Q2 2023 Nu Skin Enterprises Inc Earnings Call
Okay.
Good day, ladies and gentlemen, thank you for standing by while companies and enterprises second quarter 2023 earnings conference call. At this time, all participants are in a listen only mode.
After the Speakers' presentation, there'll be a question and answer session.
Ask a question during the session you went to press Star one one on your telephone you will dungeon automatic message advising Yohan is reyes. Please.
Please note that today's conference maybe recorded I will now.
I'll hand, the conference I'll, let you speak of whole school today, Mr. Scott Pond, Vice President of Investor Relations. Please go ahead.
Thanks, Olivia and good afternoon, everyone stay on the call with me are Ryan appear ski President and CEO , Connie Payne, Chief Global growth Officer, and James Thomas CFO .
On today's call comments will be made that include some forward looking statements. These statements involve risks and uncertainties and actual results may differ materially from those discussed or anticipated. Please refer to today's earnings release, and our SEC filings for a complete discussion of these risks.
Also during the call certain financial numbers may be discussed that differ from comparable numbers obtained in our financial statements. We believe these non-GAAP numbers assist in comparing period to period results in a more consistent manner.
Please refer to our Investor website for any required reconciliation of non-GAAP numbers and with that I'll turn the call over to Brian . Thanks, Scott and Hello, everyone. Thanks for joining US today in Q2, we continued to advance key initiatives, enabling new vision 2025, our multiyear transformation to becoming the world's leading integrated beauty and wellness come.
That's powered by our dynamic affiliate opportunity platform.
While we remain confident in the direction and future outcome of our strategy. The persistence of macro headwinds has made the journey more challenging than expected, especially over the past several quarters. Nevertheless, we remain committed to our strategic direction and investing in the future through empowerment personalization, social commerce, and our digital ecosystem, while pivoting our.
Action plan based on near term needs in the business, which I'll speak to in just a moment.
Our second quarter revenue was $503 million, while earnings per share were <unk> 54 cents, both revenue and EPS were in line with our guidance and up on a sequential basis, mostly reflecting 8% year over year growth in mainland China, where momentum continues to build ahead of plan with ongoing economic uncertainties in the <unk>.
Market, we remain cautiously optimistic given the healthy growth of paid affiliates and sales leaders during the quarter, both encouraging signs leading to sustained second half growth.
Our growth in China was offside offset by general softness in other markets driven in large part by macro related pressures negatively impacting overall consumer sentiment and spending aggressive.
Strategic price increases over the past several quarters around the globe to combat margin pressures have taken their toll on customer acquisition, which has led to sluggish sales sales channel performance, most notably in developing markets, including Southeast Asia Asia Pacific Europe , and Africa, and Latin America, and the Americas, and South Korea, We law.
New products, including new color Lash, and brow serum as well as T Army, which performed below expectations due in large part to declines in our channel dynamics impacting paid affiliates and sales leader counts.
In the second half, we will be doubling down on efforts to stabilize consumer demand and regenerate growth and sales channel while continuing to focus on our long term new vision 2025 business transformation.
Let me briefly describe our plans for the remainder of the year.
We are in the final stages of preparation for the launch of the company's first holistic wellness beauty and beauty device age locked <unk> Io this device system, which helps users restore revitalize and recover their bodies will be introduced in several markets in Q3 and is expected to be rolled out in nearly all markets by the end of 2023.
Right.
Well <unk> will be our second connected device building upon what we've learned from the launch of our age locked Loomis by Io, which has generated more than 6 million connected treatments to date, helping us learn more about the needs of our customers wells by Io will be will be complemented with an enhanced interactive io experience.
And our Vera App that will coach users through their optimal journeys with.
With the introduction of this next device, we expect to make steady progress towards our annual goal of 15% of revenue coming from connected device systems on our way to the longer term target of 30% of revenue by 2025.
Second affiliate powered social Commerce, we're doubling down on our efforts to accelerate growth of our sales channel with the introduction of a new channel growth program and most of our markets called empower start.
This new program is focused upon motivating brand affiliates in their journey to becoming new brand representatives and sales leaders.
Empower start aligns with our empower me creator program introduced in Q2 to focus our channel development efforts on both early and developing leaders critical for regenerating growth in the channel. We anticipate that these two programs working together will bolster both affiliate and sales leaders in the second half and motivate customer app.
