Q3 2021 Ruth's Hospitality Group Inc Earnings Call
Good morning, ladies and gentlemen, and welcome to today's Ruth's Hospitality Group third quarter 2021 earnings Conference call. At this time, all participants tornadoes come only mode. Following the company's formal remarks, we will conduct a question and answer session and instructions will be provided at that time. So it gets you up for the questions as a reminder.
Today's conference call is being recorded.
Now I'd like to turn the conference over to Kristy Chipman Chief Financial Officer. Please go ahead. Thank.
Thank you Latoya and good morning, everyone. Joining me on the call today is Cheryl Henry our President Chief Executive Officer, and chairperson of the board.
Before we begin I'd like to remind you that part of our discussion today will include forward looking statements. These statements are not guarantees of our future performance and therefore undue reliance should not be placed upon them.
I encourage you to refer to the Investor Relations section of our website at <unk> Dot com as long as the SEC's website at SEC Gov for copies of today's earnings press release, and our recent filings with the SEC for a more detailed discussion of the risks that could impact our future operating and financial results.
This call we will refer to adjusted earnings per share. This non-GAAP measurement was calculated by excluding certain items. We believe that this measure represents a useful internal measure of performance you can find a reconciliation of adjusted earnings per share in our press release for today's call I would now like to turn the call over to Archie.
Executive Officer, Cheryl Henry Thank you Christy and good morning, everyone.
Our third quarter results demonstrated our team's continued operational excellence and a challenging and dynamic environment. Our performance also reminded us of how sought after the Ruth's Chris brand experience is and how our guests trust our commitment to safety quality and genuine hospitality that our team members.
And franchise partners have delivered more than 56 years.
During the quarter, we generated solid revenue growth, including a comparable sales increase of approximately 8% relative to 2019.
The improvement over 2019 was especially notable given a negative 700 basis point impact from our Boston, Hawaii and Manhattan market.
As we have discussed have not fully recovered from the effects of the pandemic. Excluding these market comps were up about 15% over 2019.
In terms of margins, we were also able to deliver improvement over 2019, driven not only by strong sales, but also by our operations team and the inefficiency initiatives they've worked on for the last 18 months.
As far as the fourth quarter to date I am pleased to say our comparable sales remain approximately 11% above 2019, excluding the six restaurants in the three markets I just discussed.
Embedded in that comp number is softer performance in private dining which is not returned as quickly as our main dining room.
Having said that we have recently seen an uptick in inquiries for holiday season event and are working to convert those two book to Bill.
We also expect to see some rebound in Hawaii in the fourth quarter and more so early next year as the state welcomes tourists again beginning in November.
As far as the state of the business generally despite near term external pressures and uncertainties. We are committed to investing in the long term health of the business.
An important part of that is ensuring that when our guests return to our restaurants. They are welcomed with world class hospitality and safety.
This requires not only hiring exceptional team members, but investing the time and resources to train them.
Beyond investments in hiring and training a second bucket of investment is growing our restaurant base.
In late September we successfully opened in short Hills, New Jersey, We're pleased that sales performance to date has been better than our system average demonstrating the enthusiasm guests have for Ruth's, Chris when we enter new markets.
Build on this momentum we will open an additional company owned restaurants and late growth New York before the end of the year and are on track to open five new restaurants in 2022, including one management agreement.
We also have a solid pipeline for 2023 and currently anticipate finding additional leases by the end of this year.
The third bucket of investment is enhancing our ability to use advancements in data and digital technologies.
As you've heard me say before this effort is focused on three areas for us enhancing the guest experience, reducing friction in the restaurants and driving operational efficiencies.
To realize the full scale benefits of this initiative, we have been working to replace old and introduce new technologies into our restaurants.
For example in the third quarter, we made progress implementing our Pos and labor management systems with a full rollout expected in the first quarter of 2022.
In addition to the foundational technology, we've been mining our data and testing several ways to automate restaurant insight to deliver on these priorities.
For example, we are testing a proprietary approach to use guest data to enhance the guest experience.
Ted is to better understand why our guests visit routes and make sure. Each day that is further personalized by our staff.
Another example that targets both the topline and Bottomline is the pilot links to maximizing our capacity in the restaurant, while managing labor hours.
Early results are positive and we expect a system wide rollout to begin by the end of November.
