Q3 2025 Turning Point Brands Inc Earnings Call

Good morning and welcome to the Turning Point Brands. Third quarter, 2025 earnings conference call. All participants will be in. Listen only mode.

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I would now like to turn the conference over to Graham party. Please go ahead.

Thank you, operator. Good morning everybody. And, uh, I really appreciate you all joining the call a little bit of a somber morning here for us and uh, uh, in town here. Um, before we walk you through our Q3 results, I'd like to say a few words about the tragedy that hit our community yesterday. Uh,

With the UPS, uh, Flight crash.

As I'm sure you're aware, we're a Louisville based company, um, aside from, you know, being a business partner of ours, uh, UPS is is really woven into the fabric of the Louisville Community.

And in many ways lovealls, uh, it's a very small town, uh, in the community is, is very tight-knit. And, you know, while we're fortunate that, uh, none of our employees were directly impacted, uh, or affected by the tragedy yesterday. Um, it's likely that we have friends and loved ones, uh, that know somebody that uh, that was

families of those that were directly impacted by the tragedy, uh, and to the UPS family as they deal with this heartbreaking situation,

And so with that, I'd like to turn the call back to the operator to uh, to get started.

Thanks Graham. Now I would now like to turn the conference over to Andrew Flynn. She Financial Officer, please go ahead.

Good morning everyone. A short while ago, we issued a press release covering our Q3 results. This release is located in the IR section, where website at www.turningpoint.com

During this call, we will discuss our Consolidated and segment operating results and provide some perspective on the operating environment and progress against our strategic plan.

As is customary. I direct your attention to the discussion of forward-looking and cautionary statements in today's press release.

And the risk factors in our filings of the Securities and Exchange Commission.

On the call today, we will reference certain non-gaap Financial measures these measures and reconciliations to gaap are in today's earnings release. Along with reasons why management believes they provide useful information.

I will now turn the call over to our CEO Graham party.

Thanks, Andrew. Good morning, everyone and thank you for joining our call.

Our Consolidated, third quarter results were better than expected in demonstrated continued. Progress against our plan.

Revenue, increased 31% to 119 million for the quarter.

Including 36.7 million in net, modern oral Revenue which includes 1.5 million of slotting fees that are accounted for as Contra Revenue.

Adjusted ibida, increase 17% to 31.3 million for the quarter.

We are, increasing adjusted debit I guidance to a range of 115 to 120 million up from 110 to 114 million.

We are increasing full year Consolidated. Nicotine pouch, sales guidance to a range of 125 to 130 million.

Up from 100 to 110 million.

This includes both free and help.

We are particularly pleased with the growth of our white nicotine pouch Brands, their long-lasting, vibrant, flavor options, comfortable mouth, feel, and flexible nicotine levels. Have resonated with consumers.

During the quarter, white pouch sales, increase 628% year-over-year in 22% sequentially.

Some of you may have noticed that out already. 1 of the top DTC pouch brands in America has started to appear on bricks and mortar shelves in, select retailer tests.

Recall that we initially expected out to be exclusive DTC for all of 2025.

Suffice it to say we are pleased to help is running ahead of schedule.

We believe that nicotine pouch space like most other nicotine businesses will ultimately feature 5 to 6 wide distributed brands that command most of the market.

Analysts expectations for the size of the category differ, but most believe it will approach if not exceed 10 billion in manufacturers Revenue by the end of the decade.

Our Q3 performance supports our long-term Target of double-digit market share in the category.

In order to best position, the company to capitalize on this multi-billion dollar opportunity, we have made and will continue to make significant investments in the business and refine our route to Market strategy to prioritize free and out while continuing to generate strong cash flow from our heritage brands.

During the quarter, we raised 100 million of gross proceeds under our previously announced at the market offering program at an average share price of 9859.

We expect to opportunistically deploy. This Capital across a variety of high return opportunities to accelerate the growth of our modern oral business.

Consistent with our policy of maintaining active buyback and sales authorizations to maximize Capital markets flexibility.

We plan to update our ATM perspective supplement and buy back authorization to provide for 200 million of capacity under each program.

We have no current plans to transact under the updated authorizations.

Key investment initiative, include reality, allocating sales, and marketing resources.

Increase in the headcount of our sales force, improving our online presence. Ramping up investment in chain accounts, expanding the international markets and building out us manufacturing to improve white pouch. Profitability and mitigate supply chain and tariff risk.

