Q2 2020 Earnings Call
Good day, ladies and gentlemen, thank you for standing by welcome to today's conference call to discuss the Lifevantages second fiscal quarter of 2020 financial results.
This time, all participants are in listen only mode.
Following the formal remarks, we will conduct a question and answer session.
Production will be provided at that time for you to queue up.
Hosting todays conference will be Scott van Winkle with RCR.
As a reminder, today's conference is being recorded.
Now I would like to turn the conference over to Mr. Van Winkle. Please go ahead Sir.
Thank you, Doug and good afternoon, and welcome to Lifevantage Corporation's conference call to discuss results for the second fiscal quarter 2020.
The call today from like management's prepared remarks are Darren Jensen, Chief Executive Officer, Steve <unk>, Chief Financial Officer by now everyone should have access to the earnings release, which went out this afternoon, approximately four or five P.M. Eastern John If you were not received the release. It is available on the Investor Relations portion of life Energy's website.
VW Dot Lifevantage dark on this call is being webcast a replay will be available on the company's website as well.
Before we begin we'd like to remind everyone that our prepared remarks contain forward looking statements and management may make additional forward looking statements in response to your questions. These statements do not guarantee future performance and therefore undue reliance should not be placed upon these statements are based on current expectations of the company's management and involve inherent risks and.
Certainties, including those identified the risk factor section of Lifevantages. Most recently filed forms 10-Q and 10 can.
Please note that during today's call, we will discuss non-GAAP financial measures, including resulting in adjusted basis management believes these financial measures can facilitate a more complete analysis and greater transparency into lifevantages ongoing results of operations, particularly when comparing underlying operating results from period to period.
We've included a reconciliation of these non-GAAP measures with today's release. This call also contains time sensitive information that is accurate only as of the data based like broadcast January 28 2020.
Like vintage assumes no obligation to update any forward looking projections that maybe made in today's release or call now I will turn the call over to the company's CEO Darren Jensen.
He scotts and good afternoon, everyone.
It's my pleasure to discuss our second quarter fiscal 2020 results with you today.
We're very pleased with our second quarter growth and profit performance are on track with our 2020 guidance for both revenue and adjusted EBITDA and art, increasing our fiscal 2020 guidance for adjusted earnings per share, which Steve will discuss any in a moment.
Second quarter growth was driven by gains in both the Americas, and our Asia Pacific in Europe regions.
In the Americas, our lunch a protein and an any de synergizer in the United States in Canada, along with the continued execution of our strategic initiatives, where the key contributors to growth.
As we discussed last quarter, we have put considerable emphasis preparation and focus on our lunch at protandim any de Synergizer and the results of our efforts are apparent in both our financial results for the second quarter and the trends were seen in the brand.
Our customers have responded positively to the expansion of our flagship brand and we believe we have assembled an unparalleled lineup of pro tandem product solutions.
You'll recall that Protandim any de Synergizer is the first edition to our flagship protein and in line since 2016 and in combination with protein and an NRF, one and NRF too we have developed a powerful combination of nutrigenomics products that have demonstrated significant synergy and.
Further solidifying Lifevantages leadership with science based efficacious products, each designed to support our bio hacking culture.
Let me begin with a quick overview of our second quarter and then discuss our recent launch in business activities in greater detail.
Our year over year revenue increased approximately 5% during the second quarter compared to our previous record quarterly sales results in the second quarter of last year, where we launched our very successful hair care offering.
Further on a sequential basis.
Second quarter revenue increased 9% over the first quarter of 2020, the pro tandem and 80 and try Synergizer bundle watches were the primary driver of the growth in the Americas and we saw strong growth in the Asia Pacific region. As a result of our strategic initiatives, which included the launch a New Zealand.
And continued growth in Japan, we also generated 82% year over year growth in adjusted EBITDA, and a 138% year over year increase in adjusted earnings per share. The latter partially benefiting from a favorable tax rate. We're proud of not only our ability to continues to drive.
The new growth, but also margin expansion and significant cash flow that is further allowed us to reduce debt and execute share repurchases to drive increased shareholder value.
Revenue growth reflected 4% year over year growth in the Americas, an 8% growth in Asia Pacific in Europe , including 5% growth in Japan, We're quite pleased with this broad based growth, particularly given that the launch of protein and an energy Synergizer was limited to the U.S. market.
