Q1 2020 Chico's FAS Inc Earnings Call
Good morning, and welcome to Chicos, Yes, first quarter 2000, <unk> earnings conference call and work.
All participants will be in listen only mode.
Please note this whole is being recorded.
I would now like turn the conference over to David Oliver Interim Chief Financial Officer, and senior Vice President controller.
Robert Please go ahead.
Thanks, Rocco and good morning.
Welcome to the Chicos after yes first quarter fiscal 14 earnings orbital.
Joining me today, our body Brooks, CEO, and President and Molly letters, five incoming CEO and president.
Our earnings release issued today could be felt on our website at www. She goes out the <unk> dot com under Investor Relations press releases.
Let me caution you that the baseball metaphor include forward looking statements about our current expectations assumptions plans estimates judgments and projections about our business and our industry.
Which speak only as of today's date, you should not unduly rely on forward looking statements.
Important factors that could cause actual results to differ materially.
From those projected.
Or implied by our forward looking statements are included in our earnings release issued this morning.
And at our 60 filings.
[music].
We play we disclaim any obligation to update or revise any information discussed in this call, except as maybe maybe otherwise required by law.
And with that I will try to call over to Bonnie.
Thank you David.
Good morning, everyone.
Todays earning calls.
As the deficit.
<unk> earnings call, just 13 weeks ago.
In our last call we'd be every kind of some metrics and we reported our best quarter in six years for the company.
How remarkable turnaround at 9.1% sales improvement from Q2 Q4 last year today, our story is very different.
But is the story that is also very temporary.
Although our results for Q1 have been supported by reason other than.
We want to emphasize it says that that is a temporary line on our turnaround time.
Yeah.
Like you start today by recognizing exceptional aspect.
All of our stuff yeah, so our demonstrating their resilient.
Every door on that.
Great.
Many of them are now working diligently to reopen stores across the country well probably strict guidelines to keep I think one customer dare I say the many team members in our distribution center because I've ensured that we continued to build the strong digital demand.
Three brands today and throughout the course of it and then.
Oh. It 19 has had a significant impact on the retail apparel industry. Unlike anything ever experienced it has affected the communities Durbin accompanying financial performance.
Hosted unprecedented losses on Q1, we have taken extreme measures to ensure we are well positioned to overcome the challenges such as extended period door closure I pad.
Right.
Andrew the pandemic with very low debt.
And with strong sales momentum due to the significant changes made to the entire business.
In the latter half a 29 scene.
Positive momentum.
Along with the foresight a major digital investments.
Our exceptional customer loyalty.
Our restructuring of the operation.
Resulted in the company's ability to withstand the pressure of the unforeseen limiting yeah.
There's a first quarter and now well into the second quarter, we have stabilized the business and achieved a for our financial Foundation, we know positions us well for the balance of the year.
She goes after you started fiscal 2020 with strong sales momentum consolidated comparable sales trends show continuous improvement.
Throughout.
All of fiscal 2019 and of course that continued into February I, we achieved a copy of free up 2.7% and similar results continued into March prior to the corporate document.
Darren.
Mm swiftly safeguard the health and wellbeing of our associates in our customer.
Okay, and ancillary protecting the financial strength of the company in mid March we transitioned to a remote working environment, where appropriate and still management team to temporarily closed all 1500 41 to date and became a digital business woman.
Associates that are distribution center continue to work with intense health and safety protocols.
And wage premium.
Support our strong digital but.
During this mandate a door closure period, we took decisive measures to increase our liquidity.
Reduce our cash thing to provide the company with greater financial stability.
The one that James we worked all forward with me.
To better align our inventory.
Correct it reduced demand.
We entered the second quarter with a streamline expense base and strategies to further enhance our liquidity.
Giving us confidence we long March on the right now.
Well positioned for the second half of 2020 and beyond.
We continue to rightsize the operations of the business in Q1, a work that had big time, Inc. Q4 last year [laughter] looted consolidating brand responsibility streamlining our supply chain.
Customer engagement through improved technology tool.
<unk> increased efficiency.
And allow the company can move faster and more effectively.
We are fortunate to have three distinct brand.
Each with unique market position.
And three different price ranges, which has continued to serve us well during the pen Dennis as sales have increased across some categories of business lumpy increasing others.
You need to more casual worked from anywhere needs of customers, we accelerated the rollout of new merchandising and marketing strategy that were developed prior to called ignite team and reworked our assortments and plan to drive sales into those wanted categories of business.
