Q4 2024 Traeger Inc Earnings Call

Operator: Good afternoon. Thank you for attending the Traeger fourth quarter in full year 2020 Fort Lenox conference call.

Good afternoon. Thank you for attending B Trager fourth quarter and full year 2024 earnings Conference call. My name is Cameron and I'll be your moderator for today all lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the.

Operator: My name is Cameron and I'll be your moderator for today. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. If you would like to ask a question, please press star one on your telephone keypad.

And he would like to ask a question. Please press star one on your telephone keypad now.

Nick Bacchus: And I would now like to pass the conference over to your host, Nick Bacchus, Vice President of Investment Relations with Traeger. Remember, see you.

Nick: Now I'd like to pass the conference over to your host Nick back as Vice President of Investor Relations with Trager labor seen.

Nick Bacchus: Good afternoon, everyone. Thank you for joining Traeger's call to discuss its fourth quarter 2024 results, which were released this afternoon and can be found on our website at investors.traeger.com. I'm Nick Bacchus, Vice President of Investor Relations at Traeger.

Nick Back: Good afternoon, everyone. Thank you for joining <unk> call to discuss its fourth quarter 2024 results, which were released this afternoon and can be found on our website at investors that figure dotcom netback as vice President of Investor Relations at trigger with me on the call today are Jeremy <unk>, Our Chief Executive Officer, Don <unk>, Our Chief Financial Officer before we get started.

Nick Bacchus: With me on the call today are Jeremy Andrus, our Chief Executive Officer, and Dom Blosil, our Chief Financial Officer.

Nick Bacchus: Before we get started, I want to remind everyone that managers' remarks on this call may contain certain forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations of views of future events, including, but not limited to, outlook as to our anticipated first quarter 2025 and full year 2025 results. Such statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied herein.

Nick Back: And everyone that management's remarks on this call may contain certain forward looking statements within the meaning of the safe Harbor provisions of the private Securities Litigation Reform Act of 995.

Nick Back: These statements are based on current expectations and views of future events, including but not limited to outlook as to our anticipated first quarter 2025, and full year 2025 results.

Nick Back: These statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied herein.

Nick Bacchus: I encourage you to review our annual report on foreign 10-K for the year ended December 31st, 2024, once filed, and our other filings for discussion of these factors and uncertainties, which are available on the investor relations portion of our website. You should not take under-reliance on these forward-looking statements, which we speak to only as of today. We undertake no obligation to update or revise them for any new information.

Nick Back: I encourage you to review our annual report on Form 10-K for the year ended December 31, 2024, once filed and our other filings for a discussion of these factors and uncertainties, which are available on the investor relations portion of our website.

Nick Back: Not take undue reliance on these forward looking statements.

Nick Back: We can only as of today, we undertake no obligation to update or revise them for any new information. This call also contains certain non-GAAP financial measures, including adjusted EBITDA adjusted net income or loss adjusted net income or loss per share adjusted EBITDA margin and net debt, which we believe are useful as supplemental measures. The most comparable GAAP financial measures and reconciliations of the non.

Nick Bacchus: This call also contains certain non-GAAP financial measures, including adjusted EBITDA, adjusted net income or loss, adjusted net income or loss per share, adjusted EBITDA margin, and net debt, which we believe are useful supplemental measures. The most comparable GAAP financial measures and reconciliation of the non-GAAP measures contained herein, such as GAAP measures, are included in our earnings release and investor presentation, which are available on the investor relations portions of our website at investors.traeger.com. Please note that our definition of these measures may differ from similarly titled metrics presented by other companies.

Nick Back: non-GAAP measures contained here into such GAAP measures are included in our earnings release, and Investor presentation, which are available on the Investor relations portions of our website at investors that trigger dot com. Please note that our definition of these measures may differ from similarly, titled metrics presented by other companies now I'd like to turn the call over to Jeremy Anderson, Chief Executive Officer of trigger.

Jeremy Andrus: Now, I'd like to turn the call over to Jeremy Andrus, Chief Executive Officer of Traeger. Jeremy? Thanks, Nick, and good afternoon, everyone.

Nick Back: Army.

Jeremy Anderson: Thanks, Nick and good afternoon to everyone I'll start today's call with an overview of our fourth quarter any recap of 2024, and then we'll discuss our outlook for 2025 before turning the call over to Tom.

Jeremy Andrus: I'll start today's call with an overview of our fourth quarter and a recap of 2024, and then we'll discuss our outlook for 2025 before turning the call over to Dom. I'm pleased with our solid finish to the year in the fourth quarter. From a revenue perspective, we delivered 3% growth in the quarter with particular strength in our grills business, which was up 30% as compared to the fourth quarter of last year and our consumables business, which was up 25% compared to last year. We continue to see strong margin gains in the quarter with gross margin up 410 basis points compared to the prior year.

Jeremy Anderson: I'm pleased with our solid finish to the year in the fourth quarter from a revenue perspective, we delivered 3% growth in the quarter with particular strength in our Grilles business, which was up 30% as compared to the fourth quarter of last year, and our consumables business, which was up 25% compared to last year.

Jeremy Anderson: We continue to see strong margin gains in the quarter with gross margin up 410 basis points compared to the prior year.

Jeremy Andrus: This resulted in fourth quarter adjusted EBITDA of $18 million, up 41% from the fourth quarter in 2023, putting us above the high end of our adjusted EBITDA guidance for the year.

Jeremy Anderson: This resulted in fourth quarter, adjusted EBITDA of $18 million up 41%.

Jeremy Anderson: On the fourth quarter 2023, putting us above the high end of our adjusted EBIT guidance for the year.

Jeremy Andrus: Our fourth quarter capped off a solid year for our company. Despite ongoing challenges in the macroeconomic backdrop, results for the year ended significantly better than we initially guided to. Importantly, we saw an inflection in our grill business in 2024, with grill revenues up 8% for the year, substantially better than our outlook coming into the year. This was driven by strong consumer reception of our strategy to lean into promotions and peak selling periods, which contributed to market share gains. Notably, we were able to employ this strategy and drive sell through while meaningfully growing our gross margin.

Jeremy Anderson: Our fourth quarter capped off a solid year for our company. Despite ongoing challenges in the macroeconomic backdrop results for the year ended significantly better than we initially guided to.

Jeremy Anderson: Importantly, we saw an inflection in our grill business in 2024 with grilled revenues up 8% for the year substantially better than our outlook coming into the year.

Jeremy Anderson: Was driven by strong consumer reception.

Jeremy Anderson: Our strategy to lean into promotions and peak selling periods, which contributed to market share gains.

Jeremy Anderson: Notably we were able to employ this strategy and drive sell through while meaningfully growing our gross margin.

Jeremy Andrus: Our initiatives to drive efficiencies in our supply chain and to improve our margin structure, in addition to lower transportation costs, drove a 540 basis point improvement in our gross margin for the year. This resulted in adjusted EBITDA growth of 34% in fiscal 2024.

Jeremy Anderson: Our initiatives to drive efficiencies in our supply chain and to improve our margin structure. In addition to lower transportation costs drove a 540 basis point improvement in our gross margin for the year. This resulted in adjusted EBITDA growth of 34% in fiscal 2024.

Jeremy Andrus: During the year, we also made significant progress on key strategic initiatives and our long term growth pillars. This includes driving our brand awareness, which continues to grow. With our household penetration of just 3.6%, growing our market share is our largest long term opportunity. In 2024, we made progress in this area, as we gain share in our grills business. During the fourth quarter, the energy around the Traeger brand continued to build. We leaned into social media, brand ambassador and influencer content, which remain key platforms for us to engage our audience. Our brand activation strategy in the fourth quarter centered around holiday-themed content, including a video featuring barbecue influencer Matt Pittman on the perfect holiday prime rib, cooked on the Traeger, and of course, content on smoking a Traeger for Thanksgiving.

Jeremy Anderson: During the year, we also made significant progress on key strategic initiatives and our long term growth pillars.

Jeremy Anderson: This includes driving our brand awareness, which continues to grow.

Jeremy Anderson: With our household penetration of just three 6%.

Jeremy Anderson: Growing our market share is our largest long term opportunity.

Jeremy Anderson: 2024, we made progress in this area as we gained share in our girls business.

Jeremy Anderson: During the fourth quarter the energy around the trigger brand continued to build.

Jeremy Anderson: We leaned into social media brand ambassador and Influencer content, which remain key platforms for us to engage our audience.

Jeremy Anderson: Our brand activation strategy in the fourth quarter centered around holiday themed content, including videos featuring barbeque Influencer, Matt Pittman on the perfect holiday Prime rib booked on the trader and of course content of smoking a trigger for Thanksgiving.

Jeremy Andrus: Traeger leads the outdoor cooking ministry and follower count across social channels, and our audience continues to expand. This is particularly true for YouTube, where our recent launch of Traeger Kitchen, our weekly cooking series featuring chefs and pitmasters cooking on the Traeger, drove more than 50% subscriber growth in the fourth quarter. We also leaned into strategic partnerships in the culinary space as a brand activation strategy. This includes a collaboration with Maiden for a limited-release enabled cast-iron brazier in the fourth quarter. We also partnered with Bullitt Frontier Whiskey for a holiday collaboration, including a two-part video series that paired chefs and bartenders to craft the perfect holiday menu, featuring food cooked on the Traeger, as well as flavorful cocktails using Bullitt Whiskey.

Jeremy Anderson: Gregor leads the outdoor cooking industry follower count across social channels and our audience continues to expand.

