Q4 2024 PriceSmart Inc Earnings Call
Good afternoon everyone and welcome to PriceMart Incorporated's Ernest Release Conference Call for the fourth quarter of fiscal year 2024, which ended on August 31, 2024.
After remarks from our company's representatives, Robert Price, answering chief executive officer and Michael McCleary, chief financial officer. He will be given an opportunity to ask questions as time permits.
As a reminder, this conference call is limited to one hour and is being recorded today, Thursday, October 31, 2024.
A digital replay will be available on the following following the conclusion of today's conference call through November 7, 2024. By dialing 18886606 for domestic colors or 16465173975 for international coalesce. By entering the replay access code.
28615 followed by the pound key.
Speaker Change: For opening remarks, I would now like to turn the coal over to Price Mortz's Cheevich Financial Officer, Michael McCleary. Please proceed sir.
Speaker Change: i
Thank you operator and welcome to Price Mart Inc's earnings call for the fourth quarter of fiscal year 2024, which in it on August 31st 2024.
Speaker Change: We will be discussing the information that we've provided in our earnings press release in our 10K, which for both released yesterday afternoon October 30, 2024. Also in these remarks, we refer to non-gap financial measures.
You can find a reconciliation of our non-gap financial measures to the most directly comparable gap measures in our earnings press release in our 10K.
These documents are available on our Investor Relations website at investors.picemark.com where you can also sign up for email alerts.
The reminder, all statements made on this conference call out of the statements of historical fact, are for looking statements concerning the company's anticipated plans, revenues and related matters.
Board-looking statements include, but they're not limited to, statements containing the words expect, believe, why and will, may should estimate and some other expressions.
Off-Walking Statements are based on current expectations and assumptions as of today, October 31, 2024.
Speaker Change: These statements are subject to risks and uncertainties that could cause actual results to deformatarily, including the risks, detailed in the company's most recent annual report on Form 10K and other findings with the SEC, which are accessible on the SEC's website at www.scc.gov.
These risks may be updated from time to time. The company undertakes no obligations to update forward looking statements made during this call.
Speaker Change: Now I will turn the call over to Robert Price, Price Marks, Interim Chief Executive Officer.
Robert Price: Thank you, Michael. As we report on Cisco Year 2024 financial results, I want to thank our nearly 12,000 employees working in 13 countries.
Speaker Change: for their outstanding job performance.
Our employees dedication and loyalty.
Speaker Change: demonstrated by our company's exceptionally low-employed turnover.
is the reason Price Smart Achieve such positive results.
in fiscal year 2024. The warehouse club format continues to be a dynamic factor in the merchandising business.
Speaker Change: Characterized by Constant Renewal and Innovation.
It has been nearly 50 years since Price Club opened the first warehouse club on Marine Boulevard in San Diego.
Although the basics do not change
We understand that we must continue to adapt to a changing environment.
and to challenge ourselves to new ways of doing business.
Speaker Change: Our future success depends on the right combination of adherence to what has got us here and a commitment to continual improvement.
Now I am pleased to ask Michael to continue with his presentation.
Michael McCleary: Thank you, Robert. We had a strong fourth quarter, as net mercenai sales reached almost $1.2 billion and total revenue was over $1.2 billion.
Michael McCleary: Net Merchandise sales increased by 9.5% or 9.3% in constant currency and comparable net Merchandise sales increased by 6.2% or 6% in constant currency.
For the fiscal year and it augurs 31st 2024, total net merchandise sales reached almost $4.8 billion until revenues were over $4.9 billion.
NetVersenice sales increased by 11.2%, or 8.6% in constant currency, and comparable net merchandise sales increased by 7.7%, or 5.2% in constant currency, for the 12th month and 52 week periods, respectively.
Michael McCleary: by segment in Central America where we had 30 clubs at quarter-end. Net merchant high sales increased 9.1% or 7.9% in constant currency, with a 6.1% increase in comparable net merchant high sales or 4.9% in constant currency.
Oliver Marketson Central America had positive comparable never-chnai sales growth.
Our Central America segment contributed approximately 370 basis points of positive impact to the growth in total consolidated comparable net merchandise sales for the quarter.
We opened our 6th warehouse club in Guatemala in November 2023 and our 4th warehouse club in El Salvador in February 2024.
In the Caribbean, where we had 14 clubs at Corden, that merchandise sales increased 6.9% or 9.4% in constant currency.
and Comparable numbers, and I sell increased 6.7% or 9.2% in constant currency.
