Q1 2021 Tile Shop Holdings Inc Earnings Call
Good day, ladies and gentlemen, and thank you for standing by welcome to the first quarter of 2021 tile shop Holdings incorporated earnings 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 then one on your telephone.
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At this time I would like to turn the conference over to Mr. Mark Davis, Sir please speak up.
Thank you Dexter.
Good morning to everyone and welcome to the tile shop first quarter earnings call. Joining me today are capital all of them are of Chief Executive Officer, and Nancy Day, Mattia, Our Chief Financial Officer.
Certain statements made during the call today constitute forward looking statements made pursuant to and within the meaning of the safe Harbor provisions of the private Securities Litigation Reform Act 1995 as amended.
Such forward looking statements are subject to both known and unknown risks and uncertainties that could cause actual results to differ materially from such statements.
Risks and uncertainties are described in our earnings press release issued earlier in the owner of filings with the SEC.
Looking statements made today are at the date of this call and we do not undertake any obligation to update. These forward looking statements. Today's call will also include certain non-GAAP measurements. Please see our earnings release for a reconciliation of those non-GAAP financial measures, which has been posted to our company website.
With that let me now I'll turn the call over to Kathy.
Thanks, Mark Good morning, everyone and thank you for joining us today for an update on our business and a review of our first quarter of financial results.
We started the year on a positive note with meaningful improvements in net income and adjusted EBITDA when compared to the first quarter of 2020.
Our adjusted EBITDA and adjusted EBITDA margin were the highest levels we've reported since fiscal 2018 of these.
These improvements were made possible by our commitment to maintaining disciplined at management practices, which resulted in improved gross margin and a substantial reduction in selling general and administrative expenses.
Our stores continue to operate at reduced hours during the first quarter of 2021, which allowed us to maintain a lean expense structure. However, it did contribute to lower levels of traffic and sales when compared to the first quarter of 2020.
During the quarter, we tested expanded hours at a subset of our stores. We will continue to evaluate the results of these tests perform additional tests and make adjustments to our store hours as a results show that the incremental business generated by extending store hours supports the additional investment in store overhead expenses.
In the first quarter, we continued to experience elevated levels of product back orders stemming from delays in replenishment from several international tile suppliers.
In many cases. This was the result of production challenges at our suppliers factory due to COVID-19.
We also experienced an increase in delays due to international shipping capacity constraints. So.
As many building products or dealing with shortages and delays and it seems to have been accepted by our pros and homeowners reasonably well, but we're still working hard to eliminate these delays.
Although it has only been a short time since our last earnings call I'd like to provide a brief update on our three key priorities for 2020 one.
Our first priority is focusing on retail execution.
We've continued to see improvements in our key metrics in this area specifically, we were able to achieve an 80 basis point increase in gross margin during the quarter that was largely due to lower levels of discounting and improve delivery collection rates. Additionally, our training and development initiatives are helping us achieve gains in our conversion rate and average ticket.
We also saw strong enrollment in our pro loyalty program in the quarter.
Our second priority is to enhance our customers online experience during the quarter, we invested in content and outreach with the goal of increasing the number of impressions site visits and conversions with prospective customers shopping for tile.
We are pleased with the progress made during the quarter, which included growth of online order activity, but we recognize that we're just starting to tap into the potential of what we hope to accomplish.
We're also making great progress working on a number of different projects to refine the way our products are merchandised online.
The samples I reviewed our of nice upgrade to what we have our team is doing a wonderful job evolving our customer digital experience.
These enhancements will further strengthen online engagement with prospective customers in the future.
Our initiative to refine our purchasing and distribution processes has been hampered by several factors COVID-19 has forced us like many consumer companies to take a hard look at all aspects of our supply chain.
This includes ensuring we're able to source products from diverse geographic regions around the world reduced product shortages maximize product availability for our customers and minimize our costs.
Our team is actively working with our network of international suppliers to secure delivery of backward of product as I mentioned earlier shipping capacity constraints are also adding pressure on product availability and cost.
We're seeing an increasingly cost of transport products to the U S and are actively exploring alternatives to combat rising costs.
Over the last three years, we have made substantial headway in diversifying our supplier base across the world.
We continually way options to shift purchases to suppliers that meet our high quality standards, while providing better pricing options overall I'm pleased with the strong start to 2021 on the I'll turn the call over to Nancy who will take you through the financial details.
Nancy.
