Q3 2021 A-Mark Precious Metals Inc Earnings Call

Pardon me. This is the operator. Please standby this call will begin momentarily. Thank you for your patience.

[music].

Good afternoon, and welcome to a Mark precious metals conference call for the fiscal third quarter ended March 31st 2021. My name is Ariel and I will be your operator. This afternoon before this call a mark issued its results for the fiscal third quarter 2021, and a press release.

Which is available in the Investor Relations section of the company's website at Www, a mark Dot Com you can find the link to the Investor Relations section at the top of the homepage.

Joining us for today's call are a Mark's CEO, Greg Roberts, President Thor Jurdan CFO, Kathleen Simpson Taylor as well as Jay and Booleans C E O Michael Whitmire.

Following their remarks, we will open the call to your questions. Then before we conclude the call I'll provide the necessary cautions regarding the forward looking statements made by management. During this call I would like to remind everyone that this call is being recorded and will be made available for replay via a link available in the Investor Relations section of <unk>.

Right now.

Now I would like to turn the conference over to a Mark's CEO Mr. Greg Roberts. Please go ahead.

Thank you very much.

Hello, everyone and thank you for joining our call today.

I'd like to welcome all of our new shell shareholders as well as our previous existing shareholders to the call today.

As you can see from our earnings release, the third quarter marked another period of record earnings for a mark boosted by strong market conditions and the closing of the JM boy and deal our most significant acquisition ever.

Hey, Mark had the strongest quarter of financial performance and our history with J M Boy and contributing $8 5 million of gross profit and $6 8 million of pretax income and just the last 12 days of March.

Our outperformance continues to demonstrate the effectiveness of our vertically integrated platform and the inherent synergies of our complementary business segments.

And this includes our expanded direct to consumer segment are mid teen partnerships logistic capabilities and strong customer relationships.

Our expanded a mark's team has executed extremely well to capitalize on the market conditions that are currently driving precious metals volumes.

And in particular, the growing demand for silver and gold products from our wholesale and retail customers.

And with tight supply.

Bolted and higher premium spreads and our Q3.

These robust market dynamics allowed us to accomplish this outstanding financial performance highlighted by 53 million and net income.

Net of the one time remeasurement gain of $26 3 million related to the J M B acquisition.

Hey, Mark results easily beat the guidance, we issued at the end of February.

As many of you know during the quarter. We also closed on a public offering increasing our common shares outstanding to $11 1 million net.

Now I'd like to turn.

The call over to Kathleen Simpson Taylor, our CFO, who will walk you through our financials in more detail than our private and for juergen well discuss our kpis.

Afterwards, I will provide a further update on our three business segments and growth strategy cash.

Right.

Thank you, Greg and good afternoon to everyone.

Gregg mentioned, we closed on a purchase JMP acquiring the remaining 79, 5% interest on March 19, and as a result, our financial results for the three months ended March 31, 'twenty 'twenty. One included $68 4 million of revenue and $6 8 million.

Pre tax income attributable to <unk> operations from March 20th 2021 through March 31st 2021.

With that in mind, let us turn to our financial results for fiscal Q3, and the first nine months of fiscal 2021.

Our revenues for fiscal Q3, 2021 increased 63% coupon and zero 5 billion from one quake two 6 billion in Q3 of last year the.

The increase in revenues was primarily attributable to an increase on the total amount on gold and silver ounces sold and higher average selling prices of gold and silver.

For the nine months period, our revenues increased 43 per cent to 5.43 billion from 3.80 billion and the same year ago period. The increase in revenues was primarily attributable to an increase in net total amount of gold and silver ounces sold and higher average.

So it'll crisis of Goldman silver.

Gross profit for fiscal Q3, 2021 increased 203% to $68 2 million or 333% of revenue from $22 5 million or 179% of revenue in Q3 of last year.

The increase and gross profit was due to higher gross profit earned by our wholesale sales and ancillary services and direct to consumer segment.

The increase in gross margin percentage was mainly attributable to a significantly wider premium spread.

Two increased demand higher trading profit, primarily due to increased volatility and these were partially offset by the impact of higher forward sales.

For the nine months period, our gross profit increased 216% to $123 1 million or coupons and two seven per cent and revenue from $38 9 million or one point here on 3% of revenue in the same year ago period.

The increase in gross profit was due to higher gross profit earned by our wholesale sales and ancillary services and direct to consumer segments.

