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Kadant Inc., Q1 2008 Earnings Call Transcript

by:QY Precision      2019-10-20
Kadant Inc. (NYSE:KAI)
Q1 2008 earnings call at 11: 00 a. m. on April 24, 2008, ETExecutivesThomas OBO-chief financial officer OfficerWilliam Rainville chairman and chief executive officer OfficerThomas o\'brienedward J.
Jonathan W. Executive Vice President and Chief Operating Officer
Painter and executive vice president
Lipton-Barrington Research Association, executive vice president of langzhiwan
Hueston-J with Claudia handle. P.
Morgan securities
-Paul Mammola-Sidoti & Company, LLC, equity research firm.
Good morning.
My name is Barbara. I will be your conference operator today.
At this time, I would like to welcome all of you to the cadante company.
First quarter earnings call. (
Operator instructions)
Sir, I\'m glad to hand over the floor to your master now.
Chief Financial Officer Thomas O\'Brien
You can start your meeting, Sir.
Operator Thomas O\'Brien thank you all, good morning, welcome to 2008 earnings call in Qadan for the first quarter.
Bill lainville, our chairman and chief executive, is with me today.
Let me read the Safe Harbor Statement before we start.
We may make a variety of comments today on the expectations, plans and prospects of katante\'s future --
According to the statement of the Private Securities Litigation Reform Act of 1995 looking for safe harbor provisions.
Our actual results may be very different from those.
Due to a variety of important factors, including the factors we discussed in our 10 k annual report for the financial year ended December 29, 2007 form, which is filed by SEC and can also be found in the investor section of our websitekadant.
Com under the title of the SEC filing.
Also, any forwarding
Our forward-looking statement on this call represents only our point of view today, but we may choose to update it forward --
Look at the statement at some point in the future.
Even if our estimates change, we explicitly deny that there is any obligation to do so and you should not rely on these forwarding --
Any date after today represents our point of view.
In this call, we will mention some non-
GAAP Financial indicators. These non-
The accepted accounting principles are not prepared in accordance with the accepted accounting principles.
A reconciliationGAAP.
A reconciliation
GAAP financial metrics are included in our first quarter earnings release released yesterday, which can be found in the investor section of our websitekadant.
Under the recent news headlines.
So I will transfer the call to Bill lainville, who will introduce you to the business and future prospects of Cardan.
After Bill spoke, I will outline our financial results for the quarter, and then we will have a Q & A session. Bill?
Thank you, Tom.
Good Morning, everyone, welcome to our conference call, we reviewed Cardan\'s 2008 performance in the first quarter and commented on the outlook for the rest of the year.
I will start with the financial highlights of our continued operations in the first quarter.
Our first-quarter earnings fell 3% to $85.
9 million was mainly due to a decline in revenue in North America and China, with a 9% drop in backlog preparation operations.
On the other hand, our fluid processing business continues to perform well, growing by 12% to $22.
Income with special advantages in Europe, South America and Southeast Asia.
Our operating income increased by 2% to $7.
6 million, 14% increase in paper
Do the system segment.
Our EBITDA grew 3% to $9. 4 million.
EPS increased by 9% to 36 cents after dilution.
By contrast, our guidance is 30 to 32 cents.
Our bookings for the quarter were $90 million, down 11% from the first quarter of last year.
The decline was mainly due to overprepared bookings in North America and China, where some projects were delayed by customers.
However, our backlog is still very healthy, up 40% from the first quarter of last year to a record $0. 119 billion.
Finally, we got another stable quarterly cash flow from operations, generating $6. 3 million in q1.
Our current net cash position is $15. 6 million.
We also bought back $12 million in stock this quarter.
Now look ahead to the rest of 2008.
As we all know, the growth rate of the US economy is amazing. S.
The economy has slowed sharply, and the US economy is likely to fall into recession. S.
Some economists expect growth to slow in Europe as well.