Thanks, Cathy good morning, everyone from a financial point of view of the think continues to be around driving profitability and cash flow net income for the first quarter was $5 $3 million on fully diluted earnings per share were 10 cents.
Adjusted EBITDA increased $3.3 million from $11 $4 million during the first quarter of 'twenty 'twenty two of $14 7 million Dallas during the first quarter of 2020 one.
At EBITDA margin was 16% for the first quarter of 2021 of 390 basis point improvement compared to the first quarter of 2020.
We continue to manage our topline through headwinds stemming from reduced hours on product shortages.
Net sales decreased $2.2 million or 2.3 per cent from $94.3 million during the first quarter of 2000 $20 million to $92.1 million during the first quarter of 2021.
Sales at comparable stores decreased 2.3%. It is important to note at the total revenue dollars on comp sales performance during the first quarter of 2020, well, that's our highest levels that we've reported in any quarter during the prior three years, while the at.
Onset of COVID-19 on 2020 started to affect our traffic during the first quarter at <unk>.
To post strong sales results through the end of March we helped our professional customers. She cares of Olympic product day needed to complete jobs before state and local government restrictions took effect.
We did not see of significant impact of the pandemic and ourselves until the initial weeks of the second quarter end 'twenty 'twenty.
The decrease in sales at comparable stores during the first quarter of 2021 was primarily due to a decrease of traffic that was driven in part by our decision to operate with reduced store hours.
We reduced store hours for implemented in the second quarter of 2020. Additionally product shortages were a headwind during the first quarter of 2021. Despite the challenges we're seeing a notable increase in our backlog and customer of deposits deposits placed by customers just to catch at love me of products in future periods increased by $5 6 million.
From $12 $2 million on December 31, 2020 to $17 $8 million on March 31, 2021.
Gross profit during the first quarter of 2021 was $64 $2 million and decreased by $8 million of one 2% when compared to the first quarter of 2020.
Our gross margin was 69.7% 80 basis points higher than the first quarter of 2020, the improvement on that gross margin rate in the first quarter of 2021 compared to the prior year period was primarily due to the better pricing and improvement in customer delivery collection rates.
All of that by an increase on customer delivery month.
Our selling general and administrative costs decreased by $5 $1 million on $62 $4 million during the first quarter of 2020 to $67 $3 million during the first quarter of 2021.
The decrease in SG&A from the first quarter of last year was partially due to our reduced hours, which contributed to a 1.5 million dollar reduction in compensation and benefit expenses.
Italy, we incur at $2.2 million of asset impairment charges and $1 $1 million of legal costs in connection with shareholder litigation during the first quarter of 2020 during the first quarter of 2021, we did not incur any asset impairment charges or legal cost in connection with of shareholder litigation, which was finalized.
In October 2020.
During the first quarter, we opened a new store in language Jersey of bringing our total store count to 143 stores. During the first quarter of 2021 cash provided by operating activities totaled $31 million cash generated during the quarter was used to fund $3 $2 million of capital expenditures to finish.
The build out of the new store opened during the quarter.
A lot of existing stores invest in information technology and enhanced merchandising assets, we continue to anticipate $12 million to $15 million of capital expenditures. During 2021, we ended the quarter with of $35 9 million dollar cash balance and no debt with that Dexter Kathy and I are happy to take any.
Justin.
Yeah.
Okay.
Yeah.
Ladies and gentlemen, if you have a question of comment at this time. Please press Star then one on your telephone keypad at.
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Again, if you have a question of comment at this time. Please press Star then one on your telephone keypad.
Our first question or comment comes from the line of David Cannon from.
Kind of wealth management of your line is open.
Good morning.
Thanks for taking my questions first question is in regards to ours.
You know both being open on Sunday, and then daily hours Monday through Saturday.
Hmm what is the difference now starting in April versus.
In Q1, when you were not you know fully opened so to speak.
Hey, David This is Cathy good question, Yeah, right now we're running a couple of different tests in different markets and individual stores across the chain.
At some stores are opened on Sundays and of what full markets or individual islands stores.
Some stores control stores are not open and some stores were running our extended hours through Monday through Friday into the evening. So we're monitoring the data on the results you know looking at traffic looking at sales looking at cannibalization from other days. So as we read this data and it's starting to push one way or the other.
It helps us define what the what the go forward strategy is going to be you know I look at a lot of you know our regional competitors kind of of true competitor to the tile shop and you know most of them are not even opened on Sundays. Some some of our but very few and some are even closed on Saturdays, but I wanted to make sure that we can get all of the traffic we.
