Q1 2023 Lancaster Colony Corp Earnings Call
Good morning.
My name is Rocco and I will be your conference call facilitator today.
At this time I would like to welcome everyone to the Lancaster Colony Corporation fiscal year 2023 first quarter conference call.
Conducting today's call will be Dave <unk>, President and CEO and Tom Pigott CFO .
All lines have been placed on mute to prevent any background noise.
After the speakers have completed their prepared remarks, there will be a question and answer period.
You'd like to ask a question. During this time simply press Star then the number one on your telephone keypad and questions will be taken in the order they are received.
If you would like to withdraw your question. Please press Star then two.
Thank you.
And now to begin the conference call here is scale.
Going off sick, Vice President of corporate Finance and Investor Relations for Lancaster Colony Corporation.
Thank you good morning, everyone and thank you for joining us today for Lancaster colony's fiscal year 2023 first quarter conference call.
Our discussion. This morning May include forward looking statements, which are subject to the safe Harbor provisions of the private Securities Litigation Reform Act of 1995.
These statements are subject to a number of risks and uncertainties that could cause actual results to differ materially and the company undertakes no obligation to update these statements based upon subsequent events a day.
Discussion of these risks and uncertainties is contained in the company's filings with the SEC.
Also note that the audio replay of this call will be archived and available at our company's website Lancaster colony Dot Com later this afternoon.
For today's call, Dave <unk>, our president and CEO will begin with our <unk>.
Business update and highlights for the quarter.
Tom Pigott, our CFO will then provide an overview of the financial results.
Dave will then share some comments regarding our current strategy and outlook.
At the conclusion of our prepared remarks, we'll be happy to respond to any of your questions.
Once again, we appreciate your participation. This morning, I'll now turn the call over to Lancaster, colony's President and CEO , Dave <unk> Dave.
Thanks, Dale and good morning, everyone. It's a pleasure to be here with you today as we review our first quarter results for fiscal year 2023.
And our first quarter, which ended September 30, we were very pleased to report both record sales and higher profits.
<unk> net sales increased eight 5% to $426 million.
Consolidated gross profit improved seven 2% to $99 1 million.
As we foreshadowed on our Q4 call our sales for the quarter were unfavorably impacted by our July 1st ERP go live which shifted an estimated 25 million of net sales into our fiscal fourth quarter.
The retail segment's first quarter net sales of $223 million were flat versus prior year and compare to strong growth of nearly 16% in the same period a year ago.
Advanced ordering ahead of our ERP go live accounted for an estimated $11 million in retail net sales that were shifted into our fiscal fourth quarter.
Top performing product lines in the first quarter included Mark Eddie refrigerated dressings, and caramel dips during the period. We also added to our growing licensing program with the launch of our new larger size of popular Chick Fil, a sauce and the exciting new launch of RV source and our iconic horsey sauce.
Retail net sales reflects the benefit of pricing actions taken to offset inflationary cost, including our most recent round of pricing for retail dressings, and sauces, which took effect in early August .
Sales volumes measured in pounds shipped were down 15% as impacted by three primary factors.
First our decision to exit some less profitable product lines during fiscal year 2022.
Second the advanced ordering ahead of our ERP go live and third demand elasticity attributed to inflationary pricing.
Excluding the product line rationalizations and advanced ordering retail sales volume declined about 7%, which was in line with our expectations for demand elasticity.
IRI data for our first quarter showed share gains for our sister Schubert's dinner rolls and Mark Eddie refrigerated dressings.
Sister Schubert's share of the frozen dinner roll category increased 290 basis points to 50, 53, 9% and <unk> refrigerated dressings category added 190 basis points to 23, 8%.
In summary, Q1 topline results for our retail segment reflect our pricing actions and strong performance from our <unk> brand and additions to our licensing program, which were offset by product line rationalizations demand elasticity and advanced ordering ahead of our July one ERP go live.
<unk>.
In our foodservice segment net sales grew over 20% driven by our pricing actions along with volume gains for select customers in our mix of national accounts.
Advanced ordering ahead of our July 1st ERP go live accounted for an estimated $14 million in foodservice net sales that were pulled forward into our fiscal fourth quarter ended June 30.
Excluding the advance ordering our foodservice segment volumes were down 1% in fiscal Q1, which compares favorably to NPD crest data for the quarter, which showed restaurant industry transactions were down in the low to mid single digit percentage point range for the period.