All of her markets in this segment had positive comparable net merchandise sales growth.
Our Caribbean region contributed approximately 190 basis points of positive impact to the growth in total consolidation comparable net merchandise fails for the quarter.
In Colombia, where we had 10 clubs open at the end of our fourth quarter, NETVX and I sales increased 18.7% for 16.8% in constant currency, and comparable NETVX and I sales increased 5.4% or 3.8% in constant currency.
Michael McCleary: Columbia contributed approximately 60 basis points of positive impact to the growth in total consolidated comparable net merchandise sales for the quarter.
in terms of merchandise categories.
Michael McCleary: When preparing our fourth quarter sales to the same period in the prior year.
Our Foods category grew approximately 1%, our non-foods category increased approximately 19% our food services and bakery categories increased approximately 17% and our health services including optical audiology and pharmacy increased approximately 36%.
Membership accounts grew 4.7% first the prior year to almost 1.9 million accounts.
Platinum membership accounts are 12.3% of our total membership base as of our 31st 2024.
An increase from 8.9% in the prior year due to an increased focus on this important segment of our members, including through platinum promotional campaigns.
Our membership income was $19.7 million, and increased of 14.1% over the same period last year.
Due to the increased platinum penetration and a $5 increase in the annual membership fee for all membership types.
staggered throughout the year in all of it one of our markets.
Michael McCleary: At year end, we continued with a strong 12 month renewal rate of 87.9%.
Total gross margin for the fourth quarter of fiscal year 2024 as a percentage of net merchandise sales increased then-based points to 15.7% versus 15.6% in the fourth quarter of fiscal year 2023.
The 10-basis point increase was primarily due to general margin improvement across most of our sales categories.
In total dollars, total gross margin increases $17.5 million for approximately 10.3% versus the same quarter of the prior fiscal year.
Michael McCleary: Total revenue margins increased 20 basis points to 17.3% of total revenue when compared to the same period last year. Primarily due to the increase in total gross margin as a percent of net merchandise sales, and an increase to other revenues due to an increase in interest earned on our co-branded credit cards.
are in the quarter, our average sales ticket grew by 2.4% and transactions grew 6.9% versus the same period in the prior year.
For the 12 month period, our average ticket grew by 2.4% and transactions grew 8.6% versus the same prior year period.
for item increased approximately 3.1% year over year. While average items for basket decreased approximately 0.7% compared to the same period of the prior year.
To Les GNA expenses decreased to 13.3% of total revenues for the fourth quarter of fiscal year 2024, compared to 14.2% for the fourth quarter of fiscal year 2023, primarily due to significant expenses in the fourth quarter of fiscal year 2023.
Michael McCleary: As you may recall, these 2023 charges related to a $9.2 million settlement of a minimum tax dispute, and a $5.7 million in permit charge and related closure costs, primarily for the right down of assets of our China debt, sustainable packaging plan.
General, I'm an administrative expenses increase to 3.4% of total revenues for the fourth quarter of fiscal year 2024. Compared to 3.1% for the fourth quarter of fiscal year 2023.
Michael McCleary: The 30 basis point increases primarily due to investments in technology and an increase in competition expense from stock grants to executive leadership.
Michael McCleary: Operating income for the quarter increased 53.1% from the same period last year to 49.2 million dollars. Operating income for the fiscal year increased 19.7% from the same period last year to 2.2 million dollars.
In the fourth quarter of fiscal year 2024, we recorded a $7.4 million net loss in total other expense compared to a $1.5 million net loss in total other expense in the same period last year.
Michael McCleary: The increase net loss in total other expense was primarily due to an increase in other expenses.
Michael McCleary: of $4.2 million, which was primarily driven by an increase in foreign currency transaction losses due to premiums to convert local currencies into US dollars and unreliable losses in value of US dollars deposits due to appreciation of the Costa Rica Colon.
as well as a decrease of $1.2 million in interest income due to lower cash balances.
Our effective tax rates for the fourth quarter of the school year 2024 came in at 3.4% versus 49.9% a year ago.
The decrease in the effective tax rate is primarily attributable to the non-recurrents of the comparably unfavorable impacts in the prior year of 11.6% due to the AMT settlement and 5.4% from acid impairment in the related closure costs.
Michael McCleary: 4 fiscal year 2024, the effects of tax rate was 31.1%, compared to 35.4% for the prior year period.
