Q4 2021 La-Z-Boy Inc Earnings Call
Please standby for.
Good day, ladies and gentlemen, and welcome to your Lazy Boys the school 'twenty 'twenty, 1 fourth quarter and full year conference call. All lines have been placed in a listen only mode and the floor will be open for your questions and comments following the presentation as of <unk>.
Reminder, today's call is being recorded if.
If you should require assistance throughout the conference. Please press Star then zero.
At the time it is my pleasure to turn the floor over to your host of Kathy Liebmann Ma'am the floor is yours.
Thank you Linda good morning, and thank you for joining us to discuss our fiscal 'twenty 'twenty, 1 fourth quarter and full year results.
With us. This morning are Melinda Whittington leaves the boys, President and Chief Executive Officer, and Bob Lucien Chief Financial Officer, Melinda will open and close the call and Bob will speak to the financials Midway through we'll then open the call for questions slides will accompany this presentation and you may view them.
Through our webcast link, which will be available for 1 year and the telephone replay of the call will be available for 1 week beginning of this afternoon Biff.
Before we begin the presentation I'd like to remind you that some statements made in today's call include forward looking statements about leaves the boy's future performance and other matters of.
Although we believe these statements to be reasonable our actual results could differ materially the most significant risk factors that could affect our future results are described in our annual report on form 10-K, we encourage you to review those risk factors as well as other key information detailed in our SEC.
Filings.
So our earnings release is available under the news and events tab on the Investor Relations page of our website and it includes reconciliations of certain non-GAAP measures, which are also included as an appendix at the end of our conference call slide deck with that I'll now turn over the call to Melinda Whittington Lazy boys pre.
It didn't.
The Melinda.
Thank you Kathy and good morning, everyone.
Late yesterday afternoon, we reported our fiscal 'twenty, 1 fourth quarter and full year results, what a difference a year makes.
When we started the fiscal year the world was still in the early stages of COVID-19, and things seemed pretty dire.
We had just restarted our plants after a month long shutdown and most retailers were still close are just beginning to reopen the.
Then as the year progressed, we experienced unprecedented demand for our products, we strengthen our business by significantly expanding production capacity in response to this demand.
Enhanced our retail platform acquired the Seattle based lazy boy of furniture galleries, and turn enjoyed very profitable.
All while navigating a multitude of challenges, including multiple supply chain disruptions raw material price increases and macroeconomic uncertainty.
Through it all of our highest priority was and continues to be the health and safety of our employees and our consumers.
The global pandemic tested everyone in just about every way and I am so proud of the lazy boy team for its unbelievable perseverance dedication and resiliency.
All of these that enabled us to deliver excellent results even in the midst of this historic challenges.
And I wanted to take this opportunity to express my sincere gratitude to every 1 of our employees and business partners all of whom contributed to our success.
I also want to against day, Kurt Darrow, our now retired president and CEO for his unwavering leadership in the last year and throughout his long career.
Turning to our financial results for fiscal year consolidated sales grew to $1.7 billion and consolidated GAAP operating margin increased to 7.9%.
Non-GAAP operating margin reached 9% the highest margin level achieved in recent history.
Over the year, we generated $310 million in cash from operations and returned $61 million to shareholders through share repurchases and dividends truly outstanding results, particularly considering the challenges of the fiscal year.
Specifically in the fourth quarter consumer demand across all business units continued to be robust, reflecting the ongoing allocation of consumers' discretionary dollars to the home the strength of our brands in the marketplace, where we are disproportionately winning and excellent execution from our retail.
And sales teams.
For the quarter record sales of 500 of $19 million led to all time record profits driven by increased production capacity excellent performance by our company owned Lacy boyfriend nature of galleries and continued profit growth at Joy Barry.
Additionally, our cash generation enabled us to return $50 million to shareholders through dividends and share repurchases in the quarter.
And the fiscal 'twenty 2 is off to a great start with continued strong written order rates and a record backlog of setting us up well for a strong year of shipments of hat.
Written sales momentum continued to be very strong in the fourth quarter of.
Across the lazy boy of furniture galleries network written same store sales doubled increasing 100% in the quarter versus a year ago.
And to provide some additional context written same store sales for the quarter increased 29% compared with our pre Covid fiscal 2019 fourth quarter for a compound annual growth rate of about 14% over the 2 years.
As I turns of the discussion of our segments My remarks will detail, our non-GAAP numbers, which we believe better reflect underlying operating trends and Bob will cover the non-GAAP adjustments.
