Q4 2024 Leatt Corp Earnings Call
[music].
Greetings and welcome to the Lear Corporation fourth quarter 2024 results call at.
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I would now like to turn the conference over to your host Mr. Michael Mason Investor Relations for Lear Corporation. Thank you you may begin.
Speaker Change: Thanks, Melissa good morning, and welcome to the Lee at Corporation Investor Conference call to discuss the financial results for the fourth quarter and full year 2024.
Speaker Change: The company issued a press release today Friday March 28, 2025 at eight a M Eastern and filed its report with the SEC.
Speaker Change: The press release is posted on <unk> website at Lee at Dash Corp Dot com.
Speaker Change: This call is being broadcast live and maybe accessed on the company's website, an audio replay of this call will be available for seven days and may be accessed from North America by calling 184451 to two nine to one or one for 123176671.
Speaker Change: For international callers the replay pin number is 1375 to 688.
Speaker Change: A replay of the webcast will be available immediately following this call and will continue for seven days.
Speaker Change: Certain statements in this conference call May constitute forward looking statements actual results could differ materially from those discussed in this call.
Speaker Change: The Corporation does not undertake any obligation to update such statements made in this call. Please refer to the complete cautionary statement regarding forward looking statements in today's press release dated March 28 2025.
Speaker Change: The company will make a presentation on the quarterly and year end results and then we'll open the call to questions.
Sean Mcdonald: I would now like to turn the call over to Mr. Sean Mcdonald CEO of Ria Corporation and good afternoon to you in Capetown Sean.
Good morning, Martin Thank you and thank you all for joining us today.
Sean Mcdonald: Our entire team is very encouraged by the return to double digit revenue growth in the fourth quarter total global revenues increased 14% compared to the fourth.
Sean Mcdonald: What else do you need 23.
Sean Mcdonald: It's also fueled by international sell cheap you stocking dynamics on the additional strong distribution partners in key areas.
Sean Mcdonald: We over in Texas continued to stabilize so this is a trend that we believe will continue.
Sean Mcdonald: It wont, particularly encouraging to see Bronx from so many of our product categories in the fourth quarter.
Sean Mcdonald: <unk>.
Sean Mcdonald: Increased by 14% increase.
Sean Mcdonald: <unk> increased by 41% and other product part for me to say to me.
Sean Mcdonald: One 9% with the Army Academy, a decrease in milk prices, which were down 10, 5% compared to last year.
Sean Mcdonald: Hello, couch exceeded our expectations and we look forward to delivering a pipeline of innovative products to the.
Sean Mcdonald: A D V market over the next several quarters.
Sean Mcdonald: We remain confident that we have the initial distribution core competencies and talents to meet the substantial savings.
Sean Mcdonald: Gross profit as a percentage of so well continue to improve during the quarter, increasing from 36% in last year's fourth quarter to 41% of domestic trading conditions continue to improve.
Sean Mcdonald: We continue to ship on new products and inventory levels continued to stabilize.
Sean Mcdonald: International distribution sales people, 24% in the fourth quarter, our inventory was about J C.
Sean Mcdonald: Almost maintained margins for the fourth quarter increased 5%.
Sean Mcdonald: On a full year, let's talk wait at least a $44 million or 7% or $3 2 million dollar decrease thank you Tien tsin.
Sean Mcdonald: Our consumer direct channel continues to display and packaging tools.
Sean Mcdonald: <unk> continues to build momentum around the world.
Sean Mcdonald: So they're not consumer facing channels in the U S continue to search and Seattle.
Sean Mcdonald: I think she's got all right.
Sean Mcdonald: Africa continues to show strong status.
Sean Mcdonald: International distributor sales decreased by 11, 5% for the full 2034.
Sean Mcdonald: And that will still be some adult Jason elevated inventory levels in the first half yeah.
Sean Mcdonald: Well by visa direct my Cat M T cells in South Africa can you keep MTB needle felt in the U S were strong in 2020 full these gains are partially offset a challenging U S multi vida.
