Mind Technology, Inc Q4 FY2026 Earnings Call

Greetings. Welcome to Mind Technology Fiscal Fourth Quarter 2026 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Zach Vaughn. Thank you, Zach. You may begin.

Thank you, Operator. Good morning, and welcome to the MINE Technology Fiscal 2026 Fourth Quarter Earnings Conference Call. We appreciate all of you joining us today. With me are Rob Kapps, President and Chief Executive Officer, and Mark Cox, Vice President and Chief Financial Officer. Before I turn the call over to Rob, I have a few items to cover. If you would like to listen to a replay of today's call, it will be available for 90 days via webcast by going to the Investor Relations section of the company's website at mine-technology.com or via a recorded instant replay until April 23rd. Information on how to access the replay was provided in yesterday's earnings release. Information reported on this call speaks only as of today, Thursday, April 16th, 2026, and therefore you are advised that any time-sensitive information may no longer be accurate as of the time of any replay listening or transcript reading. Before we begin, let me remind you that certain statements made by management during this call may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's current expectations and include known and unknown risks, uncertainties, and other factors, many of which the company is unable to predict or control, that may cause the company's actual future results or performance to materially differ from any future results or performance expressed or implied by those statements. These risks and uncertainties include the risk factors disclosed by the company from time to time in its filings with the SEC including in its annual report on Form 10-K for the year ended January 31st, 2026. Furthermore, as we start this call please also refer to the statement regarding forward-looking statements incorporated in our press release issued yesterday and please note that the contents of our conference call this morning are covered by these statements. Now I'd like to turn the call over to Rob Capps.

