Q4 2024 SpartanNash Co Earnings Call
Welcome to the Spartan-Esch Fourth Quarter and Fiscal 2024 Earnings Conference Call.
At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session.
I would now like to turn the conference over to Kayleigh Campbell, Spartan Ash Head of Investor Relations. Please go ahead.
Speaker Change: Thank you and good morning. On the call today from the company are President and Chief Executive Officer Tony Sarsam and Executive Vice President and Chief Financial Officer Jason Monaco.
Speaker Change: By now, everyone should have access to the earnings release, which was issued this morning at approximately 7 a.m. Eastern time.
Speaker Change: For a copy of the earnings release, as well as the company's supplemental earnings presentation, please visit Spartan Ash's website.
Speaker Change: This call is being recorded and a replay will be available on the company's website.
Speaker Change: Before we begin, the company would like to remind you that today's discussion will include a number of forward-looking statements. These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements.
Speaker Change: If you will refer to Spartan Ash's earnings release from this morning, as well as the company's most recent SEC filings, you will see discussion of factors that could cause the company's actual results to differ materially from these forward-looking statements.
Speaker Change: Please remember that all forward-looking statements made today reflect our current expectations only, and Spartan-Nash undertakes no obligation to update or revise these forward-looking statements.
Speaker Change: The company will also make a number of references to non-GAAP financial measures. The company believes these measures provide investors with useful perspective on the underlying growth trends of the business, and it has included in the earnings release a full reconciliation of certain non-GAAP financial measures to the most comparable GAAP measures, which can be found on Spartan Ash's website.
Tony Sarsam: And now it is my pleasure to turn the shawl over to Tony.
Tony Sarsam: Thank you, Kayleigh, and good morning, everyone. Glad to be here.
Tony Sarsam: As we normally do, I would like to start today's call with a focus on our people. Spartan Ash is harnessing the power of both our people-first culture and our performance culture to win in grocery. During a recent company-wide town hall, we provided our associates with details of our 2025 Master Action Plan.
Tony Sarsam: We are working cross-functionally with a disciplined focus on finishing every mission within a strategic plan. Finishing every mission requires the imagination to explore new possibilities, the desire to say yes, the discipline to get things done with haste, and the sheer will to overcome obstacles and drive results.
Tony Sarsam: One proof point that reflects our progress with our People First culture has to do with safety. Since 2020, we have improved our safety KPIs by a remarkable 83%, and in 2024, we also improved our 90-day new high retention rate by nearly 5%, exceeding our goal for the year.
Tony Sarsam: Before jumping into our financials, I want to provide some color on the overall grocery industry.
Tony Sarsam: Inflation has largely returned to pre-pandemic conditions at around low single digits.
Tony Sarsam: One key element of our Master Action Plan is capturing market share. Our team is leveraging the unique insights of having two complementary, highly synergistic segments, wholesale and retail. This is a core difference between us and others in the space.
Tony Sarsam: We've done a ton of work, but still have many opportunities ahead. And I want to thank all of our associates for being part of this incredible journey.
Tony Sarsam: Okay, shifting gears to our results, we finished the year strong, delivering our third consecutive year of record-adjusted EBITDA.
Tony Sarsam: Though our full-year net sales were down a little less than 2% to $9.55 billion, we returned to growth in Q4, with sales increasing more than 70 basis points compared to the prior year quarter.
Tony Sarsam: In retail, net sales increased over 100 basis points to more than $2.84 billion.
Tony Sarsam: Incremental sales from the acquired stores in 2024 more than offset slightly softer demand we experienced within some of our existing stores. We were very pleased with the early performance of our newly acquired stores.
Tony Sarsam: From a retail comparable sales standpoint, we've seen a positive progression in comp sales throughout 2024, ending the year with a decrease of 0.7% comp sales in Q4. Notably, our largest market, Michigan, had positive comps in the last two quarters.
Tony Sarsam: Turning to wholesale, net sales for our wholesale business, which includes independent grocery customers, national accounts, and military channels, were over $6.7 billion.
Tony Sarsam: Speaking of the military business, we continue to be very pleased with this channels performance. Military sales have grown for 12 consecutive quarters. This is a unique sales channel that our team was able to turn around and it is now consistently generating accretive results.
