Q1 2025 Utz Brands Inc Earnings Call - Q&A
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Desert: Ladies and gentlemen, thank you for standing by my name is Desert me and I will be our operators operator for today's call. At this time I would like to welcome everyone to the ups brands, Inc. First quarter 2025 earnings call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session.
Operator: Ladies and gentlemen, thank you for standing by.
Desiree: My name is Desiree and I will be your operator for today's call. At this time, I would like to welcome everyone to the UTZ Brands Inc. First Quarter 2025 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, again, press the star one.
Speaker Change: If you would like to ask a question. During this time simply press star followed by the number one on your telephone keypad. If he would like to withdraw your question again press. The star one I would now like to turn the conference over to Kevin powers head of Investor Relations you may begin.
Kevin Powers: I would now like to turn the conference over to Kevin Powers, Head of Investor Relations. You may begin.
Kevin Powers: Thank you operator, and good morning, everyone.
Kevin Powers: Thank you, operator, and good morning, everyone. Thank you for joining us today for our live Q&A session on our first quarter 2025 results. With me at today's call are Howard Friedman, CEO, and Ajay Kataria, CFO. I hope everyone has had a chance to listen or read a prepared remarks, and also view our presentation, all of which are available on our investor relations website.
Kevin Powers: Thank you for joining us today for our live Q&A session and our first quarter 2025 results.
Kevin Powers: With me on today's call are Howard Friedman CEO, Andy Jacobs our CFO.
Kevin Powers: Everyone has had a chance to listen or read the prepared remarks and also of your presentation all of which are available on our Investor Relations website.
Kevin Powers: Before we begin our Q&A session, I just have a few housekeeping items to review. Please note that some of our comments today will contain forward-looking statements based on our current view of our business and the actual future results may differ materially. Please see our recent S&C filings, which identify the principal risks and uncertainties that could affect future performance. Today, we will discuss certain adjusted or non-GAAP financial measures, which are described in more detail in this morning's earnings materials. Reconciliations of non-GAAP financial measures and other associated disclosures are contained in our earnings materials and posted on our website.
Kevin Powers: Before we begin our Q&A session I just have a few housekeeping items to review.
Kevin Powers: Please note that some of our comments today will contain forward looking statements based on our current view of our business and the actual future results may differ materially.
Kevin Powers: Please see our recent SEC filings, which identify the principal risks and uncertainties that could affect future performance.
Kevin Powers: We will discuss certain adjusted or non-GAAP financial measures, which are described in more detail in this morning's earnings materials reconciliations of non-GAAP financial measures and other associated disclosures are contained in our earnings materials and posted on our website.
Kevin Powers: Now operator, we are ready to open up the line for questions. Thank you. We will now begin the question and answer session. If you have dialed in and would like to ask a question, please press star one on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, press star one again. If you are called upon to ask your question and are listening via speakerphone on your device, please pick up your handset to ensure that your phone is not on mute when asking a question. Again, press star one to join.
Kevin Powers: Now operator, we are ready to open up the line for questions.
Kevin Powers: Thank you we will now begin the question and answer session. If you have dialed in and would like to ask a question. Please press star one on your telephone keypad to raise your hand and join the queue.
Kevin Powers: It would likely be charter question.
Kevin Powers: Revpar one again.
Kevin Powers: If you are called upon to ask you a question in a listening via speaker phone or device. Please pick up your handset to ensure that your phone is not on mute when asking your question again press star one to join the queue.
Speaker Change: And our first question comes from the line of Andrew Lazar with Barclays. Your line is open.
Andrew Lazar: And our first question comes from the line of Andrew Lazar with Barclays. Your line is open. Great. Thanks so much. Good morning, everybody. Morning, Andrew. Morning.
Andrew Lazar: Great. Thanks, so much good morning, everybody.
Kevin Powers: Andrew Good morning.
Kevin Powers: I was hoping maybe to start off with you could just explain the difference between sort of flat overall retail sales in the 3% organic sales growth that you reported this quarter just trying to get a sense of how much of that difference. If any is sort of timing related that may reverse in future quarters or if it was simply unmeasured channels.
Andrew Lazar: I was hoping maybe to start off with, if you could just explain the difference. flat overall retail. and Organic Cells. Recorder. Just trying to get a sense of how much of that difference. Sort of timing related, they may reverse in future quarters or.
Kevin Powers: And the like.
Howard Friedman: Yeah, I appreciate the question, Andrew. Look, I think broadly, I think what you see in our results is a lot of the benefits of some of the opportunities that we continue to have, as you think about expansion in our expansion geographies, as well as obviously in our core. Specifically to the bridge between net sales and consumption is exactly what you said, which is we have had some significant strength in our untracked channels. Natural channel is doing quite well for us, discount and club. We also have the benefit now of the rice distribution center being open.
Speaker Change: Yeah I appreciate the question Andrew look I think broadly.
Speaker Change: I think what you see in our results is a lot of the benefits of some of the opportunities that we continue to have as you think about expansion and our expansion geographies as well as obviously are in our core specifically you see the bridge between net sales and and.
Speaker Change: Consumption is exactly what you what you what you said, which is we have had some.
Speaker Change: Significant strength in our untracked channels natural channel is doing quite well for us discounting club.
Speaker Change: We also have the benefit now of the rights distribution center being open. So we are seeing much.
Howard Friedman: So we are seeing much better throughput through that facility as we consolidated six warehouses down to one. And so we're getting our shipments out a little bit earlier. So there's a little bit of revenue recognition, which we'll expect to continue. But there is nothing in these results that were sort of that were pulled forward in the in the quarter. And we're obviously quite pleased with how the volumes have responded. helpful.
Speaker Change: Much better throughput through that facility as we consolidated six warehouses down to one and so we're getting our shipments out a little bit earlier, so there's a little bit of revenue recognition, which we'll expect to continue.
Speaker Change: But there is nothing in these results that we're sorting that were pulled forward in the in the quarter and we're obviously quite pleased with how the volumes have responded.
Speaker Change: That's helpful. Thank you and then I know you had anticipated.
Andrew Lazar: Thank you. And then I know you had anticipated some volume share.
Speaker Change: Some volume share gains, but some value share contraction in core markets in the near term.
Andrew Lazar: Value Share Contraction and Core Market . Is that simply the bonus pack effort? So how do you balance the volume outcome?
Speaker Change: Is that simply the bonus pack efforts and if so how do you balance the volume outcome with the return on such programs as we think about sort of the sustainability of the approach.
