Edited Transcript of TTR.V earnings conference call or presentation 13-May-20 12:00pm GMT

The strength of our balance sheet and our available credit facilities positions the company well to execute on opportunities as they arise. We remain engaged in this area.

With that, I would like to turn it over to Alex to go over our first quarter results.

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Kit Fu Chun, Titanium Transportation Group Inc. – CFO [3]

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Thank you, Ted, and good morning. On a consolidated basis, revenue for the first quarter was $44.3 million, representing our second highest first quarter revenue in company history and a 10.4% increase from Q1 2019. Revenue in Q1 2019 was $39 million. The increase in revenue can be attributed to growth in our logistics business. Consolidated EBITDA for the first quarter amounted to $4.5 million, representing an 11.1% EBITDA margin. This compares to EBITDA of $4.6 million and an accompanying 12.7% margin in Q1 2019.

The construction in the margin was largely due to growth in our U.S. logistics business, which saw some pricing pressure due to the current economic environment. We expect the U.S. margins to recover in the future when the market normalizes. On a segmental basis, Truck Transportation revenues were $27.6 million for Q1 2020 as compared to the $28.1 million in the prior year quarter. The decline in revenues can be attributed to a softer pricing environment.

EBITDA was $4.42 million or 17.4% of revenue in the first quarter of 2020. This compares to EBITDA of $4.41 million and a 17% margin in Q1 2019. Better cost controls and reduction in direct operating costs were the main contributors to higher EBITDA margins despite lower revenue. Logistics segment revenue came in at $18 million for the first quarter, up from $12.1 million in Q1 2019. We reported EBITDA of $555,000 in Q1 2020, representing a 3.3% EBITDA margin on a comparable basis, EBITDA was $572,000 or 5.1% of revenue in Q1 2019.

Moving on to balance sheet and liquidity. We continue to generate solid free cash flow during the first quarter, amounting to $3.8 million. As of March 31, net debt was at $64 million down from $66.3 million as of year-end 2019. Our net debt-to-equity ratio was 1.54:1, down from 1.63 at the end of 2019. We have ample undrawn capacity under our credit facilities, along with our $2 million in cash. This includes undrawn amounts of approximately $11.1 million under our revolving demand operating facility, $5 million on a non-revolving acquisition facility, $7.5 million under an accordion acquisition facility and a $13.6 million in finance lease and loans facilities.

Cumulatively, the total approximate — this totals approximately $37.2 million of undrawn facilities. From a CapEx standpoint, as Ted has mentioned earlier, we have deferred all discretionary capital spending. While we repurchased a modest number of shares under our NCIB in the first quarter, going forward, share repurchases are not a capital allocation priority. Our preference is to retain healthy levels of liquidity given we have limited visibility.

Overall, I feel very comfortable with our financial position and our financial performance in the first quarter.

With that, I would like to turn it back to Ted for final remarks.

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Theodor Daniel, Titanium Transportation Group Inc. – President, CEO & Director [4]

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Thank you, Alex. While these are definitely uncertain times, I believe that Titanium is in excellent shape to weather the current storm and emerge from this current economic environment even stronger. We remain financially flexible as we have significant dry powder to deploy towards organic and inorganic growth opportunities, both in Canada and in the United States.

We will continue to grow in a disciplined manner. And as always, we are unwavering in delivering profitable, sustainable growth and creating shareholder value over the short, medium- and long term.

Before turning over the call to the operator for questions, I would like to once again thank our team members everywhere in every position, both in Canada and the United States for doing their part as essential workers and staying healthy. We appreciate their hard work and deep commitment. Lastly, a notable thanks to all of our customers for trusting us with their freight. With that, I will turn it back to the operator.

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Questions and Answers

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Operator [1]

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(Operator Instructions)

Your first question comes from Benoit Poirier from Desjardins.

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Benoit Poirier, Desjardins Securities Inc., Research Division – VP and Industrials, Transportation, Aerospace, Industrial Products & Special Situation Analyst [2]

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Congratulations on the results in the current environment. If we look specifically for Logistic, margin has been down on a sequential basis also year-over-year. I was wondering if you could provide or try to quantify, was it more related to the opening of the facility or more a matter of the COVID-19 in a softer pricing environment, given it’s mostly on a spot basis?

