Q1 2025 Acushnet Holdings Corp Earnings Call
Good morning all and thank you for joining us for today's Acushnet Company first call to our 2025 earnings call. My name is Drew and I'll be the operator today.
During today's call after the prepared remarks, there will be a Q&A session. If you would like to register a question, please press star, followed by one on your telephone keypad. And so, withdraw your question, it's far followed by two.
Speaker Change: It's not my pleasure to hand over to Sondra Lennon, Vice President at PNA and Investor Relations to begin, please go ahead when you're ready.
Speaker Change: Joining me this morning are David Maher, President and Chief Executive Officer and Sean Sullivan and our Chief Financial Officer.
Speaker Change: Before turning the call over to David, I would like to remind everyone that we will make forward-looking statements on the call today.
Speaker Change: These forward-looking statements are based on Acushnet's current expectations and are subject to uncertainty and changes and circumstances Actual results may differ materially from these expectations
Speaker Change: for a list of factors that could cause actual results to differ. Please see today's press release. The slides that accompany our presentation and our filings with the US Securities and Exchange Commission.
Speaker Change: Throughout this discussion, we will make reference to non-GAAP financial measures, including items such as net sales on a constant currency basis and adjusted EBITDA.
Explanations of how and why we use these measures.
and reconciliations of these items.
to the most directly comparable GAAP measures . [inaudible]
Speaker Change: can be found in the schedules and today's press release. The slides that accompany this presentation and in our filings with the U.S. Securities and Exchange Commission.
Speaker Change: Please also note that references throughout this presentation to year-on-year net sales increases and decreases are on a constant currency basis unless otherwise stated as we feel this measurement best provides context as to the performance and trends of our business.
Speaker Change: and when referring to year-to-date results for comparisons, we are referring to the three-month period ended March 31st, 2025 and the comparable three-month period in 2024. With that, I'll turn the call over to David.
David Maher: Thanks, Sondra, and good morning everyone. As always, we appreciate your interest in Acushnet Holdings.
Speaker Change: I am pleased to report on a solid start of the year for Acushnet, led by momentum and our Titleist Golf Equipment and Golf Gear Segments.
Speaker Change: For the quarter, Acushnet delivered worldwide net sales of $703 million, a 1% increase over last year.
Speaker Change: Adjusted EBITDA was $139 million, which reflects a decrease of $15 million related to our decision to step up investment in our equipment segment in 2025.
Speaker Change: Getting to our segment results, you see golf equipment that sales increased almost 4% in the quarter with games in every region.
Speaker Change: This growth was led by the successful launch of new ProV1 and ProV1 X golf ball models and continued momentum across our title as GT Metals franchise which was expanded in Q1 with the launch of new hybrids and GT1 Metals.
Speaker Change: The Titleist golf ball, business crew 4% with gains led by the EMEA region, which was up double digits as favorable weather contributed to an early start to their golf season.
Speaker Change: And for context, golf ball revenues were up 11% on a reported basis, versus two years ago, our most recent ProV1 launch quarter.
Speaker Change: Our Titleist Golf Club business grew 4% versus last year, and 15% on a reported basis when compared to the similar product launch cycle in Q1 2023.
Speaker Change: In most cases, we would expect Q1 club sales to be down in an odd year given the challenging comp against even year Bokey Wedge launches. This was obviously not the case in 2025 as G.T. Meadows and Scottie Cameron Putters contributed to our growth over last year.
Speaker Change: Acushnet gear sales were up almost 4% in the quarter with growth in all major markets led by EMEA and Japan.
Speaker Change: Titleist gear posted steady gains while the combined club glove and links and kings business was up double digits.
Speaker Change: Gear Margin and OI Trends were also favorable as our team is doing good work generating operating leverage across this segment.
Speaker Change: Foot joy sales were down 5% in the quarter, which is attributable to lower close-out footwear sales and some targeted product line rationalization across the brand.
Speaker Change: We are pleased with the initial responses to new hyperflex, premier, and quantum footwear models. And footchoy gloves, the global category leader also had a nice start in the quarter.
Speaker Change: As noted on our last call, we characterized 2025 as a year of stability and improving profitability for foot joy with the higher percentage of premium sales as we exit what has been a two year period of correction in the global footwear space.
Speaker Change: Finally, that sales of products not allocated to a reportable segment were down slightly in the quarter.
