Hello, and welcome to the Columbus McKinnon Corporation First Quarter Fiscal Year 2024 Financial Results Conference Call. All participants will be in a listen-only mode. After today's presentation, there will be an opportunity to ask questions. Please note today's event is being recorded. I'd now like to turn the conference over to Deborah Pawlowski, Head of Investor Relations for Columbus McKinnon. Please go ahead, ma'am.

Thank you, and good morning, everyone. We certainly appreciate your time today and your interest in Columbus McKinnon. Joining me here for our financial results conference call are David Wilson, President and CEO; and Greg Rustowicz, Chief Financial Officer. You should have a copy of the first quarter fiscal 2024 financial results, which we released earlier this morning. We have slides as well that will accompany our conversation today. Both the slides and release are available on our website at investors.cmco.com. David and Greg are going to provide their formal remarks, after which we will open the line for questions. But right now, if you will just turn to Slide 2 in the deck, I will review the Safe Harbor statement. You should be aware that we may make some forward-looking statements during the formal discussion, as well as during the Q&A session. These statements apply to future events that are subject to risks and uncertainties, as well as other factors that could cause actual results to differ materially from what is stated here today. These risks and uncertainties and other factors are provided in the earnings release, as well as with other documents filed by the company with the Securities and Exchange Commission. You can find these documents on our website or at sec.gov. During today's call, we will also discuss some non-GAAP financial measures. We believe these will be useful in evaluating our performance. However, you should not consider the presentation of this additional information in isolation or as a substitute for results prepared in accordance with GAAP. We have provided a reconciliation of non-GAAP measures with comparable GAAP measures in the tables that accompany today's release and slides. So, with that, please advance to Slide 3 and I will turn the call over to David to begin. David?

Thanks, Deb, and good morning, everyone. We started fiscal 2024 off on a strong note. Sales increased 7% with organic growth of nearly 6% and at the upper end of our expected low to mid-single-digit growth rate for the year. Montratec, the latest addition to our precision conveyance platform, contributed $2.7 million in the quarter for the one month that we owned them. We are really thrilled to have them as part of this important platform for Columbus McKinnon. They bring highly advanced automation technology with modular asynchronous transport systems that we expect to serve as a growth accelerator for this business. Gross margin expanded 100 basis points sequentially to 36.9% on an adjusted basis. This is in line with our plan to expand gross margin by 50 to 100 basis points for the year and we will discuss this further on the next slide. We recorded another strong bookings quarter with orders up 5% sequentially, resulting in a book-to-bill ratio of 1.1 times and our precision conveyance platform achieved 28% sequential order growth in the period. The customer experience is central to all that we are doing, and we are making important strides in this area and there is more opportunity ahead. We believe improvements here will lead to more business earned and market share gains. In addition, our transformation efforts have provided Columbus McKinnon with a greater opportunity set in vertical markets that are less cyclical and benefit from favorable megatrends. A significant tailwind impacting current demand is the investment that is underway in factory automation across several verticals. In fact, manufacturing capacity capital spending in the US is at an all-time high which is amplified by investments being made to support re-shoring efforts. Intelligent and automated material handling solutions are at the heart of factory automation where Columbus McKinnon solutions are being applied to address global labor shortages and productivity improvements. We successfully refinanced our debt in the quarter. Greg will cover this in more detail but the end result was a reduction in the cost of debt and the elimination of financial covenant testing. We expect to be under 2.5 times with our net leverage ratio by the end of the fiscal year. Shifting to Slide 4. I'd like to keep in front of all of us the progress that we're making and more importantly, the ground we have yet to cover with respect to gross margin expansion. Our start to fiscal 2024 is in line with our expectations to deliver 50 to 100 basis points of improvement in gross margin for the year. This performance is consistent with our expectation to deliver 21% EBITDA margin in fiscal 2027. Our plan for the remainder of the year includes additional progress with 80/20 initiatives focused on product line, process, and factory simplification. We're also advancing our transformation to a higher-margin business. Our precision conveyance platform commands higher margins and in fact, montratec, our most recent addition, has annualized gross margins approximating 50%. With that, let me turn the call over to Greg to cover the details of our financial results.

