Q3 2025 Prestige Consumer Healthcare Inc Earnings Call
Okay.
Thank you for standing by and welcome to prestige consumer Health Care's third quarter, 'twenty 25 earnings conference call.
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Speaker Change: I would now like to hand, the call over to Phil Circuit Lately, Vice President Investor Relations and Treasury.
Speaker Change: Please go ahead.
Speaker Change: Thanks, operator, and thank you to everyone who has joined today.
Speaker Change: On the calls me are Ron Lombardi, our chairman, President and CEO, and Christine Sacco, our CFO and COO.
Speaker Change: On today's call to review, our third quarter fiscal 2025 results discuss our full year outlook and then take questions from analysts.
Speaker Change: A slide presentation accompanies today's call.
Speaker Change: Access by visiting prestige consumer healthcare dot com clicking on the investors link and then on today's webcast and presentation.
Speaker Change: Remember some of the information contained in the presentation today include non-GAAP financial measures.
Reconciliations to the nearest GAAP financial measures are included in our earnings release and slide presentation.
Speaker Change: On today's call management will make forward looking statements around risks and uncertainties, which are detailed in a complete safe harbor disclosure on page two of the slide presentation that accompanies the call.
Speaker Change: These are important to review and contemplate.
Speaker Change: Business environment uncertainty remains heightened due to supply chain constraints evolving U S and international tariffs and inflation, which have numerous potential impacts.
Speaker Change: This means results could change at any time and the forecasted impact of risk considerations as a best estimate based on the information available as of today's date.
Speaker Change: Further information concerning risk factors and cautionary statements are available in our most recent SEC filings and most recent company 10-K.
Speaker Change: I'll hand, it over to our CEO, Ron Lombardi right.
Ron Lombardi: Thanks, Joe let's begin on slide five.
Our solid third quarter results exceeded the expectations, we communicated back in November and resulted in both record quarterly sales and EPS.
Ron Lombardi: Net sales of 290 million increased nearly 3% versus the prior year and was above our forecast we experienced continued strong international growth, including for the hydro like brand.
Ron Lombardi: Coupled with broad based growth across nearly all of our North American categories. This included year over year growth in the Summer's Eve brand within the women's health category.
Ron Lombardi: Well as sequential sales improvement for clear eyes.
Earnings increased sharply in Q3 by 15% to a record quarterly EPS of $1 22, reflecting our strong sales growth a stable gross margin and disciplined capital deployment, that's led to both lower interest expense and share count.
Ron Lombardi: Lastly, our strong free cash flow continues to enable capital deployment options that we use to enhance shareholder value.
Ron Lombardi: Q3, we reduced our variable term loan debt balance to zero and continued to opportunities opportunistically repurchase shares while improving our leverage ratio to two five times.
Ron Lombardi: Chris will discuss our financial profile and go forward capital priorities in greater detail later on.
Ron Lombardi: Now, let's turn to page six for a review of our Gi category.
Ron Lombardi: Our fast growing Gi business represents nearly one fifth of North American sales. The category features wide ranging Gi solutions that are shown on the left of the page.
Ron Lombardi: Portfolio is headlined by three iconic Gi brands.
Ron Lombardi: <unk> fleet and Gaviscon, each solves for unique consumer needs and Leverages, our wide assortment of brand building capabilities to drive long term growth.
Ron Lombardi: Dramamine is synonymous with motion sickness and nausea categories. It recently celebrated its 75th anniversary and continues to remain the clear market defining brand.
Ron Lombardi: Our sales continue to grow nicely through a combination of engaging marketing featuring our drama Lama that encourages consumers to catch the drama as well as consistent innovation.
Ron Lombardi: Our most recent innovation includes Dramamine advanced durables, which features ingredients specifically designed to help consumers deal with nausea and stress.
Ron Lombardi: Next the fleet brand as a clear market leader with a 100 plus year history since its creation by Charlie Browne fleet today.
Ron Lombardi: Today, it stands with over a 50% share of the rectal laxative category.
Ron Lombardi: The brands core assortment of animals, and suppository provide rapid constipation or at least for consumers when they need it most.
Ron Lombardi: We're also successfully leveraging the brands deep consumer trust to expand into adjacent categories, such as oral accidents, where consumers know and trust the fleet brand for lack of a relief in other forums.
Ron Lombardi: This expansion builds naturally under Brian brands longstanding heritage.
