Hello, welcome to P&F Industries first quarter of 2023 earnings call. My name is Melissa, and I will be your coordinator for today's event. Please note, this conference is being recorded and for the duration of the call, your lines will be listen only. However, you will have the opportunity to ask questions towards the end of the call. This can be done by pressing star one on your telephone keypad to register your question. If you require assistance at any point, please press star zero and you will be connected to an operator. I will now hand you over to your host, Mr. Richard Goodman, P&F General Counsel, to begin today's conference. Thank you. Mr. Goodman, please take it away. Thank you, operator. Good morning and welcome to P&F Industries first quarter 2023 conference call. With us today from management are Richard Horowitz, Chairman, President, and Chief Executive Officer, and Joseph Molino, Chief Operating Officer and Chief Financial Officer. Before we get started, I'd like to remind you that any Forward-Looking Statements discussed on today's call by our management, including those related to the company's future performance and outlook, based upon the company's historical performance and current plan estimates and expectations, which are subject to various risks and uncertainties and could cause the company's actual results for future periods to differ materially from those expressed in any Forward-Looking Statement made by or on behalf of the company. These risks, factors, and uncertainties are described in today's press release under Forward-Looking Statements as well as in our most recent SEC filings, which you can find on the company's website, including our 2022 annual report on Form 10-K, our quarterly reports on Form 10-Q, and other documents. Forward-looking statements speak only as of the date on which they are made, and the company undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future developments or otherwise. I would also like to remind all participants on this call that as we've been doing for the past several conference calls, with respect to the question and answer portion of today's conference call, the length of the questions from any particular stockholder or other caller, together with management's responses, are limited to 20 minutes. Additionally, please be aware that during the question and answer session, management will only answer questions directly related to the company's first quarter 2023 results of operation and financial condition, as disclosed in the press release published earlier today. We must insist that you adhere to this procedure. Management will not be entertaining any questions that go beyond the scope of this call. With that, I would now like to turn the call over to Richard Horowitz. Good morning, Richard. Good morning. Thank you, Richie. Good morning, everybody. Thank you all for joining us this morning to discuss P&F results for the three-month period ending March 31, 2023. I hope you're all doing well as this country and the world continues to face the ongoing economic pressures and the ongoing crisis in Ukraine, as well as tensions with China and Russia. We pray for a peaceful end to all these conflicts. I would also like to direct your attention to the company's press release that was released earlier today, which includes the company's March 31, 2023 balance sheet, statement of operations, statement of cash flows, and a discussion related to the company's results for the three-month period ending March 31 of this year, and how these results compare to the same period in 2022. Further, I wish to highlight a number of key factors that impacted our first quarter 2023 results. There was significant improvement in Hy-Tech's revenue and gross margin. The gross margin in Florida P neumatic improved as well. Our consolidated operating expenses were essentially flat compared to the first quarter of 2022. Rising interest rates, which we're all quite familiar with, was the primary cause of the increase in interest expense. Finally, in order to make better use of everybody's time, yet be mindful of the purpose of this conference call, I would like to remind you all of the following, and as Richard just said as well, maybe a little redundant. First, as has become our standard practice, we will move directly to a question and answer session and not restate what is already in this morning's press release. Secondly, please be aware that we will only be answering questions directly related to the company's first quarter results and the financial condition. We must insist you adhere to this procedure. Finally, please be mindful of the 20-minute time limit, as previously noted, which we plan to enforce. To the extent shareholders and other callers with pertinent questions have multiple questions, please complete your portion of the Q&A within the 20-minute limit, and then we will move on to the next questioneer. With that, we will be happy to answer any pertinent questions that any stockholder or person on the call may have. Operator? Operator? Hello. As a reminder, if you have a question, you may press star two, or star one on your telephone keypad. We'll take a moment just to see if we have any questions. We currently have no questions coming through. As a reminder, if you have a question, you could press star one. You may press star one on your telephone keypad. We do have a question coming through from Timothy Stabosz, a private