Can to make profitable sales sales come at a cost and that's what I analyze every day. So a good question.
Okay, I mean, I recall, you more or less saying the same thing during the Q4 call on I know it wasn't that long ago are there any anecdotal findings at this point and then if you could give a percentage perhaps I believe by total store hours versus normal were down close.
20% is that right.
And in Q3 Q4, what are we looking at now is at more or less at the same given the tests or.
Sure.
You know are there significantly more hours.
Sure, Yes, we've expanded our test in some areas of primarily it's about the same we've opened a few more hours in some locations, but anecdotally. It's about the same at you know during this COVID-19 pandemic, it's tough to you know staff the stores to make sure that you know we're getting the true data it has.
<unk> been that long before our last call and some stores are showing some results in some stores of showing very different results. So that's why I wanted to avoid a knee jerk decision to add a lot of cost to the model at this point I'm going to let data drive that decision and are.
And that's what we're doing everyday monitoring the data and expanding the test.
Okay and then in general restrictions you know are alleviating cross of Nielsen.
I could use you know I'd like to know Chris is translating to improvements in sales for you guys. So could you speak to the cadence of sales throughout the quarter.
Did it start on lower and then was there any momentum towards the end of the quarter end did that potentially carry through into.
April and May as many of these restrictions have alleviated.
Sure Yeah.
Can't speak to Q2, I'm excited to when that time comes but in Q1.
Due to our seasonality of our business, it's a strong quarter typically and we do see at at ramp up through January February March and it held at that same cadence at was it was a little different than prior years due to the pandemic, but that came on and it's pretty much stayed the same.
Okay, and then just one more question in regards to the up listing and I know you can't tell us exactly when that's going to happen, but I'm going to ask you.
You know more of a philosophical question does management and the board see the benefits and agree.
That it is a way to maximize shareholder value or did they philosophically disagree, but they're sort of going through the motions in terms you know based on the pressure that they're seeing.
That's a really good question, Dave I'm going to kick that over to Nancy a little bit of she's really tight closest go ahead of Nancy.
Yeah. Thank you David So I think your following the company very closely and you read a release of so on March 1st we had a special committee that at all of the review on the analysis to make a really sound recommendation to the board at.
And they made the recommendation on March 1st of the entire board voted unanimously for the uplift at.
Listing of either feeling that it made the best sense for the company and for the shareholders. So it was a unanimous decision.
Okay. Thanks for taking my questions. Good luck.
Thank you thanks, David.
Thank you. Our next question of comment comes from the high volume of John Hollander from Chesapeake Advisors. Your line is open.
Hi, Thank you for the time quick question on just cash flow and cash on the balance sheet I noticed that cash increased substantially to over $3 million congratulations on that.
I was hoping you could comment on the impact of the customer deposits on that cash and also your thoughts from a minimum cash balance sheets that are necessary on the business.
It's a great question John Nancy once you take this one as well.
Sure. So you know when we talk about cash we are really happy that we've been able to generate good cash flow during the first quarter.
And we think that's kind of off on some future flexibility, but we recognize that there's still a number of ongoing risks associated with COVID-19 that we're gonna need to navigate.
So while we seem to be pointed in the right direction of the U S. At the moment. We're also seeing headlines that you know I think everybody is aware of at many companies across the world are still really struggling with the virus. So you know as Kathy mentioned in his earlier comments. This has had an impact on our supply chain at.
And at the levels of product outages that were currently experiencing so at this time, we really feel that it's prudent to build of cash reserve in light of the ongoing risks still stemming from COVID-19 and the uncertainty that that are at.
Its still playing in the market, but certainly we'll continue to evaluate our capital needs are as we move through the year.
With respect to the balances.
Certainly we've seen an uptick on that.
And that is related to a number of suppliers have been affected by COVID-19.
So we're working closely with our suppliers to secure delivery of the products that are currently backorder, but that has increased you know backward of product and that's the reason that we're seeing customer deposit balances increased from $12 2 million at December 31 to $17 8 million in March 31, we do anticipate those debt.
That's coming down as we're able to get products in and again you know how much of that is tied to COVID-19 and the global situation and we just at this point really can't predict what that's going to look like.
Yeah.
Yeah.
Yeah.
Okay.
Thank you for that.
I guess my only follow up to that question is if you could give any discussion I know on the first quarter conference call. We spoke about one additional store has there been any change.