Ron Lombardi: Lastly, our Gaviscon brand in Canada continues to grow nicely with targeted marketing and consistent innovation that we discussed in detail last quarter.
Ron Lombardi: So in summary, a wide ranging portfolio, leading Gi brands have time tested brand building that is used to drive long term growth in their own unique ways.
Ron Lombardi: The Formula continues to work driving solid mid single digit growth over the last three years in total and has set us up well for future success.
Ron Lombardi: With that I'll turn it over to Chris to discuss the financials.
Chris: Thanks, Brian.
Speaker Change: Turning to slide eight and review our third quarter fiscal 25 financial results as a reminder, the information in today's presentation includes certain non-GAAP information is reconciled to the closest GAAP measure in our earnings release.
Speaker Change: Q3 revenue of $293 million increased two 7% or two 3%, excluding FX versus the prior year.
Speaker Change: In the North American segment, we experienced broad based growth, which included a nice growth in Gi category brands that Brian highlighted earlier, partially offset by lower cough and cold sales, which we expected inter.
Speaker Change: International segment sales grew approximately 8% excluding FX headlined by Hydrolyte.
Speaker Change: EBIT margin was consistent in the low thirties and up 5% versus the prior year.
Speaker Change: Diluted EPS of $1 22.
Speaker Change: Quarterly record and increased 15% versus prior year, thanks to the benefits of our capital allocation strategy and reductions in interest expense and share count.
Speaker Change: Let's turn to slide nine for detail around consolidated results for the first nine months.
Speaker Change: For the first nine months of fiscal 'twenty, five revenues decreased 90 basis points organically versus the prior year.
Speaker Change: By segment, excluding FX North American segment revenues decreased two 1% and international segment revenues increased six 2% versus the prior year.
Speaker Change: The first nine months sales declines were due to anticipated impacts of the clearer I supply chain constraints previously discussed the planned impact of retailer ordering in the cough and cold category and women's health declined largely in the first quarter.
Speaker Change: We are pleased to report that we are experiencing our second quarter of sequential improvements in summer's Eve with third quarter sales, increasing slightly versus the prior year and clear eyed sales growing sequentially as well.
Speaker Change: E. Commerce was also a highlight continuing its trend of double digit year over year channel growth in the long term trend of higher online purchases of our brands.
Speaker Change: As expected total company gross margin of 55, 2% in the first nine months was down slightly versus the prior year, owing to the expense associated with expedited freight of clear eyes.
Speaker Change: Q4, we anticipate a gross margin of approximately 57% with the increase largely attributable to the timing of certain cost saving efforts.
Speaker Change: Looking ahead in terms of tariffs are unique business attributes leave us well positioned to manage further changes in inflation, which include tariffs.
Speaker Change: We continue to plan and manage our actions to respond quickly to any future changes in tariffs and other related inflation.
Our needs based consumer healthcare brands and their leading market share leave us well positioned to execute further pricing and cost saving efforts as necessary to offset the impact of few translation.
Speaker Change: Advertising and marketing with 14, 1% as a percentage of sales for the first nine months.
Speaker Change: For fiscal 'twenty, five we still anticipate making them up in dollars versus the prior year.
Speaker Change: G&A expenses were nine 6% of sales in the first nine months and we still anticipate full year G&A of approximately nine 5% as a percent of sales.
Speaker Change: Finally, adjusted EPS of $3 20, compared to $3 19 in the prior year with slightly lower revenues and the timing of A&M and G&A spend offset by more favorable interest expense.
Speaker Change: Our Q3 tax rate was 23, 9%, resulting in a first nine months normalized tax rate of 23, 7% and we anticipate a stable tax rate in Q4.
Now, let's turn to slide 10, and discuss cash flows.
Speaker Change: For the first nine months, we generated $184 9 million and free cash flow up 5% versus the prior year, we continue to maintain industry, leading free cash flow and are maintaining our outlook for the full year of $240 million or more.
Speaker Change: We reduced our variable term loan debt balance to zero in the quarter, leaving just to fixed cost attractively priced notes with maturities in 2028 and 2031.
Speaker Change: We continue to repurchase shares Opportunistically and for the first nine months, we've repurchased approximately 600000 shares for $40 million.
Speaker Change: We achieved a covenant defined leverage ratio of two five times in Q3.
This improved ratio robust free cash flow and consistent business performance gives us strategic flexibility with our capital deployment moving forward.
