KVH Industries (KVHI)

Roger Kuebel CFO
Brent Bruun COO
Martin Kits van Heyningen CEO
Rick Prentiss Raymond James
Chris Quilty Quilty Analytics
Call transcript
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Good day, and welcome to the KVH Industries, Inc. Q3 2021 Earnings Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Roger Kuebel. Please go ahead.

Roger Kuebel

operator. you, Thank and KVH everyone, in for us joining earnings Good third thank quarter for morning. this Industries' we included results, today release morning, published you which the are

CEO, the on me Operating Bruun; Heyningen. the are Martin Joining company's van Kits call Officer, Chief Brent and

Before we quick couple a announcements. dive in, of

copy First, website Relations Investor from a earnings it of if you would is release, our team. the like available our on

website. be a to If you available of call, on it to our would recording will today's listen like

via feel web, submit to listening to you're If ir@kvh.com. the questions free

Finally, are any this We statements. actual those and these of may conference statements call from will contain revise these our subject uncertainties undertake statements. certain forward-looking no cause results that materially in assumptions to obligation differ to to numerous expressed or that update

other directly and GAAP heading discuss definitions X cautionary Information review encourage under March XX-K, as filings well of was the this We certain find specifically those measures our non-GAAP measures, these measures. our statements comparable of in financial non-GAAP measures Form press which in you'll in also filed to is We as The release XXXX available Investor our SEC to our on sometime afternoon. company's Factors these XX-Q, are be our filings, filed expected of from Form to and the will Risk you which website. SEC section the reconciliations

I'll over turn Now to call quarter, walk you the third highlights through Martin. our the to of

Martin Kits van Heyningen

third for chain million management navigation. XX% QX to million mobile increased third of VSAT by $X.X These business of and were airtime compared shipments quarter, the our to careful joining year. cost initiatives. increase revenues connectivity our our in XXXX. implementing results the continuing today. million was connectivity EBITDA deliveries increased the Thanks, many the and of the success strategic adjusted morning, we effects Roger. We and achieved Like slow you Good $X.X a reflecting last in quarter another from in strong in inertial Thank non-GAAP million our both companies, us quarter everyone. third quarter $XX our quarter for Total And ongoing $XX.X the to X% in Contributing goods. of feel in products disruptions supply operating issues, these expenses. revenue, record global mobile in of

if While Demand it QX. the and capacity. constraints, have not able these strong production be more, continues we're we shipped to of for could outpaced these orders to bulk shift into

the incoming and response, shipped products January and and services QX did and identified course, the supply here and alternative additional worked around implement hard-to-get costs our related engineers freight on expect see necessary our team did we've to track X hard to We globe. chips, get approaches down raise customers to in Our to them on and an to parts chain in price was job prices of higher. begun In increases purchasing increased XXXX. select products we adapting to managed to to factories challenges of technical our procurement outstanding logistical teams to get

able So our out challenges, and despite customers our record a have for times of QX. units we're to these lead in VSAT reasonable remained number ship

leisure quarter XX% of QX segments. VSAT mobile compared in a quarter. a markets. spurred market Starting any at historically unit to is mobile our Nevertheless, details look compact our of for record increase let's shipments with new to the seasonality. and slower demand third connectivity up Now part VXX the This in both for new TracPhone connectivity. set maritime commercial the and third due XXXX quarter in ultra was were by

airtime of XXX% systems future VSAT one during excellent become those Unit airtime revenues virtually the more indicator up smallest quarter. over an were year. than as our of an every next typically of last shipments subscriber units sales fact, will In are

Our million $X.X last or VSAT compared XX% was $XX.X to year. airtime QX of QX increase an million, revenue

base by up commercial represent active more AgilePlan quarter compared for to XXXX. the than base. of our XX% AgilePlans, XX% broadband our was program increased also XX%. the total We Connectivity Revenue subscriber third Service sector, mini-VSAT subscriber as subscribers of maritime a now our for

