Half Year 2021 First High School Education Group Co Ltd Earnings Call

Good day, ladies and gentlemen, thank you for standing by and welcome to the first High School Education Group first half 2021 earnings conference call.

Currently all participants are in a listen only mode leisure, we will conduct a question and answer session and instructions will follow at that time.

As a reminder, we are recording today's call. If you have any objections you may disconnect at this time.

Now I will turn the call over to Susie Wang director of the Blue shirt Group Ms. Wang. Please proceed.

Thank you operator, and Hello, everyone. Welcome to the first High School Education Group first but first half 2021 earnings conference call. Joining us today are Mr. Joshua Reed, Chief Executive Officer and Ben.

Oh, Chief Financial Officer, leading a new head of Investor Relations.

Leaves the results earlier today. The press release is available on the company's IR website at IR Docs, DIY I thought top as well as from Newswire services. A replay of this call will be also available in a few hours to our IR website before we continue. Please note that today's discussion will contain forward looking statements made under the safe.

Probation after you.

Probably Securities Litigation Reform Act of 90, 95 forward looking statements involve inherent risks and uncertainties as such the company's actual results may be materially different from expectations expressed today further information regarding these and other risks and uncertainties, including the Companys public filings with I think see the comp.

<unk> does not assume any obligation to update any forward looking statements, except as required under applicable law.

Also please note that unless otherwise stated all figures mentioned during the conference call or in Chinese.

With that let me now turn the call over to our CEO, Mr. Tang will kick in Chinese and then our COO CFO Amit you will translate his comments to English after that our CFO, Mr. Benjamin Sue will discuss our operations and financial highlights.

Please go ahead Mr. Jones.

Yeah.

Okay.

Hello.

All.

Equally conducting a woman.

Hi.

Welcome.

The army Arlington to somebody else what Linda.

Jennifer.

Uh huh.

I think what are you guys.

100 <unk>.

Yes.

Yeah.

So it's a little <unk>.

So he is on a path into ours. This is Bob.

Although that doesn't.

Alright, guys. Thank you.

Yeah.

Sure. Thank you.

Yeah well.

Uh huh.

So women who need.

Go go.

Go to the down on the visa scheme called all I need.

<unk> agree more.

Oh sure sure.

Yeah.

Yeah, well I was there.

Two question Sheila.

Bella Bosworth yourself.

Yeah.

You have a sense what.

Goldman Sachs.

First of all kudos here.

You go only as usual about Cobra.

Hum.

Hello, everyone. Thank you for joining our earnings conference call today.

In the first half of 2021.

The improved number of student enrollments translated into a healthy top line growth was 24, 8% year over year growth to RMB $240.0 million for total revenue.

Facing tough regulate regulatory environment, we remain committed to driving our rapid growth with further operation expansion, while improving utilization rate for our existing schools.

During this period, we had eight new school programs opened in multiple provinces.

Including three new high school programs.

Three new Gulf I'll repeat or school programs.

One new public School management service program, and one Middle School program.

Good.

Kids adult <unk>.

When was that.

Uh huh.

Thanks, Susan.

Shoot.

G suite.

How about a Saturday was most usual shear zone.

Total assembled in China.

Sure.

Oh, yes, sorry, if that's what you're all about 500.

Hmm.

No no.

It was a 500 lose are different.

As of September <unk> 2021, we are running a 36 school programs with a total of over 35000 students across Yunnan Province, Guizhou Province.

You see problems.

And then Mongolia Autonomous region Szechuan Province Unfortunately.

What is the utilization rate of 62, 3% compared to 55, 3% as of December 31.2020.

Right.

Goldman's Vishal.

Hopefully you all bought <unk>.

She is the lead.

Although by hundreds of Sundance.

She's worked all household with yourself.

Yeah.

She has held in.

Alright.

Yeah.

You take over.

You've often.

That's all right.

Well listen.

So that's what comes yourself Keybanc alone.

Well, let me she isn't them.

Oh Wow.

Is that possible.

Got you.

Thanks Allison.

Since you bought it you told.

<unk> already got all 500 Bazardo cheap.

They're in first we are operating 17 high school programs with a total of over <unk>.

<unk> thousand 500 students.

And school utilization rate of approximately 53, 4%.

And southern Cal called repeater of school programs with a total of over 1600 students in school utilization rate of approximately 62%.

We're cooperating with local government in multiple provinces to provide management services for public schools with a total of over 5500 students.

And thirdly, we are operating eight middle school programs with a total of over 9700 students at school utilization rate of approximately 82, 7%.

Okay.

The young won that game plan.

Uh huh.

Ooh walnuts I mean Goldman John.

Oh God awful in either region.

Yeah.

Should we see a courthouse.

What was the issue.

You can go to Ghana.

So as you thought.

Sundar.

Complying with relevant regulatory guidelines, we look forward to further solidify our leading position in China's private high school and golf I'll repeat our school program sectors.

