Q2 2025 Oil-Dri Corp of America Earnings Call
Okay.
Speaker Change: Good day and thank you for standing by welcome to the Q2 fiscal 2025 earnings discussion via webcast conference call. At this time all participants are in a listen only mode. After the speaker's presentation. There will be a question and answer session over the web.
Speaker Change: Please be advised that today's conference is being recorded I would now like to hand, the conference over to your speaker today, Dan Jaffee, President and CEO of coil dry. Please go ahead.
Speaker Change: Thank you and good morning, everyone and welcome to our second quarter and six months Investor teleconference. Joining me via the web and all sorts of different ways. We're all in different rooms, but we will function as a team like we always do.
Susan Craig: Susan Craig <unk>, CFO and see idle Aaron Christiansen VP of operations, Chris Lamson group VP of retail and wholesale Laura <unk>, Vice President and general manager of our consumer products Division.
Speaker Change: <unk> V P of fluids purification.
Speaker Change: Joining us this time as Heath Russell's our vice President of sales for the Americas amyloid International he will be sitting in for Wade Roby, who is traveling internationally and unable to attend today's call. So thank you for joining US and then also Tony Parker, Our Vice President General Counsel and Secretary and as always.
Speaker Change: Leslie Garber director of Investor Relations.
Speaker Change: Good morning, everyone.
Speaker Change: On today's call comments may contain forward looking statements regarding the company's performance in future periods.
Speaker Change: Actual results in those periods may materially differ in our press release and in our SEC filings, we highlight a number of important risk factors trends and uncertainties that may affect our future performance.
Dan Jaffee: Ask that you review and consider those factors in evaluating the company's comments and in evaluating any investment in oil dry Zack. Thank you for joining us and I'll turn the call back to Dan.
Speaker Change: Great. Thank you and I heard a great quote recently that said if you are the smartest person in the room you are in the wrong room, well I'm in the right room I'm surrounded by very smart and talented people on my team, who make this happen and Youre seeing incredible results and they are really going to do the majority of the speaking today as well they should because they're doing the majority of.
The work so it's only fair, but I do want to start with some 50000 foot comments and I'll try not to get too detailed because I know there can be a lot of numbers flying around but if you follow me at all on Linkedin, you'll see one of the themes of oil dry as we'd like to play what we call mining, but it's our spin money ball and it's all about.
Speaker Change: Our teammates who are turning data.
Susan Craig: Into dollars and of course, Susan I, just stole your tagline, so sorry about that Couldnt help it but.
Susan Craig: Here's what's amazing about this quarter. So in 2025 of the quarter, we just closed.
Susan Craig:
Susan Craig: Our tonnage was 30% less than our all time record, which was set back in <unk> six but in that very quarter back in all six we only did $51 million in sales so.
Susan Craig: <unk>, our sales and 30% less tonnage and again, if you had the news releases you'd see we only made $9 $8 million and gross profit back in <unk>, six and we made $75 million. This quarter, so you're talking about seven and a half times the gross profit.
Susan Craig: 30% less tonnage and that is mining Paul we are selling a non renewable resource and we focus everyday on turning data into dollars data into dollars and it's working so I'm going to turn it over to Susan I stole some of your Thunder, but I got to keep you on your toes.
Susan Craig: Thanks, Dan.
Speaker Change: Pleasure to be here. This morning in order to preserve the most time for questions I'm just going to highlight a few financial matters and then I will address any of your other question in the Q&A portion of this call.
Speaker Change: During the second quarter of fiscal 2025 oil drive continued to experience growth momentum and some of the key.
Speaker Change: These strategic areas of our business as.
Speaker Change: Sales grew at double digit rate in our fluids purification animal health products groups, and we continued to successfully integrate our crystal cat litter products.
Speaker Change: The growth in these high value added products provided a positive boost in our product mix.
Speaker Change: When combined with our pricing initiatives drove our gross margin growth up 11% year over year.
Speaker Change: The addition, and growth of our Crystal to Cat litter products has had an impact on our effective tax rate because we do not yet have depletion deduction for these highly value added products.
Speaker Change: For the second quarter of fiscal year 2025, we used an estimated effective tax rate of 21% compared to an effective tax rate of 16% for the second quarter of fiscal 2024.
