Q3 2024 Graham Corp Earnings Call
Participants
Deborah Pawlowski; IR; Graham Corp.
Dan Thoren; President & CEO; Graham Corp.
Chris Thome; CFO & VP, Finance; Graham Corp.
Theodore O'Neill; Analyst; Litchfield Hills Research LLC
Dick Ryan; Analyst; Oak Ridge Financial Services, Inc.
Gary Schwab; Analyst; Valley Forge Capital Management LP
John Bair; Analyst; Ascend Wealth Advisors, LLC
Presentation
Operator
Welcome to the Graham Corporation Third Quarter Fiscal Year 2024 financial results call. At this time, all participants are in a listen-only mode. The question and answer session will follow the formal presentation by anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to Deborah Pawlowski, Investor Relations for Graham Corp. Thank you. You may begin.
Deborah Pawlowski
Thank you, Daryl, and good morning, everyone. We certainly appreciate your time today and your interest in Graham Corp. here with me on the call are Dan Thorn, our President and CEO, and Chris Stone, our Chief Financial Officer. Dan and Chris are going to provide their formal remarks, after which we will open the line for questions.
You should have a copy of the third quarter fiscal 2024 financial results that were released this morning. And if not, you can access the release on our website at IR dot graham corp.com. You'll also find there the slides that will accompany today's discussion. If you will turn to slide 2 of that deck, I will review the Safe Harbor statements. You should be aware that we may make some forward-looking statements during the formal discussion as well as during the Q&A session. These statements apply to future events that are subject to risks and uncertainties as well as other factors that could cause actual results to differ materially from what is stated here today. These risks and uncertainties and other factors are provided in the earnings release, as well as with other documents filed by the Company with Securities and Exchange Commission. You can find those documents on our website or at SEC.gov.
During today's call, we will also discuss some non-GAAP financial measures. We believe this will be useful in evaluating our performance. However, you should not consider the presentation of this additional information in isolation or as a substitute for results prepared in accordance with GAAP, we have provided reconciliations of non-GAAP measures with comparable GAAP measures in the tables that accompany today's release and slides. We also use key performance indicators to help gauge the progress and performance of the Company. These key performance metrics, our orders, backlog and book-to-bill ratios. They are operational measures and the company's methodology for calculating these numbers does not meet the definition of a non-GAAP measure as that term is defined by the SEC. So as a result, a quantitative reconciliation of each of these is not required or provided, but you can find the disclaimer regarding our use of key performance metrics at the back of our deck in the supplemental slides, so that if you would please advance to slide 3. I will turn it over to Dan to begin. Dan?
Dan Thoren
Thanks, Debbie, and good morning, everyone. reflecting on the past few years we firmly believe that our business is now in a significantly improved position due to the strategic actions that we've taken. This has been a great team effort, and I would like to thank our customers, our employees and our service providers for their contribution to our turnaround in the third quarter, our performance demonstrated robust strength, underscoring the consistent execution of our strategic approach aimed at cultivating high-quality top line growth, along with margin accretive initiatives to enhance our future earnings potential.
Notable highlights from the quarter include gross and adjusted EBITDA margin expansion, a substantial increase in bookings that led to a record backlog of nearly $400 million. And we refinanced our debt with a lower cost and more flexible credit facility, further solidifying our financial framework. Our bottom line was muted, however, given some atypical expenses that Chris will talk to. But on an adjusted basis, net income was up over 180% to $2.4 million. We generated strong cash from operations during the quarter, given recent working capital initiatives along with stronger financial discipline. This enabled significant debt paydown during the quarter and strategic investments, both organic and inorganic. We highlight on slide 4, a significant investment made during the quarter, which was the acquisition of P. three technologies. This was a great bolt-on business which brings highly complementary technology that enhances and expands our Turbomachinery solutions, engineering and development team. Their patented technologies deepen our reach into existing space and new energy markets and create greater diversification with the addition of medical markets.
From a financial perspective, Q3 brings about $6 million of annual revenue, accretive gross and adjusted EBITDA margins and approximately $6 million of backlog they also have what we feel is a lot of high growth pipeline opportunities that are highly complementary to our Barber-Nichols turbomachinery business. In fact, in the short period that they have been with us. That business has already proven instrumental in fortifying some of our solution offerings and has amplified our financial profile, including being accretive to earnings in the third quarter. It is important to note that given this quarter's robust cash generation, we were able to repay nearly all of the debt associated with the acquisition during the third quarter. Together, we believe we have a bright future as we aim to create opportunities for product and technology integration to provide more effective solutions across multiple markets.