investor. Timothy, you can go ahead. Good morning, everyone. Can you hear me? Yes. Great. good morning. I own about 4% of the company. congratulations, It's been a long time coming. Lots more work to do, but a return to material profitability. congratulations, first of all. Thank you. Thank you. Can you give us, I was looking through the press release. I didn't see too much as far as guidance or anything. I know you don't give formal guidance, but, you know, it's certainly worth asking you fellows, your sentiments. How do you feel? I mean, there's some sense in the press release that, you know, things are looking good, and obviously there's potential upside with Air Max and other areas too. How are you feeling about things? Is this the most optimistic we felt in, you know, since 2019? This is not your first call, and I certainly know that you know how these things go. We do not give projections, and giving opinions is a projection. We can't do that. Now that sounds like a party. That sounds like a. What we said- That sounds like a party, a party. Tim, please let me speak for a minute, Tim. What we said in the press release- Well, I feel like you are kinda nasty. You kinda were nasty with me, and I don't think it was necessary. No, I'm not. Let me speak, please. I'm enthusiastic. My question was enthusiastic. My question was congratulatory. My question. I've been around a long time. I was trying to commiserate and be close and with you guys, and I get the gate crashing down. It's inappropriate, and I don't appreciate it. No. I'm not asking for formal guidance. I'm asking for a sense of how you feel. If you can't tell me how you feel, that's an insult. No, it's not. If you can't be vulnerable enough with me on an open-ended question to connect with you as my CEO when I own 4% of the company, then shame on you. I'm sorry, but it's just not right. you know, how you feel. I didn't quite hear you. No. I didn't need a formalistic answer that was legalistic, to a question that was inclusionary and welcoming and warm. Maybe you can try to answer the question differently. I would respectfully ask you to try to answer the question differently. Maybe I'll be more specific since you apparently don't know how to be emotionally vulnerable and connect with people. You mentioned three specific things in the press release. You mentioned three specific things that were problematic or that have created headwinds for the company. Obviously inflation. You say increasing inflation. You misspoke in the press release. You should have said it's decreasing inflation now. You know, yeah, there's still inflation issues. It's not increasing, by the way, so you might change that reference next time. You mentioned inflation, and you mentioned international supply chain, and you mentioned domestic transportation. The specific question I have for you, since we're so boilerplate here and so boring, can you give me a qualitative sense? Please don't stiff on me again, okay? Can you give me a qualitative sense? Maybe Joe can answer this. I prefer a quantitative sense, but give me a qualitative sense since, you know, we already know what happens when I ask questions that are too specific or whatever, of how you think those factors, how materially those three factors that you bring up at the beginning of the press release are a drag on the company's potential profitability. That when those reverse to normal, or if you estimated that they were more normalized, how much more profit will we be? I'm not asking for quantitativeness. I'm asking for an anecdotal sense of a basis for, like, your optimism for the future because, hey, wow, last time around in 2019, we didn't have this crap going on, these three things you mentioned. I'm asking for kind of like an anecdotal sense, not guidance, not predictions, but a sense of those specific three things that you mentioned and pointed out, how, you know, how you feel about the potential for the reversal of those three things to allow us to continue to have material improvement. How's that? Is that fair, or is that something I need to be stiff on then? Joe, you can answer the question. Yeah, let me do my best, Tim. Going back to your original comment about increasing inflation, look, I would agree that I think things are maxing out. During the first quarter, we were still seeing some inflation. That's a general comment. I would say for us, our input costs were directly still, you know, trickling up. I don't want to quibble over whether it was increasing, you know, and it stopped in April. Let me just say this. Okay. We certainly were seeing an environment of increasing input prices throughout, certainly in the very first half of, 2022. We really didn't right size, if that's the word, the pricing until the back half of 2022. As we're now anniversarying a quarter where I felt like we feel like we were behind last Q1, so there's a benefit there, obviously. We got caught up. On the transportation end, certainly the cost of transporting across the ocean, I don't have the exact figures in front of me, but I think we're pretty close to pre-pandemic levels. Certainly 12 months ago, Q1 of 2022, we were still very high. So obviously that's a benefit. You know, I would say transportation costs might be a couple of% of the cost of the product. You know, if things get cut in half, you could kind of do the math on the benefit there. I'm sorry, I don't remember your third area that you wanted me to address. I