Q1 2022 AppHarvest Inc Earnings Call
Good day, ladies and gentlemen, thank you for attending.
First quarter 2022 earnings conference call at this time participants are in listen only mode. After the speaker's presentation. There will be a question and answer session to ask a question. During this session you will need to press. The Star then the one key on your Touchtone telephone.
I would now like to turn the conference over to your host for today's call Travis Harman.
Thank you for joining us for the App harvest first quarter 2022 earnings call I'm drivers apartment, Chief Communications Officer for App harvest joining me in Kentucky today are several members of our senior management team, including Jonathan Web.
<unk> CEO , David Lee Board member and President, Julie Nelson, Chief Operating Officer, and Lauren Egelton, Chief Financial Officer, the earnings release, and slide presentation are available on our Investor website at investors Dot App harvest Dot com on today's call will begin with prepared remarks from the team then we will open the call to questions.
Before we start I'd like to remind you that comments today regarding the company's future business plans prospects financial performance are forward looking statements that we make pursuant to the safe Harbor provisions of the Securities laws. These statements are made based on management's current knowledge and assumptions about future events and involve risks and uncertainties that could cause actual results to differ materially from our expectations in providing projections and other forward looking.
Statements the company disclaims any intent or obligation to update them for additional information on important factors that could affect these expectations. Please see our most recent SEC filings and now I'd like to turn the call over to Jonathan Thanks, Travis The App harvest team delivered on our top priorities for the first quarter, one ramping up production in the second growing season at our <unk>.
Current facility in Morehead, Kentucky, and two remaining on track to open three new forms selling salad Greens berries, and additional tomatoes by the end of the year through March we sold nearly 7 million pounds of Tomatoes coming from our Moorhead farm for $5 2 million, representing our highest net sales quarter to date.
The timeline for opening our new farms is also on schedule and will be a phased approach to ramp up production. We anticipate they will begin contributing to net sales and production beginning in Q3 with Maria that will accelerate in Q4, when Richmond and summer set are expected to be operational as well we expect these three farms.
To one accelerate our sales growth to enable us to become financially self sufficient and three attract new investment that would allow us to continue to grow our high Tech farm network in central Appalachia and beyond.
We also continue to make progress on farm co. Our proposed joint venture with mastronardi to build and operate CEO facilities throughout the U S with the potential to significantly expand our footprint nationally. If agreement can be reached we anticipate top benefits will include improved geographic reach revenue growth liquidity.
And financing options for continued expansion as the CE industry continues to grow at rapid pace the importance of connecting add scale produce supply to a world class distribution network has become more clear. This is something we've had in place with our distribution partner mastronardi since before we went public early last year as our new <unk>.
Farms come online later this year, we believe there is great potential and further leveraging our existing distribution agreement not only from selling new and higher value crop types through the master R&D network, but also from improving ability to ship direct to large national customers such as Wendy's shipping direct boost net sales by saving transportation cost.
Both on the App harvest mastronardi side, and it's an option that is increasingly available to us as our quality and execution continue to improve in fact, our percentage of direct shipments which used to be in the single digits was above 20% in the first quarter of this year. Finally, we continue to do business in a more sustainable way as one of <unk>.
Only a handful of publicly traded public benefit Corporation that is also B Corp. Certified last month, we received preliminary approval for recertification of our B Corp status with an expected score of 95.4.
15% improvement over our initial certification in 2019 I'm proud that we're at the forefront to move agriculture to a more sustainable future with strong ESG principles as our foundation as a sign of our continued commitment and strong track record in this area. We will also release, our third sustainability report in the coming weeks.
I will now ask our president David Lee to share more details on our Q1 results.
David.
Thanks, Jonathan.
This is a pivotal year at up harvest and I am pleased with our execution in the first quarter.
We continue to drive strong operational performance at Morehead and we remain on track with our farm network expansion.
All while navigating an economic environment characterized by challenging supply chain and inflationary issues in.
In the first quarter, we successfully executed both.
Importantly, we began to realize savings from the aggressive actions, we took last quarter to reduce our cost structure.
