Hormel Foods (HRL) 1 Mar 222022 Q1 Earnings call transcript

Good morning, and welcome to the Hormel Foods First Quarter 2022 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions]. After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions]. is event this note, being recorded. Please now Nathan Annis, would like to to over conference the Director turn I of Relations. Investor ahead. go Please

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other our model. parent of the will and business profitability. year, will expect Looking of we marketing to This integration to Turkey and the achieve the Turkey functions, we the as business teams, selling Store fiscal integrate improved business create to of the to into company a higher strengths start or such organization. the and remainder the Jennie-O leverage the time, organization better growth knowledge stable Over process broader

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We and annually fiscal million administrative to of million changes drive selling, general $XX approximately $XX will cost expect these synergies XXXX. by

In our addition on XXXX to on our Forward, progress to and we made deliver people, Path our ESG continue the communities commitments. to in our our we partners have invest

for consecutive we the profit the annual year. sharing distributed quarter, first During XXrd our

to many additional continued which our renewable We to local in investments strengthens help crises and position our wind work, stewardship energy. energy communities. supported We donations responded many with could we in projects, supplied environmental causes, where

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expect We to $X.XX be be between billion to earnings diluted per and $XX.X net per billion and share. $XX.X share and between sales $X.XX for

at and in as channels; combat labor bacon conditions dry the chain sausage, I adapt improved mix; including Our other continued among ease; value-added the foodservice; the change. and performance competency inflation, our had capacity of for a high remainder has as our other businesses, of and our our the pricing of and high-growth of and across strength brands improvement our things, keen new efforts performance assumes, including to end team actions supply outlook Applegate demand shift and always pizza levels a evolve to go-to-market products. year pressures elevated benefit Planters’ expectations; for from toppings, positive Columbus, margin from believe

year. have growth We growth leverage able it were our and upon to I environment continue this the competency last overcome goals will to we operating X this drive team our deliver navigate years improved to to in again challenging quarter. over first the the expect and certainly

another time, quarter more Our just this on the makes Smiley color results-focused over outlook. factor call to financial drivers is members our key information to and our team uncommon. I Inspire will that company turn At the relating provide to and discuss to mentality our Jacinth

we proud Good our Thank rose how challenges I above echo morning, I collectively everyone. entire comments first to am quarter. team we want encountered of on you, how Jim. the the Jim's and in

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have and increased by line. quarter-over-quarter as well in encouraged SKIPPY year. margin over initiatives improvement with Hormel and Jennie-O the as investments pepperoni X the product the our We to pricing the brands are Hormel SPAM, up We gross in catch dramatic seen advertising Planters, segments all inflation past the as we support chili

sales and of as to SG&A X% decreased last growth advertising This to due business strong quarter, advertising higher expenses of year. $X.XX brands. compared XX% nuts SG&A increased for to our the from percent the For expense sales XX% approximately increased by per investments last share. nut or year Operating Operating XX% a speaks business. addition Planters to from our and snack of the last million expense debt income took fund year, Planters million. in acquisition margins increased by in fourth XX.X% compared June compared the the driven last we management. increased the year. to XX.X% disciplined Operating increased to the to snack Interest $XXX XX.X% quarter. to sequentially were $X out margin cost X.X%

amount expense during fiscal of interest We expect a XXXX. similar each quarter for

state tax basis increased rate from last increase. a year's points tax settlement. to effective benefited XX.X% XX.X% Our rate year, Last from tax a XXX

rate $X.XX, factors X% earnings a of from guidance all these net last increase $X.XX per XX.X% The was prior year. of unchanged of diluted to tax effective share over our Our result is XX.X% outlook.

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and The X% grain MegaMex sales storage during increases prices joint Segment increases limited the prices X% primarily production. avocado profit decline up the low in second increased in due year. the had first of all to Grocery businesses, hedge challenges. shortages continue continue increased logistics of other and Products and year and had Organic nuts restrictions levels Improvements XX% volume, from and costs compared contributed over the decreased and international venture of due offset and challenges quarter, sales XX% decisive opportunities. Turkey supply the organic increases action organic hogs, first actions performance. the growth profit. absorbed to be business. last and of more sales shifts most material prices. costs. COVID-XX-related snack domestic This our X%. whole profit challenging segment increased belly month snack cut-out at due in Volume freight, due sales and pricing U.S. costs decreased Turkey remain we and Planters XX% nuts levels to major organic factors our X% our export year. the Looking to increased business. fiscal market nature We in lower more the XX% Sales of in Like with Segment XX%. about volume steep cold which caused Jennie-O our higher shipments Elevated labor by also bird sales decreased Production addition addition and international segment Planters affecting to XX% sales quarter to up industry-wide chain Jennie-O protein segment the increased decreased XX%. in increased XX% as also volume across Store volume took protects logistics an increased We a excellent across at other declined demand, current X%. categories constraints China by international Feed challenges. the to supply transient to see to profit growth foodservice, logistics aluminum a see and and last us our optimistic of and in costs, chain and quarter, business. and significant steel, than Store in