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Kit Fu Chun, Titanium Transportation Group Inc. – CFO [3]

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It’s Alex. In terms of the Q1 margin compression on Logistics, it is — like you said, it is a factor of both. It’s both our U.S. logistics opening, which does have — currently runs at a lower margin because we’re still starting up down south. And number two, there is a COVID-related impact in there that is actually affecting both the U.S. and the Canadian market. The last 2 weeks in March, when COVID really start hitting our end markets, we saw a very strong compression because carriers are — there is a limited amount of trucks that travel in — during this pandemic, and we don’t have the same pricing relief from our customers.

So unfortunately, it’s difficult to quantify because U.S. margins, number one, they were lower. And number two, they were further lowered by the situation. So it’s difficult for us to say how much of it was due to one factor.

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Benoit Poirier, Desjardins Securities Inc., Research Division – VP and Industrials, Transportation, Aerospace, Industrial Products & Special Situation Analyst [4]

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Okay. That’s still great color, Alex. And when we look at the, let’s say, the first few weeks of April or even April, could you provide maybe some numbers in terms of volume. What you’re seeing for Truck Transportation and Logistics on a year-over-year basis, just trying to assess the impact of COVID-19 in a shorter-term basis?

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Marilyn Daniel, Titanium Transportation Group Inc. – COO & Secretary [5]

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Benoit, it’s Marilyn. So volumes definitely in April were affected by COVID directly. Again, we saw a much bigger effect on our immediate Logistics department. First, Titanium having a very diverse customer base. We saw it sort of more on a gradual basis. We are starting to see the light a little bit now in terms of seeing the end of this situation, but we’re still not quite there.

In terms of adding a number to the volume reduction, I’m not sure I’m comfortable with that quite yet in terms of how we’re looking. It’s definitely a decline. On our trucking side of things, we’ve been able to keep most of our customers satisfied. Definitely, they have reduced volumes, but we aren’t really parking too much at the moment. But we definitely see reductions, and we definitely are trudging through that shuffling around some of our equipment and fleet to sort of service the accounts that are still working because there are some accounts that have total shutdowns. As you know, the automotive sector was completely shut down and not that we have a big exposure there, but we do have some. So some of that has been underplaying for sure. In terms of where we look to the future, we don’t know. It’s — every day is a little bit different. So we are definitely adapting each time. We feel very fortunate with our diversification that we’ve been able to keep most of our fleet and staff busy. So we consider ourselves very fortunate from that perspective.

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Benoit Poirier, Desjardins Securities Inc., Research Division – VP and Industrials, Transportation, Aerospace, Industrial Products & Special Situation Analyst [6]

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Okay. That’s great. Yes. And in terms of M&A, it seems that you’re still contemplating the M&A, so — despite the fact that the COVID-19. So I would just be curious if you could maybe shed some color on the pipeline right now, whether you’ve seen more opportunities in the last few months and you’re confident that you might close something this year.

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Theodor Daniel, Titanium Transportation Group Inc. – President, CEO & Director [7]

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Yes. Benoit, Ted here. So I mean, in terms of M&A, I think that, that really kind of culminates all of these different factors that are kind of happening right now putting all of it in perspective, right? You’ve got the situation with logistics, which really is reflective of the overcapacity that we’re experiencing and it’s, to a large degree, I mean, you even had some overcapacity in our industry in 2019. Volumes are down. And we’re not sure, again, how long it’s going to take for this economy to recover. Is it going to be a V, which I’m going to use economic terms here, is this going to be more of like the more of an extreme L recovery, right? Much, much, much longer and drawn out. But in general, in either case, that’s putting a lot of pressure on the industry. Nobody, I don’t think anyone on earth could have predicted this or perhaps a number of very, very brilliant biological scientists. But other than that, I don’t think anyone predicted the magnitude of what we’re all dealing with. And it’s very challenging to a lot of people. And of course, health and safety was the very, very first priority that, I think, everyone made sure was implemented.

So having said that, we do — we are a company of great people and great technology. And I think that we are looking for customers. We’re looking also for vendors, sellers that are looking for a solution, perhaps given the current circumstances, which, again, I don’t think anyone could have predicted. So we’re looking for vendors that want to be, for lack of a better term, I think, want to be a part of Titanium. As you know, many of our previous vendors they didn’t just take cash. They also took sometimes some shares, and they become a part of the business. Management became a part of the business. And it was a really great opportunity to give them sort of the next chapter and the continuity and the assurance for continuity and opportunity to become part of, sort of, this new group, both from a people and a business and a technological perspective. So that’s sort of what we’re hoping will culminate from this sort of unprecedented economic challenges.

