Q3 2021 John B Sanfilippo & Son Inc Earnings Call
Okay.
Ladies and gentlemen.
Thank you for standing by and welcome to the John B Sanfilippo and fun incorporated third quarter fiscal 2021 operating results conference call.
At this time all participants are in a listen only mode.
After the speaker's presentation, there will be a question and answer session.
To ask a question during the session you will need to press star one on your telephone.
I would now like to hand, the conference over to your Speaker today, Mike Valentine CFO. Thank you. Please go ahead Sir.
Thank you D. Good morning, everyone.
And welcome to our 2021 third quarter earnings Conference call. We thank you all for joining US today on the call with me is Jeffrey Sanfilippo, our CEO and Jasper Sanfilippo, our C O O.
Before we start.
We want to alert you to the fact that we may make some forward looking statements. Today. These statements are based on our current expectations.
And they involve certain risks and uncertainties. The factors that could negatively impact results are explained in the various SEC filings that we have made including forms 10-K and 10-Q, we encourage you to refer to these filings to learn more about these risks and uncertainties that are inherent in our business.
Starting with the income statement net sales for the third quarter of fiscal 'twenty, one decreased one 8% to $207 $9 million from net sales of $211 6 million from the third quarter of fiscal 'twenty.
The decrease in net sales was mainly attributable to a one 2% decrease in sales volume.
Which we define as pounds sold to customers.
Sales volume declined primarily due to a reduction in sales volume for almonds and peanuts.
This was offset in part by increased sales volume for trail and snack mixes.
Sales volume increased in our consumer distribution channel by nine 1%.
And that was due to an 11, 8% increase in sales volume for private brand snack nuts.
And trail and snack mixes the.
The increase in sales volume for these private brand products came from new distribution at existing customers.
Shifting consumer preferences to lower price private brand products and growth in snacking as many consumers continue to purchase food for consumption at home, while they work at home.
Sales volume in the consumer distribution channel accounted for 77, 7% of our total sales volume in the current third quarter.
Now looking at sales volume for our brands and our consumer channel sales.
Sales volume for Fisher recipe nuts fell six 4% net was primarily due to loss distribution at two grocery customers.
The 21, 4% decrease in sales volume for Orchard Valley Harvest brand was attributable to lower foot traffic at a major customer in the non food sector due to COVID-19.
Fisher snack nut sales volume decreased three 1%, primarily due to reduced merchandising activity for Fisher in shell peanuts as we're in the process of discontinuing that product line.
And we expect to have that completed by the end of the upcoming fourth quarter.
Sales volume for southern style nuts decreased 14, 2% due to the discontinuance of an item at a major customer.
Sales volume decrease in the commercial ingredients channel by 29, 8% due to a 25, 7% decline in sales volume in our foodservice business.
And a decline in sales of peanut crushing stock to peanut oil processors.
The decline in foodservice sales volume was mainly due to a decline in air travel and continued nationwide restrictions on indoor restaurant dining as a result of COVID-19.
Sales volume declined in the contract packaging distribution channel by 19, 2% and that was primarily due to the unfavorable impact of lower convenience store foot traffic on one customer's business again as a result of COVID-19.
Net sales for the first three quarters of the current fiscal year decreased to $651 $7 million from $675 9 million for the first three quarters of fiscal 'twenty.
The decrease in net sales was attributable primarily to a two 7% decrease in our weighted average selling price for our products.
Which in turn was due to a decline in commodity acquisition cost for all major tree nuts.
Sales volume decreased 0.9%, primarily due to a reduction in sales volume for almonds and peanuts.
And that was partially offset by increased sales for trail and snack mixes.
The decline in sales volume, especially for almonds also contributed to the decline in net sales.
Sales volume increased seven 7% in the consumer distribution channel primarily for the same reason I discussed in the quarterly comparison.
Sales volume decreased 27, 1% in the commercial ingredients distribution channel, mainly as a result of a 32, 5% decline in sales volume in our foodservice business.
Again, the decline in foodservice sales volume occurred for the same reasons I discussed in the quarterly comparison.
Sales volume declined in the contract packaging distribution channel by 15, 1% primarily for the reason I cited in the quarterly comparison as well as the loss of peanut butter business with another customer which was attributable to a temporary peanuts supply shortage that existed in the first quarter of fiscal 2020.