As we look forward, we are focused on advancing ground by building a collaborative culture across our brands, leveraging best practices and advancing employee development to reinforce our core capabilities of precision machining of critical Turbomachinery components and specialty welding for fabrication of critical equipment for large heat transfer and vacuum applications. Our confidence remains high and our ability to consistently execute our strategy and leverage the multitude of opportunities before us with that, let me turn it over to Chris for the financial details. Chris?
Chris Thome
Thank you, Dan, and good morning, everyone. As Dan highlighted, our results for the quarter include approximately two months of operation from P. three, which was acquired on November 9, 2023.
On slide 5, you can see that we had a strong growth for our third quarter of fiscal 2024 with sales of $43.8 million. This was up 10% or $3.9 million over the prior year and included approximately $1 million of incremental sales from Q3. Strong sales in the commercial aftermarket continued to help offset the cautious spending on capital projects in the refining and petrochemical industries. Aftermarket sales were $8.6 million in the quarter, up $3.2 million or 59% over the third quarter of last year. Defense revenue was also solid with an increase of $2.6 million or 12%, reflecting higher price contracts as well as increased capacity in direct labor hours. We did see a decline in the space market which had a lot to do with project timing as we had strong order growth during the quarter that I will talk to in a few slides, we are still seeing the impact of the Virgin orbit bankruptcy last year. What should finally cycle through that once we finish out fiscal 2024, P. three helped offset some of this decline and we expect further lift from that acquisition within this industry mix as well as a robust pipeline of other opportunities in the new energy defense in medical markets.
US sales for the quarter were 84% of total revenue, and it continued to reflect the size and growth of our defense business.
Looking to the chart on the right, gross profit was another positive story with an increase of $3.5 million or 56% to $9.7 million in the third quarter. The 660 basis point expansion of gross margin reflected higher volume and a related improved absorption. Mix also played a role with higher margin commercial aftermarket sales as well as the margin accretive sales from P. three and lastly, we are benefiting from improved execution and pricing on defense contracts.
Turning to slide 6, you can see our bottom line and adjusted EBITDA results. As Dan mentioned, net income was impacted by a number of items this past quarter. Sg&a excluding amortization, was $8.4 million or 19% of sales, up from 13% of sales during last year's period. The increase reflects higher performance-based compensation, including a $1.3 million supplemental performance bonus for Barber-Nichols employees in connection with the 2021 acquisition, also contributing to the increase in SG&A was P. three acquisition related costs, increased professional fees, largely related to our international operations and initial ERP conversion costs.
Separately on the income statement, you will also see a line item for our costs associated with the debt extinguishment during the quarter, which amounted to $0.7 million when excluding many of these atypical costs on a non-GAAP basis, adjusted net income was $2.4 million or $0.22 per diluted share, up 183% from a year ago. Similarly, you can see the improvements in adjusted EBITDA, which grew 72% to $3.9 million or 8.8% of sales, up 320 basis points.
Turning to slide 7, you can see how a strong quarter of cash generation enabled us to further improve our balance sheet while still making strategic investments. At the beginning of the quarter, we refinanced all of our outstanding debt with a new year $50 million revolving credit facility that matures in 2028. This facility provides us with reduced borrowing costs and greater flexibility to fund our long term strategic goals growth goals.
Cash generated from operations in the third quarter was $7.6 million and $19.5 million for the year to date period of fiscal 2024. We utilized some of this cash to reduce our debt balance by $7.9 million to $3 million at quarter end P. three was acquired with the payment combination of cash stock and contingent earn-out based upon the future performance of P. three. As Dan highlighted, most of the debt associated with the acquisition was paid off during the quarter. However, in January 2024, after the quarter ended, we paid off the remaining $3 million of debt currently leaving us debt-free capital expenditures of $1.9 million in the quarter and $5.2 million year to date are focused on capacity expansion, productivity improvements and the start of the ERP implementation at our behavioral facility. In total, we expect the ERP project to cost approximately $2 million in capital and $1 million in expense with an anticipated go-live date of about a year from now, we decreased our expected fiscal 2024 capital expenditures to now be in the range of $8 million to $10 million, primarily due to the projected timing of cash flows. Our projects continue to move forward at a steady and thoughtful pace.