Starting with our wholesale segment, which includes our upholstery and case goods companies as well as our international business delivered sales for the quarter grew 40% to $384 million compared with prior year quarter, which was impacted by COVID-19 related shutdowns.
When Chile sales increased 9.5% from fiscal 'twenty one's third quarter as we continued to increase production capacity.
Non-GAAP operating margin for the wholesale segment was a healthy 10, 2%.
Disciplined cost management on the advertising helped to offset higher raw material and freight costs as well as expenses to expand production capacity to service record backlog.
Also last year's fourth quarter benefited from a 1 time $16 million rebate of previously paid tariffs, partially offset by higher bad debt expense.
We continue to expand capacity the service demand. However continued strong written growth is still outpacing production increases translate into an expansion of backlog and lead times for the lazy boy branded business.
For perspective today, our backlog is about 8 times higher than pre Covid and 16 times higher than at the end of last fiscal year.
Our supply chain team has demonstrated great agility over the past year and has been relentless and taking actions to increase capacity, including adding manufacturing cells second shifts overtime and weekend production at our U S plants.
Temporarily reactivating a portion of our Newton, Mississippi Assembly plant.
Adding manufacturing cells and available for space at our cut and sew Center in Mexico.
Opening a new manufacturing facility in Mexico, and San Louis Rio, Colorado, Our SLR C where production started in December and continues to increase as new sales are added and new employees are trained.
And recently opening an additional fabric sewing site in Paris, Mexico with plans to increase capacity over time.
Our supply chain team has done excellent work of establishing new capacity and given continued strong product demand. We are increasing the number of sales at these new locations to shorten lead times, which today range between 4 to 9 months for the lazy boy branded business, depending on the product category versus ours.
Normal 4 to 6 weeks.
Beyond capacity challenges, we continue to face raw material price increases due to supply and demand trends and supply chain disruptions income.
Input materials, such as foam steel and plywood are up 2 to 4 times their pre pandemic prices, while we have taken several rounds of pricing in new written on new written orders.
As cost of continued to escalate or.
Our significant backlog results and it taking several quarters for pricing actions to flow through to delivered sales and our financials.
And as we continue to monitor costs, and we will take further actions when and if necessary we've taken additional pricing just last week.
Our procurement team is also actively managing product availability challenges, including shipping container of issues that have delayed deliveries of finished product to our international and case, good businesses and component part of availability such as electrical components for our higher margin power units. Despite.
<unk> supply chain disruptions. The team has done a great job keeping us in stock for major raw material inputs, including wood foam and steel.
While we actively focus on increasing production and managing supply chain challenges our demand remains very strong the lazy boy brand continues to meet the test of time with enduring attributes of comfort and quality.
Over the past year, all product categories have performed well with sectional and modular sofas continuing to be very strong.
At the most recent high point furniture market, we announced the lazy boy has teamed up with Tempur sealy to create a proprietary material. Unlike ordinary memory foam called temporary response that is specifically designed for our seating and sleep of mattresses.
With 2 iconic brands banding together, we have seen great interest from our customers.
And on the marketing side with Kristen Bell as our brand Ambassador we are seeing increased consideration for lazy boy among younger consumers underscoring her broad appeal to both our core and target consumer.
Now, let me turn to the retail segment, which produced excellent results for the quarter delivered sales increased 39% to a record $194 million and delivered same store sales increased 35% versus year ago on strong execution.
<unk> by the team.
Non-GAAP operating margin increased to 12, 2% from 10, 8% in last year's comparable quarter, primarily driven by fixed cost leverage on higher delivered sales volume.
Last year's fourth quarter was marked by a reduction in sales due to COVID-19 related store closures in the last 4 weeks of the quarter.
Written same store sales for the company owned lazy boy furniture galleries stores more than doubled increasing 114% in the quarter, reflecting positive trends across all sales metrics, including traffic conversion and average ticket for.
For perspective against the fiscal 2019 fourth quarter. When we were in a pre COVID-19 environment written same store sales increased 40% that's about an 18% compound average growth rate over the 2 years, which again demonstrates the strength of our business and brand in the marketplace and.
Consumers feel safe shopping in our stores.
Our primary focus is to service and delight consumers at all touch points, providing them with a great end to end experience every time as part of this we are committed to enhancing our omni channel presence to offer an easy and comprehensive experience to meet consumers wherever they want to shop whether on.
Line in store or a combination of both.