One.
Third quarter gross profit increased $3 $2 million and gross profit margin as a percentage of net sales increased to 22, 1% for the third quarter of fiscal 2021 from 22% from the third quarter of fiscal 2020.
The increases in gross profit and gross profit margin were attributable primarily to lower commodity acquisition costs for all major tree nuts.
Gross profit for the first three quarters of the current year increased $3 $1 million and gross profit margin as a percentage of net sales increased to 21, 2% from 20% for the same period last year.
Again, the increases in both gross profit and gross profit margin were due to the lower commodity acquisition costs for all major tree nuts.
Total operating expenses for the current third quarter increased to 12% net sales from 11, 1% from last year's third quarter.
In total operating expenses for the current third quarter increased to $24 $9 million from $23 4 million in the quarterly comparison.
The increase in total total operating expenses was due to a $1 $5 million increase in freight expense.
And that resulted from significantly higher freight rates compared to freight rates from last year's third quarter and to a lesser extent an increase in sales volume per sales made on a delivered basis to our customers.
Total operating expenses for the current year to date period increased slightly to 10, 8%.
From 10, 7% from net sales for the first three quarters of fiscal 'twenty and total operating expenses decreased $1 $7 million.
The decline in total operating expenses was due to a $2 3 million dollar gain from the final insurance recovery that was recognized in the second quarter of fiscal 2021.
Insurance recovery related to the carriers Berg North Carolina facility fire that occurred in the second quarter of fiscal 'twenty 'twenty.
The impact of that insurance recovery gain was offset in part by increases in freight insurance and consulting expenses net.
Net of decreases in advertising and incentive compensation and travel expenses.
Interest expense for the current third quarter decreased $300000 from $600000 in last year's third quarter and interest expense for the first three quarters of the current year decreased to $1 $1 million from $1 $5 million for the first three quarters of fiscal 2020.
The decrease in interest expense in both comparisons primarily resulted from lower average debt levels.
Net income was $14 $7 million or $1 27 per diluted share for the third quarter of fiscal 2021, compared to $13 $5 million or $1 17 per share diluted for the third quarter of fiscal 'twenty.
Both net income and EPS were records for a third quarter.
Net income for the first three quarters of fiscal 'twenty, one was $47 $4 million or $4 10 per share diluted.
Compared to net income of $43 $9 million or $3 80 per share diluted for the first three quarters of fiscal 2020.
Now taking a quick look at our inventory.
The total value of our inventories on hand at the end of the current third quarter decreased $36 $8 million from 19, 5% compared to the total inventory value at the end of the third quarter of fiscal 'twenty.
The decrease in the value of total inventories was primarily due to lower commodity acquisition costs for all major tree nuts.
Also lower quantities of peanuts, almonds, and pecans contributed to the decline in the total value of inventories on hand.
The weighted average cost per pound of our raw nut and dried fruit input stocks on hand decreased 17, 8% again due to lower acquisition costs for all major tree nuts.
And now I will turn the call over to Jeffrey Sanfilippo, our CEO to provide additional comments on our operating results for the third quarter of fiscal 2021 Jeffrey.
Thank you Mike good morning, everyone.
As was the case in the second quarter of fiscal 2021, we reported record net income and diluted earnings per share. Despite the continuing challenges we faced in our foodservice business in our contract packaging distribution channel and with our Orchard Valley Harvest brand due to the impact of COVID-19. These.
These record results were again driven in large part by lower commodity acquisition cost as Mike mentioned for all major tree nuts, and strong sales volume growth for private brand products in our consumer distribution channel.
And we continue to see improvement in our foodservice business as we did in the first two quarters of fiscal 2021 with dining out and air travel having increased.
Our record performance over the last two quarters put us in a strong position to pay a $2 50 per share special dividend during the current third quarter.
Team members from every department across our organization worked hard and lead with dedication and commitment to deliver these strong results and service our customers and consumers.
At this time last year, our company established a COVID-19 crisis management team that met daily to discuss risks faced by the company and mitigation strategies.
Here, we are one year later continuing to follow recommendations made by state and federal regulators and health agencies to ensure the safety and health of our employees.
And those recommendations as those recommendations change and evolve.
But I'm happy to share that the crisis team has now pivoted to being a recovery team with a focus on getting our team members' vaccinated.