We are pleased with our progress on the manufacturing front, and expect to qualify the first production lines in the first half of 2026.

We've been particularly encouraged by our ability to identify and onboard new sales Talent.

we are ahead of schedule and our goal of doubling the size of our sales, force, by the end of 2026,

The rest of the soaker segment portfolio also performed better than expected in the quarter.

Overall Stoker's Revenue increased 81% to about 74.8 million.

Please a 6% increase in MST.

In the aforementioned, 628% increase in modern oil Revenue.

During the third quarter, zigzag revenue is down, 11% to 44.2 million and down 6% sequentially. While this decline was anticipated and performance was ahead of our expectations,

we continue to think it reflects some opportunity costs related to our focus on Modern normal.

With that, I'll hand the call over to Summer, to walk through the progress of our key, go to market initiative.

Thank you. Graeme. As he noted, we continue to make significant Investments to support our go to market strategies, to prioritize free while also continuing to generate strong cash flow from our Legacy brands.

Throughout the quarter. We continue to expand our efforts and our initiatives, to support the growth of free focused on sales and marketing. Our key initiatives, to support free include first optimizing, our approach to expand distribution, improve brand merchandising, and minimize out of stocks,

To support our growing sales organization. And increase our footprint, we have developed new sales and Merchandising tools to secure the ideal assortment established shelf space and execute a premium look and feel at retail

Throughout the quarter, we also continued our expansion efforts, not only into new stores within large-scale chains, but also expanded our SKU offerings.

Toward the end of the quarter, we launched free watermelon. Fruit flavors. Represent about a quarter of all OSD sales, when excluding mint and Wintergreen flavors.

Watermelon is not merely a flavor extension, it is the fastest growing fruit flavor in the nicotine pouch category, and free is uniquely positioned as a first mover with a complete strength offering.

Second continuing to invest in and expand strategic marketing campaigns to accelerate brand awareness and consumer loyalty.

we have been encouraged by engagement in early returns from our partnership with professional bull riding and are exploring other brand Partnerships and collaborations that align with freeze, own your Edge tagline and brand ethos

With regards to zigzags, we continue to execute marketing and sales initiatives that build Upon Our 145 Year Legacy and solidify our premium position across the segments.

To build upon this Legacy and reward our most loyal consumers, while creating an opportunity for viral Buzz, we launched a promotion called zigzag for life.

This campaign offers an opportunity to win a lifetime supply of zigzag cones to anyone who has or gets a zigzag tattoo.

We also relaunched zigzag Studio, a collaboration with creators, and musicians, to build upon the Brand's strong association with pop culture.

These campaigns magnify zigzags identity as an iconic brand and consumer interest has been encouraging.

Of note in the quarter. We also laid the groundwork for the launch of a new zigzag product. Now, natural Leaf, flat wraps to better compete in the ever growing naturally segment of the wraps category.

Lastly, turning briefly to Stoker's, we continue to see strong performance despite category pressure in the quarter. We launched both a new product offering, Stoker's Fine Cut Wintergreen cans, and Stoker's first-ever dtoc site.

Stoker's continues to be a steady Heritage business with a very active and engaged consumer base.

In closing, we continue to build our brands for the long term execute against. Our Omni Channel Plan and Win new consumers. Our focus is to prioritize strategic Investments to maximize the value of our world-class Brands and further, strengthen our distribution capabilities.

Let me now turn the call back over to Andrew to go through our financial results.

Thank you, summer.

Sales are up 31% year-over-year to 119 million for the quarter.

For the quarter, gross margin was 59.2% which was up 360 basis points. Year-over-year and 210 basis point sequentially.

the change in margin is mixed driven, primarily related to our outsized growth in modern oral

Report sgna was 44.5 million for the quarter, which was up 4. 2.

This increase was primarily driven by modern oral related sales and marketing Investments as well as increased outbound Freight charges to support our growing business.

Adjusted. I was up 17% year-over-year to 31.3 million for the quarter at a 26.3% margin.

Going into segments performance.

Zigzag sales decreased 11% year-over-year to 44.2 million for the quarter, but it was a head of our expectations.

Gross, margins increased. 210 basis points to 57.5% driven by mixed shift and improved cogs pricing in certain zigzag product categories.