As we invest in technology enhancements to make the online experience more robust and engaging we will continue to invest in the lazy boy furniture galleries store system to provide consumers with modern bright and inspiring stores.
For fiscal 'twenty to approximately 30 projects, including new stores, Remodels and relocations will be completed across the network with 2 thirds of the projects within our company owned portfolio.
Also in addition to the Seattle acquisition that closed last September. This week, we signed an agreement to acquire 3 stores in the vibrant long Island, New York market.
I'll now spend a few minutes enjoy bird, which turned in a great quarter.
Delivered sales for the period, which are reported in corporate and other more than doubled increasing 144% to $38 million, reflecting strong end to end execution.
Written sales increased 125% in the quarter versus the prior year period, reflecting ongoing strong order trends and the strength of the brand and the online marketplace.
<unk> again delivered profitable growth and improved its gross margin.
Our <unk> team continues to do an excellent job in terms of marketing effectiveness, we've increased our marketing spend to drive consumer acquisition, bringing the right consumer to the site and providing an excellent online experience leading to improved conversion.
I'll now turn the call over to Bob to discuss the financials Bob.
Thank you Melinda and good morning, everyone.
As a reminder, we present our results on both GAAP and non-GAAP basis.
We believe the non-GAAP presentation, better results underlying operating trends and performance of the business.
As detailed in our press release and in the tables in the appendix section of our conference call slides.
Excluded from our fiscal 'twenty, 1 fourth quarter non-GAAP reported our purchase accounting charges for acquisitions totaling $2 million pre tax.
Of course related tax adjustments totaling <unk> <unk> per diluted shares.
Primarily due to a write off for the joy of bird contingent consideration liabilities based on forecast performance.
For the full fiscal 2021 of your non-GAAP results exclude purchase accounting charges totaling $17 million pretax for 33 for.
The diluted share primarily due to a write up of the joy bird contingent consideration liabilities based on forecast performance.
2 a change of $3.8 million pretax for 7 cents per diluted share related to the company's business realignment initiative announced in June of 2020.
And finally income of $5.2 million pretax or <unk> <unk> per diluted share for employee retention payroll tax credits for <unk>.
For the qualified for under the Cares Act.
Fiscal year 'twenty also included non-GAAP adjustments as we have talked previously and again are detailed in our press release and in the tables in the appendix section of our conference call slides.
Now onto our results.
The comments from here will focus on our non-GAAP reporting unless specifically stated otherwise.
On a consolidated basis fiscal 'twenty, 1 fourth quarter sales increased 41% to a record $519 million, reflecting strong demand and the comparison to the fiscal 'twenty fourth quarter, which was impacted by COVID-19 related plant and retail closures.
Consolidated non-GAAP operating income increased to $52 million and consolidated non-GAAP operating margin improved to 10.0% versus 9.3%.
Non-GAAP EPS was <unk> 87 per diluted share in the current year versus <unk> 49.
In last year's fourth quarter.
Strong operating margins in the quarter benefited from disproportionate growth and fixed cost leverage in the retail segment and the joy Burger as well as reduced marketing advertising and administrative spend as a percentage of sales.
Which more than offset rising commodity costs in the quarter.
Moving onto the full year results for fiscal 2021.
Sales increased 1.8% for $1.7 billion.
The strong result, given the slow start to the fiscal year with many retailers closed, including most of our company owned lazy boy furniture galleries, and our plants just restarting production at limited capacity.
For the year non consolidated from sorry, excuse me for the year consolidated non-GAAP operating income increased to $157 million and consolidated non-GAAP operating margin reached 9% an all time high in recent history.
Non-GAAP EPS increased to $2.62.
For diluted share versus $2.16.
In fiscal 2020.
Consolidated gross margin for the full fiscal 'twenty, 1 year increased 10 basis points versus the prior year.
Changes in our consolidated sales mix driven by the growth of retail enjoy bird, which carry a higher gross margin than our wholesale businesses drove the biggest change in margin.
Additionally, joy <unk> experienced a significant improvement in gross margin primarily.
Resulting from product pricing actions.
An increase in average ticket.
<unk> product mix.
And synergies as George group was integrated into our broader supply chain.
Partially offsetting these gross margin increases were higher costs related to expanding our manufacturing capacity across the company.
A shift in product mix related to those capacity increases.
Rising raw material costs.
It is important to note the last year's gross margin was positively impacted by rebates on previously paid tariffs, which provided a 100 basis point benefit to gross margin.
SG&A as a percentage of sales.
Decreased 70 basis points for fiscal 'twenty, 1 versus the fiscal 'twenty.
