Q4 2019 Earnings Call
Good afternoon, and Lucky to today's noodles <unk> company fourth quarter 2019 earnings Conference call.
Participants are now and they listen only mode. After presenters remarks, there will be a question and answer session.
As a reminder, this call is being recorded.
Well now introduce noodles, <unk> company's chief financial officer kept cubic.
Thank you and good afternoon, everyone welcome to our fourth quarter 2019 earnings call.
Here with me this afternoon as Dave bending housing, our Chief Executive Officer.
I like to start by going over a few regulatory matters during our opening remarks in in response to your questions. We may make forward looking statements regarding future events for the future financial performance up the company any such items, including our guidance about our anticipated results in 2020 and details relating to our future performance should be considered.
<unk> looking statements within the meaning of the private Securities Litigation Reform Act.
Such statements are only projections and actual events or results results could differ materially from those projections due to a number of risks and uncertainties. The safe Harbor statement in this afternoon's news release and the cautionary statement in the company's annual report on form 10-K for its 2018 fiscal year and subsequent filings with the FCC, Arkansas.
Good day part of this conference call, including the portions of each that is set forth the risks and uncertainties related to the company's forward looking statements.
I refer you to the documents the company files from time to time with the Securities and Exchange Commission specifically the company's annual report on form 10-K for its 2018 fiscal year and subsequent filings we have made.
These documents contain and identify important factors that could cause actual results to differ materially from those contained in our projections or forward looking statements.
During the call we will discuss non-GAAP measures, which we believe can be useful in evaluating the company's operating performance.
These measures should not be considered in isolation or as a substitute for our financial results prepared in accordance with gap.
A reconciliation of these measures to the most directly comparable GAAP measures is available in our fourth quarter 2019, our news release and our supplemental information.
Now I'd like to turn it over to Dave Boennighausen, Our Chief Executive Officer.
Thanks, Karen and good afternoon, everyone.
2019 was a strong year for Nielsen company as we build off the success in 2018 improved the overall sustainability and effectiveness of our strategy, while positioning the brand to win in today's competitive restaurant environment.
With seven consecutive quarters of positive comparable sales growth significant margin expansion and trends accelerating thus far in 2020, we have greater confidence than ever in the potential of noodles <unk> company to become one of the premier growth concepts in the fast casual space.
This includes a disciplined returned to strong unit expansion, which I will discuss later well liked to start with some perspective on the overall brand strategy and our recent results.
As we began to activate our new news rewards program and enhancements to our happened digital ordering experience, we saw a tangible improvements to our sales results during the last several weeks of 2019.
And we ultimately completed the here was comparable sales growth of 2.8% system wide into your growth of 6%.
Importantly trends have strengthened even more in 2020 and reflects positive traffic growth a significant focus of ours said, we're very pleased about.
Through yesterday February 25th we have achieved company comparable sales growth of 5.8% year to date meaningfully outperforming the industry, thus far in 2020.
As momentum is increasing the topline. We also continue to see strong expansion in the bottom line.
During the fourth quarter restaurant level contribution margin increased 200 basis points versus prior year to 17.2%, while adjusted EBITDA increased over 30% to $10.9 million.
This allowed us to complete 2019, what's a 15.2% increase adjusted EBITDA and an increase adjusted net income to $8.1 million versus 1 billion during the year prior.
We believe that our results for the full year and the great start to 2020, our direct result of our strategy surrounding convenience guest engagement culinary innovation and operational excellence.
Beginning with convenience in our approach to guest engagement, we are leaning into the company's unique ability to make it easy for gas to engage with us in a highly personalized manner.
How when and where they want.
The variety inherent in our menu, how well our food travels and our residents with younger generations are core strengths that position the brand for strong continued growth in the off premise occasion.
Today, our initiatives have considered enhancements to our digital ordering a quick pick up experiences as well as the introduction of driver pickup windows in many of our new locations.
During the fourth quarter digital sales increased 34% over the prior year.
And accounted for 25% of our total sales.
The success help live overall off premise 420 basis points to 58% of sales.
Well seasonality with Dr. This trend has also accelerated thus far in 2020.
With digital year to date, representing 28% of sales and total off premise sales increasing to 60%.
We're pleased with the progress that we have made around or off premise initiatives. However, we believe we are only scratching the surface of our potential.
During 2020, we will continue to evolve our quick pickup in digital ordering channel experiences.