Concerns about the health of the Western economy have also led to some caution among Asian companies that rely on Western exports.
Nevertheless, we continue to see strength in areas such as Russia, India and Eastern Europe.
As much as we wish to do so, we have not eliminated the economic cycle and we will continue to have a period of growth in the world economy, followed by a period of austerity.
During my tenure, I experienced several downturns, and during difficult times I appreciated our business model even more than good times.
There are four main factors that benefit us in a slower time.
The first is our consumables and parts business.
Consumables and parts account for less than half of our sales and are fairly stable even during the slowdown.
Second, we have diverse business areas.
Only about 40% of our sales are from the United States. S.
This means that we don\'t rely on a certain part of the world, and usually, when one region is weak, another region increases capacity.
Third, we have strong manufacturing capabilities in North America, Europe and Asia.
As currency and other factors change relative manufacturing costs in different regions, we increase the flexibility to move production to areas with the lowest cost.
Fourth, we have a strong balance sheet and capital that allows us to take advantage of acquisition opportunities.
Moreover, unlike many countries in the past, this slowdown is characterized by high commodity prices for goods such as energy and fiber.
We offer many products in our business from fluid handling systems to stock preparation, which saves our customers money, energy and fiber costs.
Higher energy and fiber cost increases the benefits of customers upgrading to our devices.
Overall, our strategy to maximize our business remains the same, especially suited to the current business environment.
Our strategy includes emphasizing products and providing high returns to our customers.
Cost environment.
In addition, in regions with lower market share of accessories and water management products such as China and Germany, our market penetration rate is also increasing, and we continue to focus on China, Russia, Eastern Europe and India.
At the same time, manufacturing and procurement continue to shift to the low end.
Seek opportunities to apply our technology outside the paper industry and seek opportunities to complement our business acquisition.
When I look back on our main markets, let me talk about these strategies.
Let\'s start with the prospects of North America and Europe.
Due to the high cost of energy and fiber, the operating profit of many of our customers in North America and Europe is declining.
Some of our businesses, especially fluid processing, are benefiting from this because we have the technology to help in these areas. The energy of Cardan
In the past few years, there has been strong growth in efficient drying systems.
Although the pace in the United StatesS.
With global sales up 12% and bookings up 11%, demand in the rest of the world remains strong.
We continue to be optimistic about this product line.
Our dryer management system helps to achieve energy savings in the dryer section, which is the part in the paper machine that consumes the most paper production energy.
Our stock products help our customers to increase the production of recycled fibers, thus reducing their fiber costs.
Fiber is the highest.
The cost items of our customers account for about 50% of their manufacturing costs.
The price of fiber, especially OCC, has risen sharply, putting more pressure on paper companies to increase production than ever before.
Earlier this year, for exampleS.
Customers have installed one of our fiber optic network screens, which can increase production by 1% per year.
It may not sound like that, but for 400-ton-per-
Four tons of clean fiber per day.
Since the liner price is $700 per ton, the return may be convincing.
In addition, many customers choose to reduce fiber costs by going deep into waste logistics.
Deeper waste logistics means more dirty waste.
This requires more stock equipment to separate fibers from contaminants.
We also continue to emphasize after-sales products to provide customers with good returns by saving energy or fiber.
Despite the weak economy, due to this strategy, our after-sales market booking and inventory preparation has increased by 10% in North America.
After-sales bookings for our accessories and water management product line also grew slightly in North America.
The sharp depreciation of the dollar has pushed up energy costs in the United States. S.
But it also makes them more competitive in the world market.
I believe in our America. S. -
Customers based on paper manufacturing have gained a competitive advantage
So business-based.
In the end, this will be good news for the paper industry in North America.
Although Europe has been hit by a combination of currency-to-dollar appreciation and rising energy costs, our business in Europe has performed well, partly due to strong demand for our fluid processing products, as I mentioned earlier, and the growth in Eastern Europe, Russia, India and the Middle East, served by European businesses.