Speaker Change: We adjust our estimate of this rate every quarter based on expected annual taxable income and our assessment of various tax adjustments, including depletion and discrete items.
Speaker Change: Bottom line, our diluted earnings per common share of <unk> 89 reflects a 5% increase year over year in the quarter.
Speaker Change: After updating the prior year's number to reflect our stock split into.
Speaker Change: And to recap that split on October 19, 2024, we announced that our board of directors approved two for one split in the form of a stock dividend.
Speaker Change: Stockholders of record as of close of business on December 22024.
Speaker Change: We received a distribution of one additional share of common stock per share for each share of common stock held by such stockholder and one additional share of class B stock for each share of class B stock held by such stockholder as of that record date.
Speaker Change: The additional shares were distributed on January 3rd 2025.
Speaker Change: And our stock began trading on a post split basis on January six 2025, so during this quarter.
Speaker Change: Our financials have been updated to reflect that stock split.
Speaker Change: Our profitable growth during the second quarter led to an increase in cash generation, which was then invested in our strategic initiatives in our manufacturing facilities and it was also used to support our high service levels to our customers through the building of targeted inventory.
Speaker Change: During the second quarter of fiscal 2025, we generated $22 million of EBITDA.
Speaker Change: And if you're interested you can refer to our press release for the reconciliation of that number to net income.
Speaker Change: After supporting our operations and paying our dividend. Some of this cash was used to pay off the remaining $5 million of short term debt on our revolving credit facility initially borrowed to partially finance the acquisition of our ultra pet crystals cat litter business.
Speaker Change: As of the end of the quarter the credit facility is undrawn and available for potential growth financing opportunities.
Speaker Change: And one topic that I would mention finally before I turn it back over to Dan is a continual continuing monitoring and the potential impact of tariffs on our business.
Speaker Change: We are closely watching this continuously evolving situation it seems like it changes every day.
Speaker Change: While we do anticipate some challenges we believe that because most of our operations and sales are located within the United States.
Speaker Change: Along with the fact that we are a vertically integrated business model.
Speaker Change: Our direct exposure is limited.
Speaker Change: We have also already taken a number of actions and are engaged in ongoing discussions with our business partners.
Speaker Change: With whom we will work to minimize the effect of tariffs on our business.
Speaker Change: We remain committed to maintaining strong operational efficiency and we continue to monitor the situation to make any necessary adjustments in real time.
Speaker Change: As always our primary focus is on delivering value to our customers and our stockholders and we're confident in our ability to navigate these external factors to achieve these goals.
Speaker Change: And with that then I will turn it back over to you and I will take any other questions that have come up in the Q&A section.
Speaker Change: Okay, great. Thank you and before I open it up to Q&A I, just want a special shout out to Susan who during the quarter was named CFO of the year for midsized public companies in the city of Chicago, a richly deserved award and as you always rightly points out it's a team, saying, but she is leading the team.
Speaker Change: And I was going to be stunned if she didn't win and she did win so congratulations to Susan and.
At this point in time, then I will open it up for Q&A Leslie Youre going to read the questions and then we will have a relevant teammate answered them.
Leslie Garber: Yes so.
Speaker Change: So for everyone. Please.
Speaker Change: Submit your questions using the ask a question field on the webcast and click submit so our first question comes from Ethan Star, how with ultra pet doing or the number of new shelf placements continuing to increase how is retail sell through so Chris Lamson I'll have you answer that one yes.
Speaker Change: Yes, good morning, Ethan and thanks for checking in on Ultra patented ultra pet acquisition.
Speaker Change: So we remained.
Speaker Change: Really extremely pleased with the Altra business fact, I can share that our acquisition economics are.
Speaker Change: Essentially exactly aligned in fact, I chuckle, a little bit lastly.
Speaker Change: As our financial person on the deal and she may be the most amazing forecasters, they're really extremely well aligned with the business case acquisition to date.
Speaker Change: From a bottomline perspective regarding those distribution build that.
Speaker Change: You've alluded to.
Speaker Change: The majority of our retail customers really reset their shelves.
Speaker Change: In the fall going into going into winter. So we're back into the selling cycle.
Speaker Change: We don't expect much in the way of further major distribution gains like we experienced a few months ago.
Speaker Change: In the immediate term, but we're pushing to achieve those same strong results again. This next fall.
