NACCO Industries (NYSE:NC) Q3 2026 Earnings Call

0:00 Thank you for standing by. My name is Tina and I will be your conference operator today. At this time, I would like to welcome everyone to the NACO Industries third quarter 2026 earning conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. To ask a question, press star then one on your touchtone phone. It is now my pleasure to turn the call over to Christina Kmetko, Investor Relations. Please go ahead. Good morning, everyone, and thank you for joining us for NACO's 2026 Third Quarter Earnings Call. I'm Christina Kmetko, and I'm responsible for Investor Relations at NACO. Joining me today are J.C. Butler, NACO's President and CEO, and Elizabeth Loveman, our Senior Vice President and Controller.

0:54 Yesterday, we released our third quarter results and filed our 10-Q with the SEC. Both documents are available on our website. During today's call, we will reference non-GAAP measures, which we believe provide additional insights into how we manage our business. Reconciliations to the most directly comparable GAAP measures are also available on our website. Before we begin, let me remind you that today's remarks include forward-looking statements. Actual results may differ materially from those indicated due to a variety of risks and Uncertainties, which are described in our earnings release, 10Q and other SEC flammings. We undertake no obligation to update these statements. Now I'll turn the call over to JC for his opening remarks.

1:41 JC. Thanks, Christy. And good morning, everyone. Our third quarter performance represents another quarter of solid progress across our businesses. Operating profit increased 37% to $9.3 million and consolidated EBITDA increased 63% year-over-year and 28% sequentially to $20.4 million. These results include $3.4 million in costs associated with the curtailment of certain solar development activities as expected and mentioned last quarter. Our reportable segments delivered strong results, each contributing over $7 million to our third quarter consolidated adjusted EVA doc.

2:26 Utility coal mining and contract mining generated substantial year-over-year operating profit gains, while minerals and royalties delivered comparable results. Newer contracts and investments made over the past several years are increasingly contributing to our results, demonstrating real progress in our value creation strategy. This is important because our strategy is centered on building a strong base of long-term earnings and cash flow. We are creating value by adding new long-term contracts and investments to the contributions from our established businesses and long-term customer relationships. As those newer contracts and investments ramp up, we expect them to contribute increasingly to earnings and cash flow. Turning to our individual businesses, Utility coal mining operating profit continued to improve.

3:18 As we've discussed in prior quarters, challenges at our customer's power plant have affected Mississippi lignite mining company's operations and resulted in delayed payments. I'm pleased to report that the customer's power plant operated more consistently during the third quarter, and I'm encouraged that we've seen improvement in collections of outstanding receivables. Payments are not yet fully current. but the situation has improved from last quarter. We continue to monitor plant performance closely since that directly affects customer liquidity. Looking ahead, we see potential for improved results in 2027 if the customer's power plant operates more consistently. At our unconsolidated coal operations, results remain stable, which is what we like to see. Beginning October 1st, the owner of Sabine Mining Company assumed responsibility for the final stages of reclamation activities, so we will no longer receive the reclamation fees that Sabine has earned in the past.

4:21 We currently expect higher earnings from Coteaux and Falkirk to largely offset the absence of Sabine-related earnings in 2027. Turning to contract mining. I continue to be very pleased with the progress the business is making to expand its business model and profitability. The Syringa remains our primary growth platform for mining, and we continue to see significant opportunity for growth. During the quarter, our new dragline services contract in Palm Beach County, Florida, continued to ramp up and contributed to the improved segment operating profit. This growth more than offset lower customer requirements in certain limestone operations.

5:06 We continue to monitor customer activity and broader construction market conditions closely. Looking beyond the quarter, we reached another important milestone in October when our contract mining team began operations at a limestone quarry in Arizona under a new dragline mining services contract that extends for more than a decade. This contract expands our geographic footprint and further adds to our portfolio of long-term agreements within contract mining. At Thacker Pass, our customer, Lithium Americas, is targeting mechanical completion of phase one of the lithium processing plant in late 2027, followed by ramp up to commercial production through 2028. As our Sawtooth mining team prepares for production of lithium-rich clay, we expect to invest approximately $16 million in mining equipment during 2027.