For example, in the first quarter, our customers from the Middle East and India received two stocking orders of about million euros.
Now, let\'s talk about China, one of our most important markets.
Although China\'s economy continues to grow, our customers in China are affected by the economic situation in North America and Europe, and most of China\'s paper production, especially liner boards, eventually become boxes for transporting manufactured goods to the West.
This has led some of our clients to postpone their projects until later this year.
For example, our down payment for pending orders of $4 million announced in a copy has been postponed from spring to fall this year.
In general, the project will not be canceled, new manufacturing improvements --
The new one continues, but the pace has slowed.
This particularly affects our stocking sales and bookings before demand has better visibility, which are most affected by liner board needs.
So far, the liner board is the largest paper grade in China and the one most affected by Western exports.
On the contrary, the reservation of our fluid processing business, the dependence on the liner board is much smaller, and can be in a later capacity --
The expansion cycle has grown by 50% to $3. 2 million.
One of our strategies to minimize the impact of capital investment volatility is to build our spare parts and consumer goods business in China.
Our stock preparation and spare parts and consumables business in China is much smaller than the rest of the world.
We believe that we have a great opportunity in this regard.
In the first quarter we hired a senior executive to lead our stock preparation after-sales market and we are planning a major event this year.
We have made good progress, and China\'s after-sales market bookings are almost three times as large as $3 million.
At the same time, we continue to expand our screen basket manufacturing facilities in China, with shipments more than double in the first quarter of last year.
Our accessories and water management products in China have similar strategies.
Historically, although we are the world\'s leading equipment supplier, these products have a small market share in China.
Last year, we started a major effort to launch products to this market, including building local manufacturing bases and training local sales staff.
I am pleased to report that we have received orders from the first white water filtration system in China, as well as important orders from more than 40 doctors in two paper machines.
The interest of these products in China is still very high.
We have also made steady progress in manufacturing spare parts and water management product lines in China.
Make our products and other low in China
The cost segment will help us serve the growing Asian market and increase our global profit margins.
Our overall profit margin in the first quarter increased by 280 basis points, in part because
Cost manufacturing and purchasing.
Before I leave China, I should point out that although we expect a slowdown in the growth rate of capacity expansion, the growth of production bases is so large that the absolute number of growth is still strong.
Overall, China remains the most important growth market for the paper industry in the world.
While it is difficult to predict annual performance levels due to changes in large capital orders, the overall trend in China is still very positive.
In addition, there are two areas of growth for Keda: expansion and acquisition outside the paper industry.
We continue to look for opportunities to push technology
Paper markets such as steel, textiles and food and beverage.
For example, one of the world\'s largest CNC machine manufacturers recently purchased another 1,800 precision units from our fluid processing business.
Similarly, we are continuing to explore potential acquisitions within and outside the paper industry.
As I said in my previous conference call, a potential advantage of the recent turmoil in the stock and credit markets is a more reasonable valuation of the businesses we can acquire.
Let me now review our guidance on 2008.
We continue to look forward to achieving GAAP-
Diluted earnings per share of $1 per share. 85 to $1.
Revenue increased from $385 to $0. 395 billion.
In the second quarter, we expect Diluted EPS per share to be 41 to 43 cents, with revenue of 94 to $96 million.
Now I will transfer the call to Tom in order to have a more detailed review of the financial situation. Tom?
Thank you, Bill.
Let me start with our earnings performance.
Consolidated revenue is $85.
The first quarter of 2008 was 9 million, down 3% from the same period last year, of which the favorable effect of foreign exchange was 5%.
To better compare these two periods, I should point out that revenue for the first quarter of last year included $1.
2 million the operation of casting products, we sell in April 20.
Therefore, excluding the favorable impact of foreign exchange in 2008 and the income from the foundry products business in 2007, the income in 2008 decreased by 7% compared with last year.