Andrew Lazar: return on such programs as we think about sort of the sustainability.
Speaker Change: Yes, so youll recall when we when we met in December 'twenty three at our Investor Day, one of the things that we've said pretty consistently is that we want to be able to hold share in our core while we're growing and expansion geographies, yes, and this is largely held true as we've continued to grow our volume shares yes.
Howard Friedman: Yeah, so you'll recall when we met in December 23 at our investor day, one of the things that we've said pretty consistently is that we want to be able to hold a share in our core while we're growing in expansion geographies. Yeah, and this is largely held true as we continue to grow our volume shares. You know, the core obviously is a little bit more competitive, naturally, because we are in a lot of cases the number two player. And so we're a little bit more exposed to where the category looks. But I think what you see right now is a couple of things.
Speaker Change: The quarter, obviously is a little bit more competitive naturally because we are in a lot of cases, the number two player and so yes.
We're a little bit more exposed to where the category looks but I think what you see right. Now is a couple of things I think first you do see the benefit of bonus packs secondly.
Howard Friedman: I think first, you do see the benefit of bonus packs. Second, you're seeing incremental distribution in Boulder Canyon. and on the border, which is also helping. And so, yeah, I think a lot of it is things that we're trying to just get into balance as we go forward. But really, I think what you'll expect to see is sort of a little bit more normalized volume-to-value relationship as we go forward as bonus tax wind down.
Speaker Change: Seeing incremental distribution in Boulder Canyon and.
Speaker Change:
Speaker Change: And on the border, which is also helping.
Speaker Change: So I think a lot of it is things that we're trying to just get into balance as we go forward.
Speaker Change: But really I think what youll expect to see a sort of a little bit more normalized volume to value relationship as we go forward as bonus tax wind down.
Speaker Change: That's helpful. Thanks for that and I. Appreciate you putting the case study that you did a slide deck that was actually really helpful around what youre seeing in expansion markets.
Andrew Lazar: Thanks for that, and I appreciate you putting the case study that you did in the slide deck. That was actually real helpful.
Ajay Kataria: Ajay, thanks so much for all of your help. Thank you, Andrew. Thanks, Andrew.
Speaker Change: Hey, Thanks, so much for all of your help and wish you all the best going forward. Thank you Andrew Thanks, Andrew.
Peter Galbo: Our next question comes from the line of Peter Galbo with Bank of America. Your line is open.
Peter Galbo: Our next question comes from the line of Peter Galbo with Bank of America. Hey, guys. Good morning. Thanks. Thanks for taking the questions.
Peter Galbo: Hey, guys. Good morning. Thanks, Thanks for taking the questions and Howard I have to do a double take on on slide four I thought you had snuck in a photo of curve as the final send off.
Peter Galbo: And Howard, I had to do a double take on slide four. I thought you would snuck in a photo of Kev as a final send off to the slide deck there. But unfortunately, it was not him. We'll have to get that in the future.
Peter Galbo: To the slide deck, there, but unfortunately, it was not and we'll have to get that in the future.
Speaker Change: I just wanted to follow up maybe on Andrew's question on the bonus pack impact I think on slide 23 of the deck you guys lay out the impact to price was about.
Peter Galbo: I just wanted to follow up maybe on Andrew's question on the bonus pack impact. I think on slide 23 of the deck, you guys lay out that the impact to price was about 300 basis points. Is that kind of the similar offset in terms of all-mix?
Speaker Change: 300 basis points, just is that kind of this similar offset in terms of all mixed I I didn't see if there was a contribution number for what bonus packs actually contributed the ball mix in the quarter. So just any any additional help there would be would be I appreciate it.
Ajay Kataria: I didn't see if there was a contribution number for what bonus packs actually contributed to all-mix in the quarter. So just any additional help? Yeah, so the short answer is, is yes. You know, I'll leave it at that. And, you know, as you saw, most of our price was related to bonus pack, you know, there was about 60 bips, that was not bonus pack related. And that's the true, you know, price gap investment that we are, we made in the quarter. And that flowed through down to down through the P&L Okay. All right. Got it.
Speaker Change: Yes so.
Speaker Change: The short answer is yes.
Speaker Change: I'll leave it at that.
As you saw most of our price was related to bonus pack. There was about 60 bps back was not bonus pack related and Thats the true price cap investment that we.
Speaker Change: We made in the quarter.
Speaker Change: And that flow through down to down through the P&L.
Speaker Change:
Speaker Change: Okay, Alright got it helpful.
Peter Galbo: And then, Howard, just on Boulder Canyon, look, like it's obviously been a tremendous growth driver. I'm not even sure if some of the tract channel data is picking up some of the new product yet. But just, you know, what's kind of been the early reception to some of the new, you know, category expansions with Boulder Canyon? How much of what we're seeing in the, you know, in the Nielsen or Cercana data is just existing distribution being pushed out more? And should we kind of start to see that accelerate, you know, as as the new products start to hit shelves as well?
Speaker Change: And then Howard just on Boulder Canyon look like it's it's obviously been a tremendous growth driver I'm not even sure. If some of the tracked channel data is tracked channel data is picking up some of the new the new product yet, but just.
Speaker Change: What's kind of been the early reception to some of the new category expansions with Boulder Canyon how.
Speaker Change: How much of what we're seeing in the in the Nielsen or Circon of data is just existing distribution being pushed out more and should we kind of start to see that accelerate.
Speaker Change: As the new products start to hit shelves as well thanks very much.
Howard Friedman: Thanks very much. Yeah, so what we're very pleased with, with the performance of Boulder Canyon, it's a it's a great product. And for consumers who are looking for non seed oil offerings, it's a product that delivers great taste, non seed oil, in a lot of cases, non GMO. And we're very pleased with obviously the consumer and the customer reception to it. Obviously, it's a huge driver, as you saw in our untracked channels in a natural channel, as well as we're now gaining retail distribution in traditional channels. And as we move into food, but a lot of that, a lot of that gain is still in front of us.
Speaker Change: Yeah. So we're very pleased with the performance of Boulder Canyon.
Speaker Change: It's a great product and for consumers, who are looking for non seed oil.
Speaker Change: Im offerings, it's a product that delivers great taste non seed oil in a lot of cases non GMO.
Speaker Change: And we're very pleased with obviously, the consumer and the customer reception to it obviously, it's a huge driver as you saw in our untracked channels in the natural channel as well as we are now gaining retail distribution in traditional channels and as we move into food.