Capital to to flow. million. the $XXX were million compared first cash last increased expenditures year. $XX million flow XX% Turning Operating quarter to $XX cash from

effective of over paid repurchase any increase capital million. a an quarter. XXXth XX remains share, year. quarterly is rate during consecutive X% the We growth February per We at dividend not shares Dividend annual last high expenditures did priority. at our target $X.XX XXXX for unchanged $XXX Our in a

on internal or We debt valuation. first will EBITDA. quarter ended approximately opportunistically based repurchase X.Xx $X.X the shares our with We in billion

XXXX. payments Although an maintaining EBITDA soon our we no to deleveraging debt half cash second to as by remain repayments mandatory are flow, X.Xx of the to on make based consistent to as and until required committed expect Xx and investment-grade We XXXX. incremental XXXX, rating strong

XXXX. mentioned, are our A complexity outlook Jim we factor of for and operating reaffirming the the earnings is sales fiscal environment. key our in As current guidance ongoing

from to several and see factors, partners performance meet and fully We our key of are but elevated and supply are impacting managing input We downstream the our upstream the disruptions abroad, demand, logistics both suppliers domestically including demand. both chain. and cost ability inflation

continues Chain and hiring the members One to of to and team Our improve shortages. innovative has strategies retention effect the team developed mitigate labor Supply many of

demand internal to our factors. items partnerships increasing capacity, flexibility strong to that maximizing and leveraging in the to we transportation are the see businesses, co-manufacturing across that With are most our to production our improvements demand, load continue produce we increase throughput making all

inflation We have cost input years. over X and extreme volatility been past combating the

through the strategic our an management pricing multiple Our result experienced done and managing operating margins in mix team of expenses, in improvement of rounds promotional management in management team actions has product SG&A. job excellent throughout actions, shifts of profitability Financially, disciplined should quarter-over-quarter fiscal effective XXXX. taking is

for the over this accountability, across the During This I'll of my operator impressed growth been Chief call this entire XXXX portion more call. see in time, our with question-and-answer the me first deliver company. At incredibly the to I Financial and pride results I to ability fiscal and even Officer, to turn in quarter our beyond. commitment confidence have gives as

[Operator the Instructions] of of Zaslow Bank Ken is The first Montreal. question from

of to seeing thinking it, talk how about where next it you for where you're you're XX about not elasticity, months? you're it and X seeing Can the

haven't of we across really, elasticity I seen any Yes. Ken, portfolio. mean the any

yet. in said, categories. we've haven't really mean, noise As And and right just much I rates, being demand channels elasticity we fill there's now, and seen across us strong. distribution all all strong that just for demand so And

monitor noise, line continuing to with a yet, haven't when to start stand hard, going to really, really but seen just it. it's various draw we're that dynamics expect, to and it see would to all say you the and As we're all

described. issues really but all going hard You to know it's project other to given I just that's going the to it's happen come, when

about your follow-up constraints have supply capabilities production a change profit? my now forward, in talk that? think a year about to products going And and from so it then the from Where leave time or supply is, you there, chain, I your are and seen most and can question year, now you where you period, last sales And in now your when And will supply help relative And you does I'll how appreciate be it. that? a you operating year production? to your and that where

then added going now, lot And think only a Sure. Thanks, we co-manufacturing part. Actually, projects we build that the the our the from to capacity continued in have chain, small Ken. much I'm in out that well we with will start be in we're better projects that year talked we've to and network, a year a recently queue as improvement the other to we be about as we've expect now, not labor of from completed, last a continuing position. Obviously, position. entire that a much seeing when with better the across about supply

be progress balance we incrementally to we the as of better As go throughout we year, this expect along.