On the whole, our income performance, here I do not include the favorable impact of foreign exchange, the income of our stock preparation has decreased, compared with last year, the absolute and percentage drop in the accessories and water management product line is the largest.
Our fluid processing revenue increased in the first quarter of 2007, mainly due to the very strong and encouraging performance in Europe.
Now, let\'s look at the revenue from these major product lines in more detail.
Stock Reserve income is $36.
In the first quarter of 2008, 3 million fell 9% from the same period last year, including 5% Foreign exchange concessions.
After excluding the favorable impact of foreign exchange, our three major stock preparation businesses are weaker than last year.
Revenue in North America fell by 20% compared to 2007.
China has fallen by 11%, including a positive effect of 3% from a currency appreciation.
Our European business, though up 11% from last year, fell 3% after excluding the favorable impact of 14% of the currency.
Overall, we saw some time delay in capital project approval when orders in China fell by 48% compared to nearly
Record levels last year.
On the other hand, bookings for our European business increased by 23%, including the 17% preferential effect of the currency in the first quarter, and the outlook is still promising compared with last year.
In addition, the backlog of the product line is still at a record level.
It is reported that the revenue from our plumbing and accessories product line is slightly higher than last year, but when we exclude the favorable impact of foreign exchange, the revenue is slightly lower.
In particular, water management income in 2008 was $8 million, an increase of 1% over the previous year, including the beneficial impact of 3% of foreign exchange.
Accessories revenue is $15.
The first quarter of 2008 was 8 million, up 2% from last year, including the positive effect of 4% from the currency.
Although we continue to make steady progress in a key strategic plan, that is, to better penetrate into most of the untapped markets of our water management and accessories products, such as Germany and China, growth in these regions is not enough to overcome the downside of weak markets in North America and Europe.
It is encouraging that in North America, we do see growth in both product lines in the US, but this is offset by a decline in revenue in Canada, and I believe many of you know, the paper industry has been severely affected by factory closures, machine closures and general belts
Many factories are tightening.
The revenue from our fluid processing product line is 22.
5 million in the first quarter of 2008 was 12% higher than last year, including 9% of foreign exchange offers.
Here we have some different results in the main business of this product line.
Europe has performed well with 30% people, 14% of whom are from foreign exchange.
North America grew by 37%, of which the currency grew by 22%, and our Southeast Asian business grew by 52%, either small or small, by an absolute increase of 20%, of which foreign exchange grew.
These increases were partially offset by a 5% decline in the United States, due to reduced revenue from large system projects.
I should note that overall we still have a record backlog in this product line, and our bookings were close to record levels in 2008, mainly due to strong performance in Europe and China.
Turn to gross profit margin of our products.
Gross profit margin for comprehensive products is 39.
7% at 2008 in the first quarter, 280 basis points higher than last year.
This improvement happened almost entirely in our paper system department, where the gross profit margin was 39.
7% was up 270 basis points from 2007.
The growth in our paper system sector is mainly due to higher profit margins and our product line for share prices and water management.
In larger system projects, stock price margins are higher as we continue to focus on some areas around the globe that reduce manufacturing costs, including purchasing more products from low-cost countries such as China and Mexico, there are major businesses.
China\'s profit margin has increased, in part because of the increase in revenue from our after-sales market products.
Each of the main components of the product line, including capital and after-sales products, increased gross margin and water management compared to last year.
Now let\'s take A look at our SG & A fee.
The SG & A fee is 25.
The first quarter of 2008 was 4 million, up 1 year on year.
Up 9 million or 8% from last year.
This increase includes 1.
4 million or 6% adverse effects on foreign exchange.
In addition, 0 was included in the 2008 quarter.
5 million of non
We did not incurred the Cash employee equity compensation fee in 2007.
Excluding the adverse effects of foreign exchange and employee equity compensation expenses, SG & A expenses in 2008 were basically the same as last year.