apologize. What was the third one? Well, inflation, transportation costs toward the beginning of the press release, inflation, transportation costs and international supply chain. Well, you know, the supply chain is solid. We are still seeing some delays in overseas deliveries. Nothing that we haven't been able to manage. It's really a non, you know, non-factor. A little inconvenient. It's really a non-issue at this point. Oh, really? Okay. Do you, in essence, view these, kind of four items, again, you put trends and uncertainties towards the, Well, not the very beginning of the press release, but do you view them international supply chain, which I guess is mostly resolved at this point, but I mean? Yeah. Do you view domestic transportation costs, international supply chain inflation and, well, Boeing as all now essentially tailwinds and not headwinds in the direction they're moving? Yeah. True for most. They're not tailwinds. Boeing as publicly disclosed by them, has plans to increase production over the next 12- 24 months in a pretty dramatic way. As we said, they're one of our largest customers. As Boeing goes, our aerospace business goes. We're pretty excited about at least what they've said. You know, we'll see how that pans out, but I'm rooting for them. We're excited about that. What we see is that opportunity. Yeah. again, there's material profitability here. I presume that's heartening and exciting to you guys, yes? Yeah. We're, you know, my records go back pretty far and it was a heck of a quarter, going back quite a number of years on a relative. How does this... It's one quarter obviously, but it sounds like there's some optimism, speaking very broadly. How does this alter or how has this altered, if at all, your view of, you know, further acquisitions or the broad issue of capital allocation, actually probably bring in, you know, you're profitable, as far as ramping up the dividend, doing a Dutch tender buyback. Stock's pretty cheap here, perennially cheap. Making acquisitions. Has your tone and tenor at the board level or the attitude of management, you know, probably Richard, whichever one you want to answer or can answer, has that changed or do you view new opportunities as we're presumably more optimistic about the company? We are always, Tim, we are always in the market looking for acquisitions, and we continue to do so. That has not changed at all. Is that your question? Capital allocation more broadly as it relates to the fact that we have this earnings report that we're releasing today. Any more nuanced view on capital allocation? I mean, you did a great job buying back stock from, you know, in the open market over the... I'm sorry, well, from private shareholders, including me in the past, which, you know, is great accrual of value for everyone who remains. I was able to get back in the stock. I like the company here. How do you... At the risk of incurring your ire, how do you view buybacks at this point? We've discussed it. We just continue to discuss it at each and every board meeting. At this time, the board feels very comfortable with, you know, allocating our funds for other things right now, saving it for acquisitions, et cetera, et cetera. Can you hear me? I hear a click. I'm not so. Yeah. Can you hear me okay? Yeah. Yeah. Yeah. Yeah. Okay. How much time do I have left? I mean, we review it regularly at all the board meetings. At this time, we're not so focused on stock buyback even though it is underpriced, we feel as well. That's not where we feel the allocation is right now. That can change, of course. Um- We have a board meeting this month, and it can change again, but we review it every month, every board meeting. Okay, I appreciate that. Broadly speaking, are you seeing more opportunities? I won't say, are your eyes popping out of your head, but are you seeing more opportunities and a little more, not excited, but in the acquisition space, about what you're seeing with, you know, what's going on in the economy? We're not seeing any more or any less, but we are seeing less optimistic stories, less earnings for these companies. Historically, it's been, now it's less. So, you know, values are coming down a little bit, but nothing really. Joe, you wanna answer that? Yeah, I don't know that the landscape on the acquisition side has changed dramatically. I don't know that we see that that's our fastest way to growth here in the short run. I'm sorry. Sometimes I'm kind of. You don't I don't think that's necessarily the fastest way to growth. We've got a lot of things we're working on, new products, trying to expand in Europe, some customers that are large customers that we feel are deeply embedded in some nice trends. We just have a lot going on, internally, organically that we're excited about. I mean, we're still not 100%, you know, absorbed with the Gear acquisition. I mean, it's integrated, but now it's time to do something with that integration. There's a lot of internal focus right now. As Richard said, we're not gonna turn down an acquisition that might come across our desk. We don't have, you know, we don't have a massive project going on to search out a company just to buy anything right now. Okay, one more question then, if I may. As far as, and I like organic growth, have you ever shared with The Street and/or can you share with us now, I love quantitatively, but qualitatively, a sense that you have from the acquisitions and the moves you've