Sean Mcdonald: The brick and mortar level, which contracted by 8%, resulting in a marginal Zara home, 3% increase in total EBITDA rate.
Sean Mcdonald: Yeah.
Sean Mcdonald: Margins for the full year increased by 2% from 42% to 40% as a result of promotional selling opportunity to move all the inventory in the first part as it comes.
Sean Mcdonald: Note that inventory.
Sean Mcdonald: Cash.
Sean Mcdonald: Well participation in demand for their products remain strong U S market dealers continue to manage our inventory level and some industry Kay mall is stabilizing.
Sean Mcdonald: Cash increased by $1 million to $12 $37 million with cash flows provided by operations on $2.8 million for the full year.
Sean Mcdonald: This result came despite.
Sean Mcdonald: She want conditions really investments in working capital capital expenditure on digital capabilities on park malls that will fuel future growth.
Sean Mcdonald: She continues to improve as our team continues to manage working capital efficiently.
Sean Mcdonald: In recent weeks, we have made some important strides and continuing to optimize our selling capabilities.
Sean Mcdonald: Okay.
Speaker Change: Pardon me a team of sales and marketing professionals around the world.
Speaker Change: We are confident that some of our newest additions to the team will have a strong impact on our performance moving forward.
Speaker Change: Of note due to the addition of raw ground lost to the team as VP of Mitel in Adv sells well.
Speaker Change: It is a 20 year track record of strong industry.
Speaker Change: And a passion for building high performance teams and dealer partnerships to the U S. G.
Speaker Change: Although these investments typically take some time to make an impression on our results. If you believe that building a great team will continue to be a cornerstone of our future platforms.
Speaker Change: Now I will turn to more detail can solids categories for the full year 2024.
Speaker Change: 73.
Speaker Change: Sales of our flagship lockbox win $2 4 million an 11%.
Speaker Change: Decrease.
Speaker Change: To bolster the decrease in volume almost back to Salt Lake Charles was 6% of our total revenues for yeah.
Speaker Change: Our body armor products are comprised of just protecting full upper body.
Speaker Change: Our body protection base, that's protected me buses knee and elbow oxide, but it's like obese and mountain biking shoes.
On the revenues for 2024 was 20 246, million% to 1% decrease year over year.
Speaker Change: Although revenues generated on the sale of upper body, and then protection increased by 14%.
Speaker Change: 1% decrease was primarily the result of a 36% you shouldn't really almost all of them hopefully comprised of Medisoft caboose Boston Schuster in yet.
So it has been a particularly constrained category due to postponement stocking dynamics on an industry wide basis.
Speaker Change: Almost all of them do you want to think about cultivating this oh yeah.
Speaker Change: All the sales were $8 $9 million, 25% D C Seattle yet.
Speaker Change: Although strong shipments of our Adv Hollister Wankel invention by providing continued the decrease is due primarily to the city.
Speaker Change: Second the safety piece in Buffalo, and MTV Salto International customers during 2010 coal, although it will still be just continue to do that.
Speaker Change: Inventory levels as a result of post Brexit stocking dynamics that continue to improve.
Speaker Change: Just a question of lifestyle and wondering persons in produce.
Speaker Change: All the sales were 19% of our revenues probably yes.
Speaker Change: Although life products parts and accessories category, which is comprised of cargo population back into apparel items that include J. These pants shorts jackets and aftermarket support items.
Speaker Change: Revenues were $10 $74 million, while at the same D. C area. The decrease was partially due to a 22% decrease in some of our multi on MTV technical apparel lines. It's walking by this lack of knowledge and Bakken, Yes of course.
Speaker Change: Partially offset by strong sales of ATB Technical Apparel example, adventure Microsoft providing.
Speaker Change: Products and accessories category or 24% of our revenues yeah.
Now I will turn to our financial results in more detail.