Along with not for resell availability in Canada during the quarter over the coming quarters, we plan to introduce Protandim any de Synergizer and our try synergizer bundle in additional markets. We've begun the process of product registrations localization where needed another necessary approvals.
Crossed or international markets, and we'll provide updates on the timing of future launches.
Our significant efforts earlier in the year ahead of our pro tandem any de launch we're focused on distributor training and clinical research to set the stage for the successful launch we worked closely with our field leaders in preparation, including teasing the product at our July Elite Academy in Kansas City, providing training and product you are still.
Field leaders, so they could test it and build personal experience of head to head a formal launch in October as a result, our field leadership was better prepared to educate our broader consumer base at lunch, which drove a strong initial response and built early momentum.
As I noted we also focused on completing clinical studies building marketing materials presentations and promotional campaigns to drive consumer demand. Each of these efforts contributed to our successful launch.
Protandim any de Synergizer has been specifically formulated to target the nicotinamide I'd add named I need to the tide molecule more commonly known as any D.
By increasing any de levels. We also now we are positively affecting any dependent pathways, specifically activating a family of proteins calls or two is sure to an activity, which declines as we age has been linked to a host of health benefits, including supporting healthy longevity improved mental focus in constant.
Attrition positive mood and motivation boosting mental and physical energy supporting a healthy inflammatory response and supporting a healthy cardiovascular system.
We also know protein and in any de Synergizer as more effective than the competition. Our studies have shown that it can significantly increase both in a de levels answer to an activity at exponentially higher rates than that of others in the marketplace and do it much more quickly further our studies show significant synergies when protandim.
Any de Synergizer is combined with our protein and an NRF, one and entering two synergizes to further improve outcomes as a result of the synergy and the since sorial effects of Protandim any de Synergizer, we've seen a measurable increase across the entire pro tandem line of products.
The interest has materialized into strong sales of our protein Adam Trice, Synergizer bundle, which combines all three protein and products.
We're now focused on converting this initial demand into increase subscription orders for this bundle as well as our more recently introduced try synergizer packet for ease of daily use in sampling.
In future quarters, we expect this offering to be an increasingly important contributor to our initiative to drive overall subscriptions increased average order size improve our bio hacking positioning while driving consumer demand and retention.
In addition to the successful protein Adam any de Synergizer launch in the United States, We continue to make steady progress on each of our 2020 initiatives during the quarter, including the launch a New Zealand and the recent announcement of the introduction of free shipping we formerly lot we formally launched our free shipping program.
To further support our subscription model free shipping is now available to our subscription consumers and nonsubscription consumers, who have orders over a minimum amount, we expect free shipping to drive both increased loyalty and higher average basket sizes.
Variations of our free shipping program have been introduced into many of our international markets.
Further we have now begun our pre launch for the introduction in training of our new consumer friendly protein and entering two tablets size in Japan. This new easier to use product size directly reflects local market feedback and is tailored to deliver increased consumer acceptance of the protein Adam.
Offering.
Our initiatives to attract and create bio hacking influencers continued to progress including support for our Red carpet program further expanding our geographic footprint during mid calendar year 2020, driving further growth in synergy in our greater China region refining the cadence involved.
Some of our of our distributor events and introducing a new series of meetings for Influencers.
We have already begun to execute the new event cadence and we'll continue to drive red carpet sales as the year progresses, We launched New Zealand in November and we're encouraged with the strong initial response, we are pleased today to announce that our planned new market launch in Asia. Later this calendar year will be.
Singapore.
She is a strategically located market that will play a role in supporting additional expansion in southeast Asia.
We also continued to plan to further simplify business building with a goal of making it is easy to build at Lifevantage as it is to call maneuver. This includes a plan to introduce daily pay into our compensation plan, which is expected to rollout rollout later this fiscal year.
Updating and enhancing our international compensation plan to further focus it on driving customer demand and driving further penetration of the Lifevantage app.
Finally, we will continue to focus on building and enhancing our foundation for future growth, including new programs to to develop internal talent Enhancers cyber security and upgrade our customer facing systems to improve convenience remove friction and improve efficiencies each of the.
Each of which were progress during the second quarter to close we're pleased with our second quarter performance in both sales and earnings have built new product excitement for the remainder of fiscal 2020, and we'll continue to execute on each of our strategic initiatives.
With that let me turn it over to Steve to run through the financial results, Steve. Thank you Darren and good afternoon, everyone.