Speaker Change: But a lot of that a lot of that gain is still in front of us we've gotten the distribution and so you'll continue to see.
Howard Friedman: We've gotten the distribution and so you'll continue to see that business continue to grow in more measured channels, specifically to reception. You know, we've launched Canyon Poppers last year, which is which is performing quite well in the cheese ball. competitive set and we also launched incremental flavors. We have a wavy product that's out and then obviously most recently in March we launched our tortilla chip. Tortilla chips are still a little bit early to see in the read but the rest of it but the rest of the business and the innovation is readable.
Speaker Change: That business.
Speaker Change: Continue to grow and more measured channels, specifically to reception, we've launched Canyon <unk> last year, which is which is performing quite well in the cheese ball.
Speaker Change: <unk>.
Speaker Change: Competitive set and we also launched incremental flavors, we have a wavy product that's out and then obviously most recently in March we deliberately launched our tortilla chip.
Speaker Change: Strategics is still a little bit early to see in the read but the rest of it but the rest of the business and the innovation is.
Speaker Change: <unk> is reasonable and the last thing I'll say is while distribution is growing and we're and we're quite pleased with what's what is giving us a lot of optimism on this brand is that velocity is also growing quickly. So it's a.
Howard Friedman: And the last thing I'll say is while distribution is growing and we're and we're quite pleased with it what's what is giving us a lot of optimism on this brand is that velocity is also growing quickly so it's a it's sort of the best combination that you could you could hope for gaining distribution growing velocity in an on-trend segment where where consumers are headed so we're quite pleased with it and we look forward to continuing to drive that business longer term. Great.
Speaker Change: It's sort of the best combination that you could you could hope for gaining distribution growing velocity in an on trend segment, whereas where consumers are headed so we're quite pleased with it and we look forward to continuing to drive that business longer term.
Great. Thanks, very much and thanks to a J as well for the partnership over the years I appreciate it guys. Thank.
Peter Galbo: Thanks very much.
Ajay Kataria: And thanks to Ajay as well for the partnership over the years. Appreciate it, guys. Thank you.
Speaker Change: Thank you.
Yeah.
Speaker Change: Our next question comes from the line of Mike <unk> with Piper Sandler Your line is open.
Michael Lavery: Our next question comes from the line of Michael Lavery with Piper Sandler. Your line is open. Thank you. Good morning. Hey Mike. Morning.
Speaker Change: Okay.
Speaker Change: Thank you and good morning.
Speaker Change: Hey, good morning.
Michael Lavery: Um, Gabe, when you pre-announced the nice sales dissection and just some of the non-branded or partner brands versus the rest and how they've been growing, can you just give us a sense of what you expect going forward and for partner brands, maybe how you can manage those or if and how much you control, you know, kind of how they flow through and what the growth outlook or declines might look like going forward?
Speaker Change: Okay.
Dave when you pre announced a nice sales by section and just some of the.
Speaker Change: <unk>.
Speaker Change: Non branded or partner brands versus the rest and how they've been growing.
Speaker Change: Can you just give us a sense of what you expect going forward.
For partner brands maybe.
Speaker Change: How you can manage those or if if and how much you control kind of how they flow through and what the.
Speaker Change: Growth outlook or too quickly.
Speaker Change: Lines might look like going forward.
Michael Lavery: So, a couple of things.
Speaker Change: So a couple of things obviously on our non branded non salt each piece of the business chips and salsa continues to be a business that we would expect.
Ajay Kataria: Obviously, on our non-branded, non-salty piece of business, you know, Zips and Salsa continues to be a business that we would expect will have some near-term pressure on it as we continue to lap prior year, and then we expect it to start to inflect and become more stable as we get into the end of Q2. With respect to partner brands, what partner brands are by their nature, brands that we carry on our – our IOs carry and deliver for route averages and to make sure that they're delivering what the retailer and what our customers ultimately want.
Speaker Change: We will have some near term pressure on it as we continue to lap prior year and then we expect it to start to inflect and B and become.
Speaker Change: More stable as we get into the end of Q2 with respect to partner brands. What partner brands are by their nature are brands that we that we carry on our with our iOS carry and deliver for round averages and to make sure that they are delivering.
Speaker Change: What the retailer and what they are what our customers ultimately want we don't really control them.
Ajay Kataria: We don't really control them. What we do try to do is make sure that over time, that as our brand grows, that we actually get more of our products on every truck, and that those businesses will naturally get a little bit smaller. But, you know, we would expect them to continue to decline, although we don't expect them to be as negative as we go forward.
Speaker Change: What we do try to do is make sure that over time that as our brand grows that we actually get more of our products on every truck and that those businesses will naturally.
Speaker Change: Get a little bit smaller, but we would expect them to continue to decline, although we don't expect them to be as negative as we go forward.
Speaker Change: Okay. That's helpful.
Michael Lavery: Okay, that's helpful.
Michael Lavery: And you called out the new flavored on-the-border tortilla chips.
Speaker Change: You called out the.
Speaker Change: The new flavored on the border tortilla chips.
Speaker Change: Maybe can you just give a sense of how far that brand could go or.
Michael Lavery: Maybe, can you just give a sense of how far that brand could go or how big a flavored opportunity might be? And what, if any, other white spaces you see as an opportunity? Yeah, so obviously, we're quite pleased with On the Border. It was an acquisition that we made a couple of years, a couple of years back, and it has continued to grow nicely. As the, as we continue to expand distribution, I still think that there's a distribution gain opportunity in our expansion markets, much like there is for the rest of our portfolio. And then with respect to innovation, we know that unflavored tortilla chips is a great place for On the Border, we would expect that we can also bring flavors in.
Speaker Change: How big a flavored opportunity might be.
Speaker Change: What if any other white spaces.
Speaker Change: You can see.
Speaker Change: Opportunity.
Speaker Change: Yeah. So obviously, we're quite pleased with on the border. It was an acquisition that we made a couple of years a couple of years back and it has continued to grow nicely.
Speaker Change: As the as we continue to expand distribution I still think that there is a distribution gain opportunity in our expansion markets much like there is for the rest of our portfolio.
Speaker Change: And then with respect to innovation.
Speaker Change: We know that Unlevered tortilla chips as a great place for on the border. We would expect that we can also bring flavors and it's a piece of the category that is growing that continues to grow and it's a place where we think that there is a fair bit of white space I think longer term just like any just like any other business both on the border rather.