Speaker Change: Total revenues for the fourth quarter of 'twenty, 'twenty, four with $11.19 billion up 14% compared to minus $8 million for the fourth quarter of 2023.
Speaker Change: Net loss for the fourth quarter was $446000 or seven cents per basic and second bench test on duty.
Speaker Change: Sure.
Speaker Change: As compared to a net loss of $1 $46 million or 24 cents per basic and 23 cents per diluted share for the fourth quarter of 'twenty two.
Speaker Change: Total revenues for the full year, 2024, well $44 million, a 7% decrease compared to revenues of $47 million to $4 million for the full year 2023 with decreasing worldwide. This is attributable to a 2.73 million dollar decrease in human cells.
Speaker Change: Mm $310000, each and make ourselves a $120000 decrease in body almost all on a $60000 decrease in other products parts and accessory sales.
Speaker Change: Net loss for the full year 2024 walls to $2 million or 35 cents per basic share and see four cents per diluted share.
Speaker Change: By 374%.
Speaker Change: Okay, 282 hundred $3000 or <unk> 13 cents per basic share and <unk> 13.
Speaker Change: Take shape for 2023.
Speaker Change: We have continued to meet its working capital needs from cash on hand, and internally generated cash flows from operations and at December 31, 2024, the company had cash and cash equivalents of $12 three $7 million compared to $11 3 million at December 31, 2023 and.
Speaker Change: Current ratio of 522.
Speaker Change: Two one.
Speaker Change: In other developments during the quarter, we have approximately announced that yet has once again been recognized with two prestigious design and innovation awards for 2025.
Speaker Change: The first award was in the apparel category with a Y kit MTB one zero in the second within the components category.
Speaker Change: <unk> 8.0 Ti pedals.
Speaker Change: A design and innovation awards are considered the gold standard in the Bakken to St. S products are portraying real world testing by panel of 50 international experts, including journalists just bottoms energy loss.
Speaker Change: Winning in key categories is a huge achievement and a testament to our team's dedication to innovation.
Speaker Change: And quality in addition, well, let's say extremely thoughtful announce our sponsorship of highly respected supercuts athletes called Nichols, Justin Hill on call to them.
Speaker Change: The partnerships reinforces our commitment to providing world class and we look forward to seeing these athletes compete at the highest level all showcasing the innovation and quality that yet is.
Speaker Change: Is defined bot.
Speaker Change: To summarize.
Speaker Change: D C aspect about the teach out yet although they also have some challenging geopolitical trade and economic headwinds globally that could impact demand inventory continues to be digested participation remains strong and ordering patterns continued to increase and have started to focus reach all revenues.
Speaker Change: These are things that we do believe will continue as ordering patterns of consumer level and ultimately the distributor and dealer levels continue to improve it.
Speaker Change: So I expect working capital investments to grow in the coming periods.
Speaker Change: Confident that we have sufficient strong liquidity to deal with those folks.
Speaker Change: Just thoughts on constrained brick and motor much you just south of the U S.
Speaker Change: Our team remains enthusiastic about the recovery that is currently in place on the latest additions to our team.
Speaker Change: We will continue to optimize our selling capabilities.
Speaker Change: Moving on to finding it came up sales and marketing professionals around the world.
Speaker Change: Some very exciting new distributor partnerships in the United Kingdom, Europe, and emerging markets, but we will continue to pose a threat to our revenues over the next few quarters.
Speaker Change: It was particularly encouraging once a bankruptcy body armor, all mix and other product parts and accessories returned to growth in the fourth quarter on a global basis.
Speaker Change: Well I can tell them about 80 lifted 80 bps also exceeded our expectations and we remain confident that we have the track record and ability to meet the substantial and growing market segments in the us.
Speaker Change: The coming quarters.
Speaker Change: With a strong portfolio of innovative products in the market and in the pipeline are multichannel selling organization that is growing and developing and a robust balance sheet to feel branding, but we remain confident that we are very well positioned for future sustainable growth and shareholder value.