6:02 As a reminder, under our contract, the customer is obligated to reimburse us for these capital equipment investments over five years, beginning the year after investments are made. The Arizona and Lithium Americas contracts are great examples of how we are growing contact mining. We are taking capabilities we have developed over decades and applying them across different minerals, customers, and geographies under long-term agreements. Our success with that approach gives us confidence that contract mining can continue to be an important driver of earnings growth. At Minerals & Royalties, third quarter operating profit was comparable to last year. The current commodity environment is a good reminder that our results are influenced not only by commodity prices, but also by the mix of production across our portfolio.

6:53 While our recent investments have increased our oil exposure, Natural Gas is still a significant part of the portfolio. The strong results for our investment in Iger Resources offset the effect of lower natural gas production and pricing in the third quarter. We continue to manage this business with a long-term view. Our portfolio of mineral and royalty interests and our investment in Iger Resources provide multiple sources of earnings, and we remain focused on building the portfolio thoughtfully over time. At Mitigation Resources, we continue to build the business through expansion of our reclamation and restoration services and development of mitigation banks. Mitigation Resources now has 13 mitigation banking projects spread across several states.

7:42 These projects are expected to generate stream and wetland credits that can be sold over an extended period, generally 10 to 12 years, providing a long-term revenue stream. We've already realized credit sales from some of our earlier banks, with future sales occurring as the portfolio develops. We expect mitigation resources to generate a profit in the fourth quarter and in 2027. Results could vary from quarter to quarter because of permit and project timing, although we expect the business to become a more consistent contributor to NACO's results as the portfolio matures. Before turning the call over to Liz, I want to provide an update on solar. As we discussed last quarter, changing market conditions, regulatory developments, and project specific challenges caused us to reassess certain solar development investments.

8:36 We continue to evaluate strategic alternatives, including potential project sales, contract amendments, and other transactions. Our overriding objective is to minimize our exposure while advancing strategies to monetize these projects. During the third quarter, we incurred approximately $3.4 million in additional costs and may incur further costs associated with these projects in future years. However, the amount and timing of such costs will depend on ongoing discussions with counterparties on our efforts to transfer ownership of or otherwise monetize the projects. More broadly, this experience reinforces the importance of a disciplined investment approach focused on opportunities with clear strategic advantages, attractive potential returns, and strong long-term cash generation.

9:30 This approach has led us to actively pursue strategic alternatives for the solar projects with a focus on limiting future exposure and preserving value where possible. From a capital standpoint, We expect to invest up to $32 million during the remainder of 2026 and up to $56 million in 2027. Both amounts include our $20 million annual budget for minerals royalty growth investments. The 2027 estimate also includes the $16 million of sawtooth capital expenditures discussed earlier, with the remaining $20 million budgeted for ongoing operations and other business development opportunities.

10:15 Growth investments will only be made when opportunities meet our investment criteria. Overall, I am very encouraged by our year-to-date results. Our businesses are delivering strong performance, more recent contracts and investments are starting to deliver meaningful contributions, and we expect our recent investments to support improving earnings and stronger cash flows as they mature. With that, I'll turn the call over to Liz to walk through the financial results and outlook in more detail. Liz? Thank you, JC. Building on JC's operational discussion, I'll review our consolidated third quarter results and then provide some additional information on our segments outlook and liquidity. Overall, our third quarter operating results were very strong year over year.

11:02 Specifically, consolidated gross profit increased 18% to $11.8 million. and operating profit increased 37% to $9.3 million, even after recognizing the $3.4 million of solar curtailment costs. Consolidated adjusted EBITDA, which is one of our key metrics for evaluating the operating performance of our businesses, increased 63% year-over-year and 28% sequentially to $20.4 million. We also had some significant non-operating activity this quarter. We recognized a $4.5 million gain related to the settlement of an excess pension funding liability with Sabine Mining Company's former customer. This, combined with higher operating profit, led to income before income taxes of $12.5 million compared with $6 million last year.

11:53 We also had a substantial increase in our income tax expense year over year, primarily due to a change in our estimated annual effective income tax rate and the resulting year-to-date adjustment recognized in the third quarter. As a result, we reported net income of $10.9 million or $1.44 per diluted share compared with $13.3 million or $1.78 per diluted share last year. Turning to the segments, utility coal mining operating profit increased to $6.6 million from $5 million in the prior year quarter, while segment adjusted EBITDA increased to $8.9 million from $7.1 million. The improvement was the result of better contractual pricing and lower inventory impairment charges at Mississippi Lignite Mining Company.