We also aim to expand into new geographical markets with strong demands.

So as soon as the agenda.

T y.

We can't moved yet.

Sending the young Kwon the ski.

Yeah, Yeah, you'll go to the show.

<unk>.

Yeah.

So I thought yacht.

Okay.

Conversely genealogy.

Hudson can't release, where he got there so you'll need.

Gordon.

Could well knowledge isn't.

Yeah.

Bob I mean.

In addition to the 36 all the operators school programs. We have also entered into agreements to secure more school opening next year.

One particular example worth highlighting is that in late September we entered into an agreement to lease newly constructed school premises and facilities to sponsor a high school with capacity for over 2800 student beds in Sichuan Province.

Is that kind of a bigger shelf.

I like her.

Yeah.

Could you.

Hold on a guy.

I couldn't hear it.

Sundar.

Yeah.

Sure Sheila.

Colorado.

On the.

[laughter] permanent.

Called eat all women are Europe, and China Golden's yourself about peak.

I tell you a secret womans van kind of truly.

Thanks Jackie.

So I.

Thank you Jesus.

Scott Wheeler, yes Hum.

That's all.

Yes.

Right that's right yeah.

Good weather.

Sure.

At the least school premises was previously designed for canine agitation.

I was recently at least to us primarily due to the owners operation difficulties.

Is it changing regulatory environment.

And importantly, our strong brand name in operating high schools.

This agreement marks our high school business interests into Sichuan Province, where we aim to explore and satisfy the large market demand was similar arrangements.

Well George town Yellow you Sue Anderson.

But Joe you Fool me yesterday that it doesn't seem to do that.

RDR anywhere you know well Michelle who is the ruler.

How much do you realize that.

When you go into the fourth.

We like Yahoo.

So, yes, Joe you couldn't feudal kingdom sorry.

He won't trends.

Thanks, Dan.

So before I got here.

We also achieved meaningful progress in enhancing our education resources and services on June <unk> 2021, we announced our majority stake acquisition in Beijing long spring future plus education Technology Company limited.

Or a Bayesian long spring future plus.

This company is a technology driven education company, providing premium full time life AI online teaching and services.

Well my jogging.

Uh huh.

Wilmington, but youll see that Havent keytruda.

So D.

Joe you sit down.

Hugh.

New Chinese Shih-tzu, though.

So he would be true.

What do you see this year.

Yeah.

Well no one more than me back all of them.

Hook alcohol food grocery shop.

She of all well machines that Joe just talked to you.

Yes.

Ooh.

She is also a program going forward.

This combination will further improve the overall quality of our entire education system.

Especially for China's central and Western region.

Where there are strong demand for high quality High school and golf ball Recruiter school programs.

This system will allow us to further empower our existing business and operating private High School School program, four golf repeater management services and for all public school needs.

Well not really.

You buy hold them for Goldcorp, who.

Did that cause some of them.

You'll see all the heat.

Right.

<unk>.

Genie energy solution.

Uh huh.

Uh huh.

Yeah Leo Latanya.

Right.

Is that right.

Surely it turns on.

One woman she.

As usual along quite.

Hum, but through document.

Yes.

Woman.

Do you buy and hold them for yourself.

Uh huh.

Yeah.

Easily.

We're highly confident in the market opportunities for China's private high school on golf car Repute, Our school program.

[laughter] therefore in mid September we announced a strategic partnership was to try to pull hard capital.

Aiming to jointly set up an education gross fund dedicated to supporting the rapid expansion of our school network.

We believe the above milestone will further strengthen our leading position and competitiveness in China's private high school, and Gulfport repeater or school program sectors.

Okay.

[noise] sequences of Eli Lilly.

Young B G.

Hello.

The father Cookie.

Joe you talked your accident.

He couldn't daughter, she doesn't like yoga.

Yeah.

You would do that.

Joe you fool.

Hmm.

So there's still time every line of Halloween.

<unk>.

Well, it's kind of a finger.

Either properly.

But Joe you Dita.

I was wondering.

We do not see Susan that Shannon.

Nonetheless, although.

Al.

The Italian cluster they need.

Looking ahead the company will continue investing in technology and education quality to provide premium and authentic educational services to satisfy each student.

And the parents we serve.

We believe that the education market in China will continue to see steady growth and the current education companies will play a very important role in the education sector.

We're confident that our company would reach potential beyond our responsibility and mission.

So I don't see a woman.

Devil fully don't can you would have normally thought.

Hi.

Excuse me.

Now, let me turn the call over to our CFO, Benjamin who will provide details on our business and financial performance. Thank you.

Thank you John and thank.

Thank you everyone for joining our call today before I go through our financial highlights for the first of a ha-ha tons. They tend to be what I would do I would like to announce a new.

New member to our executive team told me Joel.

This guy will assume the position of our co CFO. He will I hope myself you cut the AR.

Market is massive.

This arrangement.

Illegal myself I'll focus on the growth strategy.