As those evolves. We're also focused on building a rewards program membership and developing the digital and data tools to optimize our destination activities.
Finally, as it pertains to go disengagement earlier this year, we're fortunate to bring on Stacy pool, as our new Chief marketing Officer.
She comes to us with significant experience activating brands and engaging guests were digital perspective. Most recently after several years with their resorts, where she held the variety of leadership roles, including leading the company is industry, leading season pass efforts and the introduction of the first digital now to assistant.
Stacy isn't bluedoor strategy is already being felt and I look forward to partnering with her on the transformational opportunity ahead of us in terms of guest engagement.
Moving to commentary innovation, we continue to execute on our ability to provide choice for today's consumer with favorites for kids to adults from healthy to indulgent different comfortable to adventurous.
During the fourth quarter, we introduced a cauliflower infused rigatoni, which quickly reached our highest seems to food scores on the menu and offers a great complement to our successful is a teen it'll platform.
The company's introduction of plant based alternatives during the past several quarters highlights our ability to meet the very dietary needs of today's consumer.
Our coronary strategy continues to become more refined and disciplined and we anticipate approximately three many launches annually.
During the first quarter, we've already launched two items the reinforced strengthen our core menu.
First our real doors chicken on loan closing a significant gap on the Asian side of our menu and second we returned or as a teeny shrimps can't be to the menu, which performed well isn't limited time offering last year and provides a great tasting Lo carb low calorie alternative for guest.
During the final too many role after the year, we anticipate further innovation to be centered around our catering menu, which will be relaunched in may.
Our signature Mac and cheese worn out and finally continued evolution of our healthy neutral alternatives.
While the company has made great strides through our convenience guest engagement and culinary strategies.
Perhaps where most proud of how strong our operations are people development have become.
Over the past few years, the company has invested and best in class training and development programs as low as industry leading benefits.
Combined with the unique and strong culture, a friendly and engaging team members, we've seen significant improvements in our guest experience scores turnover percentage and other significant people went operational metrics.
Operational and people excellence will always be critical to any restaurant success, but we're particularly excited about the strength of our operations Foundation as we look to accelerate our unit growth were strong people benches Paramount.
Strong operations is one important reason, we believe it the six restaurants opened system wide in 2019 have performed so well in fact better than any new those classes over 15 years.
With seven consecutive quarters of comparable sales growth.
Strong recent new restaurant performance and significant improvements to our economic model, we have added confidence in the company's overall your potential.
We're currently targeting 5% unit growth system wide beginning in 2021 with potential acceleration to at least 7% unit growth in the years beyond.
We anticipate making progress towards these targets with 10 to 15, new restaurant openings in 2020.
Our approach to unit growth will be disciplined and achieved through a combination of both company and franchise unit growth.
Company growth will focus on the significant expansion potential in our existing markets as well as low risk new markets contiguous to areas, where we already have infrastructure and strong brand awareness.
We also expect the franchising will become a more meaningful part of our expansion in 2020, we anticipate more aggressively pursuing franchise sales, while continuing to support our existing franchise base.
To that end, we recently announced the Refranchising of our nine restaurants in the Charlotte in Orlando markets to an existing franchisee River City restaurant group.
Additionally, as part of this agreement RCR GE is expected to open at least 22 additional Nielsen company restaurants over the next several years.
Well, we anticipate most of our franchise growth will come from expansion of markets by existing franchisees or by franchising new markets, we will be opportunistic towards refranchising, when we see potential for a franchisee to grow one of our markets faster than we would from a company perspective.
From both a company and franchise perspective, we continue to execute our smaller square footage design engineer to increase efficiency reduce cost and deliver on increased importance of our off premise business.
As noted in prior calls we are targeting the majority of new units to include pickup windows, which provided added convenience and speech where gas.
New restaurants will also benefit from our strengthening economic model, which as noted earlier has seen significant margin expansion over the past several quarters.
On our most recent earnings call, we discussed our initiatives to optimize our kitchen equipment package and operating processes.
Earlier this year, we implemented the first round of changes related to this initiative improving operational procedures that we believe will result in meaningful savings in 2020 and beyond to offset ongoing labor pressures throughout the industry.
We also continue to be encouraged by initial results, we're seeing from restaurants retrofitted with the new equipment package, and we will be expanding certain elements of test in upcoming months.
