Q2 2023 AKA Brands Holding Corp Earnings Call
Greetings and welcome to <unk> Holdings Corp, second quarter 2023 earnings Conference call. At this time all participants are in a listen only mode. A brief question and answer session will follow the formal presentation.
Anyone should require operator assistance during the conference. Please press star zero on your telephone keypad. As a reminder, this conference is being recorded it is now my pleasure to introduce your host Emily Schwartz head of Investor Relations and corporate communications. Thank you Ms. Schwartz you may begin.
Good afternoon. Thank you for joining AKG brands second quarter 2023 conference call to discuss the results released this afternoon, which can be found on our website at IR Dot AK, Josh Brian Dot Com with me on the call today is John <unk> interim Chief Executive Officer, and Chief Financial Officer.
Before we get started I'd like to remind you of the Companys Safe Harbor language management may make forward looking statements, which refer to expectations projections and other characterizations of future events, including guidance and underlying assumptions.
Forward looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressed for further discussion of risks related to our business. Please see our filings with the SEC. Please note we assume no obligation to update any such forward looking statements.
Call will contain non-GAAP financial measures, such as adjusted EBITDA and adjusted EBITA margin.
Reconciliations of these non-GAAP measures to the most comparable GAAP measures are included in our earnings release furnished to the SEC and available on our website with that I'll turn the call over to Kieran.
Thanks, Emily good afternoon, everyone and thanks for joining our call to discuss the second quarter.
We continue to execute against our strategic initiatives and have made significant improvements in our operating efficiencies, which enabled us to deliver on our EBITDA and cash flow expectations for the quarter.
We also continued to strengthen our balance sheet by way of strategically, reducing our inventory and paying down our debt.
And importantly, we are increasing our addressable market, particularly in the U S by introducing our brand to new customers through our direct to consumer and omni channel initiatives.
Net sales for the second quarter were $136 million.
<unk> delivered 80 million of net sales, which was in line with our expectations and represented a 12% increase on a two year basis.
The U S continues to be our largest and most robust region and we remain keenly focused on expanding our brand presence and increasing awareness in this market.
We are very pleased with the ongoing progress.
The in line performance in the U S was dampened by continued macro pressures and consumer challenges that we're facing in the Australia region.
In addition to the macro environment, we have identified opportunities that we are aggressively addressing which I will provide further color on in a few minutes.
Despite the softer than anticipated net sales in Australia. There are a lot of green shoots and highlights to take away from the quarter.
I am very pleased that we delivered $5 6 million of adjusted EBITDA and 10 million in operating cash flow in line with expectations.
Importantly, despite our net sales declined from the second quarter last year, we were able to deliver the same level of EBITDA, which is a testament to the discipline and incredible work. The teams have done to build structural efficiencies across our operating model while controlling expenses.
As I mentioned, we continued to strategically reduce our inventory, which is down 26% year over year and down 16% from the year end of 2022.
We also further reduced our debt with a $12 5 million payment in the second quarter or 16% reduction from the end of 2022.
And we're incredibly pleased with our omni channel initiatives, that's really attracting new customers and creating buzz around our brands, particularly in the U S.
As we move through the back half of the year, we have three key priorities.
First we will continue to chase demand and build brand awareness through increasing fashion newness.
Attracting new customers through our next generation marketing tactics and expanding our omni channel initiatives.
Second we will continue to improve our operations by driving greater efficiencies and bringing inventory down further.
And third we will continue to strengthen our balance sheet by paying down additional debt through the remainder of the year.
I'm very proud of the team's focus and execution across our initiatives.
And I want to thank them for their continued commitment and drive.
No I'll share a few highlights from our brands and then I will walk you through the financials.
Starting with our women's brands Princess Polly remains our largest brands and continues to appeal to customers with on trend fashion and next generation marketing Activations.
As mentioned last quarter, we are refining your marketing spend and increasing fashion newness across our brands.
These efforts are aimed at both attracting new customers and fostering loyalty among existing customers.
Given the fast and efficient test and reorder merchandising approach.
This is partly released 100 new starts per week in the second quarter.
And so a very strong sell through rates, particularly in dresses.
They launched their Princess Polly branded merchandize in the beginning of the year, which supports strong brand affinity and loyalty.
Based on the success and positive customer reception, they will be expanding this collection and where they are at least 20, new logo branded stores in the back half of the year.