made about how sizably greater than, you know, overall economic growth or the growth in the markets that you're in, the strategies that you've been employing here, the acquisitions and all the, you know, new products and whatnot? You know, I'm not gonna ask for EBITDA margins or growth percentages and earnings per share numbers. As far as like revenues go, can you guys share with us a sense of, you know, with where you've got the company, where you think you're going? You know, do you have a 10% long run annual revenue growth goal for the next five years? Are there any projections or notions with regard to revenues that you could share with us or the overall growth of the company based upon your strategies you've employed that you believe in? Joe, I don't think we can answer that question, but if you feel there's something you can add, you can go ahead and add it. Yeah, I can't answer it. I can only answer it this way. I think there's opportunity for us to absolutely grow faster than, you know, the overall growth in the market of 3% or whatever that is. I think we would be disappointed if that was the best we could do in the next 3-5 years. As I said, we think that our relationships in aerospace are gonna allow us to grow faster than that. We think our opportunity in Europe is gonna allow us to grow faster than that. As I said, we've got some product of, you know, product introductions and other things. I can't give you a number, but I personally would be disappointed if 3% was the best we could do. That's probably the best answer I could give you. Okay. Okay. Thank you. I have no further questions. Thank you, Joe, for being magnanimous about my questions. Thank you. Thank you very much. As a reminder, you can press star one to ask a question. Our next question comes from Andrew Shapiro of Lawndale Capital Management. Andrew, please go ahead. Hi. Thank you. Can you hear me okay? I had trouble getting into the question queue. Yeah, we hear you, Andrew. Are you hearing a click also on the phone? Okay. Are you hearing a click also on the phone? a little bit of a click, but it was more that I kept on hitting the number, 1. Mm-hmm. It was not registering my questions, and then I finally did something. I was fearful I had to call, dial and dial out, and please hopefully don't take these seconds off of my 28 allotted time. I'm not. No, absolutely. No problem. Thank you. Go ahead. Don't worry. All right. Your release mentions that there are multiple growth opportunities provided by both Jackson Gear acquisition and also other product lines. Can you expand a little bit on the opportunities you're pursuing with each of these areas? Sure. Joe, go ahead. You're the better guy. You know, the Jackson Gear business had a lot going on in the international mining area, and I'm not talking about coal mining, just about every other mining that you can think of, because we sell a suite of gears that are somewhat generic to mining across the globe. One of Jackson's key customers supplies worldwide. That's pretty exciting. We had a little bit of mining business before, but it was somewhat regional in the Pennsylvania area. That's one area. Then again, as I think we probably said when we made the acquisition, the profiles of gears that can be made now by us are much broader, larger, more complex, and that just opens up markets. I mean, the gear business, if you can make most profiles, you're somewhat industry agnostic. I mean, gears are just in just about every industry that you can think of. We like that because we're not wedded to any one particular area to grow. In some years, certain areas grow faster than others, and we can focus on those opportunities. Does that answer your question? Yeah. I think you also referred about growth opportunities in some other product lines. Are you able to expand at all on that at this time? Sure. You mean outside of gears? Yeah. Yeah. I mean, we're as I think we said, we're in development with some products with a couple of key customers. We're working on tweaking a line for a particular market that one of our customer partners is gotten heavily into. They're very big in the Rental market, industrial rental market with tools, and they're doing a great job with that. Those are probably two of the things that I would. Okay. that I would call out on the Hy-Tech side. All right. I'm gonna migrate here to Florida Pneumatic and some new product development, in second here. well, it looks like we can look forward to asking more about this in future quarters 'cause you have talked about this rental line. It sounds like you may be developing some unique products for that rental line. Is that correct in what you just said? I don't know that they're unique. They're just better targeted. We're not talking about brand-new inventions, the market has maybe a different profile for the suite of tools that you might sell there as opposed to our regular line. Again, we're working directly with one of our largest customers at Hy-Tech on making sure that we've got that all covered. Yeah. Okay. Your release mentions development of a cordless installation tool for the aerospace market for which you've begun taking orders. Can you elaborate a bit more on this product? Is it in Hy-Tech or Florida Pneumatic aerospace offerings or both? This application's market size opportunity? The one that we're talking about is specifically, Florida Pneumatic. I don't know what the release says exactly in front