12:40 For the 2026 full year, we continue to expect utility coal mining operating profit to improve over last year. Fourth quarter operating results are expected to be lower than the prior year period because an anticipated reduction in customer demand and higher diesel fuel costs at Mississippi Lignite Mining Company, along with lower contributions from the unconsolidated operations following the transition of Sabine's reclamation activities effective October 1st. Looking ahead to 2027, we expect overall coal demand to remain consistent with 2026 and profitability to improve. At Mississippi Lignite Mining Company, more consistent operation of the customer's power plant would support improved results. At the unconsolidated operations, higher anticipated results at Coteau and Falkirk are expected to largely offset the absence of Sabine reclamation income.

13:31 Moving to contract mining, operating profit increased to $4.9 million from $1.9 million last year, and segment-adjusted EBITDA increased to $7.6 million from $4.7 million. Revenues, excluding reimbursable costs, increased 75%, reflecting the continued ramp-up of the Palm Beach County Drag Line Services contract. Contributions from that contract more than offset lower customer requirements at our limestone mining operations. We expect substantial year-over-year growth in contract mining operating profit and segment-adjusted EBITDA in both the fourth quarter and full year 2026. We also anticipate continued operating profit growth in 2027, including a full year of contributions from the Palm Beach County and Arizona contracts.

14:18 In minerals and royalties, operating profit was $7.7 million and segment adjusted EBITDA was $8.7 million, both generally comparable with the prior year quarter. Higher earnings from our IGER investment largely offset lower royalty revenues, primarily from lower natural gas production and pricing. Looking ahead, minerals and royalties fourth quarter and full-year operating profit and segment-adjusted EBITDA are expected to be below the comparable 2025 periods, primarily because of lower anticipated royalty income, partly offset by higher expected income from Eiger resources. In 2027, we expect minerals and royalties to continue generating meaningful earnings and cash flow, although operating profit is expected to moderate from 2026 levels.

15:03 At the consolidated level, our performance through the first nine months has positioned us for a substantial year-over-year increase in full-year adjusted EBITDA. We currently expect full-year operating profit to be comparable with 2025, even with approximately $15 million of solar-related impairment and curtailment costs recognized through the first three quarters. Income-before-income taxes and net income are also expected to increase year-over-year. For fourth quarter 2026, we expect net income to increase year-over-year primarily because the pension settlement charge reported in the fourth quarter of 2025 will not repeat. Consolidated operating profit and adjusted EBITDA could be lower than the prior year quarter depending on the timing of additional solar project curtailment costs. We expect meaningful year-over-year improvements in operating profit, net income, and consolidated EBITDA in 2027.

15:53 Continued expansion in contract mining and mitigation resources, along with improved operating performance across our other businesses, is expected to contribute to this growth. Turning to liquidity, we ended the quarter with $124.8 million of debt and total liquidity of $115.2 million, consisting of $56.5 million of cash and $58.7 million of availability under our revolving credit facility. We expect cash generated from operations to increase moderately in 2026. Because of our planned investment activity, cash flow before financing is still projected to be a use of cash for the year, although we expect that to improve modestly from 2025. In 2027, cash flow before financing is projected to improve as recent investments contribute to earnings.

16:43 With that, I'll turn the call back to JC for some closing remarks. Thanks Liz. Overall, I believe our third quarter performance provides strong evidence of the progress we are making across NACO. Our established businesses generated solid results. Contract mining continues to build momentum as newer contracts ramp up, and we are beginning to see the benefits of new contracts signed and new investments made over the past several years. We believe the contributions of our established businesses and the expected contributions of our growing portfolio of long-term contracts and newer investments provide a strong foundation for continued earnings and cash flow growth. As these investments mature, we expect meaningful improvements in operating profit, net income, and consolidated EBITDA in 2027. We remain focused on execution, improving liquidity, reducing debt over time, and investing selectively in opportunities that can generate attractive long-term returns.

17:46 Our objective remains straightforward. Build a strong, durable portfolio of businesses that generate increasing cash flow and create long-term value for our shareholders. I think our third quarter results show that we are delivering on those goals. We'll now turn to any questions you may have. At this time, I would like to remind everyone, in order to ask a question, simply press star, then 1 on your touchtone phone. Again, that is star one to ask a question. And we'll pause for just a moment to compile the Q&A roster. And our first question comes from the line of Douglas Weiss with DSW Investment. Please go ahead.