During Q1, we continued to experience high levels of inflation for raw materials packaging and freight.
That said, we've made great progress through our pricing actions, where our Penang or pricing net of commodities was favorable versus the prior year as we have begun to recover some of the unfavorable inflationary cost impact we experienced last year.
This progress is reflected in our Q1 gross margin, which reached 23, 3% a sequential improvement of 150 basis points versus our fiscal fourth quarter.
We will continue to focus upon improving our financial performance through productivity gains in our supply chain and revenue growth management <unk>.
My sincere thanks to the entire team here at Lancaster colony for their tremendous efforts this quarter and their contributions to our improved financial performance I will now turn the call over to Tom Pigott, our CFO for his commentary on our first quarter results.
Thanks, Dave overall, the results for the quarter exceeded our expectations the company's strong top and bottom line results were driven by successfully implemented pricing actions that offset inflationary costs as well as improved fundamentals.
First quarter consolidated net sales increased by eight 5% to $425 5 million.
The growth was driven by pricing actions in both segments. The revenue growth was partially offset by the impact of the customer pull forward of shipments into our fiscal fourth quarter ended June 30.
If you'll recall customers increase their orders for deliveries near the end of our fourth quarter to ensure they had adequate inventory prior to our SAP implementation on July one.
We estimate this shift of shipments reduced our first quarter net sales by $25 million.
Decomposing, our eight 5% revenue growth 16, two percentage points were driven by pricing.
This growth was offset by the customer pull Florida volume, which reduced revenue growth by an estimated six four percentage points.
A modest volume mix decline that was in line with our expectations accounted for the balance.
The sales mix alone was favorable in both our retail and foodservice segments, driven by the exit of less profitable businesses and Skus.
Consolidated gross profit increased by $6 7 million or seven 2% to $99 1 million gross profit margin declined by 30 basis points.
The increase in gross profit dollars reflects favorable pricing net of commodities or Penang in both segments.
If you recall in Q1 of our fiscal 'twenty. Two we had negative Penang is we lagged the rapid run up in costs, particularly in our foodservice segment.
This quarter, we have begun to recover those losses, while our commodity inflation was approximately 25% this quarter, our pricing actions to offset this increase and the majority of the prior year shortfall, resulting in the improved performance.
Our financial results also reflect improved fundamentals in three areas first.
Both segments have eliminated lower profit business in Skus.
Second through improved planning scheduling and tactical execution, Platt hand, count was down for the quarter versus the prior year quarter.
Third inventory days on hand are down versus the prior year quarter and our mix of inventory is better aligned with demand trends.
These items, along with a more stable and predictable operating environment helped to improve gross profit and our cash flow performance.
And offset to these favorable drivers was the shift of revenue into our fiscal fourth quarter ahead of our ERP go live that I mentioned earlier, we estimate that the gross profit was unfavorably impacted by $5 million in the quarter driven by this revenue shift.
Selling general and administrative expenses declined 4% or $2 $1 million.
This decrease was primarily due to timing related changes in consumer spending.
Expenditures for project ascent, our ERP initiative totaled $9 $2 million in the current year quarter versus $9 4 million in the prior year quarter.
Consolidated operating income increased $8 8 million to $49 3 million due to the gross profit growth and the timing related to reduction in SG&A costs.
Our tax rate for the quarter was 23, 3% versus 24, 4% in the prior year quarter, we estimate our fiscal year tax rate.
To be 24%.
First quarter diluted earnings per share increased 25 to $1 36.
The increase was driven by the growth in our operating income and the lower tax rate.
Costs related project ascent reduced EPS by <unk> 26 per share this quarter and in the prior year quarter.
With regard to capital expenditures payments for property additions in the first quarter totaled $24 6 million.
For fiscal year 'twenty, three we're forecasting total capital expenditures of approximately $100 million.
This forecast includes approximately $50 million that remain for the completion of the horse cave expansion project.
In addition to investing in our business. We also returned funds to shareholders. Our quarterly cash dividend of <unk> 80 per share paid on September 30th represented a 7% increase from the prior year amount.
Amount.
Our enduring streak of annual dividend increases currently stands at 15 nine years.
Our financial position remains strong as we are debt free was $64 million of cash on the balance sheet.
