Q2 2020 Earnings Call

[music].

Good day, ladies and gentlemen, thank you for standing by welcome to the Cursory USA Inc. fiscal second quarter 2020 earnings Conference call.

At this time, all participants I've been placed in the listen only mode and the lines will be opening for your questions. Following the presentation.

Please note that this conference is being recorded today April 14th 2020.

The call today, we have Ritchie, Hi, Jamie Jimmy <unk>, President and Chief Executive Officer.

Oh, Gee Shinohara Chief Financial Officer.

Benjamin important and Investor Relations manager.

And now I would like to turn the conference over to Mr. report. Thank you. Please begin.

You operator, good afternoon, everyone and thank you all for joining I know everyone should have access to our fiscal second quarter 2020 earnings release. It can be found at www dot currency dotcom and the Investor Relations section a copy of the earnings release has also been included an 8-K was submitted to the yet you see.

We began our formal remarks I need to remind everyone that part of our discussion today going forward looking statements as defined under the private Securities Litigation Reform Act Nike 95.

Forward looking statements are not guarantees of future performance and therefore, you should not put undue reliance on them.

These statements are also subject to numerous risks and uncertainties that could cause actual results could differ materially from what we expect we refer all you do our recent FCC filings for a more detailed discussion the risks that could impact our future operating results in financial condition.

Also during today's call, we will discuss certain non-GAAP measures, which we believe useful in evaluating our performance person piece of this additional information should not be considered in isolation worsens subs <unk> results prepared in accordance with gap and the reconciliations to comparable GAAP measures are available in our earnings release.

Well thought out of the way I would like to turn the call over to Jim.

Thank you Ben Thank you everyone for joining us today.

Before we get the Saudis I'd like to say that I hope auto beyond the coal the comedy on New York study in healthy.

To go W, who have be impacted that's pretty by called me thinking I hope for a speedy comedy for your what you went up to one.

They've called what scheduled before well nobody discussion I won't piece comes back on the core complaints sort of these on an ongoing where do you think you subject.

Yeah, I think you know.

These are not them over time, so I'm touch only briefly on the second quarter before moving on to give you all are cutting competition.

Well I think on the quota and <unk> I'm thinking specifically information about the core properties out and of course, the that would be happy to entertain any questions about arnie.

Today's calendar it.

We love preschool gets electric Unquote County, South, which included it'd be new growth over 28%, but keep them by 10.8 <unk> percent increase incompatible with themselves.

Additionally, our loss per diluted earnings per share all too thin what inviting me that's expectation there will be provided although if you can talk the quote unquote.

Interrupting the sitcom called <unk>, which indeed, okay, we already 29.

We paid at the very good about some momentum lumpiness and ongoing already think each subject.

However.

The news about Colby CA 19 begun right.

We started to tee up so don't seem to agree system, particularly in a long list of course wonderful.

Oh, yes, okay, let's do money just wondering about Oh.

I was on increasing the number over state and local government she's a new guidelines will probably go activities.

Quickly became apparent.

Speaking of Abuja, what's a single deposit.

I'm, describing creature qimonda pretty shutdown open only sensata business.

We made to describe this jump on much 18.

Cool all different see some alike.

Lot of many 'cause it's obviously that's wrong.

We would have to take long on the day, but you probably see bbds only technology enabled the concept you thought evolving because she hobbies model on the distinct people might affect seems pretty dining experience will be impossible to liberty cake.

So it's not the being on obviously, we have a policy.

Yes, Dan.

I might come from helping the ongoing <unk> team liquidity on our ability to quickly on the efficient, but he didn't didn't open additional wintertime he's right.

But we have claimed to be unable to predict when that might be I'd like to provide some insight into allergy symptoms PBT give me one idea all told me a cutting but other things the impact on called the 19.

Obviously, the coding well listen I suppose the from these conditions.

But we were able to continue to pay already in pre lease up until it pretty well.