I am pleased to report our second quarter results, we generated a record quarter of positive year over year revenue growth, while continuing our improvements in profitability.
We are excited with the trajectory we have obtained through the first half of fiscal year in our and are on track to meet.
Our revenue and EBITDA guidance, and now anticipate higher adjusted earnings per share.
Please note that I will be discussing our non-GAAP adjusted results.
You may refer to the GAAP to non-GAAP reconciliation in today's press release for additional details.
Second quarter revenue was $61.2 million, representing a 5.3% increase year over year revenue in the Americas increased 4.3% to 44.3 million, while revenue in Asia Pacific and Europe increased 7.8% to $17 million.
All year over year or growth in the Asia Pacific and Europe region reflected continued robust performance in Asia Pacific.
Including significant gains in Australia, and New Zealand, including a face very favorable reception to the introduction of our business opportunity and New Zealand during the quarter.
Well, a strong 4.7% growth in Japan.
The growth in the Americas reflected the launch of proteins, NTD, Synergizer and pretend and the Senate Trice, Energizer bundle, which drove considerable growth across the brand.
Gross margin was 83.3% compared to 83.2% in the prior year period. The modest increase in gross margin was driven by lower inventory obsolescence and handling costs as well as changes to our geographic and product sales mix.
Gross margin inline with our long term targets.
Commissions and incentive expenses as a percent of revenue decreased 70 basis points year over year to 47.7%.
The year over year decrease is due to the timing of accruals for incentive and promotional programs as well as the current quarter level of activity in our Red carpet program.
Just as a reminder, the commissions and incentive expense rate will fluctuate quarter to quarter based on the timing and magnitude of promotions incentive programs as well as the inherent fluctuation in red carpet expenditures.
We continue to target commissions and.
Incentive expenses to be around 40% fairly consistent with our second quarter performance.
Adjusted SGN name as a percent of revenue was 29.3% compared to 32.8% in the prior year period.
The decrease in adjusted EPS Gionee expense as a percent of revenue primarily reflects decreased event expenses when compared to the prior year period, which included our October 2018 Global Convention.
As well as decreases in employee compensated compensation related expenses.
These decreases were partially offset by increased depreciation expense associated with our investment a new technology that has been placed in service and increased payment processing fees related to our geographic revenue mix.
Adjusted operating income was $3.9 million or 6.3% of revenue compared to 1.1 million or 1.9% of revenue in the prior year period.
Adjusted net income increased 139% to $4.6 million or 31 cents per fully diluted share up from 1.9 million or 13 cents per fully diluted share in the prior year.
As you will note from our income statement, our second quarter adjusted EPS reflected a tax benefit during the quarter related to beneficial tax deductions versus burst book expense for prior stock awards that vested during the quarter.
These testing events are treated as discrete items in our accounted for fully within the period that they occur rather than adjusting for the differences on an anticipated annualized basis.
As a result of the lower than expected tax rate during the first half of fiscal 2020, we now expect our full year tax rate to be approximately 17% compared to our prior expectation of 19% to 22%.
Adjusted EBITDA for the second quarter increased 82.2% to $6 million compared to 3.1 3.3 million in the prior year period.
Please note that all of the adjustments from GAAP to non-GAAP .
Discussed today are reconciled in our earnings press release issued this afternoon.
We ended the second quarter in a strong financial position with $14.5 million of cash compared to just $500000 of debt.
During the quarter, we generated $9.2 million of cash from operations.
From $4.6 million in the prior year period.
The improved operating cash flow, primarily reflects a 3.5 million dollar increase in GAAP net income and improvements in working capital.
During the second quarter, we invested $900000 in capital expenditures.
And during fiscal 2020, we anticipate.
To continue to modestly have lower capex levels than in fiscal 2019, as our incremental investments in the Lifevantage app are moderating.
In December of 2019, our convertible note receivable and accrued interest related to our mobile application development partner converted into an equity holdings, which is now recorded as equity securities on our balance sheet.
Finally, we paid down $500000 on our term loan which will be paid in full in March of 2020.
Additionally, we used $2 million in cash to repurchase approximately 140000 shares of common stock under our share repurchase amortization authorization.
As noted last quarter, we have a tenbfive one program in place to facilitate our share repurchases as of December 31st.
It remains $5.4 million available under the company's $15 million share repurchase authorization.