New restaurants in 2020 lardy incorporate these changes as we also worked towards implementing many of the changes nationwide.
While the process of rolling out these initiatives will be disciplined we believe strongly as potential to improve meaningfully labor efficiency, while also improving speed food quality and importantly flexibility for future innovation in our menu.
In closing I believe our recent performance indicates the strong trajectory the business is on as well as the sustainability of our strategy.
You did the same time I feel that the best is yet to come.
We still have significant opportunity to meaningfully improve our economic model, while expanding the brand to meet its tremendous white space potential.
Im so proud of our 10000 team members nationwide, who continued to provide outstanding guest experiences day in day out and you have helped us deliver another strong quarter of financial performance and a great start to 2020.
I'll now turn it over to Ken to provide more details on our 2019 results.
Thank you Dave our results in 2019 reflect the effectiveness of our strategy as both average unit volumes and margins continue to expand resulting in meaningful growth in the company's profitability in 2019 total revenue increased 1% to $462.4 million.
From 457.8 million in 2018 led by systemwide comparable sales growth of 2.8%.
Moreover, restaurant level margins expanded 110 basis points to 16.1%.
With our continued comparable sales growth and robust margin expansion adjusted EBITDA increased 15.2% to $38.4 million.
As Dave noted earlier, our economic model strengthened throughout the year and during the fourth quarter, we achieved an expansion in restaurant level margins of 200 basis points and an increase in adjusted EBITDA of over 30%.
Net income in 2019 was $1.6 million or four cents per diluted share compared to a net loss of $8.4 million or 20 cents per diluted share in 2018.
Adjusted net income for 2019 was $8.1 million or 18 cents per diluted share compared to adjusted net income of $1 million or two cents per diluted share in 2018.
Adjustments to net income included $4.3 million of noncash charges in the fourth quarter related to our strategic refranchising activity and noncash charges associated with the favorable amendment to our credit facility.
2019 is comparable sales of 2.8% was comprised of 2.9% growth at company owned restaurants, and a 2.5% increase at franchise locations.
Company owned comparable sales growth reflected 3.6% growth in average check offset by a modest set 0.7% decline in traffic.
As Dave noted comparable sales growth has accelerated thus far in 2020 and reflects positive traffic growth, resulting in year to date comparable sales of 5.7% systemwide, 5.8% at company locations and 5% at franchise locations.
Our restaurant margin expansion of 110 basis points. During 2019 was driven primarily by leverage on higher average unit volume supply chain initiatives and labor efficiencies.
These benefits were partially offset by an increase in third party delivery fees labor inflation and higher costs associated with the launch of our new guest engagement program in the fourth quarter.
Looking at our costs in more detail cost of goods sold as a percent of restaurant sales decreased 100 basis points to 25% during the year as we continued to benefit from the successful implementation of certain supply chain and pricing initiatives.
Labour during the year remained flat at 33% as our labor efficiency initiatives and sales leverage offset continued wage inflation of between four and 5%.
Other operating expense remains substantively flat in 2019, when compared to 2018, our operating other operating expenses were negatively impacted by 120 basis points in additional third party delivery fees, which increased to 1.6% of sales.
Delivery accounted for 7% of sales in 2019 and as a reminder, we lapped the national rollout of delivery during the back half of the fourth quarter.
And as we discussed on the last earnings call, we implemented a 10% delivery pricing premium system wide in the fourth quarter and thus far are confident that we have not seen a negative impact on the overall guest value perception of our delivery offering.
Additionally, during the second quarter of this year, we expect to rollout direct delivery executed by third parties, but ordered through our native digital channels to enhance delivery margins.
Of note delivery accounted for 8.8% of sales during the fourth quarter of 2019 and continues to increase modestly so far in 2020.
General and administrative expenses in 2019 decreased 70 basis points to 9.4% of sales.
Gionee in 2018 included charges totaling $3.7 million related to data breach liabilities and the settlement of gift card litigation.
Excluding these charges Gnh increased 10 basis points due primarily to marketing initiatives related to the launch of our new reward program in the fourth quarter of 2019.
2019 marked another year of balance sheet strengthening a long term debt at the end of 2019 was $42.6 million a $4 million decrease from the end of 2018.
Cash on hand at the end of 2019 was $10.5 million nearly $6 million increased from the end of 2018.
