Q3 2020 Tupperware Brands Corp Earnings Call
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At this time, all participant lines in a listen only mode.
Later, well conduct a question and answer session and instructions will follow at that time.
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As a reminder, this conference is being recorded.
I would now like to hand, the conference over to gene Gerard Vice President of Investor Relations you may begin.
Thank you [laughter].
Welcome to the Tupperware brands third quarter 2020 earnings conference call.
With me on today's call are rich <unk>, our executive Vice Chairman Miguel Fernandez, President and CEO and founder Harris, our Chief financial and operations Officer.
Earlier. This morning, we issued a press release announcing our financial results for the third quarter ended September 26 2020.
The press release is available on our company website on our Investor Relations page.
We will begin with our safe Harbor statement.
During the course of today's call. We will make forward looking statements that are subject to risks and uncertainties as described in our press release and in our FCC filings.
You should listen to today's call in the context of that information.
We will also discuss some of our results for the quarter on a non-GAAP basis.
Reconciliations between GAAP and adjusted measures can also be found in our press release.
You can access the release in our forward looking statement language through the Investor Relations section of the company's website, where you can also access a webcast replay of this call later today.
I will now turn the call over to rich for his remarks.
Good morning, and thank you it's been just about a year since the company's board made the decision to change the leadership and direction of this iconic global brands.
Last November the board named interim CEO, Chris Oleary, who is the current board member and in March of this year, we announced Miguel Fernandez as our new CEO, having previously been president of Avon.
In April when we get started we quickly change out the majority of the global leadership team.
Singing new executives, who we worked with previously.
And change the reporting structure in an effort to create a leaner more responsive and effective organization.
This new team quickly and significantly increased the company's rightsizing plans ushered in a new growth strategy and accelerated the divesture of non core assets to strengthen the balance sheet and improve liquidity.
Paul while dealing with the new reality of the world affected by COVID-19.
When we spoke with you in July we described the improved financial performance in the second quarter as the needed pivot that reflected the successful execution of significant cost reductions improvements in liquidity that led to a stronger balance sheet and a renewed focus on supporting the entrepreneurial activities of our global Salesforce.
As we entered the third quarter with the pivot behind US the management team accelerated their focus on the complete turnaround of the company.
With the Rightsizing plans well underway this new leadership team increased their efforts to grow the company's top line.
The results reported today topline.
Top line growth of 21% in local currency and adjusted EPS growth of 233%. We're ahead of the expectations. We had internally just six months ago.
With these favorable results and positive momentum in the business. We believe the turnaround is well underway, albeit very early.
Well, we made significant strides over the past few quarters before I hand, the call over to Mcgill, Let me conclude by restating key strategic elements contained in our growth plans that you will see in the coming quarters.
We were shifting from a push model to both consumer pull and Salesforce push.
We will enter more product categories, where the tupperware brands is given permission by the consumer.
We will create a good better best product and pricing strategy to reach and address the needs of all consumer socio economic levels together with our independent sales force, we're creating more access points for customers to purchase our products in person and online.
We are exploring alternative revenue streams for incremental b to b and new licensing to expand brand awareness.
He leads for our sales force and increased revenue from channels and consumers, we don't reach today.
We were aligning our brand more closely with the new norm of people cooking and eating at home with products and help them save time with food prep and products to help them save money by keeping their food safer and fresher longer.
Additionally, we are increasing our efforts to more closely align our brand with meaningful mega trends, such as the growing gig economy and people working from home.
And most importantly increased consumer desire for reusable products that are environmentally friendly.
As a tangible example of this effort today, we will be announcing a new partnership with the National Parks Foundation focused on supporting waste diversion and reduction efforts in the U.S. National parks.
We're excited to help the parks increased the education awareness and availability of environmentally friendly products reusable.
Were usable product solutions.
Help reduce the waste created from over 300 million annual park visitors each year.
As you can see from our reported results today, we are fixing and strengthening our core business around the world increasing our salesforce is reliance on digital tools expanded use of predictive analytics and bifurcated, our salesforce through segmentation to better address their needs and those of our preferred customers.
It's been an incredibly exciting time these past six months the speed of change has been dramatic and effective and the financial results are pacing ahead of our initial plan.
Thus our confidence grows stronger and stronger every day that our turnaround plans will lead to a bright future for tupperware.
Let me now hand, the call over to our CEO Miguel Fernandez for an update on our top markets.