Jeremy Anderson: Particularly true for Youtube, where our recent launch of trade or kitchen, our weekly cooking series featuring chefs in pit Masters cooking omni krieger drove more than 50% subscriber growth in the fourth quarter.

Jeremy Anderson: We also leaned into strategic partnerships in the culinary space as a brand activation strategy.

Jeremy Anderson: The collaboration with maiden.

Jeremy Anderson: Limited release enabled cast-iron embraceor in the fourth quarter. We also partnered with bullet frontier Whiskey Frey holiday collaboration, including a two part video series that paired chefs and bartenders to craft the perfect holiday menu.

Jeremy Anderson: <unk> food cooked on the trade group as well as flavor for cocktails using bullet whiskey.

Jeremy Andrus: Aligning ourselves with on-trend brands like Maiden and Bullitt is a cost-effective way to increase awareness of Traeger with new audiences to drive buzz around the brand.

Jeremy Anderson: Aligning ourselves with on trend brands like maiden and bullet is a cost effective way to increase awareness of trader.

Jeremy Anderson: With new audiences to drive buzz around the brand.

Jeremy Andrus: From an innovation perspective, we officially launched our new Woodbridge series of wood pellet grills shortly after the end of the year on January 16, and began to ship product to our retailers in the fourth quarter. The Woodridge series of grills feature some of our latest technological innovations and offers enhanced features at approachable price points. Enhancements include an easy clean grease and ash keg, which collects drippings and pellet ash, more cooking space, and our free flow fire pot, which creates more airflow beneath the pellets, generating more smoke for a deeper, richer flavor. The development and launch of the Woodbridge series was a cross-functional effort across many parts of the Traeger organization.

Jeremy Anderson: From an innovation perspective, we officially launched our new Woodbridge series of Wood pellet grills. Shortly after the end of the year on January 16th and began to ship product to our retailers in the fourth quarter.

Jeremy Anderson: <unk> series of grills features some of our latest technological innovations.

Jeremy Anderson: Offers enhanced features and approachable price points enhancements.

Jeremy Anderson: Enhancements include an easily clean, Greece, and ash, keg, which collect stripping and pellet ash more cooking space and our free flow of fire pot, which creates more air flow beneath the pellets generating more smoke free deeper richer flavor.

The development and launch of the Woodbridge series was a cross functional effort across many parts of the trade organization.

Jeremy Andrus: I believe that this was the best launch in our history. From product development to manufacturing to our go-to-market strategy, every step of the Woodridge launch was executed at a high level.

Jeremy Anderson: I believe that this was the best launch in our history.

Jeremy Anderson: From product development to manufacturing to our go to market strategy every step of the Woodbridge launch was executed at a high level.

Jeremy Andrus: One area of note is product test. We conducted more testing for the Woodbridge than we ever have for any product launch and logged over 10,000 hours of cooking before the launch to ensure the highest quality experience for users. From a brand engagement perspective, the launch garnered significant attention and brought a ton of energy to Traeger, generating more than 1.2 billion impressions and record-breaking engagement across social channels. We also engaged and invested in retail training to support our retail partners like Ace Hardware and Home Depot. We've invested in onsite regional training focused on the new Woodbridge series, as well as other key selling techniques to educate store associates.

Jeremy Anderson: One area of note is product testing, we conducted more testing for the Woodbridge than we ever have for any product launch and logged over 10000 hours of cooking before the launch to ensure the highest quality experience for users.

Jeremy Anderson: Brand engagement perspective, the launch garnered significant attention.

Jeremy Anderson: And brought a ton of energy to trigger generated more than $1 2 billion impressions and record breaking engagement across social channels.

Jeremy Anderson: We also engaged and invested in retail training to support our retail partners like Ace hardware and home depot we've.

Jeremy Anderson: <unk> invested in on site regional training focused on the new Woodbridge series as well as other key selling techniques to educate store associates.

Jeremy Andrus: as the more they know about Traeger and the Woodridge line, the more they will sell. Early reads on sell-through for Woodridge have been strong, and we are encouraged by the consumer reception thus far. In the fourth quarter, Brill's revenues increased by 30% to the prior year as we benefited from the initial loading of Woodbridge and improved sell-through at retail. Grill performance was better than expected, and underlying sell-through of grills was positive in the quarter. We saw particular strength during our holiday promotional period. In fact, Black Friday 2024 was one of the biggest sell-through days in our history.

Jeremy Anderson: As the more they know about trade or the Woodbridge line the more they will sell.

Early reads on sell through for Woodbridge have been strong and we are encouraged by the consumer reception thus far.

Jeremy Anderson: In the fourth quarter <unk> revenues increased by 30% to the prior year as we benefited from the initial load in of Woodbridge and improved sell through at retail.

Jeremy Anderson: Grill performance was better than expected and underlying sell through of Grilles was positive in the quarter.

Jeremy Anderson: We saw particular strength during our holiday promotional period in fact, Black Friday 2024 was one of the biggest sell through days in our history as.

Jeremy Andrus: As we have noted on prior calls, we are seeing outperformance in our lower price point grills. We believe this confirms that there was some significant demand for Traeger product at approachable price point.

Jeremy Anderson: As we have noted on prior calls we are seeing outperformance and our lower price point and grills. We believe this confirms that there was significant demand for tray your product at approachable price points.

Jeremy Andrus: In 2025, we'll be focused on boots on the ground sales activation efforts to drive consumer education and conversion at retail. A great example of this is our roadshow program at Costco. Traeger's Roadshow program brings our wood-fired grills directly to Costco members. Traeger Brand Ambassadors set up product demonstrations in Costco warehouses to educate and sell grills to members on a consignment basis around the country. Our brand ambassadors are well-trained advocates of Traeger and engage with a high number of Costco members on a daily basis, significantly driving brand awareness in the area. This program was an early growth driver of the Traeger brand, and we are planning to more than double the number of roadshows we do in 2025.

Jeremy Anderson: In 2025, we will be focused on boots on the ground sales activation efforts to drive consumer education and conversion at retail.

Jeremy Anderson: A great example of this is our roadshow program at Costco.

Jeremy Anderson: Triggers Roadshow program brings our wood fired grill directly to Costco members.

Jeremy Anderson: <unk> brand ambassador set of product demonstrations and Costco warehouses to educate and sell grilles to members on a consignment basis around the country.

Jeremy Anderson: Our brand ambassadors are well trained advocates of trades are engaged with a high number of Costco members on a daily basis significantly driving brand awareness in the area.

Jeremy Anderson: This program was an early growth driver of the Trager brand and we're planning to more than double the number of Roadshows, we do in 2025.

Jeremy Andrus: Moving on to consumables. We had some exciting developments in our consumables business in the fourth quarter, and growth was strong, up 25%. This growth was driven by increased replenishment, as both our core flavors of pellets and seasonal offering, Turkey Blend Pellets, saw healthy sell-through during the quarter.

Jeremy Anderson: Moving on to consumables, we have some exciting developments in our consumables business in the fourth quarter and growth was strong up 25%.

Jeremy Anderson: This growth was driven by increased replenishment as both our core flavors of pellets and seasonal offering Turkey blend pellets saw healthy sell through during the quarter. Additionally.

Jeremy Andrus: Additionally, in the fourth quarter, we launched new distribution of pellets and rubs into select doors at Walmart, a new retail partner for Traeger. For the last several years, we have been focused on increasing distribution of Traeger pellets and food consumables into the grocery channel. We believe that Traeger consumers want to be able to purchase their pellets, not only where they bought their grill, but also at the grocery store where they shop on a weekly basis. Walmart, therefore, is an incredible partner to meet this need for our consumers. We began loading pellets and rubs into Walmart in December and are excited to offer a new channel for our consumers to purchase Traeger consumables.

Jeremy Anderson: Additionally, in the fourth quarter, we launched new distribution of pellets and rubs into select doors at Walmart, a new retail partner for Drager.

Jeremy Anderson: For the last several years, we have been focused on increasing distribution of trade or pellets in food consumables into the grocery channel.

Jeremy Anderson: We believe that Trey your consumers want to be able to purchase their pellets not only were they bought their grill, but also at the grocery store, where they shop on a weekly basis.

Jeremy Anderson: Walmart therefore is an incredible partner to meet this need for our consumers.

Jeremy Anderson: We began loading pellets and rubs into Walmart in December and are excited to offer a new channel for our consumers to purchase trade or consumables.

Jeremy Andrus: Critically, our consumer research indicates that the Walmart shopper has little overlap with their existing distribution channels with respect to their pellet purchases, and therefore, we think this is an incremental market share opportunity.

Jeremy Anderson: <unk>, our consumer research indicates that the Walmart shopper has little overlap with our existing distribution channels with respect to their pellet purchases and therefore, we think this is an incremental market share opportunity.

Jeremy Andrus: Let's turn to our accessories business. Our accessories revenue in the fourth quarter were pressured by a decline at meter. Last quarter, we discussed meters underperformance and our expectations for sequential improvement in the fourth quarter, which is meters most important quarter. While we did see some level of improvement in the rate of decline as compared to the third quarter, fourth quarter results were lower than expected. We believe there are several drivers of the underperformance at Meter. As we spoke to on our last call, after having made a decision to pull back on marketing spend at Meter earlier in 2024, we re-accelerated marketing spend in the fourth quarter.

Jeremy Anderson: Let's turn to our accessories business, our accessories revenue in the fourth quarter were pressured by a decline at meter last quarter, we discussed meters under performance and our expectations for sequential improvement in the fourth quarter, which is meters most important quarter.

