Northern Technologies International Corp Q3 FY2026 Earnings Call

Welcome to NTIC's third quarter 2026 earnings conference call and webcast. At this time, all participants are in a listen-only mode. After this week's presentation, there will be a question and answer session. Instructions will be given at that time. Today's conference is being recorded. As part of the discussion today, the representatives from NTIC will be making certain forward-looking statements regarding NTIC's future financial and operating results, as well as their business plans, objectives, and expectations. Please be advised that these border-looking statements are covered under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and that NTIC decides to avail itself of the protections of the safe harbor for these statements. Please also be advised that actual results could differ materially from those stated or implied by the border-looking statements due to certain recent uncertainties, certainties, including those described in NTIC's most recent annual report on Form 10-K, subsequent quarterly reports on Form 10-Q, and recent press releases. Please read these reports and other future filings that NTIC will make with the SEC. NTIC disclaims any duty to update or revise its forward-looking statements. I will now hand the call over to Mr. Patrick Lynch, NTIC's CEO. Please go ahead, sir.

I'm Patrick Lynch, NTIC's CEO, and I'm here with Matt Wolfsfeld, NTIC's CFO. Please note that a press release regarding our third quarter fiscal 2026 financial results was issued earlier this morning and is available at NTIC.com. During today's call, we will review various key aspects of our fiscal 2026 third quarter financial results, provide a brief business update, and then conclude with a question and answer session. Please note that when we discuss year-over-year performance, we are referring to the third quarter of our fiscal of 2026 in comparison to the third quarter of last fiscal year. Strong global demand and increasing adoptions of our xeris corrosion prevention and nature tech bioplastic solutions drove quarterly consolidated sales to new record highs. Disruptions to shipping through the Strait of Hormuz during the quarter caused by recent increased conflict levels in the Middle East contributed to a significant increase in our raw material costs. Higher input costs reduced our gross margin by approximately 477 basis points year over year, and we estimate that gross profit was negatively affected by approximately $1 million based on gross margin levels prior to the increase in U.S.-Iran hostilities. We believe that the third quarter cost pressure was temporary, and we are pursuing pricing and procurement initiatives that we expect will improve gross margin and profitability in the fourth quarter. Since reaching the profitability levels we planned for is taking longer than expected, we believe NTSC must remain focused on the initiatives within our control to drive more profitable growth, including expanding sales of our higher margin zero-to-oil and gas solutions and broadening nature tech applications globally. Our liquidity and financial flexibility remain solid supported by a significant capital within our joint venture network and anticipated proceeds of more than one million dollars from the pending sale of our beechwood ohio facility which is expected to close in fiscal 2027. the resilience of our business model continued demand for our technologies and our focus on execution give us confidence in stronger more profitable fourth quarter results so with this overview let's examine the drivers for the third quarter in more detail. For the third quarter ended May 31, 2026, our total consolidated net sales increased 12.6% to $24.2 million as compared to the third quarter ended May 31, 2025. Broken down by business unit, this included a 72.3% increase in zeroes oil and gas net sales, a 10.3% increase in zeroes industrial net sales and a 5% increase in nature tech sales. Turning to our joint venture sales, which we do not consolidate in our financial statements, total net sales for the fiscal 2026 third quarter by our joint ventures increased year-over-year by 15.1% to $26.7 million, reflecting improved year-over-year demand across many of our joint ventures. We continue to closely monitor trends across our European markets for signs of stabilization, following years of subdued demand as governments begin to implement targeted economic stimulus packages. We expect that any economic recovery from these stimulus packages will lead to a positive impact on our... Stable sales trends continued at our wholly owned NTSC China subsidiary. Fiscal 2026 third quarter net sales at NTSC China decreased by less than 1% to $4.5 million. As I have stated before, given that the majority of NTIC's China sales are for domestic Chinese consumption, we believe NTIC China's exposure to U.S. tariffs isn't limited. We expect demand in China will continue to improve in fiscal 2026, helping to support higher incremental sales and profitability in the market. On a trailing 12-month basis, NTIC China's sales have increased 12.8% to $17.8 million, dollars, comparing to 15.8 million dollars for the same corresponding period last fiscal year. We believe that China will likely become a significant market for our industrial and bioplastic segments, so we'll continue to take steps to enhance our operations in this geography. Now, moving on to Xeris Oil and Gas. Xeris Oil and Gas sales were $2.2 million, a third-quarter record and increase of 72.3 percent from the same period last year. This growth reflects the investments we have made in our global sales infrastructure and the increasing adoption of our VCI solutions within the global oil and gas industry. The third quarter reflects the fourth consecutive quarter that Zeris oil and gas sales have been over $2 million. And on a trailing 12-month basis, sales are now over $10 million for the first time in our history. We are encouraged by these trends as adoptions increase and we developed new applications for our corrosion prevention solutions across the global oil and gas market. During the third quarter, we experienced higher year-over-year oil and gas sales in the Middle East, North America, India, and China from both new and existing customers, reflecting the contribution of recent investments we have made to enhance our sales team and add resources to support future growth. This has improved our sales pipeline as the size and number of opportunities has expanded. Our pipeline includes global opportunities to protect above-ground oil storage tanks, pipeline casings, and offshore oil rigs from corrosion. The nature of this industry will always cause certain fluctuations in zerest oil and gas sales. Nevertheless, we still expect to see zerest oil and gas sales and profitability to improve significantly in fiscal 2026 as we leverage these investments and rein in operating expense growth. Turning to our Nature Tech bioplastic business. Third quarter Nature Tech sales were a quarterly record $6.1 million, representing a 5% year-over-year increase. We continue to pursue several larger opportunities in North America and India that we believe can further benefit Nature Tech sales in the coming quarters. In North America, Nature Tech was recently selected for the International Fresh Produce Association's Packaging Innovation Program, where we are advancing commercialization of compostable barrier-lamide solutions for food packaging applications. In India, we announced a collaboration with Bayer to develop biodegradable and compostable seedling cups for nursery applications. This initiative is expected to begin with pilot trials in vegetable and fruit nurseries and subject to successful invalidation could create a meaningful new application for our compostable materials platform. These initiatives build on new food packaging opportunities we have discussed on fryer calls and demonstrate the expanding range of markets in which NatureTech can provide a practical alternative to conventional plastics. Overall, we believe NatureTech is a best-in-class compostable plastics business that is well-positioned for further growth in the U.S. and internationally, as we expect sales to continue to expand over time. Before I turn the call over to Matt, I want to acknowledge the hard work and dedication of our global team of both employees and joint venture partners, Our success and our ability to navigate more complex economic periods are a direct result of their efforts. With this overview, let me now turn over the call to Matt Wolfsville to summarize our financial results for the fiscal 2026 third quarter.

