Cracker Barrel Old Country Store (CBRL) 23 Nov 212022 Q1 Earnings call transcript

Good day, and welcome to the Cracker Barrel Fiscal 2022 First Quarter Earnings Call. All participants will be in a listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I would now like to turn the conference over to Jessica Haze, Head of Investor Relations. ahead. go Please

In morning measures fiscal Good we to Barrel's October refer quarter Cracker a this XXXX. and Thank we XX, the call, conference and first call quarter will results. first our XXXX, release non-GAAP morning, press and first release, press on finance you. to announcing welcome this for webcast. issued ended This quarter

a information performance. gains asset earnings believes on impacts. is to company's quarter sale This from exclude are substitute the press enhanced in recognized be the non-GAAP prepared from finance the not of net information amortization information The considered items interested reconciliations first transactions the include financials. The leaseback income with the its adjusted with the the pages our per of tax to and non-GAAP last provides or to GAAP. and or excluding financial non-cash release The share finance intended related for accordance investors results of from as in measures the isolation GAAP these company

call Senior the Interim of President me On Jen CMO, Doug Barrel outlook. are will President business, with Tate. the CFO, Doug Vice and and Vice Couvillion, Senior and the and and Sandy financials CEO, Sandy this President and review review Cracker begin with Cochran, morning a will

and cause in are statements press up with, of from in call, open for materially known These Company's reports which Doug and summarized are of the many information. management's questions or furnish or operating the release SEC. Many affect call cautionary described are forward-looking expected then beliefs in and the be that certainties the risks factors and statements we to and of listeners beyond statements, forward-looking may our future end control, description the future cases detail this will results made at Jen. to, considering may found regarding file the results risks We expectations. involve expectations that We for are their could the in of actual On readers as uncertainties the our management Sandy, in and and caution differ and events. that results by

Finally, President this as company applicable under I and update undertakes call the now on over required information today's be and it, will shared Cochran. Sandy date valid obligation as of call Sandy. CEO, is Cracker turn no Barrel's may the to the except to law.

sales to This of XXXX. Jessica recovery with you, sales morning, restore the variant the and X.X% of the the in announced this store during driving quarter good made Thank our of first We compared accomplish headwinds teams comparable we to sales the we growth difficult recovery. staffing fiscal everyone. environment spite fiscal our the morning played work we and significant in pleased improvements faced of our believe began quarter first year. from we levels staffing to a as Delta role I'm

we opened place QX. Pleased feel call year-over-year staffing for we average of share anticipate our orientation Kitchen the the Our onboarding expanded shortly. and saw brand, volumes pockets We reduces while dine-in locations quarter, our of appropriate launched challenges of brand even Pancake second further quarter. Ghost understaffing, we and decline a no to to and hours during to location, ever in total. by The the XXX off the to new we have to more that volumes approximately have training us first virtual we for our off COVID confident Kitchen that almost quarter as holiday efforts virtual the Chicken new an and speak X,XXX outs In by process a Biscuits and week last helped premise with of which virtual first elevated recovered, hire still including channels in to recruitment related some continued Cracker per that than employees Cracker explore for program we sales, growth we streamlines And handle and we our premise week all Barrel expansion I'll Barrel, business.

first their First to sales XXXX. over quarter XX.X% strong comparable retail up sales pre-COVID maintained levels, compared with growth store retail of the quarter

décor. to strength and food categories, home We everyday see particularly toys, continue from

themes Christmas double to date, themes growth solid Additionally over digit with fiscal some our year, and guests have despite headwinds holiday this resonated are strongly shipping delays. our XXXX delivering from

supply exceeded successfully at which unit an an contracted Sundays. have includes week. building and They than long-term take a year, for remainder chain ongoing real details will more while beyond financial job navigating everyday strong economics up the challenges, thinking has team openings, opens for first new given run through our you expectations. maintained on the our for seasonal the forward, to support current are job were leaning this year which our quarter brand. into about Street potential benefit within pre-COVID its rates impact unit timelines ordering estate excellent managing we retail pipeline brand majority first sales brought and retail the of growth open of the Average sea levels, assortments pushing have Doug, excellent A the we the for the that shipping sales merchandise XX guests quarter. and fiscal by additional during providing optimistic provide units this new a outlook. next Our I'm and during XX% strong performance unique the of of and done in the done quarter. the to hope being of the and to delays, of Maple open experience. on of teams weekly containers our with appealing By compared strong of

