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GDI Integrated Facility Services Inc
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Good morning, ladies and gentlemen, and welcome to the GDI Integrated Facility Services Inc. Second Quarter 2021 Results Conference Call. [Operator Instructions] Also note that the call is being recorded on Tuesday, August 10, 2021.And I would like to turn the conference over to Stéphane Lavigne. Please go ahead.
Thank you, operator. [Foreign Language] Good morning, all, and welcome to GDI's conference call to discuss our results for the second quarter of fiscal 2021. My name is Stéphane Lavigne. I'm Senior Vice President and Chief Financial Officer of GDI. I'm with Claude Bigras, President and CEO of GDI.Before we begin, I would like to make you aware that this call contains forward-looking information, and we ask listeners to refer to the full description of the forward-looking safe harbor provision that is fully described at the beginning in the management discussion and analysis filed on SEDAR last night.I will begin the call with an overview of GDI's financial results for the quarter, and then we'll invite Claude to provide his comments on the business.In the second quarter, GDI recorded revenue of $372 million, an increase of $45.5 million or 13.9% over Q2 of last year, including organic growth of 7.8% as prior year revenue was greatly affected by the COVID-19 pandemic shutdowns. We recorded an adjusted EBITDA of $33 million in the quarter, an increase of $10.5 million or 46.5% over Q2 of last year. Adjusted EBITDA in our Janitorial business continued to be positively affected by enhanced services delivered to existing and new clients whose facilities remain open or partially open during the pandemic. And our Technical Services business had a strong quarter when compared to the prior year when the pandemic-driven economic shutdown negatively impacted its business.On a year-to-date basis, revenue increased by 4 -- $74.2 million or 10.9% to reach $755.8 million compared to $681.6 million last year. Organic growth was 3.4% year-over-year, and revenue growth from acquisitions was 9.9%. Adjusted EBITDA in the first half -- sorry about that. I missed my -- adjusted EBITDA in the first half amounted to $66.5 million, an increase of $23.9 million or 56.2% over the corresponding period of 2020.Moving to our business segments. The Janitorial Canada business recorded revenue of $126.1 million in Q2, an increase of $7.2 million or 6% compared to the second quarter of 2020. The segment also recorded adjusted EBITDA of $18.2 million compared to $15.2 million in the second quarter of 2020, representing a margin of 14.5% compared to 12.7% last year.Our Janitorial USA business recorded revenue of $74.9 million in Q2, a decrease of $5.5 million compared to Q2 of 2020. The revenue drop is mainly due to $9.2 million impact from the depreciation of the U.S. dollar in relation to the Canadian dollar, while the segment generated 4.6% organic growth in Q2. Adjusted EBITDA increased by 5% to $7.2 million or 9.7% of revenue compared to $6.9 million or 8.6% of revenue in Q2 2020, despite the FX impact year-over-year.Our technical segment recorded revenue of $160 million, an increase of $52.7 million or 49% over Q2 of 2020, with strong revenue growth coming from acquisitions of 28.2% as well as from organic growth of 22% in -- as this segment was greatly affected in prior year by the complete shutdown of operations in many markets in response to the COVID-19 pandemic. Adjusted EBITDA was $9.9 million, and adjusted EBITDA margin was 6.2% compared to the breakdown -- the breakeven level recorded in Q2 2020.Finally, our Complementary Services segment reported revenue of $14.7 million in Q2, a decrease of 41.9% compared to Q2 2020, and adjusted EBITDA was $600,000 compared to $4.3 million in the second quarter of 2020, a decrease of $3.7 million. In Q2 last year, this segment experienced an abnormally high demand for personal protective equipment in response to the COVID-19 pandemic, which has since normalized, while during Q2 of this year, the business experienced lower demand than normal as low occupancy rates caused a decrease in the demand for day-to-day cleaning supplies.I would like now to turn the call to Claude who will provide further comments on GDI's performance during the quarter.