18:33 Hey, good morning. Good morning. On the coal segment, Are you able to say or give some sense of how large the Sabine contract was and so how much you lose when that goes off? So, you know, when we were still mining, actively mining, it was a decent contributor to earnings as it went into reclamation, which we've now been doing for two or three years. It has been a much reduced amount. That's sort of the way our contracts work. When you're operating the mine, it's a higher fee. And when you get into reclamation in our management fee contracts, it goes to a smaller, more modest fee. So as we said, we expect growth at Falkirk and Coteau to offset any decline we get from The loss of the reclamation fees that we were getting in Sabine.

19:42 Right. Okay. And what drives the growth at Cattell and Falkirk at the present time? Well, I mean, it's a combination. So the way those contracts work, right, it's a combination of volume and fee. and the fees generally increase with you know CPI, PPI inflators and we're also looking at you know increased deliveries at those operations and you know as you've watched us for a long time you know that annual delivery schedules particularly at the larger management fee mines are largely The biggest effect in there is do they plan a big outage in a given year or not?

20:30 And 2027 is a year when we're expecting pretty strong deliveries at both of those operations. Okay, because they're not planning a big outage. Can you say that again? You said the biggest factor. Yeah, okay. Okay, and then on diesel, is diesel a net neutral over time as your pricing contract at MLMC incorporates those costs, or does it remain a net headwind, or does it even become a tailwind? Yeah, so I missed the first part.

21:16 How does diesel affect MLMC? Oh, diesel, yeah. Is it net neutral? Yeah. You know, it's a combination of it's really based on electron demand in TV from TVA. So there is some seasonality. But, you know, across the United States, as we've seen increasing demand for electrons, regardless of the season, it's no longer just driven by heating and cooling needs being the swing. You know, I think we're seeing smaller effects of seasonality in demand for electrons, which ultimately translates into what do we think TVA will be looking for from this power plant with respect to dispatch.

22:09 Right. And then to diesel specifically, because you mentioned that was a bit of a headwind, but I know that that figures into your reimbursement payments. Is there a time lag there? Do you sort of catch up once the formula picks up those higher diesel prices? So diesel impacts our expenses right away, but it goes into the calculation of our sales price. over a different time period. So there is a mismatch between when diesel impacts the sales price versus when it impacts our actual expenses. Yeah, sorry, Doug. I thought you said seasonal, not diesel, obviously. Yeah, that's okay. Good to get even more background.

22:58 I have a question, kind of a big picture question on your SG&A. The people working on MLMC. Well, the people working on utility coal, are they also working on contract mining? Do you make somewhat of a qualitative assessment of how to assign that SG&A to the two segments, or are they totally different staff? It's a combination. There is a team of people that work in the office at the mine site. are at MLMC. And so they're obviously charged towards that business. We also have people in Dallas that provide some support services that gets built into the utility coal mining segment.

23:52 They also have SG&A expenses in contract mining as well. The other side of the story is we very much operate the company with a one team approach. And so if anybody needs help with anything, everybody's willing to jump in and help. And we've got a system for allocating costs for that. But we find that we can be more efficient and more effective if we're really using, leveraging all the talents we've got across the company in each of the businesses, as opposed to having people really siloed into any part of the business. Right.

24:39 In a scenario where MLMC didn't renew after 2032, how much flexibility would you have to reduce associated SG&A to reassign those people? In other words, how much How much of the SG&A is specific to NLMC and how much of it is going to be necessary for the unconsolidated operations? Yeah, so, you know, the folks that are at the, obviously, to work at the mine site, some of them would be needed during a reclamation period, but it would be, you know, it would reduce over time as the mine was reclaimed.

25:25 and eventually, you know, wouldn't be needed. The other people, you know, we now have a very diverse business. So if you look at people in Cleveland, people in Dallas, you know, we're supporting a whole collection of businesses. And as those businesses grow, I mean, they've grown a lot in the last 10 years. They're going to grow a lot more between now and 2032. You know, they will have plenty to do. But we do operate a pretty lean operation, so to the extent that we've got excess that isn't deployed somewhere, we will certainly address that. Yeah. Okay. On the solar operation, in terms of the costs you've called out, are those, is that just a write-off of previous investment.

26:22 Is that non-cash? You know, the impairment that we took in the second quarter was largely non-cash. The charges we took this quarter were a combination of both. I'm going to hand this over to Liz here in a second to get into the details of that. But, you know, at the end of the second quarter, we believe that the best Thank you. Thank you. You know, allow us to work on strategies where we limit our exposure.