Ajay Kataria: It's a piece of the category that is growing, that continues to grow, and it's a place where we think that there's a fair bit of white space. I think longer term, you know, just like any, just like any other business, On the Border, rather, has got opportunities in additional flavors, you know, potentially there are other formats that we can, we can introduce. And as, you know, consumers indicate their interests in different product experiences, we think that brand has got a lot of legs to stretch.
Speaker Change: <unk> got opportunities in.
Speaker Change: Additional flavors potentially there are other formats that we can we can introduce and as consumers indicate their interest in different product experiences. We think that brand has got a lot of legs to stretch.
Speaker Change: Sure.
Michael Lavery: Okay, great, thanks.
Speaker Change: Okay, great. Thanks.
Speaker Change: Next question comes from the line of Probert Moscow with TD Cowen Your line is open.
Robert Moskow: Next question comes from the line of Robert Moskow with T.D. Cowan. Your line is open. Hi, thanks. The bonus pack program, I think you're talking about it in terms of a limited time offer. Is that right? And how will you evaluate how long to keep it in the market? Does it depend on competitive dynamics or just the category kind of response to it? Thanks. Yeah.
Speaker Change: Hi, Thanks.
Speaker Change: Yeah.
Speaker Change: The bonus program I think you are talking about it in terms of a limited time offer.
Speaker Change: Is that right and and how will you evaluate how long too to keep it in the market because it depend on competitive dynamics or just the category kind of.
Speaker Change: Our response to it.
Speaker Change: Yes.
Howard Friedman: Well, a couple of things. You're correct. The intention was for this to be an opportunity for us to try and test different ways to deliver value to consumers, right? And so one thing that we have certainly seen on bonus packs, obviously, the consumer response was very positive, and we feel really good about how it kind of played different roles in different places, to be perfectly honest. In expansion geographies, it was also a great trial vehicle, so we were able to, as we are getting product into new markets, it's giving consumers an opportunity to opt in and try it.
Speaker Change: A couple of things you are correct. The intention was for this to be a.
Speaker Change: An opportunity for us to try and test different ways to deliver value to consumers.
Speaker Change: And so one thing that we have certainly seen on bonus tax obviously, the consumer response was.
Speaker Change: <unk> was very positive and we feel really good about how we can kind of play different roles in different places to be perfectly honest in an expansion geographies. It was also a great trial vehicles. So we were able to as we are getting product into new markets is giving consumers an opportunity to opt in and try it and then in our core it was obviously a way to.
Howard Friedman: And then at our core, it was obviously a way to deliver – a different way to deliver value. The one thing I would say, though, is we're doing that across the entire portfolio. Obviously, you can see Boulder Canyon in the natural channel, as well as in Club, and then also, obviously, with the rest of our portfolio in the discount channels. So I think our expectation was that if we would do it for a brief period of time, it would flow in and flow out, and we continue to expect that to be true as we transition into the merchandising plans that we have for the summertime.
Speaker Change: To deliver.
Speaker Change: A different way to deliver value.
Speaker Change: The one thing I would say, though is we're doing that across the entire portfolio. Obviously, you can see Boulder Canyon.
Speaker Change: The natural channel as well as in club and then also obviously with the rest of our portfolio and the discount channels. So I think our expectation was that we would do it for a brief period of time it would flow in and flow out and we continue to expect that to be true as we transition into the merchandising plans that we have for the summer.
Speaker Change: Time.
Speaker Change: Okay.
Robert Moskow: Okay.
Speaker Change: Okay.
Ajay Kataria: Does that mean as you transition, it might be pulled out in the summer? and then a quick follow-up. Yeah, so yes, our expectation is that that that program is winding down now. And, and as we transition into the summertime, you know, we have we have we have pretty normal commercial plans to go to supporter innovation, increased marketing, and making sure that our pricing is is correct in the market as we go through any through the peak selling seasons for us.
Speaker Change: Does that mean as you transition.
Speaker Change: It might be.
Speaker Change: Pulled back pulled out in the summer.
Speaker Change: And then a quick follow up.
Speaker Change: So yes, our expectation is that that program is winding down now and and as we transition into the summer time.
Speaker Change: We have we have.
Speaker Change: Pretty normal stock commercial plans to go to support our innovation increased marketing and making sure that our pricing is correct in the market as we go through the peak selling seasons for us.
Speaker Change: Okay, and then maybe.
Ajay Kataria: Okay, and then maybe, broadly speaking, how should we think about price mix compared to volume? for the rest of the year. Should we expect price mix to continue to be negative? Can you balance out those two when you're in your. Yeah, so we should we should be normal course from here on out. So you should expect, you know, about a point of price investment going forward. Okay, great. All right.
Speaker Change: <unk> speaking how should we think about.
Speaker Change: Price mix compared to volume.
Speaker Change: For the rest of the year.
Speaker Change: Two weeks, we expect price mix to continue to be negative.
Speaker Change: Can you balance out those two when you're in your sales forecast.
Speaker Change: Yes, so we should we should be normal course from here on out so you should expect about.
Speaker Change: Point of price investment going forward.
Speaker Change: Yeah.
Speaker Change: Okay, Great Alright, Thanks, guys, Hey, Jay and best wishes.
Ajay Kataria: Thanks, Ajay, and best wishes. Thank you.
Speaker Change: You.
Erika Eiler: Our next question comes from the line of Rupesh Parikh with Oppenheimer. Your line is open. Good morning.
Speaker Change: Our next question comes from the line of <unk> <unk> with Oppenheimer. Your line is open.
Erica Eiler: Good morning, this is actually Erica eiler on for Pam Thanks for taking our questions.
Erika Eiler: This is actually Erika Eiler on for Rupesh. Thanks for taking our questions. So I guess first, I wanted to touch on natural organic. So we've obviously seen tremendous momentum across the natural and organic space. You've seen great results in Boulder Canyon.
Speaker Change: So I guess first I wanted to touch on natural organic so we've obviously seen tremendous momentum across the natural and organic space.
Speaker Change: <unk> seen great results in Florida Canyon, So maybe you could just talk about.
Howard Friedman: So maybe you could just talk about the further opportunities that you see to capitalize on this trend, whether it's accelerating initiatives in Boulder Canyon or through M&A. We'd just love to get your thoughts there. Yeah, so, agreed. We're quite happy with how Boulder Canyon has been doing in, you know, in the natural and organic pots of trade. And, you know, what you're seeing right now is we are extending innovation. So we're entering into new segments of the category, talk a little bit about Canyon Poppers and some of our flavors, Tortilla Chips launching right now.