Thank you, Stéphane. Good morning and thank you for taking the time to participate to our earnings call. I'm very pleased with GDI's performance in the second quarter of 2021. The COVID-19 pandemic continued to positively affect most of our businesses during the quarter. We're working closely with our clients to help them develop reoccupying plans to ensure that their facilities are safe and -- are safe, their environment is safe for the occupant to return to.There continues to be a degree of uncertainty around the path that the virus will take, with recent increases in case numbers in certain provinces and states driven by the Delta variant, and we continue to believe that as long as COVID-19 remains a risk to our society, our Janitorial business segments would perform well as our client looks to GDI for expertise and enhanced support to keep their facilities safe. As GDI has demonstrated since the beginning of the pandemic, we have the ability to implement many actions to manage costs, mitigate business disruption, protect our employees and ensure that we are able to provide our clients with the essential services they need to keep their facilities safe.Turning to our business units. Our Janitorial segment performed well again this quarter, increasing its adjusted by -- EBITDA by 20%. It is -- as it was the case last year, even if several cleaning service clients were operating facilities at lower-than-normal capacity levels, many clients required additional services and specialty services due to the pandemic, including, for example, higher frequency cleaning and disinfection services.Our Janitorial USA segment also performed well during the quarter, delivering an adjusted EBITDA of $7.2 million and an organic revenue growth of 4.6%, despite a significant negative FX impact in the quarter. As we saw in our Canadian business, a number of our Janitorial U.S. clients also required additional services due to COVID-19.Our Janitorial segments continued to take a leadership position in the industry in advising clients on the various processes and procedures to implement and the products to use to help keep facilities clean and mitigate the risk of virus spread. At present, many of our commercial office clients are planning to reoccupy their offices progressively in the fall of 2021, and we are prepared to be there to support them through our enhanced cleaning service offerings.Our Technical Services segment has recovered nicely from the widespread pandemic shutdown experienced in Q2 of 2020. Our on-call service business is operating at prepandemic level. Our project business has resumed, and we are actively engaging in discussions with several clients on technologies and solutions to implement -- to enhance our quality within their facilities. We have a record backlog in our Technical Services segment and are expecting the second half of the year to be robust.Our Complementary Services segment, which consists of our product manufacturing and distribution business, recorded a decrease in revenue and adjusted EBITDA during the quarter. While this segment continued to experience demand for our personal protective equipment, it is at a much lower level compared to Q2 2020 when demand peaked for our PPEs and supplies were scarce. This segment is currently being impacted by significantly low occupancy rate during the second quarter of 2001 -- 2021, I'm sorry, which resulted in the decrease in demand for day-to-day cleaning supplies, such as soap, towels, tissues and garbage bag. As occupancy level begin to rise, we expect to see a rebound in demand for daily consumable in this business segment.We are now more than 16 months into the pandemic. And while the outlook remains uncertain, we are encouraged with the widespread availability of the COVID vaccines across North America and the rising vaccination levels we are seeing. We are expecting our commercial clients to begin reoccupying their facilities in the fall of this year, and we believe that vacancy rates will begin to normalize to near pre-COVID levels by the second half of next year, barring any unseen event.I'm very proud about how we have performed, not only as a business, but also through our contribution to our clients and society and stepping up to fight off the virus. We have demonstrated that our business and employees are resilient in the face of adversity and that we are capable of delivering strong operational performance in a challenging and uncertain environment. Our balance sheet is stronger than it has ever been. Our leverage ratios are at an all-time low, and we are in a very solid financial position. We continue to focus on our growth through acquisition strategy, and our financial strength will enable us to capitalize on strategic opportunities as they arise.That concludes my remarks, and now I will ask the operator to open the lines for analysts for questions. Thank you.
[Operator Instructions] And your first question will be from Michael Doumet at Scotiabank.
You've been selling the Clean for Health program for more than a year at this point. I think when it was created, the thinking was that it would create a competitive advantage as some of the smaller competitors wouldn't have been able to replicate the sophistication of these services. At this point, could you discuss any tangible benefits? And are you seeing higher win rates for RFPs, maybe higher retention, anything like that, just to get a sense for market share or anything like that?
Well, Michael, I will picture it, and you know what, I'm not talking with exact numbers because we do not have this available at this time in, you know what, in [ CNA ]. But I would say that approximately 10% of our Janitorial revenues are derived through our Clean for Health program or enhanced service programs, which is now more into higher frequency than disinfection process. Earlier in the process -- earlier in the pandemic, there was a lot of specialty disinfections. But now it's more around enhanced services. So at this time, we run around 10%. But now as the office will reoccupy, this is where actually all our work around our enhanced services will materialize because occupants, as they get back into their offices, they will require a clean environment or a safe environment, and this is what the programs are built for. But at this time, we are working at more or less 10% of revenues.
That's great. And then maybe just as a follow-up, I guess, a two-part follow-up. Any way you can disclose maybe the margin profile of those services versus maybe some of the regular business? And then second part, I mean, are -- enhanced cleaning services, are they at this point being embedded into customer contracts? I mean are you negotiating that now? And what to think about that in terms of being included into RFPs in the next couple of quarters?