Turning to our fiscal 2020 outlook, we are reiterating the guidance, we provided for revenue and adjusted EBITDA. When are we reported fourth quarter 2019 earnings while raising our adjusted EPS guidance.
We anticipate generating revenue in the range of 235 to 245 million and adjusted non-GAAP EBITDA in the range of $20 million to $22 million.
We now anticipate non-GAAP earnings per share in the range of 74 cents to 90 79 cents.
Up from 60 to 71 cents previously.
Our increased non-GAAP EPS guidance range reflects an increase in our estimated.
non-GAAP pre tax income.
Reduction in our estimated full year tax rate.
And a reduction in our forecasted fully diluted share count.
Please note that our new full year tax rate estimate of approximately 17% assumes that our third and fourth quarter tax rates will be approximately 33%.
Now, let me turn the call back to the offered an operator to facilitate question.
Operator.
Thank you we will now be conducting a question and answer session.
I'd like to ask your question you May Press Star one on your telephone keypad I come from mentioned total indicate your line is in the question Q You May Press Star too if you would like to remove your question from the Q.
For participants using speaker equipment, there may be necessary to pick up your handset before pressing the star Kay.
Our first question comes from the line of Doug Lane with Lane Research. Please proceed with your question.
Hi, good afternoon everybody.
Question on stainless tax rate here, Steve 17%. This year and this can we can we look at this is a new normal or.
The 19 to 22 really more of the center of gravity in the 17, just unusually low this year.
Yes, I'd say, Doug that the 17 is lower this year because of the high amount of equity that that invested during this period that that has translated to.
A much lower tax rate I think going forward I would expect our rate to be in the 25% range plus plus or minus.
Okay. That's helpful.
And then getting on the business here.
The then I have to say that international business seems to be doing very well with the 8% growth on a pretty difficult comparison, and there's a lot of moving parts here. So I'd just like to drill down on that if I could because.
Greater China had been quite a big been a big part of the growth story before now.
I see that it was down 35% in the first quarter Im sure pretty sure it probably wasn't much better in the second quarter. Meanwhile, We have Australia, New Zealand in the equation in a fairly big way that maybe wasn't there a year or two ago at least not as far as being the growth contributors that they are and then thirdly the returned to growth in Japan, how sustainable do you think that is just to do you give us some.
Colour on the moving parts and international.
Yes, I'd love to think stuck for the question, let me start out with Japan is we mentioned before we saw 4.7% increase in Japan and is that sustainable over the years, we have completely changed management, we've been going through.
A lot of efforts to to align ourselves in our and our field leaders together I think that's translated out very well into a growth in business. One of the main drivers that we have through the remainder of this year for Japan is the is a re sizing or.
Reduction in size of our pro tandem interrupt too and this is based on local market feedback that we're receiving that.
The size of Appeals in Japan is is traditionally a lot smaller so we're adjusting to that we think that that will be very positively received so is it sustainable.
We have.
Hi, hopes on that and with the management in place in the field leadership that we have in place.
Very positive on that.
Now looking at at Australia, and New Zealand, you know as a matter of fact I traveled to Australia. Later. This evening, we just have some right groups down there that are growing they are working very well with their management and the systems that they have in place. It seems like each month. They just continue to.
Growing grow as a matter of fact, it was based on that growth and the demand that was coming from that area that we made the determination to expand into New Zealand. Originally that was based on a on our customer acquisition model, we moved that over to full business and our full business model and we.
Seen a very positive reception of that business model.
Hong Kong.
Let me well, let's talk about greater China.
You know still we're working with Taiwan, It's a great contributor is still very strong for us.
There's still more on a sprint I would call it in that they surge and and then rest and then search and rescue and we're trying to bring in more leaderships that we get more of a consistent monthly quarterly output from them and we've made great strides over the last quarter or two to do that.
Right now the political unrest that that's going on in Hong Kong I would say that that is probably wanted the the the greatest headwinds that we have I mean, most businesses in Hong Kong have been affected with it so as as all people, we we pray and hope for a resolution in the situation.
There and.
Thats kind of color that that I have heard for those areas very pleased with the growth.
No thats very helpful and on the New Zealand rollout as that was that a one time event in December or is it sort of a rolling rollout. If you will through the next few months.
Well it was it was an introduction keep in mind that that market. We had been doing that we had customers in before for at least I think at least a year in that it was part of our global customer acquisition model and so when we converted that over to a full business model.