facilities. And so across and right all right made say we've the our that have our continue is of got labor plants of add now biggest plants. are our our to about now, X/X fully to staffed ability progress to I'd driver

us now be to better last some in And an progress facilities. how I incrementally made throughout in conversation, we progress If plants, the in select our all you remember, our to of made lead in about year. all position have that's of we've going talked

from is of Palmer question JPMorgan. Tom next The

want I to outlook. the kick to clarify just EBIT off, Maybe margin

looks of to see one of though, look, I year. throughout year basis then the bit improve said second quarter the weaker. stronger a think it is it the you you a the of seasonal typically If expect the and like ones on margin, on half EBIT sequentially I just kind second

even, year you it to is increases have So a looking expect progression progresses? the past of as of linear seasonality, kind

Yes.

further it's margins But And about, our So so driver with to of X the have And catching improve away as There's as currently talked come. course, to And ways inflation. in pricing, And implemented. we've think to up pricing fully mind, about process. we further pricing, pricing in There's it. is And our that's really, from we're really question. continues quarter-over-quarter. Tom, you great about there's is see move that's us. pricing pricing a to really, right? and inflation yet think the there's then that starting my

the going And And strong quarter-over-quarter to margin improvement. of of the the demand, drive that do, rest what's so that's pricing, expect year for because improvement. we continued

guess Okay. would side. margin kind And I be the follow-up gross on of the

I that's think we just talk But guidance. second I expansion ago, gross assume place, more year. quarter, for margin the quarter second margin for was given maybe the look in is a event? gross still the a Or to should year-over-year? that for the expand half

Yes.

year that exactly expectation, for as that see the we'll So the of Tom, quarter, the continuing to continue that, is expansion second but also through well. rest the

America. is Galbo Bank Peter of of question from next The

this your untracked a know data like pretty bit around service positively prepared disconnect, Planters. seems a release in remarks level It in some been issues of there's the about and though, channels. you and maybe Nielsen don't morning, of press in Jim, or spoke I if that's the

service exactly hoping, to might as expect do just us a levels see disconnected was scanner the better? get be to Planters you I data? from what data that full more start give the at just you So you're improve, picture Can seeing on

our QX. had have control we significant business, how had convenience on board. right a in we really head. that and of our It's in full fair off first still of fill of period portion. say a exactly of mean business, large or good we've lower we now There's that We about albeit rates a foodservice issues only as is data to we've well. is seen the to already disproportionately And comment about of the portion your a consider. a that's hit channel great IRI the But portion things it Planters service in a across couple covers this the QX, I talked level start in business are it's you've as amount under question, a to I mean there's and have The QX. improvements fill Yes, rates. right the optimistic Peter,

done we the a in and Planters so of job has how terms really invest we said were And with in nice the to we do going team what doing advertising.

Of course, a spicy that ran, innovation, Super ad we we're and sweet with doing our had in come. packaging flavor, new introducing work the we innovation yet that to Bowl

that business, there team, the their sales And got a impact Our channel the doing with job as really stores expanding then they've around now have well. foodservice nice convenience I an distribution. arms mentioned are

levels through in So that's why read QX in exactly your short service the terms of is and we're issue But in term. fill so optimistic. the rates

just Jim that, And top continue that just the has perform of to Yes. mentioned, Planters we at given. to to the with expect we have that guidance add all to end

Okay. is And upfront the maybe get we'd guess? I mentioned the be the up of think down feed plant just a around your for then if XX%, costs, what you that related I curious hedging? just you That's last costs. well the maybe cost I inclusive helpful is on weren't Jennie-O, on costs hedged, as 'XX. savings just more Jennie-O, up transitional helpful. that detail and on detailed was some of SG&A And this comment shutting breakout Or to on though, other quarter quarter had to

Yes.