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Benoit Poirier, Desjardins Securities Inc., Research Division – VP and Industrials, Transportation, Aerospace, Industrial Products & Special Situation Analyst [8]

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Okay. And maybe last one for me. In terms of CapEx, I understand you’re nimble here and you try to remove the discretionary spending. So could you maybe comment about what we could expect in terms of CapEx and trucks that might be added or removed for the full year?

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Theodor Daniel, Titanium Transportation Group Inc. – President, CEO & Director [9]

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So actually, our fleet is still fairly new. We do have 100 trailers on order currently, but that is standard capital turnover. So it’s basically your one — it’s — your turnover [evens] roughly every 11 years. So that is something that we budgeted for. And in terms of our capital priority, definitely, I mean, as they say, cash is king. So in this case, we’d like to have a — we’re kind of — in a way, we’re really happy. I mean, we didn’t expect what’s going on. But in a way, I think we’re maybe a little lucky in the sense that we’ve got a ton of dry powder sitting in the barn. So we’re going to sort of keep our CapEx only at the necessity level. Again, sticking with protecting our liquidity. We’re only going to replace the equipment on an as necessary basis.

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Operator [10]

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Our next question will come from David Ocampo from Cormark Securities.

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David Ocampo, Cormark Securities Inc., Research Division – Analyst of Institutional Equity Research [11]

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So Marilyn, I understand that you’re not really comfortable providing kind of that revenue guidance for Truck Transportation. But how should we think about margins in a declining revenue environment? Are you guys still able to kind of defend your margins within a reasonable range? Or can we expect that to see some pressure as well?

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Marilyn Daniel, Titanium Transportation Group Inc. – COO & Secretary [12]

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So on the trucking side of things, our rates are relatively stable. Volumes are what we’re really watching at the moment and making sure that we’re diverse enough that way. Rates are rather flat, some pressure on that, but not huge. In terms of — so I feel fairly confident on that side going forward. And there are some cost benefits that we’ve been working on that we — that sort of help us through this time. From a Logistics perspective, again, it’s volume related. We feel that our margins have been relatively consistent, and we’re able to move forward with that. It’s just a matter of when the volumes are there. Logistics being largely an overflow spot market business, some contracted rates, et cetera. It’s really based on consumerism and how things are moving and how we’ll see going forward that way. Again, our ability to use technology as our guide and metric system on a day-to-day basis is really important because we’re able to sort of watch and direct very quickly in terms of where our focus needs to be. Obviously, right now, the focus is on essential items, food products, things like that. So that’s just a natural course. But as the markets open up, we can redirect accordingly.

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Theodor Daniel, Titanium Transportation Group Inc. – President, CEO & Director [13]

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To some degree, obviously, a big chunk of our expenses, David, are variable costs. So I think that even if volumes are down a little bit at this point in time, that’s a reality. We are able to obviously maintain almost the same margin because a lot of them are variable, right? I mean, fuel is variable. R&M, to some degree, is variable because if you don’t use the truck, you’re not really — right, you’re not eroding the equipment, et cetera, right?

So…

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David Ocampo, Cormark Securities Inc., Research Division – Analyst of Institutional Equity Research [14]

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All right. And Ted, can you remind me what your split is kind of between owner ops?

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Theodor Daniel, Titanium Transportation Group Inc. – President, CEO & Director [15]

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45% owner operators and 55% company drivers.

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David Ocampo, Cormark Securities Inc., Research Division – Analyst of Institutional Equity Research [16]

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And last one for me, just kind of a quick follow-up on Benoit’s question on CapEx. Since it’s getting pushed off, can we expect some sort of catch-up in 2021? Or is the fleet age at a reasonable level where it should just kind of be steady as she goes?

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Theodor Daniel, Titanium Transportation Group Inc. – President, CEO & Director [17]

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Yes, yes. In 2021, you would probably — I mean, if we have to replace a bunch of trucks, trailers we’re going to do some this year. And then we should be okay for next year. In 2021, you probably will see somewhere around 50 to 70 trucks in 2021 for replacements.

And this year, again, we’ve got the 100 that are being replaced. Yes, trailers.

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Operator [18]

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(Operator Instructions)

Your next question comes from [Mike Owen] from [Palms].