Stoker's, net sales, increased 81% year-over-year to almost 75 million for the quarter.

Share in store, selling was up, 130 basis points year-over-year to 12.1%.

Loosely sales increased 4% year-over-year to 11 million.

our modern oral nicotine pouch sales free and Alp we're up 628% year-over-year, achieving total revenue of 36.7 million

White pouch now accounts for 31% of our business up from 26% in the second quarter and 6% a year ago.

Moving to the balance sheet.

We ended the quarter with just over 201 million of cash, pre- cash flow for the third quarter was negative 1 million, including the first coupon payment on our 7.625%, high yield Bond issued, in February of 2025.

As Graham mentioned during the quarter, we raised 100 million dollars of gross proceeds and 97.5 million of net proceeds and the average price of $98.69 per share under a previously announced ATM program to support our white pouch growth initiatives.

Capex for the quarter was 3.8 million.

On to guidance and other items.

As previously, noted, we are increasing our full year 2025 adjusted IBA, guidance to 115 to 120 million.

From 110 to 114 million and also an increasing our anticipated total modern oral sales range to 125 to 130 million from the previous range of 100 to 110 million.

This guidance reflects increased investment in our go to market plan as well as tariff and currency related impacts.

For modeling purposes. The effective income. Tax range is 23 to 26% on a go forward basis.

Budgeted capex for 2025 is 4 to 5 million exclusive of projects related to our modern oral business. We expect to spend between 3 to 5 million dollars for the full year to supplement our modern oral pmta.

Now, let me turn it back over to Graham.

To conclude.

We are pleased with our third quarter results, and I'll now turn it over to questions.

At this time, I would like to remind everyone that in order to ask a question, press star, then the number 1 on your telephone keypad. We ask that you limit your questions to 1, and 1 follow-up.

We will pause for just a moment to compile the Q&A roster.

The first question comes from Eric, this is Laura yours from Craig Holland. Your line is open.

Thank you for taking my questions and congrats on yet another fantastic quarter here.

Um, first question for me, um, just on the on Shoring. Uh, nice to see, um, how should we think about this from a capacity standpoint? Um, and how are, how are you thinking about sort of cogs per unit, uh, for nicotine pouches produced onshore versus um, via your co-manufacturing partner right now? Thanks.

Good morning, Eric. Thanks for the question. So, um, the way we're thinking about the unit economics, uh, for our white pouch is was onshoring. We'll have sort of immediate, um, Savings in terms of inbound Freight, as well as avoidance around tariffs. So we should have favorability, uh, on that on those 2 items.

At the gates. Once we once we actually qualify the lines which we're expecting in the first half of 2026 and then on an ongoing basis as we get volume. Um, on those lines, we expect um, the unit economics, uh, to improve from there.

Okay, great. Um, that's that's very encouraging. And then just any any commentary um on that capacity standpoint. Um how we should think about this?

Yeah, look, I think that as we've disclosed in the past, uh, we feel good about the capacity that we've got, uh, with our third party manufacturer and the capacity that we get in the US will be additive to that. So we believe that we're in a very good position. Both from an inventory perspective that we have on hand today, as well as capacity on a go forward basis.

All right, that's encouraging. Um, and then just as a uh kind of follow up here um

Can you comment on what you're seeing from an in-store market share perspective for your modern oral, um, category here. Um, just any, you know, I know it's still very early and, you know, you're still rolling out. Um, but any comments on um early kind of in-store market share would be helpful. Thank you.

We're really focused on sharing store selling and I'll tell you. We're highly encouraged by those results.

It's great to hear. Thank you for taking my questions and congrats again.

Thanks Eric.

The next question comes from Ian zeino from uppen your line is open. Um, thank you very much. Um, really good quarter. Um, you know, question would be um,

Um, you know, can you maybe talk about the MSG um and loose leaf growth there. You know, what was driving that as far as price volume and kind of market share? If you could talk about that, thanks.

Yeah, I would say that uh it's combination of a couple of those things. Um we grew share uh sequentially in the uh in the quarter as well as uh you know, there was some favorability around around pricing.

Like I would note that, uh, you know, we anticipate that there's, you know, be a north of 900 million canceled in that category. We still have, uh, you know, less than 10 share, although it's high single digit share. We think there's tremendous opportunity, uh, you know, for for further, uh, gains within within MST. So, we're remaining excited about the opportunity.