Speaker Change: Further opportunities that you see to capitalize on this trend.
Speaker Change: Whether it's accelerating initiatives in Florida Canyon or through M&A, we'd just love to get your thoughts there.
Speaker Change: Yes, So agreed and we are quite happy with how Boulder Canyon has been doing.
Speaker Change: In the natural and organic.
Speaker Change: Class of trade and what Youre seeing right. Now is we are extending innovation. So we're entering into new segments of the category talk a little bit about canyon poppers and some of our some of our flavors tortilla chips launching right now.
Howard Friedman: I think the opportunity also, more broadly for us specifically to Boulder is to actually start telling its story. So, you know, we're working on ways to make investments in the brand equity and drive its overall awareness. But I think in the near term, what you're going to continue to see is distribution gains supported by shopper and consumer support and innovation as we go forward. So, you know, I think we got a lot of runway left. It's growing quite nicely right now. Consumer response has been excellent. And we would continue to see opportunities to drive that momentum further.
Speaker Change: I think the the opportunity also more broadly for us specifically to Boulder is to actually start telling our story. So we're working on.
Speaker Change: Ways to make investments in the brand equity and drive its overall awareness.
Speaker Change: But I think in the near term, which youre going to continue to see distribution gains supported by.
Speaker Change: <unk> and consumer support.
Speaker Change: And innovation as we go forward. So I think we got a lot of a lot of runway left it's growing quite nicely right now consumer response has been excellent.
Speaker Change: We would continue to see opportunities to drive that momentum further.
Speaker Change: Okay. That's super helpful. And then just just on.
Howard Friedman: Okay, that's super helpful. And then just on the channels, I mean, you called out, I think, natural hard discount and dollar again in your scripted remarks. As we think about channels, I mean, particularly in light of the current backdrop, you know, that we're seeing and those, obviously, you know, a couple of those channels, hard discount dollars, you know, cater to that value seeking behavior.
Speaker Change: The channels you called out I think natural hard discount in dollar again in your scripted remarks.
Speaker Change: As we think about channels I mean, particularly in light of the.
Speaker Change: Current backdrop that we're seeing in and those obviously you know a couple of those channels hard discount dollars cater that value seeking behavior are there any other new sets of note.
Howard Friedman: Are there any other, you know, new shifts of note from a channel perspective lately? Look, I think so a couple things. One, you know, we obviously, we use Cercana Mulo C plus with convenience as as the read, which actually helps, we think, understand our business. And so some of what you see in the bridge is really just a question of like, what's tracked versus what's not. So obviously, we continue to see good support and strong momentum in food. You know, our mass channel is doing is also performing. But really, what we see right now is as consumers seek value, they're seeking value across the spectrum from premium to, to merchandising support, promotional, promotional support and different classes of trade.
Speaker Change: From Macau channel perspective lately.
Speaker Change: Look I think so a couple of things one we obviously, we use <unk> C plus with convenience as the read which actually helps we think understand our business.
Speaker Change: So some of what you see in the bridge is really just a question of like what's tracked versus what's not so obviously, we continue to see good supportive and strong momentum in food.
Speaker Change: Our mass channel is doing.
Speaker Change: Also performing but really what we see right now is as consumers seek value, they're seeking value across the spectrum from premium to two merchandising support promotional promotional support and different classes of trade.
Erika Eiler: So I think that's, I think really the kind of the story of our print, you continue to see that value seeking reaction, and consumers responding well to what we're doing and where what we're offering across the across the spectrum. Okay, great.
Speaker Change: I think that's I think really that's kind of the story of our print you continue to see that value seeking reaction.
Speaker Change: <unk> is responding well to what we're doing and we're what we're offering across the across the spectrum.
Speaker Change: Okay, great. Thanks, I'll pass it along.
Erika Eiler: Thanks. I'll pass it along.
Speaker Change: Okay.
James Salera: Our next question comes from the line of James Salera with Stephens Inc. Your line is open. Hey Howard and Ajay, nice checking in.
Speaker Change: Our next question comes from the line of Gene <unk> with Stephens, Inc. Your line is open.
Speaker Change: Thanks for taking my question.
James Salera: Howard, I wanted to maybe drill down a little bit on, you know, potato chip subcategory. Obviously, that's where your growth saw kind of the most stark outperformance driven by both Boulder and UTZ, which is interesting because, you know, Boulder is kind of a premium offering where UTZ, particularly with the bonus bag, is I would use more of a value offering. Just kind of walk us through the dynamic at play there and how, you know, we're seeing household both at the, you know, kind of premium and at the value side. Yeah, so I think there's a couple things.
Speaker Change: However, I wanted to.
Speaker Change: Maybe drill down a little bit on potato chips subcategory, obviously, that's where your growth so kind of the most stark outperformance driven by older and us which is interesting because boulder is kind of a premium offering where us particularly with.
Speaker Change: The bonus bag as I would be more of a value offering just kind of walk us through the dynamic at play there and how we're seeing household growth both that.
Speaker Change: Kind of premium added the value side.
Speaker Change: Yes, so I think theres a couple of things one.
Howard Friedman: One, you know, I think we believe that consumers are seeking value broadly, right? And as you look at Boulder Canyon, Boulder Canyon, obviously, is the most is a premium priced chip, and is delivered into different classes of trade. And I think to your point on UTZ, UTZ is really, you know, we're quite proud of the brand, and we're quite proud of the consumer response to it. But the opportunity for us was really in that expansion market. Distribution gains and the perimeter display activity that we were able to get, that our IOs were able to deliver behind the bonus pack.
Speaker Change: We believe that consumers are seeking value broadly right.
Speaker Change: As you look at Boulder Canyon Boulder Canyon, obviously is the most is a premium priced chip.
Speaker Change: And.
Speaker Change: Is delivered into into different classes of trade and I think to your point on us really.
Speaker Change: We're quite proud of the brand and we're quite proud of how the consumer responds to it but the opportunity for US was really in the X that expansion market distribution gains and the perimeter display activity that we were able to get that right.
Speaker Change: We're able to deliver.
Speaker Change: The bonus back so kind of different reasons for their outperformance right Boulder.
Howard Friedman: So kind of different reasons for their outperformance, right? Boulder distribution gains, a little bit more merchandising support are really what's driving that difference.
Speaker Change: On distribution gains us a little more merchandising support are really what's driving that difference.