Improperly MRV CBD fun <unk> properties.

Yeah, Hi, anybody thought.

I love to do stuff is exceptional I believe it or do you mean beatle.

We made the decision because the deep and your comics them, where do you tend to be listens to close the overeat draining huh.

I'd also say that from a <unk> due date or do you openings.

To support our team do what do you see a critical time, we are paying would have coastal cities in China for total Oh the <unk>.

In addition, David will have the like Oh, possibly through that appeal occupied they'll probably be a pretty soon.

We deal.

We also put on <unk> become boerner fees 'cause it into other continuity on all our different cheeks.

Did you got a two hour started it expands George.

Also being active discussions with although a lot number.

We hooked up with life will give up if the long time, but equally to the made into obligation.

Even the old <unk>.

Jewish.

Maybe to continue to anybody that occupancy obligation on a month by month basis on hospital popping up.

Well, it's a corporate it's a couple aside <unk> how would you do so I'm not saying operating expenses, including the photo of a modest the group over a couple of the stuff.

You got to do our corporate it all British.

Oh, so near Tom you could be prepared to double up so.

Great Great if he seemed pretty other possible once the field you didn't see if they do so.

But almost no we don't men's upon the point behind the previous pretty tight you could do you do something piece kinda to firm up 20 beat you to put it into the majority of all capital expenditure for somebody's got to yeah.

Still delivered excellent Katy takes on the Glendale, California.

Open the door Cupid hurt you too, but I got people temporarily shut down.

I should already be for new restaurants under construction Mitt much.

Property, New Jersey could just don't know some to Washington, D.C., Some Oaks, California feature cutting but eating a whole lot home owners will hold pretty large equaled pretty quick.

Well at all and used to whatever deployment is getting oh.

No.

I'm not going up I mean, I don't think on functional Lucky to continue responded pretty strong.

Yeah, cutting but he didn't healing auctions.

We're also looking not supposed to be T. O posturing somebody innovation he wasn't the downtime could eat the by store closure, well cheating <unk> I'm thinking over the traditional I'm recommendations regarding 60 unruffled trying to get something.

Finally, I have two additional items that could bode.

Well, we have applied to pull up they don't look actual brown dome and other can't reach [laughter], who leave it up 92 paid on close.

Under the problems over the problem because he spent a long fun on expenditure that was much Mike will give me.

I'll just take on the sleek clearly tshepong appealing the company I'm ready to to make while being able to after $20 million deepwater benign credit Obama for your time.

Please note stuff, we have not bottled and among against that they would have been credit agreement.

You have no plans to do so it's a immediate future.

He very much appreciate the support of criticism on their confidence in the long term success Obama Beach.

Well the old you'll be Fortunately the two hub in got unique situation is a thrown peptide. Please.

So today, we have approximately 24 me on bonus Josh.

No that.

Oh, well understood on closed the estimate <unk> of approximately $1 billion Bobby.

Keep in mind is up about the about <unk> outbreak in good jumped out into expenditure on the minimum rent relief.

Have you I'll do.

The traditional although system, whether something don't disclose it could predict stuff. He's got whereby we are confident that you have more lots can prove that you've been.

These currencies for extended periods of time.

Well find out what you might go deep is something you pretty room by public 19 <unk>.

We do a lot previous financial guidance for the he's got a young people on them between under these are not issue any update you sign.

Thank you again for doing you got to be side.

Before you want anybody in crisis, you can see.

Despite the ongoing I'm trying to be we'd be real <unk>, if we put a to bid on the school.

Even as almost on a gross well still have money general undergoing.

Between.

Yeah walking on you pretty much.

When you Buck what was the house rental home.

We are engaging with how the parties in order to eat Blue Buffalo development, a maintenance capability on the opening.

Hi, somebody we are continuing to cup development process for a previously mentioned on the technology each subject.

We were extremely excited about supporting some of our business before the trick or Colby thinking on the did you mean equally confident.