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Unidentified Analyst, [19]

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A lot of my questions have been answered, but let me just start big picture. Could you just talk about some of the end markets that have perhaps been particularly strong, maybe surprisingly so, given all that’s happening and maybe some of the ones that have been a little surprising on the downside as well?

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Theodor Daniel, Titanium Transportation Group Inc. – President, CEO & Director [20]

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Yes. So one of the things that we sort of early on, I guess, I’ll sort of give you a big picture, Titanium, going back way, way, way back. When we were kind of first starting out, like most companies, you sort of land your first big account. And I remember in Logistics, our very first big account was a very large grocery store chain. And we had this huge dependency on this customer for the first, call it, 1 to 2 years. But that’s just part of growth. And I think the conscious decision that we made was, well, how do you make sure that you’re not — one of these companies that has massive dependency on one customer and then down the road, you’ve got a problem. Well, you don’t want to get rid of the customers, so you go get more customers, right? So what we did is we grew and we went and got a whole bunch more customers and made sure that we were really, really diversified. So we’ve got kind of every level for the most part of the consumption chain, all the way from raw material, i.e., metal and aluminum coils, paper, pulp that goes into making recycled paper, which goes into making toilet paper and plastic and packaging and so on.

All the way up to your big box store finished goods. So I think that given the fact that we’ve got over 1,000 customers, 80% of our — around 75%, 80% of our freight is for the most part, customer direct. We — not one customer is greater than 6% dependency. So we have the ability to sort of weather the storm from the point of view of customer dependency. And so a lot of our end markets are customers that, to a large degree, service the consumable consumption, a CPG sort of supply chain. So whether it’s the material that goes into making toilet paper or it’s the stuff that you used to make a can of Coke, right? So that’s sort of that side of it. And then the other side of it is just the basic consumptions, right? People need to live. These are tough times. But there’s still this continuity of the fact that people are online buying and buying groceries online and so on. So I think that, that’s kind of what drove our ability to kind of weather the storm through these type of really unpredictable event.

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Marilyn Daniel, Titanium Transportation Group Inc. – COO & Secretary [21]

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I can chime in just for a sec, too. So just a little more directly on your question there. In terms of the sectors, obviously, the areas that have sort of kept us busier are consumer-related products, aluminum for canning for food products, paper products for retail. Things like that is definitely — I mean, those are just the obvious ones that are able to go to your grocery store supply chains and related products for that. Some of the construction materials that we’re still able to keep moving during this time, roadwork, medians, concrete barriers, things like that, areas that we sort of ventured into as serving our customers in, and those areas have definitely helped us through this pandemic.

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Theodor Daniel, Titanium Transportation Group Inc. – President, CEO & Director [22]

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Yes. I think the term recession proof, to some degree, is a term that we’ve used in the past. And we didn’t realize the magnitude of what that really meant until we were faced with once in a century…

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Marilyn Daniel, Titanium Transportation Group Inc. – COO & Secretary [23]

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World Shutdown.

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Theodor Daniel, Titanium Transportation Group Inc. – President, CEO & Director [24]

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Yes, world shutdown pandemic. So this gave us new meaning of what recession-proof really meant.

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Unidentified Analyst, [25]

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Yes. You never said depression-proof so…

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Theodor Daniel, Titanium Transportation Group Inc. – President, CEO & Director [26]

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Yes, exactly so…

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Unidentified Analyst, [27]

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And just to kind of — I just had a secondary question I thought of as you were speaking in the same gain, and that is being [consumables], obviously, we’re not going to stores. We’re using e-commerce for more than ever and it probably doesn’t revert back fully once the vaccine is discovered or whatever solution is. So I guess, from your perspective, I mean, has it — from an operational perspective, has it been a case where you’re still delivering to the same places, like the same warehouses, and it’s just really the retailers that are rather than directing it to their stores are setting it out directly to — via the e-commerce channels? In other words, has there been much change from an operational point of view or if you have to reconfigure spends?

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Theodor Daniel, Titanium Transportation Group Inc. – President, CEO & Director [28]

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No. So we’ve always sort of maintained. And I like the idea of, I mean, kind of a weird way to say it. But call it, the bottom feeder, we’re generic, meaning we are raw material to manufacture, manufacture to DC. We are not in the partial courier or last mile business. So essentially, if we’re taking the products from the manufacturer or distributor to the retailer’s DC, that’s kind of where our formula ends. And then we let the last mile people handle that level of specialty because that’s a whole different level of regionality and granularity that is — it’s a very different business, and it would require a whole different set of rules, different software, configurations and so on. So that’s just not really our business. So in a way, we’re also kind of — again, I mean, maybe wisdom is lucky, for lack of a better term. We kind of stuck to that. That was our finish line, was the DC. So if you’re ordering whatever, toilet paper, let’s keep picking on toilet paper. If you’re ordering toilet paper online from your favorite retailer, we brought it to their DC but beyond that, you’re getting it from whatever channels you’re getting it through your retail — your last mile. So…

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Unidentified Analyst, [29]

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So the same blocking and tackling, you’ve always done really?