Jeremy Anderson: While we did see some level of improvement in the rate of decline as compared to the third quarter fourth quarter results were lower than expected.

Jeremy Anderson: We believe there are several drivers of the underperformance at meter as.

Jeremy Anderson: As we spoke to on our last call after having made a decision to pull back on marketing spend at meter earlier in 2024, we re accelerated marketing spend in the fourth quarter.

Jeremy Andrus: Ultimately, we didn't experience the lift in demand we were expecting from the incremental marketing spend in Q4. and return on advertising spend was lower than expected. We believe that the reduced efficiency of our demand creation was driven by heightened competition in the meat probe space, as well as higher cost of fourth quarter related to the election. We also believe that growth in the meat thermometer category slowed in 2024 after seeing several years of strong gains, contributing to a tougher demand backdrop for meater.

Jeremy Anderson: Ultimately, we didn't experience a lift in demand we were expecting from the incremental marketing spend in Q4.

Jeremy Anderson: And return on advertising spend was lower than expected.

We believe that the reduced efficiency of our demand creation was driven by heightened competition in the meat probe space as well as higher costs.

Jeremy Anderson: Fourth quarter related to the election.

Jeremy Anderson: We also believe that growth in the meat thermometer category slowed in 2024 after seeing several years of strong gains contributing to a tougher demand backdrop for meter.

Jeremy Andrus: We have strategic plans in place to improve Meter. This includes optimizing the balance of demand creation spend in ROAS, changing leadership of several key functions at the organization, and reconfiguring our long-term product roadmap. Furthermore, we continue to view retail distribution as a large opportunity for Meter and have put resources behind our efforts to expand this channel. Notably, we recently launched distribution at select Walmart stores and expect to see additional distribution wins going forward. Well, we expect these strategic changes to drive improvement in meters performance.

Jeremy Anderson: We have strategic plans in place to improve meter.

Jeremy Anderson: This includes optimizing the balance of demand creation spend and role as changing leadership of several key functions at the organization and Reconfiguring, our long term product roadmap.

Jeremy Anderson: Furthermore, we continue to view retail distribution is a large opportunity for meter and have put resources behind our efforts to expand this channel, notably we recently launched distribution at select Walmart stores and expect to see additional distribution wins going forward.

Jeremy Anderson: While we expect these strategic changes to drive improvement in meters performance. In 2025, we are planning for continued softness during this year.

Jeremy Andrus: In 2025, we are planning for continued softness during this year, as we believe the benefits from these efforts will take time to bear fruit. We do, however, continue to feel confident in meters brand positioning as a leader in the wireless meat thermometer category.

As we believe the benefits from these efforts will take time to bear fruit.

Jeremy Anderson: We do however continue to feel confident in meters brand positioning as a leader in the wireless meat thermometer category.

Jeremy Andrus: In terms of our fiscal 2025 outlook, Dom will provide more details, but let me give some high-level thought. For the year, we are guiding to revenues of $595 to $615 million or approximately down 2% to up 2% and adjusted EBITDA of $75 to $85 million. Our top line outlook anticipates growth in our grills and consumables categories, offset by a decline in our accessories category, driven by an expected decline in meter.

Jeremy Anderson: In terms of our fiscal 2025 outlook, Tom will provide more details, but let me give some high level thoughts.

Jeremy Anderson: For the year, we are guiding to revenues of 595.

Jeremy Anderson: $615 million or <unk>.

Jeremy Anderson: <unk> down 2% to up 2% and adjusted EBITDA of $75 million to $85 million.

Our top line outlook anticipates growth in our grills and consumables categories.

Jeremy Anderson: Offset by a decline in our accessories category driven by an expected decline in meter.

Jeremy Andrus: With respect to tariffs, our current guidance does not build in the impact nor offsetting mitigation of recently enacted tariffs or any future tariffs. This is because trade policy is a highly dynamic topic. And there is significant uncertainty around how exactly policy evolves and how tariffs will impact our industry and the US consumer more broadly. With approximately 50% of our sales driven by goods imported to the U.S. from China, our organization has been analyzing news on trade policy and has been working aggressively on strategies to offset the potential impact of tariffs for some time. Our ongoing mitigation strategies include supply chain efficiencies and savings, negotiations with our contract manufacturers, and potential price increases.

Jeremy Anderson: With respect to tariffs our current guidance does not build and the impact nor offsetting mitigation of recently enacted tariffs or any future tariffs. This was because trade policy is a highly dynamic topic and there is significant uncertainty around how exactly policy.

Jeremy Anderson: <unk> and how tariffs will impact our industry in the U S consumer more broadly.

Jeremy Anderson: With approximately 50% of our sales driven by goods imported to the U S from China. Our organization has been analyzing news on trade policy and has been working aggressively on strategies to offset the potential impact of tariffs for some time.

Jeremy Anderson: Our ongoing mitigation strategies include supply chain efficiencies and savings negotiations with our contract manufacturers and potential price increases.

Jeremy Andrus: We are taking a proactive approach to mitigating tariffs and our strategies will continue to evolve as there's more clarity in this fast changing environment.

Jeremy Anderson: We are taking a proactive approach to mitigating tariffs and our strategies will continue to evolve as there is more clarity in this fast changing environment.

Jeremy Andrus: It's important to note that nearly all of our consumables are manufactured in the United States, and the majority of our accessories are not sourced from China. Also, I want to emphasize that we have extremely experienced and talented set of teams across supply chain, finance, and other functions, as well as great relationships with our vendors and retail partners, which will be strong advantages in this uncertain environment.

Jeremy Anderson: It is important to note that nearly all of our consumables are manufactured in the United States. The majority of our accessories are not sourced from China.

Jeremy Anderson: Also I want to emphasize that we have extremely experienced and talented set of teams across supply chain finance and other functions as well as great relationships with our vendors and retail partners, which will be strong advantages in this uncertain environment.

Jeremy Andrus: Overall, despite an uncertain macro backdrop, my confidence in Traeger has never been higher. Indicators of our brand health remain very strong. We gained share in 2024 and consumer demand for our grills exceeded our expectations. We continue to have an industry leading NPS score with a highly evangelical base of consumers. Moreover, the investments we have made into our product development engine position us for continued innovation in the years to come. We have driven efficiencies across our cost and margin structure, and we are well positioned for a strong flow through when industry demand becomes more robust.

Jeremy Anderson: Overall, despite an uncertain macro backdrop, my confidence and trigger has never been higher.

Jeremy Anderson: Indicators of our brand health remained very strong <unk>.

Jeremy Anderson: We gained share in 2024 and consumer demand for our grills exceeded our expectations.

Jeremy Anderson: We continue to have an industry, leading NPS score with a highly evangelical base of consumers.

Jeremy Anderson: Moreover, the investments we have made into our product development engine position us for continued innovation in the years to come.

Jeremy Anderson: We have driven efficiencies across our cost and margin structure, and we are well positioned for strong flow through.

Jeremy Anderson: Industry demand becomes more robust.

Jeremy Andrus: I'd like to thank everyone on the Traeger team for their hard work and contributions to the business.

Jeremy Anderson: I'd like to thank everyone on the trigger team for their hard work and contributions to the business.

Jeremy Andrus: Lastly, as announced in our press release, Dom Blosil has decided to transition out of his role as CFO. Dom has been an incredible partner over the last 11 years, and I want to thank him for his many contributions.

Jeremy Anderson: Lastly, as announced in our press release <unk> has decided to transition out of his role as CFO.

Jeremy Anderson: Tom has been an incredible partner over the last 11 years and I want to thank him for his many contributions.

Dominic Blosil: He will remain CFO through our first quarter 10-2 filing, after which Joey Horde, our current SVP of finance and strategy, will step into the role as part of a planned succession.

Jeremy Anderson: He will remain CFO through our first quarter 10-Q filing.

Jeremy Anderson: After which Joey hoard, our current SVP of finance and strategy, we will step into the role as part of a planned succession.

Dominic Blosil: We're excited to welcome Joey to the executive team. With that said, I'll turn it over to Dom. Thank you, Jeremy. I look forward to supporting a smooth transition. It's been a privilege to work alongside you and the incredible Traeger team over the last 11 years. I'm extremely proud of all we've accomplished together. Traeger is a special brand with an exciting future ahead.

Jeremy Anderson: We're excited to welcome Joe to the executive team.

Speaker Change: With that said I'll turn it over to Don Don.

Don Don: Thank you Jeremy I look forward to supporting a smooth transition.

Speaker Change: Been a privilege to work alongside you and the incredible traeger team over the last 11 years I'm extremely proud of all we've accomplished together.

Don Don: <unk> is a special brand with an exciting future ahead.

Dominic Blosil: Moving to our financial results for 2024. I'm pleased with both our fourth quarter results and how Traeger performed throughout 2024. We exceeded our adjusted EVA.gov guidance for the year despite persistent meter challenges. In addition, our efforts over the past three years to improve profitability and strengthen the balance sheet have resulted in significant gross margin expansion, strong EBITDA growth, and sequentially lower balance sheet leverage as compared to 2023. I believe these efforts position the company to capitalize on an eventual industry recovery and unlock capacity to invest in initiatives that will catalyze future growth. For fiscal year 2024, growth margins expanded by 540 basis points and adjusted EBITDA grew by 34% and ended 23% above the midpoint of our original guidance.

Don Don: Moving to our financial results for 2024.

Don Don: I'm pleased with both our fourth quarter results and heart failure performed throughout 2024.

Don Don: We exceeded our adjusted EBITDA guidance for the year, despite persistent meter challenges.