These technology initiatives may take time to rollout in refined we're confident that when we reach full scale. They will help us drive sales and operating efficiency through a more protective menu better labor management and demand forecasting.
Now it's important to note that all of these investments are possible because of our financial position, which has allowed us to make investments in organic growth, while returning capital to shareholders.
During the third quarter, we repurchased one.
192000 shares of our common stock and we're thrilled to be able to resume buybacks as part of our total return strategy.
We also entered into a new credit agreement, which not only increase the size of our facility, but also provided us with more favorable terms, including additional flexibility with regard to capital expenditures share repurchases and potential dividend.
In closing we are encouraged by our continued sales momentum and strategic progress I reiterate at the core of this success is our team members and franchise partners, who have remained resilient and committed to excellence.
We have provided an amazing and consistent guest experience, which is the core of what Ruth Chris must do every day I will now turn the call back to Christine shipments to cover the specifics of the quarter.
Thank you Cheryl for the third quarter ended September 26, 2021, we reported GAAP net income of $6 9 million or <unk> 20 per diluted share compared to a net loss of $5 3 million or 15 fat loss per diluted common share during the third quarter of 2020.
Excluding adjustments non-GAAP diluted earnings per common share with 20 cents compared to a loss per common share of <unk>.
In the third quarter of 2020, please refer to our earnings release and related disclosures for a reconciliation of the GAAP to non-GAAP net income.
Total revenues for the quarter were $104 2 million compared to $63 4 million in 2020.
Company owned restaurant sales were $97 5 million compared to $58.
$6 million in the prior year.
Parable restaurants sales for the quarter versus 2020 increased 66, 8% and compared to 2019, they increased seven 6%.
Comp sales were positive 16, 3% in July one 9% in August and three 3% in September comp sales dropped to positive single digits in the last two months of the quarter as the Delta variant moves through our largest market.
We are pleased that despite the variant guests safe dining in our restaurants, and we average weekly sales of nearly 103000 versus 93000 in 2019.
Franchise income for the quarter was $4 7 million up 35, 1% versus the same quarter last year, while other operating income was $1 9 million.
Overall restaurant margins during the quarter.
2021 were better by 80 basis points compared to third quarter 2019, despite rising inflation, particularly in food.
Food and beverage cost for the quarter were 34, 2%.
Beef prices during the quarter increased approximately 65% compared to last year and were up 47% compared to 2019.
Market basket experienced inflation of approximately 29% compared to Q3 2019 with most of this increase being in proteins, particularly beef crab and lobster well.
This inflation is historically high we remain committed to serving our guests fresh prime H b.
The volatility within the supply chain and our inability to precisely predict cost of goods sold we will not be providing further guidance for the fourth quarter or next year at this time.
I'd now like to take a minute to address how we are thinking strategically about pricing as we move forward to offset the inflation we're experiencing.
We have historically taken price in the 1% to 3% range and this year's pricing to date has been over 4% from the price taken in May and the one we recently did in September well.
Well, we are carrying more price this year. It remains below the inflation levels, we are experiencing in the restaurant.
With beef prices remaining at high levels, we reviewed pricing again recently and we will be taking another price increase of one 3% in mid November.
As I mentioned in our last call, we are thoughtful and surgical with these price increases to ensure we balance profitability with the value we've been known for in the fine dining category and we will continue to approach pricing with the flattened.
Our efficiency initiatives continued to benefit us during the quarter with labor as a percentage of sales improving 414 basis points compared to the pre COVID-19 third quarter of 2019, we.
We began adding an additional manager back into our higher volume restaurants, this quarter and expect to continue to add back on average one manager to most of our restaurants in 2022.
Given our year to date results, we expect that we will end the year with our labor as a percentage of sales approximately 300 basis points better compared with full year 2019.
G&A increased 100000 compared to the third quarter of 2020 to $7 7 million. This increase was primarily due to an increase in performance based comp related expenses.
Full year G&A is expected to be between $32 million and $33 million.
At the end of the quarter, we had $83 8 million in cash and our outstanding debt remained at $70 million, our cash balance as of October 27th was $84 6 million with that let me turn the call back to Cheryl.
Thank you Christie in closing, we feel very good about our sales momentum we've taken price to the degree that we can but make no mistake, we will not jeopardize our long term brand position for short term quarterly game preserving our brand positioning is critical for long term success. We also feel very good about our pipeline of new restaurants and.
The strategic progress, we're making in the areas of technology and training.