If you turn to slide 8, during the quarter, we had a record orders of over of $123 million, which were up six times over the prior year and resulted in a book-to-bill ratio of 2.8. These were largely follow-on orders for critical US Navy programs, although aftermarket orders for the refining and petrochemical markets remained strong at $7.8 million. We also saw nice order flow from our space customers of $6.1 million, which was up $4.5 million year over year and double the sequential quarter and remains a key growth driver in our diversified portfolio.
Turning to Slide 9, you'll see that our backlog is nearly $400 million, also a record level, which provides several years of visibility given the long lead times of some of our defense contracts. P. three acquisition added $6 million to our backlog. Approximately 40% of our backlog is expected to convert to sales in the next 12 months and another 25% to 30% is expected to convert to sales over the next one to two years. The majority of our orders that convert beyond 12 months are for the defense industry, specifically the US Navy.
Turning to slide 10, we can review our guidance for fiscal 2024. Given our strong performance year to date and the addition of Q3, we have raised our revenue expectations to be between $175 million to $185 million for fiscal 2024, up $5 million at the bottom and top end, this implies top line growth over fiscal 2023 of 15% at the midpoint of that range.
From a margin perspective, our gross margin guidance is approximately 20% up from the 18% to 19% we guided last quarter. Additionally, our expectations for SG&A, including amortization to be between 16% to 17% of sales, up one percentage point over our previous guidance. This includes costs associated with the supplemental performance bonus for our Barber-Nichols employees, the P. three acquisition costs as well as ERP implementation expenses at our previous facility we also raised our adjusted EBITDA guidance for fiscal 2024 to range between $15 million to $16 million, up from our previous guidance of $11.5 million to $13.5 million. The new range implies an adjusted EBITDA margin of about 9% at the end at the midpoint. I should point out that our adjusted EBITDA guidance excludes the SG&A items I just mentioned, and approximately $0.7 million of debt expense extinguishment charges. We are delivering continuous improvement and are on track to achieve our fiscal 2027 goals. We continue to expect 8% to 10% annualized organic growth per year, which implies $225 million to $240 million in revenue for fiscal 2027. And with margins improving steadily, we are on target to achieve our low to mid teen adjusted EBITDA margin goal.
With that, I will pass the call back to Dan.
Dan Thoren
Thanks, Chris. Significant strides are being made within our organization yet there remains a lot of work to be done. Our team is devoted to the ongoing pursuit of our strategy for sustained growth, and I am grateful for their unwavering dedication, enthusiasm and diligent efforts, our record backlog and the acquisition of P. three at up to a bright future for Graham numerous opportunities lie ahead, and we anticipate that these will pay play a pivotal role in propelling our growth and bolstering our future earnings.
With that, Daryl, you can open the call for questions.
Question and Answer Session
Operator
Thank you. We will now be conducting a question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue, you may press star two. If you would like to remove your question from the queue For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please while we poll for your questions.
Our first questions come from the line of Theodore O'Neill with Litchfield Hills Research. Please proceed with your question.
Theodore O'Neill
Thank you, and congratulations on the good quarter. As Dan mentioned earlier, we had great, Dan, in your prepared remarks. You you mentioned that there was with a pipeline of high growth opportunities that was part that you got as part of the P. three acquisition. I was wondering if you could give us some more detail on that?
Dan Thoren
Yes, they are. They're mostly on the space side, and I probably won't be able to give you a whole lot of detail there just because of NDAs But but P. three M. has been working in propulsion pumps, fluid management, pumps for space applications. So they're actually at an awesome complement to Barber-Nichols from that perspective. And really probably deepens our engagement with this with the space community.
The other thing I get excited about P. three is they're also involved in some of the new energy waste heat power gen types of applications. And then they they do cryogenic pumps, which are which really get into some of the medical applications that they're trying to apply those to. And then they've got some modest, some very cool IP and that's that we believe we haven't scratched the surface on that yet as far as how and when where we would like to take that to market, but that's definitely something we're pretty excited about in one of those is what they call a multichannel diffuser, which is a high efficiency enhancement that can be applied to basically any pump pumping liquids. And so we're pretty excited about that. And then their cryogenic pump capability really complements, again, Barber-Nichols that is mostly centrifugal types of pumps and NP. three brings a positive displacement pump that complements that. So lots of really cool things. And Phil and his team are our top-notch engineers, and we're really, really excited to have them Okay.