And also 12 months at sort of Capex at very tunes in that guidance.
No we're still anticipating to 12 to 15 million in Capex and we are going to be relocating one store at.
Certainly, we'll announce that when that's done and we would be closing the store of the existing store once the new one has been relocated.
Okay. Thank you I'll get back into queue.
Thank you. Our next question of comment comes from the line of Jon Cohen from family Office. Your line is open.
Hey, guys. Thanks for taking my call.
You actually answered a lot with that previous question when.
But I was just wondering.
What the plans were in terms of capital allocation going forward given that they're nobody's planned store, but any more stores.
Yeah.
So again, it's something that we are continuing to actively monitor we know that it's at its really important but we're still waiting to see how things are going to flush out through the year with COVID-19 again, we monitor it very closely we do anticipate that we are going to be spending.
I have some capital expense.
On the 12 to 15 million, which we're expecting nine to 13 million still left to spend this year and we're going to see an increase in inventory. While we think it'll remain below 90 million at certainly going to ramp up somewhat from the $71 million over currently at but again you know we're tied.
Two constraints with some of the suppliers due to COVID-19.
Got it on.
At.
Yeah, I mean, just to echo a comment that was made on the last call.
Given the valuation currently I'm, just a recommendation to the board at.
Seem prudent to maybe.
Maybe deploy some of the excess cash after.
No.
After COVID-19.
Seeds of little bit subsides, a little bit.
So maybe tender shares prior to the up list, but just a suggestion I guess, that's all you get.
We appreciate the comment thank you.
Thank you.
Our next question of comment comes from the line of Jeff Moore from birth Oak Capital. Your line is open.
Thanks for taking my question in regards to boost the.
End of the inventory build.
Buildup that it seems to be coming and the NASDAQ up listing.
What inning would you say we're end of.
Those items.
That's a great question Jeff.
When you look at the global constraints on on shipping and end when I look at our.
Inventory you hope to be in the end of the ninth inning, you know, but it changes weekly you know we just had.
A strike in the port of Montreal, we have COVID-19 wreaking havoc across Europe, and you know, it's a battle I see that we're going to continue through Q2 and into Q3. So I can't really give you an inning that we're in.
For inventory buildup and with the uplifting that's not in our hands. So we're gonna wait wait and see.
Okay.
Okay. Thanks.
Yep.
Thank you again, ladies and gentlemen, if you have a question of comment at this time. Please press Star then one on your telephone keypad at our next question of comment comes from the line of David came in from kind of wealth management. Your line is open.
Hi, just a follow up on capital allocation I appreciate the other callers, bringing on that subject.
Another category of people typically think in terms of building stores.
Let's call that greenfield buying back stock paying dividends, but have you guys added opportunities.
Potentially for acquisitions, you know your industry is littered with many mom and Pops that are good regional operators I recall for example, where I grew up in long Island. There was a very strong regional player there and had a great loyal customer base. They did a great job of executing.
Have you bet at those opportunities and you know maybe it's better to buy versus build you know maybe by EBITDA at a very high ROI well above what you would get an of Greenfield. So if you could comment on at <unk>.
And at scale is something that you would consider I appreciate that.
Sure. So right now frankly, we appreciate the fact that we have some opportunities within our existing store base to continue to grow that and deliver better performance and that's really what we're focused on for 2020 one.
But we do feel that you know, we always look at opportunities, but again, we're really focused on improving the existing store base focusing on getting that in line with where we want we're certainly making progress and we're really happy to see that but we want to continue to execute the strategy that we.
Have in place, but again being debt free certainly offers at some flexibility in the future. We're looking to see where we're at once we come out of the COVID-19 environment.
Thank you.
Thank you on.
Next question of Carla.
It comes from the line of John Hollander from Chesapeake Advisor Your line is opened.
Hi, I apologize I'm on to asked this earlier, but I noticed in your earnings report you track a pretax return on capital employed.
And congratulations on showing a positive number for the LTM basis.
I'd like to know how you think about this number and why you track this metric and what your goals are for it.
Yeah.
Yeah.
For.
Pretax capital employed let me kick that Nancy once you take that one.
Yeah.
Uh huh.
Oh.
Hi.
Got it.
Sorry can you repeat the question please.
Yes, and your earnings releases, you track and you show calculations for pretax return on capital employed.
For the LTM basis. Your numbers, you know are substantially higher congratulations on such powerful figures I'd like to know why the company cracks this metric.