Speaker Change: We really were pleased with the early reads that were getting from customers in terms of adding further distribution. Both both further distribution with existing customers and getting distribution with with new customers.
Speaker Change: Velocities vary a bit by customer, but I'd say as we look across those velocities the items that we got in most recently are doing well.
Speaker Change: Okay.
Speaker Change: Shelf space going forward.
Speaker Change: Thank you.
Speaker Change: Thank you.
Speaker Change: The next question comes from Robert Smith for the center for performance investing.
Speaker Change: And he he has a question on fluids purification in terms of the U S versus international demand what is the composite of treatment landscape and what are the puts and takes over the next six months Bruce I mean have you take that one sure Robert Thanks for the question.
Speaker Change: Both North America, and Europe are probably the two leading regions that produce renewable diesel fuel and today. The business is strong in both those regions.
Speaker Change: As we look out for six months, we expect.
Speaker Change: Use of absorbing in this market to stay stable.
Speaker Change: Will be some growth as we move forward as some new plants come on but.
Speaker Change: At this point the landscape is.
Speaker Change: It is competitive but both both regions are doing well.
Speaker Change: Great. Thank you.
Speaker Change: We actually received many questions on the aniline business, so I'm going to consolidate them.
Speaker Change: On.
Speaker Change: So as it relates to the Ameren is the level of sales at Amlin that aniline achieved in the second quarter sustainable going forward and can you elaborate on the drivers behind this performance and what were the geographical strength, so I'm going to have Keith answer that for us.
Speaker Change: Yeah. So I always excited to talk about aniline in our growth.
Speaker Change: The team that we're building in animal health that oil dry.
Speaker Change: So what I would tell you is if you look back to March of last year. So March of 2024, you start to see our business really start to take off in our sales start to increase.
Speaker Change: So we've been really excited.
Speaker Change: With the sales volumes, we have had I will tell you I give that credit.
Speaker Change: So not only our sales and technical team, but also our supply chain.
Speaker Change: The product quality has been really good performance of the product once it gets to the customer has been solid.
Speaker Change: Adding value to their business and really what we're seeing is that our technical teams are able to go and add value to our customer relationships as well so.
Speaker Change: Hey excited about what we've seen in Q2 really excited about the commitment that oil has to animal health business moving forward.
Speaker Change: Great. Thank you.
Speaker Change: Next question is from John Bair Edison wealth advisors.
Speaker Change: And he asks.
Speaker Change: He knows you noted several times in the press release, a significant investment in manufacturing infrastructure.
Speaker Change: On a percentage completion basis of what you have targeted how far along are you in those efforts over what time period have you projected to get those upgrades done and what are you seeing as far as cost involved to do so.
Speaker Change: Have you have you considered any pre buying of materials equipment to head off inflationary pressures, so I'm going to turn that over to Aaron Christiansen.
Aaron Christiansen: John Happy to answer your question.
Aaron Christiansen: Difficult one to answer directly I'll take it and some general terms first we envision a long term sustained commitment to reinvesting back in our manufacturing base.
Aaron Christiansen: Actually looking at replacement asset value and a proportioning a percentage of our capital plan every year to sustaining the asset base. So it's a long term commitment John.
Aaron Christiansen: Ongoing we're also continually looking at where there is overlap between needs for infrastructure replacement, but also adding capacity or cost compression I think I presented maybe a year ago or so similar specific piece of work that was just completed in December.
Aaron Christiansen: We were able to revitalize the heart of one of our factories that produces our agricultural products and at the same time add significant capacity.
Aaron Christiansen: The last piece of your question, we definitely look at places to forward buy equipment.
Unfortunately for us are not a lot of opportunities given that a lot of the construction costs are a very large portion of the capital cost and it's really difficult to pre buy.
Aaron Christiansen: Construction services, so I hope I've answered your question.
Aaron Christiansen: Great.
Speaker Change: We have a question from Tyler Ventura from Diamond Hill capital and he says given your continued investment in manufacturing infrastructure, while paying down debt and maintaining dividend what are your capital allocation priorities for the remainder of fiscal 2025 and beyond are there any additional M&A opportunities.
Aaron Christiansen: To complement your organic growth strategy.
Speaker Change: I'm going to have Susan Craig that absolutely and thanks for the question Amit, let's start with 2025, we're halfway through the year, we had the priority to pay down our revolving credit facility, which we've done across the first two quarters to open up additional.