Namely work from home, where in casual comfortable so they oh, chico's and White house Black market.
So my leading position will Smith.
Sleepwear and Loungewear ran performed solidly throughout the quarter with strong sales in all comfort and casual categories that they are notable.
Achieved double digit increases in sales during the same period versus the prior year.
Actually in many ways.
So almost online only business generated similar snail volumes to it.
No business, notably last year.
Don't also delivered a new single day sales record during one of the promotional events.
Leading the highest normal day sales record in the brands District.
At the man shifted to online channel. It was critical to align investments in digital mitigate declines in store traffic during the quarter Perry I store management continue to engage with customers to handheld devices dialed in that.
Hi, Kerry digital styling and selling too.
I believe style connect well continue to be a strategic competitive advantage.
For isn't that.
No connection and meaningful manner that is clearly resonating with our customers.
[laughter] in early May we initiated our multi phased reopening plan for Chico's White house Black market.
And some of the G inline with guidance from local authority and we're taking the necessary steps to protect yourself and safety of our customers.
We are encouraged by our customers respond.
Sorry, opening as they are increasingly reengaging with RBC, which remain an integral part of our omni channel approach.
As of today, approximately 63% of RBC south into the public with limited Howard and enhanced safety protocols.
And 80% of our total fleet will be open by Friday.
Since the beginning the based reopening of obviously, we are seeing excellent week to week increase.
Do you want to know that resolved at recent project, we have experienced some additional temporary closures I don't.
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Or limited period.
In our initial phase of reopening doors, we were able to fulfill national digital orders through our boutiques using the store inventory.
You also offered by online pickup and dark.
No one's got hurt.
And the Shopify appointment service all brands these shopping option they need to be available to customers in accordance with all local health and safety died.
Although the top Newman have man.
Hi anything.
We've ever seen.
I believe our company is successfully navigating the challenges presented by the dynamic.
And we are emerging stronger and nimbler.
Agility of ourselves the continued enthusiasm from customers for our brand.
The financial Foundation, we now have in place.
And our significant cost savings.
Positioned us well.
She goes up.
As announced several weeks ago Molly.
I will be stepping in as CEO, and president and a few weeks and I will become executive chair aboard.
I am confident that Malian right leader for Chico's.
Molly's experience I, just strategists and her proven track record.
As an apparel merchants.
We're very instrumental to the company recent killing them.
She also has demonstrated its up to one.
She has but that's that leadership skills.
No acquired just scared the organization with extreme obstacle.
I am confident in the month, Matt Molly will continue to drive the successful and proven strategies that we bill and implemented in the prior two quarters.
Ill now turn the call Molly you discussed the sale inventory and operation.
In more detail.
Oh.
Thank you Bonnie good morning, everyone I'm pleased to be speaking with you today as incoming CEO and president of Chicos Fas.
I want to thank our associates for their unwavering dedication to our customer community and each other.
The decisive actions of our executive team and the agility of our associates allowed us to quickly pivot to a digital only business that's supported strong online demand.
While cobot 19 significantly impacted our business in the first quarter due to temporary store closure I am confident.
The momentum the company gain in Q4 up 29 team will continue.
Once we fully executed our store reopening plan and customers return to our physical doors.
To date, we've opened 63% of stores in accordance with the guideline and each week, we have been pleased with their performance.
Boutique sales are improving week over week and Q2 sales are planned to be better than Q1, even as we operate with limited store hours and social distancing guideline.
As we look to the balance of Twentytwenty.
I am confident in our team and the actions we're taking to bridge the momentum we gain in Q4 to work we're executing in Q2, Andy on to ensure our company strong position in the marketplace.
During the hands on that we took an appropriate inventory write down on out of season inventory that had been trapped in our boutiques during the closure period.
As a result, we entered the second quarter with a higher level of seasonally light product.
Less fire season inventory and a much better composition.
The apparel assortment, arriving on our site and in our stores reflect the assortment editing and category investment work our team previously implemented.
At Chicos are pretty cold and merchandising adjustment, which included a shift to more casual product.
Served us well during the pandemic as we successfully leaned into the above keyboard good such as woven and knit tops and sweaters.
Our white house Black market brand began transitioning to more casual work from anywhere offering like our jetsetter T casual dresses and accessories.