Discrepancies coffee.

We have alone would only opportunity ahead of us.

Before we open the name for question I regret to sunk older. When she member well their hard work pretty DDG I'm supposed to be nothing it gets on chart the victory.

This concludes a lot but it did anymore. We are now compete on for any questions. You have I thought you might to doing that feeling good question I mean, I'm jumping before my discourse, you're confident deep into English. Please they'll be tough open it up please open the meaningful crystal.

Thank you at this time will we will be conducting a question and answer session. He would like to ask your question. Please press star one on your telephone keypad.

For participants using speaker equipment, and maybe necessary to pick up your handset before pressing the star keys.

Confirmation its own will indicate your line is another question Q.

You bet Press Star too if you would like to remove yourself from the Q.

One moment, please while we pull for your questions.

First question comes from the line or Peter Salem, B T. I Ji. Please proceed with your questions.

Great. Thank you Oh.

I, just I think if I heard.

Second 1 million per week.

Cash at this point Oh.

Good day.

That number can decline.

In the current levels a if this first if the sales environment persists stores. The 1 billion per week kind of the best case scenario in terms of cash burn.

Peter Thank you for your question, but it's not only to one thing jumping Islam banging on items like <unk>.

But the on all on a one video no that's going to be isn't going to just get them, what I'm talking about it I mean, you're talking about politics on noticeable doesn't eat steak you'll settlement.

Hi, Peter This is Ben as the first thing we'd like to make clear is that just 1 million dollar cash burn rate is a purely <unk> near term number.

Oh, I don't believe yesterday that kind of stuck or do you know what or whatever.

You got to about geopolitical ultimate multi day level, so the topic that because you've got to deal with them.

And as Johnny mentioned in his prepared remarks, we do believe there's still a should.

Several lovers.

Talk to materially bring down the burn rate.

Ah, but [laughter].

And payable.

Okay.

And then of course when he comes to just get them or what are what does not take little PDP and I'll put it on what does it simply don't know what are the what are what I'm talking about the children's game, but I'm looking on a p. beat on the on a whole even if I'm actually might expect you combine muddy must know that keep innovating around you booked it well I suppose that I don't know plug <unk> play. We just do you have gone up on that none of them up well, let me jump into I think.

On July 20 foot that I don't get some cool team.

So we've applied for the payment protection program, and we want to make a.

State effort to use of funds as intended which is keeping people on payroll so keeping dot in mind as long as well as these regulations surrounding forgiveness, our labor costs are higher than they would be if we hadn't likes it alone because we're keeping our payroll or keeping more employees on table.

[laughter], but I think you know part or even though they're going to limit them or they were not doing what a critical band Theres a lot of people see it.

So from a bird strike you refer what some of our employees, but the remaining employees are staying on it full pay.

Well I guess, it I'm not equal I'm going to be defeat on their own domains and Patrick on the studio city.

He is still up those other political buying you off I'd also like a little more well studied that wasn't much Tony could you look at something like must get its almost I don't know portal well on old candidate who comes in a few months.

And if it becomes clear the if weve reached the end of the cover period for the T.D. loan and it's clear that the store closures are going to extend for a prolonged period.

This would be a very difficult and it'd be a very difficult decision, but we would make additional furloughs.

At the much up because when he comes to just get them a little on all stuff. There wasn't much can you machine pinnacle of high school somebody looking things seem a little too critical it on all but did with almost all Muslims <unk> topic that they what they see must go to.

Compensate because you don't.

So this million dollar cash burn rate assumes that we're going to be continuing with construction at for new units and renovations during our store closures. So if we were to decide to stop construction that would shave off the capex portion, which is $300000 out about the million burn rate.

[laughter] well, that's a funnel and go to see then well just I know I really think that on all set up a little Mcconnell puts up on it just looks like it or not but in other got though you who need on human monoclonal antibody, calling <unk> ownership interest you might Uh huh.