Few weeks ago, we organized a free voluntary COVID-19, immunization clinic, which was held on site at our Elgin, Illinois facility the.
The company in partnership with Jewel Osco administered 1064, Pfizer vaccinations to employees and their families.
The second dose will be administered next week.
J B assesses in the process now of facilitating clinics at each of our manufacturing locations.
In addition to this important initiative the recovery team is coordinating our re imagined workforce, which will provide for flexibility on when and where people work in our organization to support our business and take care of our customers and consumers.
One key learning from the pandemic is that many of our associates prove they could work remotely and still meet goals and objectives, while continuing to nurture collaboration and connection.
At the same time being apart from each other has also made us realize how much we value being together in person.
And there is often no substitute for live collaboration connection and celebration to maintain a strong gbs's culture.
Your operations there are short term external headwinds to manage driving up costs as we navigate and transition into a post pandemic environment.
For example, the wooden pallet industry has been impacted for several months now with low inventory levels due in part to labor and lumber shortages the.
The pilot shortage has impacted our operations, primarily at our Elgin facility and led to some cost increases.
We anticipate the industry to see some relief in the coming quarters.
In the interim we are working with our vendors customers and jbs's facilities in other regions of the country to source it source of additional supply.
Also during fiscal 2021, Theres a shortage in capacity in the transportation industry compounding. This driver shortage is an increasing demand driven by additional spending on consumer goods. This tightening and transportation capacity, including rail and Ocean freight is expected to continue in fiscal 'twenty.
Two has led to increased transportation costs.
Despite these headwinds there are bright signs of demand recovery in specific business segments.
I've shared the negative impact on our foodservice and contract manufacturing business and volume demand declines in convenience stores and non essential retail customers due to reduced foot traffic where people continue to work from home.
Good news is that the rate of decline is recovering from its low point in our fourth quarter of fiscal 2020, and we believe that as the COVID-19 vaccine becomes more widely distributed and accepted by the public and restrictions are again loosen sales volume will with our foodservice restaurant convenience store and nonessential reach.
Customers will continue to improve.
And we've already started seeing significant growth in our backlog these past few weeks.
Turning to sales review by channel net sales in the consumer consumer distribution channel increased six 8% and ex third quarter of fiscal 'twenty, one as Mike mentioned, the increase was driven by growth in private brands from several of our key retail partners. They continue to benefit from elevated at home food demand driven by.
The pandemic.
For our branded business, there's much work to be done the marketing innovation R&D and insights teams have been working extremely hard on brand positioning product differentiation and consumer engagement.
A lot of heavy lifting is taking place right now to build stronger brands and sales distribution plans for the coming year.
The teams are prioritizing core brand initiatives and enhancing product portfolios.
For example, the Fisher nut flow program is gaining momentum with new distribution gains as we capitalize on the ongoing increased demand for food at home as well as the rise in cooking and baking.
Net sales in the commercial ingredient distribution channel decreased 35% in dollars as we've shared previously reduced away from home demand is a significant driver of these declines.
But throughout this past year, our foodservice and industrial teams have set up set us up for a strong recovery by developing strategic partnerships and getting product placement in locations, where it matters and we are seeing positive leading indicators in our order backlog that business demand is coming back in this channel.
Net sales in the contract packaging distribution channel decreased 23, 2% in dollars again, what are the negative impacts of COVID-19, as the decline in people visiting convenience stores throughout the country, where our largest customer in this channel has significant sales concentration.
But this too is beginning to recover as we see growing demand in this channel.
Turning to category updates I will share some of the brand results with you and category updates for the quarter.
As always all the market information I'll be referring to is IRI reported data and for today. It is for the period ending March 21, 2021, when I refer to Q3, I'm, referring to 13 weeks of the quarter ending March 'twenty one.
References to changes in volume or price are versus the corresponding period, one year ago.
We look at the category on Iri's total U S definition, which includes food drug mass Walmart military and other outlets unless otherwise specified.
And when we discuss pricing we are referring to average price per pound.
Breakouts of the recipe snack and produce nut categories are based on our custom definitions developed in conjunction with IRI.
And the term velocity refers to the sales per point of distribution.
As we've mentioned for the past year, COVID-19 had positive and negative impacts upon our results for fiscal 'twenty one.