Don Don: In addition, our efforts over the past three years to improve profitability and strengthen the balance sheet have resulted in significant gross margin expansion strong EBITDA growth and sequentially lower balance sheet leverage as compared to 2023.

Don Don: I believe these efforts position the company to capitalize on an eventual industry recovery and unlock capacity to invest in initiatives that will catalyze future growth.

Don Don: Fiscal year 2024, gross margin expanded by 540 basis points and adjusted EBITDA grew by 34% and a 23% above the midpoint of our original guidance.

Dominic Blosil: Shifting to our fourth quarter results. Fourth quarter revenues grew 3% to $169 million. Grill revenues were $78 million, up 30% year-over-year, driven by strong sell-through during the holiday promotional period, improved replenishment sales, and load-in of our new Woodridge series. Consumables revenues increased 25% to $31 million, supported by strong replenishment due to higher sell-through and new distribution at Walmart. Accessories revenues declined 24% to $60 million as negative sales growth at meter was partially offset by increased sales of Traeger-branded accessories. By geography, North America revenues increased 11%, while rest of world revenues declined by 39%. Fourth quarter gross margin was 40.9%, up 410 basis points year over year.

Don Don: Shifting to our fourth quarter results.

Don Don: Quarter revenues grew 3% to $169 million.

Don Don: Grille revenues were $78 million up 30% year over year, driven by strong sell through during the holiday promotional period improved replenishment sales and load in of our new Wood River series.

Don Don: Consumables revenues increased 25% to $31 million.

Supported by strong replenishment due to higher sell through and new distribution at Walmart.

Don Don: Accessories revenues declined 24% to $60 million as negative sales growth at meter was partially offset by increased sales of trigger branded accessories.

Don Don: By geography, North America revenues increased 11%, while rest of world revenues declined by 39%.

Fourth quarter gross margin was 49% up 410 basis points year over year.

Dominic Blosil: The key drivers of margin expansion included supply chain cost favorability of 360 basis points. Warranty Expense Improvements at 110 basis points. improved dilution of 90 bases. and other benefits of Coney Basin. These were partially offset by unfavorable product mix of 170 basis points. Sales and marketing expenses were $34 million, up from $33 million in Q4 2023, primarily due to higher employee costs. General and administrative expenses were $27 million, compared to $26 million in Q4 2023, driven by higher professional service fees, partially offset by lower stock-based compensation. Net loss for the quarter was $7 million compared to a net loss of $24 million in Q4 2023.

Don Don: The key drivers of margin expansion included.

Don Don: Fly chain cost favorability of 360 basis points.

Don Don: Warranty expense improvements of 110 basis points.

Don Don: Improved dilution of 90 basis points and other benefits of 20 basis points.

Don Don: These were partially offset by unfavorable product mix of 170 basis points sales and marketing expenses were $34 million up from $33 million in Q4, 2023, primarily due to higher employee costs.

Don Don: General and administrative expenses were $27 million compared.

Don Don: Compared to $26 million in Q4 2023.

Don Don: By higher professional service fees, partially offset by lower stock based compensation.

Don Don: Net loss for the quarter was $7 million.

Don Don: <unk> to a net loss of $24 million in Q4 of 2023.

Dominic Blosil: Net loss per diluted share was $0.05 compared to a loss of $0.19 in Q4 2023. Adjusted net income was $2 million, or $0.01 per diluted share, compared to an adjusted net loss of $9 million, or $0.08 per diluted share in Q4 2023. Adjusted EBIT algorithm 41% to $18 million, up from $13 million in the fourth quarter of 2023.

Don Don: Net loss per diluted share was <unk> <unk>.

Don Don: Compared to a loss of <unk> 19 in Q4 2023.

Don Don: Adjusted net income was $2 million.

Don Don: Or <unk> <unk> per diluted share compared to an adjusted net loss of $9 million or <unk> <unk> per diluted share in Q4 2023.

Don Don: Adjusted EBITDA grew 41% to $18 million.

Don Don: Up from $13 million in the fourth quarter of 2023.

Dominic Blosil: Turning to our balance sheet and liquidity. We ended the year with $15 million in cash and cash equivalents compared to $30 million at the end of 2023. We ended the year with $409 million in short and long-term debt. Total net debt declined by $9 million year-over-year to $394 million. Cash flow generation remains strong, with cash flow from operations totaling $24 million, inclusive of a $15 million impact from a change in contingent consideration related to meter acquisition. From a liquidity standpoint, we ended the quarter with total liquidity of $155 million. Inventory at the end of the fourth quarter was $107 million, up from $96 million a year ago.

Don Don: Turning to our balance sheet and liquidity.

Don Don: We ended the year with $15 million in cash and cash equivalents compared to $30 million at the end of 2023.

Don Don: We ended the year with $409 million in the short and long term debt.

Don Don: Total net debt declined by $9 million year over year to $394 million.

Don Don: Cash flow generation remains strong with cash flow from operations totaling $24 million inclusive of a $15 million impact from a change in contingent consideration related to the meter acquisition.

Don Don: From a liquidity standpoint, we ended the quarter with total liquidity of $165 million.

Don Don: Inventory at the end of the fourth quarter was $107 million.

Don Don: From $96 million a year ago.

Dominic Blosil: We believe inventory levels are appropriately positioned on the balance sheet and in channel to meet current demand expectations.

Don Don: We believe inventory levels are appropriately positioned on the balance sheet and in channel to meet current demand expectations.

Dominic Blosil: I will now review our outlook for 2025. As Jeremy mentioned, our fiscal year 2025 guidance does not incorporate the impact of recently implemented or proposed tariffs. For fiscal year 2025, we are guiding to revenues of $595 to $615 million, representing a range from down 2% to up 2% versus fiscal year 2024, and adjusted EBITDA of $75 to $85 million. Several key factors are shaping our revenue outlook. First, we expect low single-digit growth in grill revenues, balancing optimism around our brand and innovation pipeline against an uncertain macroeconomic environment and tough year-over-year comparisons. Second, consumables revenues are expected to grow, supported by recent distribution gains.

Don Don: I will now review our outlook for 2025.

Don Don: As Jeremy mentioned, our fiscal year 2025 guidance does not incorporate the impact of recently implemented or proposed tariffs.

Don Don: For fiscal year 2025, we are guiding to revenues of 595% to $615 million.

Don Don: Representing a range from down 2% to up 2% versus fiscal year, 2024, and adjusted EBITDA of 75% to $85 million.

Don Don: Several key factors are shaping our revenue outlook.

Don Don: We expect a low single digit growth in grill revenues balancing optimism around our brand and innovation pipeline against an uncertain macroeconomic environment and tough year over year comparisons.

Don Don: Second consumables revenues are expected to grow supported by recent distribution gains.

Dominic Blosil: And third, we anticipate continued pressure on accessory revenues connected to the forecasted performance of meters. While we have strategic initiatives in place, we are taking a prudent approach given recent trends. On margins, we project gross margin in the range of 42.2% to 42.8%, with potential movement of down 10 basis points to up 50 basis points compared to fiscal year 2024. Benefits from supply chain efficiencies and improved pellet margins will likely be partially offset by a shift toward lower margin grills. From an operating expense perspective, we anticipate a step up in employee-related cash compensation of approximately $7 million in fiscal year 2025.

Don Don: Third we anticipate continued pressure on accessories revenues connected to the forecasted performance of meter.

Don Don: While we have strategic initiatives in place we are taking a prudent approach given recent trends.

Don Don: On margins.

Don Don: Gross margin in the range of 42, 2% to 42, 8% with potential movement of down 10 basis points to up 50 basis points compared to fiscal year 2024.

Don Don: Benefits from supply chain efficiencies and improved pellet margins will likely be partially offset by a shift toward lower margin grills.

Don Don: From an operating expense perspective, we anticipate a step up in employee related cash compensation of approximately $7 million in fiscal year 2025.

Dominic Blosil: This increase stems from a shift in our compensation structure. moving a greater portion of incentive compensation from equity based to cash performance bonuses for certain employees. While overall compensation expense remains relatively unchanged, this shift negatively impacts adjusted EBITDA. However, we believe this realignment better reflects market practices and strengthens team incentives. While we are not providing specific first quarter guidance today, we anticipate a year-over-year decline in revenues and adjusted EBITDA in the quarter.

Don Don: This increase stems from a shift in our compensation structure moves.

Don Don: Moving a greater portion of incentive compensation from equity based to cash performance bonuses for certain employees.

Don Don: Overall compensation expense remains relatively unchanged this shift negatively impacts adjusted EBITDA.

Don Don: However, we believe this realignment better reflects market practices and strengthens team incentives.

Don Don: While we are not providing specific first quarter guidance today, we anticipate a year over year decline in revenues and adjusted EBITDA in the quarter.

Dominic Blosil: In closing, we made meaningful progress in 2024, highlighted by a positive inflection in grill revenue. Gross Margin Improvement, and Strong Adjusted EBITDA Approval. While we are cognizant of an uncertain economic environment in 2025, we believe we have positioned the business for long-term profitable and sustainable growth. The underlying drivers of value creation remain in place, and we are confident in our strategic direction.

Don Don: In closing, we made meaningful progress in 2024 highlighted by positive inflection and grill revenues.

Don Don: Margin improvement and strong adjusted EBITDA growth.

Don Don: While we are cognizant of an uncertain economic environment. In 2025, we believe we are positioning the business for long term profitable and sustainable growth.

Don Don: Underlying drivers of value creation remain in place.

Don Don: We are confident in our strategic direction with that I will turn it over to the operator operator.