Thanks, Patrick. Compared to the prior fiscal year period, NTIC's consolidated net sales increased 12.6% in the fiscal 2026 third quarter, the second consecutive quarter of year-over-year double-digit growth. Sales across our global joint ventures increased 15.1% in the third quarter. Joint venture operating income in the third quarter increased 12.2% compared to the prior fiscal year period, primarily due to higher sales at our joint ventures. Total operating expenses for the fiscal year 2026 third quarter increased 5.3% to $10.2 million, primarily due to higher year-over-year selling, general administrative, as well as research and development expenses. Operating expenses as a percentage of third quarter sales were 42% compared to 44.9% for the prior fiscal year period. We expect quarterly sales to grow faster than operating expenses as we continue to leverage recent investments and upgrades across our global operations. Gross profit as a percentage of net sales was 33.6% during the three months ended May 31st, 2026, compared to 38.4% during the prior fiscal year period. As Patrick discussed, gross margin for the third quarter was impacted primarily by higher raw material costs as a result of the conflict in the Middle East and disruption of shipping through the Straits of Hormuz. We expect gross margin to improve sequentially for the fourth quarter of fiscal 2026. NTIC reported a net loss of $263,000 or 3 cents per share for the fiscal 2026 third quarter compared to net income of $122,000 or 1 cent per diluted share for the fiscal 2025 third quarter. For fiscal 2026 third quarter, NTIC's non-GAAP adjusted net loss was $158,000 or 2 cents per diluted share, compared to a non-GAAP adjusted net income of $228,000 or $0.02 per diluted share for the fiscal 2025 third quarter. A reconciliation of GAAP to non-GAAP financial measures is available in our third quarter fiscal 2026 earnings press release that was issued this morning. As of May 31st, 2026, working capital is $20 million, including $7.3 million in cash and cash equivalents compared to $20.4 million, including $7.3 million in cash and cash equivalents as of August 31st, 2025. As of May 31st, 2026, we had outstanding debt of $14.8 million. This included $11.8 million in borrowings under our existing revolving line of credit compared to $9.3 million as of August 31st, 2025. Reducing debt through positive operating cash flow and improving working capital efficiencies is a strategic near-term focus. During the third quarter of fiscal 2026, we committed to a plan to sell our Beachwood, Ohio facility, which has historically been used for our XERAS segment. As a result, we reclassified the carrying value of the property by $869,000 from property, plant, and equipment to assets held for sale on the consolidated balance sheet as of May 31, 2026. On May 31, 2026, we received a non-binding letter of intent to purchase the property for $1.15 million in cash, subject to a customary diligence period and execution of a definitive purchase and sale agreement. We expect the sale of the property to close during fiscal 2027. On May 31, 2026, the company had $30.4 million in investments in joint ventures, of which 54.4%, or $16.5 million, was in cash, with the remaining balance primarily invested in other working capital. To conclude our prepared remarks, we believe our third quarter results demonstrate the continued strength and resilience of our business, highlighted by record quarterly consolidated sales and growth across our core corrosion prevention and bioplastics platforms. While profitability during the quarter was affected by a sharp increase in raw material costs associated with geopolitical disruption in the Middle East, we believe this pressure was temporary and does not change our view of the long-term earnings potential of the As we move through the fourth quarter of fiscal 2026, we expect continued sales growth and improved profitability, supported by pricing actions and disciplined expense management. We also remain focused to advancing higher margin zeroes to oil and gas opportunities and expanding nature tech applications globally. We believe these factors position NTIC to deliver stronger financial performance and cash flow generation in the coming quarters. With this overview, Patrick and I are happy to take your questions. Thank you, Lisa. And gentlemen, to ask