The more versatile assortment with elevated fabrication and designer influences resonated with customers during the store closure period, and we are seeing a continuation of assortment strength across the top denim jacket and accessory.
With our pivot to digital the newness, we added to the branded website each week increased customer engagement with all three brands posting double digit increases in online traffic in the first quarter.
In April when our boutiques workload, we registered double digit sales growth.
Importantly, each brand registered double digit growth in new customers.
Standing our loyal customer base.
This momentum is continuing as we open source.
After identifying our talent gap and digital last year, we recently hired a new vice president of digital transformation with a proven track record of implementing digital initiatives in the apparel industry.
In addition style connect our proprietary digital styling tool continues to be a differentiator for the company as it allows our customer to receive personalized service.
Wherever whenever and however, she prefers.
Our customers, who are uniquely loyal to our sales associates.
Registered triple digit sales increases versus the prior year Instyle connect.
And to meet the customers evolving outfitting need we accelerated the pilot phase of a new online tool that enables them to digitally shop and augment their closet.
We look forward to sharing initial results on the next earnings call.
With the onset of coal that 19, the robust forecasting process. We built last year allowed us to more accurately plan receipt flow for each of our brands and other result, we swiftly council product in the pipeline and continue to reinvest more deeply into items that resonate with our customers.
The product an assortment architecture, we built for each of our brands remain firmly anchored on placing the customer at the center of hard decision.
And we will continue to inform our go forward strategy.
I'm confident that we will see the benefits of our disciplined approach.
Over the last few months with the majority of our organization furloughed.
Our team seamlessly adjusted it to working remotely while achieving all milestones in our product development cycle.
We had an outstanding team and the breadth and depth of the new disciplines in the organization and the news feed the decision model will serve us well going forward.
We continue to see a great future for Chico's, I say up and I look forward to leading this dynamic company.
I'll now pass the call to David all of our to discuss the financial David.
Thanks, Mali and good morning.
Oh discussing or financial performance I would love to review, our liquidity position and the actions we have taken to reinforce work when interest rates.
As a result of these proactive measures. We believe that we are well positioned to support the business and navigate the current environment Chicos Elfa, Yes entered fiscal 20 on solid financial footing, putting it continues to maintain a healthy liquidity position.
We ended the first quarter with $118 billion, a cash cash equivalents.
We believe our cash position is meaningfully strengthened by Adobe all ability under or asset base credit facility and our ability to build due to borrow against or older real estate, including but she goes distribution center and corporate offices that are unencumbered today.
As body noted, we've taken steps to light or cost structure with revenues preserve cash increase recorded.
To improve liquidity, we drew down 106 billion on our credit facility, and then began aggressively reducing issue expenses, starting with an organizational restructuring Furloughing associates and Tipperary wage reductions. We also adjusted plant merchandise receipts to better align with expected market demand over the balance of the year.
This effort included partnering with both merchant acquirers and other vendors to materially reduce operating costs have extended payment terms other notable actions to reduce.
We took what we reduced our capital spending which plant cabot's ventures enter another central maintenance expenditures.
And we also suspended or quarterly dividend, which we anticipate what conserve approximately 31 billion cash this fiscal year.
With malls or regional centers, Chipper would close and stay home orders in place across the majority the markets commissioning in April we suspended repayments and recently engaged a third party to assist with restructuring or at least portfolio to obtain relief in the form of rate reductions rent abatement and other concessions that are aligned.
The expected sales environment.
We are in active discussions with her landlords defiantly mutually acceptable for and we are targeting meaningful savings from these efforts and expect to have more to share about or real estate throughout the course of the here.
With regards to the carriers that the company will realize meaningful savings.
An added liquidity from from from the provisions of the yet including benefits from recent tax falling primarily related to the recovery a previously paid federal income taxes as well as the deferral of social security tax payments employee retention credits and technical corrections to tax depreciation method for qualified improve our property.
Property among other provisions.
Turning to our financial performance to coordinate started off strong and showed continued momentum as a result of changes the rebate and our merchandising and sold initiatives for the first four weeks of fiscal 2000 consolidated comparable sales increased 2.7% building all the strong performance were reported in the fourth quarter. However.
Tobin Vijay really the store closures and stayed home orders significantly impacted skills and results for the balance of the quarter from most of the quarter.
Our brands operated as a digital only business.
Digital traffic and sales achieved significant growth.
However, the parts of digital performance was not enough to offset the water disruption in the quarter.