You simply can't deliver solid long term financial performance without unit growth greater efficiency and attention to detail within our four walls.
I'll translate into confidence that we can continue to create value for our share holders as the virus abates in the economy recovers and obviously longer term, we look forward to the remainder of 2021 and continuing to execute against our plans in 2022.
That I will turn the call over to questions.
Thank you.
At this time, we will conduct a question and answer session. If you would like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your minds in our question queue.
Press Star two if he would like to remove your question from the queue for participants using speaker equipment. It may be necessary to pick up your handset before pressing just darkies one moment, while we poll for our first question.
Our first question comes from Nicole Miller with Piper Sandler. Please proceed.
Thank you good morning, I wanted to better understand the new store opening in the quarter and the commentary around.
It sounds like the sales trends essentially and if I'm thinking about the core base, it's a lot of heavy lifting on recovery.
Francis maybe in channels of sales right lunch versus dinner or things like that and what people are ordering and then of course some price from inflation in the past few years, but then you open the store opens at parity it sounds like with the core and I'm wondering.
How does that inform the development going forward when you see that kind of success and take us back to the east Coast acquisition and the total addressable market White space that you had envisioned at that time.
Thanks, Nicole so I'm going to take it in part then maybe talk a couple to Christy, but I I think your question generally is around are we optimistic given the opening of the store in a market and and and mentioning that 2019 acquisition of a lot of long Island. So let me just start with the restaurant we are <unk>.
Turning them.
Before the end of the year is actually in that market and so I think we were optimistic when we made the acquisition about the marketplace.
Certainly given the performance of short hills, which is generally in the.
Northeast area and given it was actually over our system average.
Phil.
Even more positive about what the potential is for US we're doing work and it's hard to say right now and I won't adjust numbers based on what we shared back then when we did the acquisition, but I think there's a couple of factors in play one is you know.
As we get towards the.
And of the pandemic and things abate further what type of population migration of permanent.
Does that say anything about suburb locations suburban locations for us even more so than we may have seen in our portfolio before and then looking at some of the work that we were doing pre COVID-19.
But we are bringing out of the ground now with these smaller footprints that we can maximize and optimize capacity and so we are looking at all of that I think it's a great question thoughtful around potential changes in the marketplace.
Currently doing that work I'd say about short hills. We were we were very pleased about seeing it open the way. It did I think just see us in the market place was exciting for us about the Ruth's Chris brand. They knew we were coming they showed up they continue to show up so it's early but I think it's a good sign in general for <unk>.
How markets react to routes are when we enter a market. So that was certainly great to see.
I think there was something else in your question specific around kind of AEP is in pricing and I'll, let christine speak a little bit to that yeah.
Yeah, Nicole Thanks for the question I think you were asking about just what's happening within people building their own checks as well as the pricing. So I mentioned the pricing in my in my prepared comments, but as far as what we're seeing with guests continuing to create their own experience by adding.
That is definitely still continuing in the areas of apps salad side as well as the entre compliments on desserts. So we are still benefiting in our check not only from the price, but also from the guests who are coming into our restaurant trading up or into additional items per visit.
And then just a second and last question on adding I think I heard you say, adding one more manager per store talk a little bit about more about that because you're still obviously heading from a year end.
Specter of the objective on the labor savings it sounds like this would be because of increased demand is it one manager that was already in our system is that so.
One new you have to go out and teach the roof culture do they work. The same you know in terms of is it an equal hours to the way you established a manager shift previously what has changed in that profile.
So let me let me try and then Cheryl can clean up after me if she needs to so so to date, we've added approximately 20 additional restaurants to our highest volume.
Properties.
We are offsetting some of that labor because we have had key hourly labor in the restaurants to accommodate the number of hours, we need from a management perspective in some cases.
If they are ready we will promote from within and otherwise we will go outside fulfill that manage.
Manage our position and so as we look to next year. It really is about.
Sales and traffic returning to pre pandemic levels as we look to add those managers back into the remaining.
50, odd restaurants that we need to do that and just let me address because Nicole I think your question about are these new people what about the culture is really important and one of the things I've talked about before that remains true even coming out of the 18 months or so is the average tenure of the leadership teams in these restaurants. So when you look at the chef and the G&A we're looking at.
Nine and 10 year tenure with our company and culture lives through people.