We on continue HTS to progress from our customers initiative make to excellent to network network. our our migrate legacy

for on long-standing then move ArcLight in the depending original down As X, operate you global And savings plan around savings a roughly only million $XX airtime VSAT our many We to know, year we of our cost on net project annual million XXXX. have customers network over. January a shut primary network service. next and HTS total million $X how expenses of $X to

course, moving HTS January X, customers the will, of the we by all always a vessels, those ArcLight customers leisure bandwidth be and would And network. who those than we be seasonally migrate by off-season. majority do that not assumed of expect to HTS, will migrate that much exactly will which during to And we customers airtime subscribers adding anticipate that represent year-end. not XX% are We've suspended inactive of revenue. For the less are

the award satellite for XX our we've with in satellite one consecutive We members new Analysts UHD of Product for take systems, consecutive products, our VX this services our leisure extend boat system. grow who confidence for known Canada X Excellence for when to a to take of industry well global level of this market quality cellular to some National all to into from and expect our spring. billion Electronics our to thanks levels high show expanded and of it and These marks XXXX. value. of market, $XX.X boats system, communication a U.S. growth, the XXXX. row received third we we're their at demand Marine manufacturer the now coverage Association, sales project LTE Seaboard outstanding joining TracVision marine action In TracPhone enjoy products backlogs the KVH appreciate launched XXXX. TracPhone and recreational positioned new the recognized Mediterranean. our the and $XX this include least a since prepare highest of systems and cellular XXth X, saw years half year, boat will the continues industry-leading advantage service XXXX TracVision Elite -- From leisure billion the Eastern performance, TracPhone year We our their for the streaming boats we in this and for of the the we Awards. of of the in those Marine our they in leisure XXXX year Earlier of And by in the XXXX unlimited customers TV perspective, Caribbean to marine and

We yacht appear an also QX we've adjusted increased Demand a around found our of service spot out for This pricing $X,XXX and sold and premium actually weekly service and regions. in has increased, a sweet owners. have month. X ARPU subscriptions these speeds in of to

unprecedented winter, level are at Shipping is we head ship in $XX XX% rates is the container Baltic a positive. were in In XXX%. barrel. As confidence uniformly up industry Port Dry is year-over-year. commercial very macro Caribbean at up call the are into recorded charter arrivals $XXX,XXX subscriptions trends expected market, be to ever strong. QX and The up an highest are Oil the over day. per Index

between important and customer with as in container more EMEA the AgilePlans our collaboration a connectivity rolling perfectly steadily Asia is During commercial ships QX to fleet well front, content recently And high-margin and connectivity Germany, world, in point their welfare in operations. Briese region. Greek leading customers added and now fleet our Schiffahrt Asia, resume is which turning Americas, out signed fleets finally, commercial important seafarers. an around the as in the an quarter, revenue in content our for is Manager, last was its the to year we contributor This our carriers ships, it as business. cargo some revenue margins. within to to continued up mobile the extremely And to is service on and ship partner business, to position versus great our Pac. bulk and of deliver crew media our great AgilePlans also Ship X,XXX build cruise see than A.M. we've almost Nomikos, their split service

IoT an third of serving industry. of entirely big the business market Feasa's is our business focus Net introduction are The announcing Solutions our partner success being Suite Feasa Initially, future partners. KVH basic as and right in board designed in and develop Cloud the news component recently in tracking, container of supply Watch essentially Partner Watch maritime remote foundation we the Net time now we're logistical is continues proposals solution of soaring to container expand IoT out and connectivity watch space the application that as Connect, which and creating global our ecosystem. yesterday's IoT in maritime new XX/X application our the applications Most shipping our and straighten partner. real-time for into we engineer actively as connects a is offered maritime of on video. efforts intervention, steadily has KVH by challenges. These included IoT onshore machine-to-machine to is flow and value Our real expert rates an solutions. to experts joined are on as seeks particular for industry

smart of a enables advanced Connect, Connect Cloud shipping. with we're containing visualization. an connectivity integration addresses hundreds provides complexity solution acquiring enables a Cloud aggregates storage source cloud-based Now connect for for data sensors with API-based and offering package vessel maritime dashboards, and definitions, cloud-based of data an that data IoT data processes associated dynamic server, comprehensive reporting sensors, services applications along onboard architecture edge onboard edge-to-cloud of edge the data from data digital computing hybrid from data the and analysis, access edge and edge mapping and cloud cloud with the and that

Now of a in Connect stakeholders maritime the support selection broad Cloud can industry.