Speaker Change: Shoots, again, posted nice gains, which were offset by a decline in titles to peril, as Korea's super premium apparel segment continues to correct after a period of outsized growth.
Speaker Change: Now, looking at the quarter by region, you see the U.S. market was up 1%, EMEA grew 4% with gains from all segments, and Japan and Korea were off 2% and 4% respectively.
Speaker Change: Common themes in the quarter with our Asia business, our growth in titleist equipment and gear, and declines in Fuchoi and titleist apparel.
Speaker Change: The season started slowly in Japan and Korea due to poor weather, but we have seen improved conditions in March and April .
Speaker Change: With the solid first quarter in the books, we are now focused on executing a full slate of ball, club, and footwear fitting events across all markets
Speaker Change: Despite poor weather and a slow start in the U.S., where rounds were off 2%, we projected total worldwide rounds of play were up slightly for the quarter, led by a nice start in the M.E.A. and the U.K. up 15%.
[inaudible]
Speaker Change: I will now comment on how the changing tariff landscape is impacting Acushnet and some of the steps we are taking across the organization to mitigate these new costs.
Speaker Change: As we have noted in recent years, the company's supply chain is durable and regionally diverse, which provides our teams a good amount of operational flexibility to adapt to an uncertain and evolving tariff dynamic.
Speaker Change: Our vertical integration in golf balls, golf clubs, footwear and golf clubs, first and foremost, supports our efforts.
Speaker Change: to achieve the highest quality standards in the products we produce. It also provides a good amount of control and agility as it relates to demand planning and global supply chain management.
Speaker Change: Roughly two-thirds of our worldwide golf ball output is produced in the United States, and our two Massachusetts-based ball plants supply the majority of our U.S. golf ball demand.
Speaker Change: Our Thailand plant supplies Probi-1 models to all of the regions now including Canada.
Speaker Change: Our golf ball business has a small exposure to tariffs from China's sourced raw materials which we expect to mitigate by end of year.
Speaker Change: Additionally, we ship US-produced performance model golf balls into Canada and Mexico, which are presently incurring a 25% tariff.
Speaker Change: We have not yet reacted to this temporary rate, however, if this becomes permanent we will likely take pricing measures.
Speaker Change: Club components are sourced from China, Taiwan, Vietnam, and the US, and we operate our own assembly centers in most major regions.
Speaker Change: All of our U.S. Club demand is assembled in our Cross-Bad California facility.
Speaker Change: Power primary golf club tariff exposure today is from China-sourced club heads shipped into the US.
Speaker Change: Over time we will reroute these heads to our international facilities and supply our U.S. production center with components sourced from the U.S. Taiwan and Vietnam.
Speaker Change: As you know, we recently relocated our Footwear Manufacturing Center from China to Vietnam.
Speaker Change: While we are confident this move has a long-term benefit, foot joy like most footwear companies is exposed to tariff uncertainty in Vietnam, which was originally posted at 46% but is now at 10% during the current pause period.
Speaker Change: And finally, the company owns and operates a standalone glove facility in Thailand, which produces both foot joy and titleless gloves, the number one and number two selling glove brands in the market.
Speaker Change: We are confident that Acushnet's supply chain footprint provides us with flexibility to adapt most notably within golf equipment our largest segment.
Speaker Change: As Sean will outline, we expect to mitigate a good portion of the current tariff impact by end of year and expect to realize further relief in 2026 from some of our actions that will take longer to materialize.
Sean Sullivan: With regards to pricing, we have not yet passed along increased tariff costs to consumers, but do anticipate taking some regional pricing action on select products as we gain clarity on the extent and timing of our mitigation efforts.
Sean Sullivan: In summary, we are pleased with our strong start to the year and the continued strength and resiliency of Acushnet's core consumer, the game's dedicated golfer.
Sean Sullivan: As you would expect, our teams are focused on providing exceptional product, fitting, and service experiences to golfers and our trade partners and making the right long term based decisions while we navigate this period of tariff uncertainty.
Sean Sullivan: Thanks for your attention this morning. I will now pass the call over to Sean.
Sean Sullivan: Adjusted EBITDA with 138.9 million, a decrease of 9.6% from the first quarter of 2024, but in line with our expectations as we continue to invest in key strategic initiatives.