Hi, It is an honor to join our first high School education.

I am a lot of friends, a longtime friend of the company and the management team.

That's all I fully participated in its entire IPO underwriting process.

Prior to joining Fred's High school I worked as a investment banker at several security investment director at China innovative capital.

The matters.

Also various accounting duties and northwestern mutual.

State in Canada.

I received my Bachelors degree from University of British Columbia, and an MBA from George Washington University.

As a team I look forward to working closely with Mr. Joel.

And to further streamline for its high schools operation and drive our topline growth.

Lastly, we understand the importance of creating shareholder value.

And I am sure everyone in our firms will be fully devoted to be doing just that.

Now please allow myself to go through our financial highlights for these for half a year.

Before I go into a digitally please note that all numbers presented.

All lines have stayed out of mines.

They tend to Oh.

Well yeah. This is <unk>.

Unless otherwise specified.

They go to a limited either kincaid because they all are.

Hernias price with your greater use of available on our IR website.

I saw a total revenue our total revenue.

232 million RMB increased by.

<unk>, 5%, while the loss of food care, yet revenue was 186 million.

Yeah.

From a revenue problem Thomas well.

Well over 220, Oh meeting.

The bi certainly Paul.

Well the law system periods revenue was <unk> hundred 68 million.

Revenue from the government cooperative.

Womens eight.

On B B.

Great.

In month, five well lots of things period, where the eighth humanely Army.

They loved the decrease was primarily caused by the delayed payment from Covid.

The relevant cooperates you are reading it.

We said it three years.

We noted that some local governments are facing serious finance income at Cortez and adopt the lottery delayed payments to us.

Although our conservative progress they didn't know right, but because it is these are delays of payments.

All of our revenue accrual basis, <unk> legal counsel them on a cash basis.

Unfortunately, a September 26th wave, we sued such a daily the payment of a non Navy army.

Our total revenue increase was the primary driver by one Greenberg.

So students enrollment you went to the opening of new schools on the equally students.

Yeah, I'll walk in existing schools.

To increase.

Okay.

In most of our existing schools.

Higher boarding fees due to the increase the number of our students.

It's full.

All right.

Our cost of revenue well how are you doing this kind of humidity in RMB increased by 41%.

Sure Yeah. This.

This increase was primarily due to the Overstocking our open the school network on the idled.

And I agree with you that prime is under facilities.

I don't think any of this year, where you pick up the a grade school network.

Passion plot all the time the local education authorities.

And finally on the Pompe canine edification regulation environment on the Oh.

Oh, sorry, it's slowed down at all crews all were a high school.

Goldcorp children in school opening about.

Our pillar two new school openings caused the Oh, well, let's stop on the idle.

Our private facilities.

I smoke lost profit.

Our gross profit was 62 million RMB it creeps up by 4% from lots of student period.

Fire many RV.

Oh gosh, Mark on gross margin.

For these for these are first the hopper yeah. It was probably so but then compounded with a.

So do you have a percent in the lots of superior.

The decreased gross margin rate was up primarily due to the higher cost of our revenue are resolved either from what you increased the top coat.

That has about two in Queensland School operating expenses.

Especially for the newer schools with a relatively lower cost efficiency that all right.

This is cool.

Yeah.

Our general and administrative.

The minutes Trop two expressing general.

General and.

And then maybe a structural expenses were.

Fixed they made in R&D are you.

Creeps up by Hungered, along a percent from from the Doctor.

Periodically.

The anomaly R&D.

Oh, so you could if it wasn't mentally in croda by one.

We call it the one off expenses of.

25 million.

RMB lethal amount Oh included IPO related expenses of a permeate in RMB.

Really the final value of especially of off.

50 million arm.

I look to additional expenses of 6 million RMB be arriving from the acquired entities.

Nature not a hyphen.

Lots of the same carrier.

Yeah.

As far the signing on the life Sciences I was standing on the marketing expenses were 3 million RMB increased by 19% from the loss of things here you added one maybe on this inquiries it was primarily due to the marketing activities.

In relation to the Guangzhou School opening line made either the beginning half of this year.

I've, followed the government took longer I'll call them in the ground as well.

R&D increased by 100.

96% from the lost its been curious to maybe aren't in this increase was due to one the alere distribution process made it by some Collins this year.

Such garlic, along in previous years, whereas usually distributed in the second half of our year.

To the inquiry and government subsidy in line with the increase all students.

Under our new school opinion.

As for interest expense, our interest expense was <unk> 9 million an increase of about 800, a profound from from the last system periodically 1 billion RMB.

So huge increase was incurred by the body I need a financing I'll read them and I'll be the original rule, our Montney hundred amazing RMB, which was a use of the all the purchase by alcohol EQT IP being treated now.

As to our public listing under the related interest expense amounted to 6 million.

The.

Not a either a full hour them that long.

Net loss was Oh, maybe RMB compared to 19 Karma.

So the two ladies.