Thank you, David. Good morning, everyone. Turning to Slide 5. We delivered sales in the first quarter of $235.5 million, up 6.7% from the prior year on a constant currency basis, which was within the guidance we provided last quarter. The sequential decline in sales in Q1 is consistent with what we expect after our seasonally strongest quarter. Looking at our sales bridge, we realized pricing gains of $8.5 million or 3.9%, which was in line with what we were anticipating. Volume increased by $3.7 million or 1.7%. The montratec acquisition had a $2.7 million of revenue for the month of June, which represented one month of ownership. Foreign currency translation was a small benefit this quarter. Let me provide a little color on sales by region. For the first quarter, we saw sales decline in the US of 1.9% compared with the prior year. While pricing was up 5.1%, sales volume was down 7.1%. This was due to weaker volumes in our precision conveyance business due to the canceled orders with a large e-commerce customer we discussed last quarter, as well as the phasing of our backlog. Outside of the US, pricing improved by 1.7% and sales volume increased a strong 16.5%. In addition, the montratec acquisition added 3.2% of growth outside the US. We saw volume increases in all regions. We recorded volume gains of approximately 7% in Latin America, 12% in EMEA, 24% in Canada, and 47% in Asia Pacific. EMEA, our largest region benefited from volume gains in our Lifting Solutions business as productivity continues to advance in our largest global manufacturing plant in Germany which implemented a new ERP system last year. Within APAC, we benefited from strong sales in several verticals, including general manufacturing, construction and infrastructure, utilities and transportation. On Slide 6, we expanded gross margin sequentially by 90 basis points to 36.8%. On an adjusted basis, gross margin was sequentially higher by 100 basis points. Last year's first quarter benefited from a one-time inventory revaluation, which was part of the German ERP implementation. That added approximately $2 million to gross profit in the prior year or about 100 basis points. Normalized for this one-time inventory revaluation, adjusted gross margins year-over-year would have expanded about 40 basis points. Let me also remind you that the second quarter last year also benefited from this inventory revaluation by about 50 basis points. First quarter gross profit increased $4.1 million versus the prior year, driven by several factors which you can see in the table. Pricing, net of material inflation added $6.5 million of gross profit. We are seeing material inflation decelerate from last year, which is a good trend as we progress into the second quarter. The montratec acquisition contributed $800,000 to gross profit. We had conformed their financials to US GAAP, and we expect that for the full year, the business will generate gross margins of approximately 50%. The business is largely project-based which can be lumpy, and we will see some variability in margins quarter-to-quarter. June's margin of 30% was not typical and was impacted by disruptions that occur in the first month of an acquisition. Offsetting these items was an unfavorable sales mix which reduced gross profit by $1.1 million as well as unfavorable productivity and other cost changes of $2 million. With our sequential gross margin performance and expected margin contribution for montratec, we believe we are on track to expand gross margins this year by 50 to 100 basis points. Moving to Slide 7, our SG&A expense was $58.3 million in the quarter or 24.8% of sales. This included $4.1 million of pro forma adjustments for the acquisition, headquarters relocation, a warehouse consolidation and business realignment costs. Excluding these pro forma adjustments, our SG&A as a percent of sales was 23%. Results also include $800,000 of our SG&A costs for montratec. Compared with the prior year, our SG&A costs were higher by $5.1 million. Most of the increase was in G&A, which was elevated by the pro forma items and higher stock compensation expense. Helping to offset these expenses was a reduction in selling expenses. This was driven by our restructuring efforts as we lowered our selling costs by 5% even with a 7% increase in revenue. We also increased our investment in R&D by $800,000. For the second quarter, we expect our SG&A expense to be comparable for this quarter at approximately $58 million. Turning to Slide 8, we generated operating income of $21.4 million in the quarter or 9.1% of sales. Compared with the prior year GAAP operating income was impacted by net non-operating adjustments of $2.6 million as outlined on this slide. Adjusted operating income was $25.8 million or 10.9% of sales. On an adjusted basis, operating income grew $1.2 million or 5%. As you can see on Slide 9, we recorded GAAP earnings per diluted share for the quarter of $0.32, up $0.03 versus the prior year. Our tax rate on a GAAP basis was 27%. Our tax rate was unfavorably impacted by a small discrete item for equity compensation that affected the tax rate by 2 percentage points this quarter. For the year, we expect our tax rate to be between 24% and 26%. Adjusted earnings per diluted share of $0.62 was down $0.07 from the prior year due to higher interest expense and the increased tax rate. As we increase volume and execute on our 80/20 initiatives, the result in operating leverage is expected to offset these headwinds. For modeling purposes, even though we are 65% hedged to interest rate exposure, interest expense is expected to increase $10 million in the second quarter with the incremental interest expense from the montratec acquisition. On Slide 10, our trailing 12-month adjusted EBITDA was $149.4 million, which resulted in an adjusted EBITDA margin of 15.7%. Our return on invested capital at the end of Q1 was 6.6%. ROIC for all periods shown reflects the impact to after-tax earnings of and an increase in our effective tax rate from 22% to 25%. We expect to achieve double-digit ROIC over time as we transform the business and execute 80/20 initiatives. Moving to Slide 11, quarterly free cash flow was negative $22.5 million. This includes cash consumed from operating activities of $17.2 million and CapEx of $5.3 million. First quarter cash generation was affected by increases in working capital, namely higher accounts receivable related to the timing of shipments at the end of the quarter and an increase in inventory levels to support our strong order growth and resulting in a record backlog. We anticipate that CapEx will range between $30 million to $40 million in fiscal year 2024 as we are making investments in a lower-cost center of excellence to simplify our factory footprint as well as increased capacity productivity improvements. For fiscal 2024, we expect free cash flow conversion will range between 90% and 100%. Turning to Slide 12, we completed our financing activities that we discussed on the May earnings call. We increased our term loan B by $75 million and added an accounts receivable securitization program from which we borrowed $45 million. Proceeds were used to fully pay off the revolver used to fund the montratec acquisition. With no revolver borrowings at quarter end and our covenant light credit agreement, our financial covenant is not tested. We also executed another interest rate swap and are now 65% hedged at a swap rate of approximately 2.8% against three months SOFR, as we move towards the upper end of our policy range to take advantage of the inverted yield curve. Our net debt leverage ratio was 2.9 times on our financial covenant basis. We paid down $10 million of debt in the quarter and expect to pay down a total of $40 million of debt in fiscal 2024. We expect our net leverage ratio to drop to less than 2.5 times by the end of fiscal 2024. Please advance to Slide 13 and I will turn it back over to David.