Yes. We have seen some, I would say, public or quasi public clients starting to implement or starting to include enhanced services in their bid specifications. The only concern I have, to be very honest, Michael, is that the quality of bidders, sometimes, I have a little concern that they will not apply -- they will not execute to the standard that they should. So that's always a problem. But on the commercial end and commercial side, I think that clients will individually request express services, but I think they would like to keep a certain flexibility on how they want it to happen.So I'm not sure that -- because you understand that the multi-tenant building, the landlord is responsible for the base of the building, but each tenants are responsible for their space and some extent. So we will see a mix of everything. But on the institutional side, we have seen some RFPs that are asking for enhanced service included in their base contract.
That's really interesting color. And any comment on the margins that you would feel comfortable providing?
Well, the margin, I think, is -- we have to see the margin as a whole, okay? Because at the end of the day, we do not sell enhanced services at 3x margins than regular service. But these services are rendered at a higher margin because there's not -- they do not impact a lot of equipment or a lot of hard costs associated to. So it provides a globally better margin. Also in our buildings, the base cost structure doesn't change as you add up more services into it. So that's another positive factor. And the third positive factor is that occupancy, if you have less occupancy overall, we perform the work a little bit at better margins because there is a lesser clientele to service. Am I clear in what I'm saying to you, Michael? The margin enhancement is those 3 factors together.
Got it. So the occupancy component, that's just -- it's, I guess, a greater labor arbitrage, right? If there are fewer people in the office, it takes less time to clean. Is that correct in terms of that?
Yes. Exactly. You know what, there is a slight saving there. There is a slight saving in hard cost. There is a slight better margin. But you know what, you put a little plus a little plus a little, it makes a substantial -- it gives a result.
Next question will be from John Zamparo at CIBC.
Claude, within the 2 Janitorial segments, how would you describe the level of recurring services revenue compared to the Q2 2019 period?
Yes. We are about -- first of all, John, I would like to say 2 things. First thing is when we say we have less recurring revenue, those clients are not lost. The business is paused. So that's one thing that we need to keep in mind. But if we take -- if we remove enhanced services, we are running about 80% in recurring revenue. So we still have a 20% gap of an occupied building or partially occupied properties or partially operating facilities. So we have about 20% -- 20% lower than prepandemic overall.
Okay. Got it. And...
And this -- and John, this revenue -- as people reoccupy, as building are reopening, this revenue will go back. It's not abnormal in these times that we are -- we do not achieve the revenue -- the historical revenue. The business is just not there.
Yes. Understood. Okay. Actually, sticking with Janitorial, particularly within the U.S. Have you seen any response over the past month or so related to the Delta variants? Are clients asking for more recurring, less recurring, more enhanced, less enhanced? And I'm curious how that's playing out as the virus evolves, particularly south of the border.
And yes, you know what -- and John, it's very -- it's amazing. You know what, between Q1 and Q2, we don't see much difference. We don't see much changes in customer dynamics. We don't see much change in demand. We're still performing at approximately what I call the regular, enhanced and base services. We don't see any big jump yet. But I can tell you that now, people start to stock -- with what we see over the last couple of weeks because don't forget this is June. Now we are in August. What we have seen lately, and I don't want to do forward-looking statement, but they're starting to be a concern now, do we have more demand and more questions around the service. And we see maybe customers that were thinking to reoccupied in September, talking about gradual reintegration or pushing back a little bit on the reintegration. This is what we are seeing now, but not into Q2.
Okay. That's helpful. On the Technical Services segment, can you share what percent approximately of that segment's revenue comes from HVAC or air quality or air filtration? It does seem like there's a significant opportunity there. So just would like to get a sense of how material that portion of the business is.
Yes. Well, listen, at this time, I don't have data available for you, John. I can tell you that because it's part of blends of -- you know what, it's part of blends of services, we do not actually qualify it. And I take a good note of it. Maybe I'm going to ask my financial team to try to discriminate. But I would probably guess that, again, we have maybe between 5% and 10% of base HVAC service, not base revenue, but base HVAC services that are related to better filtering, UV disinfections and dock work. Maybe 5% to 10%, it will be a good guess. But don't take this number as a solid, solid. We do not have a specific recording of it.