The increase in gross margin percentage was mainly attributable to a significantly wider premiums spreads due to increased demand higher trading profit is primarily due to increased volatility and lower foreign sales.

SG&A expenses for fiscal Q3, 2021 increased 42% to $14 8 million from $10 4 million and Q3 of last year.

The increase and selling general and administrative expense. It was primarily due to 2.2 million of costs associated with our acquisition of J M D.

And increase of one 7 million related to <unk> operations.

And to the acquisition of which 1 million is it attributable to amortization expense and an increase on.

Point 3 million associated with gold line marketing activities.

For the nine month period, our SG&A expenses increased 28 per cent to $33 8 million from $26 5 million and the same year ago period. The increase in SG&A expenses was primarily due to $2 6 million and costs associated with the J M B acquisition.

Increases in compensation expense, including performance based accruals of $2 1 million and.

And increase of one 7 million related to Jam. These operations subsequent to the acquisition of which 1 million is attributable to amortization expense and.

Creased insurance cost and 0.7 million and an increase and computer software expense and 0.2 million.

Interest income for fiscal Q3, 2020, one decreased 21% to $4 7 million from six point.

Zero million and Q3 of fiscal 2020.

Aggregate decrease in interest income was primarily due to lower interest income earned by our secured lending segment, which was partially offset by higher other finance products and income.

For the nine months period, our interest income decreased 26% to $13 2 million from 18 million and the same year ago period debt.

And I forget decrease in interest income was primarily due to lower interest income earned by our secured lending segment, partially offset by higher other financing product income.

Interest expense for fiscal Q3, 2021 increased 6% to $5 3 million from $5 1 million and Q3 of last year.

Increase was primarily driven by higher interest expense associated with product financing arrangements, partially offset by a reduction and loan servicing fees.

Interest and fees from liability on borrowed metals and lower interest expense related to our trading credit facility for.

For the nine months period, our interest expense decreased 4% to $14 7 million from $15 3 million in the same year ago period. The decrease in interest expense was primarily due to reductions in interest expense related to our trading credit facility and loan servicing fees, which was partially off.

Debt by increases in interest expense related to our product financing arrangements.

For the third quarter of fiscal 2021 our net income attributable to the company totaled $76 6 million or $8.84 per diluted share compared with net income of $11 3 million or $1 61 per diluted share.

And Q3 of last year, our diluted EPS for the quarter is based on the weighted average shares outstanding during the quarter, which totaled $8 7 million shares and is not based on 11 1 million shares which were outstanding at the end of March.

Net income attributable to the company for the three months ended March 31, 'twenty 'twenty. One included $26 3 million Remeasurement gain on our preexisting equity interest and J M. B in connection with its acquisition.

Excluding the Remeasurement gain net income attributable to the company from the third quarter of fiscal 2021 was $50 3 million.

Net income attributable to the company also included coupon and 10 million of nonrecurring costs associated with the acquisition of J M D.

For the nine month period, our net income attributable to the company totaled $108 6 million or $13 61 per diluted share compared to net income of 12.7 million or $1.80 per diluted share and the same year ago period.

Our diluted EPS for the nine month period is based on the weighted average shares outstanding during the nine month period, which totaled 8 million shares and its not based on 11 1 million shares outstanding at the end of March.

Net income attributable to the company for the nine months ended March 31, 'twenty 'twenty. One included $26 3 million Remeasurement gain on our preexisting equity interest and J M D and connection with its acquisition.

Excluding the Remeasurement gain net income attributable to the company for the nine months ended March 31, 2021 was $82 3 million.

Net income attributable to the company also included $2 6 million of nonrecurring costs associated with the acquisition of day M. B.

Now turning to our balance sheet at quarter, and we had $38 $8 million of cash compared with $52 $3 million of cash at the end of fiscal year 2020.

Our tangible net worth at the end of the quarter was 110 5 million up from $91 million at the end of fiscal year 2020.

Our balance sheet now who's J M D and the related intangible assets and goodwill based on our preliminary purchase price accounting, we commenced the amortization of the acquired developed technology and customer relationships and tangible assets. During that March is the amortization will be and ongoing.

Non cash expense, which will be significant commencing in our fiscal fourth quarter.

That completes my financial summary, now I will turn the call over to Thor, who will provide an update on our key performance metrics Thor.

Thank you Kathleen.

Looking to our key operational metrics from the third quarter and nine months of 2021 and so.