Thanks, Greg. As I mentioned earlier, our book-to-bill ratio for the quarter was 1.1 times and was driven by strong sequential order demand in North America. Industrial automation wins are coming in across several verticals where our intelligent motion solutions for material handling are enabling benefits in a variety of industries, from food inspection technology to metals and grain processing, printing, package handling, automotive assembly, battery production, even rail system upgrades. Our aerospace and defense markets are also quite busy. Our team remains highly encouraged by the quality of our pipeline and the potential for further growth within our business. In the quarter, we grew orders 5% sequentially, a notable difference from the seasonal slowdown that the business has historically experienced when transitioning from Q4 to Q1. Precision conveyance orders excluding montratec grew 28% sequentially. Year-over-year, orders were down modestly as last year's Q1 benefited from increased distributor demand in advance of a significant pre-announced price increase last June. Orders excluding montratec over the last six months were in excess of $500 million and are aligned with our plan to achieve revenue of over $1 billion this year. Backlog achieved a new record at $355 million including the benefit of $23 million contributed for montratec. Our short-term backlog was up nearly 7% sequentially and provides approximately 70% coverage for our expected sales in the second quarter. Long-term backlog, which is more indicative of major projects, improved 25% sequentially driven by the montratec additions and new project orders. We had mentioned previously that while our pipeline remains strong, decisions to release projects have slowed. Over the quarter, we saw improvements in customer confidence and this is beginning to show in our long-term backlog expansion. Please turn to Slide 14 and we will discuss our outlook for the second quarter. We are expecting between $250 million and $260 million in revenue for the second quarter including montratec's contribution. This represents approximately 10% growth year-over-year at the midpoint of this guidance. As Greg indicated, the montratec business can be lumpy, given the project nature of the business, and as such, quarter-to-quarter results can vary. We expect that the December quarter will likely be montratec's strongest in the year, given our current visibility to customer delivery requirements. Along with customer experience, our 80/20 initiatives are front and center. We're making great headway with product line simplification for both our electric chain and wire rope hoist. This effort is not only simplifying the portfolio, our supply chain, and our manufacturing processes, it will expand our SAM for both products, because we are simultaneously solving for better-suited solutions at the right prices for both the mid-tier and premium markets. We expect the new lines to launch in the latter half of fiscal 2025 with additional phases for the wire rope hoist portfolio to follow. We continue to invest in new product development, including enhancements to targeted offerings that better serve our customers and provide improved market positioning. Fiscal 2024 remains all about execution and the progress we expect to make with our transformation strategy. We are encouraged by the runway that exists for continued 80/20 improvement and we're thrilled with the addition of montratec to our growing precision conveying platform. We will remain on track to deliver our fiscal 2027 strategic objectives and we expect to demonstrate steady progress along that path this year. Keith, we can now open the line for questions.