of me, but we have a suite of aerospace cordless installation tools we're working on. One is out, taking orders, working on another version, and, you know, we're pretty excited about it. The customers we've talked to are pretty excited about it, so it'll get tested out in the field. You know, we're taking orders, but it's our first foray into, directly ourselves into cordless. We're very excited about it, and, you know, we'll see. I think that there's probably more interest right now in Europe on that than here in the US, for whatever reason. That doesn't mean that won't change, but, we've got a lot of customers interested, and we'll see. Does that mean? Go ahead. Sorry. Does that mean like Airbus when you say, aerospace customers interested in the? Yeah, I mean, not only Airbus, but yes, the Airbus dominates the European market for aerospace, of course. Right. Yeah. Can you describe a little bit more about the application of this tool and maybe the market size opportunity? Well, it's an installation tool. We make plenty of installation tools for all aerospace customers. An installation tool, or at least the way we view it is, you're trying to get a fastener in place and tightened typically in a small space inside the aircraft. You usually have to work at some sort of odd angle, and that's one of kinda Jiffy's claim to fame is we make a whole suite of installation tools that work at 17 degrees and 25 degrees and whatever, depending on what they're trying to install. Right now, those are all attached to an air hose. The customers that have them love them, but depending on the application and the, you know, how the customer views cordless versus non-cordless, there's a market for a cordless product. It's got advantages and disadvantages. Obviously, you're not tethered to anything, so that's a wonderful thing if you're in a tight spot. You know, you've got the battery to deal with. Batteries wear out and have to be replaced. We think there's a real market there, and we're excited about the specs on our tool and so are the customers. Okay. What's the timeline like for a product like this from taking orders, to shipping and booking revenues? I, you know, I would say within a couple of months. I don't know. Okay. I mean, our general delivery time in aerospace is, I wanna say 10 weeks or so. I'm probably gonna get yelled at. Okay. You're taking orders now. You have a product and you're taking orders. Yeah. We're taking orders. We're planning on shipping them product. Real, you know, finished product. Okay. Can you discuss further your goals and plans to introduce other versions of such cordless tool products later in 2023, which you referred to in your press release as well? Yeah. As I said, we've got a, an alternative version of that that's right behind it. I don't have a delivery date on that and when it's gonna be available, but soon. Okay. I'm gonna say third quarter-ish. All right. Can you expand on and similarly discuss the new, what you refer to as the new limited life parts that Jiffy Air Tool has begun to market? Limited life parts? The keys. The keys? Well, okay. Just so we're clear, Jiffy has for some period of time sold consumables along with its tools. Is that what you're referring to? I'm only referring to what was referred to as new limited life parts that Jiffy Air Tools has begun to market. I don't have in front of me, but I'm assuming that's what we're talking about. In the process of installing components on an aircraft, there are these things called hex keys, which are used to sort of line up the fastener and the hole, and they're consumables. They break- Okay. You know, they break them off and. It's not a big material thing, though, it sounds like then. oh, I know, I think it's a seven-figure line of business. Oh, well, that's meaningful. Okay. I don't think that's insignificant. No, no. You just started to market it, so what's the kind of timing on that rollout and when people start to- it's just we've been You know, I think what we're referring to is there was a time when we couldn't make our own or we couldn't make them very efficiently, but now we've all vertically integrated that whole process, and that's I think what we're trying to get at, is that Okay. we have a more, a bigger opportunity as a result of our input. Sounds like then it'll be overhead absorption will be where the major impact would be. Yeah. Okay. I think cost savings now that we're vertically integrated there. Right. All right. on Florida Pneumatic, regarding the automotive revenue declines you said were associated primarily due to your price increases leading to unit volume declines. While the growth margins were improved, was that sufficient to maintain gross profit? About how much did the unit volume drop hurt, this sub-segment's gross profit? It depends on what... You know, we've got a suite of 25 or so, it's probably even more, 30, 50 or so, SKUs, complete tools for AIRCAT. It was really a bit of a strategic decision. There were a couple things going on. What we have learned in sort of marketing our AIRCAT brand more directly in the last five or six years on the Amazon platform, we've learned a lot about the brand and, you know, what kind of market power we've got. Really what we've learned out in the marketplace is that the customers have viewed our brand just about as strongly as the top brands in the category, whether it be CP or IR. We chose to try to move up the value chain there and