Primarily reflecting cost reduction initiatives taken throughout the year, including lower marketing and advertising spend given the strong demand trends.
Fiscal year 'twenty results included bad debt expense due to the art van bankruptcy in fiscal 'twenty as well as the provision for credit losses last year due to the uncertain economic environment caused by Covid.
Partially offsetting these decreases were increased incentive compensation costs related to the company's performance and changes to our consolidated sales mix due to the growth of our retail segment and Joy bird, which both carry higher SG&A costs than our wholesale businesses.
Our effective tax rate on a GAAP basis for fiscal 'twenty, 1 was 26, 3% versus 31, 4% in fiscal 'twenty.
Impacting our effective tax rate for fiscal 'twenty was the net tax expense of $4 million.
Primarily from the tax effect of the nondeductible goodwill impairment charge related to jewelry bird and tax expense of $1.3 million from deferred tax attributable to undistributed foreign earnings no longer permanently reinvested.
Absent discrete adjustments the effective tax rate in fiscal 'twenty would have been 26, 4%.
Turning to cash for the year, we generated $310 million in cash from operating activities.
Reflecting strong operating performance.
And a $140 million increase in customer deposits from written orders for the company's retail segment and Joy bird.
We ended the period with $395 million in cash and no debt.
Up from $264 million in cash at the end of fiscal 'twenty and $75 million drawn on our credit facility.
In addition, we held $32 million of investments to enhance returns on cash compared with $29 million last year.
As we have managed the business through COVID-19, we've been conservative with cash and in the process of <unk>.
Strengthened our resources to capitalize on future value, creating opportunities to grow out of the pandemic.
During the year, we invested $38 million in capital.
Primarily related to machinery and equipment improvements the select retail stores.
For new production capacity in Mexico.
And upgrades to our Dayton, Tennessee manufacturing facility, which have now been completed.
Regarding cash returned to shareholders for the year, we paid $16.5 million in dividends to shareholders and spent approximately $44 million purchasing $1.1 million shares of stock in the open market under our existing authorized share repurchase program.
This leaves $3.4 million free.
<unk> 4 million shares of purchase availability in this program.
Our capital allocation strategy remains the first invest in the business to deliver long term results.
Followed by returns to shareholders through a consistent dividend and share repurchases.
Before returning the call true Melinda.
Let me highlight several important items for fiscal 2022.
We expect our non-GAAP adjustments for fiscal 'twenty..2 will include purchase accounting adjustments for the previous acquisitions estimated to be at 1% of <unk> per diluted share.
This excludes any further adjustments that may be made to the joy for contingent consideration liability depending on updated estimates of joy birds ongoing business trajectory.
Regarding seasonality incoming order rates in the large backlog will mitigate the usual seasonal slowdown associated with the first quarter.
However, as usual the first quarter is limited to 12 weeks of production and shipments to enable of shutdown week in July for maintenance for most of the companies plants compared to the usual 13 weeks of production and shipments in quarters 2 and for.
Regarding production capacity demand trends remained strong across the business with backlog at record levels, providing for a long tail.
We anticipate ongoing incremental increases in capacity through fiscal 2022, as new Assembly sales are added and efficiencies improve which will result in continued incremental progress on delivered sales.
However, we expect temporary significant pressures on profit margins in the first half of fiscal 'twenty 2 compared to the very strong profit margin of this Q4.
We expect to face ongoing global supply chain disruptions and escalating raw material and freight costs.
Which will cause volatility in results and we will eventually be offset by our already announced pricing actions in the back half of the year as we work through our backlog.
Further we intend to continue investing in our business to ensure we play offense and strengthen the business and its brands for the long term, even as we weather the short term challenges.
The full impact of these factors May result, in a temporary impact of profit, which could be in the range of 300 basis points in the first 2 quarters compared to our very strong Q4 levels, but still in line with or above our historical levels for the summer months.
Finally, as we make investments in the business the strengthen the company for the future. We expect capital expenditures to be in the range of $55 million to $65 million for fiscal 2022.
Spending will support updating our lazy boy of furniture Gallery stores.
Updating and expanding our plants and investments in technology, the technology solutions across the organization.
And now let me turn the call back to Melinda.
Thanks, Bob.
The dynamics of the past year have been profoundly challenging but also educational.
These events affirm our prudent financial culture, which served us well during this uncertain period.
And our strong cash position provides opportunities for investment in our next chapter of growth.