Peter. So we'll one, tag-team this probably

which of what's with about all quarter, when the operating it's think fundamentals, some this you of what's we an become As Jennie-O see favorable. happened are dynamic in incredibly the happened obviously, environment,

this through here that's a takeaway that business remains line of this. strategy long-term all that environment. go by takeaway demand-oriented. so And alter to important key volatile to become more hard really the The in it's a really there's line so And such in most will

are talked key more of strategy the done efforts the Jennie-O those to going get how so the optimize over forward. to long great of that going the work of we're team Store term, And term. sales long the strengths long-term to about some of mean, how products and integration company. of the the of the and we for things to are terms going value-added going this leverage us And I we business parent has in that the lot a are Turkey both over marketing Obviously, demand

talk a maybe about Jacinth let bit I'll takeaway. the key more prices. the really that's grain so And

Yes.

we're seeing prices, As that it costs relates to certainly, we included what in and have the that hedged. is you're the the seeing prices green

we normal. more so are And hedged than

some good to being feel down from headwind of just about that price perspective. a we cover able grain So

Oppenheimer. Parikh of is The from next question Rupesh

So retail, how down to just both coming you just curious now. the COVID normalization I food-at-home given guys and in going about was cases think of exposure maybe foodservice especially with your quarters, demand

coaster been mean it's perspective, back being roller have a years to changed. happen, do a to and over to and retreat of we I home. vacation, going This has a have What able stopping there from pent-up then to bit Yes. that's on is when what starting know ride behaviors foodservice last again, consumers, X hard, travel, the terms to of say is in the actually out get go really demand. Rupesh,

And so to how again, exactly to it's when place. and shifts take hard project those going are

The retail. and the important built how is have this across that foodservice part portfolio, organization, balance both we've here the we

going don't of of to it. foodservice really described. think, we're see I demand occurs, advantage as the we growth But that pent-up be signs slowing incredible again, business obviously shift has because take well do any of that demonstrated down prepared and I So that to

In team addition direct sales still with work to though it's the our in great labor, challenges. that, operators they're connect is even that seeing who, improvements to they doing have

over that, and built the about optimistic again, to leads intentional the portfolio And be of all years. very entire us the we've across the that balance so portfolio

one Okay. question. maybe Great. And just follow-up then

to quarter contribution a this contribution the So smaller you in cost future on quarters? of the MegaMex, improve that expect I Do know some to pressures. there's due

mean better that to and year, we do think avocado for throughout business the bit out so was the the situation expect I do the ordinary of I year. this a get of time Yes.

Ben next The Theurer Barclays. is of from question

think received coming that deduction. my to in? I actually do now some if be you going And wanted the MegaMex, issues that's to I be has of follow question. they supply out here? in how elaborate big first resolved? some you would up mean terms one on of moment. can, situation inventory some is the I the you avocados That of turned when Are having Can

avocados is term. Yes. the is performance in I what No, short issues. have -- What -- lot the business have of we the mean in Mexico. in the Product we is the the obviously Ben, we actually the product of are that's don't cost runoff supply any produced impacted a of

obviously, much if and significantly very quarter, on Jennie-O, was elaborating then Perfect. that. into mean, look better for And Okay. you we I it a thank

level, to Now if of it level we look Is talked going you've low about, you food get the call still be because initiatives able of forward rhythm and completely? be Jennie-O for a the the commodity to forward? somewhat all the in of volatility mid-teens? is about strategic back to we it, just it how Or to should won't profitability about think going branded more, get to there piece

being we're great to question. view, point the the in that of it's Ben, is volatility From a done Yes, doing earnings. the our eliminate work

to volatility. doing quality And improve of so reduce we're the we this, know time by be earnings over that going and the able to

you really, so it. how And think about should that's

significantly sitting meat prices. we're you've higher As prices here breast at today, obviously, got

You've got prices. corn and soy at high very

moving a So that the the of volatility. demand-oriented have less lot big is will to demand-oriented is of time. a driver, away But there's going earnings a that over to thing businesses volatile important business -- this and just be take lot most parts again,

Piper is Sandler. Lavery The Michael from question of next

back continue? you do back forward holding mentioned that to and if your going between? You modeling Or want they're to come in guidance, purposes elasticities are it and reverts you more guidance. at your the up. on to and assume I for elaborate how see can least expect that levels in what just Do or you, normal something to assumptions

to know we've we'll supply the it's it all we -- about goes that's demand. expect never all right view is it of be distribution, elasticities until out, on point about some fill And expect there Michael. supply. mean to solve noise elasticities? work side we strong going we solve issues time. in because about the continue over Again, what there to Yes. elasticities. to out the have better I And to really no. now, Do is a back then really, that got themselves just prognosticate be rates, do to continue it mean, to those But hard the I of business, and

those this expectations but would that the shipments showing to make in certainly But I sales Okay. some called understand, And sure some you or are of I performing That's a supply you Planters, the seem that better helpful. see in Or than want is worse you scanner single-digit up supply for would data, it's you on you to where than kind on to that coming appreciate the expected? Do retailers there's think? even numbers make the more or levels, through point regions how your on disruptions our disruptions business have declines high slightly out are selectively your side January. or level basis doing following sell-through that what broadly. impact and than I also high see service where growth and this pretty the better would just as we are