Thanks, Zach, and thank you all for joining us today. Today, I'll touch on our results for the fourth quarter and the full year and discuss the current market environment. Mark will then provide a more detailed update on our financials and I'll return to wrap things up with some remarks about our outlook. A lot has transpired since our last earnings call. As you all know, we're a global company and our customers work all around the world. We have not experienced any material impact to our operations or prospects due to the current conflict in the Middle East. However, this is a situation that we are following closely. Overall, our performance in fiscal 2026 reflects our ability to deliver resilient results despite the evolving and highly turbulent macro environment. All things considered, I'm pleased to report another year of meaningful cash flow from operations and positive earnings and adjusted EBITDA. We are capitalizing on pockets of demand, maintaining a consistent execution and benefiting from production efficiencies. There's been a good bit of uncertainty in the market for some time now, but our CMAP revenues remain elevated compared to historical levels and were essentially flat in the fourth quarter compared to the third quarter. As we discussed last quarter, overall interest and engagement remains positive, but we've seen some customers defer new order commitments, given commodity price volatility and the current state of geopolitical affairs. This is not uncommon in periods of broad economic uncertainty. However, as the past would indicate, we continue to view this as a short-term disruption and expect that customers will resume normal activities once conditions stabilize. Our long-term growth trajectory and operational momentum are still intact, and our large pipeline of opportunities supports our optimism for the future. Our backlog of firm orders as of January 31, 2026 was approximately $13.9 million, compared to $7.2 million as of October 31, 2025, and approximately $16.2 million as of January 31, 2025. As a reminder, during the fourth quarter, we received long-anticipated orders, totaling about $9.5 million. We were able to deliver roughly half of these orders during the fourth quarter and expect to make the remaining deliveries early in fiscal 2027. While backlog is only down slightly year-over-year, we are finding that many customers, regardless of industry or end use, are taking a wait-and-see approach to larger system orders, given the current climate. For the reasons I mentioned, this is not unexpected. However, there are signs of recovery, and the long-term outlook for exploration and survey work is trending in the right direction. We believe this bodes well for additional orders in future periods, as the geopolitical instability in the Middle East may well drive exploration activity in other parts of the world. We have yet to see any immediate impacts from the dramatic increase in oil prices, but it's something our customers are monitoring closely and has the potential to drive incremental activity. As a reminder, aside from the protracted customer decision-making process stemming from macro uncertainty and geopolitical turmoil, it's also not uncommon to see positives in order activity throughout the year in a normal environment. We continue to monitor various external factors that might impact our business, but we maintain our belief that the long-term outlook in the marine exploration and survey industry is very positive and an uptick in activity is inevitable. Outside of our backlog, which is defined as orders for which we have a purchase order or a signed contract in hand, the pipeline of potential orders remains solid and is several times greater than our firm backlog. We are pursuing certain significant projects. Some of these opportunities involve new vessels for governmental organizations. These projects are often relatively large, $10 million or more to us, and require that successful bidders provide security bonds. You may have noted that we recently entered into a trade finance facility with HSBC. This facility provides flexibility to help pursue these more significant projects. We remain costly optimistic in our ability to convert opportunities into firm orders in coming periods. Our backlog and pipeline of potential orders consist primarily of our three main product lines. N-link source controllers, buoy-link positioning systems, T-link streamer systems. However, our backlog also contains some aftermarket orders. Together, these serve as the foundation for our business. As a whole, our C-MAT business continues to enjoy a strong market position. We've worked hard to carve out a niche within the marine technology industry and have established strong relationships with our customers. We also pride ourselves in finding innovative ways to capture demand. Growing contributions from our aftermarket activities are also providing a stable and recurring revenue stream that is supporting our overall results. This component of our business has become increasingly important. This aftermarket activity consists of spare parts, repairs, service, and other support activities. While this business is influenced to some degree by the general activity level within the industry, it is more recurring in nature than orders for new systems. Customers might be slow to purchase new systems, but their existing equipment will need maintenance to keep operating. This benefits mind. We have established ourselves as a company that can do this kind of service and repair work quickly, efficiently, and reliably. Additionally, expenditures for aftermarket activity are generally operating costs, as opposed to capital expenditures. Therefore, customers will allocate funds for these activities differently than they might for a new system. Contribution of this activity is a percentage of revenue fluctuates from quarter to quarter based on product mix and the timing of larger assessment deliveries. However, in fiscal 2026, aftermarket business accounted for about 60% of our total revenues. Martins for this business also tend to be better than large assistance sales that might attract discounts. Our solid base of CMAP products continues to expand, with it comes the prospect for increased aftermarket activity. Additionally, we continue to ramp up activity at our newly expanded Hustville facility. The additional floor space at this facility enables us to efficiently take on larger manufacturing and product repair projects. This increased capacity will be used to further support our existing CMAP products, newly developed products, and services for third parties. Turning to our results, marine technology product revenues for the fourth quarter and full year of 2026 were $9.8 million and $40.9 million, respectively. Quarterly revenue was flat sequentially and slightly lower than our internal expectations due to the delivery of a few orders being pushed into fiscal 2027, but we continue to find ways to generate resilient results. I am pleased with our ability to navigate uncertainty within the market. and we believe MIND remains well-positioned to capitalize on opportunities in future periods to stimulate order flow and generate sustainable results. We have a differentiated approach, a best-in-class suite of products, and a unique aftermarket business that will continue to give us a competitive advantage and support our financial results for years to come. Now I'll let Mark point you through our fourth quarter and full year of financial results in a bit more detail.

Thanks, Rob, and good morning, everyone. Revenues from marine technology product sales totaled approximately $9.8 million for the Full-year revenue amounted to approximately $40.9 million. As Rob mentioned, the delivery of about half of the orders that we received in December were pushed into fiscal 2027, and this had an impact on our results for the quarter and full year. Despite this, and the general uncertainty that persists in the market, customer interest and engagement remain strong, and our aftermarket business continues to provide significant recurring revenue that is supporting our results. The full-year gross profit was approximately $18.7 million. This represents a gross profit margin of 46% for the year compared to 45% for fiscal 2025. Over-year margin improvement was primarily attributable product mix, which included a greater proportion of spare parts and other aftermarket activity. We also continued to benefit from our cost structure optimization, which includes greater production efficiencies, and we expect these efforts to help maintain favorable gross profit and margins in future quarters. Our general and administrative expenses were approximately $3.3 million for the fourth quarter of fiscal 2026 this was up both sequentially and when compared to the same quarter a year ago the sequential and year-over-year increases are due primarily the higher stock-based compensation our research and development expense for the fourth quarter was approximately 389 thousand which was down both sequentially and compared to the fourth quarter of fiscal 2025 consistent with prior periods these costs were largely directed toward the development enhancement of our streamer systems and source controller offerings operating income for the fourth quarter and full year 2026 was approximately 78 000 and 2.9 million respectively i was approximately 1.1 million and full year adjusted evit da was 5.3 net loss for the fourth quarter was approximately $271,000 after income tax expense of $471,000. This resulted in net income for fiscal 2026 of approximately $750,000 after income tax expense of $2.2 million. Our income tax expense results primarily from our operations in Singapore. As of January 31, 2026, we had significant working capital of approximately $37 million. including $19.1 million of cash on hand. The company continues to maintain a clean, debt-free balance sheet with a simplified capital structure. I believe our solid footing, significant liquidity, and operational flexibility will allow us to make moves in the coming quarters that will enhance stockholder value in future periods. I'll now pass it back over to Rob for some...

