Q2 2021 PriceSmart Inc Earnings Call
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Hi, its price smart.
And today, Okay and may of half year.
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Yes, Rachel Smith.
Name and your company as well.
A year of.
Please go ahead.
And joining.
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We will be talking about our March sales, which we released this morning.
Morning, you can find all three of documents on our Investor Relations website at investors day price Smart Dot Com, where you can also sign up for email alerts as a reminder, all statements made on this conference call other than statements of historical fact are forward looking statements concerning the companys anticipated plans revenues and related matters.
Forward looking statements include but are not limited to statements containing the words expect believe will may should estimate and similar expressions.
All forward looking statements are based on current expectations and assumptions as of today April 9th 2021.
These statements are subject to risks and uncertainties that could cause actual results to differ materially including the risks detailed in the company's most recent annual report on form 10-K, and other filings with the SEC, which are accessible on the SEC's website at Www Dot FCC Dot Gov. These risks may be updated from time of.
The time the.
The company undertakes no obligation to update forward looking statements made during this call now I will turn the call over to Sherri bear and Big price Martz Chief Executive Officer.
Thank you Michael and good day, everyone.
And we hope you're all healthy and safe. Thank you for joining us today and for your interest and our company, we will be sharing the strong results from our fiscal second quarter and how we're continuing to build on the momentum we've developed as we crossed the midpoint of fiscal 2020 one.
Our adherence to the founding principles of this company has carried us through a myriad of continuing challenges brought on by Covid and its related effect.
We remain vigilant and our unwavering commitment to the safety of our members and employees.
Extensive protocols, we implemented to provide a safe and healthy environment continue.
For instance, we're providing global employees with paid time off for vaccines, where and when available.
Additionally, we continue to support our employees with bonus opportunities benefits and enhanced safety measures.
Over the past year and the pandemic has challenged us in many ways. However.
However, I believe it's only strengthened us as a team it's incredible to watch our team addressed of short term challenges while at the same time remaining focused on the long term objectives, we set for ourselves.
We believe we're starting to see the results of some of the changes and enhancements we've made over the past couple of years.
Our commitment to the six rights of merchandising continues to be at the core of our business.
Our members trust that we're going to have the right merchandise and the right place at the right time, and the right quantity and the right condition and at the right price.
Thanks to the dedication of our team and the trust of our members net merchandise sales grew three 1% and comparable net merchandise sales grew one one per cent compared to the same three months period a year ago.
Currency fluctuations negatively impacted net merchandise sales and comparable net merchandise sales by three 2% and 3% respectively for the quarter.
Note that we had one less shopping day due to the leap year and February of the prior year.
During the second quarter, we saw an uptick of COVID-19 related restrictions, which led to more clubs days loss compared to the prior sequential quarter we.
We had 142 clubs they've closed during this holiday quarter versus 51, and the prior sequential quarter.
To give you more perspective, we had 225 clubs days closed and the third quarter of fiscal year, 2020, which is from March to May.
Similar to what we saw on the United States and.
Infection rates have risen dramatically and our market.
<unk> brought the return of weekend club closures restricted hours and reduced traffic, primarily and Panama, which has seven clubs, but we also experienced similar restrictions and Colombia, where we have eight clubs.
And in some of our Caribbean markets as well.
In addition, we face sales headwinds due to our decision to reduce the importation of U S sourced merchandise to our Trinidad market, where we have four clubs and the results of the continued U S dollar of illiquidity.
As expected this contributed to a decline in sales and membership and that market during the second quarter.
Michael will discuss more about that and a few minutes.
Despite these challenges we continue to provide our members with a great inventory mix and reasons to visit the club.
Our hard line team has built on the momentum we gained from the first quarter and extended that streak into the second quarter, they've done a tremendous job anticipating demand and working with our global suppliers to secure inventory.
As a result of hard lines category experienced approximately eight 5% comparable sales growth during the period compared to the prior year quarter.
Leading this growth where business machine major appliances, and electronic departments at grew 183%, 84% and 27% respectively.
Our seafood produce cleaning and grocery departments also performed well with 11%, 7% five per cent and 4% growth respectively.
I've mentioned on previous calls, we continue to make investments and our direct farm program to enhance our offerings of healthier food options for our members and we're starting to see these investments pay off.
Our produce distribution centers allow us to provide high quality farms and people produce quicker and more efficiently and to support our local commerce and Farmington immunity.