Aaron Christiansen: Financing capacity, because we're always opportunistically looking.
Aaron Christiansen: <unk> at opportunities to add to our portfolio. So I think that gets to the M&A aspect of your question. Yes. We are open to that we want something that is the right fit for our business.
Aaron Christiansen: And we're very careful in assessing those opportunities and of course, we've had the success with the Altra pet Crystal Cat litters.
Chris Lamson: As Chris mentioned that is right on target based on the business case that we established for that acquisition.
Chris Lamson: As I look to the rest of the year Theres continued funding for Aaron and his team and the plan is to fund some strategic growth initiatives. So that we've got capacity to grow beyond FY 'twenty.
Chris Lamson: And that's how we're looking at it for now.
Chris Lamson: Great.
Speaker Change: We have a question from Ethan Star are there any actions by the Trump administration that would either positively or negatively affect the renewable diesel market great take that.
Chris Lamson: Yes, I think.
As far as the renewable diesel market today. There is these plants that have come on are new so.
Chris Lamson: They're going to continue to produce there'll be ups and downs in terms of the credits that they get from the government, which will help those companies be more profitable or less profitable, but the competitive landscape is theyre going to continue to produce.
Chris Lamson: This industry is going to be stable as we move forward in the years to come.
Chris Lamson: Okay.
Speaker Change: Next question is from Robert Smith headwinds from cost of natural gas rising prices any actionable offset.
Speaker Change: Darren take that one Robert we don't actually view, the rising cost of natural gas as a headwind.
Speaker Change: I'll kind of take the opportunity to.
Speaker Change: Remind our shareholders that we do forward purchased natural gas.
Speaker Change: For a reasonable percentage of our gas consumption needs that helps buffer at anchor prices. In addition, we monitor markets multiple years ahead.
Speaker Change: And evaluate our pricing and financial models based on where we expect natural gas to go.
Speaker Change: Nothing that is currently underway with the mild a modest rise in natural gas prices was unexpected and unplanned for.
Speaker Change: Bolton our forward purchases that go out as far as five years.
Speaker Change: As well as the way, we financially model gas prices.
Speaker Change: Okay.
Speaker Change: Yeah.
Speaker Change: John Bair has a question you noted softer sales of cat litter and industrial floor absorbent products for the Canadian subsidiary is your view that this is a seasonal issue or is more related to economic pressures in Canada that could become more prolonged due to the trade arguments now underway.
Speaker Change: Chris.
Speaker Change: I'll take that.
Speaker Change: Yes, I would say first relative to the quarter there were some unique challenges some of them more.
Speaker Change: Actually whether based some of them more.
Timing with retailer based.
Speaker Change: In fact, we had a new distribution going into a major retailer.
Speaker Change: Canada, a very major retailer that was intended to ship in the second quarter and has shifted to the third quarter impacted shipped this past week.
Speaker Change: So I would not say that there is anything particularly systemic there.
Speaker Change: In general.
Speaker Change: We do.
Speaker Change: Phil R R.
Speaker Change: Litter in Canada, and have Havent facility near Montreal.
Speaker Change: That.
Speaker Change: Gives us actually a unique opportunity relative to most of the players in the category.
Speaker Change: To speak to made in Canada, which.
Speaker Change: Is quite popular up there as I'm sure you have gathered in may of <unk>.
Speaker Change: Driven your question so.
In general relative to what's going on relative to tariffs with our friends to the north we see this as a bit of an opportunity and the teams working on.
Speaker Change: How to highlight where our product is manufactured to be clear.
Speaker Change: It's U S clay coming.
Speaker Change: Coming coming north of the border that is not currently impacted by tariffs.
Speaker Change: But ultimately finish and manufactured in Canada and celebrate that.
Speaker Change: Great.
Speaker Change: Okay. Thank you.
Speaker Change: Miller Ventura has another question. He asked you've received 10 consecutive quarters of margin expansion. Despite rising input costs, what specific operational improvements our pricing strategies have been most effective and how sustainable.
Speaker Change: Do you view today's margins in the context of past company history, and looking ahead to the new normal.
Speaker Change: So I'm going to have both.
Speaker Change: Both Aaron Christiansen and Chris Lamson.
Speaker Change: To add some comments on that question Aaron do you want to go first in terms of operational improvement.