Speaker Change: Net sales growth in the quarter was driven by continued momentum of our title as brand, with golf equipment and golf gear, both growing by 4%.
Sean Sullivan: Foot joy net sale to climb 5% in the quarter, primarily due to lower footwear and apparel volumes
Sean Sullivan: Geographically, Q1 net sales were up year over year in the US, Emia, and Rest of World, driven by golf equipment and golf gear.
Sean Sullivan: First quarter net sales declined in Korea and Japan, primarily due to our foot joy golf wear segment, largely in footwear and lower net sales of title list apparel products that are not allocated to one of our three reportable segments.
Sean Sullivan: Gross Profit in the first quarter of $337 million was down $5 million compared to the first quarter of 2024, primarily due to higher manufacturing costs and the title of golf equipment segment, as well as lower net sales in foot joy golf wear.
Sean Sullivan: These were partially offset by hired average selling prices and lower distribution costs in golf gear and higher net sales in title as golf equipment.
Sean Sullivan: SG&A expense of $200 million in the quarter decreased almost 1 million from 2024.
Sean Sullivan: Increases in advertising and promotional expense to support new product launches and selling expense primarily related to fitting network investments.
Sean Sullivan: R&D expense of $18.9 million was up to $2.4 million compared to last year's first quarter, primarily to support next-generation product introductions.
Sean Sullivan: That interest expense of $13.8 million in the quarter was up almost $1 million due to an increase in borrowings, partially offset by a decrease in interest rates.
Sean Sullivan: Moving to the other income expense line, I want to highlight a gain resulting from the transition of our footwear manufacturing from our China joint venture to Vietnam.
Sean Sullivan: Because of the shift in footwear manufacturing out of China, we are no longer the primary beneficiary of the joint venture and therefore have deconsolidated the JV accounts from our financial statements.
Sean Sullivan: As a result of this deconsolidation, we recognize a non-cash pre-tax game of $20.9 million during the first quarter, which has been excluded from the Adjusted EBITDA calculation as noted in the reconciliation attached to our earnings release.
Sean Sullivan: Our effective tax rate in Q1 was 17.9% down from 21.7% last year, primarily driven by a shift in our jurisdictional mix of earnings.
Moving to our balance sheet and cash flow highlights.
Sean Sullivan: Our balance sheet and cash flow positions continue to be very strong, allowing us to execute our capital allocation strategy while also navigating the current macroeconomic uncertainty.
Sean Sullivan: Our net leverage ratio using average trailing net debt at the end of Q1 was two times.
Sean Sullivan: Overall, inventories declined 7% from the fourth quarter of 2024, and were roughly flat when compared to last year's first quarter.
Overall, we are comfortable with our inventory quality and position [inaudible]
Sean Sullivan: Capital expenditures were $11 million in the first quarter of 2025, and while we plan for approximately $85 million to spend in 2025, we will continue to assess considering the current environment.
Sean Sullivan: Through March, we return roughly $51 million to shareholders with $36.6 million in share and $14.8 million in cash dividends.
Sean Sullivan: During April , our Board of Directors declared a quarterly cash dividend of 23 and a half cents per share, payable on June 20th, to share hold as a record on June 6th.
Sean Sullivan: On April 10, 2025, we've repurchased approximately 936,000 shares of our common stock from Magnus for an aggregate of 62.5 million related to our June 2024 share repurchase agreement.
Sean Sullivan: With respect to our previously disclosed December 2024 Magnus Chair Repurchase Agreement
Sean Sullivan: To the end of April , we've repurchased approximately 90% of the 62 and a half million target and expect to settle the related magnus year repurchase obligation during the third quarter of 2025.
Sean Sullivan: Given the current market conditions, we will continue to assess our previously stated capital allocation approach for the balance of the year while monitoring leverage, liquidity needs, and the appropriate levels of investment.
Sean Sullivan: Moving to guidance for 2025, the macro environment remains highly uncertain due to changing trade policy.
Sean Sullivan: For that reason, we are not providing any updates to our consolidated full year outlook until there's more clarity.
Sean Sullivan: On a positive note, as David said, our core consumer remains strong and resilient.
Sean Sullivan: In terms of overall tariff exposure, based on our estimates, we expect our gross impact in 2025 to be approximately $75 million on the assumption that the current rate regime extends through your end.
Sean Sullivan: If we had not worked to diversify our supply chain over the past two years, our tariff exposure would be much higher.