The percentage of SG & A\'s revenue is reported to be 29.
The first quarter of 2008 was 5%, up from 26 last year.
6% due to an increase in revenue last year.
Continue to view the EPS results.
We reported GAAP diluted earnings per share, including a 36-cent increase in earnings per share that stopped operating in 2008, compared to 30 cents in 2007.
The discontinued business reported a break-even result in 2008, compared with a loss of 3 cents in 2007.
Therefore, revenue from discontinued performance, excluding ongoing operations, was 36 cents in 2008, compared with 33 cents in 2007, and diluted earnings per share increased by 3 cents.
This improvement in dilution of 3 cents per share included an increase of 2 cents due to the net beneficial effect of foreign currency conversion, a decrease in net interest expenditure by 2 cents, an increase in disability assets by 2 cents and a slight decrease in the effective tax rate by 1 cent.
Diluted earnings per share fell by 2 cents in 2008 for the right and wrong
Compensation for equity of cash employees.
Compared with last year, these factors jointly led to a net increase of 5 cents per share in diluted earnings in the first quarter of 2008.
Now, go to the balance sheet and our cash flow.
We ended the first quarter with 58 points.
5 million in cash, 42.
9 million of the debt left us a net cash position in cash minus 15 of the debt. 6 million.
This net cash is approximately $1.
Quarter dilution after cash 09.
Our net cash is reduced by 5.
Compared to the end of 2007, 3 million was mainly due to the substantial purchase of our common stock during the quarter.
In the first quarter of 2008, we purchased 12 million ordinary shares at an average purchase price of $26, equivalent to 451,000 shares. 64 per share.
In the first quarter of 2008, our main source of cash was 6.
3 million cash flow from continuous operation and 28 million from our new 5-
The annual credit facility we entered in February.
We mainly use 26 million cash to repay our previous credit loans.
Purchase 12 million and 1 of common stock.
Capital expenditure of 6 million.
I would like to make an extra comment on the 28 million we borrowed under the new 5-5
Credit lines for the first quarter.
Again, we use to repay the proceeds of the balance under the old facility.
These 28 million are made up of two columns [ph]
, 13 million in fixed 3.
13% per year, with a fixed rate of 15 million per cent. 96% in five years.
Together with our other borrowings, we were able to cut the weighted average interest rate for all our debts from 5.
6% effective at the end of 2007 to 4.
7% effective at the end of 2008.
This concludes our review of finance and I will now go back to the operator for a Q &. Question-and-
Thank you. (
Operator instructions)
Our first question is from Tyler ·[ph]from J. P. Morgan. Tyler Ols – J. P. MorganMorning.
This may be something I should know, but what are the assets that you all sell [Inaudible]that gain?
It\'s actually a piece of land in Europe. Tyler Ols – J. P.
Morgan in Europe
Second, can you elaborate on the slowdown in demand that you see in Asia and North America?
Is there more money or more consumables?
For example, in terms of consumables and water management in North America, we actually see a slight increase in the business.
I think you might be referring to what is happening in Asia.
As you know, as I mentioned in my comments, for us, the long term trends in Asia do focus on China and the long term
The long-term trend is still very strong.
The economy will continue to grow, with paper producers in the region adding a lot of capacity and actually expanding the operation of the plant to a certain extent.
Also, I think to see what is going to happen in the world economy, the project is delayed for a few months.
I should also point out that we have signed contracts for five projects in 19 million that have not been recorded as bookings or backlogs as we have no down payment yet.
But, regarding Europe, our bookings for our business in Europe offset China\'s weakness to some extent, as we saw good activity in Russia, Ukraine, India and Western Europe.
I think what really helps us in all these markets is to focus on reducing energy costs. Tyler Ols – J. P.
I think MorganAnd only stayed in Asia for a while.
More slowdown in capital equipment?
Does this make it more challenging to grow the parts and consumer goods business there?