Speaker Change: Okay, and then are there any significant distinctions between.
Howard Friedman: Okay, and then, are there any, you know, significant distinctions between, like, when we think about an UTZ household versus the Boulder household? I mean, is there a lot of overlap there? Or is there kind of unique characteristics that you can assign? find that there isn't a ton of cross-polling. I'm not sure we've ever actually shared sort of the overlaps. I would be a little cautious on thinking that they would be exclusive households.
Speaker Change: When you think about household versus the Boulder household I mean is there a lot of overlap there or is there kind of unique characteristics that you can assign to each of you find that there isn't a ton of cross pollination.
Speaker Change: I'm not sure we've ever actually.
Speaker Change: Sure, it's sort of the over the overlaps I would I would be a little.
Speaker Change: Im cautious on thinking that they would be exclusive households, just isn't it wouldn't necessarily.
Howard Friedman: It wouldn't necessarily be what I would expect to happen, but what I would tell you is the Boulder household specifically tends to be a household that is a little bit more affluent and is actually looking for better-for-you credentials than non-seed oil, where I think you see in us is a more mainstream household, broadly speaking. But I don't know that we've ever really looked to see if there's an overlap or an exclusivity to them. Generally speaking, I think we would expect to see a more affluent household. overlap across the portfolio.
Speaker Change: Barely be what I would expect to happen, but what I would tell you is both the Boulder household specifically.
Speaker Change: Tends to be a household that is a little bit more affluent and is actually looking for better for you credentials. The non seed oil where I think what you see in us as a more mainstream households.
Ravi: Ravi speaking, but I don't know that we've ever really look to say is there an overlap.
Speaker Change: Or a exclusivity to them generally speaking I think we would expect to see.
Ravi: Overlap across the portfolio.
Speaker Change: Okay, and if I could just sneak in one other quick one.
James Salera: And if I could just sneak in one other quick one, just thinking about the distribution gain opportunity at Boulder, you know, you talked about still a lot of runway ahead of you, I've seen the product in some new places and retailers in my area. Can you just give us a sense for, you know, kind of maybe what we should expect from a sequencing perspective this year? I mean, is it in, you know, all the major club regions? I mean, is there anything kind of that we should be thinking about as we're, you know, building out the demand drivers for the back half of the year?
Just thinking about the distribution gain opportunity at Boulder.
Speaker Change: You talked about still a lot of runway ahead of you had seen the product in some new places and retailers in my area can you just give us a sense for.
Speaker Change: Maybe we should expect from a sequencing perspective. This year I mean is it in all the major club regions is there anything kind of imminent that we should be thinking about as we're building out.
Speaker Change: Demand drivers for the back half of the year.
Howard Friedman: Look, I think we've seen a significant amount of distribution gains. We have gotten some support in, and some rotational support, and some retailers as well. I think what you'll see is continued distribution gains in the business. Obviously in the natural channel it's a little harder to see, but we continue to get incremental space there, and you're seeing it now in the more conventional grocer, in conventional grocers as well. So you should see continued distribution gains.
Speaker Change: Look I think we've seen a significant amount of distribution gains we have gotten some support in and some rotational support in some some retailers as well I think what Youll see is continued distribution gains.
Speaker Change: The business, obviously in the natural channel, it's a little harder to see but we continue to get incremental.
Speaker Change: Incremental space, there and Youre seeing it now in the more conventional grocer.
Speaker Change: In conventional grocers as well so you should see continued distribution gains we've got a lot of white space left across the portfolio as you know.
Howard Friedman: We've got a lot of white space left across this portfolio, as you know, and we would expect to continue to demonstrate our benefits to the category and to consumers with retailers across our portfolio, and with Boulder being, I think, a near-term beneficiary, and I'm not surprised you're seeing it, and I expect you'll see more of it as we go forward. Okay.
Speaker Change: And we would expect to continue to demonstrate our benefits of the category and to consumers with retailers across our portfolio.
Speaker Change: With Boulder being I think the near term.
Speaker Change: Beneficiary and I'm not surprised youre seeing it and I expect you'll see more of it as we go forward.
Speaker Change: Okay great.
James Salera: Great.
Ajay Kataria: And Ajay, I just wanted to say, you know, it's been a pleasure working with you. Best of luck in, you know, whatever the next endeavor is. Thank you, Jim.
Speaker Change: Jay just wanted to say, it's been a pleasure working with you best of luck in whatever the next endeavors for Ya.
Speaker Change: Thank you Tim.
Speaker Change: Next question comes from the line of Scott <unk> with Jefferies. Your line is open.
Kockmarts: Next question comes from the line of Kockmarts with Jeffreys. Your line is open. Hey, good morning, guys. Thanks so much for taking our questions. First question from my from my side is, you know, you spoke to kind of volume share gains in core geographies. It seems like maybe some of that could be attributed to those bonus packs.
Scott: Hey, good morning, guys. Thanks, so much for taking my questions.
Speaker Change: Hey, Scott first question from my side is.
Scott: You spoke to kind of.
Volume share gains in core geographies. It seems like maybe some of that could be attributed to those bonus packs.
Howard Friedman: So just wondering, one, if that's the case, and then two, how do you think about incremental distribution opportunities within those core geographies as maybe larger peers continue to see a bit more pressure? Yeah, so the first answer to your question is, of course, some of the volume shared gain that we had is being driven by bonus facts. You'll recall at our investor day, what we basically have said is we believe that we can continue to grow by holding our volume share in the core, and then driving outsized distribution gains in our expansion markets, and to be able to deliver on our top line expectations.
Scott: Just wondering one if that's the case and then two how do you think about incremental distribution opportunities within those core geographies as maybe larger peers continue to see a bit more pressure.
Scott: Yeah. So.
Scott: The first answer to your question is of course, some of the volume <unk> volume share gain that we had is being driven by bonus box.
Scott: Youll recall that at our Investor day.
Scott: We have said is we believe that we can continue to grow by holding our volume share in the core and then driving outsized distribution gains in our expansion markets.
Scott: And to be able to deliver on our topline expectations.
Howard Friedman: Part of what was happening in the core was also our core geography, UTZ's core has significant opportunity on three of our remaining Power4 brands. So on the border, Zaps and Boulder Canyon all have average item carry opportunities and distribution opportunities within the core geography to be able to drive gains, which is part and parcel to how we expect to hold our volume share. What you certainly see in the current quarter is you do see gains on the border and Boulder Canyon in our core geography. Distribution gains are up, which is also helping support the volume share.