Speaker Change: Although I would like to thank our employees their families. Our dedicated employees business partners and team right as well the continued strong support and goodbye.
Speaker Change: I'd like to turn the call over to the operator for questions.
Speaker Change: Thank you at this time, we'll be conducting a question and answer session. If you'd like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question can you.
Speaker Change: You May press star two if he'd like to remove your question from Mccann for participants using speaker equipment. It may be necessary to pick up your handset before pressing the star keys, one moment. Please poll for questions.
Speaker Change: Thank you. Our first question comes from the line of Christopher Muller Private Investor. Please proceed with your question.
Christopher Muller: Hey, Sean I hope you're doing well.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Hey, good to speak with you.
Speaker Change: Good to see the return to double digit growth.
Speaker Change: I have maybe a three or four questions today.
Speaker Change: First could you comment on the impact and any any response, thus far to the escalating trade war and tariffs.
Speaker Change: Maybe more specifically what degree of flexibility.
Speaker Change: Do you have on the manufacturing side to mitigate this.
Speaker Change: No absolutely it is.
Speaker Change: He is a dynamic that we are watching very very closely and with the increase in tariffs already.
Speaker Change: And the trade war that is clearly in play.
Speaker Change: We are taking steps correctly to work on the flexibility that your seatbelt and we've got very good relationships with our suppliers to Asia as you will know.
Speaker Change: We see a whole yes. It guy he already started working on on a supply side channels outside of China and.
Speaker Change: We've got some supply setup now in Cambodia in Bangladesh, and Thailand and Taiwan.
Speaker Change: And seem to be in Vietnam as well.
Speaker Change: Many of the factories that we all working with.
Speaker Change: Do you have.
Speaker Change: The factories are in areas outside of China.
Speaker Change: And of course.
Speaker Change: Are you aware of the fact that Asia as the targets are in generally in general it's something that we are all we need to keep in Ireland.
Speaker Change: So we are working very closely with our manufacturers right now and you look at what's a flexibility that I have in terms of our supply and in terms of pricing.
Speaker Change: And in terms of support so that we can maintain the margins that we had been able to achieve.
Speaker Change: Currently it.
Speaker Change: It hasn't affected our margins.
Speaker Change: Charlie.
Speaker Change: And of course, we're very aware of the fact that this is something that needs to be managed very carefully.
Speaker Change: Okay, and then possibly on a related note in the in the 10-K you noted the increase in rent expenses related to <unk>.
Speaker Change: Inclusion of consolidation warehousing costs to facilitate global shipping.
Speaker Change: Is this a reclassification of expenses that were previously under cost of goods or are you doing something differently on the operation side.
Speaker Change: Well actually we're just what we're doing and it's been reclassified reclassifying. Some of the the expenses that were under cost of goods previously.
Speaker Change: For China consolidation, and we're bringing that all.
Speaker Change: And in order to manage that really carefully and putting it in.
Speaker Change: You can see warehousing costs and below the poster child.
Speaker Change: Okay great.
Speaker Change: And then in regards to the personnel changes in the U S and the new leadership on the motto side.
Speaker Change: Does this signal any sort of.
Speaker Change: And direction and generally how are you thinking about.
Speaker Change: U S sales and marketing priorities as we move through the year.
Speaker Change: Absolutely.
Speaker Change: I think it's really just an intensification of our efforts, particularly on the on the mitral cells side of things on and on I mean, MTBE continues to be a strong part of express in the U S, where we feel that we have a lot of opportunity.
Speaker Change: And for market penetration, even though the MTB our industry remains under some stress.
Speaker Change: I think it has some great opportunities on the MTBE side of things strategically really.
Felt that we needed to intensify some of the selling and selling activities, particularly on the micro side, which is why we bolt on a V. P. Mcnulty yourselves that has got really strong selling and operational skills on <unk>.
Speaker Change: Fantastic.
Speaker Change: <unk> com.
Speaker Change: Contacts and relationships, which we feel is really really important and there'll be looking now backlog at all.