Okay. Got it. That's helpful. And then if I could sneak in just a housekeeping question. You mentioned SG&A decreased partly because of lower credit losses. Can you quantify what that amount was? And can you give us a sense of what the provision for credit losses was in Q3 and Q4 last year?
Well, listen, Stéphane, maybe you have the more accurate -- credit losses is -- we were provisioned -- we are provisioned for potential client losses. We have experienced some. But overall, you know what, I think our performance is good. But Stéphane, maybe you could add up on that.
Yes. You can see in our statements the allowance for the full account that has grown last year. So in Q2, we were really at the beginning of the -- I guess, of the pending crisis. So we increased it, and we increased it a bit in Q3, Q4. But we didn't do it this year. So we haven't increased. We're provisioned for losses this year. So if you're going back to last year, so it represents something, let's say, like $2 million to $3 million like of difference in the credit losses.
Yes. So we have not taken extra provisions. This is the general idea.
Next question will be from Neil Linsdell at IA Capital Markets.
Yes. Just getting back to the HVAC question a little bit. I don't know if you can get more color, but I'm really interested in what's going to happen as everyone was back into the office, as I think that the emphasis should turn even more to air quality. And are you seeing any kind of problems getting equipment or people talking about major revamps of their air conditioning air quality systems? And is a difference -- is there a difference between Canada and -- or different parts of the U.S.?
Okay. Well, our experience in the U.S., as you know, is relatively new. So it's very hard for me to refer to historic. What we have now is we have customer demands. This is the interesting part. Before filtering, in-air quality was probably #10 into their list of priorities. Now indoor air quality now is probably #2 or 3, which is very interesting. Clients are still -- the only thing that I find difficult is that there's a lot, a lot, a lot of information. There's a lot of systems or solutions popping up left and right, some with good potential and some to be totally silly.So what we have realized is customers are a little bit somehow confused on the best approach. So we are -- we recognize -- we actually -- we -- maybe it's not the right word in English, but us, we keep the line of what is recognized as sustainable science on the filtration, on disinfection and UV. And I think this is paying off, and I think it will continue to pay off over time.But yes, customer awareness is there. And also what you have in some areas is a lot of places where they had no air filtration or no HVAC at all. Now they are -- they're getting involved into capitalizing on getting some air -- some equipment in their facilities, which is also a good prospect. Example, retirement homes in Ontario, example.
So is there any backlogs that you're starting to see as far as ordering the hardware?
You know what, we do not have a major issue yet on the hardware. We have some issues on deliveries and transports for some specific equipment. But as of now, it's not a critical issue for us to get our supplies in this particular area.
But in other areas, there are?
Well, listen, you know what, our superior business is exporting a lot of goods, and it's a challenge -- boat and containers are challenges. There is disruption in the supply line. So -- but again, you know what, it's our job to cope with that, and we are doing it.
Okay. And then just a follow-up, concern always in a lot of different industries right now is labor constraints. Because you've got a very labor-intensive business, can you talk about what you've seen, how it's changed, what you're doing about it? And specifically, again, between geographies?
Yes. Okay. Okay. Let's start with Canada. Okay. In Canada, yes, we have some pressure in many markets. As there was the Canadian subsidy plans that were supporting people. So yes, we have been experiencing some challenges there. We see also -- our business is greatly unionized, and there is a portion which is not unionized. On the union side, the good news is, although there's an inflationist pressure, we have collective bargaining agreements, which are pretty solid. So it gives us a certain stability. On the nonunionized market, we see a little bit of pressure on the rates. So yes, there is maybe a 10% to 12% labor rates pressure, more or less in the West part of Canada.In the U.S., there is a global -- not a shortage, but yes, we have to work harder to get our labor. And I would say that there is probably a 5%, 6% upward pressure on the hourly rates as of now. I don't know exactly in 6 months how it's going to qualify as the programs are getting shut downs and everything. We'll see how it turns out. But this so far, we have probably a 5% to 6% labor increase pressure.
Okay. And any change in like the employee churn or turnover?
No. You know what, I don't have my last -- you know what, we don't do that every month. You know what, the last time we checked in March, there was not a significant churn. But understanding that we took off everything -- everybody that was furloughed, we did not count on it. And now we are re-calling the furloughed people. And I would say that our response level on furloughed people is about 50%. So some others have either decided not to work anymore or they have done -- they have found themselves another work.
Next question will be from Frederic Tremblay at Desjardins.