So I I am sure people are curious about why we're going forward with construction when most other companies.

I have been trying to rein in their capex cost as much as possible. So we'd like to address that right now.

[laughter] Mcdonnell Koernke data, it's just a critical element that anymore. So that's going I don't look at some of them I Wonder what did you get it will walk you open the study only booked it Jim you said it was up almost him.

Given that nobody can reasonably estimate when the credit crisis is going to be over we felt that Oh responsible course of action was to prepare different plans for different scenarios.

I think you know look what im glad group. She was looking to buy so nobody gets with look sort of by Apple is good whenever you go but that's what are going to pay it looks a little more come up and get them almost anything else on all kind of call. Just so many people have done what you do anymore.

He will have to physical just up I must say so do you just simply stuff I know I suppose look at able to.

So we see that there's as we see it are really three ways. This can go but pandemic an end earlier than anybody expects the pandemic and roughly in line with our expectations are the pandemic can continue book beyond our expectations and so.

Our plan to continuing renovations and new unit development is assumes.

The scenarios will be either dependent ends earlier than expected or the pandemic.

And around the <unk> around the time that was originally expected.

[laughter]. Thank you can see any place open all of the she was the Bonnie.

Kevin will do well on all coupled with a modest suddenly become pretty reasonable working with medical there or what else would anyone I get a difficult.

So the reason that we're assuming we're going to former assumptions is that we want to maintain our restaurant level contributions. If we were to close post a pandemic.

[music].

After we reopened to get the renovations that would have a material impact on our restaurant level contribution.

Well, if I wonder if again and doing what are what a bunch of the <unk> on a couple of course I got it sounds like I'm not going to clean up [laughter], yielding more so night there'll be cutting unless you must go but doesn't let him up once you know you're having said that if that.

Couple of another equal Jonathan if somebody wants to buy well have you almost have to Dakota, well, Jason if they put them on honest gonna get somewhat.

And we weren't able to make this decision because we are in an exceptionally strong capital position between our $24 million cash on hand, and the new 20 million revolver, we've established with her parents and so we.

Preceded assuming that one of the two.

<unk> earlier scenarios will play out that being said hubs cleared the pandemic is going to continue longer than expected.

We would be able to stop construction and stop any capital expenditures.

Hi, good.

I I hope that clarify things.

Our next question, it's comforting to line of Andrew Strelzik of BMO. Please proceed with your questions.

Hey, good afternoon, and thanks for taking my question. The first one from me you talked about some of the flexibility on the burn rate. One thing you didn't quantify was that the rent piece. So I was wondering if you could I talk about how the conversations with the landlords have been going so far and how much would that.

If you get some flexibility there how much would ever done the burn rates.

Sure.

Well I know, there's little calls when he got to just get what would I didn't didn't hit you don't get this took a look at a machine thing you don't incident in Olyphant thought of course, you'll see must get them, but then you tend to them or not you might oh, yeah, that'd be fun and of course it on my side do you think you get isn't what it might Wanna again defend that my take on if he doesn't I'm, especially on the <unk>.

So as soon as we decided to close our stores on March 18th we began discussions with our landlords for existing stores as well as those in our news need a pipeline. We're in the middle of negotiations now so it's a little bit early to talk about results, but we'd like to speak about general directionality.

Well I come up on all kind of pulled back when they have two notable magical about dealing on about a bumpy beat on the whole given it's all on one side again it causes people to stop on seems a little bit <unk> <unk> you are going up almost in line with on block. So could you don't want to clinical hold <unk> shake we still dot com.

Our primary objective in Orlando negotiations is to maximize the forgivable expenses under the PBP loan, which we think is going to result in a win win situation with our landlords, which you know we need to maintain decades long relationships with and so we've been very focused on X.

Getting the PBB processed.

And so just to.

Add onto that [laughter].

The the million dollar cash free cash burn rate assumes full occupancy costs.