Acquisition.
Also please note as you look at our paid affiliate numbers, we have adjusted the eligibility requirements for.
For rewards and some markets to more narrowly focus on those affiliates who are actively building a consumer base. This adjustment will roll out in additional markets over the next several quarters.
Third our digital ecosystem, we continue to see solid adoption of our Vera and stellar apps, which are central to our initiatives around leveraging the power of a robust digital ecosystem by enabling us to drive to drive deeper connections with customers and affiliates.
We're well on our way to hitting our full year targets of monthly active users for both apps and will begin transitioning to focus on growing customer acquisition conversion and lifetime value through deeper connections.
Also in June we began the implementation of equinox, our new E Commerce Global platform in North America. This new platform significantly expands the transactional scale of our business as we lean further into social commerce. Despite some early growing pains migrating to a new platform will significantly expand our ability to create a more dynamic.
Customer experience, while enhancing operational efficiencies.
Now regarding our <unk> ecosystem, we're pleased to report 33% year over year growth in rise as manufacturing performed well in the quarter and booked orders remained strong through year's end.
<unk> continues to grow to become a larger part of our enterprise as we build out this synergistic ecosystem of capabilities that benefit our core business as well as enable our broader enterprise transformation.
We made two important investments for our future in the second quarter first as you saw from our previous release, we completed the acquisition of beauty buyout, and Omnichannel and clinically proven clean skin care and beauty device brand. The company's approach and mission are closely aligned with our core values and our enterprise strategy.
Beauty bio has unique device IP and hydration facial and micro needling technology bolt fast growing segments of the beauty device marketplace, which we anticipate leveraging.
For our core Nu skin business.
For beauty bio our unique expertise in devices manufacturing and technology will help this business relates to reach its potential as part of the rise ecosystem.
Beauty bio will continue to operate as an independent business as we seek synergistic opportunities to strengthen all businesses through rise.
Second we made further headway into the personalization space with a majority investment stake in life, DNA, a leading DNA assessment and recommendation technologies company.
We believe that personalization in the beauty wellness and lifestyle space will deepen overtime to the genetic level and that DNA will become an increasingly important source of information for our consumers to understand their personal care and wellness needs that can influence the quality and longevity of their lifespan.
While it's too early to discuss the application to our business. Our investment is indicative of our commitment to evolving our core nu skin business through personalization and when combined with developing technologies like AI. We believe it will help news can become a meaningful disruptor in the beauty wellness and lifestyle lifestyle space.
So to wrap it up the agility of our organization is a key strength as we adopt adapt our business and tactics to this more challenging environment, while the pillars of new vision 2025 have not changed understandably, we're adjusting time and cadence factors as needed. In addition, we are re emphasizing other critical aspects of the core business.
Including safeguarding the enterprise and optimizing profitability.
And we remain highly strategic in our approach to allocating capital and prioritizing investment decisions.
So with that let me turn the time over to James to take you through our financials in more detail James has a long history with the company having served as our Chief accounting officer for the past several years. He has had a strong background in the wellness space and has been instrumental in leading various elements of our strategic transformation and resource prioritization effort.
So James take it away.
Thank you Ryan and thanks for joining us today I look forward to working alongside this forward. This management team as we work toward achieving new vision 2025, and accelerating our core business, while we build out our extensive enterprise ecosystem strategy to generate long term value for our shareholders and all stakeholders.
Ill provide a brief Q2 financial review and then give initial Q3 guidance and speak to our full year 2023 projections for more information. Please visit our Investor Relations website.
For the second quarter, we generated revenue within our prior guidance range at $503 million with a larger than expected negative foreign currency impact of 3% or $16 4 million our reported earnings per share of <unk> 54.
Landed near the high end of our guidance range aided in part by our strict cost control measures. Our Q2 reported gross margin was 72, 9%, which was down 70 basis points versus the prior year period due to a rise manufacturing segment, making up a higher percentage of overall revenue.
This decline was partially offset by improving margins in the new skin core due to growth in China. In addition to improving margins in our <unk> manufacturing segment due to higher throughput to our expanding CPG customer base.
We are also pleased with the 60 basis point sequential improvement as we execute on project accelerate our cost optimization initiative, which focuses on driving margin improvement with margin accretive products and improved operational efficiencies gross margin for the core new skin business was 77.