Operator: With that, I will turn it over to the operator. Operator? Thank you.

Speaker Change: Thank you we will now begin the question and answer session. If you would like to ask a question. Please press star followed by one on your telephone keypad. If for any reason wed like to remove that question. Please press star followed by two again to ask a question press Star one and as a reminder.

Operator: We will now begin the question and answer session. If you would like to ask a question, please press star followed by one on your telephone keypad. If for any reason you would like to remove that question, please press star followed by two. Again, to ask a question, press star one. And as a reminder, if you are using your phone, please remember to pick up your handset before asking a question. We will pause here briefly as questions are registered.

Speaker Change: If you are using your phone. Please remember it's a pick up your handset before asking a question we will cause here brief questions registered.

Hannah Glaessgen: The first question is from the line of Hannah Glaessgen with E.

Speaker Change: The first question is from the line of Hana question with B Riley. Please proceed.

Hannah Glaessgen: Reilly, you may proceed. Hey, good afternoon. Thanks for taking my question. I'd like to start with the accessories business. You know, fully understand you guys are embedding a bit of softness here in 2025. I'd like to expand a bit on is do you expect there to be an inflection at any point in the year? Or would that be upside to guidance? Any thoughts there would be great.

Speaker Change: Yes.

Speaker Change: Hey, good afternoon, Thanks for taking my question.

Speaker Change: I'd like to start with the accessories business.

Speaker Change: And you guys are embedding.

Speaker Change: Softness here in 2025.

Speaker Change: I'd like to expand a bit on.

Speaker Change: Do you expect there to be an inflection at any point in the year.

Speaker Change: Or would that be upside to guidance.

Any thoughts there would be great.

Yeah.

Jeremy Andrus: It's a good question. I mean, at this point, we aren't providing detail quarterly on our guidance, and certainly we wouldn't provide that on a category basis. I think that the general theme is that we're conservatively forecasting meter under the current circumstances and kind of based on how the business performed in Q4 in particular, which is their biggest quarter. I think I would reaffirm that our confidence in the brand, in the disruptive, product that they sell, as well as their leadership position in the space, reinforces our conviction and our ability to pull levers over time and sort of course correct on what we're seeing in the softness, in addition to the fact that we have levers that currently remain to be either unlocked or exploited by way of retail expansion, for example, as we think about a growing opportunity to drive what is currently a highly D2C business into retail.

It's a good question I mean at this point, we arent providing detailed quarterly on.

Speaker Change: Our guidance and certainly we wouldn't provide that on a category basis I think the general theme is that.

Speaker Change: We're conservatively forecasting meter under the current circumstances and kind of based on how the business performed.

Speaker Change: In Q4 in particular, which is their biggest quarter.

Speaker Change: I would reaffirm that our confidence in the brand in disruptive.

Speaker Change: Product that they sell as well as their leadership position in the space reinforces our conviction in our ability to pull levers over time and sort of course correct on what we're seeing in the softness in addition to the fact that we have levers that.

Speaker Change: Currently remain to be either unlocked or exploited by way of retail expansion. For example, as we think about a growing opportunity to drive what is currently a highly D to C business into retail.

Jeremy Andrus: So there are certainly opportunities ahead, but as of today, we believe it's prudent to manage our guidance with a degree of conservatism around the trends that we're seeing in Muter.

Speaker Change: There are certainly opportunities ahead, but as as of as of today. We believe it is prudent to manage our guidance with a degree of conservatism around the trends that we're seeing in meter.

Speaker Change: Yeah.

Jeremy Andrus: Got it. And you noted, you know, one point of impact was elevated advertising spend around the election impacting 4Q. Have you seen a normalization of return on ad spend as we've moved away from the election in 1Q? I mean, I think at a macro level, that's right. Unfortunately, the proof points in Q1 for meter aren't indicative of the future, in part because, as we've talked about in the past, they deliver, you know, 50% or more of their revenues in Q4. So, any insights we may gather in Q1, especially around, like, advertising spend and ROAS, may not be the best proxy for Q4.

Speaker Change: Got it and noted one point.

Speaker Change: Point of impact was.

Speaker Change: Elevated.

Speaker Change: Advertising spend around the election impactful.

Speaker Change: Have you seen a normalization of.

Speaker Change: Return on.

Speaker Change: And as we've moved away from the election and <unk>.

Speaker Change: I mean, I think at a macro level that's right. Unfortunately, the proof point in Q1, four meter arent indicative of the future in part because as we've talked about in the past they deliver.

Speaker Change: 50% or more of their revenues in Q4, so any insights we may gather in Q1, especially around like advertising spend and ROE as may not be the best proxy.

Jeremy Andrus: And so, certainly, we'll take those learnings over the next couple of quarters to inform, you know, updates to how we think about the year for meter. But as of right now, it's just a little bit early to suggest anything other than what we are planning in the business.

Speaker Change: For Q4, and so certainly we'll take those learnings over the next couple of quarters to inform.

Speaker Change: Updates to how we think about the year for meter, but as of right now it's just a little bit early to suggest anything other than what we are planning in the business.

Jeremy Andrus: Got it. And then just one more, if I could, the commentary around 1Q, is the decline largely related to expectations around meter or Is that reflective of declines in the other segments as well? No, it's reflective of multiple segments. I think in part because as we consider the sort of impact on demand as a result of tariffs, the pacing related to that and kind of the revenue recognition associated with that pacing is going to create some challenges in predicting quarter to quarter, how the year sequences. And so what we are sort of sticking to right now from a guidance standpoint is we believe it's prudent to consider Q1 down on top line as well as EBITDA.

Speaker Change: Got it and then just one more if I could.

Speaker Change: The commentary around <unk>.

Is the decline largely related to expectations around meter or.

Speaker Change: <unk>.

Speaker Change: Is that reflective of decline in the other segments as well.

Speaker Change: No.

It's reflective of multiple.

Speaker Change: Segments I think in part because as we consider.

Speaker Change: The sort of impact on demand as a result of tariffs.

Speaker Change: The pacing related to that and kind of the revenue the revenue recognition Richard mission associated with that pacing is going to create some challenges in predicting quarter to quarter, how the year sequences and so what we are sort of sticking to right now from a guidance Dan.

Speaker Change: Point is.

We believe it's prudent to consider Q1 down on top line as well as EBITDA and then we're just not in a position to share kind of sequencing across borders for the year just given the uncertainty.

Jeremy Andrus: And then we're just not in a position to share kind of sequencing across quarters for the year, just given the uncertainty in how tariffs will sort of influence the pacing between quarters.

Speaker Change: Tariffs will sort of influence the pacing between quarters.

Hannah Glaessgen: Got it. Thanks, guys.

Speaker Change: Got it thanks guys.

Thank you.

Brian McNamara: The next question is from the line of Brian McNamara with Anacord Genuity, you may proceed. Hey, good afternoon, guys. Thanks for taking the questions. I guess first off, I'm curious your view on the overall grill market in 2025. We've had three straight years of material decline. So kind of what's your expectation for the industry overall? You've taken share the last couple of years.

Brian: The next question is from the line of Brian, making tomorrow with an accord Genuity you May proceed.

Speaker Change: Hey, good afternoon, guys. Thanks for taking the questions.

Speaker Change: I guess first off I'm curious your view on the overall thrill market in 2025, we've had three straight years of material decline so kind of what's your expectation for the industry overall, you've taken share the last couple of years.

Jeremy Andrus: And Jeremy, if you could just remind us where we are today relative to 2019 levels, I think we're like 20% below, but just refresh my memory, please. Thank you. Yeah, hey, Brian. So first of all, as we think about the last three years, pace of decline from 2022 until last year, it certainly appears that we have found bottom. 22 was an aggressive sort of mid-high teens decline, high single digits in 23. And then last year, we believe that the industry was flat to slightly up. Our expectation for this year has been that grills will grow modestly flat to up one to two percent.

Speaker Change: Jeremy if you could just remind us where we are today relative to 2019 levels I think we're 20% below but just refresh my memory. Please thank you.

Jeremy Anderson: Yeah, Hey, Brian So so first of all.

Jeremy Anderson: As we think about the last three years piece of decline from 2022 until last year.

Jeremy Anderson: Sure. It certainly appears that we have found bottom.

Jeremy Anderson: 'twenty two is.

Jeremy Anderson: Aggressive sort of mid high teens decline.

Jeremy Anderson: High single digits in 'twenty, three and then last year.

Jeremy Anderson: We believe that the industry was flat.

Jeremy Anderson: Flat to slightly up.

Jeremy Anderson: Our expectation for this year has been that.

Jeremy Anderson: Grills will grow modestly flat to up 1% to 2%.

Jeremy Andrus: Of course, that forecast is many days old now. And so, you know, there are there it's it's going to take some time to understand the impact of tariffs on this industry. Our expectation is that we will see a price increases. And I think whereas we should be getting into a more normalized replacement cycle for for grills, just given the massive of replacement since the pandemic and the units that were pulled forward, we would expect to see some modest growth. Well, of course, we're we're we're doing business in a highly dynamic environment and and we're tracking it.

Jeremy Anderson: Of course.

Jeremy Anderson: That was a.

Jeremy Anderson: Debt.

Jeremy Anderson: And that forecast is many days old now.

Jeremy Anderson: No.

Jeremy Anderson: There are.

Jeremy Anderson: Is there.

Jeremy Anderson: It's going to take some time to understand the impact of tariffs.

Jeremy Anderson: On this industry.

Jeremy Anderson: Our expectation is that.