Thanks, Mark. We're operating in a complicated market environment that has fostered uncertainty. In some ways, that uncertainty creates opportunity for us going forward, but for now, it has slowed customer decision-making and delayed order commitments for larger systems. Despite this temporary pause in order activity, the underlying fundamentals for the marine technology industry remain intact. The long-term pipeline of opportunities continues to be very positive. Our prospects are plentiful, and this presents compelling opportunities for mine to address demand, capitalize on new areas of focus within the market, and deliver improved financial results. We remain in a very well-positioned for the future, and I'm optimistic that any near-term softness will abate in coming months. We remain focused on controlling what we can. In recent years, we've strategically structured the company so that we are operating lean and efficiently. This allows us to be more responsive to changing market conditions. As a reminder, it really doesn't take much to move our needle in a positive direction. As one or two large orders materialize, we have a very different outlook. We continue to drive technological innovation and expand our capabilities to address new opportunities. We are also constantly evaluating ways to repurpose our existing technology through new applications. Given our current visibility, we expect our results for fiscal 2027 to be down when compared to fiscal 2026. Despite this view, we believe this will still be a positive year for mine, and we may grow in other ways that may not immediately present themselves in our financial results. We recognize it will be difficult to replicate the systems order volume that we've enjoyed over the past two years, given our recent customer discussions and their prevalent uncertainty. However, I believe we will be cash flow positive for the year, even with lower revenue. We've built a better or resilient business with a solid foundation and simplified capital structure that is equipped to weather periods of reduced order activity. We have also meaningfully grown our install base over the last few years, which lends itself to our aftermarket activity and provides a substantial stream of recurring revenue. We will use our enhanced liquidity to position the business for improved financial results and activity across our in-market returns. For the last year or so, you've heard me talk about the need for a line to add scale. We recognize that we are a small company and that this presents challenges. I firmly believe that we need to be bigger to realize our full potential and enhance shareholder value. That being said, there are different ways we can achieve this growth. We can execute identified organic growth opportunities. We can acquire assets or businesses that are similar to our existing business. We can combine with other organizations. These are all options that we are considering and actively pursuing. While we are motivated to add scale and we have ample liquidity to add quickly and efficiently should an opportunity arise, we will not jeopardize the immense progress that we've made at mine to chase the opportunity does not fit with what we do. Our significant liquidity has broadened our opportunity set. However, we intend to be very disciplined in our approach to our capital allocation, weighing the expected return with the cost of capital. That brings me to our capital allocation strategy. The goal of this strategy is to add a creative scale and expand our offerings in order to enhance our value to our shareholders. I've outlined the various levers for growth that we have at at our disposal. These include mergers and acquisitions, investments in organic growth opportunities, such as the expansion of existing product alliance and strategic alliances with other industry partners. These levers are intended to be tools that we can use to create or enhance value. We can lean on any of these, or a combination thereof, as market conditions permit and the return on investment meets our threshold for value creation. Our view is that the marine technology industry is highly fragmented. This creates an opportunity for us to add products and services that fit mine's strategic capabilities and scale our business. We have a robust manufacturing footprint that is capable of producing sophisticated and technologically diverse products. This makes mine a natural production partner or buyer for innovative technologies that can be sold alongside our existing suite of products. We continue to evaluate a number of such opportunities. We believe we're unique for a small public company. We have positive earnings and cash flow. We have no debt and a simple, streamlined capital structure and no material contingent liabilities. And we have liquidity. We think this positions us well to weather any storm and take advantage of the opportunities ahead of us. Closing, we remain committed to positioning mine for future success, taking steps to strengthen the company and have built a resilient platform with a solid foundation and a growing opportunity set. Our differentiated and market-leading suite of products gives us a competitive advantage as we partner with our customers to address various demand trends, such as power generation, energy transition, and subsea exploration. Going forward, we intend to use our liquidity to augment our business through additional investments with a focus on developing the next generation of marine technology products to meet the evolving needs of our customers. We also plan to be active participants in the industry consolidation, whether that be adding product lines or something more transformative. These efforts will help us realize that meaningful financial improvement as market conditions normalize, which we expect to drive enhanced top-holder value. With that, Operator, I think we can now open the call up for some questions.