Sean Sullivan: We are taking actions to implement mitigation plans, including adjusting our global supply chain footprint, initiating cost and productivity programs both internally and externally with our suppliers and considering selective price increases.
Sean Sullivan: Through these actions, we believe we can offset greater than 50% of the $75 million gross tariff impact during 2025.
Sean Sullivan: Now turning to the first half, similar to our 2024 fourth quarter call, we currently expect first half sales to be up low single digits versus the first half of 2024.
Sean Sullivan: We expect most of the additional tariff impact of the fall in the second half based on our current inventory levels.
For Q2, we expect an approximately $4 million tariff impact.
Sean Sullivan: including this impact we expect first half of Justin Ibidah to be down low single digits as compared to last year's first half.
Sean Sullivan: In closing, we are very pleased with our performance in the first quarter of the year and remain focused on controlling what we can while servicing the needs of dedicated golfers.
Sean Sullivan: Our business and balance sheet are well positioned for the current market environment, and we'll continue to monitor the terror situation and provide updates when appropriate. With that, I'll now turn the call over to Sondra for Q&A.
Sondra Lennon: Thank you, Sean. Operator, could we now open up the lines for questions?
Thank you.
Speaker Change: We will now start today's Q&A session. If you would like to register a question, please press start, followed by one on your telephone keypad. Until we draw your question, it's start
Speaker Change: Our first question today comes from Megan Platt from Morgan's family. Your lines are now open, please go ahead
Megan Platt: Hey, good morning, Dave Sean. Thanks for the question. I wanted to start maybe with the guidance. It seems like you're more pausing the guide to wait until there's more clarity and it doesn't seem like anything has really changed around.
Speaker Change: Hi, Megan. I'll start with that one. Typically, this time of year, we do not update guidance. We say often Q1 is about pipeline and shipping product into the market Q2.
Megan Platt: You get a read on consumer behavior, you get a read on early response to your products.
Brown's play has noted.
Megan Platt: Resilience, and if I look at a slight decline in the U.S. and an uptick outside the U.S. for
Megan Platt: That's a nice position to be in. Looking in the US, Florida up slightly in the quarter, California, Arizona up, eight and five percent in the quarter.
Megan Platt: So, going back to, we feel we feel really positive about our consumer and the structural health of the industry certainly where we're careful and cautious with regards to what's happening from a from a tariff perspective.
Megan Platt: But our guide, I'm not sure it's as pause as much as this is how we generally play at this time of year and we just exit.
Megan Platt: Q2 which hit with a much more informed position. What you could infer is we've reiterated our first half based on what we've seen today and that is
Okay, that's clear and helpful. Thank you
Speaker Change: And then as it relates to the tariffs, maybe a follow up for Sean, you know, when you think about the mitigating actions
Speaker Change: More than 50% of the 75 million this year. It seems like pricing is maybe the last resort but could you spend a little bit of time just bucketing the actions maybe you know what's what's first in your minds in terms of what you're going to do and what point do you think you'll make a decision on pricing.
Speaker Change: Yeah, I can start. David certainly can chime in afterwards. I think that certainly you're right. I think the price is probably the last lever we would pull.
Speaker Change: You know, in the intervening period, we're very focused on how do we redirect certain activities to markets and sourcing into the United States?
at the Lower Tara Freight.
Speaker Change: Number one, number two, we're having conversations with many of our suppliers and vendors and
Identifying opportunities to either cost share or-
Diversified Supply Chain [inaudible]
Speaker Change: You know, the biggest impact in terms of our business is really the club business and foot joy.
Speaker Change: and as David talked about, I think, you know, the club side we...
Speaker Change: have a plan and a path for later this year to source clubs in the United States out of non-China territory, so that's good and on the foot joy side.
Speaker Change: Certainly, please, that our footwear is in Vietnam, but there's certainly apparel categories that we're looking at alternative opportunities.
Speaker Change: First and foremost, look at the supply chain, see where we can source into country from alternative areas and over the longer term, I think we have a plan to move out of China in certain aspects of our business.
Great, super helpful. Thanks, I'll pass it on.
Thanks, Megan. Operator next question.
Speaker Change: Our next question today comes from Joe Altobello from Raymond James. Your lives now open, please proceed.