Thank you rich and good morning, everyone can be the pace of the change has been dramatic but it's been necessary given the state of the business when the team a write in April or need Tupperware leadership team has been focused on quickly improving the financial performance of the company and each of the past two quarters. We believe the changes we've made and the results we reported.
Our EBITDA and then a great turnaround story isn't that much.
Our leadership team along with the support of our board is now implementing an equal strategy for the company.
We live discharges is more consumer focused on in the past given the global strength in consumer acceptance of our iconic grant.
Fundamental to this growth is fixing the core business by improving our sales force and customer experience.
Centene techniques that we know from mobile previous periods, social segmentation to differentiate ourselves from a per customers will result in increased activity and retention of our sales force.
A key element of strengthening our core business has been the rapid embracing enough detail tools for our salesforce to reach and engage with more customers than ever before.
Let me share a high level results total mark that we send over 50% of revenue.
In the third quarter, Brazil sales increased 35% compared to the same period last year and were primarily driven by both high recruiting and retention.
Our salesforce quickly adopt our new owned by recruiting tools, you'll be you've embedded recruitment was sold them those seem pretty cold in 19.
Additionally, we were able to improve retention by segmenting, the salesforce between preferred customers and business builders and focusing on increasing the activity between those two different groups. We have continued to support and of course, our salesforce in Brazil to use detail tools and techniques.
Along with the traditional social selling methods some important way to grow their business.
Going forward we.
We will continue to segment, our Salesforce and targeted special communication to different audiences tour superstores, we will continue to sharing best practices and techniques to recruit I'm, telling products onto a preferred customers will send information about the benefits or have already nobody environmentally friendly and reusable products.
Auto sales have grown in Brazil, we have started to experience some supply chain issues, we putting pressure on prototype a little bit at least at.
The model was higher than forecast.
We're focused on resolving decisions in the coming months, so that we can invest toward the in this key markets to drive sales growth.
Tupperware, Mexico is local currency sales increased 29% compared with the same period last year of.
Of course, so we're up 26% driven by an increase in the average active sales force on their productivity.
Our b to B sales contributed 350 basis points of the growth.
The increase in sales gross activity was due to improved retention accomplished through training unit managers on Salesforce segmentation on the use of digital technology.
An example of this is that a recent detail event, where we had 12000 participants 100000 views on which over 400000 vehicles. This is just one example of how quickly our markets are embracing detailed knowledge to have done just that we.
We saw an increase in northern Splays via mobile apps, which is fantastic because we know the mobile app users have higher ordering frequency compared to end users these higher or the frequency led to a particularly from that we saw this quarter.
Now, let's talk about China, primarily our retail business will continue to be challenging during the quarter with local currency sales down 12% versus last year.
We saw more students closely when opened we now operate six to 200 students throughout China we.
We have a lot of work to do in this key market on a real focus going forward will be improving.
Ill tell from accelerating PUC in relation to increased two to traffic and increase the amount of students real quick.
Effective this week the current leader in Chinas set down after 22 years of service and we expect to have the EBITDA in the coming months.
The pandemic has created a new norm with more people eating at home I mean, Chris consumer concerns regarding food safety and food storage.
Our ability to help satisfy this new consumer mix was most pronounced in our north American business.
The United States, and Canada sales were up 72% compared to the same period of last year, which is the highest level sales growth that we have seen in the rigid in over 20 years and the highest level of absolute sales since fourth quarter of 2002.
The strong performance, who does geography was driven by improved any particular for salesforce attributed to the continued to use on a reduction of our digital tools and Mitch technique.
Nick.
Which were discussed last quarter.
I know that catalogs during the quarter was expanding on the attendance of our annual sales conference frequent then approximately 25.2 3000 people.
Would attend our comp however, with ritual conference we had approximately 8000, sq <unk> with whom we could share new product lunches provide training reclamation, thereby creating a larger community of engaged users.
With the significant growth across three or four top four mark doctrine, frankly, what's above our internal expectations. Just six months ago, we have increasingly put pressure on our supply chain and surface Mount.
Additional move from a macroeconomic point.
Point of view their raw materials and corrugate shortage is slow.
We have taken a white sheet of paper approach to fundamentally fixing our supply chain, including working with third party service providers I never laid in our organizational structure.
Lake name knowledge Saundra's recent promotion to CFO and COO announced in a form 8-K Cup.
Weeks ago, but you know, we're a new management team of alluding the most organizational structure and investment needed to deliver a premium service to our salesforce and customers, while also improving our ability to innovate and accelerating products to the market.