We remain on target with our 2022 outlook, which we continue to expect will more than double our topline and keep adjusted EBITDA in line with last year, Despite rising inflation and a much larger farm network compared to 2021.
We believe the build out of our current development phase is well timed.
In this time of global geopolitical conflict.
Water resource limitations and food security disruptions, we believe App harvests business model positions us well against incumbents to grow and sell domestically with three more farms coming online this year.
We see our ability to deliver fresh fruits and vegetables as relatively insulated from global supply chain disruptions.
As one of the largest <unk> operators in the U S. We also believe that we are an advantage when it comes to meeting the consistent consumer demand for fresh produce as our local facilities harvest almost year round and through the coldest months of the year.
We feel well positioned with a larger farm network and diversification of crops. This year to keep taking an increasing share of dinner plates and grocery slots.
Over the long term, we expect that the completion of our current development phase puts us in a prime position to deliver positive operating cash flow on the back of our four farm network at a steady state thinking beyond the four farms, we plan to develop additional facilities only after securing the required capital and we.
We remain confident in our ability to do so and be self sufficient.
We believe we have made substantial progress over the last quarter of the structuring financing and new project pipeline for the potential farm co joint venture, which could be a significant expansion of the harvest mastronardi partnership.
As part of our previously announced first quarter restructuring, we have enabled our teams to focus on driving and improving the core business and can dedicate appropriate support to pursue such strategic initiatives.
We are in later stage discussions with several parties, who could provide off balance sheet funding for our growth plan.
So.
Backed by our initial farm, that's ramping up to higher levels of net sales in production the nearly 50% cut to non operations head count and other operational efficiencies implemented in February .
And the expanding commercial scale of our three new farms opening this year.
Our team's focus remains on driving core business improvement and generating positive operating cash flow.
The fundamental improvements we're driving in the business is key to our success.
And with more detail on that piece I'd like to ask our Chief operating officer, Julie Nelson to review operational highlights Julie.
Thank you David.
In the first quarter of harvest from our SEC into grilling season at Moorhead accelerated.
And retail at $6 9 million pounds of tomato compared to $3 8 million pounds sold in the first quarter last year.
This resulted in a net sales price of 75 cents per pound.
14th.
23% above the net sales price per pound in the same quarter last year.
The team drove these results through additional sales at a higher price tomato varieties compared to last year.
And a more favorable ratio of USDA, great number one demand.
What we refer to as premium grade to NEDA.
We continue to expect the main driver of our financial results can be delivery on our operational objectives and quality.
Encouragingly, we've been able to deliver steady improvement in this area despite headwinds, including the mitigation efforts related to the plant health issue, we discussed last quarter.
Okay.
We expect the impact of this issue can be towards the higher end, but still within the range of our original forecast of 10% to 15% of our 2022.
Removed an extra plant in the affected area and an abundance of caution every parent debt ceiling.
This was one of several proactive steps our team to contain the issue and to protect the overall harvest, which we believe we've been successful in doing.
We expect the end result of these actions will shift a portion of our second quarter sales and production into the third quarter with our overall annual net sales outlook unchanged, which Laura will cover in greater detail.
Operationally, we continue to see steady improvements in our day to day operations.
Our percentage of premium Canadians increased in the first quarter versus the same quarter last year as better training and protocols are making an impact.
Early in the corner, we've rolled out a new productivity enhancement.
A quick <unk> shoot method that combines two crop care tasks interesting activity, which saves time and is better for plant health.
It's something we're planning to deploy and our new line craft facilities when they come online towards the end of the year.
Finally, we're doing a solid job of keeping a lid on our distribution expense.
We're managing it in line with our internal projections, despite inflation and freight.
Finally, controllable cost performance and increasing retail crackers for fresh fruits and vegetables together reinforce the progress we've made it more head.
And is the ideal environment English to open our three new farms later this year.
Now I'll turn the call over to our CFO Lorence Kim.
Who will review, our financial performance and outlook in greater detail.
Lauren Thanks Julie.
Start by briefly reviewing our first quarter results give an update on our development progress and then move to the 2022 outlook.