Scott: Part of what was happening in the core was also our core Geos us as core has significant opportunity on our.
Scott: Three of our remaining power for brands so on the border SaaS in Boulder Canyon.
Scott: All have average item carry opportunities in distribution opportunities within the core geography.
Scott: To be able to to drive gains, which is part and parcel of how we expect to hold our shareholder volume share. What you certainly see in the current quarter is you do see gains in on the border and Boulder Canyon in our core geography distribution gains are up which is also helping support volume share.
Kockmarts: And then obviously, again, to your point, the bonus tax was a contributor as well. I think as you go forward, you should expect us to continue to drive our white space opportunities in our core with those items, and then our expansion geographies and incrementally additional classes of trade with the rest of our portfolio, because the one thing that we continue to see is that as we gain distribution, we stay and we're helpful to the consumer, the customer, and obviously the category. Understood. Thanks for that.
Scott: And then obviously again to the to your point the bonus packs was a.
Scott: It was a contributor as well I think as you go forward you should expect us to continue to drive.
Scott: Our white space opportunities across in our core with those items and then our expansion geographies and incrementally additional classes of trade with our with the rest of our portfolio because the one thing that we continue to see is that as we gain distribution. We stay and we are we are helpful to the consumer or the customer and obviously the.
Scott: Laurie.
Speaker Change: Understood. Thanks for that and then the second question for me understand you've been speaking about this bonus bag program being more limited winding down right now.
Howard Friedman: And then the second question for me, you know, understand you've been speaking about this bonus bag program being more limited and winding down right now. But I guess, you know, based on what we've heard, maybe from some some peers around the industry is that, you know, the US consumer seems to be, you know, maybe a little bit more pressure, maybe there's some weakening sentiment out there. So maybe what might change your mind about maybe bringing back this bonus bag program? Is there certain, you know, metrics you might have to see that would that would that would make you want to bring that back and test it again?
Speaker Change: But I guess based on what we've heard maybe from some some peers around the industry is that the U S consumer seems to be maybe a little bit more pressure, maybe there's some weakening sentiment out there.
Speaker Change: So maybe what might change your mind about maybe bringing back. This bonus bag program is there a certain metrics you might have to see that would that would that would make you want to bring that back in and tested again. Thanks.
Howard Friedman: Thanks. Yeah, so, look, I think, and I'm not going to break any new ground here by saying that I think we were watching what the consumer, how the market is responding and what consumer behavior looks like as a branded company, that's obviously job one for us. And value seeking across all across the consumer base continues to be an area that, that we're all watching, you know, our theory of our theory has been that we can add value in a variety of different ways, whether it's in premium products and value offerings or in innovation and marketing, which have always been the thing that have sustained this category.
Speaker Change: Yes, so look I think.
Speaker Change: I'm not going to break any new ground here by saying that I think we were watching what the how the market is responding and what consumer behavior. It looks like as a branded company. That's obviously job one for us and value seeking across all across the consumer base continues to be an area that.
Speaker Change: That we're all watching our theory of our theory has been that we can add value in a variety of different ways, whether it's in premium products and value offerings are in innovation and marketing, which have always been the thing that can sustain this category, we've never been a <unk>.
Howard Friedman: We've never been a price driven business, you know, consumers come down the aisle because they like the brands, they like the innovation, and they like the marketing and then price and then fair price. So we'll continue to look at look at ways to address value as we go forward, you know, bonus, the bonus pack program, obviously was one way that we went after it, we maintained our price gaps, we've also gained distribution and in our items. So we're going to play the full marketing mix. And, you know, if the opportunity came came back, again, we have a lot of learnings from from this round of bonus packs.
Speaker Change: Rice, driven business consumers come down the aisle because they like the brands they like the innovation and they like the marketing and then the price and then fair pricing so.
Speaker Change: So we will continue to look at looking at ways to address value as we go forward.
Speaker Change: <unk> Pak program.
Speaker Change: Obviously was one way that we went after it we maintained our price gaps. We've also gained distribution in.
Speaker Change: Our items, so we're going to play the full marketing mix.
Speaker Change: And.
Speaker Change: If the opportunity came back again, we have a lot of learnings from this round of bonus packs and we'll evaluated as conditions change.
Kockmarts: And, you know, we'll evaluate it as conditions Understood. Thanks so much. We'll pass it on.
Speaker Change: Understood. Thanks, so much I'll pass it on.
Speaker Change: And our last question comes from the line of John Baumgartner with Mizuho. Your line is open.
John Baumgartner: And our last question comes from the line of John Baumgartner with Mizuho. Your line is open. Good morning, thanks for the question. Hey, John.
John Baumgartner: Good morning, Thanks for the question.
Hey, John.
John Baumgartner: Maybe maybe first off, just sticking with the bonus packs and the volume response there. I'm curious, Howard, if you can see through to any impact on consumption from new trial and new consumers relative to, you know, benefits from frequency, how much has been subsidized relative to maybe accelerating new buyer growth, that has a longer tail benefit for you from here. I know it's not a long duration program, but just do any gleanings you have thus far. Yeah, so look, I think I would say, it's a little hard for us to tease it out exclusively for bonus facts, because it was a flow through item.
Speaker Change: Maybe first off just sticking with the bonus packs and the volume response, there I'm curious how you can see through to any impact on consumption from new trial of new consumers relative to benefits from frequency. How much has been subsidized relative to maybe accelerating new buyer growth that has a longer tail benefit.
Speaker Change: Are you from here.
Speaker Change: Not a loan duration program, but just any gleanings you have thus far.
Speaker Change: Yes, So look I think I would say, it's a little hard for us to tease that out exclusively for bonus tax because it was a flow through item. So they were not what we did was we deliver the product. We wanted to we wanted to have it sell through through through this window of time and then.
Howard Friedman: So they were not, what we did was we delivered the product, we wanted to, we wanted to have it sell through, through, through this window of time, and then move forward. So it's a little harder for us to tease that out. What I would point to, however, John, is if you look at the household penetration results that we continue to see on this, on our business, you know, we've gotten now to 49%, if you look at the, at the rolling 12 months, which is, you know, an all time high for us. And we are, broadly speaking, holding our, our buy rate, which as you know, is hard to do when you bring in a lot of new users, and then they try you and then they move on.
Speaker Change: So it's a little harder for us to tease that out what I would point to however, Jon is if you look at the household penetration results that we continue to see on this on our business.