Theodore O'Neill
Tim and Chris, in the press release, you say that the improved working capital was largely due to changes in payment terms related to large defense customer X. Can you give us any more detail on that, what that means?
Chris Thome
Sure. So for the last couple of years, the team has actively been working on putting in stronger discipline with regards to capital management. It's basic blocking and tackling, collecting receivables sooner, pushing out payment terms where possible. And several of our large on defense contracts had really unfavorable payment terms where basically once you got past 50% production, you couldn't bill anymore until project completion was, you know, some of these projects can go on for several years. So that was really putting a cash-free cash strain on our business. And over the past, I would say three to four quarters, we were able to renegotiate some of the payment terms where we're now billing more milestones and more on a percentage complete basis. So that really provided a significant uplift to the cash generation over the last couple of quarters.
Additionally, as you know, with the $123 million of orders that we had this quarter and then a large amount of defense orders over the last year. A lot of those hit pay for the materials upfront. So we've been able to cash collect that cash upfront, but we'll have to pay for that inventory as it comes in. So as we've discussed in the past, we fully expect our cash generation from quarter to quarter to be pretty lumpy. But the team's done an excellent job on really improving some of the payment terms and helping that cash flow along.
Theodore O'Neill
Okay. And given the growth that you're experiencing there, are there any potential CapEx expenditures that you'll need to make or have to make investments in skilled employees to keep up with it all.
Chris Thome
And yes, definitely, as you know, we've guided for CapEx of $8 million to $10 million for this year, which is about 5% at the midpoint of the guidance when we think that and our CapEx spend is going to be in the 3% to 5% range over the next several years, just to support that growth and the facility expansion that you just mentioned. So yes, we certainly expect capital expenditures to remain elevated for a few years here.
Theodore O'Neill
Okay. Thanks very much.
Operator
Thank you. Our next questions come from the line of Dick Ryan with Oak Ridge Financial. Please proceed with your questions.
Dick Ryan
Thank you and congratulations also on the great quarter, guys. Thanks to a fake, Chris, looking at the op ex Unify, your leverage gets a little obscured with all the puts and takes in this quarter. Here you still guide to that 16, 17-ish range for this year. I know you're not providing guidance for '25 yet, but is there any reason to think that kind of the SGA level at this at this percent of sales changes materially with your aspirational goals going into '27? Or will we start seeing the leverage kind of kick in over the next few quarters?
Sure.
Chris Thome
Well, thanks for the question, Dick. I outlined in my comments today, we had some unusual items in the quarter with regards to SG&A on. We've been recording the Barber-Nichols earn-out bonus for the last several quarters, and we also had some elevated acquisition costs as a result of the P. three acquisition on professional fees were a little bit elevated related to our foreign subsidiaries. And then as you know, we've kicked off the ERP implementation. So talking to those items, the Barber-Nichols performance bonus is going to be with us for several years. As we've discussed on other calls, it's a three-year program for fiscal '24, '25, and '26. So that's going to be around for a while here on the ERP implementation, it ERP implementation really just kicked off in the current quarter and in earnest. So as I mentioned in my prepared remarks today, we expect that to be about $1 million of expense over the next year. And so I would expect SG&A to be a little bit elevated for the next year here as we work through these things. But then yes, you're certainly right. The leverage should kick in and by the time we get to 2027, it should allow us to get to those in low to mid-teen EBITDA margin percentages.
Dick Ryan
Okay, thank you. Say, Dan, the strength you've seen in aftermarket over the last few quarters. Is that still kind of a potential precursor of what you might see on capital budgets in refining and petrochemical? Or what's what's your view of those those end markets?
Dan Thoren
Yes. So I guess, first of all, the aftermarket is remaining strong. So So we're still seeing that elevated order level continuing on. We are seeing and hearing about some some nice capital projects that that our customers are planning for this year and we're starting to bid on. So we're encouraged. But again, it will not be of the big, the big boom, I think like it like Graham has seen in the past. So we're encouraged. We're happy that the the aftermarket continues on strong and we're getting ready to if there is a a significant uptick. We've been working pretty hard as far as training new employees at our businesses and and the supply chain challenges are starting to work out and not less of an issue there. So I think that we're going to be in a pretty decent position if and when that does take off.