Speaker Change: We will continue to evaluate further opportunistic repurchases as well as M&A as part of a disciplined capital deployment strategy and expect to build some cash on the balance sheet to support these efforts given the attractive rates of our remaining fixed debt and with that I'll turn it back to Ron.
Speaker Change: Thanks, Chris, Let's turn to slide 12 to wrap up.
Speaker Change: Our business remains healthy and we are on pace to exceed the earnings outlook. We gave at the start of the year are accelerating business momentum is a testament to our proven business strategy and diverse diversified portfolio for.
Speaker Change: For fiscal 'twenty five we now anticipate revenues of $1 billion $1 $28 billion to $1 billion $1 32, with an FX headwind expected in Q4.
Speaker Change: Our organic revenue growth forecast of approximately 1% versus fiscal 'twenty four remains unchanged.
Speaker Change: We're forecasting Q4 revenue of approximately $290 million.
Speaker Change: We now anticipate adjusted EPS of approximately $4 50 for the full year, thanks to our debt reduction efforts and a lower interest costs.
Speaker Change: This implies fourth quarter EPS of $1 30.
Speaker Change: Lastly, we continue to anticipate free cash flow of $240 million or more thanks to our improved leverage ratio and a strong financial profile the.
Speaker Change: The result is ample capital deployment Optionality moving forward that allows us to drive upside and maximize shareholder value.
Speaker Change: With that I'll open it up for questions operator.
Speaker Change: Okay.
Speaker Change: Thank you as a reminder to ask a question you will need to press star one on your telephone to remove yourself from the queue. Please press star one again, please standby, while we compile the Q&A roster.
Speaker Change: Our first question.
Speaker Change: Comes from the line of <unk> <unk> of Oppenheimer <unk> Company. Your question. Please refresh.
Speaker Change: Good morning, Thanks for taking my question. So maybe just going back to <unk>. So if you could just remind us how you think about the recovery going forward, what youre seeing from an in stock perspective, our retail and then just when you think we'll get back to normalized levels.
Speaker Change: The channel Thank you.
Speaker Change: Good morning from past, so clear eyes for the third quarter production levels were pretty much in line with what we had expected for the quarter.
Speaker Change: We're a little bit ahead as some of the.
Speaker Change: The timing of some quarter end shipments enabled us to get it in and out of the warehouse.
Speaker Change: At the end of the quarter. So that was just timing differences between Q3 and Q4 for Q4, we anticipate a level of sales.
Speaker Change: To be similar to Q3 again because of that timing, but we anticipate a continued slight increase in production levels.
Speaker Change: Going forward. So looking ahead continues to kind of be a balancing act between short and long term objectives. As we look to continue to support service levels and in stock levels. The best we can while allowing the suppliers to continue to make investments and improvements to support longer term.
Speaker Change: Capacity increases.
Speaker Change:
Speaker Change: So as we look forward, we expect our sales to the retailers to continue to ramp up slowly going forward each quarter with a likely.
Speaker Change: Increase in the second half of 2006 as we see.
Speaker Change: Increases in supply from the current suppliers and the addition of a couple of additional suppliers into the network. So this is going to continue to improve slowly and incrementally each each quarter going forward with passion.
Speaker Change: Okay, Great and then maybe just going back to your.
Speaker Change: Your expectations for Q4, I think before the expectation was for gross margins to increase in Q4. So just more clarity on the puts and takes as you look at the balance of the balance of the year on the gross margin line.
Speaker Change: Yes, hi, good morning, <unk> so.
Speaker Change: Gross margin step up excuse me in Q4 is really driven by the timing of cost saving initiatives and we're not counting on any one thing. There's a number of projects have been in the works now for a couple of years.
Speaker Change: They will start running through the P&L in the fourth quarter.
Speaker Change: Great and then maybe just one final question I know youre not ready to give guidance for the upcoming fiscal year, but is there any initial puts and takes as you look forward.
Speaker Change: Towards the next fiscal year.
Speaker Change: Yes, so obviously, we feel good about the business right, we just reported record sales and EPS.
Speaker Change: We have solid momentum as we finish up this year and head into fiscal 2006.
Speaker Change: We'll have more to share in may, but that's how we're feeling about the business overall.
Speaker Change: Okay, great. Thank you I'll pass it along.
Speaker Change: Thank you.
Speaker Change: Our next question comes from the line of Susan Anderson of Canaccord Genuity. Your line is open Susan.