On the marketing front as we approach the fall Princess Polly is targeted at merchandise drops and marketing events to coincide with key moments for their customers back.
Back to school sorority rush and homecoming.
Based on the success of the spring break and summer Jeep tours, they're launching a Jeep tour and college campuses across California to meet customers face to face and build relationships.
As next generation marketing experts Princess Polly remains laser focused on reaching their customers across multiple platforms.
And they continue to grow their tick tock presence and fine tuned the efficiency.
Based on successful community engagement customer contexts on tick tock, and refreshed organic and paid strategies they increase their reach and kicked off used by over 300% sequentially compared to the first quarter.
Equally as exciting as prints as part of these direct to consumer initiatives is the success of their omni channel initiatives.
I'm excited to announce the Princess Polly impacts on have expanded their wholesale relationship and beginning tomorrow Princess Polly will go live in 100 packs on stores across the U S up from 15 stores in the initial test.
The early success with the patent partnership gives us great confidence in princes colleagues ability to expand its market reach and significantly grow the business over time in both the U S and internationally.
We're also looking forward to the opening of Princess parties first store in the century City mall in Los Angeles next month.
As a reminder, we believe dislocation is the perfect strategic fit for Princess parties for a store given the high volume of Gen Z and millennial shoppers in the open air malls daily.
We continue to evaluate more retail locations for Princess Polly and will use the learnings from our century city store to develop our plans for future stores.
Pedal and pulp is also making impressive progress on both their direct to consumer initiatives and their omnichannel tests.
They launched 26% more new stores in the second quarter versus the first quarter and continued to see strong sell through in their newness.
Similar to Princess Polly and additional to their social media and brand marketing pedal and pulp is also using events and sponsorships to reach new and existing customers.
They hosted five in person events in the second quarter, engaging both influencers and customers and building broader awareness.
Building, a large scale activation at the country Music Awards Festival in Nashville in June .
We're also excited that as peddling pulp continues to gain traction in the U S. They are launching their first influence a capsule collection designed and curated by Nida Evans, our popular U S based content creator in August .
Patrick <unk> Omnichannel initiatives are also exceeding our expectations.
As announced last quarter. The brand is currently live in performing well on target marketplace, demonstrating the demand for personal health is strong.
We continue to pursue opportunities to attract new customers to the brand.
Boost awareness through marketplaces, and select wholesale engagements.
We're very encouraged by patent impulse initial success with marketplaces, and we're leveraging the learnings to inform marketplace tests across the other brands in our portfolio.
Shifting to our street wear brands, we remain pleased with the momentum the culture Kings is gaining in the U S where it continues to disrupt the U S Street wear industry.
The Las Vegas store is performing ahead of our expectations.
And we are equally pleased with the positive impact it has had on our online sales.
<unk> embodies the collision of music fashion and culture and they bring this to life in the U S through unique marketing activations partnerships and their signature retail tailwind ethos in stores.
The second quarter is a great Testament to the power of the coach King's brand beyond just the in store events at.
As momentum builds closer kings began marching across the U S with their first partnership beyond the West coast with the lyric eliminate summer smashed music festival in Chicago in June .
As sponsors of an official stage, the curated exclusive merchandise and collection and the iconic culture Kings basketball court activation further enhancing their impact and presence at the event.
Additionally, based on the success of the Rolling loud sponsorship in L. A earlier in the year. They expanded the partnership and we're named the official Street wear brand for the Rolling Loud Music Festival in Miami in July .
Kochi King sponsored a branded stage and full size basketball court, which was open to the more than 250000 festival goers over the event.
The brand also designed an exclusive rolling low capsule collection, which was available to shop at a pop up store in festival grounds and on the <unk> Web site.
In the second quarter <unk> also deepened their sports partnerships and further their collaboration with UFC.
Cause you can showcase that showcased and what the top selling booths at UFC X a fully immersive UFC fan experience in Las Vegas during internationally fight week in June .
The merchandise sold out in a few hours and the team quickly leveraged our in house design and Princess and the XE to printing overnight more inventory showcasing both the incredible demand for <unk> as well as the brand's flexibility and speed to chase and replenish in under 24 hours.
The Las Vegas flagship is an incredible marketing machine, where the Brian can host exciting one of the kind of events and activations.
In the second quarter popular mixed martial arts Figurs, Charles OLED era, and keep you aware of how does the most attended in store events to date, featuring a 22 foot MMA fight cage with over a thousand fans showing up for the in store events.