Joe Altobello: Thanks, hey guys, good morning. I appreciate the clarity on tariffs, obviously. I guess one question, I'm not sure anybody expects China to stay the 145%, so what does that 75 million look like if China would that stay 50% for example?
Joe Altobello: Yeah, Joe, I mean, again, I highlighted in our remarks, I mean, of our 75,70% or more of that.
Joe Altobello: is related to China, specifically. So, you know, that's what 50-some odd million dollars is China. So, presumably, if it's at 50, we're looking at a third of that number. So, that's, you know, a big opportunity to mitigate it. We go from 145 to 50.
So hopefully I've given you those pieces to assess that [inaudible]
Speaker Change: I appreciate that. I miss that, I apologize. And maybe kind of moving on to Asia, you know, still a little bit of weakness, particularly in a parallel, in Korea and Japan. I think you mentioned that you saw a little bit of improvement.
Speaker Change: Later in the quarter and into Q2. Can you sort of elaborate on that a little bit?
Speaker Change: Yeah, Joe. Slow starts, January , February , weather, weather, turns, March, April have been pretty good. So we're back on track, but certainly a slow weather related start there. A quick comment on Asia, and we like the trends of our equipment business.
Speaker Change: And our gear business, as we've said recently, there's been some pressure on apparel in Asia and just for context and I have called out before...
Speaker Change: this premium, super premium market in Korea. And it is outsized, it represents about 40% of the global golf apparel market opportunity, so it's a very sizable market.
Speaker Change: It went on a big run over the last four or five years, and it is correcting. We saw it last year, and we see it this year. So A, we're prepared for it, B,
Speaker Change: It's not surprising to us, but if I break up, Asia, and in this case, really Japan and Korea, which are the second and third largest markets, I'll park.
Speaker Change: I'm trying to sigh just because it's not that big, but if you look at Asia and Japan and Korea...
Speaker Change: Rounds are resilient after a slow start. We like the trends of balls and clubs and a watch out continues to be a peril and footwear which again we planned for.
Got it. Okay. Thank you.
Bye.
Thanks, Joe. Operator, next question, please.
Speaker Change: Our next question today comes from Michael Schwartz from Truist. Your lines are now open. Please go ahead.
Speaker Change: Hey, good morning. This is Julian from my one question. I guess relative to your guys in February , how would you also change an exchange rate to be seen impact at outlook?
Speaker Change: Yes, so as we had entered the year, Julian, we had expected, as you know, $35 million dollar headwind, we experienced about a $12 million dollar impact in Q1 right in line with our 10 to 15.
Speaker Change: that we had highlighted. I think that if today's rate were to persist to the end of the year, it's probably worth something north of $20 million
Great. Thank you very much.
Thank you, operator. Next question, please.
Speaker Change: On its question today comes from Noah Zatzkin from Keyback Capital Market. Your lines are now open, please go ahead.
Noah Zapskin: Hi, thanks for digging my questions. I guess first, maybe just a quick follow-up on the $20 million comment. Is that a
Noah Zapskin: Kind of tailwind to overall numbers or is that a tailwind versus kind of the run rate $35 million
that you laid out previously.
Noah Zapskin: Yeah, it's 20 million versus prior year is what I've highlighted.
Noah Zapskin: Right, so we've got the $12 million impact in Q1 that the year-over-year headwind in the $20 million would be a tailwind relative to prior year, I guess, therefore net $8 million for the year.
That's how I hang it out for you.
Okay.
Noah Zapskin: that's very helpful. And just as you think about mitigation efforts beyond this year
Noah Zapskin: Is there a scenario where you'd be able to presumably diversify fully away from China, or are there some critical components like that will have to remain in China?
Noah Zapskin: Guidepost in mind, looking ahead. Thanks. Yeah, so couple of examples right now. We source club heads from China, Taiwan, and Vietnam. We have assembly centers around the world.
what we said is that we would...
Noah Zapskin: Move sourcing to the US away from China into Vietnam and Taiwan, so that's an existing move that we can make fairly quickly. Yet we still anticipate China supplying our assembly centers in markets outside the United States.
Noah Zapskin: Similar, we've got a diverse supply chain across our apparel franchises but a good amount comes from China and the Forest and South America.
Noah Zapskin: It's more a function of moving away from China for products shipped and sold in the United States.
Noah Zapskin: and rerouting some of that capacity to markets outside the United States. So I think in many cases we've got a lot of...