We achieved first quarter net sales of $5 2 million as compared to $2 3 million in the first quarter of last year. The increase was driven by higher production during the quarter compared to Moorhead phased initial opening as well as achieving a higher average net price per pound.
The first quarter net loss of $36 million was only incrementally higher than the $28 $5 million in the first quarter last year, despite costs associated with significantly higher production in Moorhead, a $2 million one time expense associated with our February a restructuring and preparation costs related to the opening of our three new farms.
Later this year in line with expectations. During this high growth period, our first quarter adjusted EBITDA loss was $18 million compared to $12 $4 million last year, while we're naturally saw higher operational cost due to the production ramp up and more had this year, we were able to partially offset that increase through the restructuring we announced.
Last quarter through March we realized savings of approximately $1 4 million versus.
Versus our prior baseline and continue to expect annual SG&A savings of approximately $16 million a run rate basis.
Let me turn next to our progress on farm development and financing construction continues on our previously announced CEO facilities.
Three farmers remain on schedule and we expect them to begin operating by the end of the year. The 15 acre Berea, Kentucky salad Greens facility is about 79% complete 60 acre Richmond, Kentucky tomato facility is approximately 75% complete.
And a 30 acre Somerset, Kentucky Barrie facility is about 65% complete.
We expect to ramp up each facility with a phased approach that brings on additional acreage over time.
To the opening of the full 60 acres that moorehead, we expect that the first phased opening of this kind will be at the <unk> facility. Starting this summer as David mentioned the completion of our current development phase with our four farm network is an important milestone.
We believe it enables us to be self sufficient and to use only the funding we have secured so far to generate positive operating cash flow over time.
Turning to the balance sheet, we ended the quarter with cash and cash equivalents of $98 million and we have approximately $58 million and availability remaining on our credit facilities as.
As we announced in December we also established a $100 million committed equity facility with B Riley principal capital that we have yet to draw upon in terms of approach. We continue to prioritize non dilutive sources of capital and we are currently engaged in discussions for financing on our barilla salad Greens facility, we remain highly confident that this high tech.
Indoor farm can raise incremental capital in a similar fashion to the others based on its strong return profile and higher degree of automation.
Additionally, as both Jonathan and David mentioned in regard to strategic initiatives such as the proposed farm code joint venture with Mastronardi.
We continue to work with both private financial companies and the government sector, including the USDA to explore opportunities for funding.
In terms of capital expenditures for the full year 2022, we expect to invest approximately $140 million to $150 million, which accounts for the completion of the three construction projects underway.
Of this total we anticipate approximately $40 million to be funded with balance sheet cash as we draw upon our existing credit line arrangements with equilibrium and JP Morgan to satisfy the majority of our 2022 Capex.
Now, let me turn to our full year 2022, net sales adjusted EBITDA outlook.
We continue to expect to deliver total company net sales in the range of 24% to $32 million. This year we.
We anticipate that the yield loss from the planning Commission, we mentioned earlier, which is already reflected in our original guidance.
Impact our second quarter results from a timing perspective, as some production and sales will shift from Q2 into Q3.
The growing season to be extended and the affected rose at Moorhead.
So in terms of quarterly sales cadence, it's not unreasonable to expected sales dip in Q2 versus Q1 based on this shift.
We expect to deliver more significant year over year net sales in Q3 driven.
Driven by the extended harvest and.
And especially in Q4, when all three new farms are expected to be open.
In summary, we expect no change to the overall net sales outlook for the year.
Regarding adjusted EBITDA, our full year 2022 loss expectation remains.
And the range from $70 million to $80 million.
Modestly higher than the $69 9 million in 2021, despite significant investments associated with the expected quadrupling of our farm network and significant year over year inflation.
With that I'll turn it back over to our Chief Communications Officer Travis farming. Thank you Lauren operator, we will now begin to take questions.
Thank you, ladies and gentlemen to ask a question you will need to press. The Star then the one key on your Touchtone telephone.
<unk> will be compile the Q&A roster.
And our first question coming from the line of Brian Holland with Cowen Your line is open.
Thanks, Good afternoon, everyone.