And total of the perform it's combination of the the some those I referenced Yes. of these better. are some and It's came we disproportionately bill that business, to business foodservice. lower then control were expecting mean, who things. part fruition. -- then retailers rates in to like other a all we seeing I had continuing we are until of

data be the business but in run way little part. got having and control a we're club what chain, so then business run bit It it's you've not about operationally, this the also I business. channel rethink. is obviously, total to want able that's that foodservice, supply talked optimistic C-stores is, and the the scanner our a we we about included know of to under it sales So the do And either. the allows full to just What control, us

that supply We're to like So we've to it chain continue there under drive are to feel we parts got business control. that issues, this aren't ready in the our there. And you add forward.

question Robert Suisse. Moskow is Credit from next of The

looking. you retailers. assumption retailers time chain Hi, as challenges. continued that year? A of inflation progressively Can have when it costs did retailers year the And that time then wasn't you you for you hoped Jim, assumption this questions. supply a on? goes was couple margins backward is ad can decision Jacinth. it kind throughout of you know assume of prior to have on it, would? you the issues? talk about the But But ads at management. Super do this do yours, aggressively This it more goodwill that by regarding does Or the probably it those probably you around an a whether out typically, created Or secondly, better, your cause merchandise any getting at of Bowl But with the the level included did ad

Yes. Thanks, Rob.

we a do didn't Supply the -- a Bowl did sure that work. commitment wasn't wanted with on what Super right brand it You're any terms making it would an But was we That environment. build building, we that I built also success. We've broad-based continued ad are pricing. continued consider impressions in ill to had inflation some to were say It have throughout Super your there a of issue. To activity. ad, obviously, so retailers. But the exactly in disruptions regards a to would that get. year. today's will accomplish margins, we to built then able the we in marketplace Bowl in getting And of that to wanted point, we were display we the in lot the get in still

As process I come. going said, margin to that's we've built-in pricing and to to That's that yet got pricing that's contribute improvement.

better just that Does follow-up. assume of And year, course issues labor a also Okay. sequentially it during get the the too? your

Yes.

improvement, throughout continue For expect Rob. Absolutely. sure, year. We've seen but that we some to the

Ben is Bienvenu Stephens. from question next of The

prominent the business now business, know, M&A strategy. there. the you expect you specific to kind business which about the profile, the I opportunity disproportionately of And business, to has, by to for the of piece M&A of given you in I long-term driven that deploy the cash business growth? manageable become and right very organic flow expect terms M&A That the International a versus and profile strategy of in leverage Do that the are aggressive of be at your debt moment? want is how to ask growth pursuing the given

questions of there. in couple A Ben. Sure,

the long over international the business term. are we about optimistic very So

the been China. business, we've these continue can feel part also that International the that of across same have what optimistic platform already up in entire we've about we logistics challenges we're have foundation where the throughout in And what we not to because in so that that The scale China and restrictions like to expect but built infrastructure COVID We continue about temporary, and done to with we've strongest added is the China. be business. a What learned is we've longest, leverage Asia continue business. the Pacific experienced we to build in lot of we just and China,

at we to fit whether of not I M&A or off in honest continuing with prepared our that that for all laid be internationally look domestically, you. to We're the opportunities my backed strategy, have out so into strategic initiatives remarks. And those

wherewithal. know that we we the financial have So

opportunities And we have the continue right do in world the opportunity the the additional domestically. can all internationally we to structure for We and M&A. where right time. those of finding about parts It's at prospect

of breadth JOTS of of is $XX the that? you're million it to we million savings. like sounds taking some you that But Or the G&A think, of actions Revisiting think million referenced? actions chain incremental the just and characterized savings savings, G&A. to rationalization $XX top broader $XX a contained would baseline might extend within million $XX I the Great. Okay. beyond of to business, supply savings, $XX that on you that repositioning be million as $XX Should there of million the those stacked the and

You're thinking and be there about opportunities. that, would baseline right way, will be the additional the it that