That same period.

First of all where the mainly incurred by well expand our mounting pending final meeting under other expenses amounting to a labor maybe.

Bruce.

At least not hyphen to you the last.

Laughter Sydney period.

Also on September <unk>.

Tom do you think.

We see it.

Yeah about really the payment from government amounting to 90.

It is really either by data.

And the nor do we see with it.

Hey, Mike.

The COVID-19.

Comparable net income, although the first half of year will be 19 com.

Paul do you want me to RMB.

Are you crazy.

Hi.

8% comparing with the last testing period.

Do about my position to you. Thank you your time.

That concludes our prepared remarks.

Let's now open the call for questions.

Operator, Please go ahead.

Thank you and if you would like to ask a question. Please press star one on your telephone keypad. Please ensure the mute function on your phone is switched off to allow your signal to reach our equipment again. Please press star one to ask a question. Please state your name and your <unk>.

The name before posing your question.

Yeah.

Yes.

We will take our first question from London. Please go ahead. Your line is open.

Yeah.

Hello, Hi, Yeah. Good evening management. Thank you for taking my question. So my first question is about.

Implications of the recent regulations on the company, how would that impact the company's business strategy and the growth outlook, especially on the territory of school Park and.

And.

Second half of 'twenty, one and beyond so it seems like the regulations that are the the high school education or after school education should also follow similar guidelines.

Just wondering how that impacts us retiree cool and things like that you're a capacity expansion for the to the school openings for the after school for the High School territories school seems slower than I expected.

First half just wondering what's your if theres any strategy change or any change in the capacity expansion plan.

For the second half.

That's my first question.

Yeah.

Yeah.

Okay. The chairman will answer the question and I'll help translate.

Yeah.

[noise] Giga Luciano.

Okay, well I can kind of see Falkland mutual Fox Pitt.

Colton.

Hum.

Yeah.

The C band.

So.

The old carpool sheet yourself, a couple pushes email gogo.

Copa Holdings', you're young Chan of Honeywell.

It all shows this evening.

Uh huh.

I mean, it's a good I E would you already give that.

You Bashed your reader.

Yeah.

And he told me I know you all kinds of about 500.

But he and she couldn't be all comes about by them.

Well, I'm, not saying that kind of all those initiatives.

It's a good lesson.

Amy.

And what's your thought on that.

Right.

I'll get back in the Sanish.

Seasonal.

Right.

Uh huh.

Yeah.

And so now how do you.

I think that back.

We got back from China.

Thank you.

Sure.

Please send them in cat because humana.

A woman Saturday.

And that's what I'm, saying when people teach you.

Helix hotel.

Yeah.

So the current regulation does not in pads.

Senior High school.

It also does not have material impact on so called a recruiter of schools.

For some provinces the proportion of private degree has been clarified the.

The proportion of provincial level.

Private schools is controlled at 5% and district and County says controlled at 15%.

Therefore in some provinces such as Hunan for example.

Current privatization is about 30% which is affected.

But in many provinces, it's lower than 10% of some 9% some 15%.

And these <unk>.

Provinces are not impacted by the current regulation. Thank you.

And could they each of them.

I was supposed to be I think you.

You guys were seeing.

Well that sounds neat.

Thank you she clicking on the question.

How do you think a T G I.

You know what I'm doing.

Sure.

It's always good to hear you know.

Jesus.

Okay.

So due to the regulation.

We spoke which is C promoting private agitation of PRC and also the two minus regulation.

The approval process for schools authorization, a license it's a lot slower.

But Moreover.

Moreover, the approval for canine education is virtually stopped.

Yeah.

That's the answer for this question. Thank you.

Oh.

Thank you. So I just had a follow up on that so that doesn't mean like it seems the company thinks there's no mature impact on your business doesn't mean your revenue guidance for the full year 'twenty, one of 73% to 84% you'll get a quote remains unchanged.

So what about your.

Sure. So your capacity expansion plan.

I'm like you opened about 18 new schools.

The first half.

Yeah.

So just wondering what's your expansion plan for the second half of the year.

Especially.

[noise] High school to attract a tutoring school tutorials school, what's the plan how many skus do you plan to open in the second half.

Okay.

Thank you that's nice and warm.

Okay.

Hum.

From our measurement our viewpoint, we think.

Oh.

For this year at the hour.

Usually open to schools and a number.

The inquiries comparator with our.

Original offline.

So a we think a florida.

So this whole year, we think of the total revenue will be.

Literally.

Great.

But we are we also we also actively seek a secreted.

Because the potential a quick acquisition targets, so hopefully we've been called by.

At this time.

It's just they tend to have a U S.

We succeed.

The in the acquisition target we've been called.

All we can keep the strong revenue growth.

Yes.

This is my.

Okay.

Yeah.

Yeah.

Thank you.

So my second question is about your no revenue growth of 24, 8% in the first half are what percentage above that well it comes from a student enrolment and what percent of it comes from the tuition increase.