The decrease in the effective tax rate is primarily driven by the non-recurrents of the comparably unfavorable impact in the prior year of right-offs of VAT-resoluble, it are close by-dops and asset impairment in related closure costs of 2.2% and it 1.8% unfavorable impact due to the anti-selement.
Michael McCleary: Looking forward, following the implementation of certain tax optimization initiatives, we expect our effective tax rate to decrease to between 27 and 29% in fiscal year 2025.
Net income for the fourth quarter of fiscal year 2024 was $29.1 million or $94 for the Lutit Share. Compared to $15.4 million or $49 per Lutit Share in the fourth quarter of fiscal year 2023.
net income for fiscal year 2024 was $138.9 million, $4.57 per due to share compared to $19.2 million or $3.50 per due to share in the comparable period period.
Michael McCleary: Our earnings per share for the fourth core and full year of fiscal 2023 are inclusive of a negative impact of 30 cents per diluted share per cost related to the reserve for the anti settlement and 18 cents per diluted share of asset impairment and closure costs.
A just a net income for the fourth quarter of fiscal 2024 was $29.1 million. Or an adjusted 94 cents per due to the chair compared to adjusted net income of $20.4 million. Or an adjusted 65 cents per due to chair in the comparable prior year period.
I adjusted the beta for the fourth quarter of fiscal year 2024. Was $7.7 million compared to $57.2 million in the same period last year.
Michael McCleary: A just a net income for fiscal year 2024 was $138.9 million. We're on adjusted $4.57 per dilute share compared to adjusted net income of $126.5 million. We're on adjusted $4.6 per dilute share and comparable prior year period.
I adjusted a beat down for fiscal year 2025 for a 3.6 million dollars compared to $275.7 million in the same period.
Moving on to our strong balance sheet, we need to quarter with cash, cash equivalents, and restricted cash, totaling 136.3 million dollars. In addition to approximately 100.2 million dollars of short-term investments.
from the cash flow perspective. Netcash provided by operating activities told $27.6 million for fiscal year 2024, compared to $257.3 million for the same prior year period.
Shifts in working capital generated from changes in our merchandise inventory and accounts payable positions contributed to $58 million to the overall decrease, along with an increase in various other operating assets that have changes in my abilities.
I regimen to write per club increased by approximately $550,000 or 5.9% and inventory days on hand increased by approximately 2 days or 4.5% for the fourth quarter of fiscal year 2024 versus the same period in 2023.
The increase of inventory for club and days on hand is primarily due to a shift in our inventory mix towards more non-food items which have longer lead times.
NetCash used an investing activity as decreased by $46.6 million for fiscal year 2024. Compared to the prior year, primarily due to a $71.4 million net increase in proceeds from settlements, the short term investments.
This was partially offset by a $26 million increase in property and equipment expenditures to support growth of our real estate footprint compared to the same period a year ago. We opened three additional clubs during fiscal year 2024.
Michael McCleary: Nick Cash used in financing activities during fiscal 2024.
Michael McCleary: increased by $109 million primarily from the result of the shared repurchase program we completed during the first court, a special $1 dividend payment enabled 2024, and lower proceeds that repay payments from long term, thanks for our aims compared to the same period a year ago.
The End
When reviewing our cash balances, it is important to note that as of August 31, 2024, we had 82.5 million dollars of cash, cash equivalents, and short term investments to nominate in local currency in Trinidad and Enduris, which we could not readily convert in the U.S. dollars.
Michael McCleary: Now on Tour Growth Fivers.
Starting with Real Estate, we have purchased land and planned to open our ninth warehouse club in Costa Rica, located in Cartagre, approximately 10 miles east from the nearest club in the Greater San Jose metropolitan area. This club will be built on a six-figure property and is anticipated to open in the spring of 2025.
Michael McCleary: Additionally, we expect to formalize a land lease this quarter and build our 7th warehouse club in Guatemala located in Ketelton, Angle, approximately 122 miles west from the nearest club in the capital of Guatemala City.
This club will be built on a four acre property and is anticipated to open in the summer of 2025.
Once these two new clubs are open we will operate 56 warehouse clubs in total.
Michael McCleary: Additionally, we are currently remodeling several of our high-volume clubs which were in San Pedro, Sula Honduras and Santiago de Mentecran Rucalic, as well as expanding our clubs in San Salvador, El Salvador, and Port Merchumica.
Michael McCleary: In the fourth quarter of fiscal year to 2024, we completed the remodel of our warehouse club in Port of Spain Trinidad and Tobago, and the expansion of our warehouse club in Liberia Costa Rica.