We currently operate produce distribution centers and three markets and are actively seeking to expand to other markets as well.
Although our fresh and produce departments did well we did have challenges during the quarter with our candy snacks and juices departments, and our food category and all.
So sales of our housewares and toys categories decreased due to our decision to scale back on long lead time orders based on anticipated shifts and demand because of the pandemic.
Our click and go curbside and delivery service represented three 1% of our net merchandise sales during the quarter per.
Curbside pickup and delivery of available and all of our clubs and in all markets.
During the quarter, we introduced the option for our members to select specific dates and windows of time for curbside pickup and delivery, which allows us to operate more efficiently improve our service and offer greater convenience to our members.
Over the past several months, we think delivery continue to become a larger portion of our total click and grow sales.
Our grocery health and beauty and cleaning departments are currently our best performers on the E Commerce platform.
Right.
We also continue to expand our mobile app capabilities.
Instance, we recently added the capability for our members of scanner product from their place of work or at home cause you availability at surrounding club and plan to expand that functionality to enable and members to add to their cart.
Our members also continue to respond favorably to our online platform for their memberships transactions.
14% from all of new sign ups and the second quarter were completed online that's up from 11% at the end of the first quarter.
Now some of the important benefits on online sign ups and renewals is that it provides the opportunity for auto renew on like a subscription and auto payment and addition to capturing high quality accurate and valuable member of information.
Turning to supply chain and inventory our merchandising team continues to do a great job sourcing inventory. Despite continued shipping container shortages at the point of origin of out of Asia.
This has caused some time delays with certain departments, such as outdoor patio sporting goods home furniture apparel and domestics.
We did a great job optimizing our inventory for the holiday season, and as a result, markdowns and spoilage were significantly less this quarter compared to the same prior year period.
Similar to Q1, there was a higher demand and our non food categories, particularly electronics of.
Competitive advantage is that we've been able to source of electronics at excellent prices and had good on hand inventory, while others struggled in this area.
We see this is of great opportunity and we've made strategic inventory investments and various non true departments. So as a result, our average inventory per club increased slightly versus the comparable prior year quarter.
Our total number of membership accounts decreased three 6% during the second quarter of fiscal year 2021, when compared to the comparable prior year period.
We attribute that primarily to the restrictions on mobility.
However, we saw a two 4% increase and our membership accounts since August 31, and 2020 and in club traffic continued to improve.
Our trailing 12 month renewal rate was 81 five per cent and 86, 2% for the period ended February 28, 2021, and February 29 2020, respectively.
Colombia experienced the largest percentage decline followed by Central America and on the Caribbean. However are 81, 5% trailing 12 month renewal rate has improved from a low of 85% at the end of August of restrictions ease.
And as noted previously we've recently seen and encouraging increase and membership sign ups and renewals completed online.
We're continuing to enhance the value of our membership to a focus on member wellness.
This offering includes healthy food, our optical centers with 28 locations open at the end of the quarter and we expect to have over 40 and operations by the end of this fiscal year up from 17 at the end of fiscal 2020.
We also recently opened our first two price Smart farm there during this calendar year.
We will begin piloting in club audiology centers as well this year.
Now I'd like to give you a brief update about our real estate and construction activities.
We recently began construction of a new warehouse club and Bucaramanga, Colombia of it is expected to open and the fall of 2021 day.
This will be our ninth club and Columbia and follows the successful opening of our eight clubs at least I can just a few months ago.
It will be of smaller format club. We believe this smaller format club coupled with our omni channel capabilities extend our reach and presence and these regional and secondary city locations and represents a significant way for the company to grow.
Once this club is open along with the New club, we expect to open another club in Guatemala, and another one and Jamaica. This fall and next spring respectively.
At that point, we will have reached a new company milestone at 50 warehouse clubs.
As I've noted before and you won't club openings are likely at least initially to adversely impact our comparable net merchandise sales. However, we will move forward with new club openings, when we believe that and the long run such expansion and leads to growth by way of incremental membership gross and net merchandise sales and services greater leverage.
And of better shopping experience for our members.
I'd like to spend a moment on our March sales that we released earlier today.
Mark the one year anniversary from when we began to experience the impact of of COVID-19, pandemic as well as the month of our members began stocking up on merchandise ahead of the uncertainties surrounding the global pandemic.