For the immediate term we are focused on continuing to increase capacity and deliver units, but acknowledge the next several quarters will be volatile given we are still operating in unprecedented times.
That said, we are stepping back and evaluating our strength and our opportunities and we are investing in the company to emerge stronger and of post pandemic environment, and even more able to deliver long term profitable growth.
Although this is not an easy time it is truly an exciting 1 marked by change incredibly strong demand and the ability to play offense.
I, Thank our board of directors and all stakeholders for their support this past year and look forward to a fantastic future of continued growth and shared prosperity.
I. Thank you for your interest and lazy Boy incorporated.
And now I will turn the call over to Kathy to provide the instructions for getting into the queue for questions Kathy.
Melinda.
Ill begin the question and answer period now Melinda. Please review the instructions for getting into the queue to ask questions.
Thank you for the floor is now open for questions. If you do have a question or comment. Please press Star then 1 on your telephone keypad to join the queue. If youre using a speakerphone. Please pick up your handset to provide the best quality again, ladies and gentlemen, if you do have a question or comment. Please press Star then 1.
Your telephone keypad at this time and we go to our first.
The signal Bobby Griffin with Raymond James Please go ahead.
Good morning, everybody I hope, you're all doing well and thank you for taking my questions.
Hey, Bose.
Bob I just wanted to circle back quickly to your comments about the 300 bps of margin pressure just to make sure. We're all on the same page of of what's that referencing and kind of what timeframe. So is that is that in reference to the 10% EBIT margin that was posted for Q.
Are you seeing that <unk> and <unk> of 2021 should be down about 300 bps at the at the.
For the highest level of possible versus.
First of that 10%.
Raw material headwinds were as strong as they could be.
That's correct.
Okay and then so.
So for both quarters kind of the same type of trajectory off the 10, I mean that would put <unk> the below where kind of of it was in the October of 19 quarter, which was 7% of half of that is that all just raw material related or mix of business or if we end up at 7% EBIT margin is below the kind of where we were 2 years ago even.
Mostly it's mostly of the raw material impacts that we're seeing and again, we've taken pricing and it's taking a while for that price and to work its way through so it will work its way through.
Towards the end of Q2 into Q3 and Thats 1 of the margins will start improving.
Okay, Alright, that's helpful and then.
You know trying to usually <unk> is the seasonally weak quarter weak quarter, but with the margin of backlog that you have I think in the 10-K. It was $617 million of something called out I mean is the right way to think about the potential revenue side.
Side of things here on the <unk> basically 12, 13th of what you delivered in <unk> or is there something wrong with kind of using out of the.
As a as an estimate.
I don't think theres anything wrong using that as an estimate.
Okay.
And then I guess.
We continue to sequentially, yes, we continued to sequentially increase our capacity so I would expect that to.
At least the case.
Alright, perfect and then my my actually my follow up was there on capacity just trying to understand kind of where we are better today.
And I don't know what the right context, maybe if we want to put it back in are we at pre COVID-19 levels in terms of what the company can do in terms of units.
Or are we still kind of a little bit below what the capacity of the business was pre COVID-19 levels, just given the the challenges of getting foam and some of the materials.
Yes.
We're higher than we were pre COVID-19.
And again, we've continued to we were continuing to increase that just given the backlog that you referenced we're continuing to increase that to try to work of that backlog down.
Okay very helpful. I'll jump back in the queue, let somebody else ask some questions, but I appreciate the details here.
Thanks Ravi.
Next we go to the line of Brad Thomas with Keybanc capital markets. Please go ahead.
Hi, good morning.
Good quarter good morning for all the details.
On the window.
Maybe first just the Big picture question and then some housekeeping items to follow up on some of all of these questions, but just from a big picture standpoint Melinda.
All investing capacity and try to catch up from the very strong demand can you talk a little bit of that maybe what changes you're making in terms of how you run your supply chain and how you build the product to try to position yourself now.
Just to catch up to the strong demand you're seeing right now but.
Positioning the company for growth, how you're considering some of that.
Yes.
I guess I would take that in kind of 2 buckets. The first 1 is truly we were running a very efficient operation, but an operation that can flex in that single digit percentages kind of for volume that we've seen historically.
So really a lot of it is about.
The floor space and enough people well trained to continue to be able to flex that volume and as I called out in my prepared remarks. There are a lot of that has looked like available.
Available Labor Labor force and space in some of these Mexico locations as well as a lot more shifts.
Overtime at all in our in our U S plants, but.
To your point, we do continue to look at.