So having that leadership has such an amazing tenure and understand this brand been through a lot of things and come out the other side. It really helps us were training new people into the culture that those people still sit in these leadership positions and just breathe the culture of routes.
It's really one of the things I pointed out a lot because I think it's so critical to ensuring that the culture and the experience. The guest has is consistent.
Thank you.
Our next question comes from James Rutherford with Stephens. Please proceed.
Great Good morning, Cheryl and Christy hope you're doing well.
I want to start off on the menu price discussion how did you settle on the mid single digit price, but it looks like you'll be running towards exiting part of this quarter.
Everything we've heard from restaurant operators broadly is that there is little to no consumer pushback when you're when you're hitting on price and I know it can take time to discern what the pushback actually as with commodity basket up nearly 30% why not push more it seems like maybe this is indication do you think this is a temporary there is temporary in nature to these higher prices on the on the beef side, but just love your thought.
It's around the menu price.
Yeah, So we've talked about before and I'll reiterate something Christie said, so we've been and I think we've used this term quite a bit and over the years is reluctant prices I think what has.
What what's the core of that is ensuring that we're not just thinking short term, but long term and you know this is a we've we've been 56 years at this and I think when you think about short term long term relative to 56 years. I think you know that gives you some idea of how protective of the guest experience and the value proposition you bring is having.
Said that we are you know looking at the impact and making the right decisions and we've said this before we use.
A lot of data we review it usually on a quarterly basis or twice a year and then quarterly and now we're reviewing it consistently so I think we will look at it again, if we need to.
I think we feel good with where we are now and to your point I think guests have given us the permission to sit between that 5% and 6%.
Which again is higher than we've ever been but I think it's.
Strategically and surgically understanding where that prices available going forward and so the way we are addressing it is within more frequent review and understanding exactly where we need to be going forward.
Okay got it that's helpful.
And then Christi one for you could you remind us what the monthly average weekly sales were kind of going back but on the fourth quarter of 2019, I know November and December ramp pretty significantly just want to make sure as we lap those and thinking about the comps. So we can get that right, but more importantly underlying that is I mean, how are you staffing levels and how do you think you're set up to.
To accommodate that higher demand in the holiday season.
Sure. So I'll take the first part and then Sherman to come in for the back half of that question. So if we look at fourth quarter 2019 of October we were at $100400.
We were at 109 point.
Seven call it for November and 155 for December in 2019.
Yes.
And just on the staffing so as you know every holiday season comes every year and every year months prior to that the operations team has a plan they implement obviously the environment around labor and refer it on every call is a little bit different we arent as different segments.
As we look at the our average hourly wage and so forth and that helps us.
So we've implemented at the same time initiate or ensure that the restaurants are staffed them I'm not going to say, it's easy and it's not more work and take more attention from the management team as it does.
But we feel confident that we will have the right team in the building and we're as we mentioned investing to ensure they are trained in the right way. They offer the exact experience that guests are expected from us for years.
So we're confident as we move through that we will be able to staff the restaurants.
And you know in the areas of a handful of markets, where we're struggling we're putting additional initiatives and to ensure that we have the staffing levels.
Okay. That's helpful I could squeeze one more in the marketing and advertising guidance of 13 to 14 million implies I think a bigger fourth quarter than we've seen in recent history for advertising and marketing spend something in the $5 million to $6 million range. What's the source of that step up and I'm, just kind of any thoughts around that please.
Okay.
Thank you for the question So you know marketing.
For US right now is all leaning into the data digital project that Cheryl mentioned during the call, which is expected to have a greater impact as we've ramped up in the <unk>.
Q3, and now into Q4.
Okay perfect. Thanks very much.
Our next question comes from Andy Barish with Jefferies. Please proceed.
Hey, guys a couple of.
Operational.
The question is just on.
So a few things you mentioned in your opening remarks Cheryl.
On Pos and Labor management systems and then.
Perhaps the expansion efforts can you just give us a little color in terms of.
What that potentially could give you in and layer in.
You know as new efforts and as you move through 2022.
So I'll start on and then there's only a little bit I can't give you a just because of the uniqueness of the work and you don't want to share it too broadly at this point, obviously P O S.
End of life Ing on our existing POS system, so moving to a new one was necessary, but it also gives us an opportunity to make sure that we streamline it for our teams in our restaurants and make sure that we havent set up for the future of the data and digital bringing all those guests insights into the restaurant that we need.