strategic typically initiatives. offerings I'd the forward holiday to with Cracker traditional has and our Cracker holiday friends. Many key deep Before as few like our especially, second quarter. of a family guests during the you a brand with year look little more a stores higher run quarter our detail you on are and celebrations the he Barrel’s with season, progress season, know gatherings more volumes and connection holiday share they a does, expectations to Barrel believe unique This second I complete embracing to on

impressive demand that eight While the traditional pre-COVID Thanksgiving we through expect guests to key QX our that Heat the our dine-in will have now offerings, option additional We've levels. year. our dinner, week the recent optimistic remain to fiscal have of considering will pre-orders guests seen XX sales in Serve We're largest as this family for Not trends quarter, and pre-COVID our four of smaller the the guests. in traffic our serves Heat second sales Serve off to is Feast six driver high off-premise improvements Thanksgiving a our below but retail compared continue the week which of is premise remained only n' n' levels, typically strong our from holidays. restaurant serves

cannot levels. fully that next will few pre-pandemic like behavior predict we week strong consumer exceed expect should the dine-in what days, a While sales look we Thanksgiving over the

this challenging, deliver on entire I'm While will confident mission people our stores the pleasing of holiday our environment that season. operating remains

with in brands to the initiatives about expansion Kitchen we Looking the sales to our of strategic our have virtual growth spoke that longer deliver and I earlier. Ghost term, the launch place of remain That strengthen business and I excited our starts model.

well seen Our Barrel Los Kitchen in Barrel as long additional the Barrel about Barrel plan the our response term, version We've near as Angeles favorites, opened end also our expanded future Ghost biscuits as the stores. bring traditional of to far. additional Kitchen pancake an into areas. the in guests home of streamlined of we positive urban very the offerings. of this meaningful style be so Cracker in potential us. sales revenue Angeles virtual a added layer Kitchen existing driver locations We've Cracker for I'm of rollout The offers concept, believe food brands to format excited And to can and open Ghost and and Cracker menu Los October. kitchen Cracker a at Kitchen the chicken

and us demand this second We in delivery virtual launched Pancake brand, the last unmet in via geographies. promising. the for sales breakfast party offerings helps are believe many week quarter initial of third Our brand address Kitchen, the results

optimistic the kitchen excess sales leverage remain potential during the day to brand capacity otherwise Barrel chicken us helps we which for and Additionally, restaurant. about brand, to the not who parts visit and users Cracker underutilized of biscuits a might additional target

of one anniversary year the launch the digital of also store. first our The quarter marked

X.X million registered integrated million As In new a its a user existence, a the sessions digital store restaurant and first digital of year retail catering this reminder, XX platform over experience. convenient into handled was and over offerings unified that orders. and

to through our business, online dining enhances experience such features addition it premise the growth the In and in waitlist supporting as guest mobile pay. off

a for through program. website have platform us marketing, investments digital a and loyalty build and Our the of personalization digital to including relationships guests text app, with our our and SMS introduction e-mail created direct

shift which our positive audiences. better allows media channels, the results target us seen we've digital from Additionally, paid our in to messaging towards specific to

these ways expect we shift find to advertising continue dollars to We as digital our channels new capabilities. more to leverage to expanding

to an update like on I'd provide team. Lastly, leadership our

and to French over roles next restaurant new of Craig growth our and Red XX with record model Chief of announced Senior and be a Red month. a ways of industry, most in President post-COVID decade. recently as years served CFO over financial we drive to previously strategic Vice President continue Lobster as five Lobster. track Darden explore team we our in starting Vice in to analytics the us asset as Officer will data great brings sales Senior financial strengthen joining will for served business be and and As planning Craig him leadership world. for a our to experience various Pommells at leadership years Financial that, Fred at Prior as

thank I Doug, for the him turn company, the outstanding year. over last call the to over to I contributions his to particularly want Before

the to Doug. supply his over extraordinarily as leadership as XX himself Barrel of turn veteran, wonderful familiarize year he'll time to company Cracker sourcing a of chain our been the you. team call interim organization with you, his Cracker to it's Doug's and remain with Thank valuable that, Barrel people. helpful as a CFO senior During vice helped Craig he an and a and as our and continues part I'll us senior president and an And responsibility partner me.