Dick Ryan
I think Chris mentioned some increased professional fees in your international operations. Does that reflect you said maybe some of these early capital project discussions or is that something else?
Chris Thome
Yes, I can take that one, Dick. Okay. But as we disclosed in our 10-Q today earlier in the year, audit committee received the whistleblower complaint from our India subsidiary. And as a result of that they launched an investigation which included hiring outside legal counsel and some forensic professionals. That investigation did confirm the whistleblower complaint, which slot, which led to a broader investigation on where other misconduct was identified mostly with Root with regards to improper expense, reimbursement expense reimbursements, as we disclosed in the 10-Q, the impact was relatively minor as about 150,000 in total over four years, but that did result in an increased in professional services fees, probably about 750,000 year to date that we've incurred in that investigation Luca later today.
Dick Ryan
And one of the arguments for P. three was, you know, Graham can bring this scope to really expand the potential of both companies. You talked a lot about entering some new market opportunities with P. three when and when you talk bringing scale to the story, is that broadening the end markets or is there potential to get deeper into this space business, let's say, when you guys are combining efforts?
Dan Thoren
Yes, we see it as call deck up. So so P. three has has connections to markets that Barber-Nichols doesn't necessarily have. And they've they're really strong engineering group. And so there actually brings some strength on the engineering side to Barber-Nichols also. So we see up probably some breadth that comes with P. three P. three doesn't necessarily have the production capabilities that Barber-Nichols has. So so we're actually going to be able to of the two to satisfy in OP. threes customers have on the production side also going forward. So So I see it, Tom as a real win-win in that it is broadening and deepening with some of the technology that P. three brings to the table.
Dick Ryan
Great. Thank you.
Operator
Yes, thank you. As a reminder, if you would like to ask a question, please press star one on your telephone keypad. Our next questions come from the line of Gary Schwab with Valley Forge Capital Management. Please proceed with your questions.
Gary Schwab
Yes, hi, guys. And I just like to say congratulations, great quarter.
Chris Thome
Thanks. Gary.
Dan Thoren
Thanks, Gary.
Gary Schwab
And have you been surprised following up on a Dick's question on aftermarket. Have you been surprised by how strong the aftermarket sales have been in the past year just some level of note.
Dan Thoren
Now I don't have a lot of history with the Company, so I couldn't tell you, you know what it what it is like, you know, 10 and 15 years ago. But we do know that, Tom, that especially in the US where the majority of our aftermarket comes from that these refineries have been have been running hard and and so they've got to continue to invest in them and keep them properly service, but to be able to keep that high level of output going. And so you know, from a from a demand side, I would say not too surprising just because we're not adding a bunch of new capacity here in this country and you've got to keep the existing assets running at top performance.
Gary Schwab
So okay, because it's really picked up a lot in the last year, and I know you have an aftermarket sales force that you that you started, what what's what's the how would they become so successful in closing orders or the orders just there? Or is it the way you're doing it?
Dan Thoren
Well, I think it's I think it's both on. So certainly the demand is up just because of the refinery output has been so high for a long time. And the other part of it, Sam, we have been investing in our aftermarket team, adding more engineers, readjusted some of the of the leadership associated with aftermarket. And I think that's been positive. We're not done yet on E&O as we as we kind of think about in our installed base internationally, we're trying to figure out how to go after that, too. And so so we've got initiatives with both of our sales offices to figure out their communication strategies relative to life of components add and service intervals and things like that. So so it is has been a proactive approach to continue to grow that business. And honestly, I think that we still have quite a bit of room to improve. So so we're encouraged by E&O and in the aftermarket business, that we can keep it going.
Gary Schwab
So what we'll see is most of it installed base or high or is all of it installed base?
Dan Thoren
Yes, pretty much all of it. It's installed base.
Gary Schwab
So the fact that these are all customers of yours that you've delivered product to before, and you talked last quarter about really not having much visibility. Is there a way that you can increase visibility almost like setting up a subscription business for replacement parts based on particularly predicted where rates are predicted failure dates?