Jeremy Anderson: We will see price increases and I think whereas we should be getting into a more normalized replacement cycle.

Jeremy Anderson: For for growth just given the massive.

Jeremy Anderson: Replacement since the pandemic and the units that were pulled forward, we would expect to see some modest growth will of course, we're doing business in a highly dynamic environment.

Jeremy Anderson: And.

Jeremy Anderson: And we're tracking it.

Jeremy Andrus: I think it's important to note that Traeger did gain share in 24. We had a nice acceleration, notably from a from a unit volume perspective during the promotional period. But I'd say especially in the fourth quarter, I highlighted my comments that Black Friday was one of the highest volume sales days in the Traeger brand history. And so in terms of relative to 2018, we still believe we're we're down somewhat meaningfully from 2018. And we believe over the next, you know, sort of 12 to 12 to 36 months that the industry grows, begins to catch up with pre pandemic levels.

Jeremy Anderson: It's important to note that.

Jeremy Anderson: Trager did gain share in 'twenty four.

Jeremy Anderson: We had a nice acceleration.

Jeremy Anderson: Notably from a from a unit volume perspective during the promotional period, but I would say, especially in the fourth quarter a highlight in my comments that Black Friday was one of the highest volume sales days in the trader brand history.

Jeremy Anderson: And so.

Jeremy Anderson: In terms of relative to 2018.

Jeremy Anderson: We still believe we're down somewhat meaningfully from 2018, and we believe over the next.

Jeremy Anderson: Sort of 12.

Jeremy Anderson: <unk> 12 to 36 months that the industry grows begins to catch up with pre pandemic levels and of course.

Jeremy Andrus: And of course, there's a macro backdrop that we're also being sensitive to as well. Great, that's helpful.

Jeremy Anderson: There is a macro backdrop that we're also being sensitive to as well.

Jeremy Anderson: Yeah.

Speaker Change: Great that's helpful.

Jeremy Andrus: Secondly, you guys had a lot of success with the Pro Series 22 last year, it's kind of that sub $400 price point when it was on promotion. I'm curious, how are you going to attack that lower price point in 2025 that's served you so well? I mean, I know Woodridge looks like a great product, but it's definitely at that kind of higher price point. So curious your thoughts there. Thanks. Yeah, so Woodridge, you know, it certainly hits a price point, a premium but accessible price point. We think it's very well positioned in the market from a value perspective.

Speaker Change: Secondly, you guys have a lot of success with the pro series 22 last year, it's kind of that sub $400 price point when it was on promotion.

Speaker Change: I'm curious how are you going to attack that lower price point in 2025 debt service. So I don't know.

Speaker Change: It looks like a great product, but it's definitely not that kind of higher price points. So curious your thoughts there. Thanks.

Speaker Change: Yes, yes, so woodbridge.

Speaker Change: It certainly hit the price point.

Speaker Change: A premium but accessible price point, we think it's very well positioned in the market from a value perspective.

Jeremy Andrus: We did, you know, we learned a lot about price point and access to a broader segment of consumers as we promoted the Pro 22 three times last year at $389. You know, we had just an incredible response. It was, you know, it was a supply chain feat between our team and our retail partners to keep up with demand. But no question, the sub $500, the appetite for our brand beneath $500 was meaningful. And, you know, we have the ability to not only anniversary that this year, but to, you know, to ensure that we are fully in stock with our retailers.

Speaker Change: We did.

Speaker Change: We learned a lot about price point.

Speaker Change: <unk> access to.

Speaker Change: A broader segment of consumers as we as.

Speaker Change: As we promoted the pro 22.

Speaker Change: Three times last year at $380 million.

Speaker Change: We had.

Speaker Change: Just an incredible response.

Speaker Change: It was a supply chain zinc between our team and our retailer retail partners to keep up with.

Speaker Change: With demand, but no question the sub sub $500.

Speaker Change: The appetite for our brand believes $500 was meaningful.

Speaker Change: And we.

Speaker Change: We have the ability to not only anniversary that this year.

Speaker Change: But too.

Speaker Change: To ensure that we are.

Speaker Change: Fully fully in stock with our retailers and.

Jeremy Andrus: And, you know, we feel good about, I think it really spoke to not only the demand for the brand, but it spoke to the position of the brand where we promoted sub $500. And there was a clear step function in volume in that price point. So we feel good about the learnings. And we expect to continue that this year. And in the meantime, we also, you know, I think if you compare the Pro 22 to the Woodridge, I think it allows us to access different customers. Very, very clear step up or step up story or trade up story between the Pro 22 at $499 in the Woodridge, which is currently priced between $799 and $1599.

Yes, we feel good about I think it really spoke to not only the demand for the brand, but it spoke to.

Speaker Change: Positioning of the brand.

Where were we promoted sub $500.

Speaker Change: And there was a clear step function.

Speaker Change: In volume in that price point, so we feel good about the learnings and then we expect to continue that.

Speaker Change: This year and in the meantime, we also.

Speaker Change: If you compare the pro 22 to the to the Woodbridge I think it allows us to access different customers very very clear step up or step up store you trade up story between the pro 22 with $4 99 in the Woodbridge, which is currently priced between seven and $799 15 90 day.

Jeremy Andrus: Great, if I could just squeeze one last one in. Did you guys build any, I know inventories are up, you know, a decent amount in Q4. Did you build any inventory ahead of like the inauguration kind of anticipation of tariffs given your China sourcing exposure? No, I mean, what I would say is in in Q1, we've been focused on bringing in as much inventory as possible ahead of anticipatory tariffs.

Speaker Change: Great and if I could just squeeze one last one did you guys build any I know inventories are up a decent amount in Q4 did you build any inventory ahead of like the inauguration kind of anticipation of tariffs given youre trying to trying to sort of think exposure.

Speaker Change: No I mean, what I would say is in Q1, we've been focused on bringing in as much inventory as possible ahead of anticipatory tariffs.

Jeremy Andrus: The increase in inventory at the end of the year is really tied more to the Woodbridge launch and the fact that there's continued load-in taking place ahead of peak season, which is just normal seasonal sort of inventory moves within this business as you think about launching new innovation. I think the overarching theme here is inventory levels on our balance sheet and in channel continue to be well balanced, and we feel confident in those levels. And you also have to consider how much drawdown there's been over the last handful of years. And we're sort of back into a normal working capital cycle where you invest in sort of drawdown over the course of a season, but within a range we're now sort of comfortable with.

Speaker Change: The increase in inventory at the end of the year is really tied more to that.

Speaker Change: The Woodbridge launch and the fact that there is continued load in taking place ahead of peak season, which is just normal seasonal sort of inventory moves within this business as you think about launching new innovation I think the overarching theme here is inventory levels on our balance sheet and in channel continued to be well balanced.

Speaker Change: And we feel confident in those levels and you also have to consider how much draw down there has been over the last handful of years and we're sort of back into a normal working capital cycle, where you invest in sort of draw down over the course of the season, but within our range. We're now sort of comfortable with so you look at <unk> for example.

Jeremy Andrus: So you look at DIIs, for example. They fit within kind of our normal plan, and they're in a good spot.

Speaker Change: They fit within kind of our normal normal plan and they are in a good spot.

Zach: Great, thank you very much.

Speaker Change: Great. Thank you very much.

Zach: The next question is from the line of Peter Benedict with Baird. You may proceed. Hey guys, this is Zach back on for Peter. Thanks for taking our question.

Speaker Change: The next question is from the line of Peter Benedict with Baird. You May proceed.

Speaker Change: Hey, guys. This is Matt on for Peter Thanks for taking a question best wishes down.

Zach: Best wishes, Dom. I'm curious if you guys can quantify the benefit to Q4 grill revenue from the load in of those those Woodridge grills.

Speaker Change: Im curious if you guys can quantify the benefit to Q4.

Speaker Change: Revenue from the load in of those those woodridge grills.

Jeremy Andrus: And then just on the strength you guys are seeing during some of the holiday sale periods, it's been a couple quarters now, any changes to how you guys think about promotions, either in 25 or longer term? Yeah, so I don't know if we can quantify specifically what the load in was. I think what I can say is that it's not just Woodridge Load-In, you know, we did fill in some of this coming out of Q4, knowing that we would be delivering on our Woodridge Load-In in Q4. It did exceed expectation, but some of that capacity was unlocked due to the fact that our core line of grills and market exceeded expectations from a sell-through standpoint on the back of what continues to be a very high-performing promotion.

Speaker Change: And then just on the strength you guys are seeing during some of the holiday sale periods. It's been a couple of quarters now any changes to how you guys think about promotions, either 25 or longer term.

Speaker Change: Yes, so I don't know if we can quantify specifically what the load in was I think what I can say is.

Speaker Change: That.

Speaker Change: It's not just wood ridge load in.

Speaker Change: Did build in some of this coming out of Q4, knowing that we would be delivering on our woodbridge load in.

Speaker Change: In Q4, it did exceed expectation, but some of that capacity was unlocked due to the fact that our core line of Grilles and market exceeded expectations from a sell through standpoint on the back of what continues to be very.

Jeremy Andrus: So, again, I think there's a balance between the two. Certainly, there's an uplift because of Load-In. That's just normal, again, as part of the ebbs and flows of innovation cycles. But I think the underlying theme and I think a key underpinning to the performance is certainly around sell-through as well and the fact that also contributes to added replenishment.

Speaker Change: High performing promotion, so again I think there's a balance between the two certainly there is there is an uplift because of load and Thats just normal again as part of the.