Speaker Change: Yes.
Aaron Christiansen: We alluded to it earlier, we're constantly looking at ways to use our reinvestment and capital plan to drive cost compression and operational efficiency.
Aaron Christiansen: And there are definitely are those so we find places where we're reinvesting back in our facilities to drive cost compression and capacity at the same time to provide our commercial team's opportunity to sell more crystal talk there in a second and then I'll close with before handed the baton to Chris. In addition, our manufacturing team every single day.
Aaron Christiansen: He is looking for ways to make tomorrow better than today through traditional manufacturing operational efficiency improvement.
Yeah, I'll just chime in there.
Aaron Christiansen: And that kind of the other half of that equation.
Speaker Change: I will say and I would emphasize this a number of times I think Aaron and his team even coming out of the supply chain malaise that was that was it.
On the back end of Covid have really enabled us to sell when your service levels say in our division, our consumables division up against the retailer north of 99%.
Speaker Change: It's a heck of a lot easier to have a pricing conversation with the retailers. So that's perhaps tax.
Speaker Change: Relative to really creating value from sorbent minerals, and playing mining ball as Dan talked about at the beginning I would say there is really kind of three buckets that.
Speaker Change: We work against this.
Speaker Change: Driving some of that margin improvement or a big contributor to that margin improvement. So the pricing opportunities that you talked about specifically.
Speaker Change: Keith alluded to it we really work to understand the value that we're creating for our customers and in certain of our businesses our consumers as well.
Speaker Change: That may be understanding the value of substitutes that would be a good example, in our AG business for instance in the litter business. If you if you double click on that you've got a dynamic where.
Speaker Change: Really the category is not terribly elastic people are not going to get rid of their cats, nor their cap is going to go to the bathroom less because catheter got more expensive right.
Speaker Change: But fun.
Speaker Change: Fundamentally, especially as the value player our value gaps versus our competitors are key we study the heck out of those we understand how our business reacts when those gaps change and we make adjustments in our pricing strategies to really optimize value there.
Dan Jaffee: Dan really talked about at the beginning.
Dan Jaffee: Big piece of playing money ball is really driving the MX and.
Dan Jaffee: And driving the strategic businesses and Susan hit on exactly that its our fluids purification business, our Amazon business.
Dan Jaffee: And our lightweight litter business specifically.
Dan Jaffee: Which now includes crystals one of the reasons, we bought crystals as I've told you before is because its lightweight.
Dan Jaffee: And all of those businesses create additional value for our consumers and ultimately create additional value for US and then lastly, I would say even within the business units. Our sales teams have become very adept at understanding margin structure, and where we can drive the most value and theyre out managing the mix with.
Dan Jaffee: With their prospective customers so three key components there.
Dan Jaffee: And a lot of focus being put against all three.
Dan Jaffee: Thank you alright.
Speaker Change: Alright, we have a question from Bill Anderson at Bard Associates, and he asks is light weight cat litter still gaining share and I'm going to have Laura Sheila answer that one sure hi, Bill Thanks for the question.
Laura Sheila: On the lightweight cat litter, we're really pleased that the lightweight segment is growing there is some new products in a lot of promo activity and which is really helping the segment grow.
Speaker Change: Our share has.
Laura Sheila: Slightly.
Laura Sheila: But a little chip in the short time out of our share is good for our long term strategy of growing the segment.
Laura Sheila: I think as Chris kind of explained during our annual meeting presentation.
Laura Sheila: We would always prefer to have a slightly smaller share of the larger pie.
And as we see the lightweight segment growing it's great opportunity for both our branded and private label products and feel great about the fundamentals of our claim.
Laura Sheila: Great.
Next question is from John Bair, you noted strategic investment in data analytics can you elaborate on what that means for example are those expenditures internal for AI applications or alternatively, engaging third parties in those efforts.
Laura Sheila: No.
Speaker Change: Absolutely. Thanks for the question, John and you heard Dan talk a little bit about this at the beginning.
Speaker Change: We evolve our game of <unk>, a calling here at oil dry.
Speaker Change: We realize that there is more value if we can turn data into dollars and so what that looks like is a multiyear effort. This is really kicked off in earnest here in fiscal 2025. It involves investments in people and skill sets and involves investments in platforms and investments in tools that make it easy to me.