That part of that's coming from maturation claim what is your average tuition per student.

In the second half in the first half are comparable with the.

First half 2020.

Yeah.

Uh huh.

Even though our total revenue increase.

Mainly are derived from our students number on that and the tuition fee.

Increase on boarding fees.

<unk>.

I've put all four of our current Ctrip a statewide case, Oh I don't know all of our our student enrollment increased by the city a city, so did to buy or city too.

Our percentage.

I followed the Jewish you see beach, whether this cost for the last a year financial our financial our financial our financial reports.

All the above.

We think Oh, this new school year, our tuition and fees they were H E.

Tuition fee a degree increased rich I, just steal steal a cheap feed can cause that.

Certainly with the.

The large increase in student enrollments.

Our boarding fee or keep it the same percentage of our employees.

This is my question and my answer.

Yeah.

Okay. Thank you.

Right.

So when you talk about the.

Yeah.

And then the age who make up your revenue growth in the second half does it include the revenue contribution from the acquisition the new acquisition.

Thank you recently made like the acquisition I'm thinking tomorrow fueled Tripos education.

Technology or do you plan to acquire more companies.

Okay.

Our eyes are these close.

Earn as our earnings press release is actually in.

In this first half the year, we completed the three Ah three companies acquisition.

Uh huh.

Besides this we are we actually seeking a figure out there are potential acquisition targets, so hopefully uh huh.

Ian This is the second half of the year, all we Oh, we can complete.

The other auto Dodge acquisition.

Uh huh.

High School High School, a high school High School networks.

That's for the it's the purpose and they've made a September all we are we try to hop. The partnership all of these are with one our equity capital to raise either accretion goes along to fewer of them.

Our application acquisition, yes.

Yeah.

Okay.

So for your acquisitions.

What kind of a company do to look for and how are those your acquisition your Yo Yo companies, well supplement or complement your company's existing.

Yeah.

Oh.

So we'll take a.

Looking at each well sure.

Okay.

Uh huh.

Yeah.

Because this is a big cause me that well.

Well I'm looking couldn't.

You couldn't do it there's a couple of months ago.

Angle.

She said that.

We sure.

Hugo could hinder.

I'll go through.

Personally I think.

Thank God, but you Didnt kudos on claims.

I do too.

This is true.

Thank you Sundar.

I hereby uses Joey.

Uh huh.

Okay.

Yeah, I'm not sure if you did that.

Two of them.

So turning the oxidation process, we really look for the technology factor.

For example for the Beijing future plus the.

Company.

Can provide service to our entire network that.

That is teaching and classroom service.

I'm just kind of.

All lines service can help.

Increase the quality of our teaching and also reduce.

The teacher shortage or.

Similar issues and.

Schools across the board and also help to reduce cost.

This is vishal should ease of use to me.

Yeah.

Okay.

Yeah, and I guess I missed that.

Yeah.

Yeah, Dennis workouts in the M C.

60 teammates yourself.

You.

Could be that email biopsy tend to them.

So how do you think.

Lucky enough to tell you.

Peter.

Okay.

Yes, okay.

Okay.

I think Oh cookie.

Liam I.

You can think of it that you don't even go there.

Yeah.

So from the schools actual.

Put you usage level.

Technology is able to provide better resources and also save human capital.

On the national level.

Uh huh.

Currently the regulators gave a lot of promotion to using technology tweaking has physical schools.

Provided actually a few example in how technology is being used and developed an actual schools.

So we we also believe in the same fashion, where technology is able to provide actual use biofuels.

Hi, again I guess.

Uh huh.

Right.

Because all of them.

That's it.

Got it.

Uh huh.

Hello, Thank you Helane.

The previous year.

Uh huh.

Uh huh.

Well that's.

That's a good thing.

That's right argument using a game of things.

Huge.

Got it.

Thank goodness.

You shouldn't do that.

Yeah.

So another example is our street teacher classroom.

Process.

Which helped us a lot in the human resource sector, we were able to.

Recruit and allow teachers excellent teachers from Beijing.

And overcast durability across all provinces and all of our schools.

Thank you.

Thank you answered the question.

Thank you that's very helpful. That's all my questions for now I will get back in queue.

As a reminder to ask a question. Please press star one on your telephone keypad.

Again, it is star one to ask a question.

We will take the next question from <unk> Securities. Please go ahead.

Oh Wow.

Oh, gosh, I hate how should I kind of got a.

Oh, you're talking about.

Could you turn it off cause yet.

Okay. Okay. Okay.

I don't know what do they all fit together.

Got you got below.

Uh huh.

Okay that does it.

Okay.

Well I'm not sure they sponsor that.

Great upon them.

Okay.

Women Chicken Oh, what Michele can you do it because.

So, but it's I'm sure Barcelona.

So cheap.

Sure, let leave and indeed, John the Eagle Ford, which you know you go people.

That should tell you that you could see she I don't we're not going to answer that.