771000 ounces of gold and Q3, which was an increase of 52% from Q3 of last year and an increase of 61% from the prior quarter.

And I'm curious before 197 million ounces of gold and he left.

30% from the same period last year.

We sold $33 1 million ounces of silver and Q3, which was up 29% from Q3 of last year and up 56% from last quarter.

And I must period, we sold $78 6 million ounces of silver, which was up 29% from the same period last year.

Wholesale trading ticket volume, which represents the total number of product orders processed by our trading cash increased 51% to 44960 <unk> tickets from the prior quarter, but decreased 8% from true Q3 of last year and the nine month periods wholesale sales trading ticket volume decreased 5%.

110000, and 104 tickets compared to the same year ago period, while our ticket volume decreased compared to prior year periods. Our average order size, particularly increased versus the comparable periods driving an increase and overall revenue.

There are key metric, we evaluate is inventory turnover, which is a measure and how quickly inventory has moved during the period from the third quarter, our inventory turnover ratio was three point Shannon.

3% from $3 six and the prior quarter and was consistent with the inventory turnover ratio on Q3 of last year and the nine month period, our inventory turnover ratio was 12, which is up 13% from Gen six and the same year ago period.

And finally, the number of secured loans at the end of the quarter totaled 1571 and increase of 19% from the prior quarter and and increases 266 per se from Q3 of last year. The dollar value of our loan portfolio at the end of the quarter totaled $100 7 million, which is up 5% from the barcode.

And at 103% from Q3 of last year typically the number of loans increased during periods of rising precious metal prices decreased during periods of declining precious metals prices over the past year, our silver prices have rebounded and we have experienced growth and our CSD and <unk> portfolio.

That concludes my prepared remarks, I'll now turn it back over to Greg to talk about the progress we've been making on our key operational initiatives right.

Thank you Thor.

Do you and Mark business continues to benefit from a sustained demand and the precious metals market.

The acquisition of JMP was truly transformative for the company and its allowing us to take greater advantage of the heightened demand for precious metals and through our expanded online and e-commerce channels.

And in March direct to consumer segment, which includes J M. B as well as gold line is now <unk> fastest growing business segment with the highest margins.

Hey, Mark delivered a record quarter and our direct to consumer segment.

Which included continued strength at gold line.

And notably a strong initial contribution from J M bullion.

And the 12 days debt post transaction.

We're nearly 60 days into the acquisition and I can say that JMP has exceeded our expectations in terms of integration and synergy and financial performance.

B and a vertically integrated operator with robust minting capabilities has provided a mark with a competitive advantage, including price stability within the supply chain as well as access to silver during volatile periods and supply constrained environments.

Our private mint silver child.

Which recently became 100% owned by a mark and our minority interest and in the Sunshine Man.

Continue to enable our wholesale sales and ancillary services and direct to consumer segments to outperform.

Our new equipment purchases at the silver Todd and Matt have expanded our overall capacity and protect production capabilities, which.

And which has allowed us to produce on average 500000 ounces per week over the last 30 days.

It's important to note that the silver Con man has been able to operate 24 seven.

For quite some time now and it's really really benefited and helped us with this this supply and fabricated products.

During the third quarter, we installed our new pizza oven furnace, which is now producing.

The newly designed 100 ounce and kilo Pony silver bars.

JMP has seen initial success selling these which are in high demand and from the marketplace.

So overtime as bringing another pizza oven online this quarter, we expect the two new furnaces will ultimately increase silver accounts overall ounce outturn.

By at least 50 per cent compared to a year ago.

It's worth noting that these production numbers are based on demand and are a function of product quantities and the mix of products are fabricated.

Average weekly production volumes do not always provide a complete picture.

That being said, we've scaled capacity to meet demand and in turn further improve product quality and overall design capabilities.

As demand for silver and gold products continue to outstrip supply and our focus remains on industrial sourcing of raw material.

And fabricated product production.

Turning to our logistics operation Q3 set a record for retail shipping from am global logistics and.

Tracked during the quarter, we saw a 74% year over year increase and the number of packages shipped.

Additionally, we are very pleased with the initial progress we've made during April and integrating J M B's Dallas facility into our overall logistics operation.

The Dallas facility is now online and we're starting to see the early benefits from this facility and managing all of J M billions retail and buyback activities.

C F C.

And our secured lending segment continue to rebound nicely from the lows, we saw last March and.

As Thor mentioned, we saw the value of our loan book surpassed 100 million at the end of the third quarter.