A quick one just kind of get started.
Talking about the improvement in the mix of direct shipments I'm. Just curious if you can remind us what are you sort of view it stages as the optimal mix I mean are you bearing the low twenty's or is that a is that a.
Is that a number that can get materially higher from here in the next.
A few quarters or a couple of years.
Thanks for the question Brian This is David Lee.
Haven't provided specific guidance on our targeted mix I can tell you we've highlighted it as a key driver in managing remember our net sales are improved to the extent to which we ship direct to increasingly larger customers that we're targeting with mastronardi.
At this point I can't directly answer your question, what I can point to is that the performance in the quarter as we mentioned in our script is a pretty significant increase in net sales remember that reflects not just how many pounds, we produce and sell but also the realized net sales mix associated with <unk>.
We're paying for those logistical expenses or not and 125% up year on year. It is one thing, but if you look at our most recent quarterly performance that might be more useful for you given our last quarterly release, you were talking about over a 65 close to a 68% sequential increase in net sales we highlighted on the call that we benefit.
To a certain extent with varietals with better pricing, but frankly, Julian Nelson and the team has driven strong operational improvements that do include our ability in the future to ship directly to customers. So I think that's all the color we can provide at this point.
No I appreciate that David and maybe another tough one to answer but I'll try can you sort of help characterize the net price of the realized net price per pound lift.
In Q1, both sequentially and year over year.
Between improved production I E more grade wallet.
Worse is.
The introduction of other varietals.
Yeah, Hey, Brian It's Lauren.
For the most part most of the lift is going to be attributable to selling of the higher priced varieties such as.
Tomorrow on the <unk>.
As well as Campari.
We did see you're just talking about the distribution fees, we did see.
A slight pickup and improvement on the distribution fee, but most of the pickup to that 75.
Sequentially from Q4 as well as from Q1 of last year is going to be attributable to selling higher priced varieties.
And then you mentioned this.
Question will dip expected in Q2 'twenty two.
I'm also curious about the pricing the seasonality component right I mean, I know last year Q2 was impacted by sort of the issues experienced as part of the first harvest.
Right.
Just to help level set everyone kind of expectations for pricing sequentially from a market perspective.
Sure.
Where they should go from here.
Yes, no good question I think.
Historically and see how we see that.
Tomato pricing kind of comes down.
Towards the summer from here, but in looking at recent USDA data on the varieties that we sell we did see modest increases in.
And prices from March to April .
We don't know what thats going to look like over the next couple of months.
We would expect that as we get into the summer months, it will be lower than the winter months.
And then just last one for me mindful of.
I'll get out of the way.
Poverty to point out the holding cost structure that was discussed last year seems well suited to capture the for.
For lack of a better term opportunity for CBA and App harvest in particular presented by.
Not just geopolitical conflict, but.
Climate issues et cetera.
How have those conversations with potential partners evolve and when should we expect maybe an update to that end.
It's a great question, Brian This is David Lee again.
Remember when we discussed our refocus restructuring the first objective was to ensure the team could focus on the core business the core business being to ensure that moorhead produces more and more but also to quadruple the number of farms by the end of 2022 and that core focus priority one.
We feel very pleased with the results, we're presenting today and our affirmation of the year.
While we talk about our core number one focus we've been extremely active and frankly, the restriction of taking out 50% of the non working head count has allowed us to appropriately resource. These strategic initiatives that you are mentioning in the in the script you've heard both Jonathan and I talk about.
Solid progress on building changing strategic initiatives, we're not highlighting on this call those because we wanted to ensure that we reestablish credibility on the core focus of our operations, but as mentioned we characterized our conversations is extremely positive in all dimensions, frankly, particularly in the area.
<unk>, where we already have a great relationship with Mastercard, but we have the potential and we believe we'll realize it one day to deepen it at this point I don't want to distract our investors our analysts with a timetable on the strategic initiatives I want to keep the conversation focused on the good news on our core biz.
<unk>.
Yes, no I appreciate the color I'll leave it there best of luck. Thank you.
Our next.
Next question is coming from the line of Ben Theurer with Barclays. Your line is open.