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Theodor Daniel, Titanium Transportation Group Inc. – President, CEO & Director [30]

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Pretty much, yes. Exactly. You got it.

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Unidentified Analyst, [31]

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Very good comp. I’m just going to switch gears here. And so — I’ll start by making a comment. I actually just calculated that you may not realize it in this magnitude but — well, you probably do, but you’ve generated almost half your current market cap and free cash flow in the last 12 months, which is wow, commendable. I think it came to 46%, 47%. Your share price, quoting price yesterday, something like that. Well, that’s clearly impossible in the current environment. But I’m guessing that you have some level of cash flow. So this is what I’m trying to understand. The cash flow at Titanium in this new normal. And if I just break it into operating cash flow and CapEx, we’ve had some questions about CapEx. So I’m getting a bit of a sense of that. But if you look at Q1, January and February were strong. Things dropped off in March for you. I’m expecting April was similar, perhaps worse, perhaps not. But just thinking about March and April as a gauge, can you give us any sense of your operating cash flow in that depressed environment? I mean, is it sort of breakeven? Or how should we think about that?

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Kit Fu Chun, Titanium Transportation Group Inc. – CFO [32]

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So our cash flow is still pretty good. So far, our collections is largely unaffected by the COVID-19. And our business is running. Obviously, it’s running at a little bit of a reduced capacity. So we do expect that we should be cash flow positive. Is it going to be at the same level as we have in the previous quarters? My first answer is probably not. But if June or even late May economy starts to come back, we may see a bump in our demand and maybe we will cover some of that cash flow. But overall, we should be able to keep running the business on a cash flow positive basis as long as we can keep the current volumes even.

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Unidentified Analyst, [33]

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Okay. Great. That’s awesome. So positive cash flow to what extent?

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Theodor Daniel, Titanium Transportation Group Inc. – President, CEO & Director [34]

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Yes. And I think you mentioned the CapEx implication of cash flow as well. So just to give you a perspective, even if we had to buy 100 trucks next year, that’s about a $17.5 million investment. From a cash flow perspective, that’s — so think of those as 6-year assets, but we would pay that off in about 3/4 from a cash flow perspective.

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Unidentified Analyst, [35]

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Okay. Pay back.

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Theodor Daniel, Titanium Transportation Group Inc. – President, CEO & Director [36]

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Right. Yes, yes, exactly.

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Unidentified Analyst, [37]

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So it’s pretty good pay back there.

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Theodor Daniel, Titanium Transportation Group Inc. – President, CEO & Director [38]

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Yes. I know. Well, we want ROA, right?

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Kit Fu Chun, Titanium Transportation Group Inc. – CFO [39]

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And we want to generate that path.

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Theodor Daniel, Titanium Transportation Group Inc. – President, CEO & Director [40]

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Exactly.

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Unidentified Analyst, [41]

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So I mean, I completely understand the lack of visibility and the need to be prudent with cash. And I understand that buying back shares is not a high capital priority at the time at the moment. I think it’s a right decision. That said, you’ve got your positive cash flow, your leverage, as I calculated, as debt-to-EBITDA of 1.3x or in that neighborhood. I think Alex said around $37 million of undrawn credit plus another couple of million of cash. And I think we’d all agree that the ROI on volume — your stock back today is over an economic cycle, it’s ridiculous. So I guess, really my question is what would sort of be the milestones you would think about to resume buying back your shares and perhaps even aggressively given the current level? What is that you’re looking to see to kind of — you don’t need to be this conservative anymore.