Thank you. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue. And for a participant choosing speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Once again, it is star 1 on your telephone keypad to ask a question. Our first question is from Russ Taylor with ARS Investment Partners. Please proceed.

I'm a little concerned that I'm not following Tyson.

Yeah, I know. I'm not sure we can do it this way.

I don't know if he's behind me in the queue, and therefore I don't want to ask his question or a question. Talk to us about, you know, what you see, where the financing is coming from for your customers. First, you said you've seen kind of a push-off or delay. What do you think is really driving this? We're seeing a lot more interest in, you know, subsea mining. We're obviously seeing, you know, with the State of Hormuz, it's highlighting the need for being able to detect mines and other items underwater and things like that. You know, I read somewhere the Chinese have aggressively mapped around Guam, around Taiwan, around the Philippines and the like, and I would assume the U.S. Navy probably needs to do something similar. Where's the capital coming from? You know, you said you're seeing a pullback on your buyers, and yet it seems that the demand should be growing meaningfully given what's happening around the world right now.

Yeah, I think that's right, Ross, in that I think what our customers have been doing, the people who have been buying from us recently, they have certainly the pause last year in the energy markets or the uncertainty in the energy markets had an impact and therefore they were there were some M&A activity in the market as well so people companies were consolidating and frankly looking to consolidate or conserve cash just from a physical conservative basis. You know, in talking to them now, they're seeing improvements in activity. For a while, they saw, again, their customers weren't placing orders. They weren't, you know, entering new projects. They were just being more cautious. You know, some of the uncertainty in the wind markets caused some of that. That seems to be, you know, returning a bit, especially outside of North America. So I think it was, again, a pause for them trying to be physically conservative and physically responsible. But they see that on a longer-term basis, there is that need. And that's the reason we think that as they see their pricing improve, they see their prospects improve, they're going to be coming back to us to expand capacity. We see new entrants into the market, some new vessels, as we alluded to earlier, which is, you know, a bit unusual for, you know, these past few years. So, again, I think longer term it looks pretty darn positive. But, again, if you go back to the energy side of it, you know, ironically, the situation in the Middle East is probably a positive in that a lot of people think this is going to drive increased exploration activity outside of the Middle East, which is a positive for our customers and for us. You know, as it goes into the military and maritime security side, you know, that has less direct impact on us today. But I think that is also starting to expand the opportunities for our technology being used more and more for, you know, ocean bottom survey and not just for exploration activity. is it's tough to say when this hits, but I think if you look from a macro standpoint, it's got to turn around. Does it happen, you know, in two months or six months or nine months? I don't know the answer to that for sure. I don't think anyone does. But I think, you know, everyone I talk to in the industry is pretty bullish long-term, but cautious in the near term.

Okay. A couple of different things. Looking at, you know, you're talking about, you know, generating, you know, having a year that's going to be somewhat under what you saw right now last year. I assume that's assuming that you don't see any of the improvements in any of the things that are kind of prospects become backlogged.

That's right.

Is there, you know, you're talking about generating, but being able to generate free cash flow during the course of the year. Am I correct in that assumption that, you know, you said you'll obviously be able to have even thought, but should we expect cash flow to be positive in the year?

We do expect that, yes.

Okay. And with your acquisition or, you know, your strategy to enhance value, it strikes me as one of the natural things is finding a division of a public company or something, and in essence almost for them using, you know, the MIND platform as a way to get public and to gain value out of it, an acquisition it would effectively be able to pay for itself given its economics. Is that the type of thing that one of the things I think we should be looking to see out of you guys as we look ahead? And then also comment on, because you mentioned about that, it sounds like some of what you think about doing is building for others and how much, you know, what are the economics when you build for someone else as opposed to for yourself?