Some of those previous crane experience.
Thanks, Great insight to our global operations.
This decision gets sort of up for trying to focus on coordinating many of our back office functions, including finance 80, and supply chain sourced from support for commercial sales function.
To wrap up a review of our top line performance. This quarter. Let me also comment on the rest of our markets, which are led by our commercial pressing product basically.
Sales from these markets collectively were up 12% in local currency versus the same period of 2000 and team that techniques were using and there was a were making their top four markets, including Sherman share best practices adoption of DBS tools and segmentation.
Also being implemented around the world.
Additionally, we reorganized our product innovation activities on the Patricia with a goal to accelerate new product development and enter into new product categories. This.
These are just a few highlights of the many positive changes were seen across the business, while it's still very early days and.
And a complete turnaround this outcome company the components of our leadership team grow stronger every day that we're making the right changes to the rice pit with the right focus I'm excited about the future I now know did to make sure a lot of the company and by our Global sales Force now, let me turn the call over to sung.
Thanks Miguel.
As you've read and heard today, our turnaround plan is well underway.
Our reported revenue growth was 14% compared to the same quarter last year.
Eliminating the impact from FX, our local currency sales increased 21% compared to last year.
The majority of our markets posted improved local currency sales in the quarter.
North America increased 51% South America increased 36% and Europe increased 25%.
Asia was the only region declined in the quarter down 7% in local currency.
Excluding the weak results in China that Miguel just mentioned Asia would have been down 4%.
So the 19 continue to affect this region, specifically, China Korea, and the Philippines, All markets, where we have the studios our branches that are reliant on foot traffic.
We estimate in total for the company in the quarter that covert Knight team had a negative impact of approximately $13 million.
Increasing access to our products is a key element of our growth strategy in the third quarter almost 4% of our total revenue was through our business partnerships outside of direct selling but.
With approximately 80% in Europe, and the remaining 20% predominantly in North America.
We continue to see this as an opportunity to introduce the brands and new consumers.
By access to consumers, who know west that are not connected to our self for us.
And create lead generation and provide a catalyst for future growth.
Sell through E. Commerce, we're also 4% of our total revenue and contributed to the growth in the quarter.
A final comment on revenue.
It has been six quarters since we achieved over $475 million of quarterly revenue.
And 36 quarters since we achieved double digit sales growth.
As was mentioned earlier, while it's still early in the turnaround we believe the strong growth in revenue as an indicator that our new strategies and tactics are showing signs of success.
Turning now to profit.
Great margins improved 200 basis points to 68% for the quarter, primarily due to lower manufacturing cost, mostly in Europe from favorable volume variances and their efforts related to the turnaround cost savings plan.
Additionally, resin costs are running lower year over year.
In the first quarter I mentioned that our S DNA with not at a sustainable level.
Our turnaround plan cost savings initiatives were developed to rightsize and structurally address this problem and I'm happy to report that in the third quarter as DNA as a percent of sales of 49%, reflecting a 900 basis point improvement attributable to the positive impact of nearly $60 million.
Turnaround plan cost savings in the quarter.
Year to date, we have achieved 120 million of our growth 180 million gold.
Segment profit of 106 million or 22% of sales improved 1100 basis points versus last year.
Three of our regions all achieved operating returns in excess of 20%.
With North America, ending the quarter at 15% or 1200 basis points higher than last year.
Specifically highlighting Europe.
That dramatically improved to $29 million of segment profit.
Up from a loss of 1 million last year.
Ending the quarter at a 24% return on settled.
The effective tax rate for the quarter was 40% versus 44% last year.
Company was able to offset the taxable gain on the early extinguishment of our 2021 debt obligation, but previously reserved foreign tax credits.
And other and utilize guilty tax credit, which had a favorable impact on the rate.
As a result of this strong performance our diluted earnings per share was 65 cents.
It was a 49% or 306% improvement over last year.
[noise] 61 cents the change switched from operational improvements offset by 12 cents of one time non recurring item.
Operationally 68 cents, a turnaround plan savings were slightly offset by seven cents at that back.
While certain onetime items, both positively and negatively impacted diluted earnings per share.
The positive impact included.
11 cents gain on early retirement of debt this year.
And to prior year adjustment that did not repeat in the current year, including the reserve adjustment for the full or beauty business of nine cents and the intangible impairment write off at 22 cents in the prior year.