Speaker Change: The selling organization that we have and <unk>.
Speaker Change: Really to really having a mix between employee sales reps and perhaps in some areas where it makes sense.
Speaker Change: Looking at getting our independent rep groups on.
Speaker Change: On board.
Speaker Change: Being able to to make sure.
Speaker Change: That way, we are able to sell strongly we have the right mix in place.
Speaker Change: So I think in general on the.
Speaker Change: They can move to side in the U S. A we are very focused now.
On getting better coverage and I don't see anything on servicing our dealers.
Speaker Change: A lot more professionally.
Speaker Change: And hopefully you'll see that flow through to the results over the next several quarters.
Speaker Change: Great. That's all good to hear just as one last question for me.
Speaker Change: The the financial difficulties and restructuring it KTM has been widely discussed.
Speaker Change: Maybe you could just comment on any effects youre seeing there and.
Speaker Change: And how this may relate to the softness youre seeing on the mode of dealer sales in the U S.
Speaker Change: Absolutely that's a very big factor that's been that's been around for the last six months and I mean, I think the biggest impact that we see is really on the St. Timothy I know at the dealer level because deals are.
Speaker Change: I mean, there's a lot of dealers have got significant KPN stock of.
Speaker Change: Motorcycles, and I know probably in a position that we will be looking to channels.
Speaker Change: In order to solve is of course, they've looked at on a state level and six plus.
Speaker Change: And all those banks.
Speaker Change: Could potentially be.
Speaker Change: Distressed vaccine.
Speaker Change: <unk> already all the states and so many deals all under stress because of what's going on with KPN.
Speaker Change: And he has them.
Speaker Change: You know it resulted in some industry turmoil and mainly on the uncertainty level because there's no certainty as to exactly what is going to happen with Casey and whether it is going to be some support coming from a by Oh.
Speaker Change: Or is it all going to need to liquidate.
Speaker Change: And the market turmoil and the American industry in Sydney, I mean, it's definitely being impacted if it's really bad timing, because obviously off the clothing things are already a little bit stretched.
Speaker Change: So have you seen a dealer sentiment.
Speaker Change: And at the time.
Speaker Change: That's really in very strongly and things has been certainly impacted.
Speaker Change: And we hope that the uncertainty Ah you know moves through the system as a source as possible.
Speaker Change: But this is a patient remained strong our people are riding and people still want to arrive. So that obviously is a big plus.
Speaker Change: We are monitoring very closely the foot traffic through the doors.
Speaker Change: And I think I think economically no it shouldn't.
Speaker Change: So I stopped to drop them, even stress, obviously being a little bit a little bit sticky.
Speaker Change: And we can see some choppiness now.
Speaker Change: Now also with inflation.
Speaker Change: So there's a bit about efficiency on that level as well I think at the dealer level because of course when interest rates start dropping that people are in a much bigger appetite to finance things like motorcycle and I think that's going to also have a really positive impact on dealers in the U S and other times. They yes, they tend to be a factor the X.
Speaker Change: Conditions are in effect and cause it's stocking dynamics continue to be a factor although less of a factor then in the MTBE industry, where.
Speaker Change: So definitely in play.
Speaker Change: Alright, well, that's all very helpful. Thanks for the time, Sean Finn.
Speaker Change: I just got back.
Speaker Change: Thank you. Our next question comes from the line of Nick Fisher Private Investor. Please proceed with your question.
Nick Fisher: Thanks for taking my call Sean.
Nick Fisher: I just had a couple of questions. The first is you know with the industry relatively stabilized as you said how do you think about the use of cash here at nearly $2 a share now.
Nick Fisher: Okay.
Nick Fisher: Obviously things are starting to increase nine in terms of just.
Nick Fisher: Clearly on the international distribution side of things, we are already starting to see an uptick in the ordering.
Nick Fisher: I think we.
Nick Fisher: We're all going to start seeing cash being put back into working capital and inventory Theres no doubt about that.