Sure. Let me take those in kind of reverse order. You know, we don't want to be a contract manufacturer. Those margins aren't very good historically. But if we can partner with someone and, you know, have more of an impact and more of an input into the technology itself, so, you know, we're bringing more to the table, if you will, That's the sort of thing we're looking for from a partnership standpoint where we can sell to our customer base, produce out of our facilities, things like that. Also looking at can we acquire technology or product lines from someone. That might entail actually acquiring an entity, a company, maybe a one or two product company, or it might entail acquiring just the technology from someone. So we're looking at all of those. But the key there from that standpoint is things that are close to what we do now that we can, you know, lever our existing capabilities and get those economies of scale and really, you know, drive the return on that. That's really important to us. Don't want to do something where we have to do a step out and replicate production facilities somewhere else. But that's not the sort of thing we're looking for. The first point you raised, you know, we are a, I think, a bit of a unicorn for small public companies. As I said in my comments, you know, we're capital positive, we have no debt, we have a pristine capital structure and balance sheet. That enables us to do some things that I think makes us an attractive vehicle for some entities to, you know, monetize what they have. You know, maybe there's a, you know, venture capital firm who has an investment they'd like to monetize, and this is a way they could do that. So I think there are some opportunities there. That's the sort of thing that we're looking to do.

Yeah, and that would fit with how I would, a big part of what I'd be thinking. You know, an acquisition that, as I said, basically pays for itself, and you allow an exit strategy, but also a way of that entity perhaps going public.

Exactly right.

Yeah. Obviously, at this stage, difficult outlook as we push ahead. Can you talk about, you know, you've talked about having a number of these very large prospects. Can you talk a little bit more, give us what is, for you, a very large prospect and how long a lead time do you need to fill it?

I'd call it $10 million plus is a large prospect. You know, we've done several $5 million, $6 million orders, but, you know, 10 is large for us. It's from, you know, receipt of order to delivery, you know, we call it, you know, 16 to 24 weeks, something like that. But frankly, the process is more, you know, the bid is led until actually getting the award. that can be a longer time frame. So you can very well chase these things for a year, year and a half before you actually make delivery. I would not expect that we would win and deliver a project of that size in this fiscal year. Possible, but it has to happen pretty quickly.

Okay, so that is you could win it this year, but given the other factors, it's unlikely that you would be able to fulfill it fully this year.

Right. Not impossible, but unlikely at this stage.

Okay. And at what price in the stock do you actually consider the company itself to be a worthy investment?

I'm not going to touch that. That's something we think about and certainly we've said publicly, you know, if our stock is the best use of capital, that will be our use of capital. but I don't think I want to touch you for that point on me.

Well, I'll pass it on to others. Thanks, Ross.

Our next question is from Tyson Bauer with KC Capital. Please proceed.

Good morning, gentlemen. I don't think the operator liked me. I said, I don't think the operator liked me. That could be up to $10 million. Would that be more scientific of a government structure? would that be geared toward what you did?

That's right. So to answer your direct question, this is more scientific research type institutes that we're looking at. That's the type of vessel, the type of entity that's involved. And there are multi-purpose vessels that do lots of different things. So we're delivering lots of different stuff beyond just standard streamer systems and, you know, gun control systems for these things. But, yeah, you're exactly right. Those are large. And as I said in my comments, it doesn't take a lot to move our needle.

Were you hopeful that you may have?

I'm always hopeful, Tyson. I didn't expect it, though. I mean, these things do take some time. But, again, they happen when they happen.

But there's something in the hopper. I'll come, but there's something active.

There are more than one opportunities active.

I'm just going to follow a little bit out of order here, but how important is your tax loss in consideration?

Yeah, it really depends on the nature of the counterparty and the structure of the deal, but it could be meaningful in that you could have a tax-neutral transaction fairly easily, I think. But, you know, look, as I think you'll appreciate, you know, that's a complex, you know, situation which, you know, may or may not work out that potentially could have a significant value.

Is the fact that you are a U.S. domiciled entity that may want to enter the U.S. market?

I think probably yes for a couple of reasons. is number one, you're using the U.S. capital markets are relatable to us. So that's attractive to people as opposed to, you know, other capital markets. You know, from an expert or control standpoint, you know, it's probably a positive overall. So I think it's a net positive for sure.