27:24 We advance strategies that could monetize the projects as opposed to just straight up exit them and perhaps, you know, keep some passive upside in those. So as we've been going down that path, in some instances, that's led us to a decision to make some additional expenditures. So You know, that's how that's been evolving. I'd say it's a more dynamic situation now than it was at the end of the second quarter. We thought it was a pretty clear break, and we now see more opportunity there to improve on our situation through alternative paths forward. Liz? And the $3.4 million expense was specifically related to the termination of a power purchase agreement, PPA, that we had.

28:17 And so that was terminated in October of 2026. We have that amount recognized as an expense and a payable at the September 30th balance sheet date. And then subsequent to that, it increases our outstanding debt. So you'll see an additional $3.4 million, you know, on our revolving credit agreement in Q4. Okay. So you had a commitment to deliver that power. Is that the issue? And so now you have to make good on the absence of the power? We did have, because there was a power purchase agreement applied to one of these solar projects. Right. It was in our best interest to end the PPA.

29:05 Right. So the PPA has gone away. However, You know, there's still other aspects of that project that we think could be attractive to a potential buyer. Okay. Okay. And any thoughts on the timing of when you'll have clarity on the upside scenarios there? Well, I can tell you, we'd all love to know that, like, today. But to be honest, this is something that's going to play out over the coming quarters. Could extend a year or more, but we're trying to get these things buttoned up in as orderly as way as possible.

29:58 But we're not going to rush it. I mean, we've all watched companies over the years that decide they're going to exit something and they just blow it up and spend a whole bunch of money. And we tend to be more cautious and opportunistic than that. So, you know, the path we're down is how do we limit our exposure and try to get as much upside as we can. And our outlook that we provided under 26 and 27 includes our best estimate of how that plays out today. Yeah, good point. We've included our estimated cost in our outlook, in our forecast, which is reflected in our outlook. Okay, okay. But you haven't really figured in it. I mean, you probably don't want to say it, but is there any way to sort of give a range of what you think the upside opportunity is?

30:51 I would love to, but I don't think I should. You know, look, if we thought this was going to be Thank you for joining us. We dedicated a lot of time over the last week trying to figure out how to give our audience a number or a range, and we ultimately decided we can't.

31:49 Yeah, okay, fair enough. On the contract mining, I think your guidance implies somewhat of a step down in the fourth quarter, but you do have the Arizona work coming online. So is that conservatism or do you see a pretty more substantial seasonal step down in Florida? What's behind those numbers? So the background story, I mean, obviously we've got Palm Beach coming online. We right now have three drag lines operating there, two smaller ones and one larger one. These are the electric and tech drag lines.

32:35 We're bringing a fourth drag line on site that should be up and running in the next few months. And so we get into 2027, we're going to have that drag line running. And 2027 is going to have the benefit of all of our full year of operation in Arizona, which would be great. But the other part that's going on is there's some one-off that I really I can tell you they are one-off temporary things happening at various customer quarries, primarily in Florida. You know, most of our operations in Florida, so that's not surprising. You know, we've got a customer that's reducing inventory on site.

33:25 Once they get their inventory reduced to the level they want, obviously we'll be producing again to, you know, match production. And there's, you know, there's some one off things that are sort of slowing down production right now, which is not reflective of any overall macroeconomic changes. However, you know, there is a little bit of softness, particularly in Florida. Well, there's softness. I'll say we see it mostly in Florida because that's mostly where we operate. I think it's probably some uncertainty around the election. I think it's some interest rates. None of our customers are telling us that they see any major economic downturn happening.

34:18 Florida is still growing. It's not growing as fast as it was, but that's kind of what the – Thank you. Thank you. Okay, and I guess you didn't address the sequential growth in your most recent update.

35:10 Sequential from Q2 or from? No, so Q3 to Q4. In our outlook, we said we anticipate a substantial year-over-year, but we did not compare to Q3. That's correct. Yeah, okay. Let's see. So next year, I think you've mentioned the cash outlook is getting better. You've been generating, sorry, you've been allocating your free cash flow to investment. I'm just curious, the stock's pulled back quite a bit. I'm just curious how you think about capital allocation and share buybacks versus investment at this juncture, especially as you begin inflecting to more positive free cash flow.

36:03 Yeah. So if you, you know, I wish there was a line in the cash flow that was somewhere between cash flow from operations and cash flow before financing. You know, the growth investments, and, you know, it's one of the reasons we expanded our CapEx explanation. If you look at cash flow from operations, less capital that we're really committed to spend. And that would be the $16 million that's going to Sawtooth and, you know, sort of the maintenance cab back piece of 2027. We said maintenance plus growth was $20 million out of the $56 million total.