Nick Fisher: Over the next few quarters and you'll be investing in inventory for sure which is of course I mean, we get a great return on that I'm, sorry, that's the best place for it to be and receivable.
Nick Fisher: And and tenancy all suppliers in the form of the deposits in.
Nick Fisher: <unk> cost of capital investment.
Nick Fisher: So we do have some.
Nick Fisher: Some cash.
Speaker Change: Are we going to be using over the next few quarters.
Nick Fisher: And then of course.
Speaker Change: Looking at different opportunities to use our cash as efficiently as possible.
Speaker Change: Hmm.
Speaker Change: Okay very good I appreciate that and you you you essentially addressed it but just wanted to get a little more color on on on the use of cash for working capital growth as you mentioned in the in the release and and and the need to dress inventory levels, a little bit with the with the return to growth in the E. D D.
Speaker Change: Right.
Speaker Change: Sure absolutely.
Speaker Change: So I think yeah as I said, I mean, we're going to be investing in inventory and we're going to be investing in working capital in the form of accounts receivables and then I mean.
Speaker Change: So marketing you can expect us to intent to buy some of our marketing activities and some of these new categories that we've got in <unk>.
Speaker Change: He is a big category for US now and we've already had some some fantastic initial success and the products are fantastic.
Speaker Change: Many of our distributors and dealers around the world are very supportive of hope you're getting on the ATV side.
Speaker Change: Also requires investment.
Brian: Brian the a b market.
Brian: Certainly going to impact on our inventory investments and our investments are in receivables and Ah interesting best thing and generally marketing to fuel future growth. So that's that's really what I was referring to in terms of working capital spend that we can expect nothing out of the ordinary nothing that's one but didn't expect.
Brian: Uh huh.
Brian: Company that is looking to grow double digits.
Speaker Change: Very good thank you for the color John I appreciate it.
Brian: Thanks, Matt appreciate it chunky.
Speaker Change: Thank you. Our next question comes from the line of Chris Brennan with Milwaukee Milwaukee Capital. Please proceed with your question.
Chris Brennan: Hey, Sean.
Speaker Change: Good to hear that things are back to growth and that our orders are stabilizing here.
Chris Brennan: If I take a step back.
Chris Brennan: If I if I look back to where you guys were in 2020, you guys were about a $40 million top line business at that point.
Chris Brennan: You're you're operating it and you're still roughly there.
Chris Brennan: Around $40 million or so of itself yet the Opex line for you guys has almost doubled from $10 million to $20 million.
Chris Brennan: And in the business as a whole has cumulatively lost.
Chris Brennan: In terms of net income for them for nine quarters or so.
Chris Brennan: So my question is if you and I have talked about $100 million in sales is the point, where this business really gets to scale and can really start generating healthy profits I'm. Just wondering is that still a feasible goal.
Chris Brennan: And as we grow into that as we get to that point do you expect to earn profits.
Chris Brennan: Get there or is it kind of a breakeven lumpy too.
Chris Brennan: All my free cash flow and gross profit center into growth and telephone.
Chris Brennan: It's a good question.
Chris Brennan: And I mean, not I think.
Chris Brennan: This is obviously you know with.
Chris Brennan: Jamie to $100 million and hopefully you know we do believe that we can get there.
Chris Brennan: And I think there's profitability on the way that I think we don't think that we will be break even if we do do a $100 million.
Chris Brennan: It will be strongly profitable.
Chris Brennan: At that point.
Chris Brennan: And of course, you know we have.
Chris Brennan: Have.
Chris Brennan: We set our course for the future growth that we are expecting so the team that they have on board now is is really set up.
Chris Brennan: And then marketing vehicles that we have now is it set up for the categories that we have before we hit to test categories that we have.
Chris Brennan: The three primary markets that we are trying to sell T, which is of course mitel a N T D.
Chris Brennan: And AED.
Chris Brennan: And.
Chris Brennan: The growing powder products and that we have on board.