Tony Sarsam: along with having a great sense of pride in serving our armed forces and veterans. We also see this channel as an avenue for additional organic growth.
Tony Sarsam: Okay, pivoting to the bottom line, we accomplished our third consecutive year of record adjusted EBITDA coming in at $258 million. Notably, we exceeded our expectations in Q4 with adjusted EBITDA increasing more than 9% compared to the prior year quarter.
Tony Sarsam: We generated higher profitability in 2024 due to the improvements we made in wholesale margins, new efficiencies in our DC network, and the contributions from our recently acquired retail stores.
Tony Sarsam: And to give you a little more context of our results, relative to 2019, we have one, increased net sales by over a billion dollars, two, improved adjusted EBITDA by 80 million dollars, and three, expanded adjusted EBITDA margin by more than 60 basis points.
Tony Sarsam: Before I turn the call over to Jason, I want to provide an update on both our retail strategy and M&A.
Tony Sarsam: As you saw in this morning's press release, we took a goodwill impairment charge in the quarter. Jason will discuss the details, but I want to focus on the opportunities within the retail segment.
Tony Sarsam: We are implementing a platform to capture growth in our retail business through organic and organic initiatives. These growth vectors will focus on, one, expanding our remodel capital deployment into select conventional and upmarket stores.
Tony Sarsam: 2. Leaning into the attractive convenience store sector and 3. Leveraging our capabilities in Hispanic food markets by growing our ethnic store footprint in 2025.
Tony Sarsam: As you may recall, last year we launched our Customer Value Proposition.
Tony Sarsam: We are now taking some of the learnings from our CVP pilot and implementing program components into other retail stores.
Tony Sarsam: Also, as you may recall, I introduced our new Chief Retail Officer, Juma Berry, on the last earnings call.
Tony Sarsam: Juma brings a wealth of leadership experience and knowledge in retail operations and strategy. We look forward to providing more details about our retail segment's transformation in the coming months as Juma begins to implement his plan.
Tony Sarsam: Now, on to our recent retail acquisitions. As I mentioned a few moments ago, we are very pleased with the performance of the grocery and convenience stores we acquired in 2024.
Tony Sarsam: In fact, these stores outperformed our forecast in Q4. Looking ahead, we will continue to evaluate M&A opportunities both large and small based on our M&A framework to continue to improve the retail segment overall.
Tony Sarsam: We are taking a balanced and methodical approach to organic and inorganic growth initiatives, which are all designed to improve results and maximize shareholder value.
Tony Sarsam: With that, I'll now turn the call over to Jason to walk you through the quarterly financials and 2025 outlook in greater detail.
Jason Monaco: Thanks, Tony, and welcome to everyone joining us on today's call. I want to highlight some of our key successes from this past year before jumping into the detailed quarterly results.
Jason Monaco: These highlights include, one, achieving a record-adjusted EBITDA of $258.5 million with net earnings of nearly $300,000, two, returning $45 million to shareholders through share repurchases and dividends.
Jason Monaco: 3. Generating $206 million in cash from operating activities, which represents a 130% increase compared to fiscal 2023.
Jason Monaco: and four, maintaining strong liquidity, giving us flexibility to support our long-term strategic plan that includes both organic and inorganic investments.
Jason Monaco: Notably, since launching our strategic plan in 2021, we have generated almost 130 million dollars in total benefits, achieving our plan target of 125 to 150 million dollars a year ahead of schedule.
Jason Monaco: We still have plenty of runway ahead with our margin enhancing initiatives. In fact, we recently implemented a new cost leadership plan.
Jason Monaco: Following a successful pilot, we are already in flight implementing an inventory selecting system using robots in our largest distribution center.
Jason Monaco: This innovative, automated solution is streamlining certain processes and removing manual labor hours.
Jason Monaco: Now, turning to our fourth quarter results. We finished the year strong by pivoting back to growth. Consolidated net sales in the quarter increased by 73 basis points to $2.26 billion versus fourth quarter 2023 sales of $2.25 billion.
Jason Monaco: While we experienced lower volumes in our wholesale segment, we more than offset those trends with incremental sales in our retail segment.
Jason Monaco: Gross profit for the quarter increased to $365 million, or 16.1% of net sales, compared to $339 million, or 15.1% of net sales in the prior year's fourth quarter.
Jason Monaco: The 102 basis point margin increase was driven by pricing, merchandising transformation benefits, and reduced shrink expense.