On top of this we're realizing nice synergies between T D S CFC and JM volume.

She is now able to offer secure financing to JM volumes user base.

Allowing them to partially monetize their existing fully paid for precious metals holdings.

So looking ahead.

We are entering our fiscal fourth quarter with continued economic and operational momentum.

We remain confident that our favorable competitive position into two industry, leading platforms and proven business model will help us to capitalize on near term opportunities and realize continued growth and profitability over the long term.

Operator.

Thank you we will now begin the question and answer session to join the question queue. You May Press Star then one on your telephone keypad and you will hear atone and acknowledging your request. If you are using a speakerphone. Please pick up your handset before pressing any teeth to withdraw your question. Please press Star then two.

We will pause for a moment as callers join the queue.

Our first question comes from Tom Forte of D. A Davidson. Please go ahead.

Great. So first off Greg Jordan and Kathleen Bravo, just unbelievable performance. So I have one question and one follow up.

So from my question first question, you converted Jan bullion and the silver town meant to wholly owned operations, So Greg at a high level.

What are you thinking on that as far as future opportunities, including a potentially and international ecommerce.

Uh huh.

And then it certainly on our list we've talked about it I Michael is on the phone also and it's something that he and I talk about regularly I mean, we currently have a good list of initiatives and projects that we're focused on we prioritize them and.

And I would say that you know international expansion is it that is near the top of the list we believe that.

You know it took a pretty big step to try to recreate dzhambul and outside of the United States and.

And our initial feelings today are that we wanted to find a good partner that has an existing business and.

Debt that you know we're familiar with that we believe is a good operator that has local knowledge and his first you know and whatever area you know geographically, we decided to tackle first.

But I would say that you know.

We've already you know and the last 45 or 60 days, we've we've got it on the list and and we're investigating some opportunities so.

We believe that you know.

Definitely on the horizon.

Great and then for my follow up question I wanted to look ahead kind of the debt for the next 12 months.

Certainly theres a lot of concerns about inflation.

And historically, how has that translated to interesting precious metals, especially gold and then how should we think about his correctly. When you have inflationary concerns and a high level of interesting on how that's translated to spreads.

Well, you know spreads are driven by demand and.

And as you can see from our results, we're seeing incredible demand for the products that we.

We sell.

You know it's hard for me to know.

You know.

Exactly how inflation is going to play out.

Because you know.

It's 180 degree pivot from what we were seeing nine to 10 months ago. When we were dealing with the COVID-19 and and you know inflation was nowhere to be seen.

I think that you know.

We have always said over those for as long as I've been in the business and and as long as I've been doing this and and I remember 19, 79% and 1980 has been extremely good times for the precious metals business.

You know it can't hurt us when millions of people are out there, saying the eyewear and every day and.

And you know, we hear it and and there's clearly.

A new level of concern on.

Xiety and our customer base.

As inflation gets gets talked about we talked about this on on our last call and.

Thank you.

This is a this is the kind of environment that we always believe is going to be beneficial.

I've never had and opportunity.

We're a vertically integrated business with millions of retail customers and it will.

We acquired over the over the last six months to to actually see what the effect is going to be but my guess is it's going to be very positive.

Great.

Greg Joy, Kathleen and Michael too.

Thanks, and great quarter.

Thank you and thanks for your your report Tom and you you've done a great job on learning the company fairly quickly.

Thanks, I appreciate that.

Once again, if you have a question. Please press Star then one our next question comes from Craig Irwin of Roth Capital Partners. Please go ahead.

Hi, good evening and and thank you for taking my questions.

Can you maybe talk a little bit about the updated metrics for JM volume.

When you announced the acquisition and completed the deal metrics that you shared with everyone.

Predated Ah I guess, we'll call it the ready run on on silver.

And I I would guess debt both and.

Hey, Mark and Jam bullion and picked up quite a few customers in the preceding weeks.

Do you have updated metrics on sort of total total total number of customers average ticket size et cetera.

But you might be able to share with us.

Yeah, I don't I don't think you know and I don't have the specific numbers right now and they're very fluid, but maybe Michael do you think you want to just tackle kind of an overview of how new client acquisitions had been going and how the you know the this rebate situation has affected us.

But obviously, we've seen a lot of new customers very unique customers, Craig, but and Michael go ahead, and and talk about that.

Yeah no problem soon.

So at a high level the user acquisition remains very strong.