price ourselves a little closer to the top brands and a little farther away from the less premium brands. We did that, and yeah, we did lose a little bit of unit volume, but we're very excited about our ability to maintain margins, you know, pretty close to where we were. More importantly, what we also learned is that we were fairly inefficient with our advertising dollars. We really had a brand that was deserving of actually, believe it or not, less advertising because the tool sells itself. Okay. The bottom line impact is actually a benefit. That whole strategy, while maybe we lost a few hard dollars in margin, we've actually gained it in contribution because we've dramatically been able to reduce. Okay. our spend. That's even better. -about what's happened, and we've repositioned the tool as a premium brand, and that's what it is. All right. I only have eight minutes left and lots of questions here. I'm gonna move on. You mentioned on the last call your tools private labeled for The Home Depot under the Husky brand are no longer in the tool corral or the tool bin, but in a separate aisle. Why would they put their own label, which presumably provides them greater margin, away from the other tools? Did they just get rid of the corral and bin for everyone? No, there's still a tool corral for Home Depot. You know, they've put a little less emphasis on this line. I can't exactly tell you why, but, you know. You know, it's sales per square foot and margin per square foot, and. Is it the type of tools? Joe, is it the type of tools or it was just their Husky offering? I don't know whether it was just Husky or not. I mean, I'm sure they move things in and out of that corral all the time. I just know that. Okay. it's affected us. All right. Well, let's move on here. Last quarter's call, you discussed how Florida Pneumatic's revenue margin mix was favorably impacted by rebounds in the aerospace product line, both commercial and defense. That's helped fill a part of the hole from some of the commercial Boeing business line, 737 MAX and 787, the slowed production ones. Yeah. They have not yet fully recovered to their pre-pandemic and grounding consumption rate. In fact, you highlighted in your press release what the monthly production rate was and kind of the timing that 2025, they might get back up there and step up in that as we continue through the rest of this year and into 2024. Because you filled in some of that product line, you know, that hole that was created when Boeing's business dropped off in that area. When this business comes back and presumably P&F, Jiffy, et cetera, maintain their share, does the company have the production capacity to accommodate the return of that Boeing business, you know, the fact that all this new business? Sorry, Richard. Sorry. Yeah, that's a good question, Andrew. The answer is yes. Joe can give you the specifics, but we've added some new machinery at Jiffy as well as Hy-Tech, some significant capital expenditures in the last 6 months, in the seven-figure area. For that exact thing, for that exact reason at Jiffy and at Hy-Tech, to increase efficiency. Okay. be able to handle more. Absolutely. Joe, you want to add anything to that? No, I'm assuming that's because you have some visibility on this return to business and the company's ability, likelihood of achieving and getting the business and then ability to deliver on that business. Well, I'd like to say that was the case, but it's more about efficiency and getting more to the bottom line. It's that the byproduct is that we can do more business. The motivating factor for us was to increase margins and profitability. Joe, you want to add anything? Volume. Okay. Yes. Joe, you want to add anything to that? No, you had it. You spent it spot on. That's right. Yeah. Well, I'm, yeah, I'm running, so. Let's talk a little bit more about Europe, if you can. Sure. You know, can you give more color on the inroads the company has made into Europe? It, you know, generally takes several quarters to get certified onto a line before you can book shipments and revenues. Where in this process has your aerospace tools progressed in Europe and the prospects and timing for such, you know, for the prospects that you're seeing? You're already booking revenues and or are we just at the order phase? We're shipping product to. I'm sorry, Richard, go ahead. No, go ahead. Go ahead, Joe. That's fine. We're shipping product to Europe as we speak. Okay. To sell. It's being sold. We've taken orders. We've shipped the product to the customer. On the last call, you thought the opportunity for Jackson Gears and its synergies were still in transition, but there would be tangible progress in Q1, which you've shown and you've talked about. Can you elaborate on the additional benefits and whether revenues, margin or both, that have momentum continuing into this current Q2 that we're at? Go ahead, Joe. Yeah, I mean, we really feel like we've just gained our footing here in Q1 on the gear business. We're excited about the team that we've got in place there. As Richard alluded to, we put in some automated equipment and vertically integrated with some other equipment. We have a lot of business, and frankly, our salespeople are probably... How do I put this? They could get more business if we could get more through the plant. We're doing everything we can to make that happen. Okay. All right. Following up on the CapEx thing, you discussed CapEx for