Net sales were 280 million down 46% compared to 518 million in last year's first quarter. This decrease is primarily due to the impact or nationwide store closures. During the second half of the quarter. Additionally, since last year's first quarter, we permanently closed 84 stores.
For the first quarter, we reported net loss per share $1.55 replace reflecting the impact of 100.
$77 billion in pre tax charges, all of which were non cash.
113 billion of the charges related to the impairment of goodwill and other intangibles 43 million and inventory write downs.
And 21 million in store impairments.
After tax basis, the first quarter impact of these significant charges was 135 million or $1.17 per share of the reported dollar 55 loss per share.
Gross margin in the first quarter was negative 4%. This decline in gross margin reflects the previously referenced 43 million dollar inventory.
Right, all and 23 $21 million in store impairment charges as well as sills de leverage of Oxford the cost.
With the temporary closure of our stores, we believe the $43 million in inventory write off appropriately addressed aged inventory and leaves us with current or new inventory that is customer relevant for the right at the end of first quarter.
The referenced inventory write off in the store impairment charges reduced gross margins $64 million or 23% of sales.
Maintain margin the first quarter was 46% of cells. This decline.
From a more normalized rate in the low Sixtys was primarily the result of the 43 million dollar inventory write off we took in the quarter.
We exited Q1 with total inventories of tutors and 3 million compared to $242 million at end of last year's first quarter.
Effort to minimize excess inventory in one of the covert Nike, we adjusted merchandise receipts to better align with expected market demand.
As a result of the actions taken the company expects to sell through its current inventory does not lead there will be significant inventory write off over the remaining three quarters of the fiscal 2000.
Yes, you have any expenses for the first quarter were down 35 million compared to last year's first quarter, primarily due to the actions I discussed earlier.
To align our cost structure with current and future sales expectations.
Well the first quarter the effective income tax rate was 30% compared to 63% for last year's first quarter. This year's first quarter tax rate reflects benefits provided under the cures act slightly offset by the company's goodwill impairment charges.
And share based compensation expense.
Regarding store openings and closures during the quarter.
We closed nine stores permanently and then no openings for the remainder of the year, we anticipate an additional 30 to 60 permanent store closures in light of a pandemic, we assume we intend to reevaluate each locations future viability and wall, while modify our closure plans accordingly that said stores are a critical.
Part of our future, but they must be in the right location b to rightsize and have the right economics.
Our cash flow in the first quarter was negatively impacted by the koby dissecting pandemic.
In the back half of Q1 with all of our store closed cash flows exceeded cash inflows. This was primarily driven by payments made for inbound first quarter birch receipts at planned levels as well as payments made for other accretive endemic obligations before adjustments were made to merchandising orders and expense savings initiatives.
Took effect.
That's stated we are optimistic about the future. We are excited about the sales lift from our stores reopening and expect to build on our expense savings initiatives.
That are currently forecasted generate $230 million or 24% an expense savings to plan in fiscal 2000.
We believe this positive momentum along with liquidity available through our abbeel, leveraging our own real estate and benefits from the carriers will provide the company with more than sufficient liquidity to operate our business and navigate the cobot 19 headwinds we're experiencing.
Turning to our outlook due to the uncertainty surrounding the current environment. There was no change to our decision to provide did not provide gaudy guidance at this time.
I'll now turn the call back or with the operator for the Q and a portion of the coal.
Thank you.
This time, we'll be happy to take your questions to ask a question the repurchase starving one under telephone keypad.
To withdraw your question. Please press Star then too.
Good answers for primary consideration to others. Please limit yourself to one question.
Ladies first question comes from Susan Anderson with B. Riley. Please.
Please go ahead.
Hi, good morning, Thanks for taking my question.
I was wondering if it could talk about the productivity in the stores that have opened how's the traffic sources conversion then and then I was curious are you seeing significant uptick in that usage of focus as story to open. Thanks.
Thank you so much Susan our reopened boutiques are are achieving 53% of last year's productivity and boutiques sales continue to improve week over week as customers Reengaged with our physical location.
One week, one of our stores reopening we have had a 20 point improvement from week one to weak for.
Great.
Moving and then maybe if you could talk a little bit about style connect I'm curious maybe if there's any metrics you could give around the tool has grown significantly in stores have been closed and then any data you could provide on the tool to give us an idea of how it's driving sales. Thanks.