Okay, thanks and then um, you know, on Modern oral can you just maybe help us understand? Um, the drivers there, you know, free versus out. Maybe you could talk about each 1 and what you're seeing there and then as you kind of continue to to push into to larger chains. What kind of cadence should we expect? Um, as they start to hit and as, as your discussions have been ongoing, thanks.

Sure, I'll take the, uh, I'll take the first part of that question. Um, you know, to this point we haven't disclosed, uh, the differentiation between free and out given the sensitivity around the, uh, around the partnership. What I can say is, uh, we saw Healthy Growth from both properties, uh, during the quarter. So we were excited about that.

Uh you know our out business continues to dominate uh you know from a a B to C standpoint but they are also making some inroads into uh into some bricks and mortar accounts. We're highly encouraged by by the results of some of those early tests in there. Um, you know, free had a very nice quarter both online as well as uh, as well as in bricks and mortar. Uh, pass it over to Summer to to answer the second part of the question there for you. And hey, there we continue to make progress in both new chains and expanding our SKU assortment and existing chains. So we remain really excited and encouraged about our progress there. And in particular, with some of the partners we've had for a while, both both sides continue to be happy with the partnership.

And we're excited to see how it evolves in coming quarters. And as we look toward, you know, progressing in upcoming quarters, major chains are in the process of evaluating their planograms for next year and we're, you know, in those conversations same as our competitors. So, we look forward to, to how the next few quarters roll out.

Okay. Thanks and then if I could just ask 1 more here, um,

As far as in modern. Oral oral the the promotions, you know, how did you handle? Um, you know, the promotions that that we saw a couple months ago. Um, you know, and and and how do you kind of navigate the landscape given that? Or what's kind of, I guess your overall view of how the category is going to kind of play out over the competitive? Landscape is going to play out over the next couple of quarter or 2, quarters, or so, thanks.

Sure, you know, look, I I I remain bullish on the category and 1 of those sort of foundational components about that bullishness is around the the balance sheets that the large manufacturers have to deploy against converting consumers into the category. We believe we have a winning format as well as 2 winning Brands. So give us an opportunity to to Really chase after consumers.

Obviously Q3 was uh, was a brutal promotional quarter but not for us, you know, we, we sort of maintain the Integrity of our pricing at retail. Um, we continue to focus on the things that we know when for Our Brands which is getting more shelf space getting broader presence in the store. So we really didn't participate uh within the quarter as we, you know, saw the uh, saw the major competitors, uh, you know, sort of deploy their promotional uh resources the market.

Now look, we think long term, there's going to be strategic opportunities for us to invest in opening up the funnel for the consumer, but we're taking a really measured approach and really reading our data and, and, and listening to what consumers are telling us within our online platforms, which gives us somewhat of a distinct Advantage when we have that really direct touch point with our consumer.

That we have a really great opportunity to win consumers.

Okay, thank you very much. Great quarter.

The next question comes from Aaron Gray from Alliance Global Partners, your line is open.

Hi. This is John on for Aaron gray. Thanks for the question and congrats on the strong quarter. So, I know.

The.

Prepared remarks you touched on the go to market strategy progress. But in terms of distribution, do you still see meaningful white space opportunities for free? Um, you know more so near-term. And for Alp when should we expect to see meaningful brick and mortar distribution? Um, were some of the initial brick and mortar Channel, Pilots to see how Alan Alvin free performed, uh, just any more color on what you think. Maybe the right approach approach to promote the brand, alongside each other would be helpful.

Yeah, look. We're we're excited about the, uh, the continued gains that we make. We've mentioned in past quarters, as well as on this call that we continue to invest in our sales infrastructure to uh, to further our distribution gains in the market, some are just noted as a second ago. You know, we're, we're pleased with our progress against, uh, against chain accounts both large and small chains. Um, we do have a, an account that, uh, that shares both platforms, uh, both free and out. We've been excited about, um, the results of sort of that shared platform, uh, inside the store

Um there's a tremendous amount of white space for both Brands, albeit a little bit more for Alp at this point in time given the fact that we've been focused on bricks and mortar distribution out the gate and, uh, Alva's been focused on Direct consumer. So I think there's a really great marriage there. You know, as we move forward with, uh, with tremendous opportunities, for, for both Brands to, you know, effectuate a broad-based distribution and, and really, uh, you know, scream to to multiple consumer audiences to give us the greatest upside to to capture consumers into either 1 of the franchises.