Perfect. Good afternoon, and thank you very much congrats on the results.
Just maybe along the lines and what we've been seeing obviously, you've talked about the restructuring taking cost out.
Much appreciate.
The sequential how we should think about the top line, but could you could you also shed some light on how we should think about sequentially on some of some of the SG&A expenses and how thats been trending trending because we saw this like nice cadence quarter after quarter, it's come down and it's.
Paying off all the initiatives you've been doing so how should we think over the next couple of quarters on that as G&A line, which is obviously.
A relevant line and to understand a little bit all the initiatives, you've been doing and where does it heading to that will be my first question.
Yes, So I would say first we're very pleased with our performance on adjusted EBITDA in Q1.
I don't know if youre indirectly you kind of get to inflation on this but.
Like all companies, we have to manage too to inflation.
Our our overall increase in Cogs in Q1 due to inflation was relatively low.
And was largely driven by higher energy costs.
Which were mitigated by effective efforts to avoid the high peak demands on electricity.
As well as.
Offsetting some productivity gains from the Morehead facility.
For us thankfully sunlight rainwater are still free.
And we would expect that.
The adjusted EBITDA to be in line with.
With expectations. Ben This is David Lee just to add a little bit more color, sometimes when people use the term SG&A for a company in hyper growth.
We need to clarify I think recall the timing of taking out that 50% of what we call non production.
<unk>.
You would expect any company that does that significant a reduction in what I would characterize more as corporate SG&A to still realized in the flow of a given fiscal year continued benefit ex the <unk>.
Onetime costs, we all know companies take when they make those hard decisions.
In addition to the great points Lawrence made on our ability to manage our inflation given how much more efficient. We are then open field farming, but but as you would suspect in any major corporation. When you take out the corporate SG&A you don't realize it immediately in the first couple of quarters.
Post thereafter, I hope that can give you a little bit of color commentary since we're not offering any quarterly specific guidance other than affirming the year.
Okay perfect.
Thanks, Lauren and thanks, David and then my second question is really.
Along the lines of.
What Brian was alluding to obviously, the better price or better mix.
You've mentioned that you were able to just Ohio value product and that basically drove the price up so how should we think about app harvest in the fourth quarter, what's going to be the mix between like the commodity piece, maybe some some more of that higher value added.
Tomatoes are just on the line.
How much of an importance is going to play that you get the Barrie facility.
The fact that berry prices tend to be not too too low on a per pound basis in any given the fourth quarter. So just to get a feel about the average price for the year.
Yes, I mean, I think with Q4, it's going to get.
Youre going to see we're going to four operating facilities.
So we're going to have.
Not just in our tomato varieties, but different salad grain varieties different Barry varieties.
And so we're going to see a lot of different prototypes, there I would expect.
That will kick off, especially on the tomato facilities and cleaning Morehead will kick off a new growing season.
So I would expect as of right now that we would we would continue to use the mix that we have.
<unk> and Campari.
But that could change.
And then this is Jonathan I think it is important to note that at the end of the year, we will be a fruit and vegetable company at scale.
Got it.
We started with our very proud facility and more at our first facility.
<unk> facility, but we're really realizing the potential at harvest at the end of the year mis spreading across a variety of fruits and vegetables and enabled to start to focus on how we can optimize.
The best varieties that are playing in the market. So at the end of the year, we'll be able to toggle back and forth between those varietals as <unk>.
Julie is running all four of these facilities across crop type.
Okay perfect.
Perfect. Thank you very much.
Thanks.
Our next question coming from the line of Chris <unk> with Oppenheimer. Your line is open.
Hi, Thank you for taking the question.
I wanted to start first on the B Corp certification and the progress that you made this year.
And wanted to ask really what the drivers of that improvement are and as you are going out and looking for these alternative non diluted sources of capital.
That's playing any role in your ability to secure a lower cost of capital.
Well.
For us sustainability is it's about resiliency and Lauren mentioned, it a moment ago.
Thankfully Sunshine and rainwater are free.
We run completely on recycled rainwater, yes that that's great for a B Corp score and we want to have the highest score possible.