The negative impact came from a 35% write off of software related to a global ERP rollout and front end sells for solutions that are no longer aligned with our strategic growth plan.
As we shift from a distributor push model to both a consumer pool and Salesforce push model.
It became evident that we need different tool.
Less monolithic and more best of breed cloud based digital I T solution.
Finally, there was an additional negative impact of 15 cents from other nonrecurring items, including a prior year gain from certain landfills.
[noise] more indicative of earning potential of the business was the adjusted earnings per share of $1.20, 233% from last year on the increase in segment profit, reflecting the positive impact of our turnaround plan.
At this level of revenue and tax rate combined with our Rightsizing effort investors should expect us to deliver and adjusted earnings per share in the range of one dollar to dollar 20 going forward.
Now to liquidity and our efforts associated with strengthening our capital structure and reducing our debt.
Cash flow from operations net of investing activity was 61 million in the quarter and $108 million year to date. This represented a 112 million dollar improvement over last year Prime.
Primarily attributable to the lower capital spending and improved inventory management efforts associated with the turnaround plan.
Previously, we announced our commitment to exiting noncore assets.
We continue to work on divestitures to improve our liquidity and strengthening our capital structure and expect a few of these transactions to close in the fourth quarter.
We also continued our proactive efforts to address the maturity of our June 2021 that obligation.
In the third quarter, we further reduced our outstanding notes through open market purchases below par by 121 million, resulting in a current balance of 380 million.
We continue to actively evaluate refinancing options with our advisors and will continue to pursue unlocking cash from noncore asset sales to address the June 2021 maturity.
We ended the quarter with a debt to adjusted EBITDA ratio of 3.72 times.
Well below the covenant requirement of less than 5.25 times.
We believe the results reported today provide investors with pre at the initial efforts of our turnaround plan are working.
Restoring growth to our core business except.
Expansion into new channels right.
Rightsizing, our business strengthening our balance sheet and improving liquidity to create a stronger more competitive company for the future.
Lastly.
Due to the ongoing concerns of the global impact from the pandemic, we will not provide financial guidance at that time.
I will now turn the call back over for questions and answers.
Uh huh.
As a reminder to ask a question even need to press star one on your telephone to we try your question, perhaps the pound key.
Again, if we were like you asked a question press Star then number one on your telephone keypad.
He signed by I will be compiled the Kenmare Uh huh.
Your first question comes from the line of who and didn't Nicholas Your line is open.
Hi, good morning.
My first question has to do actually with China. I know you said there was a management change pending they are you know with the new person coming in can you talk about on sort of the strategic direction of China do you still think it's right to have mostly a retail store model do you anticipate you know, making big shifts in what products you offer.
You know kind of what what do you think it takes to get that that market back up and growing.
So high when did this is a this is me all good morning. So I suppose you know our business in China is a probably a retail one.
And we are starting a process for the search of a of an ideal candidate on if it takes us a month, two or three or whatever it takes us, but we really want to want to have the right can do there in terms of the business that.
The way we see it is the combination of all of our outlets or studios.
With with E commerce so.
So we want to we want to have the studios to to be able to offer an offline and online.
Experience and also is going to be based on a lot of product innovation.
As you probably know right now we our product offering in China is very limited, but we're going to be opening up not only for the rest of the of the product portfolio that we sell around the world, but also to other specific innovation.
Focused on on China, So, it's going to be a little bit more of the commercial leader a love more of a product innovation in China. So that's the overall strategy in China.
But again, we see China is one of a big markets I know with kids huge potential.
Fair that sounds great.
And then my second question is in terms of some of the supply chain issues, you talked about in Brazil, and I think you mentioned also maybe in North America I'm, just given the remarkable sales growth. It makes sense that you might have some supply chain issues, but did that impact sort of the recruiting or.
Retention or sales order rates, if you look through the quarter, you know work, where the sales trends. If you will the same or similar between August September and October or did you see any slow down as the supply chain issues sort of took hold.
So so they actually.
Kept on going up so so the trend is still positive, which you know it's good news, but also puts even more pressure in our supply chain, but where you know us.
As you heard in the script, we recently announced a senator's promotion to takeover the fuel position she is.
Fully nursing and solving dose of those issues that we have temporarily yeah, hi, Wendy This is Sandra and I'll just quickly speak to the fact that historically tupperware, it's been really internally focused I'm limited by manufacturing and surely at the types of growth rates were seeing now there's a finite supply within our internal.