So the system.

Do you remember off the top of your head? so it would have been probably fifty five sixty percent aftermarket I have number kind of isn't in that ballpark so you're trending and we see any of last year last really five quarters we've seen that trend really start to pick up so I think that's right now of course let me give the caveat that can always switch a bit I mean you know spares orders you know they they can be lumpy So that can switch. But, yeah, that's definitely been trending up. And it makes sense. You know, install base has been going up.

And given the comments before the Q&A, it sounds like four or five million.

Yeah, that's about right. There's half of that order, that large order we got in the fourth quarter, did not get out the door. And we had hoped at one point that we'd be able to. It just didn't come in soon enough. and lots of factors as to when the customer could pick it up and things like that. So we just don't get it out the door.

So the current backlog that you disclose, is that made up entirely?

Not entirely. There's some aftermarket stuff in there too. Again, I don't have the breakdown in front of me, but it's a combination.

SG&A, obviously we have stock comp for $714,000 a quarter. You typically have some additional professional fees to stay level closer to $2.8 million.

Probably ballpark, again, with some variations from quarter to quarter. I think, you know, the stock-based comp is going to continue for a while. It'll start to trend off. You know, I don't have the trend off in front of me right now, but it will trend off over the coming quarters. You know, we did have some unusual things last year early in the year, which skewed the full year amounts. You know, some tax analysis, some franchise tax adjustments, things like that, which won't be reoccurring. So I think if you factor out the stock-based comp, you'll see things kind of stabilize and maybe trend down just a bit.

Order timing, typically capital budgets are set at the end of the year or calendar years, the following year, whether it's in the beginning of the year that the capital budgets have been. that well I think I would caution that the budgets are set in stone and then

executed on I think in this environment you see things change during the course of a year so I think capital budgets can go up or down we certainly saw them go down last year during the year so I think they can go both directions also as we're dealing with some of these governmental agencies you know they work on a different, you know, calendar than we do, than a natural calendar year. So I would be cautious to put too much into that. Having said that, I think the general trend I'm seeing is an uptick in inquiries and interest in additional equipment. So what's uncertain to us right now, we've tried to emphasize this, you know, how quickly those opportunities materialize. Does it happen next month or is it, you know, nine months down the road? Hard to say right now. So I think everyone's being cautious still, but I think they're making some preparations to maybe turn things loose a bit when things are a bit more certain.

One thing I find interesting, you talked about the possibility of new vessels. New vessels are you're confident?

To a point, you are correct that there are certain aspects of the technology that are unique to us. So we're going to get that distance almost certainly. There are other parts of those projects that we pursue that we do have some competition on. So those aren't a foregone conclusion. I think also you have to understand, especially with the foreign entities, governmental agencies, there sometimes are contractual requirements that we may not find palatable. So we may, you know, walk away from an opportunity because we just don't like the terms. They're too onerous. So that sort of thing can happen. So, I mean, you're right in that to some degree, if a project happens, we're going to get it, but not to the same magnitude of the, you know, $10 million order necessarily.

And you're able to work with the CCMAT, the ultimate end customer?

Okay, ask that another way. I'm not sure I understand what you're getting at.

Do you work directly with Chinese customers, or do you have to work with them? So you already?

It depends on what it is. There's some things we can't sell to the Chinese, and there's some things that have to be, we have to limit the capabilities of what we sell to the Chinese. Those are the things that are no limits at all. But, yes, we deal directly with Chinese.

And the last question, probably the most important question for shareholders, is how do we keep 27 if we're becoming a loss year for sure? Grow the backlog throughout the year, or if you do other activities that are...

Tyson, that is absolutely correct. ...detail.

You didn't have to provide any color.

No, you're exactly right. I mean, we tried to allude to that in that, you know, there may be some things happen that just don't reflect themselves in the financials right away, But I think there are lots of opportunities for us to create value, and, you know, that's what we're all about.

All right. That sounds great. Thanks a lot, gentlemen. Hey, Beth.

We have reached the end of our question and answer session. I would like to turn the conference back over to management for closing remarks.

Okay. I'd like to thank everyone for joining us today and look forward to talking to you again at the end of our first quarter here in a few weeks. Thanks very much.

Thank you. This will conclude today's conference. Friends, you may disconnect at this time and thank you for your participation.