For US again, it's about how do we build resiliency into our model.
Look at the drought in California Lake Mead, the Colorado River.
Water prices are going to be skyrocketing in the areas of the country where.
AG culture is highly.
Our focused.
We don't have any water cost. So yes, we care about the B Corp score, yes, we're thrilled that the <unk> scores going up but for US. It's how do we use sustainability to ultimately build a resilient model over time.
And I think that score is simply a reflection of what we already have in place here at the company.
Great and any comments you can make as far as the influence that that could have on your borrowing costs certainly seeing many more opportunities to have ESG linked <unk> lines of credit. So any color you can provide on those discussions.
This is David Lee one of the bright spots that we've seen as a team is great access to non dilutive financing to invest in our growth of new facilities. When you look at the facility, even Morehead and how we've been able not just the finance, it's pre construction, but on the other side of having a facility.
City that uses completely recycled rainwater, but also frankly is producing a product for which there is no line of sight to an end of demand through mastronardi. It means that you can bankroll those facilities those infrastructure investments that you've seen us deliver on.
I think that's a big part of being relevant to consumers relevance to customers that mastronardi serves and while I don't think we've realized the full benefit of that and market. It is important and it shows that I think even in the financings off balance sheet that we've announced to date.
Frankly, I know we have work to do on the equity side to get credit with equity investors for the credibility, we're reestablishing, but I can imagine that those.
Fundamental tailwind with the consumer that fundamental demand for product has grown in Appalachia that use a fraction.
Of all the things, we don't like and provide the great nutrition, we do like that will show up I think it's a mid to long term.
Process, but we are only counting on great financial results today to receive the financing that we need.
That's super helpful. Thank you so much and just a follow up switching gears a little bit I wanted to ask about the leafy Greens facilities. Obviously, we've had a lot of evolution of the CEO of industry. Since you initially announced your growth plans.
Just wondering if you can speak to some of the incremental learnings or technology that have come into place. They give you and sort of the strength of the runway that you are expecting as we closed the year in that facility.
Yes, so not only will this be one of the largest.
CA facilities growing leafy greens not only in the country, but in North America, and arguably beyond definitely one of the most technologically advanced in.
We started with the hardest crop type first which is tomatoes, and really strengthened our team and capabilities.
The leafy green facility.
Is is dramatically different in many ways highly automated.
A fraction of the employees.
And great.
Great ability to shift varieties. So if a grocer set as a couple of months out that we want.
This type of crop mix Julien team will quickly be able to pivot that facility and fill demand and we're very excited to add that we see leafy green facility online in the back half of this year.
And the market and runway ahead of us to fill that market is is there Chris.
Chris one other point that Jonathan is making that I want to make sure you hear is one of the things that's actually similar to our output at Moorhead is there is ready demand and a world class distribution agreement with mastronardi. So every great pound of product that comes out of Korea.
But variety this will be true with the various too for us. We just have to focus on growing because we have a partner that has already secured demand and has already talked to many customers about ensuring that what we produce will be sold in market, which is a wonderful asset for us it up harvest.
We're not just a leafy green grower I think thats important too we are a full produce company. We will have strawberries multi variety of tomatoes, multi variety of leafy Greens.
Think it is important to note that we don't just grow salad Greens, but we will be one of the largest salad green operators at the end of the year, but that's just one of many mixes will be able to bring to the grocer that gives us full reach throughout that prototype.
And finally, I would just add that.
Scale too for farm.
Between now and ended the year, we also have the ability.
Two two.
To leverage our core operational functions across not one time, but now four so functions like logistics and purchasing maintenance and of course.
Our operations leadership are now working across four farms, which gives us very good.
Cost leverage.
That's really helpful. Thank you for all the color I'll leave it there.
Okay.
Thank you and I'm showing no further questions at this time, ladies and gentlemen that does conclude our conference for today. Thank you for your participation you may now disconnect.
[music].
Okay.
[music].
Yes.
[music].
Okay.
Hum.
[music].
Okay.
[music].
Yes.
[music].
Thank you.
[music].
Yes.