Great. Thank you. Um, and second how how, how would it be best to think about the approach to balancing profitability and growth? Um, you know, for Q, embeds a little bit of ebita margin pressure and the company's been able to achieve, you know,

Sizable growth while maintaining a healthy, give it to them margin of you know 206% year to date and 2025 uh do you expect he'll be able to maintain that or could there be some even the margin pressure even Beyond 4 q is you invest in the promotional pouch environment.

Yeah. Look I we're not certainly going to comment on our on our investment strategy, specifically. Um, for competitive reasons, I would say that, you know, at this point in time, we we've struck a, a sort of a healthy balance between growth and profitability. And so, I think that we'll be measured in the future in terms of how we deploy our resources around High return, uh, projects.

Great thanks. I'll jump back to the queue.

Thanks John.

The next question comes from Nick Anderson from Ross, Capital Partners, your line is open.

Yeah, good morning. Thanks for taking the questions, congrats on the quarter. Uh, first 1 for me just on Modern orals. Given the growth in the category. Have you seen any noticeable changes in shelf space allocation by retailers? I know some are mentioned the planogram phase going on now. But how do you expect that allocation of space to Trend kind of going forward? And if modern oral products are gaining allocation which products are losing allocations. Thank you. Yeah. I I'll take that question in Graham can can chime in as well what we're hearing from retail is that they're really taking a methodical approach to how they do allocate space across their shelf and their back bar area, because they see the category Dynamic shifting more to OST. And so, they're being really diligent and deliberate about how they're allocating that space across the segments, and the nicotine space and then being really thoughtful about which brands. They're they're putting on shelf as well, based on performance. And so, we're, we're happy to be part of those conversations. Yeah, look, I think we anticipate

Ate that the the allocation of space for modern oral will grow given the, uh, the underlying growth of the category. And I think it's really, uh, it's, it's too difficult. A question to answer, um, specifically on which products, uh, you know, will will be displaced on the Shelf because there's a lot of regional preferences around different types of products that, uh, that sell, you know, nationally. So, I think it's, it's a little hard to say, what, what, what could be displaced, uh, in that process. But uh, from our standpoint we think opening up more shelf. Space is just a, is a big Tailwind for for our business.

On the Loyalty initiatives, you have out and free rewards programs online. Uh, just wanted to get some color on how those are trending in terms of program growth and engagement. And if there's any noticeable difference in spend from these consumers in those loyalty, ecosystems thank you.

Yeah. Look, I think having rewards programs on any dtoc site is a smart strategy for a DTC brand because you're able to engage with those consumers that are loyal and coming back to purchase and engage with your Brands and those are really the customers that we highly value. And so as we continue to grow that program, we'll continue to evolve and engage with those consumers and and they're certainly the the most valuable to us. And, and that first party data and being able to understand their preferences, is something that we're really focused on. Yeah, look, I I'd like to add to that as well. Um, both free and helpful. I think where we're, we're particularly excited is, is the engagement uh, with our our subscription signups on both platforms? Well, we haven't specifically pointed out what that, uh, what that growth is. We're we're very encouraged with, uh, with the consumer adoption around our subscription service.

Great. That's it. For me. Congrats on the quarter again. I'll jump back in the queue.

Thanks Nick.

The last question comes from Gerald, pascarelli from Newtown, your line is open.

Great. Thank you very much, uh, for taking the questions. Um, just on Modern oral. Obviously, it's another very strong quarter. Another very strong guidance, raise here. Um, but the guidance does imply that the trends that that the revenue will slow I think to like mid single digit growth sequentially if if you use the midpoint of the updated guidance here. So if you could maybe just talk about some of the Dynamics, um was it was there a potential pull forward in in Revenue in 3 Q? Um, or, you know, is it fair to assume that there may be a certain degree of conservatism um embedded in a new outlook just giving some of the category Dynamics. So many color, there would be helpful. Thanks. Yeah, Gerald great question, thank you. Uh thank you for asking look. I think the uh while we're excited about sort of the, the guidance increase, I think the area that uh, that that we would point out is as we go out and and we, we get on shelf and and we negotiate

Those deals to get on shelf.