Speaker Change: <unk> the data.
Speaker Change: To your question about internal versus external it's actually made up of both of those components.
Speaker Change: We are adding a new leader of data analytics to our company starting next week actually so excited about that.
Speaker Change: But we also use third party offshoring to help build out some of what we're doing here. So it's a combination that will.
Speaker Change: Move across fiscal 'twenty five in fiscal 'twenty.
Speaker Change: Great.
Speaker Change: Susan I'm actually going to have you answer. The next question from John Bair, what are you seeing as far as customer payment trends for your accounts receivable do you see any slowdown or stress on customers to pay as expected any easing of reorder volumes by customers.
Speaker Change: So I do see a shift in our trends in that as we sell more.
Speaker Change: In certain businesses, especially those outside the U S. As they become a bigger part of our portfolio our days sales outstanding tend to be a bit higher.
Speaker Change: But if I turn that on its head and say well what about our percent current that is actually as strong as it's been and that continues to trend even more favorably. So no I don't see any stress.
Speaker Change: <unk> in the actual overall trend right.
Speaker Change: Great.
Speaker Change: Okay next one from Tyler Ventura in a recessionary environment do you expect your litter brands to take share on consumers trading down in price.
Speaker Change: Our consumer habits and brand loyalty pretty resilient for the category overall.
Laura Sheila: Laura Sheila sure Tayo.
Tyler Ventura: Tyler Thanks for the question.
We don't know if we see the trend in the trade down of brands, but we see the trade down in channel, which is where our products perform really well.
Chris Lamson: As Chris mentioned, we kind of always are focused on our value proposition.
Chris Lamson: <unk> and our branded and private label products are well poised in the value channel.
Chris Lamson: To set us up for success in a recessionary environment.
Speaker Change: Great. Okay. We have time for one last question and this is again from Tyler.
Tyler Ventura: How large sorry, let me go back the booth purification business is benefiting from new renewable diesel plant in North America. How large is this market opportunity and what competitive advantages as oil drive to invest in this space and what investments might be needed to fully capitalize on this growth.
Speaker Change: But.
Speaker Change: Thank you for the question Tyler this market will continue to grow over the next three to five years as more plants come on.
Speaker Change: You also see some business I think in Latin America will start to get into this market later in 'twenty six 'twenty seven.
Speaker Change: Our unique mineral.
Speaker Change: Really efficiently removes metals and contaminants that the customer wants remove to protect downstream catalyst beds and.
Speaker Change: And then in addition.
Speaker Change: We built capacity to take advantage of the future growth. So right now as we sit today, we're in a very good place and if the market continues to grow in three to five years, we may have to look at expanding our operation, but at this point, we're in a very good position to serve as the market.
Speaker Change: And I'll, just add to that because I can't help myself because of some recent investments that Aaron and his team have made yes.
Speaker Change: Prepared for this market.
Speaker Change: <unk>.
Speaker Change: Okay. So we are out of time.
Speaker Change: Do you want to.
Speaker Change: Included with any last minute remarks.
Speaker Change: No just again the team is functioning at a very high level or was it was great for me to sit back and listen to you guys feel to all of our questions.
Speaker Change: I am Mr. Irrelevant, just call me brought pretty if you want those sports fans will know what I'm talking about so great job team great job oiled Ryan. Thank you our long term shareholders.
Speaker Change: And we will be back at you in another 90 days or so.
Speaker Change: Well thanks.
Speaker Change: This concludes today's conference call. Thank you for participating and you may now disconnect everyone have a great day.
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Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Sure.
Speaker Change: Great.
Speaker Change: Yes.
Speaker Change: Sure.
Speaker Change: Right.
Speaker Change: Yes.
Speaker Change: Great.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: Yes.
Okay.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Sure.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Got it.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: [music].
Thanks.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Thanks.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Thank you.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Sure.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: [music].
Yes.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Okay.
Yes.
Speaker Change: Yes.
Speaker Change: Okay.
[music].
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Sure.
Yes.
Speaker Change: Yes.
Speaker Change: Yes.
Speaker Change: Sure.
Speaker Change: Sure.
Speaker Change: Sure.
Speaker Change: Sure.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: [music].
Speaker Change: Yes.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Yeah.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: [music].
Sure.
Speaker Change: Yes.
Speaker Change: [music].