Finally, we continue to seek ways to improve our distribution infrastructure to better serve our members. We are enhancing our distribution logistics network through the expected opening of distribution centers in China and in each of our multi-club markets, either operate a by price mark or through the use of third party logistics providers.
We expect to reduce land and cost and lead times via direct shipments from Asia to our local markets while also improving our working capital.
Michael McCleary: In addition to our regional distribution center in Costa Rica, we have a press-mark operated distribution center in Panama for dry merchandise, which we are currently in the process of expanding to include cold merchandise.
We are also in various stages of development and implementation of Price Mart operated distribution centers in markets such as Guatemala, Trinidad and the Dominican Republic.
Michael McCleary: Turning now to membership value, as we've highlighted in previous calls, our private label, Members of the Selection Brand, continues to be a significant area of focus based on the good diet brings to our members. We offer private label, food, household products and a pair of under a members of the Selection Brand across all markets.
Michael McCleary: During fiscal year 2024, our private legal sales represented 27.6% of our total merchandise sales.
Michael McCleary: That's up 130 basis points from 26.3% in the comparable period of fiscal year 2023.
We also continue to focus on health services.
We currently have 53 locations with optical centers, as well as pharmacy centers in all late of our warehouse closing post-Rica, five warehouse clubs in Panama, and one in Guatemala.
by the end of fiscal 2025, we expect to have pharmacies in substantially all clouds in post-urigat, Panama and Guatemala.
We also currently have 29 radiology centers open.
Our optical program provides four three-high exams with every membership and we've performed almost 17,000 exams during the court.
Optical Services are also an important component of our contributions to the communities in which our clubs are located. In partnership with Price Plan to please open their ECRC vision program, Price Mark Optometry has performed free eye exams for children and the charity provides free lenses and frames.
Speaker Change: My membership provides access to high quality products at low prices and complementary services all under one roof. Memberships are for personal use of the main and secondary card holders and are not meant to be shared. We are working towards ensuring that our members are not sharing their memberships with non members.
My third growth driver is providing on-each-all shopping options for our members, including sales VR app and our dust-toff website, as well as enhancing our technological capabilities.
We currently utilize PriceMy.com, our app and other third party last month of the resources to drive online sales.
During the fourth quarter, total net merchandise sales through digital channels increased 21% versus the same period in the prior year and represented $65.1 million or $5.5% of total net merchandise sales.
to the world. To the world, please directly on PriceMark.com and our app increased 19.1% and the average transaction value increased 0.9% versus the prior year period.
Drane fiscal year 2024, we completed a country by country rollout from our new price mark.com website, as well as mobile applications on both Android and iOS devices to complement our encloved shopping.
Michael McCleary: These new platforms will allow us to better tailored to the results and services for our members. Update inventory availability more quickly, improve product discovery and reduce friction in the shopping experience.
As of August 31st, 2024, approximately 61.3% of our members had created an online profile with PriceMart.com or our app. And 28.5% of our total membership base has made a purchase on PriceMart.com or our app.
We believe that there are significant growth opportunities in our digital channel, and we will continue to invest in this part of our business to provide an enhanced on the child experience and additional bio-torn members.
We are also continually improving the digital experience for our employees by finding ways to deploy technology than improves efficiency.
One example of these efforts is relax, which will modernize our ordinary and inventory management. We started this project in 2023 and expected to be completed by the end of fiscal 2025.
As a result of this implementation, we anticipate improved sales and efficiencies due to enhanced in stock positions, diminished spoilage and streamlined inventory flow.
Additionally, in the first quarter of fiscal year 2025, we began implementation of a new point of sale system, Aleira, a Toshivo product, and one of our countries.
Michael McCleary: Shifting out to our ASR activities, during the year we released our comprehensive environmental and social responsibility report for fiscal year 2023.
Michael McCleary: is report showcases our commitment to environmental and social responsibility. The FOLESR report is available on our investor relations website at investors.pricemark.com under the ESG tab.
Environmental and Social Responsibility continues to be an important component of how we approach our business and add value to the membership. We do our best to incorporate practices that use natural resources responsibly.
Michael McCleary: Just to give a quick update, we currently have seven recycling centers open with 2NLs of our 300s and 2NW.
Each location collects an average of 30,000 pounds of recycled material monthly with the Dugusy Gout behinder's location collecting around 50,000 pounds per month.