Thank morning, you, good everyone. Sandy, and

of first we revenue total million. the For quarter, reported $XXX.X

versus Our XX.X% restaurant year million, million revenue retail XX.X% first increased to $XXX.X prior to the quarter. $XXX.X revenue increased our and

our most sequentially our a improved strongest recent first performance XXXX, indication Here comparable clean We're of month to quarter part, sales providing fiscal better store sales to week. each comparable than to which X.X%. sales growth quarter comparisons. increased of particularly be prior fiscal full year continued back provides growth our XXXX, breakfast fiscal restaurant of the sales year, day the the Restaurant and during results

recovery in we We levels. also improvements during the weekend to saw believe to lunch breakfast which staffing significant due is primarily quarter, day and our the the parts

off store had off XXX% sales quarter the or either of operating More premise capacity of up retained all comparable of off with premise premise when impressively we sales number XXXX. significant we from only Our restrictions. our were to a fiscal large almost stores compared first year last

XX.X% first delivery Our which above modest were quarter Comparable our channel. the the quarter, XXXX. individual delivered increased offset during expectations in in third decline growth sales the to our and again year-over-year channel retail party store to-go over strong helped

While our disruption and shops. everyday chain leaning has of volatile, excellent on remains to inventory the our assortment job managing supply our the an to retail retail minimize team done environment

expenses. to on Moving

levels XX.X% XX% in prior XX.X% year this Our lower mixed increases our of was basis pork, of was drove beef sales, the through during goods goods have versus by prior total total restaurant quarter. of costs and above quarter. revenue year in which Retail historically. of the of favorability impact markdowns of we quarter. cost to quarter. quarter than restaurant versus A the oil driven sell as the versus Significant XX.X% sold of sold primarily sold This year was cost expectations, inflation commodity XX.X% through XXX sales inflation was in continue cost and largely price which goods full pricing prior decrease at higher X.X%, in was inventory in the the point XX.X% X.X% offset we at of retail

XX.X% were and from quarter. First quarter labor expenses versus related revenue prior-year of XX% the

overtime by a increased for replacements sales the result supply spent levels in staffing maintenance partially capital XXX a Our labor use. leverage equipment pressured manager were primarily first driven prior-year pressures throughout lower result weren't primarily issues, the These factors, we business including were on more by XX% and property offset inflation somewhat elevated pandemic. quarter. lower supplies costs This throughout quarter as well of came third-party was XX.X% basis a our able expectations, as point were other with mix chain repairs growth in basis and expenditures operating secure that constant favorability reduced as expense, for which related by on of fees to depreciation as and the leverage, incentive due the inflation. a as sales of and by offset X.X%, expenses above decrease we due This wage revenue as Adjusted expenses to of was as to increase well and higher of compensation. number versus increased our

significant operating to elevated business second impact as in associated costs our outside due the well We n' a expect on Serve offerings. Heat expense to to last our be other with our addition this quarter factor off-premise

Next level moving beyond store margins.

we large and the by million, Our quarter recruitment driven million. in convertible quarter $XX.X increase by managers interest Net were staffing and $X.X This compared the a training million to in due and $X.X rate in as year offering expense. million expenses $XX.X in as lower support for related is debt expenses part home levels well a interest as This lower the debt to which the including as general decrease fourth first G&A well unfavorable and completed increases higher was quarter result to the travel first is average of the administrative quarter. prior-year office expense adjusted weighted to prior quarter. is $X.X million,

an quarter rate was Our quarter. first of effective compared effective XX.X% tax to rate the in for XX.X% year the tax prior