Susan Anderson: Hi, good morning, nice job on the quarter.
Susan Anderson: I was wondering maybe if you could talk a little bit about the cold coffee then obviously it was a week. It does seem like it's picked up lately I guess is this gonna help fourth quarter or is it really just about clearing inventory out there and then also do you feel like the inventories a little bit high at retail right now across the category and can we I guess in the season clean.
Susan Anderson: Thanks.
Ron Lombardi: Good morning, Susan.
Speaker Change: After lake to start talking about cough cold reminding everybody that.
Speaker Change: It isn't a significant element of our portfolio at seven ish percent of sales.
Speaker Change: So whether it's a good bad or indifferent cough cold season, it really doesn't move our needle in the third quarter is a great example of not only that but the benefits of a diverse portfolio. So cough cold was sales for us were down quite a bit.
Speaker Change: In the third quarter for the whole year, we anticipated it to be flat to down slightly at the beginning of the year. It looks like it's going to be down a bit more than that.
Speaker Change: At this point so despite the fact that I think as we finished up December and got into January incident levels have picked up.
Speaker Change: Im not sure Thats kind of result, and retailer Reorders at this point as a matter of fact to the third quarter, we have seen.
Speaker Change: <unk> away at this.
Speaker Change: Self.
Speaker Change: The above shipments and so retailers at least for our categories and our products seem to be working down the inventory that they built it with their preseason buy so at this point I'm not sure I would anticipate any increase in reorder rates.
Speaker Change: For our products.
Speaker Change: Okay, Great. That's helpful. And then maybe if you could just talk a little bit more about your exposure to tariffs now.
Speaker Change: Potentially move to also Canada, Mexico, Europe and then.
Speaker Change: Well, maybe if you could talk about do you have any exposure there I know most of the manufacturing in the U S. But if you could just kind of give us some more color there.
Speaker Change: Good morning, Susan So tariffs just like everyone. We're watching carefully for implications not just for finished goods, but other other direct derivative elements and we'll understand that better as the landscape becomes clearer.
Speaker Change: Tariff is the costs just like any other costs that we would address.
Speaker Change: While we do source some of our products from the countries are expected to be impacted in aggregate. The business is well diversified and that includes our supply base.
Speaker Change: As a reminder, the vast majority of our manufacturing is in the U S. With the small remaining manufacturing fairly diversified across other countries and continents and we think this is a strategic advantage versus others as things unfold.
Speaker Change: I think given the fluidity of the situation it wouldn't be prudent for us to speculate at this time, there's still a lot of unknowns out there.
Speaker Change: We need to understand the different variables, but we're running scenarios and we will be agile.
Speaker Change: While in a responsive actions as we work through the pandemic period.
Speaker Change: Okay, great. Thanks, so much good luck next year.
Susan: Thanks, Susan.
Susan: Thank you.
Susan: Our next question.
Susan: Comes from the line.
Susan: Keith Davis of Jefferies. Your question. Please Keith.
Keith Davis: Hey, Thank you good morning, guys, maybe just doubling back quickly to the.
Susan: I dropped recovery.
Susan: We can see some competitors are obviously.
Speaker Change: Benefited while you guys had been off the shelf. So as you think about the full stages of the recovery are you expecting anything from a promotional.
Speaker Change: And the need to change from a promotional intensity standpoint, and how you kind of expect consumption to involve to evolve as you get back on shelf.
Speaker Change: Yes.
Speaker Change: Clear eyes is by far the leading.
<unk> brand and units at retail so we've got a long heritage in connection with consumers. We are seeing transferability amongst skus for clearer ISO if one SKU happens to be out at a retail location, we're seeing our consumers reach for different clear right. So we don't.
Speaker Change: Need to have a different approach around promotional activity or spending.
Speaker Change: To continue to connect with the consumers.
Speaker Change: They're going to go look for that clear eyes product, it's important to them. So.
Speaker Change: Service levels arent exactly and in stock levels aren't where we want them to be as I had mentioned earlier, we're focused on that balance between making sure. We're doing the right things to support long term demand with our supply network.
Speaker Change: And getting as much product into the.
Speaker Change: And to the retailers' shelves as soon as possible so.
Speaker Change: We expect that we'll be able to regain and retain our historic levels of.
Speaker Change: <unk> share over time.
Speaker Change: Yeah.
Speaker Change: Got it that's helpful.