Michael McCleary: Looking ahead, we plan to expand this successful program by opening four additional recycling centers in the Dominican Republic during fiscal year 2025.
Michael McCleary: and Response to Hurricane Bale in the fourth quarter of fiscal year 2024. Price Mert and the Price Mert Foundation swiftly mobilized the support affected communities in Barbados and Jamaica.
Michael McCleary: We collected 37 kilos of food and 551 kilos of non-food items in the US alongside 91 kilos of food and 30 kilos of essential goods in Jamaica.
Additionally, the Price Mark Foundation donated $15,000 to global empowerment mission for the purchase of generators and repair materials and $10,000 to young women, men of purpose, a Jamaican nonprofit for aid packages.
and Barbados together 210 kilos of food to support those in need. You can find more information about Price Mark's full-end topic and corporate social responsibility efforts on PriceMark.org.
We believe that all of our efforts to enhance our membership value in our community efforts.
Michael McCleary: I've also resonated with our employees.
Michael McCleary: As we are excited to announce that we were ranked in the top five retailers to be employed by in Guatemala, Honduras, and El Salvador by TecoLocal. TecoLocal is an operator of a recruitment website in Central America.
Looking forward a little into our current first quarter. Our comparable numbers and I sales for the eight weeks ended October 27, 2024, where up 5.6% in US dollars and 5.7% in constant currency.
In closing, it was a great result for our fourth quarter and fiscal year. We are proud to continue seeking to make shopping easier, more efficient and more rewarding for our members. We are excited about the many initiatives we have underway, especially on the technology fund, to make our procurement logistics and other front and back office processes more efficient.
Michael McCleary: and are looking forward to an exciting fiscal year 2025. Thank you for joining our call today. I will now turn the call over to the operator to take your questions.
I'm Fridder, you may now start taking our callers questions.
Speaker Change: Thank you. Ladies and gentlemen, we will now begin the question and answer session. Should you have a question please press this far button followed by the number one on your touched on phone. It will hear a prompt that your hand has been raised.
Should you wish you declined from the Pauling process, please press the star button, followed by the number two. If you are using a speaker phone, please lift the handset before pressing any keys.
One moment please for your first question.
Speaker Change: Your first question comes from the line of John Bratz of Kansas City Capital. Please go ahead.
Speaker Change: Good morning everyone.
Michael McCleary: Oh!
John Bratz: Michael, can you talk a little bit more about, I think you referenced the tax optimization program that you're looking at for a 20, 25 and a lower tax rate. What's behind that?
Michael McCleary: Morning John, yeah, I mean as you know kind of the basis of our business model is always be looking to
Michael McCleary: Reduce costs and deliver as much of that benefit on to the members we can. So as our business model evolves, we continue to adapt to changes in, in, for instance, the investment in technology and how we do that and how we,
and sure we're sharing the cost of that with the operating subsidiaries and as a result of those efforts together, working with our tax advisors, we feel that we can reduce our taxes fairly significantly in this coming year.
Let me add something to that. We knew this question would come up, so it's not a surprise. And Michael and I talked about it.
How to properly respond. First of all, we think we've come up with something that's going to be...
Michael McCleary: Much better in terms of tax planning than what we had.
But one of the things that I think is important to be aware of and I don't I assume this is disclosed. The nature of our businesses, we do generate a substantial amount of tax.
Useable tax credits from our countries.
Michael McCleary: and we have not been as thoughtful or as creative in how to use the income from the United States.
Michael McCleary: and there is a lot of income that we get in the United States corporation to offset.
Michael McCleary: or to take advantage of those tax credits. And so part of what we've come up with is a better approach to using these tax credits.
Against US profits, which effectively...
Michael McCleary: Saves this taxes.
and in fact we're recapturing the portion of taxes. So I guess you could say well why didn't we do this before and we should have probably, but you know the nature of you're constantly thinking about your business and how to improve it and I think this is...
Michael McCleary: Something that we feel can be very beneficial to our business and continue to improve our...
Sales by heavy lower prices and also our profitability.
Okay, so would be fair to say, you know, and I know this is part of your strategy would be fair to say that
Speaker Change: The benefits that you get from these tax savings.
John Bratz: Well, not necessarily float of the bottom line, but you're going to invest those tax savings in lower price.
That was the second question we knew you'd ask. So I think our answer is that we will take some and leave some.
Speaker Change: Alright, do you know my third question?