And the last four weeks of Q3, However, we started to lap the beginning of the pandemic and the large pantry build that happened in March of 2020.
Total nut category and Jbs S volume both decline in the last four weeks versus prior year, while results for the quarter are mixed.
The total nut category was flat in both sales dollars and pounds.
In Q3.
This is down versus the dollar and pound growth we saw in the first half of the year.
This is primarily driven by the lap of the March pantry build from last year as mentioned previously.
Overall prices for the quarter were flat versus the prior year.
Now I will cover each category in much more depth, starting with recipe nuts.
The recipe category grew 5% in dollar sales and 7% in pound sales. This is consistent with the growth that we saw in Q2.
The category saw significant growth throughout the pandemic driven by more consumers cooking and baking at home.
Despite category growth overall Fisher brand continues to be challenged by declining distribution with two key retailers have.
Our Fisher recipe nuts decreased 15% in dollar sales and 10% in pound sales for the quarter versus last year.
We did see gains in velocity, but this was not enough to offset distribution declines.
As a result Fisher share in the category decreased two four pound share points versus last year.
Fisher continues to be the branded share leader in the recipe category when using a broader multi outlet definition or within the U S food channel.
Now, let me turn to the snack category in Q3 ex snack category.
Client dollar sales, 2% will remain flat in pound sales.
Sure snack grew faster than the category up one percentage dollar sales and up 9% in pound sales in Q3, driven by strong pound velocity on core Fisher snack nuts.
19, 5% driven by increased promotional activity.
The trail and snack mix category declined declined dollars and pounds in Q3 by 6% and 8% respectively.
Our southern style nuts brand performed better than the category, though still declined 4% in pounds and dollars due to loss distribution on our flavor variance at a major retailer.
In Q3, the produce nut category increased 6% in dollars and 5% in pound volume.
Orchard Valley harvest, our produced nut brand decreased 16% in dollar sales and 18% in pound sales driven by lost distribution and aggressive competition competitive action.
Yeah.
In closing.
It is extraordinary how the world has changed since our third quarter last year.
At our company and our team of dedicated leaders and frontline associates throughout our organization remains steadfast in strong we adapted quickly to the dramatic changes in consumer behavior and seized opportunities to follow consumption growth in e-commerce and elevated demand with our private brand retail partners.
We've made good progress on our fiscal 2021 priorities building, a stronger commercial team and fueling investment in our brands and manufacturing capabilities.
Looking ahead, we remain focused on strengthening our momentum and emerging from the pandemic a stronger company, even better positioned to drive long term shareholder value.
We will continue to prioritize the health and productivity of our associates and follow the most up to date guidance from health authorities to ensure we are doing all we can in our manufacturing facilities and offices to keep everyone safe.
Lastly, we have the right strategies, the right talent and the right business model to continue to grow and provide exceptional value and innovation for our customers and consumers.
We appreciate your participation in the call and thank you for your interest in our company.
I'll now turn the call back over to Mike.
Okay. Thank you Jeffrey.
At this time B can you please queue up the first question.
Yes. Your first question comes from the line of Chris Mcginnis from Sidoti <unk> Company.
Taking my questions and nice quarter.
Right.
I know you mentioned increasing from freight and.
Sounds like pallet, but outside of that the raw materials coming down I think you've probably already industry I cover that seems deflationary.
Raw material costs can you just talk about moving the outlook. There you know how confident are or what you think in terms of raw material costs over the next 12 months as we see it.
You know Aggers, obviously seen increases some.
Some pricing so I'm wondering how that.
Possibly impact your longer term thanks.
Yes, Chris this is jasper.
It stands now.
We're covered through the fall obviously, we bought our problems last year. So our position is a very good through fall a.
Certain crops have not really developed yet for example, pecans and walnuts are just coming off of Bloom. It looks like we have a decent almond crop.
Cash use are pretty tight so we're not necessarily seeing that and that's going to be anything that could be really.
Impactful from a you know a major price increase unless we have some disastrous as these crops are developing.
From a labor labor standpoint, there's.
There's nothing really that we're seeing as well that's going to cause any effects. There. So I think commodities will stay stable for the.
First half of our year, and then depending on harvest and crop sizes will determine in the back half of the year.
Yeah, and Chris I would also add that we have some pretty significant carryover is on just.
Just about all the tree nuts, except cashews, so that should also.