My first question is on Technical Services. I appreciate the color on the record backlog there. I wanted to ask maybe about more future opportunities in the current bidding environment. Are you still seeing a good flow of opportunities? Or was there maybe a wave of projects that came on a few months ago with reopening plans? So just maybe your thoughts on the current slate of opportunities for Technical Services.
Yes. Well, listen, again, I just want to make sure that I'm not putting myself in trouble with forward-looking statements, Frederic. But I can tell you that the -- on the business bidding, it's very busy for the last 6, 8 months. We have -- like you said, we have a record backlog, and the bidding is very busy. This I can tell you, and it's almost everywhere.
Okay. Great. And then just on Complementary Services, in other industries, we've seen some destocking events at some customers that had excess inventories. Do you feel like some of the facilities, some of your clients may have excess inventories of soaps, garbage bags and other products, and that may delay demand for those products as buildings open? Or that's not the case at all?
No. Frederic, you have very to-the-point questions. On the Complementary Services segments, let me tell you about the alignment, okay? Last year, you know what -- anyway, you know about last year. You know what, [indiscernible] [ gets loose ]. Nobody has nothing, price rises up. So -- and -- but we have problem to get the goods. But overall, we were able to cope.Now what's happened is now -- by year-end last year and early this year is everybody start manufacturing stuff or becoming a distributor of anything. So now what we add is -- we have is an oversupply of goods in the market. So that makes a downward pressure on price, and people are dumping their stock. So this is -- the negative part is on the PPEs. You know what, there was -- there is a global oversupply. And I'm sure that you've seen it. Go to any local stores, they're giving them away, almost. So that does not help.Also -- but also this -- but also is all the facilities, the commodities, what I call the commodities is garbage bag, paper towels and all these components, what we call commodities. This is actually working at 50% because people not being in buildings or partial occupation, they don't buy those products. But the good news is for us and our industry, this is the least margin products. It's bulk. It's higher revenue volume, but it's lower margin. It's commodities. This is what it is.So what we have is we are able to still continue to service our clients on protective equipment and disinfectant at a better margin. But on the top line, what's happening is we have lost somehow a lot of extra work that we had last year. But we did not recuperate our base business on the commodity. So globally, on the margin, we do okay because of the business mix. But on the revenue, we're missing on the extra work, on the extra sales, and we do not have recuperate our base commodity business. Am I making myself clear?
Yes. That's very helpful. And then my last question would...
[indiscernible]
Sorry, go ahead.
I just want to tell you, again, like I said, this business is not lost. It's only paused.
Yes. Understood. And my last question is on the acquisition strategy. If you can maybe provide an update on valuation expectations from sellers and your view on that and your preferences in terms of geographies or segments, if you have any?
Well, listen, 2, 3 things is on the M&A side. We're still very active. As you know, we always have been very prudent. Well, we try to be as very prudent, as usual, into finding the right business mix and the right talents and pay the business at the right value. So we're busy. We -- I cannot say more than this, but night is young.What we have seen though is, yes, there is a little bit of activity. But we have not seen a business -- we have not seen significant businesses that were a good mix for us or that could bring a lot of value so far. But again, we're still working on that front. So stay put. Sorry if I'm not more precise than that, but I think you can read between the lines.
[Operator Instructions] And your next question will be from Maggie MacDougall at Stifel.
So I wanted to circle back on the questions surrounding cost inflation of labor. Could you just remind us your price pass-through mechanisms for inflation in various input costs, including labor and materials?
Well, first of all is most of our Janitorial business segment and their geographies are unionized with fairly stable working -- collective bargaining agreement. So this part is stable. On nonunionized markets, we are seeing a little bit of pressure, but most of our prices are passed through. So our risk for us is less, is not great on that front.On the material side, to be very honest, we have not seen dramatic increases because we produce ourselves and we deliver ourselves on the Janitorial side in many markets. So we have a little bit of control over that. So at this time, we're not in a mode where we see a big risk, a big inflationist cost risk.But mind you, if you want to talk midterm, inflation in our business is not exactly bad. It's -- we have to manage it. But if there was a more sustainable inflation, I think we are a business that could be more resilient than a lot of other type of business. Is it [ worth it ]?
Yes. Because you'd pass through the price increase and your margin would stay roughly the same. So you'd have probably a bit of profit margin improvement on the fixed costs, management costs, et cetera, remaining stable.
Yes. So maybe in percentage, it will not change a lot, but on the dollars and cents, it would. This being said, it looks easy, but it's a lot of work.
Yes. I got it. Yes. Yes. Okay. And then...