We saw significant sales growth and the month of March last year was a surge and net sales growth of $17 one per cent and comparable net merchandise sales growth of $15 seven per cent.
And as a result, we are comping against a COVID-19 related stock at phenomenon of driving high sales growth and March of last year.
Despite the COVID-19 driven surge and buying in March 2020, our net merchandise sales for March 2021 were up versus last year's sales coming in at $307 $6 million and increase of <unk>, 5% versus a year ago with a negative FX impact of one 5% or $4 $4 million.
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For the four weeks ended March 28, 2021 comparable net merchandise sales decreased five 9% with a negative FX impact of one 4%.
We were very pleased with our total sales results in March which were at Historic Records for the company outside of our holiday driven December sales.
For us Covid has illuminated the fact that our fundamental business model prior investments and commitments to becoming a more critical part of our members' lives.
It's a great value proposition.
We will continue to expand our services and continue to provide the best of curated selection of merchandise all under one roof.
The retail industry is constantly evolving and our members have made it clear that we are among the most responsive.
That can make us the retailer of choice and all of our markets.
We believe that taking care of our members our team our communities and continuing to expand our business and a responsible manner.
On a continued path for success.
So to wrap it up I'm proud of our entire team of over 10000 employees, whether those working from home or remotely or of frontline workers and our clubs and distribution centers.
We all look forward to continuing to working together to build on the future and expand on what it means could be of price might remember.
Thank you and I'll now turn the call over to Michael.
Thank you Sherry good morning, or afternoon to everyone and thanks for joining us today total.
Total revenues and net merchandise sales for the quarter were at $937.6 million and $898 $4 million respectively.
Representing increases of three 4% and three 1% over the comparable prior year period, respectively.
As a reminder, and including the clubs we opened in Liberia, Costa Rica, and June 2020 in Bogota, Colombia and December 2020, we ended this quarter with 47 warehouse clubs compared to 45 clubs at the end of the second quarter of fiscal 2020.
Our comparable net merchandise sales growth was one one per cent for the 13 weeks and.
At February 28 2021.
Foreign currency fluctuations had a negative impact on both of them at merchandize and comparable net merchandise sales of approximately $27 million or 320 basis points from $26 million or 300 basis points respectively.
By segment, and Central America, and where we had 26 clubs at quarter end net merchandise sales increased three 6% with of $2 four per cent increase and comparable net merchandise sales.
Our of Honduras, El Salvador, Guatemala, and Nicaragua, and markets contributed approximately 300 basis points of positive impact to total comparable net merchandise sales.
This contribution was partially offset by a 140 basis points decrease calling from Panama and Costa Rica for club closures and currency devaluation and contributed to the decreases in sales respectively.
And the Caribbean region, where we had 13 clubs at quarter end total net merchandise sales declines of <unk>, 6%, but comparable net merchandise sales increased 0.8 per cent.
The Dominican Republic continued its stellar sales performance during the COVID-19 Thunder on it with double digit sales growth. Despite a significant foreign currency devaluation compared to the prior year period.
And Trinidad as mentioned on our previous earnings call, we began and limiting temporarily and in line with our ability to source tradable currencies.
U S shipments to that market during the first quarter because of the ongoing U S dollar of illiquidity situation.
A reduction of your shipments has adversely impacted sales and Trinidad were in line with expectations comparable net merchandise sales declined 10, 7% and the second quarter.
We were able to source and a modest increase and tradable currencies during the second quarter compared to the first quarter and are working on multiple projects to increase and sources of U S dollars and such.
Such as by exporting goods produced in Trinidad.
And therefore, we began increasing of our levels of imported merchandize and Trinidad and towards the end of our second fiscal quarter.
However, we expect similar albeit at slightly moderated declines and sales in this market going forward until we are able to establish more reliable sources of tradable currencies and subsequently more imported goods.
While we are and the process of implementing more sustainable sources of U S dollars and Trinidad our exposure to a potential devaluation of the Trinidad dollar and their growth.
Moving back to segment sales and Colombia, where we had at clubs opened during the quarter net merchandise sales increased nine seven per cent and comparable numbers of life sales decreased four five per cent positively contributing 120 basis points to total net merchandise sales, but negatively impacting total comparable net merchandise sales by approximately.
A few basis points. This comparable sales decline and Colombia is primarily attributable to sales transfers from our newly opened warehouse club in Bogota and December of 2000 and for me.