And the first question comes from Matt Summerville with D.A. Davidson.

Thanks. Good morning. A couple of questions. First, you mentioned on the slide, you had some productivity cost changes. There were a $2 million hit to gross profit. Can you maybe expand on that and put some context around why year-on-year operating leverage was pretty weak in the quarter and how we should be thinking about operating leverage going forward?

Yes. So the adjustment was related to when we implemented the SAP system in our German facility in Kunzelsau. We moved from a weighted average costing basis to a standard costing basis. So that changed how costs were characterized. And so that resulted in a $2 million positive impact in the quarter a year ago. In terms of operating leverage, we acknowledge that it was weaker than we would typically see. We expect our operating leverage to be in the 40% range overall. And we had a bit of a weaker mix this quarter and we would expect that on a go-forward basis. And when you look at it over the course of the entire year, we would be in that 35% to 40%, so.

And that's on an incremental basis.

Got it. Can you provide more details on the healthy quote activity you mentioned? Could you elaborate on the specifics of the end markets? Also, would you say that quoting is currently at a record level? How would you assess the outlook for this moving forward?

Volumes remain strong, and on the shorter cycle quotation activity, the size of the quotes is somewhat smaller than usual. However, for larger projects, which are very strong, we are witnessing active demand and a growing level of confidence among customers compared to the beginning of the year. Larger customers are placing bigger orders and seeing a more predictable progress. Demand is strong across several attractive sectors. The electric vehicle market continues to be strong, and e-commerce shows signs of improvement. The activity in Life Sciences has been very encouraging, and we are experiencing steady demand in the defense sector. In general, automation demand is high, driven by labor shortages and capacity expansion in the US, leading to increased demand for automated material handling solutions. We are optimistic about the progress in larger order activities, while monitoring the short cycle demand closely, especially regarding Germany's forecasts for the second half of the year.

Got it. I'll get back in queue. Thank you.

Thanks, Matt.

Thank you. And the next question comes from Jon Tanwanteng with CJS Securities.

Hi, it's actually Lee Jagoda for Jon this morning. Good morning.

Good morning.

So I guess you commented a little bit earlier on input pricing and supply chain. Could you talk a little more about that and maybe how that should translate into margins for both products currently in your backlog, and then your new order quoting activity?

Just to confirm, Lee, you are talking about the input pricing, our cost basis for supply chain.

Yes. Exactly. Yes.

Okay. Yes, I mean, we are seeing some improvements in freight costs, logistics costs. We're seeing metals prices improve and as we look at the way that our forecasted gross margin expansion profile is modeled for the balance of the year, we feel comfortable with what we've guided to which is the 50 to 100 basis points of gross margin expansion, as it relates to that input cost position. Greg, I'm not sure if there's something you add to that.

Yes. So, we ended up with pricing overall that was up $8.5 million, which more than offset $2 million of material inflation. So material inflation is decelerating from last year. If you annualize the $2 million, it would be about $8 million. And so we're confident that pricing, net of material inflation will continue to be a positive for the company and it will be accretive to our overall margins.

Great. And then on montratec, it sounds like the early integrations are going pretty well. Can you talk about, I guess, more globally the major growth markets that should drive growth in sales for montratec for couple of years. And in particular, how big an opportunity is or things like onshoring coming to the US.

Sure. Yes. So we feel really good about the business. Over the last couple of years, they really diversified their end market participation from primarily automotive to now include pharmaceuticals and life sciences, healthcare, the semiconductor space, electronics manufacturing, and we continue to see increasing demand across the majority of those markets. There is a heavy level of opportunity relating to electric vehicle and battery production. That is a wave of activity that's currently underway. We do believe that with their cleanroom certifications and increased capacity improvements on their shuttles, that we can see growth in a broader array of markets including the semiconductor space in the US. And so integration activities are well underway. Several meetings have taken place both in Germany and in the US with their teams and our teams to work the commercial and technology fronts. And we feel really, really good about that business and its potential for growth as we go forward.