Thought setting records at the end of January and February and we've stayed pretty close to those numbers and I think what's been encouraging to see and our businesses those customers who did come in as part of that silver squeeze and they are doing is he is our normal customers are.

And so that the demand for silver at the retail level is remaining remarkably high and obviously, we're happy to see that on the <unk> side, we're still largely in line with with what we had and the acquisition numbers.

Still a very heightened day, it'll be versus our historical which was closer to $1000.

Understood. Thank you.

So.

Greg or maybe store when.

When I look at the other income from.

Your equity investments minority investments and a small number.

Other companies out there.

$775 million in the quarter.

It's a very nice number I think that that greatly exceeds the total amount you've invested in those other companies to date.

Can you maybe talk about the potential for a mark to fold them into the family.

Way that jam buoyant, which was brought on board.

And does this environment create create appetite with those those minority investments for a path to market and and do you feel that that a mark is obviously the best path to market.

Sure I think the $7 7 million also includes a catch up on Jay on volume.

Or.

A little under $4 million, so its a little outsized because we you know we got the benefits and March of <unk>.

On catching up on our our Jim the way, we normally reported plus we had the you know the 20 or so days in March that we had so so the numbers are a little bit you know one timer there, but I will say that you know the other equity investments that we have right now are outperforming and similar fashion.

And based on their size.

And what our expectations are so I would expect that to continue.

And we talked about this when we were doing a road show for our for our equity offering that we believe the debt rolling up businesses into our platform and and and do our infrastructure is as you know at the top of our list and.

And it and it continues to be and.

And there you know the volatility and the marketplace and the uncertainty as to what the future holds and I believe is good for a mark I believe we have data information and metrics internally.

And that others don't have and and how we would integrate a business with our experience and what we've been doing and seeing some of our other partners performance I think gives us a great opportunity.

Two.

To be competitive or to be you know a favorable stopped for somebody who's looking to monetize what they built so I I I think we are.

I won't say that we're close to anything at the moment, but certainly you know Michael and I have both field and calls from from other companies.

And I have seen the J M.

Action and you know our I have expressed interest and talking to us. So you know what.

We said, we would do it and and we plan on continuing.

Great. Thank you. So my next question is about linearity in the quarter. So I really appreciate it the and net income number six and a half million from.

J M B and the last 12 days of March that is tremendous profitability and north of half a million dollars a day.

You know I assume that they a mark.

Core platform saw similar backend and the quarter strength.

You know can you can you confirm that we didn't see this this SKU and profitability into the back end of the quarter.

And can you maybe comment about how that's continued into the June quarter.

Things you know chain.

Changing from week to week.

What should we think about the the continuity of sort of the average and what we've been saying not just this quarter, but over the last few quarters.

Sure.

We've talked about in the past, our Q2, which ended December 31.

It was a little bit slower again, we've talked before about the timing of when we have product and when we actually sell product and deliver product. So so you know it's hard to draw a.

Now our line right down at the end of a month or Hardy and a quarter. So you do get some carryover.

Carryover or you get some take back so it is it can be a little bit difficult to pinpoint, but I will say that.

Towards the end of the calendar year and 2020 on.

November and and the beginning of December.

Did see things slow down a little bit and I would say that was predict predict particularly on the demand side. It wasn't really a product availability issue.

As we've talked about before towards the end of December and the first couple of weeks of January we saw you know.

Increased demand.

Specifically for products that we had and we were able to deliver very quickly.

I think you know just kind of giving you a background and towards the end of January again, I think things kind of slowed a little bit a little bit of that might've been product availability.

February 1st our first week of February we had the silver read it.

Explosion, which which which Michael and I have talked about that you know drew drew on a whole new unique group of customers to the J M base as well as other other companies and mark supplies and other companies.

And Mark has equity interest and.

And then you know I think towards the tail end of March are you now.

We did see really good numbers and they did carry over into the beginning of April.

And in April was you know was we were very comfortable with and now we're just just getting in to me and it's probably a little bit early to say there you know how how may is going to be but but I'll say I would say that you know and the March was great going into them to the new quarter and and April has been Ah AP.

Oh look it's looking like and as we're seeing the numbers now in April is looking good and.

And Hum.

In fact, we talked about earlier I mean that the macro environment is setting up very good for US right. Now you know, there's there's a and others.

We have had the battle over the last four or five years, basically a never ending up up to the REIT stock market and this is and this is.