undergoing a share and analytics cybersecurity guidelines vessel's IMO data solution IoT owners and vessel data engine support manufacturers just can view its service their use to data on can has Cloud check providers IoT prospective of standard Watch owners upon to performance the KVH contracts KVH's is reports, reliant Connect Connect bring The consumption the monitor the remote Connect and equipment and in companies the sliver to live We enjoy power data throughout a to can months example, be equipment for of a customer for with to advanced, market fuel they're economic Ship dedicated XX. Connect available index, normalizes for cloud and multiple optimization industry. reduce fleet. can fleet provide global excited digital so And been to or transmissions continues compliance it warranties. available Efficiency pulling in their reporting integration. monitoring, vessel priority of very live maritime terminal, reports compliance X for maritime the into most example. testing Energy repair. with multi-card we're several ability not and will ship can to turn Cloud real-time like believe vessels, the is from benefit data a that subscribers software of see And to onboard to manufacturers on and robust Cloud uses service verification vessels Cloud November For as service security, operators names segment the connectivity equipment channel and The versatile connectivity. to and ease maritime develop. Blueprint now deploy services by enhanced rapidly since

business. Navigation Now Inertial moving on to our

Within for the continues the product million of deliveries to gyro have to sales last FOG QX fiber chain and line, and or strong $X.X a decreased in quite backlog had total our we OEM quarter million Inertial $XX for limited demand challenges, Navigation we Fiber of in product QX. third compared products optic year. The definitely supply business. X% be which now

robotics there's autonomous market, an platforms, long-haul autonomous, a including with Within in of shortage an estimated The faces trucking. the trucking and regarding increasing industry drivers severe crunch drivers. interest XX,XXX

platform autonomous result, been design its and companies. some as autonomous autonomous into include performance. drug inertial wins KVH the and selected achieved RMUs some sensor we're trucking We've LiDAR recent due with seeing of integrated sensor a from well. RADAR accelerated companies. developers demand primary has as are fusion solutions the being superior As leading leading that

in to We trucking who the be in space expect months. companies to coming able autonomous the with working are the announce

become success of FOG to starting the business. in an market vehicle important Our is part autonomous

from come In our fact, next of autonomous over to expect we platforms year. revenues XX% FOG vehicle

we applications. industry to recently gyro inertial weapon addition received is products Elsewhere In by many everything a autonomous XX% stations and our in fiber business, meet in Escribano vehicles, the for these million built CAGR new expected Spain. grow to the of optic KVH of a needs with of that remote order has $X.X

a our measure and stations while inertial aimed remote our long you keep to shock precisely business, pillar been As recall, thanks vehicle gun accurately ability fire have weapon the the motion weapon may of at target. to helping system's of the withstand

TACNAV pipeline have of solid opportunities as a We well.

In order customer the year. fact, production from during we're important quarter fourth this a an expecting U.S. of

record So chain. to of in disruptions solid and VSAT to global we the shipments wrap growth face supply up, achieved even the year-over-year

growth in expect deliveries we key for QX concern applications. some While still growth, rate on other markets in a to could term. firm our and short our remain Ship delivering these priorities, delivering establishing markets and building time, successfully limit overall and exciting continue the a future for foothold we're components new backlog strong and our in

indicated, revenue previously we've EBITDA are on for percentages as mid-teens adjusted of targets growth midrange low and double-digit track. for our margins However,

believe that outlook translate will value. our shareholder to into continue financial substantial We

back detailed a to like Roger turn I'd Now at the numbers. look to the Roger? call for more

Roger Kuebel

Thanks, Martin.

mentioned revenue Martin earlier, As $XX million in of at to our $XX.X even recorded quarter million third third XXXX. came the in compared quarter

increase segment $X.X for segment due $X.X was down revenue of gross of from million our connectivity quarter segment, a from By increased XX% to XX% of million, XX%, increase service decreasing by percentage mobile Service million million margin profit Connectivity as for the $XX $X.X with percentage XX%. the in year. year. last Revenue a the broadband airtime year-over-year with gross decreased increased gross in margin from or $XX.X third mini-VSAT points an our This consolidated quarter compared XX% third quarter third revenue. Revenue X Navigation to of with was million million million was quarter XX%. $X.X was which Our $X.X points. our increase X Inertial last the revenue margin in third primarily the in segment Mobile or