Additionally, during the fourth quarter of 2019, we amended our credit facility, increasing our borrowing capacity to $100 million, while expanding our capital expenditure flexibility to support our new restaurant development and our kitchen of the future initiative.
Now I'd like to turn our attention to guidance based on current information for the full year 2020, including some of our key financial metrics.
We currently expect 2020 adjusted diluted earnings per share of between 21 cents and 26 cents.
Our full year guidance is based on the following assumptions.
We expect total revenue between 470 and $480 million, which incorporates the impact of the Refranchising of nine company restaurants earlier this year.
We expect comparable restaurant sales between three and 5%.
Restaurant contribution is projected to be approximately 17%.
And we are modeling adjusted EBITDA growth between 10, and 20% to a range of between 42 and $46 million.
We expect 10 to 15, new restaurant openings system wide in 2020, including eight to 11, New company restaurants.
And finally for the full year capital expenditures are expected to run between 20 and $30 million as we expand our new restaurant openings and can you continue to test and rollout our kitchen initiative.
With that I'd like to turn it back over to Dave for final remarks.
Thanks, Karen in closing, we just like to thank all of our employees for their results being driven by their commitment and dedication to delivering an outstanding guest experience that our restaurants.
Our continued success in 2019 and the strength early in 2020 is a direct result of all their hard work and we look forward to building on the success in 2020 and beyond as needles reaches its tremendous growth potential Victor Please open the lines for today.
Thank you as a reminder to ask the question you any to press star one on your telephone to withdraw your question press the pound key.
And our first question will come from mine Jake Bartlett from Suntrust you may begin.
Great. Thanks for taking the questions. My first questions were about the same store sales in understanding the cadence.
In the fourth quarter, and then and then also on quarter to date.
You did it sounds like you sales the momentum is strong currently but it was below the low end of the range for 2019, So just want to understand.
What happened as you kind of as you turned on the marketing again after the rewards program whether that was later than you expected any other kind of factors that might have caused the slight miss in the fourth quarter.
Sure. Thanks, Jay good to Great question in so with same store sales during the last earnings call. We had talked about how they were positive leading up to that earnings call. Thus far in Q4, we anticipated that they would accelerate during the back half of the here are they absolutely did so and particularly strength and kind of weekend, we gotten got stronger and stronger as the quarter went on and then.
Same thing has happened thus far in 2021 thing that gets us excited about the numbers that we've seen thus far 2020 is that we just do continuously see momentum kind of grow in on a very regular basis.
As it relates to where we thought and guidance just to touch shy of where we'd expect to delay in the quarter. Much of that is is that it took a little bit longer for that momentum to really get triggered but once it said we've been very excited.
Great and just to understand the quarter to date I believe you were running fairly strong less January and then things like the polar vortex and all the crazy whether you had a in Denver hit, but just just to let US just to help us understand what the the year ago comparisons.
For the kind of the quarter to date numbers, you can kind of frame. It correctly, yes, absolutely. When you look at the overall comparisons for 2020, certainly we are receiving some weather benefit as it relates to the first couple of months of this year, but I think what's exciting is that even when you normalize for that weather benefit we're still seeing quarter to date performance at the top end of our.
Guidance for the full year.
So weather has been really just as a small factor relative to some of the other factors, which a lot of that is around the digital engagement.
Got it and then left.
Questions were about the the restaurant margin guidance and looks like this about 90 basis points of expansion that you're expecting.
At this kind of understand what's baked into that one question would be around the delivery how much of the kind of the 1.6% of delivery pressure from the fee. There can you reclaim with the new pricing structure. So thats one part of it.
And the other is.
How much of the kitchen equipment.
Changes or baked in I mean is is it just the process.
Believe around 50 basis points from the process change that's baked in or do you have an assumption of rolling out say, the steamers earlier or or or anything else that we should think about.
Now I'll touch on the labor side, and then Kevin can get some textron delivery and the balance of our margin expectations with labor. We did institute process changes in late January that we expect will save about one to one and a half hours of labor per restaurant per day, which is meaningful number allows us to combat a significant amount of labor inflation.
There's a little bit.
Incorporate into our guidance in terms of benefit that we would expect from further rollout, but as we said in the prepared remarks, it's going to be pretty disciplined so whether we're looking at the capital aspect or to labor savings aspect, we want to ensure that we're setting the right program in place for us to have a strong ROI and really give us the flexibility for future and.