You will allow people to.
To look at it from a business opportunity standpoint, it that even accelerated the sales in the growth. We're seeing there is as more people joined and they were able to engage in bringing more customers. So it's been very positive and does that launch occurred in the middle of November So we have.
Okay, six six or seven weeks in the quarter of Wouldnt initially launched.
On a business standpoint, it very well how does the people into your by both people in Australia, and New Zealand, yes.
Okay got it and then turning to the you asked where the growth was 4%, but it seemed like the product introduction was was fairly major I mean I'm from the outside it seems like I would've expected a bigger number it's 4% about what you're looking for or is there something going on with the timing of that I should know about just what's your feeling on the on the new product launches.
Well the new product launch was was well received and.
Especially when right before the event when some of our clinical research was made available and we saw the synergies that were occurring between the various product lines.
Between the various protein and products I would say.
So overall the launch went well I think that there were other factors that contributed to.
Maybe numbers that might have been higher bit bit.
What of reduce that number from where it could have been.
And just keep in mind that that 4% you know the the prior year quarter was was also our previously previous record high we did over $58 million in that quarter. When we launched our hair care system. So we were coming off.
Hi, comparable year over year.
Sequentially the us actually grew over 10% from Q1 to Q2.
Okay.
That's good color and then.
With.
The bundling.
With the new products and the bundle that you're offering how do you think that will impact the percentage of your product that will be sold via bundles and also maybe how it might impact your percentage of products sold via subscription.
Well im looking at the various percentages, let's start start with the bundling I mean looking at the product category itself from tandem.
We saw a 10% year over year increase in our protein and in line during the quarter and Ussixteen point sequential increase in the use of protein and the family of products. So the bundling strategy has been successfully typically it ranges, 18% to 20% the bundling products.
Of our of our of our revenue.
When it comes to subscription.
I think the driver behind that.
More more so than then the try Synergizer pack hits, we released or the bundling I think yet a factor that will affect that will be the free shipping model that we are the free shipping that we just rolled out as well as the daily Hey, as we begin to transition into.
More into the gig economy, and and begin to reflect some of our other competitors outside of our channel, but what is commonly held I mean kind of the Amazon application of products. They expect free shipping along with that so I think some of these changes that we've made will help make.
Our subscription model even more attractive.
Okay. Thank you Thats helpful. Just one last thing you mentioned, our global convention in.
In the fourth quarter of 2018 do you have any conventions of that size planned over the next.
46 quarters.
We do have.
Over the last couple of quarters, we've been talking about a change to where event cadence and part of that is a shift as we see younger people coming into the business there a little more.
Focused on more experienced as a little more Ics.
Having it be more of an experience than just sitting into in an event and so you see a change in our cadence coming up next month as we take our next elite Academy in we've moved it to more of a.
The location, we're going to be down in canton, and it's we see I see that as being one of the premier events that we have so we're gathering everybody in king tune in February and then another thing that we've seen is that as younger people come in they don't like to travel quite as much. So we've taken one of our lead.
Academies this year in we're shifting it and breaking it down into over 20 regional at that event, where we take the meetings closer to our distributors and we believe that the aggregate amount of the people attending those will even be higher than than if we did one event itself. Then we moved our global conventions.
Over to a an annual basis and that so our global commence will be held each year in typically in the month of October . So this year in October I should say in this calendar year October .
Our global convention will be in Las Vegas.
Okay. That's helpful. Thanks, guys.
Thanks.
As a reminder, ladies and gentlemen, it is star one to ask your question. Our next question comes from the line of Bill Sutherland with the Benchmark Company. Please proceed with your question.
Hey, Thanks, Darren it's Dave sorry.
Doing well thank you.
The.
Hi, Synergizer bundle.
It was available all quarter in the U.S.
We rolled it out towards the beginning of October one of our lead Academy. So for the vast majority of the quarter, Yes Yep.
So I'm just thinking about the incremental impact I mean do you feel.
It was hot out the gate or is this something that's going to be building as we get into the back half of fiscal year.
Well you know when I look yet the introduction of of any.
I call it a macro moving product one of our flagship products that we release initially there's always a pipe sale where people are wanting to experience it get it into their hands. So theres an initial interest the the part that were on right now is translating that and moving our customer bases.
Over to our subscription model so right now we're just driving.