a question at this time, you will need to press star 1-1 on your telephone and wait for your name to be announced. To withdraw your question, simply press star 1-1 again. Please stand by. We'll compile the Q&A roster. Our first question coming from the line of Timothy Clarkson with

Ben Clemens, Elon is now open. Hey, guys. Just a couple of questions. I was just wondering, if you're going to separate the oil and gas business, you said you're on pace to do about 10 million I guess that's annually I mean how profitable would that division now be would it be would that be a 10 net business or a 5 net business or or don't you even look at it that way

we don't specifically look at it like a uh like a separate separate business as a standalone like that I mean you can certainly look at oil and gas and say yeah we we expect the you know the total revenue from oil and gas to be you know above 10 million for the uh you know you know around 10 million for the year um you know we know what the gross margins are we know what the contribution is going to be we can certainly see how things are ramping up in oil and gas kind of across the board um and certainly with expectations of what's going to happen and what we're expecting to see in fourth quarter um you know that's going to drive a significant amount of profitability And so, you know, that's really what's going to be the kind of the key contributors. I mean, if you look at third quarter oil and gas this year compared to third quarter oil and gas, you know, last year, you know, it's certainly up significantly. It's up, you know, 77 or 72 percent just oil and gas is comparing comparing that amount. Now, you know, I'd say the disappointment is that if you look at, you know, the trailing oil and gas numbers, third quarter was lower than second quarter. And the expectation was that we were going to kind of continue to build that oil and gas revenue. And so there's obviously a very low comparison to the prior third quarter. you know there are some there were some shipping issues there were some large projects that came in and ultimately end up being invoiced in in June that will help significantly you know from a gross margin contribution standpoint in our fourth quarter you know which kind of gives me you know at least are you having an invoice to this point in time now that we're already you know 40 days into the fourth quarter you know a lot more confidence in our fourth quarter

numbers compared to where we expected to be. Sure. So, but I mean, just in general, the gross margins in oil and gas are higher than the gross margins in the rest of the company.

Yes. And so we expect that to kind of play out from a weighted average standpoint. Right. You know, the biggest hit we had, you know, in the quarter, if you kind of look down the line, you know, revenues were strong across the board. Joint venture contribution in total was up. The biggest, and we were able to hold operating expenses at the 5% level, which is what we had planned to do. The big issue that we had was the gross margin impact with polyethylene prices increasing by 30-plus percent with the conflicts going on in the Middle East. we have now seen the growth we've now seen polyethylene prices if you look at the markets return back to the august august 2025 levels we expect that to flow through you know we've seen that flow through through through may and through june we've seen that flow through our inventory and you know we were able to pass a lot of those cost increases on to customers but ultimately you know we we we dropped a few percentage points from a gross margin standpoint because of uh you know because of that situation so right you know we're still pretty optimistic you know given what we've seen in june given what we've seen you know with what the backlog is for july and august um there were still still gonna be a still gonna be a pretty strong uh fourth quarter it should be our strongest quarter of the uh of the year and certainly give us a lot of momentum with what

we expect to do going into fiscal 27. Right, right. Now, you mentioned that there's been some positive things going on in Germany. Can you do a little more color on that?