The impact of currency on total and comparable net merchandise sales and Colombia was significant at negative four 3% and three 8% respectively for the quarter.
Currency devaluation continues to be a challenge and Columbia, but we're employing different approaches and an effort to mitigate the impact.
Such of sourcing of locally produced goods and actively managing our sales prices and foreign currency exposure there.
Turning to gross margins total gross margin on net merchandise sales came in at 16%.
At 130 basis point improvement over the same quarter of last year.
The 130 basis point increase was primarily driven by the liquidity premium we have priced into our imported merchandise and Trinidad and the result of a more focused merchandising strategies and inventory management, resulting in fewer markdowns.
Total revenue margins increased to 17, 8% of total revenues an increase of 120 basis points versus the same period last year.
This is the result of a higher gross margins of 130 basis points that I mentioned previously.
Partially offset by lower revenue margins from our cost of euro and marketplace business from the quarter of 10 basis points.
Selling general and administrative expenses for the quarter were 13% of total revenue an increase of 70 basis points versus the same period last year.
And total SG&A expenses increased $10 $1 million compared to the prior year.
Warehouse club and other operations expenses contributed 40 basis points of the increase primarily due to the fact that our new clubs in Colombia, and Costa Rica had not yet reached normalized sales levels.
And at a special bonus to all non management employees for phenomenal performance.
General and administrative expenses contributed the other 30 basis points of the increase primarily due to investments to support our technology and talent development.
Operating income was $45 million of four 8% of total revenue and the second quarter of fiscal 2021.
And bear to 38 8 million or four three percentage of total revenue for the same period last year.
This reflects the increase and total revenue margin primarily from net merchandise sales of 120 basis points.
Partially offset by the 70 basis point decrease due to deleveraging of SG&A expenses of one of the comparable prior year period.
Net interest expense increases are of point $5 million sort of second quarter, primarily due to higher average long term loan balances to fund our capital projects and drawdowns on our short term lines of credits as part of our COVID-19 related efforts to secure cash.
Other expenses of zero point $3 million of our primarily from the cost of converting Trinidad dollars and to other tradable currencies, partially offset by gains from devaluation of the Jamaican dollar due to our U S. Dollar denominated cash reserves designated to fund the construction of our new Port more club.
Our effective tax rate for the second quarter of fiscal 2021 came in at slightly higher than last year at 33, 9% versus 33, 1% of a year ago.
Primarily related to changes and are uncertain and income tax positions and our Q1 fiscal 2021 earnings call, we already four per cent.
However, due to our strong results from the first half of fiscal 2021, we now expect of full fiscal year 2021, and effective tax rate to be and the range of 33 to 34 per cent.
Net income for the second quarter of fiscal year, 2021 was $28 2 million or <unk> 92 cents per diluted share compared to $25 $6 million or <unk> 85 per diluted share and the pre COVID-19 comparable prior year period.
Our balance sheet remains very strong we ended the quarter with cash cash equivalents and restricted cash totaling $187 $8 million and increase of $51 million versus the same period a year ago.
From a cash flow perspective of $59 $3 million decrease and net cash provided by operating activities was primarily due to decreases and working capital as our temporary extension of vendor terms negotiated as part of our initial response to the COVID-19 pandemic began expiring during the first half of the fiscal year.
It is important to note that many of these extended vendor terms.
Have or will continue to revert to pre COVID-19 terms through the third quarter of fiscal year 2021.
However, as I previously mentioned, we do expect to end of third quarter with longer average vendor terms than we had pre COVID-19, which will carry forward and definitely also.
And I assure you mentioned, we are increasing and our inventory position, particularly in the non foods categories, such as electronics to meet increased demand and prepare for potential supply challenges and this area.
Okay.
Net cash used in investing activities increased by $3 4 million compared to the prior year, primarily due to the increase in investments and certificates of deposit alternatives of dollars that we have on hand, and while we work actively to convert these turned on a dollars and to U S dollars as availability of allows.
Offset by fewer construction of expenditures.
The $85 $2 million change from cash provided by cash used in financing activities and is primarily the result of of a net decrease and proceeds from long term debt and net repayments of short term borrowings.
We continue to be vigilant about our cash position and ready to adapt to sudden changes in circumstances.
While some uncertainty remains and our markets about the extent and duration of the pandemic, we have confidence and our ability to continue our operations successfully.