From a labor management perspective, we are expanding the use of labor management as we look at what operating hours, we should have when do we want to bring in each position within the restaurant in order to maximize the efficiency that we can we can have and using the insights on exactly in 15.
In increments when sales are coming in et cetera. So we can save on the margin.
Still within the labor category overall so.
And a lot of it is around you know how do we get more turns on the busiest days within the restaurant, how do we stack that appropriately how do we take into consideration.
People no shows within the restaurant and make sure that we still are able to accept walk ins and not have a table sitting empty and our busiest days.
Yeah.
Well it is.
Thank you and then.
The expansion more.
Cable management or <unk>.
Keeping utilization or is it actual physical expansion that you've done.
Some of the Remodels over the years.
It's not physical expansion into more of the former.
Okay and then just.
Just finally for me if you could.
I guess frame up.
What are the.
The 300 basis points labor.
You know 21 year end versus 19, but then having.
Having a full cadre of.
Additional managers back in the system for the full year of 'twenty, two how should we.
Think about that kind of coming off of that.
At year end 'twenty, one comment you were making meaning.
Are there other efficiencies that maybe offset some of that some of that manager standards is that really incremental labor costs, we need to factor in.
Yeah.
So I think there are some efficiencies that will offset that because you start with 300 basis points.
Versus 2019 is where we'll end the year you know I think I think assuming that we carry.
Two to 225 of that into 'twenty two.
Allowing us to do the training that Cheryl mentioned as well as.
Add back the managers that should be good.
Okay. Thanks for that very helpful.
Once again, ladies and gentlemen to ask a question. Please press star one on your telephone keypad. Our next question comes from Brian Vaccaro with Raymond James. Please proceed.
Hi, Thanks, and good morning.
I wanted to just touch on the underperforming markets and kind of can you can you speak to what you're seeing at the local level across Boston.
In Hawaii Manhattan, I heard your comments on why but we're seeing some some some datasets that suggest Boston is starting to come back to life a little bit. So if you can just touch on some of those underperforming markets at the local level that would be helpful.
Sure.
Take the this is Charles is the most obvious one for US is Hawaii I think.
We all thought so as Hawaii opened in July there was actually an uptick and we were running about 70% of.
2019, and then the market was shut down more or less and so I think that where you see the impact in the quarter.
And the expectation is that it is opening back up for tourism in November and so we expect a build back at that point I think as I mentioned, we'll see a bit of it and.
December and then as we go into next year barring any other shutdowns and restrictions to tourism.
So that's really it's very specific to that market. It certainly has an impact I think it's been the one that's probably had if we looked back the most kind of Oprah opened closings restrictions.
Back to restrictions and requirements back to open again, and so that one has probably been the most volatile Boston downtown Boston and Manhattan.
I think your comments about is it starting to come back they've they've been the two markets that I think reacted them the.
The most aggressively from a consumer mindset standpoint as.
As well as kind of returned to office and so those two probably have the biggest impact of that.
The dual consumers celebratory guests not being ready to come back yet as well as having offices. We're going to open then delayed then we're going to open and then delayed again and so I think as Christy as we've mentioned, we're going into further into the fourth quarter around the holidays and into next year.
Again, barring any other variance or of any other delta issues, we expect that we'll start to see those come back a bit more as well.
Okay. That's that's helpful and.
I was hoping shifting back to pricing I was hoping just to sharpen my pencil a little bit on some of the details. There can you give us what the effective menu pricing was in the third quarter.
How much did you take in September and then where will effective pricing be in four Q with all these puts and takes.
If you're lapping any et cetera, where will that affect your pricing would be in the fourth quarter.
Yeah, So our Q3 effective pricing was 4.5%.
Just 2.5% in the May timeframe mid may.
Our September pricing was one 6% and our effective pricing for the fourth quarter is five 9% and I'll just add you're going to see about a percent of that you know roll off as.
As we enter the beginning of next year.
Excellent very helpful less.
Unless the one I guess for me just on labor.
Or can you help us frame, what's where are your average staffing levels across your company units versus 19, and can you break that down a little bit further for us maybe comment on what percent of units remain materially understaffed and are they seeing a material impact on sales that are being left on the table due to the statue.
Shortages.
Yeah sure so worried about 90% staffing level right now.
And that is we're happy with that because we did make the efficiency changes within the restaurant and eliminated the need for some physicians. So we haven't seen some of the staffing shortages overall, we do have a handful of restaurants I would say that you know our challenge right now and particularly.