I think the positivity, when I look at what's going on, you know, kind of in Germany and things like that, we are seeing from a revenue standpoint that, you know, revenues are bouncing back, uh you know revenues are bouncing back compared to you know prior periods we're starting to see kind of a stabilization where we hope that we've certainly hit the trough as far as um and they're starting to come back as far as what's happening from an industrial standpoint um you know if they can get some things figured out in at the country level as far as what uh you you know, as far as energy prices and things, hopefully that trend kind of continues from

our standpoint. Right, right. And I assume you guys are always looking to try to, you know,

cut expenses wherever you can. Yeah, certainly. But I mean, I think, you know, one of the key comments that Patrick made, you know, when you look at it is we are ramping up revenues. We do expect fourth quarter revenues to be higher than third quarter revenues. And we do expect to hold our expenses uh relatively flat and so right you know we're not going we're not coming into this saying the reason why that we we didn't make uh money this quarter is because we increased our expenses and we made all these investments it's we're now at a point where we have you know capped off the investments we're holding things as flat as possible and we're seeing the revenue um you know where we expect the increased revenue to drive the gross margin dollars to the bottom line and that's what i expect to see in fourth quarter and expect to see throughout fiscal 27. we do not have significant investment plans either from an employee standpoint or from a capital purchase standpoint in north america in fiscal 27. one of the things we do have is because of the growth that we're seeing in brazil inside of oil and gas because the growth that we're seeing in at nature tech india because of the opportunities there that we're looking at over the next coming years, they are investing in some new facilities to be able to meet the demand there. So there will be some investments, but those are at the subsidiary level, not at the NTSC

Right, right. Okay. Well, I'm obviously anxious to see that improve profitability, and I'm still there. So thanks for your time.

Thank you. Our next question coming from Delina. John Mayer with Ascend Wealth Advisors.

Thank you, and good morning for you. Number one, can you expand on how you're addressing your ability to source raw materials used for, let's say, nature tech or even rust to get yourself away from the need to source raw materials from the Mideast? if that's possible, and how that might play out and help you in improving your raw material costs.

Sure. I think the one item to point out is that there are no raw materials that we're sourcing from the Middle East. It simply has to do with the raw material impact that the situation the middle east had on raw material prices around the world and so we we are not currently sourcing from from from anywhere but obviously there's a huge amount of global trade that flows through the uh flows through the straits and so that ripple effect is what caused the 30 plus increase in the ldp prices that that ripple effect is what we saw that caused a lot of our other you know base chemistries that go into some of our um our powder-based materials and things like that to to increase so from a production standpoint we've spent the past three years looking at diversifying our our capabilities of producing in China producing in India producing and subcontracting and in Vietnam and Thailand other areas so that as there are tariff changes and opportunities we're able to kind of capitalize on those on those countries we're still pursuing that plan. And so, you know, we've certainly established over the past three years the ability to source from different areas around the world to get the most effective pricing to keep our costs and gross margins, to keep our costs down and our gross margins, you know,

at stable levels. Okay, very good. And then my second question is, if you could expand on your recently announced compostable seedling cup efforts, and is that something that could be replicated in, let's just say, North America for the U.S., Canadian, Mexican market, or maybe even in South America? And secondly, can you kind of expand on the timeline of when this effort could potentially play out beneficially for you. In other words, get away from an implementation to where

it's actually... I would say that it can be implemented globally. And in terms of how long it's going to take to hit our bottom line, I would guess that they'll be testing for another period of time. So maybe start some commercialization in a year.

I'm sorry, say that again? We might see some commercial sales in a year. It is focused, but it has a global approach. In other words, can you set up operations within, say, the U.S. or within Canada where there's large agricultural efforts?

Yes, absolutely there's applications in those countries.

And so is this a global?