That work, so we're turning more and more to external supply whether that third party sourced or whether we're working with a third party manufacturing contractors and so that's going to help us to extend that and then we're actively investing in our distribution network. So that we can meet the increased demand I'm in a in a timely manner and so going forward will be.
Focusing more on partnerships to expand our supply chain.
Got it and then my last question. Thank you for Indulging me is just on I mean, you've obviously made phenomenal progress onto the balance sheet on so my question specifically is with regard to Fuller, Mexico I know you know that's been contemplated maybe as.
An asset sale or divestiture candidate to drum up cash, but but if you don't need the cash is that a business that you actually think could grow in the future or do you do you like the opportunity there or do you still see this just isn't for us. So even if we don't really need the cash we still want to divest it.
Yeah. So many I think we've said on a prior call. We're really focused on our core business and anything that's not core we're looking for the opportunity to divest of that whether that's real estate or beauty and so you know we are making that a priority and continuing to focus on that we are working with brokers and to help us to execute on on that priority and we.
We'll look to focus on the core and the best of an encore.
Great. Thank you so much.
Your next question comes from the line of cleaned up what kind of why Sir you may ask your question.
Hi, Thank you I was wondering if you Miguel could elaborate a little bit on the good better best strategy that you've been referring to is that already being put into practice or is that still to come and would you consider sort of starting a sub brand.
Under the main umbrella brand to execute that or how would you exactly go about that strategy. Thanks.
[noise] totally into good morning, yes, so are we.
We've already started with some pilots around the world.
As you know the whole strategy is to make sure that we offer the consumer a competitive pricing and quality come.
Compared to any or any other competitor versus on an even if its a.
A change in the in our value chain.
No. We we normally pay the same amount to throw salesforce, regardless of what part we are so we are going to be.
You know I, we're gonna be adjusting some of those margins on also offering to make to make sure that we chip DOSA.
Those price points in terms of brand. Yes, we are we're gonna be developing sub brands under the umbrella of the Tupperware brand. It could be you know were still in you know soon conversations but the more we're going to get to them, we're going to get.
We're getting traction we're going to continue to develop more more brands just to say any other major brand. We're doing like you know we're citizens would to have their C. N. S class, we're going to have our topper Echo Tupper or you know probably premature made on the premium we still haven't decided that the names of them, but it's going to be sub brands within the tupperware umbrella brand.
Great. Thank you and then HM.
No you've done an amazing job on the cost reduction and your margins and earnings level are you know amazing.
I guess I was curious what you are thinking going forward once you've kind of now right size the cost structure do.
Do you plan on ongoing productivity initiatives for 2021 is there more cost to come out or is this the end of it and just to clarify Sandra did you mean, a dollar to $1.20 percent quarterly earnings going forward is that what you meant by that thank you.
Yes, Thanks, Mike Let me start with that yes at this revenue level in tax rate, we would expect that on a quarterly basis for that to be somewhere around a dollar to dollar 20 last quarter at that revenue level. We said 80 to 85 for for reference in regard to the cost reduction and sustainability of the margins I'll also reinforce what we did say last quarter.
That you know a portion of the 180 million gross savings is related to kind of in 19. So we do expect that 75% of that carries into next year. So you know I roughly I think that would have about 300 basis point margin impact if everything stayed steady, but you know the majority of those cost savings. We go for it what I would emphasize.
Hi is that we have you know.
Signified and noted that ours a S. DNA levels are very high and I'm happy that this quarter, we have a you know a.
Achieved less than 50% of cells on S. DNA I do still know that there's room in that and you know we haven't necessarily made a commitment on a go forward basis are giving guidance on that but there is opportunity I also think as I assume this new role of C. O that there's further opportunities to leverage across the enterprise.
We've been very regionally and market specific and there's a lot of opportunity to continue to optimize you spend and savings across the board. If we leverage you are spending across the enterprise.
Thank you and then just one final question for me in terms of your exploration of continuing to expand your b to B and partnership sales can you explain how in a direct selling model that you avoid channel count.
Click so if a sales rep sees the product being sold at a retailer or some other partner how do you kind of avoid a negative impact on the direct selling business from channel conflict. Thanks.
So thank you Linda so I'll take that one.
It could be you know that you see as ways different categories different products.
Fielding all under the same brand under the same quality and the same I'm going to call. It R&D behind so that does that uses one button, where where there's a similar product to be sold you can play with the sizes or even the colors or even you.