In fact, our parts and consumables business has grown quite well in stock preparation, and we are also penetrating the market through accessories and water management, so we really encourage this part of the business to start really digging into the big installation bases we have there.
I think the only impact we see in Asia is the delay in some major capital projects.
All work in Asia will continue to be strong. Tyler Ols – J. P. MorganGreat.
Finally, on stock buybacks, the show is more radical than we are in the model.
Can you remind us of what\'s left under the authority?
Under Taylor\'s mandate, William raynville also has £ 8 million. Tyler Ols – J. P.
Finally, what do you think about the use of cash.
You talked a little bit about the acquisition and I think you can do a deeper research on the M & A environment and then think about potential dividends?
I will answer your last question first.
Regarding the dividend, I think the stock repurchase is very effective.
The effective way to provide dividends, we continue to believe that as an option for our cash, the other is acquisition.
We found that some of the companies we would have studied a few years ago were quite diverse.
This environment has certainly changed, the strength of our balance sheet and the facilities provided have also changed, and the credit mechanism provides us with the means to truly become a curious company.
We keep an eye on acquisitions inside and outside the paper industry and other industries where we want to get more distribution.
We will not comment on any of them individually, although we are constantly looking for and exploring acquisitions, looking for the right acquisitions, which will add a lot of value to our business and it will be very beneficial, whether in the paper industry portfolio, or provide us with a means to penetrate the market outside the paper industry. Tyler Ols – J. P.
Thank you very much.
William ravenvilleThanks, Tyler.
Thank you.
The next question comes from Paul Mammola of Sidoti & Company.
Good morning, gentlemen, Paul Mammola-Sidoti & company.
Given Tom\'s weak geographical outlook that you offer, what confidence do you have in increasing revenue by 10 to 11 million in the second quarter?
We have a healthy backlog.
We never had a 0. 119 billion backlog, and the backlog was mostly on capital equipment because there was very little backlog of our parts and consumables.
Because this is more of a daily business, it is a slow business.
This gives us considerable confidence in the guidance we provided in the second quarter.
Paul Mammola-Sidoti & company right, you touch it a few times.
So at this point, you\'re saying it\'s a matter of time.
Yes, that\'s why we expect better in the second half of this year, because we now have quite a bit of visibility and the rest of this year is getting clearer and clearer.
It\'s fair, Paul Mammola-Sidoti & companyok.
Bill you talked about expanding parts and consumer goods business in China.
Now, what does this have to do with expanding Woushi [ph]
Facilities, if so, how is the situation?
Yes, it is.
In fact, we have already expanded in the factory, and we also comment that by the beginning of next year or the end of this year, we will acquire another manufacturing factory nearby, because we are really starting to do some good end roads.
We are very encouraged by the response from our customer base in China, so we expect some good growth opportunities for the business in the future.
Paul Mammola-Sidoti & companyok
We have seen many reports from China that manufacturing will be shut down in Beijing because of the Olympics.
Does this affect you? have you seen it?
No, there are no real modern paper mills around Beijing.
However, I think it may be beneficial to us in some way because they do have some smaller paper mills in that area that will not only be closed for the Olympics, will also be closed.
These are factories without Western technology, they are old, they are small, they are not economical, whatever we produce in the region, will increase the capacity expansion of modern factories across China.
Paul Mammola-Sidoti & company finally, looking forward to the future, you will say that G & A will be seasonally high due to the cost of compensation here.
How should we consider the future?
I\'m not sure if it will hit its low this year.
I mean, again, when you calculate the foreign exchange and deduct the increment from the employee pay expenditure, it\'s almost the same as last year.
I think SG & A will be well controlled if you consider both projects.
Paul Mamora-Sidoti & CompanyOkay, great. Thank you.
It is clear that it will decline as our income increases this year.
Thank you.
Our next question is from Bo McKinney [ph]
Capital with Lesan [ph].
Bo McKinney-Lesan Capri
Congrats on the performance of the quarter.