She's going to talk about you need a G I.

For them to then as society.

Do you go to Washington D C. The passion that you got from <unk>.

Tom and that's who we are closer you usually don't tongue Josh them all.

Do go Rts in a time window.

Got you got you I'll try you train your spa.

Your guess is as follows.

Just some easy to juggle a young chic once you begin to go down, but I don't see that.

No that's only a good teaching the geometry and the ship.

So again as you go through one is the go to where the city go to Gogo go home office uses 100, I should call them how to finance your labeling onto that compliment you quit a not so easy.

Enough answer that I shouldn't be college at one <unk>.

Yeah, she busy on the job, which engine humming to get them all.

Do you know what your mission here that Oh, Sheldon I assume that your you said, how many calls it can be.

Number one woman dying because you're telling me you call women die Cialente shoot all in the Juno patching into alcohol. Thank you vishal.

Oh Gee, that's easy enough.

Woman the Gol sure you're going to be a function of you should know woman she kyushu.

The well machine kind of show the shop to be issue. One quick call you are quite sure gosh in the Golden shoe shop, how COVID-19 will kind of with Argos I also note that our literature.

But I suppose one bottle.

Paul forgive her what she doesn't want me at that it's easy to change out each year.

I'll do them and Thats, what youre shifting shooting a whole family of women that you don't junk, let's see I'm doing a sheet and Michelle NGO.

Single building onto all you should.

City Goldman.

No matter what time, you don't want to put them in a tissue tissues T. G. L. A just is it something that you guys trying to finish it off now quite upon nutrition G. But you didn't go your way.

Cleveland zinc, you'll need a contact with all of them noted on sugar Cookie until you could either come through.

Vocal women.

Just anecdotally John Clemens shoot a sheer shoulder Jerome.

She got.

I want you to go via quality Johnny's equals minimal with me as Shimon.

Tricia.

Sure.

She's held the equivalent is usually the Ah ha.

I'll handle the Chancellor number it's in the young so when you go to China that you all do I'll give him the biggest shelf should he keep on pushing Oh Gee.

Ooh Boy, Paul Gay women, just shitty Shaw, she could either put them in old Michelle budgeted on that Tim had taught Angela channel both of them at all and does it I'm.

Sure.

She'd Honda designed homes, you're shocked to tissue konishi shop are lagging fungi and not downloaded genre, you'll put out with no Canadian shield why does it seem that you'd be keeping that yeah. It's just that a woman digital I'm a woman that you used.

Shall I put it out for me and I'll get on the table.

In the bulk water.

Commons I should have you seen a yale and daughter, who don't pull the trigger in the SCHUNK.

And so you know how many.

And when you put out for me a bit on the T V.

Tonight I just want to capture all can head into its almost a gigolo blah blah blah, but once you hit the dollar woman.

Oh, well then you can essentially ego, yeah contest what country it could be all.

Are you guys shooting.

Dr. Chan bothering the judiciary shop, that's usually a particular hotel you would Dodge home Shield Jacob J D.

I think if you go shopping sell them out.

I just don't want the one off on the tuition.

What did you write off.

Idaho.

Oh, no COVID-19, but they all of them.

So I think that's accurate.

Sometimes they ignored.

So, let's just go with your heart comparable restaurant base.

I think abortion cause wasn't bad.

Oh Italian sovereign.

I find that quite well.

Sure.

Okay.

Sure.

Sure.

Okay.

Ah Ah patient.

Yeah.

Okay.

There are two big Oh, I can't go to a group what kind of like when the movie channels. The shoot has enjoyed also needs some.

Some people teach.

Well I'm in a year when the hazards throughout two Josiah Golden.

And I think a woman.

You bet.

Golden crucial whether Uh huh.

Well good luck to you back you could beat you to have a pony. If you show the program reached me, Oh, Oh, Yeah, well machine being United as a company you realize that in the sense that it could have on wassa the chita.

Does it go.

She held a program in Cana.

Okay. Good.

Do you think that unless you either can be Joe.

Do you go to places like Kenya, one what kind of impact how you're thinking about it. This way. So you know one of them.

Yeah.

So one of the two.

He came to me.

That's what I called him Joe yourself.

I'm glad you're both possible delay the cushion in that system.

What is it you basically kill again that a woman.

Can you think that changes yourself.

Okay.

Okay, I think that's a favorite with partial color they've got patient bucket.

China is a woman a male athlete.

I feel like I said, I think I heard.

It wasn't that she has shown me after that the woman. She said she isn't a food Oh my gosh.

Yeah.

I guess here.

I mean, you see D N a.

One is that you need to say it.

Tell me right.

E D.

I mean do you feel at home.

Oh, Yeah, yeah yeah.

Hum.

Okay, I think that that's right.

What.

Yeah.

Well then the two sure.

Well, let me just I wouldn't tie it down to the.

Joe will shortly there.

Payload anyhow.