You know little things, a co branding and I'm. So one so there's a there's different ways of Oh, okay, working working around that but most importantly, its always having a really close relationship and collaboration with our local sales leaders around the world. So they know what it's coming in and how it's coming.
We can work together to see which one is it the right way to do it. Many times you can actually get it get it on a on a different channel in these in the sector, if a country that or we don't have any penetration in our direct selling channel and so on so you can you can play with a nickel we filled those.
With with all those elements and also you know the big advantage for this is that we're going to get a lot of new customers into into our brand and those are leads that we're going to be feeding tour recurrent a base of direct sellers, we should they could they were going to see us very positive I'm very excited about that are synergistic approach that we're going.
The following.
Okay. Thank you that's all for me.
Thanks Linda.
Your last question comes from trying to keep O'hara. Your line is open.
Hi, good morning, Thanks for taking the question.
Hi, Steve Hi.
I guess, you know I'm just moving to you know the commentary around the earnings a you know going forward you know.
But on the tax rate <unk>.
I mean, it was low this quarter I guess relative to or at least my expectations is.
Is there a right way to think about it going forward is just kind of a the right way to think about the tax rate more or less or is it still going to be much higher than the typical kind of corporate tax rate that we think about.
Yes, Steve we're actively working on our strategy and a lot of our profits have been generated internationally for quite some time and now that shifting as we are starting to regrow in the U.S. and so that's an important factor. We also started to work over all on our tax strategy to to lower our tax rate more in line with.
More U.S. based companies and so that is a strategy for us as we go forward and we started taking action in that area I will say that this year. The tax rate will continue on a quarterly basis to be rather and not an official were bit lumpy just because the fact that we you know calculate an annual tax rate have to back into the quarter and because there's a lot of the things that and we're actually going up.
Official trust this year, such as the ability to use our foreign tax credits that are guilty credits offset some of the gains on retirement of debt those are working in our favor and so.
Yeah, it will be a little difficult quarter by quarter to navigate you know last quarter. We ended with a attach rate at 22.8 in this quarter were 40.3 definitely our tax rate will be much lower than we previously reported as we've done for the strategy and also when we use some of these credits that we've had for a while that we do have you know a way to go.
So before we become more normalized with other U.S. companies just based upon our international portfolio.
Okay.
That's helpful and then.
Maybe just on the unallocated.
I think it kind of jumped up.
In the quarter was there something in there was it related to the debt purchase or anything I think it was 13 million on an adjusted basis.
[noise] on the unallocated.
At this point, Steve Nothing is a you know coming to mind. So we can get back with you on that note I don't know of anything that really what I call. It the unallocated to change and totally in our SDN and prayed ratably for the quarter and so yeah, we'll look back at a specific unallocated amount that you're talking about.
Okay and then.
So in terms of the the the cost savings that's kind of left.
To.
Get in for Q can you just remind me are you know what's kind of left it's kind of.
Harvest in Fourq you.
And then you know I think typically the fourth quarter is stronger than the third quarter.
It is that you know.
Likely to be the case or is there a reason for that not to be the case this year, maybe different than previous years.
Yes, Steve So at this time, you know, we really don't want to provide guidance for the fourth quarter just due to the uncertainties around the continued impact of the pandemic and other things what we have committed to is that our total cost savings goal for the year is when 80, we've delivered a 120 of that within the last two quarters. So you know it's really.
Animals, with whom we're on track to deliver the remaining 60 million yeah by the end of the year and then you know Weve also provided insights into our debt, which is that and we have $380 million remaining after making the open market purchases and we continue to work on that and we think that with patience and our performance. It will make the right decision at the right time in regard to that.
So that's what I can give you in the form of future.
Information.
Okay, Alright, thank you very much.
Oh.
There are no further question at this time I will turn the call back to Mr. family Golf Fernandes put dosing remark.
Thank you well I'm pleased with our financial performance I'm, even more encouraged by the initial signs of fixing the core business evidenced by the increased activity on productivity or sales force were.
We're recruiting a return or sole source on levels not seen in quite some time or.
Our salesforce remains an important component to our long term growth strategy and I'm proud of the team members ability to embrace change about the use of digital tools and techniques to meet the challenges of today and tomorrow.
Wavering commitment insurers. This iconic household brand will continue to meet our consumers.
Moving needs.
Over the next year other key elements of our growth strategy will be implemented and we look forward to show those results with you on future earnings calls.
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