The ebbs and flows of innovation cycles, but I think the underlying theme and I think a key underpinning to the performance is certainly around sell through as well and the fact that also contributes to added replenishment.

Speaker Change: Okay got.

Zach: Gotcha, that's helpful.

Speaker Change: That's helpful and then.

Zach: And then, you guys have made some nice progress on deleveraging the past couple years.

Speaker Change: You guys had made some nice progress on deleveraging in the past couple of years curious if you've communicated our longer term goal here and then maybe how are you thinking about free cash flow. This year relative to 2024, and maybe capex versus debt pay down within that thank you.

Dominic Blosil: Curious if you've communicated a longer term goal here, and then maybe how are you thinking about free cash flow this year relative to 2024, and maybe CapEx versus debt pay down within that? Thank you. Sure. On the leverage front, yeah, I think our long term goal is to drive at or below three turns of leverage. I think we feel comfortable kind of within a range of two to three turns. You've clearly seen the progress we've made sequentially over the last couple of years. And that continues to be a main focus. So we feel good with the progress we've made, but there's still some work to do to drive to those levels that we believe are appropriate and sustainable for our business.

Sure.

Speaker Change: On the leverage front, yes, I think our long term goal is to drive at or below three turns of leverage I think we feel comfortable kind of within a range of two to three turns.

Speaker Change: You've clearly seen the progress we have made sequentially over the last couple of years and that continues to be a main focus. So we felt good with the progress we've made but there's still some work to do to drive to those levels that we believe are appropriate and sustainable for our business.

Dominic Blosil: On the free cash flow side, I would say that, one, we'd expect free cash flow in 25 to be similar to, if not maybe slightly down, compared to 2024. And that's really driven by the fact that there continues to be a need to invest in working capital. We're just in a new environment where, you know, if you rewind to 2023, there was a massive drawdown in inventory that contributed meaningfully from a free cash flow standpoint in an abnormal way because we were cleaning up our balance sheet and in-channel inventory levels. Our working capital is now normalized, and so you'll see sort of investment slash drawdown on a quarter-to-quarter basis.

Speaker Change: On the free cash flow side, I would say that one we would expect free cash flow and <unk> 25 to be similar to if not maybe slightly down compared to 2024, and that's really driven by the fact that there continues to be a need to invest in working capital or just in a new environment, where.

Speaker Change: Rewind to 2023, there was a massive drawdown in inventory that contributed meaningfully from a free cash flow standpoint in an abnormal way because we were cleaning up our balance sheet and in channel inventory levels.

Speaker Change: Our working capital has now normalized and so youll see sort of investment slash draw down on a quarter to quarter basis. So I wouldn't expect anything out of the ordinary there in terms of swing in one direction or another save it's probably prudent to assume some degree of investment in working capital that would be offset.

Dominic Blosil: So I wouldn't expect anything out of the ordinary there in terms of a swing in one direction or another, save. It's probably prudent to assume some degree of investment in working capital. That would be offset by CapEx. You know, CapEx was sequentially down from 23 to 24. We think that it'll probably be flat to slightly down in 2025. You know, we're sort of forecasting at the midpoint of our guidance similar profitability levers. So there really isn't a meaningful unlock there. So I think net-net, from a free cash flow standpoint, it should look similar to 24, if not slightly down, depending on where working capital lands for the year in your model.

Speaker Change: By Capex.

Speaker Change: Capex was sequentially down from.

Speaker Change: 23 to 24, we think that it'll probably be flat to slightly down in 2025.

Speaker Change: We're sort of forecasting at the guide at the midpoint of our guidance similar profitability levers. So there really isn't a meaningful unlock there. So I think net net from a free cash flow standpoint. It should look similar to 2004, if not slightly down depending on where working capital lands for the year in your model, but certainly as we think.

Dominic Blosil: But certainly, as we think about prioritization of excess free cash flow, we first and foremost consider debt paydown in part and in conjunction with the broader strategy of driving leverage down to that target goal in conjunction with EBITDA growth over time.

Speaker Change: Prioritization of excess free cash flow, we first and foremost consider debt paydown in part and in conjunction with the broader strategy of driving leverage down to that target goal in conjunction with EBITDA growth over time.

Dominic Blosil: Great, thanks Tom.

Speaker Change: Great. Thanks, Tom and then last one for Jeremy.

Jeremy Andrus: And then last one for Jeremy. You mentioned pursuing that large manufacturing partner in Vietnam as of last quarter. Just curious where those efforts stand today and maybe any insight into the timing there. Thanks guys. Yeah, sure. So I would say, first of all, we've been manufacturing in Vietnam for a number of years now. And this is our second, it's global manufacturing partner who has a footprint in Vietnam going well. I was there about six weeks ago. And look, this is you know, fortunately, we have, you know, we have been working on some diversification of our sourcing base outside of China for a few years.

Speaker Change: You mentioned pursuing that large manufacturing partner in Vietnam.

Speaker Change: Last quarter I am just curious where those efforts stand today and maybe any insight into the timing there. Thanks guys.

Speaker Change: Yes, sure. So I would say first of all we've been manufacturing in Vietnam for a number of years now and this is our second.

Speaker Change: Its global manufacturing.

Speaker Change: Partner, who has a footprint in Vietnam going well.

Is there a.

Speaker Change: About six weeks ago and.

Speaker Change: Look this is.

Speaker Change: Yes.

Speaker Change: Fortunately we have.

Speaker Change: We have been working on some diversification of our sourcing base outside of China for a few years.

Jeremy Andrus: We have some, you know, we have, we have some partners who have the ability to, to scale nicely. Supply chain doesn't move quickly, but, but we've been working on that and we'll, we'll be in production, mass production with that partner in this, in this quarter. And so, you know, we, we, we have options, and we continue to develop those options. And I think we're trying to be, you know, really balance a dynamic environment that, you know, that, that is changing day by day with making good decisions. And acknowledging that. you know, ensuring that that that that the sort of shifting sands have settled before we make reactive decisions.

Speaker Change: We have some.

Speaker Change: We have we have some partners who have the ability to.

Speaker Change: <unk> scaled nicely.

Speaker Change: Supply chain doesn't move quick.

Speaker Change: Quickly, but we've been working on that and we'll be in production.

Speaker Change: Mass production with that partner.

Speaker Change: In this quarter and so we have options.

Speaker Change: And we continue to develop those options.

Speaker Change: I think we're trying to be.

Speaker Change: You know really balance a dynamic environment that.

Speaker Change: That is changing day by day, with making good decisions and acknowledging that.

Speaker Change: Ensuring that.

Speaker Change: The debt.

Speaker Change: Sort of shifting sands have settled before we make reactive decision. So we're sort of focused on both of those things, but Fortunately, we do have about 25% of our grilled production has been in Vietnam, and we have the ability to scale that up.

Jeremy Andrus: So we're sort of focused on both those things. But fortunately, you know, we do have about 25% of our grill production has been in Vietnam, and we have the ability to scale that up.

Operator: Thanks for watching. Thanks for watching us.

Speaker Change: Okay. Thanks, I'll pass it on.

Peter Keith: The next question is from the line of Peter Keith with Piper Sandler. You may proceed. Hey, thanks. Good afternoon. And Dom, it's been great working with you. So wish you nothing but the best.

Speaker Change: The next question is from the line of Peter Keith with Piper Sandler You May proceed.

Peter Keith: Hi, Thanks.

Speaker Change: Good afternoon, and Dom it's been great working with you. So wish you nothing but the best.

Peter Keith: I just think on Q1, I hate to ask a short term question, but it seems like a super dynamic consumer environment right now. Maybe you could contextualize what you're seeing so far quarter to date with the negative revenue guide. Is there been, I guess, recent weakness in the last couple of weeks or anything that's more category specific that you'd want to highlight? Yeah, I think what I would highlight is just pacing, right? We've talked in the past about a shift to direct import, for example. And when you think about the dynamics across the value chain as a result of the tariff news, you're working with multiple parties along that value chain, and it can dramatically influence the timing of revenue recognition.

Nick Back: Just thinking of Q1 I hate to ask a short term question, but it seems like a super dynamic consumer environment right now maybe you could contextualize, what youre seeing so far quarter to date with the negative revenue guide has there been I guess recent weakness in the last couple of weeks or or anything that's more category specific that you'd want to highlight.

Nick Back: Yeah, I think what I would highlight is just pacing right. We've talked in the past about a shift to direct import for example, and when you think about the dynamics in across the value chain as a result of the tariff news you are working with multiple.

Nick Back: Parties, along that value chain and it can dramatically influence the timing of revenue recognition. So this is really more.

Dominic Blosil: So this is really more information around the fact that we can't really forecast pacing from quarter to quarter. I think we have a good point of view ex-tariffs on how we think about the full year, and that's what we've guided to. It's just hard right now to put a stake in the ground on a quarter, knowing that there can be some fluidity in how orders are moved and recognized from a revenue standpoint. And that's really the main driver to the, not guide, but kind of the qualitative points we made on the call around Q1 specifically.

Nick Back: <unk>.

Nick Back: Information around the fact that we can't really forecast pacing from quarter to quarter. I think we have a good point of view ex tariffs on how we think about the full year and that's what we've guided to is just hard right now to put a stake in the ground on a quarter knowing that there can be some fluidity and how orders are.

Nick Back: And recognize from a revenue standpoint, and that's really the main driver to the not guide, but kind of the qualitative.

Nick Back: Points, we made on the call around Q1, specifically.