Additionally, as <unk> deepens its relationship in sports in the U S. They collaborated with new era and WNBA stars.
Our weaker all gung boiler.
Dijon Asia Carrington, who hosted alive shopping in Q&A event in the store doing all star weekend.
On the print and licensing side culture <unk> extended its collaboration with Greenville, with an exclusive collaboration and an in store event with JD and.
In hip hop duo Earth Guy.
And we're excited for the upcoming licensed merchandise for labs with fan favorites, and 19th survival Pokemon and Looney tunes.
We remain pleased with the performance of <unk> in house brands, which come at higher gross margins, including minimal which remains a top 10, Brian the coach King's online and in store.
We also continue to be encouraged that <unk> is bringing new customers to minimal and integrating minimal products into culture Kings marketing activations.
In the second quarter minimal launched our gifting strategy for the WNBA.
And Las Vegas player I used to Shepherd received the WNBA Championship ring in full amendment outfit.
Over 20, WNBA players have been spotted the worrying minimal across social media.
Before I provide more detail on the P&L I want to give you more color on our three regions.
As I mentioned the U S continues to be our strongest region and will be the most significant driver of growth.
In the first half of the year the U S accounted for 59% of total revenues up from 52% from the comparable period last year and the region continues to be an increasingly more important part of our portfolio growth and profitability.
Second quarter net sales in the U S were $80 million, which was down 3% compared to last year, but up 12% on a two year stack.
Beginning this quarter and going forward, we are slightly adjusting our financial reporting structure to include New Zealand, India, Australia region, given the proximity and interconnectedness of the two countries.
You can now find historical financial information for the updated region in our filing.
In the Australia region.
Net sales for the second quarter were $48 million down, 28% compared to last year and down 24% on a constant currency basis.
In the first half of the year, the Australia region accounted for 35% of total company revenues down from 42% in the first half of 2022.
Similar to the U S. The Australia consumer has been challenged post pandemic. However, the environment. There has remained more challenging than we anticipated.
They've had 12 interest rate increases over the last 12 months.
Which is particularly impactful as the majority of the country have variable rate mortgages, leading to increased consumer pressure as we've gone through 2023.
In addition to the macro challenges we have also identified areas areas of opportunities across our brands in the region.
Our teams are keenly aligned with our philosophy to manage inventories below our forward demand expectations.
We are building further operational efficiencies and we're honing in on demand creation initiatives.
We have completed a holistic skus streamline initiatives to focus on faster selling skus, which.
Which will improve overall operating effectiveness and low for stronger pressure merchandise season after season.
Importantly, <unk> is also adding productive third party footwear brands, such as Solomon and Clarks.
While we feel good about the quality and quantity of our women's brands inventory as we head into there.
Long spring and summer seasons, we're also evaluating partnerships with select off price retailers in Australia to move through aged inventory faster, while remaining focus on our newness and overall profitability.
While we anticipate that the consumer will remain challenged for the remainder of 2023 and into 2024, we're confident that these actions will benefit the Australia region over the longer term.
While enabling us to manage the business appropriately and the current demand environment.
The rest of the world delivered $8 million in net sales, which was down 12% from the second quarter in the prior year.
As our focus is on the U S and the short term our strategic decision to shift marketing dollars from the UK and Europe in the third quarter of last year continues to impact trends in these regions.
Now I will give you more detail on the P&L before taking your questions.
For the second quarter net sales were 136 million a decline of 14% compared to the second quarter last year on.
On a constant currency basis, net sales were down 11% compared to last year.
Total orders for the second quarter were $1 7 million or flat on a two year stack and down 11% to last year.
Order volume was impacted by overall lower demand in the Australia region and lower conversion across regions.
As we ramped up marketing efforts and the flow of newness normalized we saw improvements in traffic. However conversion rates continued to lag prior year trends as customers remain somewhat more selective in their purchasing behavior.
We serve $3 6 million active customers on a trailing 12 months basis, which is flat sequentially to the first quarter of 2023.
Average order value of $82 decreased 4% compared to the second quarter last year on a reported basis and was flat in constant currency.
Our return rate for the second quarter was 25%, which remains one of the lowest among our peers.
Moving to profitability.
Gross margin in the second quarter was 56, 9% compared to 55, 2% in the same period last year.
170 basis points.
Above our expectations of roughly flat to last year.