Yes, our customer community is one of the key to our business and when we furloughed all of our store we equipped each one of our stores with the style connect tool. So that we can keep engagement with our customers. The great thing. During this period, we were able to convert store only customers to also be digital customers during.
This time period.
We were able to not only communicate with customers keep them engaged.
Serve them styling options for this period that was more casual we tripled the sales volume from the same period last year in the three brands combined.
Okay.
Great. That's very helpful. And then lastly, maybe if you could talk about what your expectation is for the 10 crazy that promotional environment in second quarter versus first quarter are you expecting it to get I guess more promotional as you look to clear excess inventory in the stores and then also.
And then environment out there in the malls, particularly at the department stores, what you're expecting thanks.
Sure promotional cadence will be based on sales and we are not planning to be more promotional than last year. We are extremely encouraged by our customer reception of our new goods.
The composition of our inventory being fresher and more season appropriate compared to last year should drive regular price sale in Q2.
Okay.
Thanks, that's very helpful. Thanks, so much I hope, everyone safe and healthy and good luck in second quarter.
Thank you. Thank you very much Susan.
And our next question today comes from rocks are emerging from true partners. Please go ahead.
Great. Good morning, and thanks for taking my question. My question is on some of my you saw.
Really marginal you know sales declines relative to you know your other brands just others in the industry in general and just wondering in the first quarter how performance of intimates was relative to your lounge assortment.
And how you're thinking about the balance between the two segments going forward in light of the larger trend out there for comfort and working from home. Thanks.
We were.
Incredibly pleased with the business and Soma the.
Business is largely season, let you know given our focus on intimate weeks as we expand our assortment in the fall season, we anticipate continued to have a higher demand for the fleet and the lounge categories going forward. The exceptional growth that we saw during this quarter and the new customers that visited the brand. We believe we will have.
Hi, good momentum as we get to the back half of the year.
Okay, great and if I could just ask a question about organizational structure, you know I know that there have been a host of changes and you know currently I don't believe there or any individual brand leaders. So how are you thinking about.
Who is responsible for executing on individual brand vision and leadership and if you could just comment overall and on some of these changes that you've made.
HM actually there are still three brand leaders. The ran leaders are responsible for the merchandise and design and the brand DNA aesthetic. So that is still actually key to our success as we move forward and those three brand leaders will work with the balance of the organization on the efficiencies that we have said that we can be more nimbler.
And we can move quicker since we've made those changes the team has definitely felt the speed to decision.
Okay, great. Thanks, and best of luck apart ongoing recovery into Q.
Thank you.
Our next question.
Thank you and our next question to really comes from German Coppa Burger were jury drew to a research associates. Please go ahead.
Hi, everybody good morning.
I was wondering.
David Please forgive me, but I got on a little bit late I see where you inventories out right now and I was just wondering how we should think about them going forward and what Molly sad about.
The gross margin trends. So maybe mall you could talk little bit about your clearance inventory levels year over year. It sounds like you feel like you have an opportunity for product margin improvement. So when it was we had as the clients level situation sit within within that guidance. Thank you Sir.
How much.
Sure first with respect to the inventories overall the image the inventories are at right now arc, 12% over last year, but the key element that inventory is pressure as result of as Molly indicated we addressed the the dated inventory that was out of out of season.
And disposal that was the Retreatment eller charge I reference right the Michael asked earlier.
So we feel very profitable going forward and we have adjusted receipts over the balance or the or the year I mean, all our planned receipts or 32% less than what we had last year and we believe that our inventory level into Q2 will be about 25% less than what it is today.
And how and how you're planning those for the back half when you think about the inventory.
You know at the start of the pandemic, we took immediate actions to aggressively cut receipt and liquidate our inventory wells in the first quarter end the back half of the year and this was done with the goal of being clean of aged inventory and offering fashion for the customer.
We believe our favorable inventory position enabled us to bringing newness to the customer at the start of the second quarter and we're confident in our assortment and our customers are responding really well for the product that we are offering.
Going into the second half of the year, we are well positioned do the decisions an immediate actions that we took in the quarter.
Visiting the competition, we can see the level of liquidation that's in stores and we cleared our old inventory out of our stores and Weve opened with Russia that we don't see in the competition. We are very comfortable with our inventory levels and we are happy with the inventory investments that we've made particularly in our new product.
Launches like to sum up vanishing Threesixty franchise.