In the back of the house, but for the most part are you know our restaurants.
Remember size is now 90% of what it was before.
Okay and you.
And you mentioned, bringing back an additional manager once here.
Her store once you're done with that.
What was your average number of managers per store compared to 2019.
It will be down approximately one manager.
91 manager.
Okay, Great Alright, Alright, I'll pass it along thank you. Thank you.
Our next question comes from Todd Brooks with CL King. Please proceed.
Hey, good morning to you both.
Couple of quick questions around holiday demand.
And Christy you shared kind of the build that you see or saw in December.
COVID-19 off of November when we talk about that that 150000, how much of that was kind of private dining in.
And holiday Holiday group related and then if we can talk about.
Kind of the timing of when those bookings typically would show up I know you Cheryl I think you've talked about starting to build here recently.
But any color that you can give on the bookings that are happening similar size are they smaller parties. The unusual just some color around how holiday shaping up early on here.
Yeah, and I think I've mentioned, even on the last call you know the way people book Adventures trades, and saying I've been here for almost 15 years and it's shifted significantly about when people book versus in prior years, and so I think the.
The pandemic and back to office and a lot of that is even further put some variables into the timing of booking I can speak to what we've seen and I think that you know there's there's what carried us on private dining to a good extent of social events and so those are hanging in we see people that are you know smaller groups and family celebrations.
And friends celebrations have been fairly consistent we're seeing an uptick on the business side of bookings within the last few weeks I think it's still a bit early because of the uncertainties out there I think we will see you know over the next couple of weeks to three three to four weeks.
There's kind of four cycle of kind of wait and see that some of the the delta implications are.
But I think it's still early good signs out I will say, it's really going to be dependent on how people feel as we get closer to the holidays. So yeah. I think you know again early good signs it's good to see some of the business inquiries coming back that we didn't necessarily have before.
We'll know more over the next few weeks.
And I don't know if you can quantify kind of going back to fiscal 19 that 150000.
A week.
What's the complexion of that how much was made up by this business that we're hoping is still on the come here, but we won't know because of the nature of how people are booking is that typically when you look at the 40000 dollar weekly left as it is it half of that.
I'm just trying to think about what all we're trying to sell yeah.
Yeah, I would say that if you have used approximately 20% of your.
December number that's related to private time.
In 2009, great.
Yeah, that's great right that as we talked about this all through the pandemic as the fluidity of the buckets of business and so to your point you know we've seen our whole focus has been at least for the last year as meet the guests where they are if they want an rus anywhere if it's a private dining events if it's outside of the 10th.
If it's Ala carte dining bar dining is make sure that wherever the guest wants to be we can accommodate it and we've seen that move within so pre COVID-19 the buckets of business being special occasion celebratory just because in business.
And we've been able to kind of move and speak to our guests within the what's the occasion and they want to come from so we see that fluidity remaining as we look towards the fourth quarter.
And understanding the different revenue channels and revenue centers that that we can move.
Move the guests into.
Okay, Great very helpful and a final one from me if I could.
How meaningful typically in this fourth quarter period is the gift card business or for routes.
What was the experience during kind of 'twenty, how much did that business dip and then.
Opportunity in kind of marketing against that is that is that our focus in 'twenty, one and does that can be realized fairly quickly is that if its a Q4 type of Jeff because as a Q1 type of.
Redemption pattern. Thank you.
Hi, Todd. This is my time on the gift cards Q4 is obviously our biggest season.
But we saw last year as the sales did drop similar to gift card sales to drop similar to our restaurant sales not quite as severe but a similar pattern.
We have not seen a change yet on redemption behavior.
It's followed historical patterns, so far so no no change to note there.
Okay, great. Thanks, Mike.
There's been a lot of reports lately that the gift cards channel is something people are going to be looking for this year to sell experiences. So I think that's positive.
For us versus eight eight.
Items or things and so we look.
We're trying to tap into that to the extent, we can because it does.
With future visitation.
Okay, great perfect. Thank you.
Thank you at this time there are no further questions in queue I would like to turn the call back over to MS. Cheryl Henry for closing comments.
Thank you everyone for joining us on the call today, and we look forward to speaking with you again soon.
Thank you. This does concludes today's teleconference. You may disconnect. Your lines at this time and thank you for your participation and have a great day.
Yeah.