This is a normally you've got the headwind that you saw on illegal cooking somebody Linda.

Coach will add to the.

To hear women that are leading them to enjoy an oncology at all whether that is all I should say or non Doe D. G.

If you go back to essentially the PD there.

Hi, Patrick.

Oh.

Okay. Okay.

It's not like you're just you're going to get as you felt you had like a callaway golf, where you thought things should go on.

Uh huh.

I mean.

Can you either to the schools are so sure they've got plenty of land woman without a share like how would they need to look at each one of them is limited.

Chico closer to take a quick shot in a credit that goes to the charge.

Sure.

Caturday b, they thought out and I think yeah, so gene as.

Sure sure Tom goes through the choices in a bubble.

But most of the quality I'm not sure.

John the call is acute hospital kind of way.

The local customers, who shop, Oh, Gee juncture quite a shuttle apolitical.

Especially that's even though your shots at Lewis.

Lewis who constantly go users.

They're going through the peak are multiples of the junk Honda Janine alcohol and then they just shortly ago Joanna.

Do you foresee that sits in the half life with Nike that utility.

Diodes, who trusted in the job doing or not.

This is Julia she hallmark for the local China.

So I'm trying to say it is really tough.

To the right.

Just your thoughts on what it says in the foundry and jewelry.

You should shoot off the tall issue for my time.

Colorado, Utah, Shithouse shop, like two circles to the deal.

Uh huh.

Yeah.

Yeah.

Yeah.

Yeah.

Okay.

As a reminder to ask a question. Please press star one.

We will now take the next question from <unk> Securities. Please go ahead.

Well everybody's all columns noma.

Great.

Hey, how to walk through hockey.

Okay Lindsay.

How do you go through a short 10 months out to pasture that April unfortunate hold that Matt that Dawson geophysical anomalies.

Sure Highway type of Howard Weil.

So truthfully.

Part of the beauty about actually shrunk.

Publicly holes you got extra that Georgia.

Alrighty.

Sure.

E debenture that whole rule that attitude that's in your specialty.

[noise] can do them and they go good shield Uh huh. So you give them the sun yeah, not taken a pleasure that you even want to see you go to.

Changes, how how're you doing.

How are you going to go so I'm out of time.

I will not rule.

You go what are the functions you got me there was no Sheila tofu.

Like equal you've got buys your topic of already the unusual its own for particular institutional Union shall issue about where you are if you're doing the mood that at all.

You'll kind of juncture that not that they don't want a bunch of China are women.

The digital.

Our ball cool weather.

We show the change you would have told you a few pulpwood ago, including the poll.

Bulk when I used to get a T shirt each other issue issue.

Yeah, and then Mike.

<unk> told them that you guys said that you cannot even be United.

Pete.

Ebola issue can you go through the junior and that you go to the.

So you know they don't Wanna eventually die.

India and talking about audio gradual creep I did a zero to one with or without <unk>.

Tom would you like Honda Honda out woman died.

Sure no thoughts on why the photon issue shall nudge issue.

Well the intuition Shaw.

These are truly what does all of this is tied you shopped at Samsung.

Julie.

We didn't talk to either China or tooling is hardly the town function I do again, unless you want me off with <unk> are you on here do you go Fuji vocal on it.

We're going to kind of meet your childhood those aren't huge food issue year to go to your balance sheet.

Not a digital buy.

Sure Judah when she was not my by that when you go to each other to the surgeon.

Total not you guys have done a tissue to treat you to do before you mentioned that.

Sun came out it can be.

Hi, Jonathan.

Now market research you don't Wanna, you guys should <unk> Joshi show the do a G by user you'd even though I know you mentioned that and the onion Badger Creek, which one.

Alright got hold you over what maybe what else would have to run down the Yale sounds how shall I answer it.

Sure Yeah, so sort of what mental I'll take hold based on what you like how much you can grow.

Hmm.

So even though.

Just a woman Sandrine unethical law suit.

Uh huh.

He says the woman shooter.

Yes.

A woman Sandra Xiaodong hungry.

I owe Wilmington go through the country.

Hmm.

Okay.

Send them.

And Joe you go.

I want to keep it.

Yeah, I don't know if there's a woman.

So you got a shedding goldblum that young people.

Jonathan I'm not sure Angela Gordon.

Actual Michigan.

Thank you Angela.

If you don't keep kind of sweep so he.

Uh huh.

He signed off on me and I guess it two.

But you don't want a bunch here a bulk of them.

Uh huh.

Okay.

This ratio you tell them okay.

Toby if you have any kind of centers.

He was here.

So we feel good about where you're young woman, that's who we see.

While this is tiny.

What was included this yourself the fascia downtown a b to C.

Sure well, if you don't mind.

Yeah.

Well I can't think of a downtown that's when you know when you know how the horizon.

I thought it's usually not sure because I can see let's see.

So he's a woman she has had I E.

She has held a piano.

Even with this evening she isn't true.

Each one of them.