Dominic Blosil: Okay, I think that's an important distinction. So I guess interpreting that, have you seen any change in in sell through trends? Or are those pretty steady, and it's really just a timing issue? Again, we don't we don't speak, you know, intra quarter to sell through, even at a directional level. So I would just leave it at my previous comment. Appreciate the question, everyone. Okay, fair enough.

Nick Back: Okay, I think thats an important distinction so.

Nick Back: Interpreting that or have you seen any change in and sell through trends or are those pretty steady and it's really just the timing issue.

Nick Back: Yes, again, we don't we don't speak.

Nick Back: Or a quarter.

Nick Back: Two sell through.

Nick Back: Even at a directional level. So I would just leave it at my previous comment.

Nick Back: Hate the question now.

Nick Back: Okay.

Peter Keith: Let's talk about international. So rest of the world down 39%. I think last quarter, you called out meter.

Nick Back: Okay fair enough.

Nick Back: Let's talk about international.

Nick Back: So rest of world down, 39% I think last quarter, you called out meter.

Jeremy Andrus: I guess, just get us up to speed on what's happening with international, because I think that's a nice growth opportunity for you, but the numbers suggest otherwise. No, that's right. It really is a function of meter. Meter does a significant portion of their business in rest of world. And so that just has an over indexing influence on how we report rest of world. And so at the end of the day, it's just a function of the the softness we're seeing in meter, which is dragging the the consolidated view on rest of world down. Okay. All right.

Nick Back: I guess just.

Nick Back: Get us up to speed on what's happening with international.

Nick Back: I think that's a nice growth opportunity for you, but it's the numbers suggest otherwise.

Nick Back: No thats right. It really is a function of meter meter does a significant portion of their business and rest of world.

And so that just has an over indexing influence on.

Nick Back: How we report rest of world.

Nick Back: And so at the end of the day. It's just it's just a function of the softness we're seeing in meter which are dragging the the consolidated view on rest of world down.

Nick Back: Okay.

Peter Keith: Fair enough.

Peter Keith: I'll leave it there. Thank you very much.

Nick Back: Alright fair enough I'll leave it there thank you very much.

Nick Back: Yes.

Megan Clapp: The next question is from the line of Megan Clapp with Morgan Stanley. You may proceed. Maybe just a couple follow-ups. First, Tom, I think you mentioned your guide. Your guide is an excellent way to get started. Scroll Revenue, and I think you called it. one of which was Tough Compares. And I was just wondering if you could elaborate on whether that's. or POS comment. I understand the shipment compare is hard, but I thought that was kind of more. but at the same time. So I just wanted to clarify kind of what exactly the tough compare in the guide, correct?

The next question is from the line of Megan Clap with Morgan Stanley You May proceed.

Megan Clap: Hi, good evening. Thanks, so much maybe just a couple of follow ups from me. The first Dom I think you mentioned, you're guiding to or in your guidance and expectation for low single digit grow revenue and I think you called out kind of some puts and takes one of which was tough compares and I was just wondering if you could elaborate on whether that's a.

Speaker Change: Shipment or Pls comment I understand the shipment compare is hard but I thought that was kind of more related to <unk>.

Megan Clap: Lapping some dynamics in 'twenty three.

Megan Clap: But at the same time, you did lean into promotions at that mine.

Megan Clap: 24, so I just wanted to clarify kind of what exactly.

Megan Clap: The tough compare.

Speaker Change: You're referring to.

Megan Clap: And the guide correct.

Megan Clapp: That was your question.

Megan Clap: Yes that was your question.

Dominic Blosil: Yeah, it's really two things. The first one is related to lapping what was an increased promotional sort of approach to 2024. So we are lapping the promotions that benefited better growth. specifically in grills over the course of 2024, especially in Q2 and Q4. So there is some lapping to that that creates a slightly more challenging comp. And then the second element to that is just the wood-rich load-in. These are sort of one time in nature before you enter into a more normal cycle of sell-through and replenishment. So that creates a slightly tougher comp in Q4 with respect to that load-in.

Megan Clap: Yeah, Yeah, it's really two things. The first one is related to lapping what was an increased promotional sort of approach to 2024.

Megan Clap: So we are lapping the.

Megan Clap: The promotions that benefited.

Megan Clap: Better growth specifically in grills over the course of 2024, especially in Q2 and Q4. So there is some lapping to that.

Megan Clap: A slightly more challenging comp.

Megan Clap: And then the second element of that is just the woodrich loading.

Megan Clap: These are sort of onetime in nature before you enter into a more normal cycle of sell through and replenishment. So that created a slightly tougher comp in Q4 with respect to that load in.

Dominic Blosil: So those are really the two main points.

Megan Clap: So those are really the two that the two main points.

Megan Clap: Okay that makes sense.

Dominic Blosil: And then on the direct import comment, I won't ask about 1Q again, but I just want to make sure I understand exactly. Are you seeing less or fewer direct? have in previous years, I maybe would have thought. of the Tariff Environment. selling Susan. So is that kind of the read between the lines that retailers are pulling down direct import. No, I think, again, it's just a function of. the timing of tariffs and how we think about what that means from a pricing dynamic and how you think about that within the context of the impact it could have on a direct import partner.

Megan Clap: Then on the direct import comment I'm not I won't ask about <unk> again, but I just wanted to make sure I understand exactly what you're seeing are you seeing less or fewer direct import orders from retailer then.

Megan Clap: You have in previous years I, maybe would have thought you would be seeing more.

Megan Clap: Given the fluidity of the tariff environment, and especially as we go into <unk>.

Megan Clap: <unk> selling season, so is that kind of read between the lines that retailers are.

Megan Clap: Pulling down direct import orders.

Megan Clap: No I think again, it's just a function of.

Megan Clap: The timing of tariffs and how we think about what that means from a pricing dynamic and how you think about that within the context of the.

Megan Clap: The impact that could have on a direct import partner and so again, it's it's.

Dominic Blosil: And so, again, it's, it's, it's less about, like, what we specifically know in the more in the moment and more anticipatory in relation to what we don't know to ensure that we're not committing to something that could shift dramatically the next day, because this is such a highly fluid environment and the entire value chain and the associated partners we have across that value chain, you know, are reacting in kind as well. And so we just believe at the moment, you know, sharing full year guide is the right thing to do. And we believe we have good line of sight into the core business X tariffs.

Megan Clap: Less about like what we specifically know in them more in the moment and more anticipatory in relation to what we don't know to ensure that we're not committing to something that could shift dramatically. The next day because this is such a highly fluid environment.

Megan Clap: The entire value chain.

Megan Clap: The associated partners, we have across that value chain.

Megan Clap: Are reacting and kind as well and so we just believe at the moment.

Megan Clap: Sharing full year guide is the right thing to do and we believe we have good line of sight into the core business.

Megan Clap: Ex tariffs again, it's just very hard to establish precision quarter to quarter.

Dominic Blosil: Again, it's just very hard to establish precision quarter to quarter, DI being one component of that, right? If you have DI orders at the end of the quarter, and, you know, there's something that dramatically shifts, you know, the timing of that order and the window shifts into the next quarter. The size of these orders can be very influential to a specific quarter, and that just exposes us to pacing that may or may not play out based on what we know today. So, it's really not a comment on how we think about the full year X tariff and more the fact that there was just really a lack of uncertainty as to how these orders pace, given the fact that we plan, you know, our, our business early in the year as we budget, you know, and it's a combination of direct import and many other things.

Megan Clap: Being one component of that right. If you have di orders at the end of the quarter.

Megan Clap: And there is something that dramatically shifts.

Megan Clap: Timing of that order in the window shifts into the next quarter.

Size of these orders can be very influential to a specific quarter and that just exposes us to.

Megan Clap: Pacing that may or may not play out based on what we know today. So it's really not a comment on how do we think about the full year ex tariff and more of the fact that there was just really a lack of uncertainty as to how these orders pace given the fact that we plan.

Megan Clap: Our business early in the year as we budget.

Megan Clap: The combination of direct import and many other things and as we strategize with our retail partners. It may dictate a different approach to how orders pace. So really that's the main point that we're making here is <unk>.

Dominic Blosil: And as we strategize with our retail partners, it may dictate a different approach to how orders pace. So, really, that's that's the main point that that we're making here is it's an uncertainty surrounding revenue recognition sort of timing of orders as we work with our retail partners to strategize through this, this, this tariff uncertainty. And we can't really provide more more certainty or precision than that.

Megan Clap: Uncertainty surrounding revenue recognition sort of timing of orders as we work with our retail partners to strategize through this this this tariff uncertainty.

Megan Clap: And we can't really provide more and more certainty or precision than that.

Megan Clapp: Okay, thank you. That's clear and helpful. Thank you.

Okay. Thank you that's clear and helpful.

Megan Clap: Thank you.

Operator: There are currently no questions registered so as a brief reminder it is star one to ask a question. There are no additional questions waiting at this time.

Speaker Change: There are currently no questions registered so as a brief reminder, it is star one to ask a question.

Speaker Change: There are no additional questions waiting at this time I would like to pass the conference back over to the management team for any closing remarks.

Operator: I would like to pass the conference back over to the management team for any closing remarks. Apologies, everyone. We have lost connection with the speaker line. Please stand by while we reconnect. The call will resume shortly. Apologies everyone, we have lost connection with the speaker line. Please stand by while I reconnect. The call will resume shortly. Apologies everyone, we have lost connection with the speaker line. Please stand by while we reconnect them. The call will resume shortly.

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Operator: Excuse me, everyone, due to the disconnection, that will conclude today's call. Thank you for your participation.

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Speaker Change: Today's call. Thank you for your participation.