doing your price increases? 'Cause I think, you know, in the industrial landscape, we see all kinds of things. Surcharges, you know, annual price increases, periodic or related to projects. You know, I wonder if you could give us some insight into how you're doing it because you are making it look easier than what we've seen from some other companies. Thanks, Walt. Well, we're, you know, some of those things you mentioned are exactly what we're doing. Our folks are very connected to their input costs. They monitor that very closely and are making adjustments accordingly, including things that you just noted, putting in place trying to contractually limit the amount of time quotes are available and putting in place surcharges where those will adhere. I think for us, our parts and consumables turn quite quickly, so they don't sit in backlog very long, and that's the area that we can quickly adjust to. The area we probably have the most exposure on is in capital, where we could take an order, and even though we've limited the amount of time that the quote is open for to protect ourselves and when we get the order, we'll try to lock in pricing for the material. But if that order is in our backlog for six-nine months and we haven't been able to secure all the components, we do have some exposure there. But we are. Our folks are working all the levers, and they're. It's quite a dynamic environment, so they are monitoring it closely, continuously. Yeah. Walt, I might add also that, you know, this is where our decentralized structure really, really helps us because as you might imagine, supply chain issues and even inflationary issues are quite different, you know, around the world, South America versus Asia, Europe, and North America. With our decentralized structure, you know, we've got all of our divisions focusing on this every day based on the local conditions they're experiencing on the ground. You know, you've got, it's kind of like a force multiplier. You've got a large number of people around the world that are focusing on this every day, and that kind of makes it a little more manageable for us. Okay, great. Thanks for that. Just the last one on the those OSB projects out in China. Can you give us a ballpark of what the value of, like, one OSB line would be? You know, they obviously, as you might imagine, it kind of depends on everything that they buy with them, but they can be, you know, they'll often buy two Strander at a time. You know, normally our orders tend to fall between $2 million and $4 million per order for OSB stuff. Tends to be the case. Sometimes a little less, depending on, you know, the options they're picking up with it. Okay, great. Okay, thank you. Again, if you would like to ask a question, you may press star one on your telephone. I'm showing no further questions at this time. I will now hand it back over to Jeff Powell for closing remarks. Thanks, Peter. Before wrapping up the call, I just wanted to leave you with a few takeaways. The first quarter was an excellent start to 2022, with high demand for our parts and robust capital project activity, which led to record bookings and revenue. Although there are increasing economic and socio-political headwinds present, our employees around the globe continue to focus on meeting our customers' needs with innovative technologies and solutions that drive sustainable industrial processing and deliver long-term value to our stakeholders. Our financial health is excellent, and our ability to generate strong free cash flow remains a cornerstone of our business model. We look forward to delivering exceptional value for all our stakeholders again in 2022. We want to thank you for joining the call today, and please stay safe. This concludes today's conference call. Thank you for participating. You may now disconnect.