The nation in terms of delivery, maybe Ken can give some of those some of those a reference point, yes, Hey, Jay gets Ken good to hear from you and Great question. We did see a substantial increase in our off premise occasion during 2019 and that was largely through delivery.
We'd expect delivery to stabilize somewhat near where it is right now in terms of the margin side going forward you talked about really four main drivers one is negotiated in the fees with third party providers.
Two is implementing premium delivery pricing, which we did in the fourth quarter.
10%.
Pricing premium.
And then third in I think probably most impactful is beginning to move guests from third party delivery platforms to direct delivery that brings us substantially lower fee for us and then in the longer term as digital continues to grow.
Look at modifying our labor labor model, particularly in the front of the house.
Great. Thank you very much.
Thank you and our next question will come from line of Andrew Strelzik from BMO capital markets you may begin.
Hey, guys is actually down for Andrew Thanks for taking the questions.
My first question.
Earnings and I guess, how how should we think about the cadence in 2020.
Relatively balanced throughout the year or weighted more heavily towards any particular.
Hey, David you can pay for the question we opened our first restaurants today. So we're super excited about that for 2019, the openings will be mostly back end loaded I'm, sorry, 2020 will be mostly backend loaded yeah, we're really happy with where the pipeline is setting up for both 2020 as well as 2021 and beyond.
But at same time to recognize that it's going to be much more loaded towards the fourth quarter.
Particularly the first part of the fourth quarter and maybe the back half of the third quarter.
Great. That's helpful. And then just one follow up you know you've you've obviously had a lot of success leading into the healthy platform with with you do tools and colleagues photos of the last couple of years I mean, it sounds like innovation within that platform will remain a focus moving forward I guess I'm just wondering if you're actively testing additional products right now and I guess.
More broadly how large.
A part of the business that can grow from a product perspective overtime and without compromising operations or throughput and then just piggybacking off that is 20% to 25% of total sales mix level still kind of the right level to think about in terms of where the healthy side and then you can grow to over time and you know just given how.
How robust the growth has been at this point.
And are up opportunity to grow even beyond that.
Absolutely, we think theres significant runway in the better for you platform. The different noodle alternatives are salad offerings. We do still believed that it has potential to reach the mix that you mentioned that 20, 25% of gas, which currently Mac and cheese is our largest selling platform encouragingly. The mix continues to grow and we'll call it a little.
When we introduce though that's intended to meet a different objective. It's an accessible noodle primarily for existing gets wanting to get more veggies and their diet and was a great great complement to the zucchini noodle. We are in the process of testing additional.
Introductions and innovation around plant based noodle alternatives.
I will say that were little bit early on so don't want it will talk more during upcoming earnings calls.
I will answer the question, though in terms of the impact on operations.
We are maniacal about ensuring that as we increase innovation through the system that at the same time, we take away things and improved processes to ensure that we we don't fall into I actually think there was a one of the challenges that we had a handful of years ago is when the menu did get too complex. So it is something with.
Which we're very very laser focused on making sure that we balance innovation with operational execution.
That's really helpful. Thanks for taking the questions guys.
Thank you once again that star one for questions Star one.
Our next question comes from the line of Andy Barish from Jefferies. You may begin.
Hey, guys just a quick housekeeping on the fourth quarter same store sales components.
Yes, Hey, Andy it's Ken fourth quarter comp sales were 1.5% system wide.
Company owned sales growth reflected negative traffic of 2.3% offset by 3.8% of pricing pricing mix shift and then as mentioned earlier on in the prepared remarks traffic improved over the course of the fourth quarter and turned positive thus far in 2020.
And our you are you still anticipating about three points of price per 20.
Yeah, we're running a touch higher than that right now Andy but we would expect for the full year that we'll have about 3% of price and then expect.
That's a positive traffic as well as little bit of benefit from mix shift as well.
And.
No no closing that gap with with Stacy coming on board I'm not in the marketing role between you know the off premise and the digital engagement, one or a couple of signposts, maybe we can look for as we move through the year, you know to kind of convert some of those gas into the digital.
A flywheel if you will yeah, absolutely I think 2020, Andy will be a year really around.
Picking off some of the low hanging fruit in terms of better engagement with our gas, but at the same time just growing the overall program in terms of membership.
Getting the data set up to where we can really have the tools to become very much more personalized than we are today, you'll see us as we get more refined with the program talk a bit more around what the membership levels are looking like as well as conversion, but still a bit early there I think one of the side has to look for those just that overall digital ordering I think our brand.