Hum.
[music].
Okay.
[music].
Yes.
[music].
Thanks.
Yes.
Yes.
Yes.
[music].
Yes.
Okay.
Yes.
[music].
Okay.
Yes.
Sure.
Yes.
Okay.
Yes.
Yes.
Yes.
Yes.
Okay.
Yes.
Yes.
[music].
Yes.
[music].
Yes.
Yes.
Okay.
Yes.
Yes.
[music].
Okay.
Okay.
[music].
Yes.
Yes.
Okay.
[music].
Yes.
Okay.
[music].
Okay.
Okay.
[music].
Okay.
[music].
Alright.
<unk>.
Okay.
Okay.
Yes.
Yes.
[music].
Yes.
Okay.
[music].
Yes.
Yeah.
[music].
Yes.
Yes.
Okay.
Okay.
Yes.
Okay.
Okay.
Okay.
Yes.
Okay.
Okay.
[music].
Yes.
Okay.
Yes.
Okay.
Okay.
Okay.
Yes.
Okay.
Okay.
Yes.
Yes.
[music].
Okay.
Yes.
Yes.
Okay.
Yes.
Yes.
Sure.
Yes.
Okay.
Yes.
Okay.
Okay.
Yes.
Yes.
Yes.
Okay.
Okay.
Yes.
Yes.
Okay.
Okay.
[music].
Thanks.
Yes.
Okay.
Yes.
[music].
Okay.
Yes.
Yes.
Okay.
Okay.
Yes.
Okay.
Okay.
Okay.
Okay.
Okay.
[music].
Yes.
Okay.
Sure.
Okay.
Okay.
Okay.
Yes.
Okay.
Okay.
Yes.
Okay.
Okay.
Yes.
Yes.
Okay.
Yes.
Okay.
Yes.
Yes.
Okay.
[music].
Okay.
Okay.
[music].
Yes.
Okay.
Yes.
Okay.
Yes.
Yes.
Yes.
Yes.
Okay.
Sure.
Okay.
Okay.
Okay.
Yes.
Okay.
Okay.
Okay.
Okay.
Okay.
Yes.
Yes.
Yes.
Yes.
Sure.
Okay.
Okay.
Okay.
Sure.
Okay.
Okay.
Okay.
Yes.
Okay.
Okay.
Yes.
Okay.
Okay.
Okay.
Okay.
Yes.
Yes.
Yes.
Okay.
Yes.
Sure.
Yes.
Okay.
Yes.
[music].
Yes.
Okay.
Yes.
Sure.
Okay.
Yes.
Thank you.
Thank you.
Yes.
Yes.
Yes.
Yes.
Yes.
Okay.
Okay.
Okay.
Yes.
Yes.
Okay.
Yes.
Okay.
Okay.
Okay.
Okay.
Okay.
Okay.
Yes.
Okay.
Yes.
Yes.
Okay.
Okay.
Yes.
Okay.
Okay.
Okay.
Okay.
Okay.
Sure.
Yes.
Okay.
Yes.
Yes.
Yes.
Okay.
Okay.
Yes.
Okay.
[music].
Yes.
Okay.
Yes.
[music].
Okay.
Thanks.
Okay.
Okay.
Okay.
Yes.
Yes.
Okay.
Okay.
Okay.
Okay.
Okay.
Sure.
Yes.
Okay.
Yes.
Okay.
Yes.
Yes.
Okay.
Okay.
Okay.
Okay.
[music].
Okay.
Yes.
Okay.
Yes.
Yes.
Yes.
Okay.
Sure.
Okay.
Okay.
Okay.
Okay.
Sure.
<unk>.
Okay.
Okay.
[music].
Okay.
Okay.
Yes.
Yes.
Yes.
Yes.
Okay.
Okay.
Okay.
Okay.
Yeah.
[music].
Okay.
Okay.
Yes.
Yes.
Yes.
[music].
Okay.
[music].
Okay.
Okay.
Yes.
Sure.
Yes.
Okay.
Yes.
Okay.
Yes.
Yes.
[music].
Okay.
Okay.
Yes.
Yes.