Where do you optimize even simple things like this is the short term item, but were training new people on more simple furniture and chairs and so forth and then as they get more up to speed of more capable than we're bringing the more complex pieces to them I think the biggest structural item that I would just call out.
Auto is.
And we've talked about it before but are subtly Rio Colorado location.
<unk> is a space that we've strategically had our eye on for a while to better service the west coasts overtime in the kind of the western half of of.
Of North America, and so that's a location that we brought up more quickly than maybe we had initially planned because of COVID-19.
And the demand that we're seeing but putting that location. There is a long time, a long term strategic footprint to better service and the risk and there are a variety of other either longer term activities that we're looking at are smaller, but that's probably the biggest 1 that I'd say is kind of a fundamental share.
That was on our strategic roadmap, but we moved it up more quickly because of the current demand.
That's very helpful.
And understanding that the just from price increases.
The sales volume level that you all can can generate should've gone higher but is there a good way to think about what day.
All of our value capacity number you are shooting for it will be at.
A few quarters from now or at the end of the year.
Yes.
It's a bit of a of a variable model honestly I mean, 1 we continue to add sells as we continue to see demand being strong and so.
What we are shooting for is somewhat driven by what are what we continue to see in the demand trends.
We're still growing and really throughout the rest of.
Throughout all of fiscal 'twenty, 2 I think we will continue to see.
Incremental progress each quarter in capacity and that is both through the sales that we're opening but also just as our folks get up the speed and get more efficient.
And then I would say that number can be somewhat fungible over time, particularly if we were to start to see.
If we start to see things continue to increase or if we were start to see some of that demand slowdown of that given the amount of overtime. We're working the second shifts the weekends and so far as we can we can always pull that back depending on where we see trends trends continuing so it's.
Hard to put a number on it just because I mean, there are both different inputs into what we're headed what we may need.
As well as we've got a lot of flexibility on how the back some of that off of build it up.
For any short term changes.
Okay, and if I could just squeeze 1 more in terms of thinking about cash you guys. Obviously have a inc.
Sizable cash balance today and with the strength in the business should generate a healthy amount of cash share this year.
For 1 I apologize if I missed it Bob.
Did you disclose your Capex plans for the year, how are you thinking about working capital needs for the year as you.
Grow inventory.
And what do you think about dealing with all of this excess cash thanks.
It's a great great problem to have the right now what I mentioned in the call was $55 to $65 million of capital.
Spending.
Again focused on the.
The company on improving our retail stores converting a number of our retail stores investing in more capacity investing in technology and technology solutions throughout the company. So that's where those those dollars will be gone, but will also be upgrading 1 of our plants of our other largest plant in the U S, which is neosho, which we use a lot of those dollars as well.
And we.
We will we will do all we can to go deliver what we can from a from a capacity standpoint, so if there's more.
The investment needed will go off from we'll do that.
We are also and you can see it in our working capital.
Not being shy on inventories, where we're trying to increase our level of inventories relative to trying to minimize the disruptions that we're seeing so for.
If there is disruption and from wood or steel, we're trying to carry the higher levels of inventory. So we're able to withstand those disruptions that occur so it doesn't impact for capacity.
We lose the shift of capacity because we're running Max out we can't get that back out to those are lost sales. So that's why we're investing.
More of an inventory from working capital perspective.
And then the other piece will be doing that again will continue with our consistent levels of dividends debt that we try to do and we will continue to invest in share repurchase.
Share repurchases.
Over and above just what's needed for the purpose of preventing dilution and you can see that from Q4.
We invested over $40 million of share repurchases in the quarter trying to get the full fiscal year up to where we've average for the last 3 years or for years.
And I would just add debt. We are we are stepping back to look at it is it's a great as Bob said, it's of great problem to have and so we are stepping back to look at where where we should be investing in our company.
To ensure that even post pandemic, we really can be on a strong growth trajectory.
Strong profitability. So it's the it's a good spot to be able to step back and really think about.
Where do we need to invest and make ourselves even better for the future.
Wonderful. Thank you so much.
Hum.
Ladies and gentlemen, if you do have a question or comment. Please press Star then 1.
Yeah.
And that does appear to be all of the signals that we have we returned the Kathy liebmann for closing remarks.
Thank you everyone for joining us. This morning, if you have any follow up questions. Please give me a call I will be available. Thank you and have a great day bye bye.
Thank you for this does conclude today's teleconference. We thank you for your participation you may disconnect. Your lines at this time have a great day.
Yeah.
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