This gross margin upside was driven by improved full price sell through GCB increased newness, particularly in the U S and lower freight expenses.
The teams have been hard at work improving our operational efficiencies over the last 12 months and I'm very pleased with the incredible progress we've made.
Selling expenses declined 21% to $36 million compared to $45 million in the second quarter of 2022.
Selling expenses were 26, 4% of net sales and leveraged 220 basis points compared to the second quarter last year.
I'm really proud of the incredible work the team has done on shipping carrier optimization, finding labor efficiencies and improving our costs throughout the supply chain.
Marketing expenses in the quarter were $80 4 million compared to $19 1 million in the second quarter of 2022.
On a rate basis marketing expenses were 13, 5% of net sales compared to 12% of net sales in the second quarter of 2022, driven by lower effectiveness in the Australia region.
Throughout the second quarter, we continued to ramp up our marketing investments in line with the increased newness in the assortment to drive topline improvements across brands.
General and administrative expenses declined by 6% to $24 2 million and this compared to $25 7 million in the second quarter of 2022.
On a rate basis G&A expenses were 17, 8% of net sales compared to 16, 2% of net sales in the second quarter of 2022.
The change in rate basis was primarily driven by lower sales volume compared to the prior year.
It is important to note that our expense base is largely fixed and improvements in sales will require nominal incremental G&A expenses supporting opportunities to leverage this line in the future.
Adjusted EBITDA was $5 6 million in line with our guidance, despite slightly lower than expected net sales.
This compares to $5 9 million in the second quarter last year.
Adjusted EBITDA margin for the second quarter of 2023 expanded the four 1% compared to three 7% in the same period last year.
Net loss was $5 million or <unk> <unk> per share in the second quarter of 2023 compared to net loss of $4 2 million or <unk> <unk> per share in the same period last year.
Turning to the balance sheet.
I want to reiterate that strengthening our balance sheet is a top priority for us and I'm very proud of the actions. We took over the last few quarters to lower debt levels and improve inventory levels and working capital.
We ended the quarter with $26 million in cash and cash equivalents and $120 million in debt.
At the end of the second quarter, we had total liquidity of approximately $57 million.
In the quarter, we continued to make additional debt repayments, bringing our total debt pay down to $24 million year to date.
Additionally in June our board of directors authorized a share repurchase program to repurchase up to $2 million of shares of the company's common stock.
In the second quarter, we repurchased 673000 shares for a total cost of approximately $300000.
As mentioned I'm really pleased with our inventory levels, which at the end of the quarter totaled $106 million.
Compared to $144 million at the end of the second quarter of 2022.
Total inventory dollars were down 26% and units were down 22% compared to last year.
We feel confident in the overall composition newness and quality of our inventory and expect to see continued decline in inventory dollars and units in fiscal 2023 on a constant currency basis.
Going forward, we expect to run the business with inventory growth below sales growth and I am encouraged that we returned to this dynamic in the quarter.
Along with maintaining a healthy balance sheet generating strong cash flows is another key priority for us.
In the second quarter, we generated $10 3 million of operating cash, which compared to cash used of $8 7 million in the second quarter of 2022.
This $19 million year over year increase in operating cash flow was primarily driven by a positive EBITDA and inventory improvements.
In the quarter, we generated free cash flow of $8 5 million.
As we look at the remainder of 2023 and beyond we're excited by our brands strategic initiatives and the channel expansion opportunities to drive heightened brand awareness.
However, based on the trends, we're seeing with the consumer <unk>.
Primarily the continued pressure on the consumer in the Australia region, we're lowering our back half expectations to reflect the current environment.
We note expect to deliver between 555 and.
$565 million in net sales and between 'twenty, one and $25 million of the EBITDA for the year.
For the third quarter, we expect to deliver net sales of between 138 and $143 million and.
And adjusted EBITDA in the range of $6 million to $8 million.
To give more color on the middle of the P&L, we expect gross margin selling expenses and marketing rates in the third quarter to be similar to the rates in the second quarter of this year.
Before I take your questions.
I want to let you know that Jim continues to work through her medical issues, but she is doing well and appreciates everyones regards.
Our priorities for the remainder of the year are clear.
We are creating demand opportunities and reaching new customers through our direct to consumer growth initiatives in omnichannel expansion plans.
We are diligently focused on improving and finding even more operating efficiencies by reducing our inventory and managing our expenses.