So to wrap up my commentary, our first quarter results reflect revenue growth driven by pricing that offset significant commodity inflation. In addition, the company improved on some fundamentals and a more stable operating environment.
In the coming year will continue to address the inflationary cost with our revenue growth management program and maintain an ongoing focus on improving supply chain performance.
I will now turn it back over to Dave for his closing remarks. Thank you.
Thanks, Tom as we look ahead Lancaster colony will continue to leverage the combined strength of our team our operating strategy and our balance sheet and supported the three simple pillars of our growth plan.
To one accelerate core business growth.
To simplify our supply chain to reduce our cost and grow our margins and three to expand our core with focused M&A and strategic licensing.
In our fiscal second quarter, we expect retail sales will benefit from our expanding licensing program. While in foodservice. We anticipate continued volume growth from some of our <unk> customers cost inflation will remain a headwind to our financial results of previous pricing actions, along with our cost savings initiatives.
Helped to offset the increased cost.
I'd like to note our second quarter results will also reflect some startup cost as we begin producing product in our newly expanded section of our dressing and sauces facility in horse Cave, Kentucky later this month.
Finally, I'd like to provide you with a brief update on the implementation phase of our ERP initiative project ascent.
As we shared previously on July one we successfully implemented wave one of our ERP initiative I am pleased to share that in early October we successfully implemented wave two which added our sister Schubert's frozen dinner roll facility in horse Cave, Kentucky, and our margin Eddie dressing and sauce plant in Milpitas, California to our new ERP network.
Overall project continues to proceed in line with our plans and we look forward to continued progress as we add more plants and warehouses network throughout fiscal year 2023, I would like to extend my sincere. Thanks to all of our teammates for their ongoing efforts in this important strategic initiative.
This concludes our prepared remarks for today and we'd be happy to answer any questions that you might have.
Thank you.
Tom I would like to remind everyone in order to ask a question. Please press star one on your telephone keypad.
Today's first question comes from Brian Holland with Cowen <unk> Company. Please go ahead.
Yeah. Thanks, good morning, and congratulations on the stellar results.
If I could just start with a few boring modeling questions for Tom.
Maybe.
Dave mentioned.
The plant startup costs in Q2 can you give us a framework or quantify.
How much that should.
What that number would be.
We don't have a specific number.
For Q2 that we're going to give you, but it will be I would say a modest headwind on the results as we as we look at our outlook for Q2.
Okay, and then just thinking more broadly about.
Gross margin here, which I think came in a lot better than many folks were expecting myself included.
If we look out over the balance of the year you are going to be your gross margin in <unk> was certainly above where it is where it was in Q2 through Q4 last year. So aside from the startup costs.
Do you see pricing.
<unk> caught up to inflation.
Just help me think about over the balance of the year.
Why whether theres anything seasonal or transitory et cetera that would.
On your gross margin over the balance of the year from this if we're using 23 three of the base.
Yes, Okay, Brian So great question. So as you look at Q1 really we were we were.
Pleased with the results and quite frankly the execution.
On the supply chain side.
It really helped to offset some of the headwinds we had talked about.
From an overall standpoint as you look at Q1, our comp on an Penang was our easiest of the year. So.
So obviously as you recall last year, we were lagging the pricing impacts.
And we had a significantly negative <unk> impact. So then now as you look at the balance of the year.
Those comps get a little bit harder, but at the same time, we're going to have the benefit of.
Being able to drive improved supply chain performance throughout the year, So where we are.
We're obviously pleased with the results, but we're also cognizant that from a <unk> standpoint, Q1 was our easiest comp as we go forward David do you want to add anything.
To that yeah.
First of all good morning, Brian .
What I would add to that as Tom said, 100% right on Peacock and then in the back half what we're going to have is the benefit of being able to execute more of our supply chain productivity.
<unk> for example, with the horse cave facility, starting up we're going to be able to bring back in volume that's being co packed and made some other changes that I think are going to drive margin improvement.
Into the business. So the only other thing that sort of a structural headwind is the fact that when you look at inflation, we're continuing to see inflation on raw material and packaging and 20% to 20% range for the whole business. The dollar amount of that inflation is as high as it was last year, we're just not talking about it quite as much. So there will.
Sort of a structural headwind between that.
Pricing point, where we price for the dollars as Youre well aware of.
Thank you both for the color Tom real quick one on foodservice.
$30 million EBIT.
Is that a good run rate.
Moving forward for that business.