2%, a sequential improvement of 80 basis points selling expense as a percentage of revenue was 37% 210 basis points lower due in large part to growth in our manufacturing segment, which now represents 9% of our total revenue and does not carry selling expense.
The lower selling expense can also be attributed to the sales compensation program in China as they operate under a different model for the core new skin business selling expense was 42%.
As part of our focus on operational efficiencies general and administrative expense was 137.0 million or 27, 4% compared to $141 6 million.
Or 25, 3% in the prior year period, our operating margin for the quarter was eight 5% compared to nine 2% in the prior year period. The other income expense line reflects a five.
$4 million expense compared to an $8 6 million expense in the prior year period.
During the quarter, we paid $19 5 million in dividends and did not repurchase any stock.
Considering the first half results.
Our stronger than expected U S dollar and recent acquisitions, let me now provide initial Q3 projections and updated 2023 annual guidance ranges for revenue and EPS for Q3 2023, we are projecting sequential improvement with revenue of 500 to 540 <unk>.
Including a negative foreign currency impact of 1% to 2%.
This projection reflects continued macro challenges in factors in modest impact from the introduction of our age lock well Spa Io system. Our Q3 EPS guidance is 54.
To <unk> 69, and assumes a projected Q3 tax rate of 18% to 28%.
For the full year 2023, we are projecting revenue of $2 <unk>.
To $2 8 billion.
Which includes a 2% to 3% unfavorable foreign currency impact we are anticipating.
Reported earnings per share of $2 15.
Two to $2 45.
Or $2 30 to $2 60.
Which excludes the first quarter restructuring charge of $9 $8 million, our guidance assumes an annual tax rate of 16% to 26%.
While the current macro environment remains uncertain impacting our near term projections, we continue to believe that the future opportunities to accelerate our business will expand as we as we invest in our key strategic imperatives supporting our enterprise growth strategy. We are committed to continuing our operational improvement journey and believe our.
A strong balance sheet and proven expense management discipline position us well for long term success and with that operator, we will now open the call for questions.
Thank you, ladies and gentlemen to ask a question you wanted to press star one on your telephone and wait for your name to be announced.
Please standby, while we compile the Q&A roster.
And our first question coming from the line of Jason.
<unk> with Citi. Your line is open.
Great. Thanks, operator first of all James Congrats on the call and congrats on the role looking forward to working with you more going forward I guess, maybe to start an UN your line can tag team. This one.
Can you maybe give us some additional color on the BD bio acquisition and the decision making process.
And it sounds like it was very attractive IP, driven but any more color on that would be great. And then if you could just help us understand the P&L impact of the acquisition what that should mean that the top and bottom line. Please.
Yes, sure Jason Thanks for being on the call asking the question I'll take the first part and James can speak to the second Yeah beauty bio is as you said we've.
For quite some time.
Have been leaning into device systems in the beauty space, we already have a strong complement of devices in our core business, but we're missing certain key areas of IP that we believe are critical to continue to lean into the world's leading device positioning that we have and so that certainly.
<unk> was a big part of that.
Business also the capabilities of the team the founder there and the owner of that business is very good they have strong omnichannel capabilities.
All we do see that business sitting in a separate and distinct from from new skin, while we look at synergies across the rise portfolio moving forward.
James maybe yes.
Thank you for the question so beauty bio.
Small, it's a smaller acquisition, but yet very important to the strategic direction of our future with our enterprise strategy and so the impacts on the back half of the year are relatively pretty small.
You can get more information on that as you as you look at the.
Disclosures around the acquisition.
The uplift in revenue is around $10 million to $15 million in the back half and.
There is a slight increase to our G&A pressure in the back half of the year.
Got it thanks, and then just on China, It's nice to see the constant currency sales inflection.
The trend in the affiliate account you, obviously got there sooner than expected and understanding the comps are pretty easy can you give us some perspective on what drove that upside and at this point.
Your view that the China business had trough and that we should see year over year constant currency sales.
Growth in the remainder of the year.
Yeah, I'll comment on it and then I'll have Connie also.
Provide her perspective as well as she works directly with the team there yeah as I mentioned, we remain cautiously optimistic in that market more from the macro perspective, we all read the reports coming out of China, and we understand the economic uncertainties in that market our businesses is generally.