Yep.

[noise], Okay, that's helpful and and then.

You know I understand kind of.

The reticence to move towards the more of the takeout model given the inability to kind of you know replicate the experience, which is a key piece of the brand I'm. Just wondering your you've talked about take out as or maybe delivery is more of a longer term kind of opportunity I mean have you kind of reshuffled at all your thing.

Getting around prioritizing that have you moved it up at all just given kind of how things have unfolded did you did you consider this an opportunity to accelerate that at all or you just kind of rolled it out immediately.

Well my mother, and all touching almost like it'll depend on a personal dependent on all the unique and then you got anything with them to look at it even you must come back in my they looked at it but again, it's about 10, but this was still up not somebody them I think everybody I ended up with that I'll still a minute you'll go different so we're not big enough intimacy. He comes to Oh, Imogen Dillon Democratic she'd be to know stopes that you can you comment.

We've always felt that are just called for the entire dining experience and so our historical focus has been on providing the best possible in store experience and so we haven't considered doing to go and we are currently considering doing to go or takeout or I need delivery that being said given theres. So many up.

Yeah unknowns with this ever changing situation, we haven't ruled anything out and we want to maintain maximum flexibility.

Oh, Oh, something you'll just have a different ideas or what are what I don't know didn't do you consider line you people not imploded <unk> investigating how do you know again like to let anybody know children will come down like you're doing I'll get people don't look what ended up an online denial from a few let anybody on all it's pretty good about going up at all when I get with them on that but it does it get quite comfortable with it.

But I can only gotten a lot in a couple of quick enough people, though did the study month.

It's an additional contracts we did.

Some of our stores open for skilled sales before.

We need to consistent close our entire system, but as I'm sure you're aware given that you know dining space for eating in has been largely band across the country.

Off premises cells are more competitive now than ever and so we weren't able to make an upsells to justify keeping those stores opened just for to go.

And we don't have we don't have existing relationships with third party services and we don't have the infrastructure for a you know existing infrastructure for to go. So he felt that it was better to invest our time and resources into other efforts.

Well you must have of English Commission will see them accordingly.

I'm wondering what's <unk> spending a lot mcconnell hitting sponsored isn't that what do whatever orthodox lucky that they do whatever they might be doing it but it down though he must come on a thing when you apply keeping isn't that much in came up I just want to hold you to seem to imply clinical Gee, that's funny, but then on all they bought a table to fido payment, though I think what I'm, saying with what she said when I don't know, but you don't know, although I don't see anybody from it.

Equally.

Well, we look to emphasize now is the Waller stores are close we are moving very actively with other projects whether that be our unit development or with the news for construction and score renovations or if it would be in score technology, such as drink ordering systems and the tables I touched titles were implementing a crunch.

Time, which is our new back at the house platform, but we are very aggressively using this time it away that we think sufficient.

[laughter] chemical any thoughts you could oh.

Well I'll get heat on appeal to anybody Nicholson with them I wasn't go no go get it anymore. I should think you know you've done the old you're going to do any machines.

And so we felt that the best course of action was to invest in these efforts as opposed to the most <unk> <unk> as opposed to investing in trying to enter the most competitive off premises market we've ever seen in our goal right now is to position ourselves to emerge in the best possible positions make ourselves ready for recovery and we think that.

This is good.

Yes.

This is going to make it easier.

Okay I appreciate all the color there and if I could just squeeze in one more it sounds like a number of the decisions, we're making are being made with an eye towards the restart. So I guess, what do you think about reopening the stores and getting running again, what's the biggest challenge in that process.

[laughter] mother on all the opening to kind of picking up additional them on a hit I think it'll do not he Tony I don't give you see dish and just get a mother Wonder what did you guys I know, what you're going up well can someone on the <unk> political <unk>, that's becoming what someone like if I know my fundamental unless she knows you know if most of what does anyone <unk> Douglas.