Speaker Change: And then maybe just switching to the hydro.
Speaker Change: The brand has obviously been very successful.
Speaker Change: You guys have acquired the remaining rights and other markets and so.
Speaker Change: Maybe just adding some context on how you expect the brand to evolve what plans are very investment you plan to put behind it now that you have the rights and some other countries.
Speaker Change: And maybe it's just expected contribution not.
Speaker Change: You can see from the branding the momentum continuing.
Speaker Change: Yeah, so for starters rate the hydro brand in its core core market of Australia continues to be the classic example of how we think about long term brand building.
Speaker Change: Starting in hydro as case with growing the category and getting consumers to think about hydration is an important element of taking care of their health. So we think we've got a long runway there.
Speaker Change: It was about six years ago, we bought the first tranche of international regions for Southeast Asia, except for China.
Speaker Change: And then more recently, we bought the rest of the world's rights with the exception of the U S and in most of those territories Hydrolyte.
Speaker Change: It didn't have any presence so it's going to be a slow build as we build out a distribution network work with retailers to understand the offerings and then work to connect.
Speaker Change: With consumers so that they understand that there is a product with this with these benefits out there and available for them. So it'll be a slow build over time, but.
Speaker Change: Proposition in a way to connect with consumers that we think will.
Speaker Change: Uh huh.
Speaker Change: Grow nicely over the long term.
Speaker Change: Yes.
Speaker Change: Yes.
Speaker Change: Got it thank you I'll pass it on.
Speaker Change: Great. Thanks, Steve.
Speaker Change: Thank you.
Speaker Change: Our next question.
Speaker Change: Comes from the line of David Shack now of William Blair. Please go ahead David.
David Shack: Hey, good morning.
Speaker Change: Just had a question on international I think it was a bit higher than many of US expected and you mentioned in the press release that it came from broad based growth. In addition to hydro light can you expand on some of that growth outside of hydro and where that occurred.
Yes, so maybe I'll start with there and I'll, let Chris I think if you look at across the brand portfolio further for the care business.
Speaker Change: Almost all the biggest brands there so FES mirroring that it in for example, actually had strong growth. So this isn't the first time that we've seen this and I've commented in the past that care is hitting on a lot of cylinders not just hydrolyte or our international business I think we also had.
Speaker Change: Nice business excuse me a nice growth.
Speaker Change: In our small European business and through our distributor network and.
Speaker Change: South America as well so not just hydro <unk>, it's really the broader portfolio.
Speaker Change: Great I'll pass it on.
David Shack: Thanks, David.
Speaker Change: Thank you.
Speaker Change: Our.
Speaker Change: Question.
Speaker Change: Comes from the line of Linda Bolton Weiser of D. A Davidson your question. Please Linda.
Speaker Change: Yeah.
Speaker Change: Yes, Hello, Thank you.
Speaker Change: Congratulations on the good quarter.
Speaker Change: So I was curious about when you talked about the brand's fleet and drama mean.
Speaker Change: I was wondering on sleep.
Speaker Change: I think you talked about an expansion into oral laxatives.
Speaker Change: I'm just wondering am I understanding that that's like competing with like the big guys like a meta moves so and.
Speaker Change: And if so can you explain kind of why that makes sense and then on dramamine.
Speaker Change: I heard you mentioned anxiety is that a new expansion of the brand into that category and again, what gives the brand the right trying to compete in that in that category. Thanks.
Speaker Change: So then let me start with the Dramamine first launched.
Speaker Change: A product that is for nausea and stress. So when we go out and talk to consumers what are the things. They tell us is that stress is often attributed to cause or.
Speaker Change: Cause being being nauseated, so that's the new product that's there.
Speaker Change: It's done very well at retail for US we launched that I think last at the end of last fiscal year or so.
Speaker Change: For fleet.
Speaker Change: We've launched constipation related products not fiber. So we are inching into the category that other big players have brands into but we're connecting in a way that's more grounded in fleets.
Speaker Change: Position of serious constipation, so we've got a number of products, including stool softeners.
Speaker Change: [noise] out there that we've actually launched again towards the end of last fiscal year, we're growing distributions slowly and connecting with consumers online digital and growing the distribution. So again these products will be positioned in line with the fleet heritage of strong fast.
Speaker Change: And efficacious constipation relief.
Speaker Change: Okay that makes sense.
Speaker Change: I was also wondering you know and love.