And how you evaluate the metrics and the reason for it.
Well, we do feel of an important metric to track it helps us understand potential of liquidity going forward and the structure of the organization and we take all of that into consideration when we think about asset how does it flow.
What's the bottom line is going to look like as we move forward and refine our plans for the year.
Okay.
Our goal for this metric.
To go from zero negative 0.9 rights of positive 73 because of substantial anchors.
Yes, we don't we're not ready to share what those numbers are and we don't want to offer of forward looking guidance, but it is something that we are keeping an eye on and it's an indicator of.
Of the direction that we're moving on.
Okay.
Dallas is Q2 of $2 on 'twenty.
Hi.
Negative EBIT, which all of these drags down the LTM EBIT used in this calculation for Q2 of 'twenty. One it will have a large swings because that would be called on some sort of a positive number.
Which will lead to a substantial increase.
In the LTM basis of the pretax return on capital.
That's correct.
But theres no thoughts on how to deploy this capital.
It all goes into our overall capital plan and again, that's something that we continue to watch throughout the year end more to come as we progressed of the year.
Okay and just my final question, obviously, we saw at today's payrolls reports disappointing in terms of on the number of jobs being created on the many much commentary about labor shortages.
Is that something that youre running into from your on your contractors and also.
Who are buying of materials for your ultimate end use and home owners and also for your staffing levels are you running into serious consideration from job on job.
Yes, John that's of Great question, and observation and I think.
Anyone on this call who went out to buy anything home related in the past three to six months as experienced either.
Delays in product or sub levels of service and certain industries, we're lucky enough to be adequately staffed to expand hours staffing is a challenge.
You know with with.
Millions of jobs opened its become a much more competitive market for for people to get a job and we're going to see increases across all industries and wages and you know hopefully.
The articles I'm reading are wrong, but it could potentially lead to inflation. So it's at staffing is at challenge.
And when you think about contractor base.
There's a backlog in.
For customers using pros to get jobs installed on their home.
Is it at its by region, but all regions are suffering from at.
We we see that a delay on the tile job isn't due to always just the tile they're waiting on windows, they're waiting on concrete they're waiting on lumber they're waiting on all of these different things to finish the job so everyone in our industry seems to be.
Backed up on existing jobs at they're waiting to complete.
Yes.
Alright, Thank you and just my final.
Question.
Do you at all seeing about like teaser.
Our average prices and the reason I bring it up.
Is top line was down two 3% year over year.
Well, what we and I'm trying to gauge that.
We know that there was lower foot traffic.
But did that.
Price per titles increase over that time or does that also come down or was that swap.
You know, we we adjust pricing where we see at at adequate you know, where we need to adjust pricing, but we are also focused on one of our strategies is retail execution. So you know continuing to get the skill level of our associates in our stores raise that through training and we've seen lower discounting.
Which as you know a big reason why we've seen an increase in our margin.
But yes, we evaluate pricing.
Weekend on week out and it's something that we're very diligent when when looking at all the aspects that the challenge of business be at our product availability.
Look at what the sell through is on certain Skus and end. So yes. It's a great question, but it's something we look at end, we monitor because our execution of the pricing end of the sales of the product is what drives our profitability. So it's a good question.
Okay. Thank.
Thank you very much appreciate at the time, Congrats again on a group of older.
SG&A performance.
Thank you.
Thank you. Our next question of comment comes from the line of Jeff Moore from Baroque capital. Your line is open.
Thanks for taking a second question I was curious about your alls debt facility and if you could briefly go over that and also are you actively looking at other debt options right now.
So our existing kind of hit with the bank those for another two years, we have had conversations with our existing bank and other banks to see what our options are at something that we look at.
On a regular basis in particular as you look.
At the market it's changed radically.
From last year to this year of banks have eased.
He's on restrictions, allowing rates there was quite a run up that happened last year with companies really needing additional liquidity AR due to COVID-19. Fortunately, we were able to survive that that was.
Not an issue for us we're in a very good place at the moment, we don't think of that we're going to need to advance any money any time soon our goal is to remain debt free but that being said, we realize that it is an important consideration for flexibility and future growth again.
Where our current agreement is two years, but we have talked to other banks in light of the new world that we're living in just to understand what our opportunities are.
Okay. Thanks for that and so as part of your old NASDAQ uplifting application is there any restriction currently on you all for buying back shares.