Jon: We've got now 249% if you look at the at the Rolling 12 months, which is an all time high for US and we are broadly speaking holding our our buy rate, which as you know it is hard to do when you're bringing a lot of new users and then they try you and then they move on so we're obviously quite proud of the panel metrics.
Howard Friedman: So, you know, we're obviously quite proud of the panel metrics, and continue to be pretty optimistic about, you know, the resonance of our overall portfolio and its quality. But I do believe that there is some trial that is happening with respect to expansion markets with the bonus pack, because it was a, you know, it was broadly consumed, it was broadly delivered to the classes of trade. And, you know, we'll obviously continue to watch it as we go forward. But trial and repeat rates on our, on our business are pretty, are pretty strong.
Jon: And continue to be pretty optimistic about the resonance of our overall portfolio and its quality.
Jon: But I do believe that there is some trial that is happening with respect to expansion markets with the bonus back because it was a.
Jon: It was broadly.
Jon: It was probably.
Jon: <unk> delivered to the classes of trade and.
Jon: We'll obviously continue to watch it as we go forward, but trial and repeat rates on our on our business are pretty are pretty strong and household penetration continues to grow which at least from my seat is I think the one thing that we want to make sure that we continue to deliver against.
Howard Friedman: And household penetration continues to grow, which at least for my seat is the thing, the one thing that we want to make sure that we continue to deliver again.
Jon: Okay, and then at the <unk>.
John Baumgartner: Okay, and then as a follow up on on C-Store specifically, I think the comment there was that performance is improving, but it's not yet back to growth. Is there anything at this point that you can do as a company to accelerate that turn? Or is it just largely dependent on overall traffic trends and sort of the macro backdrop?
Speaker Change: Follow up on C stores, specifically I think the comment there was that performance is improving but it's not yet back to growth is there anything at this point that you can do as a company.
Speaker Change: Celebrate that turn or is it just largely dependent on overall traffic trends and sort of the macro backdrop.
Speaker Change: Yeah, So I think.
Howard Friedman: Yeah, so I think I think there's a two part answer to that. Obviously, the channel needs to continue to improve. And as the channel improves, I think you'll that I think what you're seeing now is that that is starting to happen. I wouldn't broadly say that it's improved, period. But I think it's I think it's getting better.
Speaker Change: I think there is a two part answer to that obviously the channel needs to continue to improve.
Speaker Change: As the channel improves I think you'll see that I think what youre seeing now is that that is starting to happen I would broadly say that it's.
Speaker Change: Improved period, but I think it's I think it's getting better I think for US specifically there are three things that we are continuing to work on and that they are kind of the things we've talked about in previous calls first is we need to continue to drive our distribution in those can.
Howard Friedman: I think for us specifically, there's three things that we are continuing to work on. And that they're kind of things we've talked about in previous calls. You know, first is we need to continue to drive our distribution, in those in convenience stores and make sure that we have the price pack architecture correct. Get those sizes right, get the items right, get the planograms correct. And so we're focused on distribution. And then the second is, you know, delivering innovation in that channel, it can at times can be a little different. Because a lot of that a lot of convenience is a me moment, right smaller bags that tend to be consumed right away.
Speaker Change: Convenience stores and make sure that we have the price pack architecture, correct get those sizes right get the items right in the planet grams correct.
Speaker Change: And so we're focused on distributions and then the second is.
Speaker Change: Delivering innovation in that channel it at times can be a little different because a lot of that a lot of convenience as a <unk> moment right smaller bags.
Speaker Change: <unk> tend to be consumed right away and so.
Howard Friedman: And so I think we have opportunities on the flavor profiles of some of our products as well on the innovation that we need to offer to that class of trade. And then the last is just making sure that we continue to work with those retailers and our IOs to make sure that we have the space and service that I think the consumer reasonably should expect when they walk in to be able to get our products wherever it is that they want to shop.
Speaker Change: So I think we have opportunities on the flavor profiles of some of our products as well and the innovation that we need to offer to that class of trade and then the last is just making sure that we continue to work with those retailers at our iOS to make sure that we have the space and service that I think the consumer reasonably should expect when they walk in to be able to get our products wherever it is.
Speaker Change: They want to shop.
Okay, Okay, great, Thanks, Alan and Jay.
John Baumgartner: Okay, okay, great. Thanks, Howard. And Ajay.
Okay.
Howard Friedman: That concludes the question and answer session. I would like to turn the call back over to our CEO, Howard Friedman, for final remarks. Yeah, so thank you, Aubrey. I just want to say thank you to everybody for the call. I think what you see through our first quarter is, you know what, us executing our playbook and continuing to drive the results that that we expect to deliver. There's obviously it's only the first quarter. And so there's quite a bit more to do.
Speaker Change: That concludes the question and answer session I would like to turn the call back over to our CEO Howard Friedman for final remarks.
Speaker Change: Yes, so thank God I just wanted to say thank you to everybody for the call I think what you see through our first quarter is.
Speaker Change: US executing our playbook and continuing to drive the results that.
Speaker Change: That we expect to deliver Theres, obviously, it's only the first quarter and so there is quite a bit more to do.
Speaker Change: But I'd be remiss if I didn't thank you Jay live on the call for all his leadership and support over the last.
Ajay Kataria: But I would be remiss if I didn't thank Ajay live on the call for all his leadership and support over the last several years and say thank you and good luck. And, and we appreciate everything that you've done. Thank you, Howard.
Speaker Change: Several years and say, thank you and good luck and we appreciate everything that you've done thank you Ella.
Ajay Kataria: And then last but not least, I'd like to thank Kevin, who is also moving forward as he winds down his time. Obviously, many of you know we have an extraordinary IR program here at us, and it's been largely driven by his leadership and support over the years. So we also wish Kevin all the best as he moves on to his next great adventure. Thank you, Howard.
Speaker Change: And then last but not least I'd like to thank Kevin who is also moving forward as he winds down his time, obviously many of you know we have a an extraordinary IR program here at us and it's been largely driven by his leadership.
Speaker Change: And support over the years. So we also wish Kevin all the best as he moves on to his next great adventure.
Howard Friedman: Thank you Howard.
Speaker Change: Ladies and gentlemen, this concludes today's conference call. Thank you all for joining and you may now disconnect.
Operator: Ladies and gentlemen, this concludes today's conference call. Thank you all for joining, and you may now disconnect.
Howard Friedman: Okay.
Howard Friedman:
Howard Friedman: Yeah.
Howard Friedman: Yeah.