Yeah. So so.
Obviously, we are delighted with the performance of the foodservice segment and they benefited both from recovering the <unk> as well as managing out of some some less profitable business, which which allowed for that strong performance.
No.
As you go back in time, if you go back a few years foodservice was earning at a similar level to that $30 million I think if we go back to 2020 was around $27 million.
Operating income so now the outlook for foodservice I think in this environment is going to be interesting to monitor I think we're keenly focused on the volumes and the top line, which is a key enabler and I'll, let Dave talk a little bit about.
Some of the things we're looking at in terms of foodservice performance going forward, Yeah and.
Just coming back to Tom's point, there what I would point to is really just the EBIT EBIT margin and we feel like with the pricing actions that we've taken we've sort of Doug our way out of really what was a bit of a two year drag.
Drag on EBIT margins that we've been able to cover back against as.
As far as the EBIT dollars, we feel good about the outlook I think the only bigger question out there Brian is what's going to happen with the economy in terms of traffic right.
We talked about this together we spend a lot of time here watching the price of gasoline in particular very closely because we think it's highly correlated with discretionary income and consumers' ability to visit restaurants. So.
Only other.
Headwind that's outside of our control and we think it's likely to be a headwind as what happens on gas prices and what happens on the broader economy and if it softens. We think it's going to result in some diminution on foodservice.
I appreciate that Dave and Tom if I could sneak one more in.
Dave just looking at the.
The pullback in consumer promotion spend I guess in one queue I just wanted to make sure I understand.
The rationale behind that.
And just kind of thinking about the balance youre getting the pricing elasticities are hanging in there well costs are rising so.
It's a two part question.
What is your confidence that you can take more pricing if needed. We're hearing other food companies are doing that right now.
And two should we expect.
Albert.
On consumer promotion spend in the near term either just a response to elasticities or as an offset to the pricing that's coming through in our cost inflation.
Yeah, well, here's maybe how I would think about it if you would go down at the operating income line. There was a timing benefit that hit G&A associated with the reduction in our marketing, but thats strictly a timing benefit we expect to be back in spend against that right that that's a Q1 benefit that youre seeing in there.
We don't think its going to stick for the year.
And we were committed to continuing to support our brands with with relevant marketing now promotions like trade promotions, what I would tell you is were.
We are promoting maybe not necessarily back at the levels that we were pre pandemic, but where we are promoting we're taking our promoted price points. So.
As we're entering the important holiday season for particularly our baked businesses sister, Schubert and maybe to a lesser degree New York.
What youre going to see is our promoted price points are moving up in line with a lot of what youre seeing from the rest of our peers.
And Thats an area, where we're looking at our base price. We're looking at our promoted price. We're looking at the average price versus peers, and we're making sure. We're capturing margin wherever we can but we want to make sure that were remaining in the consideration set for the customers that we think are most important to our business.
Thanks, I appreciate the time as always I'll leave at that.
Thanks, Brian its Brian Thank you Brian .
Question for Sean Sean, Colorado, again with consumer Edge Research. Please go ahead.
Hey, guys good morning.
Hey, good morning Connor.
So as we think about margins throughout the throughout the year I think you guys quantified an expectation for about 30% of inflation in fiscal 'twenty three last quarter and so it sounds like that's really trending down towards about 20%, if I heard correctly and that would seem to imply a much more margin expansion versus where we were at last quarter I mean.
Is that fair.
No when we're looking at raw material and packaging, we've been pretty consistently saying that's in.
20, low twenties, but around 20.
The dollar amount would be higher of course now when you look at other inflation that's out there transportation warehousing labor things like that some of those are can kick versus prior year, not necessarily sequentially versus where they would have been.
A quarter ago, those are running higher but we're not seeing inflation in our business closer to the 30 in the aggregate.
Yes, I would just add that from a.
Some of it we're keenly focused on the commodity prices as you get into Q2, we're seeing higher inflationary impacts in eggs and wheat.
That that are going to impact that particular quarter, but overall things are trending in line with our expectations.
Maybe I'll just add country didn't ask the question, but it really gets back to we are seeing the inflation, how do we feel about our ability to price. Our view now is we feel like we have the inflation that we see in the business and for the immediate foreseeable future covered in our pricing that we have in place given the event, we continue to see things.
Run that Comstock and about eight Wheaton otherwise, we feel like there's room to go back to our customers and have more conversations about pricing.