Jason Monaco: Our reported operating expenses notably included $45.7 million related to the retail goodwill impairment charge that Tony mentioned earlier.
Jason Monaco: I wanted to take a moment to provide more color on the impairment charges. While the recent acquisitions contributed to our goodwill balance and subsequent impairment, the underperformance that led to the impairment is driven by our legacy retail business.
Jason Monaco: We believe that the acquisitions will help us scale our retail operations and grow profitably.
Jason Monaco: Along with acquiring assets that have improved our retail portfolio, we are continuously evaluating the performance of our existing stores. To further improve the portfolio, we are in the process of closing some underperforming stores.
Jason Monaco: Okay, turning back to our quarterly results, compared to the prior year quarter, interest expense increased $1.2 million to $10.9 million due primarily to an increase in borrowings related to our recent acquisitions and capital investments.
Jason Monaco: On a reported basis, our net loss was $35.1 million, or $1.04 per diluted share. This is compared to net earnings of $0.30 per diluted share in Q4 of last year.
Jason Monaco: On an adjusted basis, net earnings increased $2.4 million to $14.4 million, or $0.42 per diluted share, compared to $0.35 in Q4 last year.
Jason Monaco: And notably, we finished the year strong with adjusted EBITDA in Q4 of $58.6 million, increasing 9.2% compared to the prior year quarter.
Jason Monaco: This increase was driven by higher gross margin rates in both segments, including benefits from the merchandising transformation.
Jason Monaco: Contributions from the recently acquired retail stores and lower health insurance costs.
Jason Monaco: The increase was partially offset by lower case volumes within the wholesale segment as well as higher corporate administrative expenses.
Jason Monaco: Now, turning to our segments, compared to the prior year quarter, net sales and wholesale decreased 2.1%.
Jason Monaco: This is primarily due to reduced case volumes with national accounts and independent retailers.
Jason Monaco: These components, the decline in a certain national accounts customer, and the movement of a former wholesale customer to the retail segment, represents approximately 3% of wholesale sales.
Jason Monaco: Wholesale adjusted EBITDA was $43.8 million, an increase of 7.7% compared to last year's $40.7 million.
Jason Monaco: The improved results were driven by a higher gross profit rate and benefits from the Merchandising Transformation Initiative.
Jason Monaco: Wholesale reported fourth quarter operating earnings were $18.3 million, a decrease of 15.6% compared to $21.7 million in the prior year's fourth quarter.
Tony Sarsam: Now, moving to the retail segment. As Tony mentioned, we've seen a positive progression in comp sales throughout 2024, concluding the year with a decrease of 0.7% for the quarter.
Tony Sarsam: and our supermarkets ex-fuel centers were up 8.5% compared to the prior year quarter.
Tony Sarsam: Retail adjusted EBITDA increased to $14.8 million compared to $13 million in the prior year's quarter. The improvement was due to higher sales volumes, improved margin rate, and lower health insurance costs.
Tony Sarsam: Retail reported an operating loss of $46 million compared to earnings of $1.9 million in the fourth quarter of 2023.
With that, let's turn to our balance sheet.
Tony Sarsam: Our leverage ratio of net long-term debt to adjusted EBITDA increased in the fourth quarter to 2.8 times compared to 2.4 times at the end of the third quarter.
Tony Sarsam: The increase was due to the acquisitions we made in the fourth quarter.
Tony Sarsam: As I mentioned earlier, we generated nearly $206 million of cash from operating activities during the year.
Tony Sarsam: The 130% increase was due largely to working capital improvements and has been integral in funding inorganic growth.
Tony Sarsam: Our liquidity at the end of the quarter was about $300 million, giving us capacity to fund our strategic growth plan with the flexibility to pursue M&A opportunities.
Tony Sarsam: Following a strong finish to the year, we feel confident that our plan will continue driving results.
Tony Sarsam: As covered in today's press release, we are providing our initial guidance for Fiscal 2025, which incorporates several items that include
Tony Sarsam: The challenging market conditions in the grocery industry, which have been partially offset by our operating performance to date, and the ongoing benefits we expect to realize from our transformational initiatives.
Tony Sarsam: As a reminder, our outlook includes Tuckin Acquisitions and the impact of an additional week in fiscal 2025 that will build on the success of our margin-enhancing programs.