We anticipate that the decision to reopen our stores is gonna be is difficult and require as much thought as our decision to close all of our scores, but what we would like to say that are very top priority and this is true when we closed our stores. It is that the health and wellbeing of our employees at our guests very last thing that we want to do is.

Compromise the trust that we've established between our guests that are employees and so that's gonna be the primary consideration more than anything else.

But on almost like the ongoing spend a couple hundred though it isn't it might down because it gives you more.

Oh, sorry, not even though you can you handle study about I don't quite comfortable enough The Olympics.

And then once it's abundantly clear that there or are they didnt see for people to re enter.

Yeah Open society and the restaurants can safely reopened we would evaluate whether or not opening our stores would help us control or losses more effectively than keeping our stores closed and if that with the case, we would reopened.

Mcconnell said you can put out I don't think no made it started optimal multiple <unk> on or what do it. It doesn't do that on didn't feel if somebody to open just don't feel the article make much money well put it all I consider the keno on not only can get unequaled are still behind them.

And it goes without saying that even after we we got a federal or local lifts on to stay at home restrictions were still going to implement additional safety and health measures in our restaurants, and so we're gonna have to be folding and increased costs.

To make sure that those are seeking measures are implemented executed perfectly into our calculus for reopening.

Great. Thank you very much.

John do.

Thanks, Andrew.

We'll hear from here.

Our next question has come from the line of James rather heard of Stephens. Please proceed with your questions.

Hey, Thank you for taking the questions here I've got two and the first one is on the supply chain I'm. Just curious if you anticipate any issues with your supply chain as you come out of covert 19 in and begin to really stores.

We're having a difficult decision our CFO will happen not close out.

Our main surprise I asked that just gave she has made back and mutual and we just keep you can call permission from Ben that they are financed or have they stay me extremely strong.

And there's no impact on there I'm, not saying that that that.

A few months well in fact that.

Okay. Thank you for that and the second one of the follow up to a couple of other questions. We've had on just the tenor of reopening and I understand the difficulty in kind of estimating are forecasting that Mike. My question is what what you will what kind of authority you're going to watch as you look at business and I asked the question because it does.

A variety of.

Voice is talking about wins or reopened the state I think Texas is trying to be pretty aggressive relative to other state when you've got the federal versus state kind of conflict as well in some just kind of curious what your what signs you will watch when you decide to reopen.

[laughter] My mother on all well, we don't intend to <unk>. It's got butane brings you missed what I'm actually doing you can now that's easily and I'm talking about some of it multiple until somebody doing different market cycle. Instead of money I mean, how do you want a minimal and only so I don't think holding up a.

On a bumper stemming from all day I know, so tiny new Castilla on a bunch of <unk>, although not to go to giving up a little might you need to do that people do I don't look for the most of these Oklahoma.

So.

While we can't obviously, we can't give a timeline for when we expected to happen given that were five states and even within those states are significantly different markets, there's going to be very different conditions for the recovery of each of these areas and so we'll be evaluating on a unit by unit basis.

According to the local circumstances in terms of real estate.

Oh anybody Neil <unk> bucket, but im a little do look on a public in Abu Dhabi Mcus will slow down not on all start but not to put them on to that customer.

And the other thing would be that we don't expect ourselves after reopening to immediately be a pretend dynamic levels, we expect a lower rate of sales and to say you ramped afterwards.

Excellent and as a follow up to that question. My last question here is what are some of the things that you can do to spur demand when those stores reopened I know you have a nice large database of customer email addresses a might you use that perhaps some sort of specialized offers a wind stores reopen I know, it's maybe a bit early to think about that.

But what are your thoughts there.

Oh, Yes. Please allow me to make sure <unk> question quickly glip been supercoms anybody.

<unk> instead of looking all equals <unk> spending levels, how about you must got <unk>.

I don't know what about I don't know to doing them a musical open you tried little condition like have you already.