Awareness of it promoting it and so most of our marketing efforts as well as our advanced efforts are all focused on on on this pack so.
That's just the stage we're in its been out for a quarter that was more of the introduction phase now we're now we're driving into into our subscription.
System and then we'll also see the expansion impact.
Canada and the other markets in the coming quarters.
Yes, Canada is receiving it on a not for resell basis. So people would order from the United States have for their own personal consumption.
And so it is limited to an extent, where it's not it's mostly people just wanting to consume the product.
I think as product is officially on the ground then there'll be an expansion of the demand for it obviously and then as we roll it out throughout the growth again, we mentioned that were in the process of localization reviewing the formulation bye bye bye regions of the world typically as you move a product around the world.
You know some countries.
Don't allow the Odyssey things you know something that maybe seeing very normal they may not allow so we have to look at.
How do we how do we adjust it for that given market keeping the number of formulations that we have available to the smallest number during the appropriate testing. So it is a process and over the coming quarters as we have markets come online to receive the product will make additional announcements and.
Speed on on where the product will be available and bill one other thing that one other thing that we did just.
Week or two ago was the introduction of of the try Synergizer pack cats. So when we launch the product in October .
And I think we've talked about the science behind the benefits of taking all three of our pro tandem products.
Together you know the individuals purchased.
Three bottles of 30 days supplies.
And we just a week ago at announced kind of daily pockets that contain no one day.
So.
Dosage of each of the three per tandem products in one pack at that kind of an ease of use but also we anticipate that our distributors will be utilized utilizing that as as really a sampling tool for people that they come in contact with and.
And talk too about the new product. So it's still very early on to determine the success from that but we see that as asset growth opportunity in second half a year as well.
Yes.
When you're looking at the launches in your pipeline planned launches.
Are you.
Thinking.
About cross categories.
Or is it more core you have you as you've done with Protandim this year.
Well I think as we as we look yet it new products throughout the remainder of this year. Our primary focus is on the protest in protest and energized here as well as the bundling strategy and the try synergizer.
Grouping or stack that we came out with and when you launch something within your flagship I think you do it a disservice. If you immediately change course and begin focusing on something else you really have to focus on getting that that new product story out into that subscription model where people are.
Consuming it on a daily basis and that that is really our focus right now now when it comes to other products. Obviously, we do look at each category individually from skin care to weight loss pet products and determine where there is a greatest imagine where we have the greatest upside on.
Any type of expansion.
Recently, we have been looking at we've released some limited time offerings. So while supplies last of in the fall we use that as part of our Black Friday, and cyber Monday promotions, where we released a product within our true science line and it was very successful so.
I think will.
We're always looking at what might be coming up in the future.
Right now our focus is on the NTD synergizer.
And then last one for me I just wanted to understand better dynamic of the just distributor in customer.
Growth variants of the growth.
And I guess, it's been that way for some number periods I don't have that much history, but.
Is that how we should think about it going forward the distributors growing at a faster pace I guess, that's helped by your Red carpet program.
But how should we think about the customer attrition.
Going forward.
I think sometimes it it varies depending on the the focus in the different group dynamics of people in the business.
Last year, there was a greater focus on customers in that shifted a little bit more distributors and that means that continues to kind of rotate back and forth depending on the various distributor groups.
So when you look at the most recent quarter you're comparing.
As you look back into 2000 in I guess 19 fiscal 19 for US we were getting significant surges in customer enrollment through some of our Chinese.
Groups that are there based here in the United States and that necessarily didnt replicate into into this year.
Additionally, we saw some short term reductions that are in our social media, driven enrollment, which have been which were offset by higher average volume per customer so as part of.
Our ongoing efforts were expanding our education and training for our distributors to really more effectively market through social media. So it's just a process as we go back in.
Fourth in what groups or our surging are growing at different points as to if it's more customers or distributors.
Okay. So it's it's it's it's not a steady state got it. Thanks, Derek Thanks, Steve appreciate the color.
Yes. Thanks.
There are no further questions in the queue I'd like to hand, the call back to Mr. Jensen for closing remarks.
Thank you everyone for joining us today, we're very pleased about our results. So far this year and are excited to see what the rest of fiscal 2020 has in store. We look forward to updating you on our next call and wish you all a wonderful day goodbye.
Ladies and gentlemen, this does conclude todays teleconference. Thank you for your participation you may disconnect. Your lines at this time and have a wonderful day.