Tony Sarsam: Our focus on cost leadership enables us to invest in growth and expand margins.
Tony Sarsam: This year's investments have already begun, and we expect them to continue throughout the year. We did more in the first half.
Tony Sarsam: We expect Q1's bottom line to be about equal compared to last year's Q1 as we invest in this new round of margin enhancing programs to maximize run rate value exiting 2025.
Turning to the guidance ranges.
Tony Sarsam: Consistent with the 2025 preview we provided in our third quarter earnings release back in November.
Tony Sarsam: We expect net sales to be $9.8 to $10 billion with a midpoint of 3.7% growth.
Tony Sarsam: and Adjusted EBITDA is expected to be $263 to $278 million with a midpoint of 4.6% growth.
Tony Sarsam: For your models, non-cash expenses, primarily DNA, are expected to have about a $0.30 drag on EPS.
Tony Sarsam: We expect adjusted EPS to be $1.60 to $1.85 per diluted share.
Tony Sarsam: The DNA impact is driven by acquired assets and our deferred capital investments we've made as part of our growth strategy.
Tony Sarsam: Our CapEx is expected to be in the range of $150 to $165 million, inclusive of ongoing capital requirements for recently acquired assets.
Tony Sarsam: and we expect food inflation to be about 1% for the fiscal year.
Tony Sarsam: Achieving this outlook would deliver an adjusted EBITDA compound annual growth rate of approximately 7% since 2019.
Tony Sarsam: On a reported basis, compared to 2019, net earnings decreased by $5.4 million while net margin was essentially flat.
Tony Sarsam: However, we've been pleased with our results. To reiterate Tony's comments earlier, relative to 2019, we have increased net sales by over a billion dollars.
Tony Sarsam: improved adjusted EBITDA by $80 million and expanded adjusted EBITDA margin by more than 60 basis points.
Tony Sarsam: And with that, I'd like to turn the call back over to Tony.
Thank you, Jason.
Tony Sarsam: This past year delivered meaningful progress and tangible results in our transformational journey. We hit an inflection point and returned to growth at year-end. We also completed three acquisitions, created new efficiencies in our distribution network.
tested and launched innovative new retail programs.
improved margins and captured additional cost savings.
Tony Sarsam: generated strong cash flow and accomplished our third consecutive year of record-adjusted EBITDA.
Tony Sarsam: The momentum we have going into 2025 gives us confidence that our strategic plan is working. Our winning recipe will serve as our guide to drive results, capture market share, win new business, grow bottom line, and maximize shareholder value.
All right.
Tony Sarsam: Before we open the call for Q&A, I'd like to take a moment to thank our associates who are going above and beyond to finish every mission. I would also like to thank our leaders for their steadfast commitment to creating careers for a better life for our growing family of associates.
Thank you all.
Speaker Change: With that, I'd like to turn the call back over to the operator and open it up for your questions.
Speaker Change: Thank you. If you would like to ask a question, please press star 1 on your telephone keypad.
Speaker Change: You will be placed into the queue and the order received.
Speaker Change: Please be prepared to ask your question when prompted. Once again, if you have a question, please press star 1 on your telephone keypad.
Speaker Change: Your first question comes from the line of Ben Wood with BMO Capital Markets. Please go ahead.
Hey, good morning, guys. Thank you for taking our questions.
Thank you. Bye-bye.
Speaker Change: So can we start with kind of the cadence within the quarter and quarter to date from a sales volumes and inflation?
Speaker Change: perspective, anything incremental happening with the customer behavior? I know you guys have some puts and takes with acquisitions and some national account pressure, but trying to parse out if the underlying
Speaker Change: Customer demand softened or was it stable? Just any details you can provide around that.
Speaker Change: Yeah, just a couple of things. Ben and I'll ask Jason to add some color perhaps.
Jason Monaco: standpoint in our stores, we saw broadly our foot traffic was
Jason Monaco: roughly flat and over and better than than most conventional grocers so we see that there's a there's the story the last 18 months then
Jason Monaco: or more of a migration to the really deep discounters. So we've seen sequential progress on traffic, sequential progress on our comps.
Jason Monaco: So I feel good about the overall direction of where we're going. So the customer, we feel great about the shopper in our stores and we feel good about that progress also with our primary independent grocery customers. So we're seeing movement there and the movement is in the right direction.