And we're taking the necessary steps to strengthen our balance sheet and pay down even more debt.
We remain confident in the future of our brands and the long term potential and are committed to driving shareholder value through delivering both growth and profit.
Now, we'll open it up for questions.
Thank you.
We will now be conducting a question and answer session.
I would like to ask a question. Please press star one on your telephone keypad.
I'll mention tone will indicate your line is in the question queue.
You May press Star two if you would like to remove your questions from the queue for participants using speaker equipment.
Necessary to pick up your handset before pressing the star keys, one moment. Please find we poll for questions.
Last question comes from the line of Oliver Chen with Cowen. Please go ahead.
Hi, Karen Thanks, a lot regarding inventory how would you contrast, the inventory relative to sales or do you think about Australia versus the U S.
As we think about the Australia as well.
Factors could be within your control it sounds like it's a dynamic caution.
Ironman.
And then second question on on the gross margins you had copper for cross selling.
Although we're in a pretty mixed consumer environment.
Could you elaborate on how you achieve that and what does the guidance assume going forward in terms of full price selling and promotion.
Thanks, Karen.
Thanks, Oliver Yes, I think it's it's really good to see the progress we've made on inventory. It was certainly something we've been very focused on were down $37 million since since Q2 last year and I think look that's going to be a continued focus for us as we go through the back half of the.
We do want to see inventory come down sequentially.
As we think about the composition of the inventory I think overall, we feel good about it we feel good about the quantity of the inventory that we have I think in Australia I think.
The women's brands are fully on tests, and rupees and with that able to adjust inventory really quickly coach at kings isn't there and we still have work to do to get them on tests in rupees I think because of that.
We're seeing that their inventory and the newness isn't there like we have with the other brands that is impacting their comps and I think we're seeing that.
We're seeing that even more so for culture Kings in Australia, where the comps there arent as good as the brands that are fully on test and repeat I think look we are aggressively taking actions in Australia as we think about as we look to the peer set there. We also see that negative comping, but we expect to be doing better and so there's a lot that we're doing on.
Newness in product, but also just operational efficiencies that we want to make.
We've renewed we're removing unproductive skus, we expect that to help with gross margins marketing productivity and just actions really across all the brands and all of the areas.
Then as it relates to gross margins.
It's great to see gross margins of nearly 170 basis points year over year, and I think really that is a testament to that test and repeat model that we have no fully implemented at three of the brands.
And bringing newness.
<unk> kind of that newness has allowed us to be better at full price selling we do see the customers really reacting positively to that newness.
As it relates to the to the back half of the year, we expect that we will be.
<unk> gross margins in Q3 to where we were in Q2 and Q4, we would expect them to be seasonally lower as we've kind of seen for the last number of years, we expect it to be more promotional in Q4 and for US that's all contemplated in our guidance.
Thank you best regards.
Thank you next question comes from the line of Edward <unk>.
Piper Sandler. Please go ahead.
Hey, good afternoon. Thanks for taking the question I guess, just first to follow up on <unk> question, given the trends in Australia are you able to kind of.
<unk> inventory around or at least some of the orders and buys and put them in the U S versus Australia and then a broader question you guys mentioned, a litany of alternative distribution model task right marketplace at target.
Stores.
In some select wholesale I guess kind of what's the biggest needle mover in the medium term.
And what could the potential impact in the P&L. Thank you.
Thanks, Ed.
Yes, as it relates to inventory I think.
Look we do feel really good about the overall composition, we've made a lot of progress, bringing it across all the brands and all of the regions I think for US. It's just not at the same pace culture teams than we've been able to do on the other three brands.
With it being mens.
And the.
The street wear sector that culture Kings.
Is it there are certainly a lot.
Longer life their to the inventory and less in the fashion risk that we see on the.
The other three brands. So overall I think we.
Feel good about it.
As.
If there is opportunities we are moving the pacing of some of the inventory and putting it in the U S. Rather than Australia. So I think we'll be we'll be good there overall and then as it relates to the Omnichannel opportunities I think as we've talked about.
Focused in three areas.
Wholesale some marketplaces and then looking forward to opening our first store with Princess probably in Q3.
In the shorter term, obviously I think the Pax on progress is just really nice to see for Princess Polly going from a test in 2015 doors to know being in 100 stores.
Tomorrow is just really nice to see that over the last four or five months.