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Theodor Daniel, Titanium Transportation Group Inc. – President, CEO & Director [42]

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Yes. I think that I just want to see the economy — I want to see a little bit of a glimmer of positivity. We want to see, is it going to take another month, 2 months, 3 months. I think we’re just being kind of a little — maybe a little overly cautious. But we want to see that things are at least starting to turn a corner. Our goal is to maintain sustainability, obviously. So yes, you’re right. On a short-term basis, we’re being maybe a little overly cautious with our cash. But I guess that’s just being prudent from our point of view and, to some degree, a capital-intensive business, right? And then the other thing is this, that we believe that given the — I mean, given the economic challenges, right? There are going to be some — unfortunately, there’s going to be some trucking companies that I think are going to be struggling. So we want to have potentially cash for M&A. And again, we’re looking for companies that didn’t expect this, and again, no fault of anyone’s. We’re looking for good companies, good people that want to become a part of our kind of more technologically advanced organization. And then together, we can, again, further turn a company into an even greater company. So from that point of view, we’re trying to sort of keep the cash in, at least on a short-term basis for now, flexible, right? Just as long as we haven’t spent it, we still have a lot of choices. And I think choice right now is kind of important. On a medium, long-term basis, obviously, you’re right. If our stock price doesn’t go up, we’re going to become a lot more aggressive on the NCIB. That’s for sure, because you’re right, the prices — right now, we’re on sale. So we’ve got falling prices.

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Unidentified Analyst, [43]

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In the last 12 months not even a peak environment, I would say, a reasonable environment, you’ve generated half your market cap and free cash flow. So yes. But I understand, rule number one, don’t run out of cash. I think that’s the right thing to do. And I think you will get some distressed opportunities on the M&A front. Just to follow-on, though, Ted, you said you want to see a month or 2 sort of uptick, if you will. Would you hold back even then in the event of getting back to the letters of the alphabet, in the event that it’s maybe W more than a V or would you just want — would you want to see a quarter? Or would — is it a month or 2 sort of where you start to really say, okay, this is a trend line?

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Theodor Daniel, Titanium Transportation Group Inc. – President, CEO & Director [44]

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Yes. I think — Yes, you’re right. And you’re talking more or less the same time frames that I’ve got in mind. I’m not planning on waiting 6 months, but if we’re going to — if it’s going to be W, again, we’re going to be cautiously optimistic. So we’ll balance it. If we see that things are kind of headed in the right direction, we’ll start to take the NCIB out of first gear right now because it still exists. It’s just kind of low. Yes. And then maybe we’ll put it in the second gear. I mean, I might not go into 5th or 6th right away, right? So kind of your — maybe a month is a little light, maybe 3 months might be too long. Yes, somewhere in that, kind of, 2-month range, 1 to 2 we’re start seeing a bit of a trend, right?

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Unidentified Analyst, [45]

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Got it. And just remind me if you would. Maybe Alex, so 5% NCIB. Is that right?

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Kit Fu Chun, Titanium Transportation Group Inc. – CFO [46]

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Sorry, could you…

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Theodor Daniel, Titanium Transportation Group Inc. – President, CEO & Director [47]

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5%.

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Unidentified Analyst, [48]

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Sorry 5%. Is it 5% of the (inaudible) on the buyback or…

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Kit Fu Chun, Titanium Transportation Group Inc. – CFO [49]

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I believe so. Give me a second.

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Theodor Daniel, Titanium Transportation Group Inc. – President, CEO & Director [50]

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From what I recall, the original, we’re going to verify that.

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Kit Fu Chun, Titanium Transportation Group Inc. – CFO [51]

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We’re actually renewing it since it does expire in…

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Theodor Daniel, Titanium Transportation Group Inc. – President, CEO & Director [52]

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This week.

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Kit Fu Chun, Titanium Transportation Group Inc. – CFO [53]

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A couple of days. I believe actually expires for the weekend. So we are buying about 5%, yes.

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Unidentified Analyst, [54]

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Got it. And the Board will potentially renew it at your meeting. Okay.

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Theodor Daniel, Titanium Transportation Group Inc. – President, CEO & Director [55]

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Yes. Our broad is supportive of this strategy.

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Operator [56]

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(Operator Instructions)

I have no further questions at this time. I will turn the call back over to the presenters for closing remarks.

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Theodor Daniel, Titanium Transportation Group Inc. – President, CEO & Director [57]

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Thank you, operator. Regardless of the economic climate we operate in, I have no doubt that with our strong team, Titanium will continue to grow and succeed. Thank you, everyone, for joining our call this morning. We appreciate your interest in Titanium. Stay safe and stay healthy. Thank you.

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Operator [58]

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Thank you, everyone. This will conclude today’s conference call. You may now disconnect.