Jason Monaco: Yeah, Ben, this is Jason. So maybe cadence within the quarter to build on Tony's comments was pretty stable within our retail business.
Jason Monaco: Tony called out a few minutes ago that we had really nice strength in our Michigan business which represents more than half of our stores where we saw Positive comps and we were really pleased with with that outcome
Jason Monaco: Kind of underlying that performance was, as Tony said, not only solid traffic, but continued progress on our private label-owned brands.
Jason Monaco: And maybe I'd even add to that the completion of or the closure of our two acquisitions in the quarter delivered solidly in the last kind of handful of weeks after we closed them. So, we're really pleased with the outcome.
Speaker Change: Okay, great. That's helpful. And then just wanted to dig in a little bit on the 2025 guidance. And if we strip out the extra week and the contributions from acquisitions, by my math, it kind of looks like you're implying
Speaker Change: negative low single digit sales growth and maybe flattish EBITDA at the midpoint. Is that the right way to think about it on an organic basis? And how does that compare to kind of your industry expectations, which seem to imply maybe slightly positive volumes?
Tony Sarsam: Yeah, Ben, maybe a little color on the year and the guidance.
Speaker Change: The 53rd week is worth a little less than $200 million. We finished 2024 revenues at $9.55 billion.
Tony Sarsam: And so if you were to kind of mentally back out the impact of...
Tony Sarsam: that sub $200 million impact on the top line from the guidance, you'd still see a pretty solid step up in revenues even at the midpoint.
Tony Sarsam: As a reminder, the transactions that we closed late in the year
Tony Sarsam: impacted our revenues or expected to impact the revenues by a couple hundred million dollars annually as we we pick up incremental retail revenue but we lose the kind of intercompany wholesale piece of that.
Tony Sarsam: We expect that our all-in organic growth is flattish in an environment where we have relatively modest inflation. So our inflation assumption at this point is about 1% for the year, and we're pursuing market share growth in our markets.
Thank you very much.
Tony Sarsam: Thank you. And once again, if you would like to ask a question, please press star 1 on your telephone keypad.
And Scott, you might be on mute.
Tony Sarsam: Yes, sorry, I was on mute. You guys can hear me now?
We can hear you.
So thanks for taking the question. So...
Speaker Change: Tony, I wanted to dive into something you mentioned in your prepared remarks.
Tony Sarsam: which is the ethnic store footprint and the growth opportunity there. Maybe it's not so much in 2025, maybe it's more 2026, 2027, but I was wondering if you could give us a little bit more details on your expectations there and what it would mean to revenue growth.
Tony Sarsam: Sure, great question. So we have, we've run three ethnic stores in in Nebraska for years and they're great performing stores for us, have been for a long time. They grow faster, we've got
terrific margins at both stores as well.
Tony Sarsam: And we're looking at where, a couple different angles, where else in the Midwest are there places where we could have a great presence in that way? And so we're looking at opportunities amongst other cities within our current footprint where we can look at either acquisitions or brownfield or even greenfield startups of Hispanic stores.
Tony Sarsam: You're right, the impact for this year, we will have an increased footprint in the number of stores we have, but we're looking at this as a lot of long-term development as well. We have expertise in serving those stores, and it's a growing community, and it's a growing community that also, we believe, has a long runway ahead of it in terms of both growth and profitability in that segment. So we're excited about that.
Tony Sarsam: We've got some sites and are, you know, looking to essentially double our footprint of this year and then they grow more significantly in the out years.
Jason Monaco: and my partner, the new CEO of Google, Jason Monaco. Thank you for joining us. We hope you have a great day. And I hope to see you again soon. Bye. Bye. Bye. Bye. Bye. Bye. Bye. Bye. Bye.
Speaker Change: Perfect. And then, Jason, I just wanted to, again, go back to something I think you said with the guidance that tuck-in acquisitions are included in the
Jason Monaco: in the adjusted EBITDA guidance, is that material or is that more kind of rounding?
Speaker Change: Hey Scott, so the way I think about it is we've completed some Tuckin acquisitions already in 2024 and the full year impacts of those are reflected in the 2025 guidance.
Speaker Change: The remainder I think about as being not particularly material based on what's in the near-term frame at this point.