So you think therefore your product margins can be appeal opioid beginning in the second quarter.
Yeah.
[laughter], but then so then we should see your gross margin rate increase offset by ongoing occupancy and expense pressures that right.
Yes, yes.
Oh, that's really great progress so.
That's very exciting and on Anselma can you talk little bit about the adjustment you've made to assortments there to capitalize on the lounge trends and also the work from I'm trying to settle going on right now.
On the team has done an outstanding job on chasing the category.
Wow, we've actually moved up deliveries to be able to respond to customer demand and then able to really react to the bell wireless depletion of Roth and more comfort and the all day Sunday PJ trend that's going on.
Okay, terrific and and just lastly on White House I always think of White houses you know.
Partially as a where we had a work brand with you know great jackets, and Suitings and special occasion, as well I think you've made a shift stay at a more casual but perhaps you could talk about how you think the plan will remain distinctive and in a more competitive category.
Yes, we have an outstanding team in both apparel brands and in both apparel brands, we saw last year, and we really needed to make this pivot more casual aware that served us well in Q1 and it is serving US well now you will see in the White House brand in particular, a lot of new fabrication that.
We are.
Comfortable and more niche in fabrication, though the make it easier for customers, whether they're sitting all day or whether they're walking around and that has it has been in.
Served us well, France, you too and that is a direction that we're taking the brand as we move forward you really can't define what workwear is anymore and so that changed really happened before the pandemic, though we hit the curve right on this one.
Great great congratulations on that and I look forward to two I'm watching your recovery. Thank you.
Thank you.
I don't know question today comes from Marni Shapiro retail Trucker. Please go ahead.
Hi, guys really outstanding for 'em up really crazy period of time, and those leopard masks on white house or just so perfect for you guys.
[noise].
Talk a little bit [laughter], that's the perfect I have one on them already [laughter]. It makes me feel safe all the way over here [laughter] can you talk a little bit about you you said a lot of new customers are coming into the brand digitally and I'm curious if you could just.
Dive into that a little bit are they new customers coming into the company across the brands or are they store only customers that are coming on to digital and then I have one follow up question just on your curbside and stuff.
Yeah, we are seeing new customers to the brands.
That have not shop with the brands before so we really attribute that to the outstanding work that our social teams have done engaging with customers during that time period in an authentic authentic manner.
That's fantastic and then you noted you noted about curbside and buy online.
Do you guys also doing ship from store and if you could just break down. If you are just the cost impact of ship from store versus say buy online pick up at store curbside.
We haven't just directionally.
Yeah.
We definitely have been fulfilling from stores, our fulfillment logic is too obviously, both from the distribution Center first.
And it has been a herculean feat in terms of managing that as doors open and adjusting it each week, so kudos to the to the technology team on how they manage this period. So we we have really managed.
Keep the cost down as much as we can I add during this time period to pull from the DC DC first and actually as new inventories were coming in during receipts at this time period, we reallocated good to be more digital at that time to produce lower costs on shipping not how to be fulfilled from stores.
Fantastic. Thank so much curtain yet clarified marni has.
Really been a.
Opportunity for customers to have that contact list.
Situation in terms of if they wanted it and it's really been different by brand because in you know as she goes brands you couldn't wait to see how favorite on customer that within <unk> people that were more.
So in some cases, he just enjoyed being high.
[laughter].
Testing best of luck in second quarter.
Thank you.
This concludes our question answer session our board to turn the conference broker to bombing for any closing remarks.
I think Rocco.
Thank you very much everyone.
Version, we are extremely fortunate to have three distinct brands each with unique market position, which has served us well during this endemic areas.
As of today, we have opened 63% of our stores and 80% of our fleet will be opened by Friday.
As our loyal customers returns our stores.
Sales in our digital business also continued to accelerate I'm confident that were emerging stronger from the pandemic as we said earlier in a few weeks not only will assume the role as CEO and president and during our high growth turnaround phase them, particularly in this.
Current environment modeling as Sean said her leadership.
I'm confident we have the right path forward.
For sustainable future.
With her at the helm something I'd also like to just take a moment to once again, thank all of our.
Across the country wide, there resilience and their resourcefulness every single day.
Now that company moved forward Atlas speed, we are right now so thanks, everyone.
Thank you for your company number.
Thank you. This conference has now concluded we thank you all for timing for the presentation. You may now disconnect your watch.
Yes.
Yes.