Two five.

So it isn't a local.

Okay.

And then I guess, you can't even get built.

Two the jargon, we enjoy Yoshi Oh.

'twenty should end up here.

Hey girl.

Joseph Abboud, whom I'm over the local.

Okay.

Yeah, I need as soon as the jogger vishal.

Jonathan Joshua.

Women Sanjay.

John Hele, it's a golden isn't a.

Yes.

All lines in Brazil.

On the gold with them.

So you know two of them and financial wellness.

So what should the teeth on assuming that huh.

Mckenna.

People don't switch.

Yeah.

Okay.

Yeah.

[laughter] holds.

Now holds in that regard.

There are many banking childhood hunger.

I'll talk to you again.

Yeah.

You're bound where am I going to use what's actually keep the.

Do you have any different.

Do you plan on why can't the joint book, we did issue.

Sand Canyon.

Depending upon how woman.

Amy I suppose is that new land enjoy them.

Definitely.

Thank you I'm doing a bunch of yeah, so new right now.

Sure you could use which is off the table in there.

That was understood.

He was a constellation of Sunshine.

Yeah, Yeah, Andreas justify the Gulf Cook alcohol food, Santa Ana Uganda, how what was the senior.

She is another matter.

Yeah.

Now how old you are and you are going to have further tangible showdown, which all should have.

She can torture whoremonger schindler outdoor shop take home.

So bear with me for that.

Yeah.

Ah shall donuts will win and that uses you plant you can shut down totally legal.

She xilai Paul a little weak so he has a posse homeschool supercharge that.

Yeah.

Okay. That's helpful.

Okay.

And how long it implausible unionist again.

Jason.

Yeah.

Take the celadon location that.

It just shows how fishing panamiga antiquated oil that is essentially what you mean.

Hain has.

I mean, she's asking him if he shows up at your bandwidth.

How soon you know Fannie.

Chip I'll Wilmington go fishing to show when you said he was in the region.

Yeah.

Joseph We just let me I mean, you got to my mom would tend to suggest and I spoke a woman cant that'd be true.

Jealous of the series E.

So again, if he wants.

I'm, just saying you could tell us.

Once again she talked about.

With that she healy.

Yeah.

Tuition to gestures.

Well, Chad I saw a woman.

But because they're so cheap.

Yes.

I'm doing that you wouldn't have a suggestion.

Yes.

Yeah.

Yeah.

E D.

Oh sure Joe sure.

Tom do you talk to you.

We'll power through the luxury count.

Ashley.

Oh, well menthol like you finish yeah, Yeah, I'm, just not just eat the sole came out.

Just hold on yeah, I understand and I do so hum.

Do you tend to eat all keep 20 patients as you can see.

So not sure I'm older women and their bankruptcy.

Uh huh.

So whatever happens I named Joshua seem to do that kind of be out after that.

Yeah.

I mean, if you wanted to catch on.

Austin.

Gotcha.

That's right.

Oh gosh.

How many times you shouldn't just wondering if juncture does he will.

Some of these Ah shall hold hold on to be rational.

Okay.

Yeah.

[noise] maybe came to you.

John talked about.

Sure Sheila.

Oh My God you guys are back in their tissue by tissue sponsored who couldn't even go to she was young shuang.

Oh man.

Sure.

Sure, Josh, Oregon them all anyway.

Okay.

Sandra Bullock.

Yeah.

Uh huh.

This should allow us to the low.

Those are the goals as a social tool that PD.

Hmm.

The rule of Transco.

Yeah.

Uh huh, so little hard she desires.

TV at a junior to somebody in a COVID-19 some legislation.

Year over year issue.

Yeah. That's you know how they see somebody with a lighter shaded knowledge to the table.

And I think it'll pay rate.

But you can see all the way all of US we took a whole starfish.

Now a little about you being sort of teach went wrong in your credit card.

Union Shinya someone yet in our Hearts, you know somebody who should be on <unk>.

If somebody wanted to well what do you do you should but I'm, just saying that at this time.

This is Bob.

No not in job creation and closing on July one the new.

Due to the loss share that you guys are supposed to do that.

The newest shirts horizontal.

Ah I haven't she should allow the.

Sure sure.

No matter, where she shops.

Sure Don you back with us.

Uh huh.

So you're going to see E B C.

And on the warm up with what I E.

Honestly the EBIT, so San Diego.

Yeah.

Oh Hello.

Yeah.

Okay.

Okay.

There are no further questions in the queue I will now hand, the call back to Susie.

Well, thank you operator I guess.

And thank you everyone else for participating the call and for your support.

We appreciate your interest and look forward to reporting to you again.

Next quarter on our progress thank you operator.

Thank you that will conclude today's conference call. Thank you for your participation ladies and gentlemen, you may now disconnect.

Okay.

[music].

Okay.

Yes.

Okay.

Okay.

[music].

Okay.

[music].

Yes.

[music].

Okay.

[music].