Keep a lid on those market prices.
Great and I guess just that.
I want to call it elevated for a while but that interest that margin profile that you've been you've been hitting that on the growth side. So that is sustainable for the next few quarters given the commentary you just gave me.
Yeah, Chris This is Jeffrey I would expect that.
At home demand to still continue I think people are still slowly getting back into traveling and eating out.
I expect this next probably two quarters, you'll see that slowly I think youre going to see that maintain but you'll slowly see that increase as I talked about in the foodservice channel.
And that contract packaging channel as people are more comfortable going out again.
Okay.
Just on the impact of that margin profit, okay I understand that.
And I guess just thinking about.
You know some of the some of the lost I guess, the the changes maybe Fisher maybe the recipe you can just talk about some of the loss.
Channel, how youre going to approach that you know you made some commentary that you're kind of refocusing a little bit on some of the loss share can you just talk about how youre going to change that strategy going forward and to take that back overnight.
Six to 12 months.
Sure. So if you look at start with Fisher recipe, so that business was up for bid at two major retailers.
Unfortunately, we lost that distribution to another brand.
That business comes up again in the next year I think I think in both of them come up in the next year or so so we're working hard to build our brand equity looking at the product innovation in the category I mentioned that not flower, which we're having great success in getting new distribution. There so really be doing better at positioning the brand equity in the product portfolio. So when those bids come.
Backup again, we're positioned really well to to pursue that business at the same time I talked about velocity and so when you need velocity. It's how much you are turning in a store where you have distribution and we have done a great job at building that velocity through promotional activity through consumer engagement and so we've got great success stories at other re.
Retailers, where we have Fisher distribution and our goal is to take those success stories and demonstrate to retailers, where we don't have distribution Ah why they should have fisher and their sides. So let's Fisher recipe Orchard Valley harvest, our health and wellness brand and produce brand you know a lot of work being done there on understanding our consumer and how we can defer.
<unk> that brand and product portfolio. So the team's working hard on something you'll see in the coming months and we'd been in the test market with something called Chickpea chips with our <unk> brand. Our R&D team has developed some great new flavor profiles for that brand. So you'll see you'll see us enter that market in a stronger way in the salty snacks snack set.
<unk> and then squirrel as our indulgent brand a lot of work being done there we did great.
Valentine's promotional program with a b.
A product called Ruby Royale very successful on QVC.
So we're looking at that product portfolio as well and elevating the type of products that we put in under a squirrel portfolio to engage new consumers and build that brand. So a lot of opportunities on the branded side heavy lifting being done now as I mentioned to build those brand positioning and develop consumer engagement, but very excited about.
We're going to do with the brands in the future.
I really appreciate it thanks Thats very helpful.
Just to touch on this trail and snack mixes are obviously pretty strong the last few quarters.
You know how much room does that still have to grow is that more of the change in consumer the expansion with the with the distribution customers can you just talk about that because that's been a really strong.
Channel for you for a while now sure yes. So channel mix has always been a very strong segment in the category. We did see some shift to lower cost trail mixes.
Especially with peanuts as consumers looked at the economy than just income in general. So we did see a shift to lower cost trail mixes, but we also see growth in the health and wellness Trail mix. If you look at something like a keto mix, which is relatively new to the category. We're seeing substantial growth with that type of health and wellness trail mix and I think you'll continue.
To see more development in that segment of channel mixes with more health and wellness type of products.
Okay.
Appreciate that.
And then you just mentioned the competitive landscape, increasing a little bit and some arent.
Just maybe discuss that broadly across the portfolio have you seen any real change in strategy.
From a pricing.
Not really I think people have been very I think really just trying to manage through the pandemic. We haven't seen any huge competitive price changes, obviously as we saw price deflation and a lot of that was passed on to consumers through lower retail prices.
But also it allowed us to do is create more meaningful promotions when we saw these lower.
Commodity costs coming through trying to attract new consumers to the nut category and hit price points that we were never able to hit before and so I think all the competitors have been very focused on getting through the pandemic, but also managing their pricing and making sure that they're driving promotions like we are.
We've got Chris obviously with competitive activity, we know of Cornell's acquisition with planters, we haven't seen any changes yet obviously, it's relatively new in that process is still going through but we would monitor that and expect to see some things come out of that transition what's hormel takes over the brand.
Okay. Thank.