Yeah. And Lee, just to add on. We expect this business to double within three years. Today they have about 20% of their business in the US, 20% in Asia. They don't have a very strong presence from a people perspective in either of those two locations. So we think that probably half of the growth over the next three years is going to be in the US as we leverage our sales team and our precision conveyance platform that we have here, and we also think there's an opportunity in Asia as well where we have a significant presence.

Does that help, Lee?

Yes, it does. I was trying to ask another question, so I apologize for being on mute. Considering that those are mostly capital equipment sales, once those systems are installed, how should we view the recurring sales and service in Montratec compared to the rest of your core business?

Yes. Their recurring revenue and aftermarket sales today are above the average for our broader business. And so today they are in the 20% range and that's something that we anticipate should expand as their installed base grows and customers continue to see the benefits of adding and expanding on those initial installations.

Great, very helpful. I'll hop back in queue. Thank you.

Thanks, Lee.

Thank you. And the next question comes from Steve Ferazani with Sidoti.

Good morning, David and Greg, thank you for the insights on the call. I wanted to gauge your confidence level regarding the gross margin improvement target. I know you reported significant sequential growth in conveyance systems orders, but you've also pointed out weakness from a particular large e-commerce client. Could you share your confidence in achieving that target? Additionally, is this more due to pricing or mix? We would expect that as conveyance systems grow at a faster rate, it would contribute positively. Please walk us through the components involved.

Right. Yes. Steve, we touched on a lot of the major components. And we are very confident in our ability to deliver the 50 to 100 basis points this year and we're obviously working on achieving a target that goes well beyond that as we progress through the balance of our strategic execution phase and remain very confident in that outcome as well. The benefits we expect to see this year are tied to productivity improvements in our business and improved execution that will drive expanded margins. We certainly expect there to be a level of price improvement, net of inflation, as Greg mentioned. And as we do sell more of our precision conveyance products and our efforts there to expand the mix of business in that particular segment, progress we do anticipate that there will be benefits coming from that. And so it's an aggregation of those items that we see as contributing to the benefit this year and continuing to contribute to the expansion that we're seeking over the strategic planning horizon.

Yes. And we were really pleased with the fact that our margins expanded 100 basis points sequentially because our fourth quarter is normally the strongest quarter from the seasonal perspective and we think with the operating leverage in the business, the fact that our largest facility in Germany continues to make progress from a productivity perspective, that we will continue to see gross margin uptick as we go through the year and we feel really good about the 50 to 100 basis point expansion.

Perfect. Greg, you mentioned some timing issues that contributed to the significantly higher receivables this quarter, which seemed to have the greatest effect on your cash flow. Did I hear correctly that you provided substantial guidance for cash flow conversion? Could you elaborate on those two points?

Yeah. So you're absolutely right. So we had a very strong month of June, sales perspective, and with our typical terms, June sales are not collectible, the 30-day terms.

In Q2.

June sales are not collectible in Q1, but they are collectible in Q2. We also have a record or close to record backlog of Montratec, so we added some inventory to the system as well. We expect that inventory to start to flow through, especially with the guidance David provided on revenue for Q2. For the year, it's not unusual for our first quarter to have negative free cash flow, as we saw last year. We ended the year very strong, with a free cash flow conversion of 147% last year. This year, we anticipate it to be in the 90% to 100% range. Our capital expenditure guidance is $35 million to $40 million, which is significantly higher than a year ago because of the investments we are making in our manufacturing facilities, which will offer considerable benefits in terms of cost and productivity down the line.

Great. So that still means pretty, based on your guidance, pretty good cash flow, but you're guiding for $40 million in debt repayments. Any chance you escalate that? Or are there other uses of cash you're thinking about?

We ended the quarter with approximately $106 million in cash, of which about $15 million was in the US. We are looking to identify ways to bring cash back into the US as we need it to reduce our external debt. If we can do this in a tax-efficient manner, we plan to use the excess cash to further pay down debt, particularly given that our marginal interest rate is currently over 8.25%, approximately 8.36%. This represents a significant return compared to the earnings from funds held in bank accounts worldwide.

Perfect. Thanks, David. Thanks, Greg.