Dan Thoren
Yes, we've got. We've actually got a a initiative that's starting this week. We've got a kickoff meeting to figure out how to automate on the E note using AI. is a little bit of a stretch I would say, but but automate our approach to aftermarket that that uses this installed base, installed base database, understanding exactly, you know, when these things got installed and you know, the typical life associated with the components and starting to automate our market outreach to those installed base customers. So and again, I said I think that there's there's quite a bit more we can do and NAM. And so we're we're not we're not resting on our laurels here. We're out there being aggressive and trying to figure out how to go get more Okay.
Gary Schwab
And just one last question for Chris. Is this worth putting a line item on you have space sales, chemical sales, refinery sales, defense sales, adding aftermarket sales as a as aligned.
Chris Thome
So certainly something we could think about internally here on. It's definitely related to the, you know, refining and petrochemical markets. So it's kind of all-encompassing and our disclosure really is by market, which the aftermarket is related to, if anything else, we'd probably in the future look to breakout new energy because that's becoming a higher growth and more important part of our business.
Gary Schwab
Okay. Because it is the biggest data, our gross margin product that you carry, I'm sure. Okay. Well, thanks a lot and congratulations again, it's very scary Thank you.
Operator
Our next questions come from the line of John Bair with Ascend Wealth Advisors. Please proceed with your question.
John Bair
Thank you. Good morning. Congratulations, Dan and Chris.
Dan Thoren
Thanks, John.
John Bair
Very good to see real pleased to see that that out of there. And so I've got two questions. Quick questions. One is contemplation perhaps within the next year or 12 months beyond the reinstituting a dividend.
And the second question would be with regards to the aftermarket sales, what percentage you're roughly, what's, what's the breakout between the traditional Refining and Marketing upgrades versus biodiesel, which you've said has been in the mix here?
Chris Thome
Yes, John. So let me take the first take the first one with regards to a dividend. As we've already been talking here on the call, we have quite a bit of CapEx that needs to get spent over the next several years. And we have a lot of organic growth opportunities that are in front of us that are well in excess of 20% ROI. So those are really our our main focus. And then as well as you know, we've really started to build out the pipeline with regards to M&A as well. And P3 is a great example of the types of opportunities that we'd like to take advantage of. So really for the next several years, we're going to be focused on our organic growth and M&A and paying down any kind of debt that might come with M&A. And so right now, the Board has not made any decision to reinstate that dividend at this point.
John Bair
That makes sense. Yes.
Dan Thoren
And then your question about aftermarket traditional versus biodiesel, certainly we've seen an uptick in applications using biodiesel where some of these refineries are getting converted over. And I would guess you and I don't have that detail as far as what the aftermarket looks like, the installed base is relatively small at this point compared to refineries. So I would suspect that the aftermarket is relatively small also, but I couldn't I couldn't quantify that for you other than small in relationship to the to the refinery aftermarket?
John Bair
And what does that aftermarket look like in as far as the international market where you have established have an established base of past business?
Dan Thoren
Yes, very, very. I would say on the same cycle, I guess is what I'm getting at is in our industry here domestically has been running hard. Is that a similar situation internationally.
So internationally, we're seeing new capacity being brought on. So there's there's been quite a bit of new capacity in China and India, for instance, and the Middle East seems to also be planning on new capacity. And so so one that continues to grow on the new side, the aftermarket in the installed base internationally has not been a big piece of our business in the past. And in those as weak as we build that installed base, we have plans to be much more aggressive in going after that. So as I said, as I said earlier, we've got initiatives in our sales offices internationally to figure out what that installed base is where it is and how we go after it in a concerted effort with the TBM effort here.
John Bair
Great. Keep up the good work, very encouraging. Thank you and extra exchange.
Operator
Thank you. We have reached the end of our question-and-answer session. I would now like to turn the floor back over to Dan Florin for any closing remarks.
Dan Thoren
Thank you all for joining us today, and I hope that you can sense the excitement we have here at Graham about our future. We will be participating virtually in two upcoming conferences, the Gabelli pump valve and water symposium on February 22nd. And then the Sidoti Conference on March 14th. As always, please feel free to reach out to us at any time, and we look forward to talking with you again after our fourth quarter fiscal 2024 results. Enjoy your day.
Operator
Thank you. This does conclude today's teleconference. We appreciate your participation. You may disconnect your lines at this time and enjoy the rest of your day.