For right now, it's specific to India. I don't presume to know everything that Bayer is thinking. They're a big company.

Thank you. Those are the questions I had.

Thank you. Our next question in queue coming from the line-up. Don Hall with DMH Investments. You let us sound open.

Good morning, gentlemen. I believe in previous, you mentioned some contracts, particularly in Brazil and then it's for zeros. Is there more you can tell us about?

No, you're not mistaken. The contract in Brazil was related to opportunities that we have for offshore FPSOs. And that is a contract that was about a 14 plus million dollar contract over over several years that is scaling up as far as far as our Brazilian subsidiary taking advantage of that that isn't process that's been a process for a few quarters if I look at the you know Brazilian the Brazilian oil and gas revenue you know in the nine months ended in in May 20 in May 2026 compared the prior nine month numbers is up close to 70% that's a result of the implementation of this contract we expect based on how we are servicing those those companies it's kind of a cumulative effect it's not the kind of situation where you have you know four million dollars per year over a over a three-year period it's a ramp up where you are providing the materials and service to these offshore offshore FPSOs and continue to add more and more so So it's a slow scale up to where in year three, you'd ultimately be implementing on, you know, a number of FPSOs, you know, three times the number of FPSOs in the third year that you would in the first year. So it's kind of a cumulative buildup of the project. But, yeah, that's certainly moving forward and certainly is successful.

And should lead to some increased sales in that geography, right? Okay, good. thanks really like that yeah i mean overall the nine month oil and gas revenue across the board

is up 67 percent so that means the non-brazil number is up you know the non-brazil number is up 67 flat the brazil oil and gas number is up 67.7 percent uh the increased revenue that we're seeing in the oil and gas space is in North American opportunities, in our new subsidiary in the Middle East that we spent significant amounts investing in over the past 12 to 18 months. That is scaling up well and is at a point where it's making contributions. So the expectations are that we're going to continue to see sizable annual revenue growth in all of the areas in oil and gas. All right. Thank you very much. Thanks, Don.

Thank you. Our next question coming from the lineup, Gus Richard with Nordland Capital Markets. See you on this now, Finn.

Yes, thanks for taking my questions. I just wanted to ask about NatureTech. You know, in the press release, you mentioned gross margin pressure on the call. You mentioned, you know, new products, which I would expect to help gross margins. I was just wondering if you could talk about how you see the trajectory of those two things in terms of margins for a nature tech yeah I mean I think there's

there's different aspects as you're all aware there's different business lines inside of nature tech and there is the what I'll call the commodity nature tech business made up of bag liners and cutlery and things like that and then there is the you know the proprietary resin formulations that we're working on you know for applications with with other companies and I think what we're seeing is that you know for a lot of the commodity based trash bag liner you know revenue that we have it is a cost sensitive you know price sensitive you know business and so you know we in order to maintain those revenues you know at times there are you know pricing issues that we have and you know different you know that have impacted our gross margins that was that's what I you know alluded to in the in the in the earnings release as far as how some of the nature tech gross margins have been impacted so you know we're not seeing we saw some positive gross margin improvement over the prior 18 months with some of the raw material prices coming down but we're also seeing you know as we noted we're seeing some of the price competition inside of nature tech being a little bit of a headwind and so that kind of on top of the issues we saw with the with the zeroes industrial you know raw material prices is what kind of caused the impact for you know the overall gross margin of the company to be lower than expected than expected i mean i can say that even inside of q4 for the industrial business we have seen the you know a recovery of the gross margin uh for nature tech it's it's it's still at a point where it's uh you know those aren't one-time issues those are you know discounts and and and pricing that we have pushed through to customers that's not going to change unless we're able to change input cost. Okay, got it. And then just so it's clear

in my mind, you know, the war has had an impact on the oil and gas business globally, not just you guys. And I'm just wondering, from your perspective, has the war in the Middle East had a positive or negative impact on your oil and gas business? You know, people ramping up production places or ramping it down or

what have you it definitely had a negative impact in third quarter i mean we had our the individuals that are working in our operations in the uh in in dubai were you know they weren't allowed to leave their houses you know at various times in in our second quarter because there were you know bombs and missiles flying uh flying overheads and bomb sirens going off and things like that so it certainly has an impact on what is you know what they're able to do and projects you know in normal business occurring in the area so certainly the you know what we saw in that area was down a little bit but I can say that there's a lot of infrastructure in that region that was damaged you know that is going to need to be rebuilt there are going to need to be investments there you know they are going to be doing that over the coming years that certainly is going to continue to drive opportunities. So, you know, long term, I don't see even looking forward just a couple quarters, it looks like the opportunities have kind of rebounded and things have calmed down. But certainly during the second quarter, it was a, you know, it was concerning with what was going on very close to employees that we had in the region. Got it. Thanks.