[ Because it doesn't ] -- yes?
Please go ahead. I didn't mean to interrupt you.
And so what I'm saying, in those times, our capacity and our resiliency to work with customers and being flexible and find the right business approach and being efficient, this is all -- so this is where it pays off. You know what I'm saying? When everybody is happy and life has been -- life is easy, you can be mediocre and still survive. And those times, only the fittest survives.
So that brings me to my next question, actually. I think one of my peers has touched on the fact that you guys have been able to navigate the situation in the past 18 months probably better than a lot of your smaller peers. And from a competitive situation in Canada, you're definitely the leader in janitorial in terms of market share. I'm wondering if the combination of your leading market share, your ability to provide services and advice that others maybe cannot have put you in a position of being a bit more of a price setter in the market here in Canada.
Yes. Well, listen, I cannot -- Maggie, bear with me as we're one of the few public businesses. So we do not have the visibility toward our competitions. But let me share with you over the last 2 months, the 2 main markets in Canada, which is Montreal and Toronto, we have been awarded the best and beyond service quality to the real estate industry award at the BOMA award. So my point is the market, I think, somehow recognize the quality of what we have been providing to the sector for the last 18 months. May I take it as it is -- it's a recognizance, I think, of that. You know what I'm saying? And for me, it's a good reward because if the market recognize that, it means that we're doing something right somehow.
So that brings me now to my third question, which is I recall last year, there was RFPs that were pushed out for some meaningful pieces of business because customers were not interested in changing suppliers during the pandemic. Have you seen any of these pieces of business come back to market? Or have you heard of any movement regarding those contracts?
Yes, yes, yes. We have seen it. People are getting back on to the drawing board. Fortunately, for us, we have been lucky on new business award lately. So that's a good news. Yes. But I did not make the study of everything that was pushed back. But I can tell you now that I feel like people are resuming more or less normally into their sequencing of bids. People that had pushed out last year, they went on bid this year. And like I said, we were fairly good -- we had fairly good successes there. I'm not aware of any large clients that are pushing back a bid. They just proceed as -- they proceed as scheduled.On the building -- you know what, me, I'm looking at bidding monthly. Example, I don't want to disclose numbers, but in 2 -- in the 2 quarters, we bid more or less $200 million. So for me, it's a regular half year.
Okay. That's good to know. Final one, historically, the Board and management has favored retaining internally generated cash flow for growth opportunities, more or less M&A opportunities. You have very rapidly paid down any leverage you took on to finance the acquisitions that you've made this year and last year. Your balance sheet is in fantastic shape. I'm wondering if there is discussion around potentially paying a dividend, considering how much free cash flow you're generating and just the sort of balance that could bring to your offering to investors.
Well, listen, Maggie, I read you, but you know what, we're not even halfway of where we want to go. So allow me to say is we need all the -- there are 2, 3 things. We need all the cash that we have in order to finance our growth. Secondly is, you know what, we are in a post-pandemic situation. I don't know about you, but me, I have -- I don't have full visibility of what's going to happen over the next 2 years. Allow me to say, I'd rather be prudent and still bet on growing the business and creating value to share increase instead of putting a dividend in place and play the dividend approach to increase the share price.You know what, again -- but please take it with a grain of salt. But at this time, I think that we would be focused on creating value to shareholders through continuing our growth and expansion strategy. And you know what, as market goes forward, maybe we'll be happy that we have some flexibility on the cash side. And secondly, there are opportunities that may arise if the economical situation change. So I think it's not the right time to put a dividend in place. It will only satisfy one end of the business. But I think for the greater means, I think we should continue on our strategy.
And at this time, Mr. Bigras, we have no further questions. Please proceed.
Well, thank you very much again for attending this conference call. I would like to say a word regarding the team. Everything that you're seeing is the sum of a lot of hard work. At the end of the day, the truth of it is leadership is doing its job, but there is a lot of people that are focused on the business, and I'm very -- we're very fortunate to have such talent managing on the day-to-day.We're continuing our business plan. We're continuing to grow our business segments and look forward to continuing. And again, we still navigate into some kind of uncertainty, but I think we have the flexibility and the mean to seize any opportunities that may arise. And we are certainly capable of continuing to service our customers going forward, no matter what the situation will develop into. Thank you very much again for your time.
Thank you, sir. Ladies and gentlemen, this does indeed conclude your conference call for today. Once again, thank you for attending. And at this time, we do ask that you please disconnect your lines.