$X.XX over sale reminder, a the and leaseback year quarter. leaseback a took in quarter diluted earnings was adjusted asset the transaction result tax culminated adjusted of a and first non-cash prior taxes when and the $X.XX elevated adjusting per quarter credits adjusted of year our As on $XX.X the fourth EBITDA per from first the place a million, gains recognized in sale during the transactions. These of prior was quarter, share a earnings GAAP rate first tax as EBITDA increase diluted results. our reduction amortization In of for prior share that a on results year XX.X% the

total sheet, we quarter million Turning year. with $XXX compared at to the first debt, of our in to the $XXX balance fiscal last million the ended end quarter of

position and earnings, and sheet the our and this despite $X.XX outlook, Our a lower in release strong of the filed as and respect reflects pre-pandemic invest today's to shareholders. to our risks but environment. and the are announce our XXXX balance returning described us which cash level, a of we everyone associated the uncertainties while matches business dividend should confidence With this a per to we be in reports regard, progress continue pleased challenging base puts business business quarterly earnings of In to on of as flow in to dividend capital with SEC. fiscal through XXXX outlook, the our mindful uncertain share, with

single Street locations. constant and year digits. for now new uncertainty the capital inflation continued Continue in the new and expect we expectations. Barrel million, current around to including to and the providing in only will first year mixed XX environment, commodity our the year exceeded three be wage Cracker of we inflation Biscuit the $XXX our the expenditures inflationary expectations wage full quarter, full following Both and Company inflation opening Maple Given commodity high updates expect full locations

delay second compared trends, of the disruptions, equipment improve are of unit to could we quarter. these new which expenditures the delivery optimistic comparable the expect first versus We of capital and supply XXXX chain continue timelines. development and November sales tax rate believe subject remainder our store results growth effective on now we're quarter, through sales an restaurant approximately Based Our to will XX%. that sales fiscal the will

revenue. higher expect Turning commodity X% in to expectation expense inflation impact operating second to significant operating we our of more approximately includes and to of call the business quarter, all expectations, with margin turn be to premise as as currently second operator the well other with margin This quarter X.X% will wage, the compared first adjusted and expenses over quarter questions. that I the quarter the occasion to second associated the for

Please [Operator go ahead. question Instructions] first Our Capital. Loop Stump Alton from with comes

my Great question. take and good to morning

the in of be digit or I be single just is quarters as XQ Marty three is that difficult. very unprecedented to should know this than basis would going kind be Just and it's far but Quarter by environment, predict through can color number range any high provide specifically that wanted that that in as ask full next to in color any helpful? quarter over higher very think similar you a to you year

is higher the to when from difficult consistent this relatively be the correct quarter. and think perspective I what we’re the the commodity first see Alton I isn’t at to will the I say we guidance there elements be wage the predict compared of you’re inflation quarter-to-quarter inflation would to that with we certainly that looking half from slightly a gave in look that at stable it second half as

were staffed you here most able you you with kind the part for know walk and are to to Okay first the think that has know properly quarter. have peers properly like factors stores key quarter, in what course able you there can your great Dough the recent to I’ll queue, been which[indiscernible] that, hop in to you job the most front thanks and good of staff why back are a seem obviously your of through guys done follow-up as just just many then we one (XX:XX:XX) certainly you keep to certainly not

turn industry HR different employees, I focused teams I we and have kind a been has I ones programs they addressing dealing our Sandy, to tactics done certainly to very first tried that of our job will field have think Well, of they've teams of the in retaining will on the think been concerns not and everyone but this new all sorts also our -- that I but staffing of and with, all have. to just recruit phenomenal

remarks. we commented So, the prepared in

example the employee, of day orientation later it the if quickly to hire I us program their of come day an do roll place And can really they that think make almost. the into has work is an orientation chain. choice got that place of on ready this able new a for that next an really out we've the restaurant program a lot put workers. we where potential then virtual really helped and that into own and to been I through to employer recently think put whole And really to

sense. Great, Thank Doug. makes you, queue. in back I'll the hop Sandy,

Please comes with question Jake Bartlett ahead. next Our from Truist go Securities.