Thank you.
And then just.
Obviously, a strong balance sheet.
Just your thoughts around capital.
You know in any M&A opportunities out there that you see.
Sure because we're always looking at M&A.
<unk> to look at outside of just our current product portfolio or capabilities.
So we've looked at a few companies where we're constantly looking at businesses I think this past year. Our focus has really been on our base business our core products.
Imagining our brands, taking care of our workforce, but M&A definitely will be something that it's something we always look at and something that will continue to be part of our strategic growth plan.
And then Chris we're also making a major investment to end.
A new product category.
That investment.
It's already started and will continue through <unk>.
Fiscal 'twenty, two and then we'll start to see some.
Benefits of that investment in fiscal 'twenty three.
<unk> project for us.
Is that a new product offering that amount for that.
New product offered not not yet.
Yeah. It has not been announced soon.
Okay.
Okay.
Well. Thank you very much that's very important I appreciate that good luck in the next quarter and thank you very much for answering my questions I appreciate that okay terrific. Thanks.
Your next question comes from the line of Tim call the capital management.
Congratulations on a strong quarter.
Thanks, Tim.
This seemed to be your last quarter with hard comparisons.
And yet you reported strong quarterly results.
And so with easier comparisons in.
Volume's down.
And quarters in previous year.
Should we expect.
To see an acceleration of fundamentals.
Well actually our fourth quarter was a monster quarter last year because of the pantry building. So we still have one more quarter of a challenging comp, but I agree with you after that.
So we should be able to build some of them some of them some momentum there.
And also add Tim that we as I mentioned during the call we have ever seen.
Recovery, especially in our foodservice channel industrial channel is coming back the consumer group really all of our sales and marketing teams have done an extraordinary job putting us in a strong position with distribution and new product placement and strategic partnerships that will really matter as as the economy changes and as the market changes post pandemic.
You're starting to see those results flow through.
In the back order log now.
So contract manufacturing might come back foodservice used to be 10% of your overall sales.
And in your branded products are sold through a lot of stores that were closed during the pandemic. So should we.
Are you able to handle all of the increased demand that might occur from all those areas at the same time and when we think of companies that could greatly benefit from the reopening of America should we think of your firm.
Yes, Tim this is jasper from a capacity standpoint, we're well prepared to be able to handle b increased demand.
Some of those product lines like Foodservice for example have dedicated equipment. So if we get back to normal levels. The equipment that we have will be sufficient to meet that demand and we've always been continually investing in our retail side either through rigid packaging like B E T jars cans or stand up bags. So I.
I think we'll be we're in good shape on capacity.
And you mentioned.
Planners and hopefully there's some disruption there.
But.
<unk>.
Last calendar year had sales of roughly a $1 billion of those planners product lines that were sold and.
The sales price was around 335 billion cash.
Your last fiscal year, you had net sales of around <unk> 9 billion.
Market cap and the stock market is around $1 billion.
Little debt.
Is there.
There seems to be a vast difference in valuation of <unk>.
What the market was paying for planners and what the market is paying for your firm.
What do you think.
John.
It can be done to narrow that gap do you think just more investors need to find.
Find out about John B Sanfilippo.
Yes so.
So Tim one of the big things and we were surprised at the multiple that was paid for planners. It's a great brand. It's the heritage brand I think hormel will do a nice job with it.
But I think when you look at our comparison.
<unk>.
Non profit, but in valuation brands are important to investors as we all know high margin much better control in some cases over the future growth of the brand and so as we continue to build our brand.
Brands across our portfolio. In addition to complementing our private brand and industrial business and contract packaging business I think that's where we'll see that multiple start to grow the stronger brands that we can have the stronger market share that bigger distribution, we have across the country I think the stronger multiple youll see in the company.
Well. Thank you for all your hard work, it's great seeing it pay off and congratulations on a great quarter.
Thank you I appreciate the time, thank you Tim.
Again, if you would like to ask a question simply press Star then the number one on your telephone keypad well pause for just a moment to compile the Q&A roster.
Yeah.
I'm showing no other questions at this time.
Yeah.
Okay.
Sure.
Okay.
There are no other questions. Thank you again free interest in J B assets and this concludes the call for our third quarter of fiscal 2021 operating results.
Thank you again for participating in today's conference call you may now disconnect.
Okay.