Chris Brennan: And you know we were expecting to see to get back to double digit growth on an annual basis.
Chris Brennan: It is possible.
Chris Brennan: And should we do that along the way.
Chris Brennan: Good thing to have.
Chris Brennan: Profitability and growth and profitability.
Chris Brennan: On a certainly on an annual and a sequential basis now.
Chris Brennan: There may be some choppiness as we as we go.
Chris Brennan: Over the next few quarters I think it makes you get them, but we remain focused on trying to do.
Chris Brennan: <unk> revenues every three to five years.
Chris Brennan: And we certainly think that we do have the two onboard now and many of the investments in R&D and product development.
Chris Brennan: You know I'm not going to be increasing in order to able to do those kinds of numbers.
Chris Brennan: So I think.
Chris Brennan: You know we are expecting profitability, along the way to summarize it.
Chris Brennan: And I shouldn't be double our revenues.
Chris Brennan: It will be a strongly profitable business.
Speaker Change: Got it and then how do you think about like a normalized level of sales for the business.
Chris Brennan: Yeah.
Sleep volatile and trying to be dependent on macro trends riding trends and trade wars and whatever else, but is there a way for you to say like Hey, you know I really think that this industry is 30% off its peak.
Chris Brennan: Thereby b cell footballs that or X percent higher or does it just any kind of simple mental math that you use when you're thinking about.
Chris Brennan: Testing ahead of what I think is going to be growth.
Chris Brennan: What I think that growth actually it looks like I get the double digit target but.
Chris Brennan: As the industry leader depressed.
Chris Brennan: Depressed to a certain level that everybody should be.
Chris Brennan: You know a certain percent higher.
Chris Brennan: I mean, it's a it's a it's obviously a very good questions.
Chris Brennan: It's a.
Chris Brennan: It's quite a analytical question and I mean, I think it's difficult to answer that question, what very broad strikes because different categories at different industries.
Chris Brennan: Okay.
Chris Brennan: Labels right now in terms of the recovery from the.
Chris Brennan: The hang of after Covid and in different industries are exposed.
Chris Brennan: To some of the risks that are out there right now.
Chris Brennan: At different levels.
Chris Brennan: I wouldn't say that it's a kind of a.
Chris Brennan: We would strike.
Chris Brennan: So that I can verify what on what I'm seeing in.
Chris Brennan: And some of the reporting that we do and get to see in the industry and Sydney in discussions or I.
Chris Brennan: And exposed to the sum of all of our industry peers.
Chris Brennan: And I mean, I think the industry, certainly I can say still depressed.
Chris Brennan: At a normalized level yet.
But I think I should we have a double digit growth over the next one to two years.
Chris Brennan: Things will then be.
Chris Brennan: No normal often.
Chris Brennan: And then.
Chris Brennan: With me for many other industry players if they do do that I.
Chris Brennan: I think that they would be on track to reach their golf Tee.
Chris Brennan: So it's it's it's quite a difficult question in the current turmoil that we that we see in the market.
Chris Brennan: Outfit them, but I do think things I'll say things go to first to put an exact the same page on the entire industry is a little bit challenging, but I am I think they said lease as many opportunities for growth and if you look also at a company like <unk>, where we.
Chris Brennan: Our sport in our infancy in terms of market share in many of the categories that we sell them, we still have a huge amount of opportunity.
Chris Brennan: And I think that is a very strong position to be coming up this situation from.
Speaker Change: Got it makes sense. Thank you Sean.
Chris Brennan: Thanks, Thanks, very much Chris.
Sean Mcdonald: Thank you, ladies and gentlemen that concludes our question and answer session I'll turn the floor back to Mr. Macdonald for any final comments.
Sean MacDonald: Thank you all for joining us today on this conference call. We look forward to next call to review the results of the 2025 first quarter.
Sean MacDonald: Thank you. This concludes today's conference call you may disconnect. Your lines at this time. Thank you for your participation.