And this is supposed to be very good for us and that's looking like it is where we're and we're getting some shaking and some volatility and equities and some talk about inflation and higher rates and and you know the feeling that that maybe maybe we're not hearing everything that's going on and that there's something out there that you know what I mean from an inflation standpoint.

And that's not being reported I think that that is very good.

To drive our customer base as well as you know the political and political winds right now still seem to be blowing in our favor so.

It's a very exciting time for us here a day mark.

Understood and then last last question, if I may I'm physical product availability can you maybe share.

What you feel your current positioning is and will continue to be a major strategic advantage for a mark over the coming quarters.

Okay.

I mean, if the demand stays where it is and we've got the lion's share of the supply and it's gonna be very good for us I I I I think that you know from a manufacturing standpoint.

You know, our our silver Con men and our relationship with Sunshine has has definitely.

Given us product and given jam and gold line product when others don't habit and that's that's that's good for us.

As it relates to available product at the moment.

We are and the processes I sign up and bringing some new equipment online and silver town and.

And that I would say and we'll probably have a little less product per sale in may, but but you know we anticipate that towards towards the end of may or the beginning of June on all of our new equipment will be running and our old equipment should should continue to run at Max capacity, So and <unk>.

We were looking forward to.

Creating new products, we have a number of new products.

On the on the drawing board that we hope to launch are you now and the next few weeks as well as.

Sunshine is performing very well right now and and manufacturing a number of new gold products and a number of new silver products.

For for both private and sovereign mint use.

And.

And it looks it looks pretty good day. The U S. Mint continues to struggle with supply and I know a number of you follow what goes on at the U S Mint as it relates to silver Eagles and.

And you know theres been a.

Ongoing lack of supply and the 2020 silver Eagles, which has been great for us because we've had private and then product high and we've been able to fill that that lack of supply with our own product, which you can see has benefited our bottom line tremendously.

Great well, thank you and congratulations for really impressive results really impressive.

Thanks, Craig and thanks for all your work on on the company.

Okay.

Once again, if you have a question. Please press Star then one.

At this time. This concludes our question and answer session I'd now like to turn the call back over to Mr. Roberts for his closing remarks.

Hi, Thank you very much again I just want to thank our many shareholders old and new that are on the call today and have supported and mark and and given us the ability to grow and perform the way. We have you know it's we're in a very unique position being a small public company that you know was able to to put a deal together with J M.

The help of a number of new investors as well as some of our old investors and and that that is has you know does not go on notice we really appreciate it.

And we hope to be you know continue being a great you know Shepard of the capital that you have trusted us with we feel like we're doing a very good job right now and and where I think our risk management and our R are the way, we're viewing opportunities and and viewing.

You know the protection and the growth of capital I think is very very good right now and we're very happy with with our prospects. So.

And just many thanks to our employees and their dedication and commitment and any marked success.

Couldn't do it without our staff and our team and we look very very much forward to keeping you apprised and remarks progress going forward.

And if theres any other questions that pop up feel free to call any of us directly and we'll try to and we're trying to.

To help you out with your question. So thank you very much on.

Operator.

Thank you before we conclude today's call I would like to provide a Mark's safe Harbor statement that includes important cautions regarding forward looking statements made during this call. During today's call. There were forward looking statements made regarding future events statements that relate to.

And so a marks future plans objectives expectations performance events and alike are forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995, and the Securities Exchange Act of 1934 future events risks and uncertainties individually or in the aggregate could cause actual results to.

Differ materially from those expressed or implied and these statements factors that could cause actual results to differ include the following the failure to execute the company's growth strategy as planned greater than anticipated costs incurred to execute this strategy changes and the current domestic and international political climate and increased competition for a Mark's higher mark.

And services, which could depress pricing the failure of the company's business model to respond to changes and the market environment as anticipated general risks of doing business and the commodity markets and other business economic financial and governmental risks as described and the company's public filings with the Securities and Exchange Commission debt.

And it should believe estimate expect intend anticipate foresee plan and similar expressions and variations thereof identify certain of such forward looking statements, which speak only as of the date on which they were made additionally, any statements related to future improved performance and estimates of revenues and earnings per share are forward looking.

Statements. The company undertakes no obligation to publicly update or revise any forward looking statements readers are cautioned not to place undue reliance on these forward looking statements. Finally, I would like to remind everyone that a recording of today's call will be available for replay via a link and the investors section on the company's website. Thank you for joining us today for a Mark's earnings call.

You may now disconnect.

Yeah.

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Okay.

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