mitigate a quarter engineering increase resulted in related professional expenses these half place to operating the an funded a up the in $XXX,XXX. revenue of Product was $XX.X to $X.X compensation approximately Inertial decrease in to million, of noted, $XX.X of our segment, the TACNAV By million XX% in by a or decreased airtime the remaining benefit than gross $X.X put by loss last quarter, were Martin XX%. over service our the The segment, revenue by downturn. million compared revenue decreased and product expenses changes for third recorded is primarily a the As the or by revenue quarter increase in product in third this revenue related level, $X.X At third the last $X the Within loss X% was from due or was million million the of the operations fees. restored operating year. product combined as million, we million due year. of approximately million quarter TracPhone from of Navigation to in income X%, which year's Navigation margins segment, from XX%. grew $XX.X decreased million. Operating expenses less cuts revenue. million $X.X mobile million $X.X the to $XX.X quarter was decrease Inertial connectivity for and impact quarter compared XXXX. third $X.X was million revenue, while or and third COVID-XX In third this down FOG decreased decrease quarter up salary year in primarily margin revenues $X.X that Almost quarter sales our and million with increase and OEM prior of last $X.X of

an operating segment $X.X profit the of had million of Our of of operating $X.X $X.X Mobile an million an segment with million Navigation generated an profit Connectivity year, compared Inertial million year. operating last compared $X.X with quarter while for profit last profit operating

million. to compared year's was last Our million $X unallocated $X.X loss

quarter, was million third the same compared last a For of year. loss million $X.X in quarter the $X.X net net with our income

program amortization such year. a On with allowance and and year. a This for last from other with received share associated million compared $X.X transaction profit share we of those was share the excludes $X last in costs, of all the paycheck other income compared last compared tax our period loan quarter the million the $X.X we of forgiveness net year. EPS of protection forgiveness changes basis, loan quarter, to this loss quarter $X.XX million recorded adjustments. as non-GAAP gains nonrecurring which fees, a year. $X.XX After related $X.XX was as for same share and $X.XX last third and well of per losses, foreign valuation as had unusual per adjustments, effects tax stock-based exchange with we the the compensation in net EPS nonoperating intangibles, Non-GAAP per income per loss EPS the of gain non-GAAP

quarter adjusted Our a compared the $X.X year. a million with positive in positive quarter $X.X of for last the EBITDA third was million

was year. $X.X the than includes X about September million in from was XXXX, is $X.X $X.X used activities $X.X operating compared used million million less approximately $XX.X cash during of $X.X of earnings alone. measures, is year, last as be Net in million, operations the million, refer last Cash for Inertial quarter the flow that we release, $X.X digits morning. were For million, and we grow a our faster million, will services and the range expect Navigation months. end which capital an $XX.X by million. delivered single for of our $X.X and quarter expenditures this driven at approximately level, the was for was complete during high With -- XXXX. scheduled of reconciliation products for please respect backlog full XX the earnings earlier Backlog $XX year at is as end our by to a year believe of be for of scheduled third in quarter which be non-GAAP the Capital million Cash in delivered was as million release activities EBITDA published $XX products will Total to approximately which $XX to noted which in to growth approximately than in third financing the majority the resulting well ending of for that shipments. the for the revenue. million provided to balance the to at that last million, be cash high expenditures we positive is full the of AgilePlan revenue of year-to-date over noted still will operations

However, OpEx a is brought constraints revenue. will in be chain capacity production variety expected to QX on supply of limiting to and tick factor by up due for factors issues a

of hold to down prepared morning's us will this as for June. was the sets this it This now concludes will backlog line portion the XXXX what year well Although turn the up resulting Q&A Operator? call for end the the the next backlog open at for to now of XXXX operator I call. the is double performance, remarks, and our over


with Our Prentiss question James. from comes [Operator first Raymond Instructions] Rick

Rick Prentiss

couple A of questions.

First, of Martin, I to want prepared end to go of the remarks. kind back your

at margins referencing so remarks, mentioned EBITDA of adjusted the guidance not Roger as revenue gave. as But just were and the what EBITDA? set, about far you adjusted the Martin, You and that something revenue end some

Martin Kits van Heyningen

double-digit mid-teens and which margins, EBITDA back guidance given margins. in We was -- outlook June of revenue and midterm EBITDA some sort growth or had adjusted

we're we're targets based path business those. our achieve model So And good like working we that's on feel a towards. today, very we're to kind seeing on everything that of

Roger Kuebel

of next targets, sort me clear, midterm Just to for guidance those that's be intended not year. let are

Martin Kits van Heyningen

something matter, a something in I'm this -- put for we out or just presentation. Yes, that's restating we had that have for there that quarter

Rick Prentiss

like XX-year means I next that's not plan, -- over a just the so several want but something not a... midterm years,

Martin Kits van Heyningen

to Long years, term be X midterm to X Yes. X would be would X years.