Thanks, Steve.

Thank you. The next question comes from Walter Liptak with Seaport Research.

Hi, thanks, good morning, guys. Just maybe a follow on that last one. It sounds like some of that cash repatriation, the timing maybe there, but be more visibility. Is that something that you're expecting shortly here in the next quarter or so?

Yes, Walt, I would expect us to be actively working on that. It's a key project for us and if we manage to bring cash back and have excess cash in the US, we will definitely use it to pay down debt. We have the opportunity to pay down debt essentially once a quarter, at the end of the quarter. So it won't affect interest expense this quarter, but it will benefit us in future quarters. The interest expense for this quarter is set at $10 million.

Okay, thanks. Many of my questions have already been addressed, but could you please update us on the distribution channel? Specifically, how much of your sales are made through distribution, what feedback are you getting from the channel, and what is their current inventory situation?

Sure. Approximately 50% of our business goes through distribution overall, and the inventory levels in the channel have not been high due to the demand we've experienced and some backlog related to that demand. We're not in a situation where the channel feels oversaturated. Our channel partners are being cautious regarding potential slowdowns in short-cycle demand that might be linked to an economic downturn. Therefore, our relationship with them is strong, and we are collaborating closely with them on current demand, while there's limited excess inventory in the channel. The demand from our channel partners is strong, with high quotation activity. However, the average size of our book-to-bill quotes has decreased, and the conversion cycle for these quotes has lengthened as partners are carefully considering the timing and necessity of that demand. This is likely associated with lead times for related equipment. When considering the delivery of automation solutions from other providers that may work with our systems, as well as the delivery of robotic equipment that functions with our systems, if there are delays in receiving some of that equipment and our lead times align with the delivery of these components, orders for standard or book-to-bill quotes may be placed later than usual. As a result, those quotes may not convert as quickly as they typically would in periods with shorter lead times for these other products.

Okay, great. Okay. It's good to hear the increased quotes and the confidence level among your customers. I wonder, you mentioned that June, I think ended a little bit on a strong note when you were talking about accounts receivable. How was July looking? Was the tone of business still good in July?

Yes, so on the execution front, obviously, we're executing from an elevated backlog position and very focused on achieving the growth rates that we've targeted for the quarter, which on an aggregate basis, are healthy as you look at year-over-year performance at the midpoint of our guidance range. As it relates to order demand, July typically would start out a little softer given the holiday period in the US and the beginning of a holiday period in Europe. And so I'd say, demand profiles remain in line with where we would typically expect to see them and the discussion around quotation activity, particularly for larger project activity is very healthy and robust across the verticals that we serve.

Okay, great. Okay, thanks for that color.

Thank you. And the next question is a follow-up from Matt Summerville with D.A. Davidson.

Thanks. Just a quick one. With respect to some comments you made in the prepared remarks, you mentioned the e-commerce cancellation. Does that order actually get de-booked? And then you also mentioned backlog phasing in the US. Maybe put a finer point on that, because I guess I was a little surprised to see volume down 7%, I think you mentioned.

On the US side, we discussed in the May call that as of March 31st, we had removed the significant orders from a large e-commerce customer from our backlog. These orders were received in fiscal year 2022. We also mentioned that we received $7.6 million in cash, which is currently in a customer deposit. This amount will either be used for additional purchases or recognized as revenue at the end of the agreement if not used. Regarding the second part of your question about revenue phasing in the precision conveyance business in the US, it was primarily about the timing of project orders. In the first quarter, we experienced less revenue than anticipated in our precision conveyance business. However, order bookings during the period increased by 28%, which will positively affect future revenue. We encountered a phasing issue related to previous orders and their timing in translating into revenue.

Got it. That's all from me. Thank you.

Thanks, Matt.

Thank you. And this concludes the question-and-answer session. I would like to return the floor to management for any closing comments.

Great. Thank you, Keith. And thank you to everyone for joining us today. We had a solid start to the year in Q1, and we are making excellent headway with our 80/20 initiatives. We added yet another terrific business to our precision conveyance platform in the quarter as well. We remain on track to achieve our fiscal 2027 strategic objectives and we're solidly on the way to becoming a top-tier industrial technology performer. We appreciate your interest in Columbus McKinnon and wish you a great day. Thank you.

Thank you. The conference has now concluded. Thank you for attending today's presentation and you may now disconnect your lines.