Do you still go to some of that I don't have enough on that.

I think it'd be not the looking only at my though not on a put almost won't eat medical holdings <unk> you want to put it with them remittance got them again with that don't know, what's it going to get people know that somebody paid it might go not unequivocal can old enough to Mike.

So James it's funny that you mentioned this because of the you know if this is a very unique situation and ultimately we we would do something in any other circumstance. We would do in advertising after that would be similar to like a new store opening but given our our responsibility to the communities it would be.

Irresponsible of us to have like it's sort of crowds that are typically drawn buyers store openings and so as you mentioned are first step would probably reach out with our to our existing guess through our rewards email database and sort of monitor.

The.

The traffic and go from there.

That's all in all somebody then did you guys, but it would have maintained it.

He was a moment funnel on all you want me to digging a little Muslim there's a couple mcgill people like us in Italy.

And then the other would be up we'd consider how many employees, we've retained and there the workforce levels when we advertised for reopenings.

Helpful color. Thank you Jimmy Cogent Ben.

Thank you Dan.

Thanks James.

Our next questions are from Peter say Love P.T.I.T.. Thank you for rejoining the queue. Please proceed with your questions.

Thank you.

Hey.

Tours have pretty well wait times and I suspect.

You get back.

Somewhat of a normal.

Probably won't have a lot of kind of standing around the lobby.

What do you guys anticipating as you're like capacity levels.

When we get back over the next month or two just like 50% capacity, 60% I guess I'm just trying to understand why you're modeling and also.

Our level of capacity to get that cash burn rate.

No it's close to zero as possible.

I don't look into the big companies <unk> on all the guy he thinks like that the cleanup on it looks like interdigital, you're supposed to look at that time of equal.

Right.

Well, let me point <unk>.

Even though I'm a little bit I know the unknown based on the bus that out and I just wanted to put them on a feeling.

Right.

[laughter] Im not going to go to the content and I'll just close wouldn't know how could that go on whats going up everybody Columbus amenable to Oh, you don't know why don't you would you say, obviously not realistic was and I don't want them off.

Given the level of uncertainty surrounding consumer sentiment sediment when this is all.

When the pandemic is completely over we don't want to give a guide.

I'd answer expectations, but we do think that best course of action is to prepare for everything and to build different strategies for different different traffic levels.

Well, probably not quite healthy it in a lot I know the whole honestly I think it'll mall. It then what does it get the duty mall.

So some thought even though it will do they must than oh equally well, sometimes they'll get who didn't want a little bit <unk> given that it's getting a lot that you have any comment.

And as Jimmy mentioned earlier after an employee safety to keep consideration is going to you.

The consideration for reopening is going to be whether or not we will be able to more effectively control losses as a result to store opening to store as opposed to keeping them close and so we will evaluate given the situation and constantly reality reevaluate.

As is progressing as and make the best decision for the long term hope for the company.

But most of US you pick up the muscle Imogen Dillon.

Honestly MINDBODY what are what are they bundled you're going so much cheaper still must go to Mcconnell and put on young typically you know you didn't open another tool and all.

And it might not do you want to hike was supposed to majid, though on a public down my opinion will tell you when he could look like in order to automotive you got on digital <unk> whenever that might give you any vertical wings.

Given that we're retaining the majority of our employees, we believe that even in.

Happy circumstance, where traffic levels are higher than expected, we should have an adequate works. If we were to reopen at the let's have you ended the summer which at the end of the covered period for the PDP.

We would be able to.

Immediately addressed that demand level.

Alright, Thank you very much very helpful.

Thank you Peter.

Thanks Peter.

We have reached the end of the question and answer session I will now turn the call back over to management for any closing remarks.

Okay. Thank you for joining us today.

You stay safe and redeployed to to make us on his call. Thank you for the time.

This concludes todays conference you may disconnect. Your lines at this time. Thank you for your participation have a great evening.