I have a few questions for you.
I think the last time we were up there, we talked about something about Cardan ramog. ph]
Facilities in France.
With the pickup trucks you see in your European business and the restructuring you have made in your business over the past few years, you are starting to reach the target profit you want to look for from your business, or is there more profit to come?
There is more to be done by William lainville.
I mean, we have seen steady progress in France.
We are also encouraged by the actual progress we have made every quarter.
We also see good booking and good booking prospects for their business.
They are involved in projects in India, the Middle East, Eastern Europe and Russia, and this year we expect our French business to achieve medium-digit operating income.
As I said before, I expect this progress to continue at 2009 and beyond.
We have begun to see steady progress.
This is very encouraging.
Bermckenzie-LeSanc Guardian land is already the one who has been in business for $60 million a month.
Is it 70?
There are actually two reasons for this.
One is the euro, the strength of the euro, and the other is that they get very good capital bookings in places like Russia and the Middle East.
This is very encouraging for us.
Bermckenzie-LeSanc CapitalOkay.
Then on another issue if you look at your experience with previous delays and projects, I know you may not see the average, but overall, if there is some consistency that can move forward, how long does this take to last for a while before it is resolved in one way or another?
It\'s temporary, it\'s just that people restore their confidence in a generous upward direction, do you start to see a change in mood for a quarter or two, or will it last longer?
Our past experience is basically only a quarter or two, and I think there are two reasons in part.
One is that some of our big customers are launching some new paper machines to get the equipment running, which may be limited to the staff and it\'s part of the booth.
The other is of course looking at the economy as a whole, but it is encouraging that we continue to see new prospects and projects continue to emerge, so I expect, Bo, at least at this point, we believe it could be a quarter or two, and that\'s what we expect.
Bo McKinney-LeSanc capitthought that it was too late for projects that actually shipped for you in fiscal 2008.
If they postpone until the end of the second quarter, can you still finish the product by the fourth quarter or have some drop dead ends before 2009.
We started booking even if they arrived in the third quarter.
We confirm revenue and revenue by completion percentage.
So on the other hand, we will still get the benefit, we have 0. 119 billion capital orders from China in addition to our 19 million backlog, and we have not yet recognized this in the backlog.
We\'re waiting for a down payment.
So we are quite confident in what China is likely to do this year. And the long-
The long-term trend is very good.
I mean, they will continue to increase capacity.
They have several road bumps on the road and the trend from time to time is very obvious.
Bo McKinney-LeSanc CapitalAnd finally came up with an independent irrelevant question, I\'m sorry if you answered this earlier, but someone tried to give it to me while I was listening
On the new credit facilities, considering that you have seen a drop in the depreciation of something that may be attractive to you, you are firmly committed to how many incremental facilities, in addition to those, if there is a suitable opportunity, what else do you point out?
Thomas o\'brixton, in terms of the facilities we actually have, is 75 million committed, and then we have 75 million under our credit facility and accordion function so we can scale up.
However, there is no commitment.
As a result, the total number of facilities should be 0. 15 billion, of which 75 million are committed.
The only thing I would also like to mention is that last quarter we did announce a letter of intent asking for an additional £ 100 million in prudential capital.
This has not yet been finalized, but it will also not be committed if we are to finalize this.
BoMcKinney-LeSanc CapitalGreat. All right. Thanks guys.
The operator does not seem to have any further problems at this time.
William ravenville
Thank you, Barbara.
Finally, what I want to say is that we believe Cardan is healthy.
Even when the economy is uncertain, it can continue to prosper.
It is important that we have a backlog of 0. 119 billion.
In addition, we have a strong component and consumer goods business, geographical diversity, and excellent balance sheets and better access to capital.
I look forward to reporting on our progress during this year.
Thank you for joining and supporting today.
Today\'s Cardan company is over.
Company conference call.
You can disconnect now.
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