And I think as it relates to the kind of short medium term those wholesale opportunities are probably more impactful and look we are we've had really good progress across all of the tests right we've learned to loss.
And we've learned a lot that we can apply in each of the brands in those omnichannel opportunities. So we're just going to continue to lean into each of them across the brands and I think overall it would certainly be beneficial both to the comp and to our EBITDA.
Thank you.
Thank you next question comes from the line of Alex Shell with Bank of America. Please go ahead.
Hi, Thanks for taking my question can you elaborate on the monthly cadence of performance in the quarter and also how trends have been quarter to date are both generally and I region or by category.
Anything you can share quarter to date. Thank you.
Sure.
Yes, I think as we went through the quarter we saw in.
Overall in the business, we saw slight improvements as we went through Q2 and I would say they were we saw more improvements in Q2 in the U S and that really coming from.
Obviously kind of lapping a tough June 1st of all last year, but also just from some of the Omnichannel initiatives, we saw helpful as well.
<unk>.
We felt pretty consistent.
Pressure in the Australia region.
And then as it relates to this quarter, what we're seeing in July is continued improvements in comps in the U S and we expect to be in.
And our guidance contemplates policy this growth in the U S in Q3 and Q4.
We're seeing the same declines in Q3.
Quarter to date as we saw in Q2 for the Australia region.
Thank you.
Thank you next question comes from the line of.
Equal about a joke.
Wells Fargo. Please go ahead.
Hi, Thanks.
Couple of quick questions I guess.
The point of the last question.
Australia. So are you are you baking in similar declines in the back half as you're seeing kind of roughly down 30 in the back half and then you had made a comment in your prepared remarks around that macro pressure last thing even into the first half of next year. I guess first question is what's embedded in the back half and then based on the pressure you're seeing.
In Australia at what point do you believe is reasonable for the overall business to return the total topline growth.
Sure. Thanks, Mike.
And.
As we as we think about the back half I think you will see kind of from the guidance. We are expecting the same of near to think about it for us kind of same volume of dollars.
The region in Q3 that we saw in Q2.
<unk> uplift.
On the top end of the guidance and that coming from the U S region, rather than the Australia region.
I think we expect comps in Q4, obviously.
In Q4 to be better in both regions now look.
That's very much as well related to the actions. We took in Q4 last year, where we pulled pretty hard back on newness of inventory across the brands, but also very much on the marketing dollar spend across the brands last year right. So.
Q4, this year, we expect the marketing dollars.
A little bit on a rate basis year over year, but from a volume perspective.
It'll be open the high Twenty's, then year over year, So I think.
That level of marketing dollar increase we would expect comps to be better in Q4. This year and then I think as we think about next year I think certainly as we kind of.
Get into I would say kind of from the Lake it's kind of past Q1 into Q2, I would expect us to be back positive comping in the overall business. We certainly see the U S back positive pumping in Q3 and look it continues to be a larger and larger part of our business. It's certainly the.
Biggest opportunity for us from a growth perspective, we're very focused on us and seeing a lot of.
Benefits from the Omnichannel initiatives and I think leaning into all of those can get us back to positive growth.
Got it and then im sorry, if I missed it but I think I heard you say similar gross margin.
Third quarter, and what you saw in the second quarter.
Sorry, I might have missed it I didn't think I heard you comment on the full year gross margin you had set up a 100 bps three months ago I imagine it's higher than that now.
Can you give some color on the full year gross margin.
Yes, sure. So yes, I talked about kind of Q3 being similar to Q2 I think from an overall perspective, yes, we would expect to be kind of I think he off around 100 basis points.
As we think about the overall year, obviously, we're kind of we've been running higher than that so far year to date I think.
I am expecting us to just have a little bit of room as we think about promotional activity in Q4, and particularly in the Australia region.
Okay. So just reiterating that.
100 that you already do.
Yes.
Alright, thank you.
Thank you a reminder to all participants please star one to ask a question.
There are no further questions at this time I would like to turn the floor back over to Kevin as long for closing comments.
Thanks, everybody I appreciate your call and your questions and looking forward to talking to you soon.
Thank you. This concludes today's teleconference. You may disconnect. Your lines at this time. Thank you for your participation.
Oh.
[music].
Hum.
Yeah.
Hum.
Uh-huh.
[music].
Okay.
[music].
Hum.
Yeah.
[music].
Okay.
[music].
Hum.
[music].
Sure.
[music].