And then, you know, your decision to sell Beachwood to Seabrocks Business Industrial is improving, looks strong, and just wondering what went into the decision to sell the Beachwood facility.

Well, we've had that facility for probably 20 years, right around there. And for the most part, with the building that we purchased up in Minnesota, the expansion, the building that we purchased right next to our headquarters we've had for a long time, it's given us more opportunity just to consolidate everything in Minnesota. And so we moved the Beechwood office was kind of the oil and gas group and the R&D people that were there that were kind of working in the Beechwood office. They're being brought up to Minnesota just as an effort to kind of consolidate the facility. There's no real reason to remain in Ohio. Got it.

And then last one for me on SG&A, you know, it's a little bit above what I would have expected. Was there a one-time item there or what's going on with that line?

No, no significant one-time charges or one-time expenses in SG&A.

Okay. Thanks so much.

Thank you. Our next question coming from Delaina, Zach Liggett with Desmond Liggett, Weld Advisors. Yelena is now open.

Thanks for taking the questions. Nice job on the corridor. A lot of stress here in the Middle East. You guys seem to be handling things pretty well with the things you can control. Nature Tech, good color there. Any way you can quantify what the volume growth looked like? And then my follow-up to that is on the innovation front, is there any more you can tell us about what's happening with the food packaging innovation?

From a volume standpoint, if I look at Nature Tech from a revenue standpoint, the Nature Tech revenues for the nine-month period are up 5%. For third quarter, it's up 5%. I would say from a volume standpoint, it's probably up closer to 10% to 12% if I'm looking at case quantities and things like that, so you can kind of see based on that what portion of it is price concessions and what portion of it is volume growth. So that's where we are from that standpoint. as far as you know expectations of what going on with with food packaging those are a little longer in the development as far as what needs to happen with these specific chemistries and then being able to use the resin that we produce on the customers you know existing equipment to generate that product there's just a lot more involved with doing things that involve that involve food that take a little more time but certainly the applications that we're pursuing have been very positive we're very optimistic about them and they are sizable you know healthier margin opportunities so those are certainly the you know some of the things that we expect to fuel the growth of nature tech over the coming you know 12 18 24 months are some of these food service opportunities both in

the United States and in India. Okay, great. And then last one for me on the AI front. I think I asked this before, but I'm curious with your sales teams or just internally, are you guys piloting any projects? Are you finding any productivity gains from the use of AI tools

at this point? Yeah. Well, specifically from an AI standpoint, one of the benefits that I wasn't expecting when we made this decision but when we made the switch to SAP you know 18 months ago the let's say that the data that we're able to gather from both the manufacturing standpoint from a sales standpoint from a product sales standpoint there's significantly more data available than what our historical system had and what we're finding is that with using external tools like Claude and being able to really you know I kind of pound through and analyze you know hundreds of thousands of lines of data that we didn't have before it gives us a really really clear insight into what's going on of each individual customer each individual ordering level of the customers gross margin at the customer level gross margins the product level which we didn't and wouldn't have had access to before and so those are certainly some of the areas where we're able to go in and you know rather than going in and you know hammering something with a hammer we're able to go with a scalpel to kind of fix different things and kind of evaluate where we are additionally on top of that you know we're finding is that you know sap that we're looking at implementing is they have internal ai tools that can be uh utilized directly in your system so employees will be able to utilize you know the sap ai tools to pull up things faster uh to be able respond to customers faster, other things like that. So on all levels, from executive level down, we are working to implement these things to become, I wouldn't say just more efficient, but be able to be more reactive and be able to really tighten things up from a business standpoint.

Yep, yep, good. Sounds great. Thanks for taking the questions.

Thank you. And I'm showing up for the questions in the Q&A queue at this time. I will now turn the call back over to Mr. Patrick Lynch for any closing comments.

Thank you for joining us this morning, and have a nice day.

This concludes today's conference call. Thank you for your participation, and you may now disconnect.