36:53 Part of that's maintenance. So, you know, we need to spend the $16 million. and Sawtooth, and we will spend that. We've got, you know, the other portion of that 20. So if you did cash flow from operations less, those two things, you know, we generate a lot of cash. It really then turns into what do you do after that. Obviously, you know, we've been paying a dividend since 1961, and we're going to continue to do so. We've stated our intentions to strengthen our balance sheet. I think that's a really important thing for us to do. And we're doing a lot of things that I think are going to help that over the course of next year.

37:44 So then, you know, you start to think about what's left, right? You've got share repurchases and you've got opportunities for growth. Both of those contribute to shareholder value. I think our primary focus as we've been growing the company is, you know, let's go after new business opportunities that really give us what we're looking for, long-term earnings growth, long-term cash flow growth with strong, stable customers. It's the, you know, it's the flywheel that really has built this business to where we are today. We want to continue doing that. So that's kind of how we think about that. I will say we're, you know, we're looking at ways that we can get more growth out of each dollar of investment in growth. Or how do we get, you know, how do we get the same growth with less investment?

38:42 So in other words, saying, how are we more capital efficient with our growth dollars? That's something that all all the leaders of our businesses are thinking about and looking at. And, you know, I think we've got some opportunities there. Right. And when you say you're taking some steps next year you think will be helpful to the balance sheet, are you indicating a focus on receivables or inventory? What are you referring to there? I mean, it's really just a whole range of things. I mean, it's all the stuff anybody would look at, right? It's some working capital. It's the capital intensity of each of our businesses.

39:31 How do we think about best? What should we have on our balance sheet? What should we not? How do we think about that? It's a study that we're in the middle of right now, so I don't I don't really want to provide much more color on it, but I think we've got some interesting opportunities ahead of us. Right, okay. Okay, last question is just I think in your slide deck you indicate that your book value understates Are you able to frame that in terms of what you think the market value is and what the timeline is for realizing that land value?

40:27 Well, the short answer is no. I'm not going to give you that, but I will tell you our logic. So when we identify an area to build a mitigation bank, you want to be in a high growth area because that's where there's going to be a lot of demand for real estate development. You know, people, Department of Transportation, building roads and expanding roads, people put building apartments, putting in shopping, putting in schools. It's all the sort of development that comes in a high growth area. So we want to buy a piece of land that's in the same watershed as the high growth area, but we need to buy it at a price that makes it economically attractive for us to develop a mitigation bank. So generally, we're finding a piece of property that's got an opportunistic price for us, an attractive price for us.

41:29 because we're going to go in and improve the streams, wetlands, if there are any, put a conservation easement on the part of the land that is relevant for that work. But then the rest of the land is available for sale. Actually, all the land is available for sale, but the land that's most attractive is that that doesn't have a conservation easement on it. So if you think about the fact that you've got growth and development coming in the direction of your mitigation bank and you bought it early and you bought it at a good price, the investment thesis there is the value of that land should go up possibly in a very meaningful way as development advances, as growth advances in that area.

42:23 So that's why we feel pretty strongly that we've got some underlying hidden value in the land that we've acquired for these mitigation banks. Right. Are you able to put any numbers in terms of acreage, anything that would help, you know, size the asset? We haven't. We haven't disclosed any of that yet, but Doug, it's an interesting question that we'll talk about because that's something we should think about. It's a good question. Okay, great. Thanks, as always, and congrats on another. Once I give you the interest, you're going to ask me for the price, too.

43:12 Maybe I can Google it. I can ask Chad to do it. Okay, thanks as always for the time and congrats on another good quarter. Yeah, thanks Doug for calling in. We appreciate your ongoing interest. And with no further questions in queue, I will hand the call back over to Christy for closing remarks. Okay, great. We'll conclude our Q&A session. And before we wrap up the call, I'd like to provide a few reminders. A replay of today's call will be available online later this morning. We'll also post a transcript on our website when it becomes available. And if you have any questions, please reach out to me.

43:58 My phone number is included in the earnings release. Thanks for joining us today. I hope you enjoy the rest of your day, and I'll turn it back to Tina to conclude the call. Thank you. Thank you again for joining us today. This does conclude today's Conference call. You may now disconnect.