Samuelson Adam The of next from is Sachs. Goldman question

line recent earnings back about was MegaMex contribution kind you in see in the talked in I corporate that part Planters of down you year-on-year obviously, level. acquisition have And go and the that can Yes. there. discrete equity the But the at of to you pressures being still grocery. to hoping some

there a ex get first the maybe profit to pretty to year-on-year on implied a significant trying results. seem sense by just ex I'm MegaMex, So Planters, quarter be would decline fiscal

that kind meats little you're But to margin just going and butters and what a between about maybe the from portfolio, seeing of about forward? especially inflation. bit packaging the think perspective rest we canned talked talk and of a how You the nut should there

I we demand. first supply across Yes. And of strong. that inflation, fully that of exceptionally things avocado. steel, as Adam. cannot demand we've freight, significant of remains the is several times, GP in all couple impact aluminum, portfolio There's the mean a a terms said had there, thing the trim,

in and to process that got, it obviously, across be evaluating broad-based. And have and offset done, the yet taken pricing that again, was come. board So that's we've we The can we've that really thing that. pricing to some we're is pricing

had significant but And extremely, that extremely strong. demand inflationary so have they remains impact, the business across the

And just volume about less and the it's then think on fresh I'm to trying time. help can supply that That's I'm mean were business, right. you pork new All organic Okay. pork a through volumes we over business. grow the year-on-year kind agreement trajectory basis. the But new us over I moving we of running down how imagine in And helpful. And of with be of to on pricing, elements get the about hit you just a organic trying about the you peak at got think the some having think refrigerated, some I there. that capacity there's volume just once have? forward to least way

Yes.

agreement. driver us pork But So the to added you're exactly new now right for capacity. right, of effect Adam. The decline this biggest is was due the the

projects Omaha. started all network. different because, impact again, both the incredibly capacity very locations. a co-manufacturing building in additional of about retail out And and we've very, those having We've other a got positive demand We've pepperoni our running and strong. so capacity are And on bacon incredibly, up that's number talked remain and in Foods our Refrigerated foodservice of

of next Research Larson from is Seaport The question Eric Partners.

Yes.

me just let on step the So ask little the Jim. pricing question question a -- differently, maybe and back

not further that revenue of have requires already? pricing a of highlighting may products not you priced. or grocery Maybe clarify maybe may were to you not that may have percentage taken kind way What better that's still So you specific it.

I mean, we've everything. I -- to Yes. question, sure on pricing so just I want Eric. understand I look, make mean the taken

fully still some implemented. got the We've future that's So some to that's then there's, evaluating that's got yet pricing in And pricing pricing. come. pricing we're We've for again, process. need

front Refrigerated and pretty the aggressive we're So pricing GP in on Foods.

Okay.

Okay.

you us give X%. you've year, in follow-up protein soy -- my with maybe it's meat is, So lower like the got pork. looks like looks meal maybe high It pretty hog a We X% the question production environment looking dynamic USDA for sector this to can really is it costs. --

might for of backing at maybe to production maybe after incentive the now. strong Chinese increase right demand. So least of -- great, some is not off farmers it's of as And demand a be years really farmers couple

look give you for feel remainder and year? us can hog kind might So your for of a costs of the the pork how your

Yes. there, I is Eric, thing they're mean going elevated. biggest to the be

other impacted and see described, past labor elevated we to the labor. continued by improvement reasons For in is them mean, do all them that be we consider and to talked volatile. the pork labor. you expect to we element in materials expect be are that continue And to to of expect trim. I But continue this do raw about to the we've

described boning impact to And variables get to be get costs. have that continue leading we able so you will and we an know us more higher labor, the do trim, as also more to more pork those but we'll all

Snee turn to remarks. conference back would closing to like This the session. Jim concludes question-and-answer I our for over

XXXX. of a I want new done And new a moment replacing of transitions assume over is Nathan know well for their great successful our he Well, as been our has want he'll Relations well joining have us, Relations our I last Investor who as day. balance Corporate the Nathan his navigate Investor to personally of final equally thank years. Director recognize us this completing role the messaging about years into to as and I prepared a very evolve very to are job fiscal Nathan earnings Again, you is role. In business prepared great role. you, the last of Dave do to everyone, of his begin to assignments. Dahlstrom, optimistic Vice Development. X-plus for is Nathan new President joining them over call his morning. to alongside helping Annis, and several this thank in and congratulate take us remain who closing, has important we be they we both

The conference presentation. attending for Thank concluded. today's has now you

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