some very high payback automation equipment that was delivered, and then there was others that were about to be delivered on our last call. What's the status of those purchases and the timing of implementation? You also spoke of more CapEx coming. Is Q3 when you expect to see the full run rate benefits of these expenditures, or is it further down the road? No, I would say, some of it... For it to be meaningful, it'll be Q3. Yeah. I believe there's still one piece that we're waiting on. Joe, am I right about that? I think we just got it. We just got it. There's really four pieces of equipment, all in at the moment. There are other things to come, but we've got a little bit of a learning curve on the four things we've brought in. You know, one at Jiffy, one in Cranberry, and two in Punxsutawney. You know, we've got to get up to speed, which we will. There's nothing crazy about doing that. Richard's right, third quarter, but I would say probably even closer to fourth quarter till we start to see the bigger benefit. You know, all these things got to get into queue. We've got to get them programmed. We've got to get, you know, parts loaded onto them and tooled. It's gonna take a little bit of time, but we're excited about it, and there's no reason to expect that we won't be in, you know, pretty full production mode by Q4. Q3, we'll start to see some tangible benefits. Okay. two remaining questions. In the OEM Engineered Solutions segment, are there any other particular areas, industries or products that have grown worthy of any call-out and elaboration other than your, you know, rental market type of tools in the industrial side? We're working on some other new products, but I don't really wanna get into what those are. We've got some nice development going on. Okay. When we have something to say. I also... We'll say. Yeah. I also noticed you greatly improved the website. Don't think it went unnoticed. That was really good. I appreciate the efficiency of getting straight to the Q&A. I wanted to ask if you guys could consider, because your press release this quarter in particular was really, I think, improved and provided some greater clarification on things that eliminated my need for other questions. The time horizon from when you issue the release to the start of the conference call is so tight that, could I ask you guys consider, if you're able to do it, is to release the earnings report the night before, if at all possible, and then have this call or potentially have this call an hour or 2 later on the same morning if you're gonna do it, just to get a little more time to get through the press release, since it's not gonna be rediscussed in your script, which I appreciate. I think that's the optimal way of doing it. To have a little more time with it, to create thoughtful questions would be helpful. I know you have questions. We'll try to talk about it, but making the call later is hard because if we can make it later, it's running into lunchtime on the East Coast. All right. We will I wouldn't wanna do that to... Yeah. I wouldn't wanna do that. Not for us, but for our... Yeah. Not for us. Not for us, but for... Well, you know, the stockholders as well. We'll look at it. We'll definitely consider If the press release in the you know, the press release in the 10-Q is in the can already, then perhaps it could get released the night before. Yeah. If not, don't reduce the information you provide in the release. I found this release more useful. By the way, does the share count change? Do you have a share count you can share because the 10-Q is not yet out? It is, it is not changed. I don't think it's changed. I don't think it's changed at all. Okay. $3 million. $3 million That means you have over $10 a share in tangible book value, let alone over $13 a share in overall book value. Yes, we're all in agreement on the undervaluation of the stock price. It's just a shame to me instead of buyback when your stock price is inevitably gonna be higher, rather than perhaps considering, you know, a modest ten by five, small program to have be in the market with, queuing up of, you know, 500 shares a day or whatever it is, at these price levels. It would be something you should, you know, on the next quarterly board meeting, just kinda kick that around about putting in a modest ten by five plan that is basically buying, you know, a few hundred shares a day. It'll add to the trading liquidity, which frankly will add to the better and improved valuation on the stock price as it is. Gotcha. Okay. We do, as I said, thank you, Andrew, we'll, we will definitely consider what you're talking about as always. All right. Thank you. Thank you. My time's up. Thank you. Thank you, everyone. As a final reminder, if you'd like to ask a question, you can press star one. As we have no further questions in the queue, I'd like to hand it back over to Mr. Richard Horowitz. Sir, please go ahead. Yeah, thank you. Thank you all for spending some time with us today and discussing our earnings. We look forward, and of course, our dividend. We put an announcement last night that our second quarter dividend will be distributed in short order next couple of weeks. We look forward to speaking with you in our Q2 conference call in a few months. Stay well, everybody. Thank you so much, operator and everybody else. Thank you. That concludes our conference today. Thank you for joining us. You may now disconnect. Host, please stand by.