Rick Prentiss

on to numbers? Then looking into that share need that to general. and also you as go steps you And autonomous make as up what exciting addressable market, vehicle like the to can at areas scale addressable to some your news ability far trucking and What interesting those market? hit in do autonomous

Martin Kits van Heyningen

the tens automotive of trucking not market, millions Well, those the numbers are units autonomous like market. of

us actually it's volume. So easier than an for step straight going to automotive

be -- feel now X that FOG pointed we keep or this as over is next we'll not X for expect XX% coming with platforms. early year of as that ramps comfortable I is the something autonomous out, away, we be pace from production. our X, our to very able that. starting next that will years to year, So And vehicle this revenues

Rick Prentiss

you share as of we've maybe And you teleops, some of progress the transportation drone-like when hearing you some well? remotely vehicles Have that logistics on are of like been small it's into that can something where it, call companies What kind from about that controlled. kind submarket? made us

Martin Kits van Heyningen

have. No, I can't say that we

are customers But the of are se, and the driver But we're it. vehicle follower sometimes none are have X a our there's example, might lead of per that most But or but teleoperated a not then autonomy there for ones human So autonomous. self-driving. in that vehicles, on. these lead means platforms are that X vehicle

Rick Prentiss

to we looking noted service how into the cost we obviously, little third a fourth of then than to service we next over ready year? also came going But looking in quarter transition move were that quarter And think lighter from being of and about base. should customer for, cost

Martin Kits van Heyningen

hear Did you I lighter than you thought? little was say you. it a didn't

Rick Prentiss

a was this we than content it think had lighter thought. report I morning. mean I Yes, [indiscernible] we little

So a bit we're still of blur. a

Martin Kits van Heyningen

little I expected our So bit a fairly last overall it consistent than better think -- came well, margin quarter. was with as in we

adding So subs. capacity we've been adding been as we've

we've of network. been lot a sub the adding to So HTS

doesn't -- the how all already is that when the HTS subscriber adding the we network. in XX% to HTS number off. migrate capacity About net airtime indicate revenue keep growth people as XX% we're And of that say up So and was on XX%. revenue much mind is of

next really that's that for in the driving savings So especially. cost what's year,

of of incurred amount cost, are year-over-year of the where So the come HTS increase already now, network. fair million immediate $XX order we've a the we January, reduction in almost we'll shed making the on And plus $XX million. cost an

saying but this answer, long a it's that migration is going well. So

As customers going be next it's don't net too long as to we positive year. for many come us big January, strand a

we improving my margins So should see is point.


Our Instructions] from Quilty Analytics. comes question Chris [Operator next Quilty with

Chris Quilty

autonomous to wanted up I -- follow on wanted to vehicle. up I on follow that the

either If year the recent next to what in you're compare or targeting years, contribution? this XX% year, does that

Martin Kits van Heyningen

larger. I the significantly don't than It's guess it's have year, for number exact more but next double be will year. my this --

Chris Quilty

most Are PIC and was And of sort hardware historic you designs expensive. contribution were volume? products shipments legacy relatively of at the the looking and that more next year derived being higher

Martin Kits van Heyningen

of year XXX% is PIC-based. everything ship we Yes, next

So the is answer yes.

So products photonic they're it to our new single IMUs primarily sensor. will be chip-based and as opposed

looking So a we've these that sensor. that's automotive not is seen single just another type difference they're from for a IMU, in applications, access trucking X-axis what for yacht

Chris Quilty

historically, about historically thousands hundreds of you're or set coming magnitude, last of a down was year think and you've high dollars dollars. or talked hundreds I presumably, of of And order to dollars

those volume numbers implying still accurate? you're significant increase if are at least So

Martin Kits van Heyningen

is significant short the as not no. point in that out. Well, require answer you yet the volume, would We're dropping-prices-into-the-hundreds-of-dollars

So self-driving perspective, are trucking need for us in of we'll magnitude today, But scale there's the the no from ramps up. for cheaper a order there's competitive no than to we price example. be, -- as

maintain grow to our and this intend the we into margins as market year next So with we customers.