Noah Zapskin: Dexterity and Flexibility to move pieces around the board, where it gets a little interesting is we've got a small exposure in our golf ball business, we source raw materials.
Noah Zapskin: from China, some raw materials, from China to our ball plants in the United States and Thailand. We'll keep sourcing into Thailand. Thailand will look to...
Noah Zapskin: to move out of China in terms of our sourcing coming into the US. That takes a little while.
You need to qualify new vendors, that probably won't [inaudible]
Noah Zapskin: Realize your materialize until sometime next year so it's not a full exit from China it's a it's a move pieces around the board and and minimize the product we bring in from China into the US but I still expect we'll have.
Noah Zapskin: some products flowing from China into markets outside the United States where there's no
Noah Zapskin: But to your very help, a question for sure. Again, it's a fluid situation seemingly is changing by the day.
Noah Zapskin: We don't want to move too quickly and affect demand or the consumer, but the expectation is once we, if the current environment is the steady state, we would be in a position to mitigate 100% of this impact.
Sean Sullivan: 26. That would be the expectation. Yeah, I'll underscore Sean's comment. You know, our objective is to take a very measured long-term view in what is a period of significant uncertainty.
Sean Sullivan: We think it's best for our business, it's best for our trade partners, and most importantly, it's best for our consumers so...
Sean Sullivan: If there's one takeaway, it is that we've got a lot of flexibility within our supply chain.
Sean Sullivan: and we're being measured and whenever, wherever we can, taking a long-term view and keeping our options open with the understanding that it's highly unlikely whatever the situation is today will be the situation it is two, three months from now.
Very helpful. Thank you.
Great. Thank you, operator, next question.
Speaker Change: Arnett's question comes from Carlos Gallagher from Jeffries who lines in our open, please proceed.
Speaker Change: Good morning. Thanks for the question. Could you guys unpack what you're seeing in terms of quarter-to-date demand trends? Are you seeing any signs of or do you anticipate any reduced demand in international markets related to the move away from American brands?
Speaker Change: Carlos, a good question. Obviously, we're watching it very, very carefully both in the United States and in markets outside the United States.
Speaker Change: I will say early days in the Gulf world as so many markets just opened up in the last couple of weeks so we don't have a deep or long bank of consumer data to work with.
Speaker Change: But what I will say is here we are in early May and we like the state of participation rounds.
Speaker Change: and I would characterize our business in just about every market as normal for this time of year.
Speaker Change: said differently. We haven't seen any meaningful swings or noteworthy swings in one direction or another. Either in the United States or in markets outside the US. But to your question...
Speaker Change: It's something we're watching very carefully and more notably we're watching the state of the consumer very very carefully and when we do that we also do it with the
Understanding in some degree of comfort.
that our consumer, the dedicated golfer as we call it.
Speaker Change: Over Cycles has proven to be quite resilient, but as we sit today
Speaker Change: What we're seeing is about what we expected out of the US markets and in markets around the world.
Speaker Change: Superawful, thanks. Could you give us an update on the dynamics in the footwear space which is related to some of the new engines we saw last year and channel adventures.
Speaker Change: Yeah, we're really happy with our footwear business. We've got a handful of new launches that have been, that have been well-received, hyperflex, premiere, quantum.
Speaker Change: We did comment on the top line decline. We're selling fewer closeouts, which is a net positive.
Speaker Change: and we've done some product line rationalization, which we think over time will be a...
Speaker Change: A positive for Fuchoi as well. I did comment, we look at 2025 as a year of top line stability, a greater percentage of premium performance, full price product, if you will, and a path to improve profitability. But after what's been...
Speaker Change: 1824 months of correction in the footwear space as it worked through what we would characterize as an oversupply. Generally, we look around the world and we see footwear inventories.
Speaker Change: at a proper level for this time of year. Said differently, stores, retailers are full, as they should be at the beginning of the season. But we think...
Speaker Change: We think the year and footwear should be characterized as being more normalized than we've seen in the last couple years and we like the early response and trends within our foot joy business as well.
Great, thank y'all for that song.
Thank you.
Speaker Change: Thanks everybody. We appreciate your interest and hopefully Mother Nature cooperates this spring and we all get out and play some golf and we look forward to speaking to you after Q2.
Speaker Change: That does conclude today's call. You may now disconnect your line.
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