Seeing good recovery in those critical Kpis at the channel level as you mentioned and affiliates.
And brand reps or sales representatives over there we use a different model in China and so that's that's that's good I think the from from the product side as well, we're seeing good uptake on that on a new product line <unk>, they're in and so we're optimistic Connie what would you add to that I would add that certainly we are cautious.
As the country and our sales leaders.
To be more active have the opportunity in certain cases, they are able to engage with customers much more closely than they have been over the past year and a half two years of course, we saw some nice uplift and certainly.
Certainly sequentially in the affiliate count growth and solid sales later as well, which gives US also a strong indicator and some confidence as the onboarding of a new product launch.
To take all of them and we're looking forward to that continuing.
Got it. Thank you for that and then maybe one more for you.
<unk>.
For the guidance for full year 2003, I mean for <unk> related to the midpoint of your constant currency constant currency sales guide, but if my math is right. It looks like Youre actually taking down the implied <unk> guide by about 4% I know you mentioned just general caution caution on the macros, but is there anything else.
That's driving that is it conservatism or is there something more to that.
Yes, I think our main factors is just just evaluating the first half results and the way the markets and regions have come in the other major factor in that is.
Foreign currency.
When we look at it the way, it's rolling through compared to our original guidance as we go through when we look at currencies like the yen. The dollar has actually remained stronger than what our initial projections were so we ran that through the model through the back half of the year and that is another large part of that adjustment down.
Got it thanks, so much guys I'll pause there.
Jason Sorry, one other comment just on your first question before we move on on the beauty Biocide, because I don't think I adequately maybe represented some of the elements on that strategically.
You all know for a long time Nu skin has really been.
Beauty and wellness company.
On a core business basis, our product categories, and the like and and I think over time, what we've learned through just the industry overall beauty and wellness industry looking at that we see we see our business as being highly undervalued for the products and the offering that we have and I think there's a lot we can and need to learn it in.
Rise level from a total shareholder return perspective on how we better position ourselves for the products and the brands, we represent as opposed to the channel through which those products are distributed and so there's just a lot to learn from these these.
Whether you call them indie beauty or fashion beauty brands.
That I believe will benefit shareholders long term and benefit our core business as we learn how to better represent ourselves for those products and the innovations that we have.
It's just a critical part of our transformational journey. So that's all I'd add to that piece.
Yes.
Got it thanks, so much for that color.
Thanks, Jason.
Thank you and our next question coming from the line of Blake Anderson with Jefferies. Your line is open.
Hi, guys I appreciate the time just wanted to ask on the guidance a follow up question on that I think you mentioned you expect to show a return to growth in Q4, just wondering if you could kind of rank. The main factors that gave you that confidence. Thank you.
Yes, sure Blake just a couple of thoughts and James can come back in as well on this but certainly as we continue to look it at.
The China activities in the trends there, we're feeling optimistic that that will continue and then I think with wells <unk> Io.
This is a major category disrupting product.
For us it will be our first wellness and beauty products. So it's a body product that.
A lot of our Asia businesses are very nutrition focused the TR 90 brands very strong there and we just see this as an opportunity to kind of bridge the worlds of devices and Iot connected devices and bring those more and more into our Asia businesses as well. So those are the two key factors for sustaining.
Our return to growth.
Guide anything James Yes, the only other thing that I would add to that is just as we go through when we look at the revenue mix between our different.
Revenue generating segments that shift has come in different ways. So China.
As a big part of that in the back half and then coupled with the product launches.
We see the back half of the year going through with sequential improvements from Q3, and then progressively into Q4.
Let me add one more thing if the economy I believe this new program that we have yes.
Literally today, the in Paris stock program as very nicely to generating momentum in energy.
To motivate and to help our current sales leader.
Attract new affiliates in cable channel and.
With these very strong unique innovative launch of Rafael we really have a nice lineup.
To allow for new customer acquisition customer retention as well.
Further along in affiliate successful journey.
Yes.
That's really helpful.
And then just wanted to ask on the.
Beauty bio acquisition I think you mentioned.
The revenue number of $10 million to $15 million in the second half and then some slight G&A pressure.
Can you talk at all about maybe accretion expectations or just broader synergy impacts any way to kind of size that up over the next 12 months or so.
Yes.
James can speak to the technical accounting, that's not my expertise.
From a from a synergies perspective.