Okay perfect guys that was really helpful.
And then just one more for me so on the data that we see it looks like sales growth at retail across the license portfolio really accelerated throughout the quarter for all brands on both price and volume despite lapping some really difficult compares.
I guess, what do you think really continues to draw consumers to your license portfolio versus maybe more cost efficient alternatives given the well documented pressure on the consumer.
I'll begin with the fact that they are consumer relevant brands and what we're finding is consumers really rather lesson they like to visit the restaurants, when they can but when they can't they enjoy eating the same source products at home. So I would begin.
With that and as far as the price comes down to value and what we're seeing I think we're at the early stages of a bifurcation of our consumers right, where if you sort of look at consumers in terms of those that are more affluent and nodes in the middle and those that are.
That are that are struggling where we're seeing volume fall off across all of our categories tends to be in the consumers that are struggling right now.
Elasticities are higher there and volumes falling out by and large these license brands beat a Buffalo Wild wings, Olive garden or Chipotle.
Tend to skew a little bit more affluent than other brands in our portfolio and.
And I think much more affluent than just brands in general in a grocery store.
I think that explains why even in the face of.
Of inflation Youre seeing them continue to grow and I would share with you that.
We really believe that in the case of let's say.
Chipotle sauce.
We've hit a great run rate on that business, we've launched a large size that's out in the marketplace now we're encouraged by the early results.
But it is in limited distribution, principally in Kroger and Walmart.
Most of our innovation is really going to start to hit in the back half.
The horse cave facilities online, we're going to be able to drive much more aggressively so.
Driving for National distribution on large size at Chick Fil, a national distribution on barbecue sauce for Chick Fil, a and their sweet and spicy sriracha, the olive garden Caesar, we're already in distribution on on <unk>, but we think theres more room to continue to price so but.
But back to your original question consumer relevant brands and I think consumers are still finding it to be of value even at.
The elevated price points.
Alright, great. Thanks, guys.
Thank you. Thank you.
And our next question comes from Andrew Wolf with C. L. King. Please go ahead.
Thank you and congratulations also on.
Trends.
Really strong obvious thank you Ed.
You're very welcome.
I just wanted some clarification kind of a follow up on yesterday.
Being down.
Both year over year and sequentially.
Yes.
Basically.
Granular you said it was only a little bit on the lower.
Spent.
Consumer spend so I'm trying to understand.
Is it more variable component in there that you know better.
<unk>.
There is some cost some of that.
So.
Yes, so the main driver was the.
Timing of.
The consumer spending we wanted to communicate that as timing because we are committed to investing in the consumer and feel good about that spend overall.
As you go forward.
The way to think about it as we've shared in the past.
Some of the cost.
Costs, the amortization of the software.
And the licensing costs will.
Have started to revert back to the base business as we've gone live on SAP.
And we've indicated that's about roughly 1 million to $2 million headwind this quarter less than it will be going forward. So the overall outlook for SG&A as a low single digit increase going forward as we restore the consumer spending and add add.
That.
That incremental cost on the SAP initiative I would say broadly on SG&A. We are keenly focused in terms of trying to manage that spend tightly in this environment.
There were some things that were favorable this particular quarter.
But overall our outlook is in that range.
Great. Thank you that's helpful.
So on the.
The amortization of SAP.
Looking at your Q it looks like it did not start yet, but it's going to be about $1 million to $2 million a quarter.
Starting in the second quarter go forward can I understand that right.
So so the way the way we report the SAP costs is in the <unk>.
In our Q, We report the project cost and then we break out the rest of our SG&A costs. So the project costs were about the same year over year what what.
What's not as transparent there is that we did absorb a little over $1 million of that.
What was sitting in the project cost last year into the base business because the.
SAP went live and so the base business, then had to absorb that million million $5 in the quarter and that is netted into our our SG&A costs, excluding the SAP.
Hopefully that makes sense for you if not we can follow up afterwards and take you through it.
Okay, but I guess for people, who may not have the benefit of following up.
If we exclude the project cost of nine point plus.
Plus million.
Should we.
Shall we take out or should we lowered adjusted EBITDA by $1 million or so so we don't double count or is that not no no.
I would include that include that because that's going to be an ongoing cost of the business.
Thanks for the follow up.
Just want to make sure that that.