Speaker Change: But you should think about and the way we think about this is we're going to continue to pursue our M&A strategy
Speaker Change: And as opportunities present themselves to create value, we'll execute on those. So long-term, broadly speaking, you know, kind of smallish tuck-in acquisitions are included. The way to think about the current guide is largely M&A that we've got in the, kind of in the bag and completed already.
Speaker Change: And overall, maybe, Scott, to build on the comments Tony made earlier, when I think about our business, we're really energized by where our retail business is going.
Speaker Change: If you think about the trends, or as I think about the trends in the business, the first half of 2024.
Speaker Change: In the first half of 2024, we had a negative comp of about 1.7%. In the second half of the year, we had a negative comp of 0.7%, as we've seen really nice progression in the growth of our business.
Speaker Change: And as we look forward to 2025, we're expecting that Comp Outlook to change and to turn positive.
Tony Sarsam: and we see that that opportunity both in execution of within our retail operations as well as growth within certain segments or platforms that Tony mentioned on the call both our C-Store and our Hispanic operations.
Tony Sarsam: So, we're thinking about how do we reshape the portfolio, how can we invest in the things that are going to drive the most value and the most growth over time, and you're going to see elements of that in our traditional retail business.
Tony Sarsam: You're going to see elements of that in our ethnic business, which has outsized performance with respect to the demographics and the growth opportunities.
Tony Sarsam: and you're going to see it in the C-Store operations where we see and we have really attractive market dynamics to participate in. All three of those are going to be growth vectors for us in 2025 and beyond as we build on the momentum of 2024 and continue to create what we think is going to be a great business outcome.
Tony Sarsam: As a reminder the midpoint of our guidance for this year at the at the bottom line
Tony Sarsam: would deliver 7%-ish compound annual growth rate since 2019. That outperforms many in the grocery space. And we're excited by the capabilities, the performance, and the opportunities we have in front of us to create shareholder value.
That's excellent call Jason, really appreciate all the detail.
Tony Sarsam: All right, thank you. And once again, if you would like to ask a question, please press star 1 on your telephone keypad. Again, that would be star 1 on your telephone keypad.
Tony Sarsam: Thank you for joining us. We hope to see you again soon. Until then, take care.
Speaker Change: Hi guys, good morning. Thanks so much for taking the question. So just a little bit more interest in the M&A market, particularly as you have expressed interest in C-stores. You know, in the past, particularly with regards to the kind of pressured economic environment,
Speaker Change: and pertaining to smaller independent C-Store operators, there was kind of talk that.
Speaker Change: Some of these were more willing to engage in M&A discussions and kind of get out of things while they could.
Speaker Change: With kind of a potential shift in sentiment about where the economy is going to go in macro conditions
Speaker Change: Do you see any reservation on operators wanting to sell because they think there might be some improvement? I guess just some color on what the M&A market looks like for you guys, what the sentiment you're picking up is. Thanks so much.
Great, thank you Ernest, Tony.
Speaker Change: We are very active in terms of engaging in conversations and looking for those right opportunities for us.
Speaker Change: There is, and I would tell you, there's a full mix. There are folks who are looking for, you know, the ideas around exit strategies. There's folks who are saying that they see great things ahead and they want to continue on their business. So it runs a full gamut. What we're seeing is that, you know, good operators in this space have a great business. They're continuing to grow. The idea, the base idea around convenience and being able to offer the one-stop for fuel and picking up snacks or whatever,
Speaker Change: things kind of continue. She looked at how the shop were changed over the over the period of time kind of pandemic post pandemic, there's a lot of there's a lot of shifts, but shifts around c-store has been pretty stable. Again the good operators are are growing and, and, and we see that as a great place for us to play as well. So kind of runs the gamut where we are, we're again always always engage with folks. He talked about the acquisition we did of the Markham Group
Speaker Change: this past year, and I would expect you'd see us doing more of those types of things in 2025.
Great. Thank you so much.
Speaker Change: Thank you and there are no further questions at this time. I will now turn the call back to Tony Sarsam for closing remarks.
Speaker Change: All right, well, thank you to everybody for their participation in today's call. We certainly appreciate your interest in Spartan-Nash. And so, from our family to yours, we'd like to wish you all a very pleasant good day.
Speaker Change: Thank you, and this concludes today's conference call. Thank you all for attending. You may now disconnect.