From a rise point of view, we clearly have opportunities in manufacturing and scaling some of our services.
As well across and so I do think there are accretive opportunities there our main focus with with that business is to sustain growth moving forward as they continue to grow throughout the U S market in and ensuring that we're providing support and services to enable that while again we.
We utilize some of their IP capabilities to help us on the core business to continue to grow our.
Dominant leadership position there in beauty device systems brands, but James anything else you'd say, yeah, I would just say I would just say.
Again look at our disclosures in the 10-Q, it because they have a more detail as to the pro forma statements of what.
What the company is from a number perspective, and then the purchase accounting on the acquisition is the drag that youll see come through in G&A, but with the way we look at beauty by on the way we position that how we how the <unk> core.
Benefits from that IP and technology, we see some some uplift through through that going forward.
Throughout the next several years.
Got it and then last one from US I think you mentioned.
Some of the impacts in the international markets from price increases I was wondering if you could talk a little bit more about the U S consumer.
Any kind of change in how.
They are behaving in the last few months.
Yes, the U S has been a really interesting business.
For all of US as we watch the economic reports coming out from the government et cetera.
Generally what we're finding with ours is there are trade off decisions that are being made some industries continue to do really well around experiential economy, and even kind of basic CPG type of activities.
The broader consumer products.
We've found that there are some trade off decisions that we're seeing in our higher end products here and I do think Thats a leveling.
In fact in the sense that I don't see this as a long term issue I just think it's an adjustment as consumers and households are balancing discretionary spend.
But yes.
Yes, it's a real question Mark.
For US is as we all try to watch and observe the economy and what's going on there.
Okay.
Very helpful. Thank you for all the help.
Thanks Blake.
Thank you and our next question coming from the line of Mark Astrachan with Stifel. Your line is now open.
Hi, This is Chris on for Mark Astrachan.
Hey, Chris.
So just kind of more broadly on the <unk>.
<unk> bio acquisition.
So basically what does what's new skin kind of getting from the acquisition and is it basically the technology <unk> developed.
Developed it more internally.
And.
Basically.
What could.
<unk> done that on its own versus what <unk> can do.
Yes, I think yes, Chris good question.
I think we always look at kind of build by borrower type of value valuations as we look to different things.
And again I want to be clear that this beauty bio brand as an exciting omnichannel brand. It's one that I think is cut from similar cloth to us from a product philosophy clean beauty.
Very modern approach to kind of their go to market. So there's a lot there's a lot of value in that business. There when I talk about the technology and the IP, specifically when you really get into patents and holdings in micro needling and hydration facial those are two really burgeoning growing.
Product categories.
Certainly with the right R&D and work around there theres ways to approach those markets, but when we see a great company with a great approach that can get us there faster and into markets that we believe will benefit not only not only beauty bile, but our new skin core as well as we continue to expand that device CIS.
<unk> platform hydration facial and micro needling, our two big opportunities. We also continue to see per the last question consumer tradeoffs in consumer spending and the more that we can provide in home services like hydration facial or micro needling that typically has been more of an effort that tissue.
<unk> service model.
As a business, we know really well with products like galvanic spa.
And frankly, even whilst bio thats coming out so we just see this as a complementary approach to us moving faster and faster into this device and connected device world and I think on their side again, they get access to manufacturing to services and.
Knowhow that they don't have as a smaller brand.
Growing so I think we see it as synergistic in a faster way to get to where we need to go.
Thank you.
Our next question in queue coming from the line of.
Bonnie <unk> with D. A Davidson your line is open.
Yes Hello.
I apologize I missed your introductory statements but.
<unk> bio acquisition can you just.
Tell me is it is it also a direct seller or how do they distribute their product currently.
And then are you going to just integrate the brand and product.
Your direct selling in the sales force will be able to sell the product is that the plan here.
Hi, Linda Yes, no worries you can read the transcripts as well so I appreciate you joining yes.
Yes, no I think for beauty buyout. They are not a direct sales company. They really started out in TV shopping 11, or 12 years ago, there really <unk>.
Very very rapidly expanding at the omni channel space. So so strong in Ulta sephora as well as a lot of department stores.
And in fact to have a full footprint and also which is a pretty remarkable thing for a young beauty brand to get into.
And so that's kind of how they how they work today no. We as we said beauty buyer will continue to operate independently.