And also continuing to invest and the future. During Q3 of this fiscal year. We of finished paying down the remaining short term lines of credit, which we had access to as part of our initial COVID-19 response and Q3 of last year.
And closing.
And we're very pleased with where we stand halfway through the fiscal year and I'm confident that the investments, we're making and our future capabilities combined with our ongoing commitment to the principles of the six rights of merchandising will propel us into the future I want to express my complete confidence and our team and that these investments and talent real estate and our digitally enabled omni channel.
Platform have positioned us well for continued growth. Thank you all three of support and engagement and our journey on your long term investment and a growth horizon, we believe will be strong for years to come.
Now I'll turn the call over to the operator to take your questions.
You may now start taking our callers questions.
Ploys globally.
Even when our offices reopen we will remain a digital first organization bridging the physical and virtual.
I'm, sorry, but that seems to be and air book.
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And not involving our company.
We will now begin the question and answer session to ask a question you May Press Star then one on your Touchtone phone.
If youre using a speakerphone please pick up your handset before pressing the keys.
To withdraw your question. Please press Star then two and at this time, we'll pause momentarily to assemble our roster.
Again to ask a question. Please press Star then one.
And our first question will come from Jon Braatz with Kansas City Capital. Please go ahead and good.
Good morning, Mike.
Good morning, John at.
Just wanted to touch on a couple of items.
First of all.
Your your G&A of G&A expenses.
We're a little bit and there was sort of a step up and and spending in that area.
A new initiative or something new that that generate at that increase because it was rather significant but with some new programs implemented and in the quarter.
Yeah.
John though it's basically we've embarked on all along about how we're ramping up our spending and both technology and and.
And and supportive of at this in general of above and beyond just the omni channel initiatives and then we're also investing in talent, but there's nothing specific I think you know as we as you see the sales start to increase as a percentage of sales of we expect that that would stabilize okay, but as far as dollar values and we're obviously continuing diverse.
And the and the organization of the future growth Okay. Okay.
Sure.
Materiality of it may not be so much but you did ask a question about new initiatives and.
I'm not sure if it came through clearly that we have started with pharmacy, yes, and our and club as well and we're investing and additional services.
Okay. Okay.
Michael on on the gross margin front.
The pricing actions and Trinidad I think and <unk>.
And you drove a 90 basis point improvement and your gross margins.
And at the consolidated gross margins.
As you go forward do you think you'll still have that similar type of impact.
As a result of of pricing actions and Trinidad.
Well I think we I think we said that was primarily from Trinidad, but yeah. I mean at this point, where there's nothing has really changed on the ground and we're maintaining that I think I mentioned last quarter of at the hope would be that eventually things stabilize and and and of.
You know the U S dollars start to flow again, and that would not be something that we would want it.
Continue from a long term, but at this point theres nothing changed and that would allow us to change that okay. Okay. Thank you and then share it on the March March sales wash I thought were very very good Easter was one week earlier this year than last year.
Did that have any impact do you think that had any impact on on on the March sales. This.
And this year.
And yes, I do but there's also closures that go with the holidays as well so it's difficult to evaluate exactly how that's going to shift them in terms of April.
But but we you know we we are looking forward to April comps just.
And just as we are lapping against a very.
As of March of last year.
And we'll be lapping against and April where there were a significant closures share and so timing of distorting things when it comes to comps.
Yes, Okay, Okay, and then lastly.
Sure you'd talked a little bit about supply chain.
Issues and I think that's gonna be of recurrent theme, we hear from a lot of companies. This this quarter are you seen any improvement.
And he easing of at some of those issues or is at the sort of Hum sort of steady as you go so to speak.
Well the the shortage of containers from Asia is a global issue and and that is ongoing but what we have done is we've.
Become much stronger and are stronger and our ability to source from alternative.
Sources.
Regionally and we've done a really good job of being able to.
On shortening the lead times and make sure that we are maintaining good in stocks are of those those categories that we think are members of our most seeking at this time. So we are really vigilant about it we're aware of the risk you know whether at the pandemic have surges.
And that are unexpected and we know there are extra analogies that we can't control, but internally and we've been finding ways to be able to mitigate that risk to be able to source from alternative resources of our source of.
And also Inc.
Kris our efficiencies using the Costa Rica regional distribution center.