Chris Quilty

year. what And you're terms where Because for? dropping of are been production volume of sort the give an update past you in your you've I line can capacity? know on you a in production scaling And new

Martin Kits van Heyningen

the the finally in. some the build to get you of And and ironic. not in quickly all we're and inefficient late to you the here our chips quarter it's that's sequenced invention We've chip. able process production floor. especially chips, thing now get to It's -- and they're a true trying when issues having We've but automated in correctly. build horribly on the and things done assembly be to oftentimes, And also optical that's we everything units in not with. It's kind And that manufacture. just it's in photonic have facility Chicago equipment. And only try added the get to when it's It's true way Middletown. even the parts, you have work of

way way disrupting in build. not is an ability out the product in you're of that's a to what terms manufacturing really just door. our than it seeing So to efficient worse It's get

optical shape an from for view, in component So large-scale production. of point we're fantastic

Chris Quilty

or order Question order in on of the that that in Is an X-digit sort QX. scale? you is expect terms of type TACNAV of X-digit the you said

Martin Kits van Heyningen

It's a big one.

Roger Kuebel

still time. sort be mean, large time, very program that they're by is large, program the in to over a in I air. in next will know it's mean, It's I the historical much standards. we over How of working ordered versus large It's very future year. up but next going be is years. delivered a program what still year through would be actually

Martin Kits van Heyningen

XXXX be seen. $XX yes, remains said, it's So all in north of million. And Roger as whether they it take to

Chris Quilty

past that you've for of one testing? well-known been is working this prototyping the programs couple on and years, of And the

Martin Kits van Heyningen

So it's a customer. repeat

Chris Quilty

year. over expect to competitors amongst and them? or do to mobile you implement out to side, price potential amongst year switching next both going increases front feel terms in this of connectivity Or you're the And those that in seeing to already Is some pricing that something you're like you're about your that going step you increases? see talked having into

Martin Kits van Heyningen

Well, it's and whether mostly due hardware permanent to be to a going it's cost, that's unclear change. the

lines up so known and $XXX ship you're the a of affectionately keep example. chip, just from production we've paying we've in price are shut part, for $XX,XXX can't for where scalpers, don't buying But down ended XXx going, a order you you're to as paying antenna. example, -- what $XX chips For a

cost customers. along us those to to going sold. going delivery. And of our in be our to pass keep increases goods forward, definitely able order are there So to for we're in

getting So chips. our the lead which are on than of waiting months, product is X more customers time these the interested some in

Roger Kuebel

mean about perfect kind we some some price heard increases mixed I we increases, information, about competitors, of other to don't We've have bag. providers. it's respect With by a but have heard

Chris Quilty

have up was I paper? toilet stocking been up on on chips should when stocking I So

Roger Kuebel

the wrong… everybody Yes, had

Chris Quilty

you about the you Can other to transition us incur whether possibly done? The there HTS having give QX subsidize cost an you've the that transition of shift incremental to happen costs talked in X. that may get any past, are potential customers or in January idea of will really that

Brent Bruun

may We're but overly $XXX,XXX. or talking There Chris, $XXX,XXX costs, won't be it be some material.

not we're upgrading giving expense And and going door. their significant So on it's the like kits existing hardware. out more and deals upgrade talking like them equipment a

Chris Quilty

of question, final terms CapEx. in And just

CapEx related I stay KVH Watch, do may XXXX? think, out year as if you next CapEx a you expect we you this of incur expenditures? either or about Do think for up? levels can same in what step Or and or AgilePlan in of step related year the sort and terms

Roger Kuebel

ready really year not next talk We're yet. about to

it's the think on we're revenue on as we all generating. subscribers I Obviously, putting -- It's a grow that's AgilePlans, CapEx. basis. good relative

So to proportional I Agile sort about -- revenue about think CapEx out haven't the sort being growth. point. year But of put of we you we're really prepared can sort not specific this at it, think to really of next anything

Martin Kits van Heyningen

as very and growth to be changing business the this Agile there. for very, for for next as The entered And we've year. think got model well strong backlog continues quarter I Agile. isn't strong we

Roger watch similar and something success-based. everything see far as to going goes you're is think next just Brent year. as said, I directionally, then And So as

but successful, that the the we're that CapEx, the So more mean higher potentially would successful.


any session. you I will today's will conference for the conclude turn time, this at back remarks. question-and-answer to That final Mr. Kuebel,

Roger Kuebel

operator. Thanks,

end joining for look successful forward want final call. thank no appreciate remarks we us the everyone it, have a to year. for the I of We and We to here.

Martin Kits van Heyningen

everyone. Thanks,

Brent Bruun

Thank you.


may now This concludes today's participants disconnect. conference. All