Speaker Change: Looking at the Nielsen data and I know it does not tell the whole story, but nevertheless, it does seem like the prior year comparisons on Pos growth do get a little bit harder in the coming weeks.
Speaker Change: Like in the 4% to 10% growth range, which is pretty high can you remind us what that was all about a year ago and then how do you feel about.
Speaker Change: Comping up against that on a pls level. Thanks.
Speaker Change: Yes, we see variability.
Speaker Change: Week to week and Pls stuff weather.
Speaker Change: There is a change in holidays or weather or other factors.
Speaker Change: Super Bowl is a week later this year right. So.
Speaker Change: People are heading into the stores a week later to get their chips dips in Gi stuff I guess, but anyway. So we look at that.
Speaker Change: Step back for a minute we already commented on the fact that we feel really good about the momentum in our business. If you go look at North America for instance, in the third quarter I think we were up year over year in just about every category I think with the exception of one so we saw broad.
Speaker Change: <unk> based.
Speaker Change: Strong performance across the portfolio.
Speaker Change: And we feel good about those trends as we head into the fourth quarter, both from a consumption standpoint, and the ability to hit our hit our outlook for sales and EPS for the fourth quarter.
Speaker Change: Yeah.
Speaker Change: Okay and then my last question is just on.
Speaker Change: Free cash flow I'm, just curious with the increase in earnings guidance why wasn't there a little bump up in the free cash flow guidance.
Speaker Change: Yeah, Linda Hi, it's Chris So the original guide was $240 million or more and I guess that the recent uptick would be the or more apart. So we're holding to that but.
Certainly feel good about the cash flow at this point.
Speaker Change: Okay sounds good thanks, a lot thank.
Linda: Thank you Linda.
Linda: Thank you.
Speaker Change: Our next question comes from the line of Anthony <unk> of Sidoti <unk> Company. Please go ahead Anthony.
Good morning, everyone and thank you for taking the questions. So.
Speaker Change: As far as the gross margins. So I know you were expecting.
Speaker Change: Increased sequentially in the fourth quarter, 57%.
Speaker Change: Looking back.
Speaker Change: Prior to Covid I guess, you guys were close to 58%.
As you as we look out into the future here do you think there is an opportunity to get back to those historical gross margins or if not how should we think about that.
Speaker Change: Yeah, Hi, Anthony so so longer term, obviously, we'll continue the path of continued cost saving measures.
Speaker Change: We will launch a margin accretive new products.
Speaker Change: And so we would anticipate slowly creeping that margin up over time. Just a reminder, we are trying to manage to a low to mid <unk> EBITDA margin. So to the extent our gross margin is moving you're likely to see a change in our in our A&M, our G&A spend which would which we called operating income margins pretty flat. So.
Speaker Change: That's our expectation for the future, but nothing structural that's happening in gross margin that we don't think we can recover over time.
Speaker Change: That's great to hear and then.
Speaker Change: With the free cash flows.
Speaker Change: The business now you're paying off the debt.
Speaker Change: Variable debt that is.
Speaker Change: What's your appetite for acquisitions and what's the pipeline looking like these days.
Speaker Change: Yeah. So certainly after investing in our brands M&A is our second focus for free cash flow followed by opportunistic repurchases and then debt reduction which will come in the form of cash build for now.
Speaker Change: Our appetite for M&A is held.
Speaker Change: Healthy as ever I mean, we are looking at a lot of things, we always say we.
Speaker Change: Haven't been out of the market, we just remain disciplined and when we find something that meets our very well defined specific criteria.
Speaker Change: We will move forward with it but for now.
Speaker Change: We sit here today the pipeline, there's a lot out there we're looking at all of it.
Speaker Change: It's kind of the same as it's been for a number of years now so just given the nature of the fragmented space.
Speaker Change: There'll be a lot of opportunities going forward, we will continue to remain disciplined and we will look at a lot.
Speaker Change: Alright, well, thank you very much and best of luck.
Speaker Change: Thanks Anthony.
Speaker Change: Thank you I would now like to turn the conference back to Ron Lombardi for closing remarks, Sir.
Speaker Change: Thank you operator, and thanks to everyone for joining us today, and we look forward to providing an update in may. Thank you.
Speaker Change: Have a great day.
Speaker Change: This concludes today's conference call. Thank you for participating you may now disconnect.
Speaker Change: Okay.
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Speaker Change: Okay.
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