No, but at the moment, we are waiting to hear a final decision from NASDAQ and again, we'll be revisiting that as we move further into the year.
Okay.
Just for clarification, though there is presently no restriction on you buying back shares of the company stock.
Oh I would have to I would have to confirm that but no I don't believe so.
Because I'm going to speak for every single outside shareholder that is not part of the executive or board Sweet did is on or not on this call and say that we all want for you to be buying back stock like Crazy I mean this company right now if you if you put at run rate on this quarters cash flow of as trading for something.
Three times cash flow and certainly no one thinks that that will continue necessarily but the cash flow generation ability of this business because of the great work you all done is immense and it seems to be.
Frankly, just not getting any credit from the market as a whole end, even with the headwinds of COVID-19 that uncertainty creates a great opportunity for you on the buyback lots of stock and create just.
A whole lot of shareholder value.
And I would also things at the shareholder base being what it is is there would ever be a liquidity event.
Liquidity requirement for the company would be more than happy to inject capital into the business at a favorable rate for the company.
So I just I don't understand why you guys are not act if you're not actively looking at at share buybacks you should be.
It's just absurd how cheap at this company is relative to peers relative to other companies of the market and relative to its future cash flows discounted to the present.
But at.
But again I don't want at discount the great job you guys have been doing operating the business.
On the debt pay down you've had over the past.
Year, or so has been absolutely incredible.
Thank you thank you for that.
Yeah, we I really appreciate the common end do you know that this is something that we really do take seriously.
On both Kevin and I from a company perspective, and certainly our board of directors, we evaluate all of that on an ongoing basis.
When we think about capital rather deploy at what makes it an offence for the organization and ultimately for the shareholders right. That's something that we always keep in mind. So again I. Appreciate the comment we did wanted to get a little further into the year, but this is something that certainly is a topic for discussion that we've been having internally.
<unk>.
Okay, but to stress again on the share buybacks you all have the opportunity of the decade, probably.
To be buying back shares because it's no secret that year old former found at your All's founder is spite selling shares right now he he doesn't care about the price and he would be I would think you would be willing to sell his remaining probably 2 million shares after what he probably dumped yesterday.
See you guys at in just a private transaction just to be out. So he can he can go about his business.
I debt.
That that alone cause of buyback of substantial amount of the company at a at a favorable rate for the company and if you all would do that I mean that would just debt would reduce your cost of capital at would you would it would help the share price of especially as you all are getting upwards since at the NASDAQ.
Hum.
I've talked at probably a dozen shareholders that are baffled as to why you guys are not tendering for those shares right now.
So.
We would all definitely appreciate you doing that I think.
That's something that <unk> debt.
It would.
It would be great for you ought to look into at the board level as soon as possible because he got me he was selling at in the past week.
And it seems like he doesn't mind to suppress the price to do it. So please look into that.
I appreciate it Jeff and just like to Echo Nancy It's something that we do review a lot at the board level and internally on.
What the best of course is to do with our cash. So thank you very much of your commentary.
Thank you.
Our next question of Carlo Ferro is that of your follow up from us of David Cannon from kind of wealth management. Your line is open.
Sorry, guys I thought I was done but the other callers sort of.
Woke me up there. So I just wanted to express you're aware of large holder.
We own almost probably at least 4 million shares so I actually concur with the previous caller.
I think it would be great. If you guys can retire shares at.
This kind of evaluation.
Help them move on to other things.
And now Chris to comment thank you.
Thank you David.
I appreciate it.
Thank you. Our next question of comment comes from the line of John of coin from family Office. Your line is open.
Hey, guys, Yeah just to.
Heck of a Jeff's comments did.
Did rucker reach out to you guys at all of them.
How about selling at stake.
No he has not.
Okay.
That's all I got really.
It might be better for you guys to reach out to him.
Just to see if you're able to Dubai of his remaining stake.
I can't really speak to that right now John but it's a I get the question and it's a good one so I appreciate it.
Thanks, guys. Thanks for all of your hard work.
You bet.
Thank you.
I'm showing no additional questions in the queue at this time I'd like to turn the conference back over to management for any closing remarks.
Thank you Dexter and thank you to everyone for listening to our earnings conference call. We anticipate filing our form 10-Q later today, we look forward to providing our next update in August. Thank you for your interest at the tile shop and have a great day.
Ladies and gentlemen, thank you for participating at today's conference. This concludes the program you may now disconnect everyone have a wonderful day.
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