Uh, that comes at at the expense of Contra Revenue.

And so I think in the out quarters, what you could expect from us is, is really to talk a little bit of the differential between our gross sales and net sales because of that Dynamic of, of Contra Revenue. But that's really the area that, uh, you know, that that speaks to your question.

Got it. Thank you. Um, my my next 1's on uh, growth margin for for stoers specifically. Um, historically a segment with with growth margin that that ranged in in the high 50s or in the mid-50s to the high 50s and over the past 2 quarters. Now you're above 60, which comes seemingly with negative, mix shift, uh, from higher Revenue growth in your modern oral portfolio. Uh, so, if you could just help us bridge, what's driving this really strong margin, um, have have to have the margin profiles on both free and Alp come up. Maybe relative to their to where they were a few months ago as you uh, you know, continue to scale the brands. Um, and I guess just like along with the way event, like, asking like, what's driving the the 60% plus margin in stokers?

Yeah. Um, thanks for the question. So what's, what's driving the the the the higher margins in the segment is?

Is really mix. And what we're seeing is that we have a higher, um, D to C in the modern oral, um, part of that business. And I think the thing that's important, uh, to keep in mind is that our, our freight expense is actually an sgna and not in cost of goods. And so, when you look at it, um, when you include the sgna portion of that Freight, that's attributable, you will see some some compression on the margins at at the Eva line. But that's that's part of the driver. The other part of the driver, um, is tariffs on a go forward basis. We would expect to have more of an impact um on tariffs. So as I think about the short term over the next couple of quarters, I would expect to see those margins come down just a bit due to margins. Uh but also we'll still have a higher mix of of D Toc which, which should should all be. But I'd expect net net, um, for those margins that come down just a bit.

If you could just maybe provide, I don't know, your your near-term outlook on the category. Um, what you expect from, uh, the promotional environment. And, and whether or not you expect it to maybe become a little more rational, in 2026, uh, than it is currently. Uh, we just love your thoughts there. Thank you. Yeah. Well, I appreciate the question, look, you've got, uh, you've got 3, um, well-run. Well, financed, uh, companies with, with incredibly strong, balance sheets. Um, and they really this category is sort of is an area that they have to win in, right? And so I think that with that as the backdrop um you know as as they you know, as they all fight for for the consumer, I would anticipate that that the promotional environment would be would remain healthy um you know, driven by driven by the the large competitors and the category

And from our standpoint, you know, we're really focused in on, on building brand building the connection with the consumer. Um, both with our, our free and Alpha Properties, and being really mindful of, of how we spend against the funnel, um, and opening up for consumers, we certainly, you know, don't have the same types of resources that, uh, that the large companies do. Um, but we believe that we're our balance sheet for our size, is it puts us in a really good position to sort of strike in the areas that that make sense for Our Brands. And so we're excited about the promotional activity from the standpoint of the growth of the category. This this is the way.

The category gets to, you know, 10 billion or North by the end of the decade is, is by the conversion of cigarette, consumers into modern oral and and there's no better companies to do that than the folks that own those, those cigarette brands. So, I remain bullish on the category. I'm particularly bullish on the large manufacturers, you know, converting consumers into, uh, modern oral. And, and I'm particularly excited about our Brands and the properties of Our Brands relative to the, to the, the variety of nicotine, strengths, the flavors, as well as the mouth feel. I think that that when we have a, a consumer that tries, our product, we have a really good shot at, uh, converting that consumer and so I, I don't anticipate that the, the landscape will will lighten up anytime soon, from a promotional standpoint. It's been going on for, for over a year now. There has been, uh, some large, uh, company in the space that has been on promotion at some point in time, uh, for for well, over a year now. And so, you know, I don't, I don't think it's going to change anytime soon.

From that standpoint. But we we're, we're just bullish and excited about our opportunity. Um, you know, to to win consumers because of uh, because of our brand as well as the uh, as well as the features and benefits of the product.

And that concludes our Q&A session. I will now turn the call over to Graham party for closing remarks.

Thank you so much everybody for joining the call this quarter. Um, certainly really excited about, uh, about our, our Q3 results and, uh, really excited to, to talk to you, uh, you know, as we've been around, uh, to uh, 2026. So thank you so much for taking the time and we'll talk to you all in a few months.

Ladies and gentlemen.

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