Speaker Change: Oh, now you're putting me on that spot. The other question I have is, I noticed in the 10K.
and it's not a big deal, but your export business to the Philippines has been discontinued and there's some export business, I think, to the Bahamas or something like that. And I guess my question is, is what happened to the Philippine business?
will the quote unquote new business replace the the Philopaint business and and if there an opportunity to go beyond just I think again I think was a bomb as but is there an opportunity to go beyond that?
So the Philippines, which that's SNR.
by the way, you know, was used to be Price Mart, but then when we got out of there, you know the history. They got in big, and basically they can buy a direct and have decided that...
Speaker Change: and doesn't benefit them, I guess. So they are on their own way. As far as the export business, other than I don't know why.
The Bahamas' focused on specifically.
Do you because we already have one we have some transactions going on too
Well, I thought maybe that was mentioned in the 10K. I may have that country right over me. Oh, no, I think it is. I'm surprised that it's the only one mentioned.
because we do have other countries.
decided to focus in the hemisphere and not, you know, western hemisphere and not go outside of this area for the time being.
Speaker Change: We think there's opportunity. I don't know that we can tell you how that will compare with what's been going on with the Philippines, but I do think there's good opportunity.
Speaker Change: and we...
Speaker Change: You know, have set up separate group of people who are working specifically on exports.
Speaker Change: and the benefit of the exports, of course, there's another opportunity to increase profits in the United States that are basically can be used because there's foreign source income.
to against these credits that we have. So that effectively we don't pay taxes on those, you know, we can neutralize the tax hit.
Okay. All right, very good. I think that's it. Thank you much.
No more questions for you.
Speaker Change: I'm going to make a video about the
Speaker Change: Alright, thanks John. Have a good day.
Your next question comes from the line of tecturamias. Go to Opsco-Shabam, please go ahead.
and Michael, thank you very much for taking my questions. I just have a couple.
Speaker Change: The first one is if you could please give us an update on how the consumer environment has continued to evolve in Colombia. You can share the trends that you have seen by the category particularly related to private mobile.
Michael McCleary: I can address that somewhat.
I think our acceptance in the Columbia Market continues to grow. I think we're very well-thought of in that market.
The consumer environment in the last couple of weeks may, you know, the, the peso has, um...
Weekend against the dollar.
and that generally is not good for our products we export to Colombia.
but the sales have been good and I don't know generally that I can tell you about the overall consumer environment in Columbia but our situation I think we continue to be well thought of and
and continue to grow.
and also a lot of your digital regions or going projects so I would just say that it makes you the most excited about 2025.
That's a good question. I think the...
Michael McCleary: There are a lot of things that are very positive. I think the start with technology.
Michael McCleary: We have a number of initiatives that really...
Michael McCleary: We're going to benefit our business. We mentioned rail X, but we also now are in the middle of implementation of a new point of sale system.
and so our investment in technology which I think.
Michael McCleary: was not needed to be in the past. We're catching up and I think that's a very positive sign for the future.
I think the fact that we've done a quite a few remodels and expanding our buildings that will be completed by the end of calendar 24.
are very positive for the business. I'm excited about the...
Improvement, we've made a non-foods bind and merchandising, which of course most of that is product we export to our countries.
Michael McCleary: I'm also excited about our distribution center initiatives because I think you know having been here in this business since day one. This distribution has always been a key to this business because we...
Speaker Change: Really, have the benefit of getting lower prices because of the efficiencies of how we distribute our products. And I think these in-country distribution centers are major markets.
has the benefit both of allowing us to bring product in a net land and cost that will be lower and also improve operating efficiencies within the country. And then that is a very positive.
Benefit for going forward for us to be able to continue to bring better values to our members. And those are some of the things that I think are pretty positive. I also am very positive about our...
Senior Management Team in terms of the people who we have here, but also to the new people we brought in.
Speaker Change: brought in a person who's got to focus on government relations in our countries. I think this individual can be very helpful to us. So I think overall, you know, assuming the world stays in reasonable shape, I think we're okay.
Thank you.
Perfect, very, very nice color. Thank you very much, Robert Michael. Thank you.
Speaker Change: Thank you, Hector
Speaker Change: Thank you. There are no further questions at this time. I'd now like to turn the cold back over to Michael for final closing remarks. Please go ahead.
Okay, thank you everybody that wraps up our call for today. We hope you all have a good day and for those that sell the great happy how the weena happy how the weena thank you take it
Speaker Change: Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask the to please disconnect your lives.