We'll look at their IP and we'll look at opportunities to incorporate some of that that technology.
Into our into our new skin business, but we don't we don't plan to integrate those two.
At this point in time, although there are some synergistic value adds that each business will have in.
Independently.
Okay.
Okay and related to that I'm just curious.
You thought.
With I follow Theyre actually making some acquisitions.
They want to explore other channels. So they are buying like products that are.
So within other channels like regular retail and they're keeping them separate so is that why youre doing I mean are you kind of doing a learning experience here with experimenting in the in those beauty channels and is that kind of part of why Youre doing this acquisition.
Yeah.
It's no it's more so we've spoken and I'm going back in time, it's probably something we should speak more to it our future investor day around.
Our overall enterprise strategy as we look forward into the future.
We have been moving down this path to building, our integrated beauty and wellness platform and over time, we see new skin enterprises in our rides business, becoming more and more of what do we call referred to as an ecosystem of beauty wellness and lifestyle ecosystem of brands and companies that synergistically providing.
<unk> solutions to market that help people in their beauty wellness and lifestyle needs and so for us.
I guess, you can call it explorations, but it's more around aiming towards an enterprise ecosystem strategy that serves the beauty wellness and lifestyle.
Industries and so we are certainly eager to learn from our partner companies and the various investments we've made over the past five or six or seven years.
As we lean into that broader vision.
Of building out this beauty wellness and lifestyle ecosystem.
But it is part of our longer term strategy that we probably need to dive into board a future investor day.
Okay, and then I was just wondering.
Can you remind me I thought that.
Dr.
Yeah.
The personal lines Rosa was opposed to launch.
And maybe North America sometime in 2023 is that launch occurred yet.
Yes, so no it has not yet youre in youre spot on so theres a TR 90 brand that was introduced several years ago and then the <unk>, which is the customized version is just beginning to roll out market by market. I think Q4 of last year went into Taiwan, or so Korea in Q1.
And then China Q2, with a formal launch going into Q3.
Market by market, it's rolling out with the with the U S market as we continue to observe the weight management sector. It is a pretty cloudy space as as you know for the companies you follow and I think I think it's still yet to be said exactly how we bring this customization or personalization and weight management.
System to be truly differentiated here. So we're really leaning in and learning in Asia, where this where this business is really quite unique.
There are.
Many of the companies that are here in a more crowded market in the U S aren't arent there and so we're kind of exploring there and learning and understanding how personalization fits with the bigger strategy, but.
While we continue to observe what's going on here, we do anticipate it coming here, but we need to do it at the right time.
So I'm just curious because I thought I, followed that weight loss space and of course, there's been so much publicity over those DLP one drugs.
Are those growing probably is that kind of whats, making you rethink that that launch.
Little bit.
Yes, I think it's fair.
The other businesses that we follow as well, it's just a very big question Mark of how thats going to float out and traditionally our approach has not been through pharmaceuticals.
Not really R.
Our approach, we really kind of look at more of the nutraceutical approach or nutritional approach and healthy lifestyle management. So we are observing it.
From our product philosophy of all of the good none of the bad how.
How we lean into that we just need to observe longer. Meanwhile, we continue to lean into it in Asia, where I think our product value approach in nutrition and healthy lifestyle approach fits our or our direction better and I think works in Asia quite well.
So we will continue to observe for a little while longer.
Yes.
Or like a tablet products.
Yes, it's actually it's a series of different products. So we have we have powders, we have supplements and it's a customer a customizable set of products that can be assembled per the customers' needs.
Help through an app or an assessment offering that helps them to get to the right product for their needs.
Okay. Thank you very much.
Thanks Linda.
Okay. I think we are through all of the questions I just wanted to do to close.
By saying, thank you to all of you that were able to attend and asking questions.
As we as I mentioned previously that we're in a very continuously interesting time as we continue to work towards our transformation and new vision 2025, and building out our broader beauty wellness and lifestyle ecosystem, we continue to make strategic moves in that direction, while pivoting in the near term.
To ensure that we're addressing the factors that we face today.
And we'll continue to keep you well abreast of those decisions and those pivots.
You are familiar with our plants. So thanks for joining we look forward to chatting with you again next quarter.
Bye.
Ladies and gentlemen that does conclude conference for today. Thank you for your participation you may now disconnect.
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