Alright, alright, thank you very much.
Thank you John.
The next question will come from Rodrigo <unk> with Scotiabank. Please go ahead.
Thank you and thanks for the call Queen of couple of questions from on my side. The first one of these related to the smaller format.
Sounds like.
Like you are increasingly perhaps at the margin I'm more optimistic around that.
Format is there anything in particular that you could share from sort of returns on sales per square metre anything that that can help us understand a little bit more the the the financial metrics of that format and then Oh My God awful lot of a question Mark.
Okay. So I don't believe that we share our sales per square footage of Inc.
Of our clubs.
And although we've had some small format that has now exceeded of year. The fact that we continue to want to.
Build on that approach should be a strong indication of about our confidence and our ability to have a profitable and.
And positive return on on those investments the smaller format.
Application for us and the company and both metropolitan areas because of the shortage of of land and the expense.
And as well as a more outlying areas, where we can broaden our reach of a gym members, where land is far less expensive and so the thresholds for our internal metric and our internal benchmarking is easier to achieve so we look at each.
One on a case by case basis, and we have internal standards in terms of what we'd like to see by way of of return and what we expect to see before we greenlight any one of those projects. So we believe the small format has good application for our company and.
But everything is looked at on a case by case basis.
Got it and now that you have on online offering and all.
All stores, including I'm guessing they're smaller formats.
And does that mean, Dod or is it too early to tell whether having that additional extended kind of catalog offering make.
It makes those smaller stores, even more appealing because now perhaps you don't need to have as much space for for a lot of.
Big ticket items.
That is clearly one of the opportunities that we have by virtue of having built up our omni channel capabilities to allow for strategic selection of what is carried on the shelves versus what is offered online and in addition to the strategic implementation.
Of.
Domestic distribution centers and regional distribution centers that allow us to continue to evaluate the best way to pulse merchandise and to get merchandise into the hands of our members at the lowest possible price. So the smaller formats supported by omni channel and supported by the right distribution system.
Is it is and the opportunity for us to be able to satisfy the needs of our members with less real estate costs, which is basically one of our greatest areas of expense.
In terms of capital commitments.
Got it and on on.
That subject, how how do you.
On the charge for the delivery and how.
How much on average or you know, what's just try to eat there and are you of outsourcing the delivery.
And like all the retailers and region to third party.
Logistic companies that are in charge of the last mile and I guess, perhaps.
Of the.
As you learn about.
Customer behavior and.
All of it usually what other retailers charge for delivery, especially places like Colombia, where there's more competition do you foresee investments on the well.
And on the subsidy of all of those shipping fees at some point.
With regard to our delivery, we are seeing an increase of delivery of the proportion of our click and go on.
<unk> business, which offers the alternative of curbside pickup versus delivery.
At this time, we do not charge.
Or at least for delivery, we do outsource.
<unk> the delivery services that are directly charged and paid for by the member buys of third party, but we have a huge variability amongst our different markets in terms of consumer demand and expectation. So as you said for example, and Colombia that is a market that.
At <unk>.
Behaves in a manner that expects delivery that uses delivery that's willing to pay for delivery.
And whatever the delivery charge is is passed on directly to two of the and member.
We don't independently charge for delivery, but we are also looking for ways to be able to see if we can provide delivery and a manner, that's even more efficient than what's currently offered.
And by third parties, but we're looking at that on a case by case country by country basis, depending on what we see the demand of the members are.
Got it and and just on day I guess on the P&L last question on the P&L, where would we see the expenses related to the to the shipping and delivery.
That would be on the cost of goods sold at Rodrigo.
Got it and offset with an offset to revenue for anything that we're passing on but at a sort of said were touched on 100%, we're not subsidizing any delivery right now.
Got it alright.
That's my my last question. Thank you guys.
And it's our pleasure thank you Rodrigo.
This concludes our question and answer session I would like to turn the conference back over to Sherri Bird bear and begging for any closing remarks. Please go ahead ma'am.
I'd just like to thank all of our investors and our dedicated employees for their work and they've done at tremendous job dealing with externalities that are beyond our control and taking control of important aspects of our business to make sure that we're continuing to perform well.
And.
And our top priority remains keeping our members and our employees safe. So that we can continue to be and important resource from a price Mart members and the communities and which we operate so thank you all and I wish you good health and safety until.
And until next quarter.
And beyond.
The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
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