And we believe firmly that we're better positioned than most brands in terms of capturing this enormous growth opportunity as we said on the earnings call were almost 30% of our sales. Thus far this year are being ordered digitally 60% off premise. This is a brand that resonates for the digital experience whether it be how we do with younger generate.
And how the food travels et cetera, So I'd say in the short term continue to look at the progress around digital growth in total and then we'll be providing more texture surrounding the program as a whole as we go through the year.
And can you just help us dimensionalize sort of the I guess, the near to medium term opportunity on labor how many.
How many hours you know kind of before the equipment changes and was.
The January process changes was that related to to prep changes in the in the kitchen.
Yes that is correct, so as actually moving a little bit more prep throughout the day instead of earlier in the day those process changes were tested pretty rigorously and we're happy with what we're seeing thus far is making the lives easier for the team members as well is giving us again about our to an hour and a half of savings I said in the past that we expect.
Ultimately the goal would be to get 10 hours of labor out of the system per restaurant per day that as long term goal, we're very happy with what we're seeing with the steamers, which is really meant to make our sauteed new to one more efficient.
Hotter temperature food better quality of food better order accuracy that when we expect to roll out.
More over the course of this year donor Pega labor number on it yet because we havent tested in isolation.
Versus the other aspects of our strategy, which is more around and then how we how we approach our proteins. That's the one area that we need to spend a bit more time refining ensuring we have the absolutely right package. So more to come theres not a lot that's baked into the guidance except for the one to one and half hours that we already are cash.
Shrink today.
Thank you.
Once again that star one for questions. We have a follow up from Jake Bartlett from Suntrust you may begin.
Great. Thanks for the follow ups, what just just kind of modeling bookkeeping question did you close three company owned stores in the fourth quarter.
Hi, Wallboard, while Kent mentioned, we got the absolute right number.
I was you can look forward, we're firmly past that period of closures that we had in 2017 and 18 as a reminder, a lot of restaurants that have been closing sense that have been those that were at the end of their lease life. We just didn't feel was the right trade area to continue on an ongoing basis closed is going to much more normalized so you.
Can expect really about one every six months somewhere in that ballpark as leases and you are correct. The three did close during.
Fourth quarter 2019.
Okay, but so we had we had five I think five closures in 19. The company. That's that's really the end of the kind of the.
The closure program yet to be more just normal course of business, just as leases and and we want to relocate or restaurant or the trade areas moved.
Got it and then just another question on the margin the pieces of the driver of the drivers to that.
You mentioned around 3% menu price what do you expect for commodity inflation in 2020.
Yeah, Jake there's a 10 great question in 2019, we saw inflation of around 1% and we would expect that about the same in 2000 twice or right at 1% in as a reminder, we contract about 75% of our spending and we're in good shape for 2020 in that regard and an advantage that we continue to have is the variety.
In our menu and then our ingredients and that helps to limit our exposure to particular commodity fluctuations Yag wondering one thing we're been proud of what the success and recent.
Quarters, Jake is we've been able to significantly improve our cost of goods sold but the same time investing significantly in our menu. It started a couple of years ago as we completely re launched and Reengineered, our Mac and cheese sauce.
Clearly with the Kimi, which is a lower margin item includes the cauliflower, we've been able to invest quite a bit in the guest experience.
The same time that we've been able to identify savings in our processes and how we contract.
Got it and then and then lastly in you mentioned in the script.
The evolution of the of the pickup experienced in 2020 is potentially a sales driver could you couldn't go a little more detail and what that is yeah. I was 60% of our food off premise and 30% right now coming through our pickup units.
Their functional their effective in many ways, but we don't believe that theyre personalized.
Nor are they necessarily.
Very obvious and they don't necessarily removed as much friction from new experiences we would like.
So we're looking at is it most of our restaurants, we have free cash registers as business has moved more digital we really don't need that third cash register anymore.
So really will be rolling out many of our restaurants were moving that third register.
Instead, incorporating a much more much more powerful that more personalized.
Pickup experience that's also easier for the gas so when all said and done it's really about removing as much friction as possible from that experience.
Great I appreciate it.
Thank you.
And I'm not showing any other questions at this time.
And gentlemen, this concludes today's conference call. Thank you for participating you may now disconnect.
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