Yes amortization becomes ongoing costs. So what you see in that project line is more the project related costs. So we're trying to split to say here's what here's what is going to be ongoing and then here's here's what's temporary and the reason we're doing that is because a lot of a lot of companies capitalize a lot of the SG&A related or that cost a lot of it.
Costs to implement SAP capitalize them on the balance sheet, because they customize it the way were implemented with a cloud based system.
The accounting guidance is that you have to expense. It. So we're trying to give investors a cut of what is the project related costs and then what is ongoing.
Great. Thanks, I also wanted to ask to shift to just the demand elasticity as by the two segments.
Kind of how they the volume declines versus pricing.
How they are trending versus internal expectations.
Particular, yeah.
So I'll take a shot at that and Tom can follow up afterwards, but I would tell you let's start with retail.
We're trending very much in line with our expectations. So the overall when you adjust for the pull forward in the discontinued items that we talked about volumes down about 7% or so and thats very much in line with first of all that's what you'd see in the scan data out there and thats very much in line with our expectations.
In the aggregate when you look at the puts and takes within the portfolio. So.
And this is we've been tracking it since we've seen inflation come on the horizon.
Andrew we have been pleasantly pleased with how it's hanging in there for us and don't really see any reason for that to change at least in the immediate term.
Now on the foodservice side, what we look at maybe the corollary is what's happening in terms of restaurant transactions, which is a proxy for our volume right. Historically, we didn't have much pricing. If you go back several years ago and the growth was really led by volume now we've moved into a season, where given the inflation.
Manufacturers like us surpassing on on pricing and concepts, they're pricing themselves. So sales are really kind of hard to look at and understand what's happening as you go all the way down to the consumer.
That being said if you look at transactions for the most recent period theyre down in the low to mid single digits. Overall, <unk> is doing a little bit better than that I would say in the aggregate they would be down in the low single digits and then you pull it apart one more layer in what you find is there are concepts that are continuing to drive <unk>.
<unk> growth Chick Fil, a among them Taco bell among them.
And some others and then what you see as the remainder of the ones that are probably down low to mid so given our mix of <unk> customers and then within <unk>. Our mix, we're continuing to see that hang in there for US now I would tell you that what I watch most closely is what's.
Happy with gas prices and if you go back and you look at the trends over the summer on gas prices gas prices rolled up.
March April May and then peaked in June we could see a downturn in transactions that almost correlated perfectly across every customer independent of their start point as gas prices Spike and then as gas prices, then receded and we saw traffic start to resume so what I would encourage you to try.
<unk> is what we're looking because we think it's the closest.
Proxy for this is whats happening on gas prices it gives us an understanding of.
The pressure consumers are feeling day in and day out.
But that's what we're watching.
Excellent. Thanks.
Quick follow up on them.
Actually on the on the head count reduction.
So.
It sounds like that was all within Cogs and within the production lines.
Not with the SG&A, Okay, Yes, yes, yes, and I'll give you just a little bit of texture on that if you remember a year ago we.
We ran a post pandemic recovery, where we saw a dramatic uptick in transactions back to transactions.
In <unk> our customers. They were up 60 70, 80% mid scale in casual dining were up 200, 300%. So the whole industry US included chase that volume we added head count we added shifts in order to service our customers.
And then what we found is that as the rest of the economy open back up the transaction volume started to normalize so as we look at a period against period comparison.
We and the rest of the industry swelled on head count and over time to keep up with that surge in demand and then we.
<unk> realized that it wasn't going to be long lasting it was going to normalize and we began to work that back down into something that we felt was appropriate but to Tom's point in the earlier comments there when you look at it period on period, we've made that adjustment we trim sales.
Just to make sure that we felt like we had the appropriate head count too much not too little to service the business sustainable.
Got it thank you for that.
All of those explanations I appreciate it I'll get back in the queue, let some others on the call.
Thank you thanks, Andrew.
Thank you and I'll turn it over for questions. We will now turn the call back to Mr. <unk> for his concluding comments.
Well, thank you everyone and it's been a pleasure to spend some time with you. This morning, and we look forward to getting together with you early in the next calendar year to share our Q2 results. So in the meantime stay safe and we hope that you have.
Very happy upcoming holiday season.
Thank you Sir.
Ladies and gentlemen. This concludes today's conference call. We thank you all for attending today's presentation. You may now disconnect your lines and have a wonderful day.
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