Hey. is give can the your driver environment, for staffing just pre-COVID I part and want staffing for sales be questions. taking more if do the you better actually a even follow staffed This around forward? to -- to some that more Thanks upside is if there if is maybe and currently of on the up see to, think any where going you against you’re you quickly Jack Jake. on metrics can

Yeah.

the the of mentioned, and completely made quarter, since we've the we've the back as we largely, we first gap house. progress course believe time the of I if over we not the significant last closed in So talked

in Grill where So we're we Cooks. are good feeling about really

leaders is sales that the just in and the we've those our improvements still certainly restaurants, our are across able think But country field house working servers, want are I a care recovery we're seen. to impacting that dine to It's into to I would going good the that'll been settles even the staffing the fill once we positioned be think know rooms with and about hire that of us. of we another meaningful busy we're the in we've to benefit to And take employees, how season, business. there with that the hard love that dining that where to to completely in part do can I feel more outs and covered and think guests of addition call that come think specifically pockets the we have, in front having more. that down the we of our achieve and

G&A helpful. That's margin how that with go then there Great. in about temporary anyway the training really still guess it about maybe that make more that room for margin or as year next that the can of to you and think lower I forward. second Is we the about of as some the second improve are it might move going than commodity And question guidance year for Great. we think anything levels. recruiting staff anything and how dine-in think throughout the my there or I kind you pressures model gave that that I mentioned the you there's ask like to to want But costs operating maybe sounds to in and quarter out. quarter sales rest

Jack. Yeah,

temporary. In the question terms of about

year bit the longer I hearing going guidance more and kind across you’ve start more fiscal monitor a the continue stick to the to we we’ll think I think and seen our as in XXXX, from will I through to thought what think kind little to situation, a we're we you have around pressure. were continue and I of that to but that's the little of get these Inflationary some you're of a we transitory. industry, the bit think earlier, until ago, see But months six pressures I visibility think three

you the mix we sales quarter, also remind to in that's of couple higher a start our you a the in of quarters time have other retail looking things at of second think period relative when of business when I a year.

quarter, on our all cost in pressure we've about really catering talked occasion And little So -- the puts is and pressure from our of cost that that and margins. in the also bit special us strong a third of business to goods. gives second business then a especially of the bit prior relative some years that of little

feast but and margins dollar large they deliver talked really have the margins. level lower meals with don't of that those percent our for We're deliver the Specifically, pleased about those we've margins. us, same

kind how a comparable couple are touch are of those in points see they we on of quarter where QX. the to developing So in second things and

Thanks. last That's helpful. one really And just then one.

mentioned price of about took recently of seeing. get offset that would X.X% year think price to costs these the but another the you to you kind You increase or you soon increase rest to in the up are elevated coming

Jen. Hey, it’s

our As impact that we and on continuing that or for on traffic think about we really seeing we far in worth we're our negative the monitor any have on that data price months with three-and-a-half took about so effects of aren't increase may had August, mix. guest to any traffic menu

consumer this know term. taken So, in than the price looking and to inflation now X%, little and you an years think near right still we're above softening while we've we of at that have increased increase power pricing just typical where bit was less sensitivity unprecedented the a we

take So, that, that will also X%. typical we be range in of QX another are increase above probably that planning to

So, in be price our normal QX. than will it higher increase

home everyday area it’s do dealing, scratch style, a strong over coupon, in and value food know still we at all of equity price. made lots a everyday that. We and thought LTO, had of we the really know years You quality value about the time. don't feel fair always of having okay you We've

got plenty of pricing in starting great still And every to so $X.XX, at at Lunch take think QX. day. a of room more great, we've offers we meals $X.XX, dinner we've lot so got features

Thank Great. you.

Bank question comes with of next Sara go Our from Please ahead. America. Senatore

had couple I questions I of may. if business digital a about you. Thank your

positive the new is going as just if you've off-premise maybe are on could if about you first the core the forward? and maybe The then I the could just Biscuits seeing you virtual you related think question between these a I the about is extent costs with the margins leverage to understand but guess As business, bit virtual overall over spare on brands, the volumes they go-forward how added capacity delivery, to there a net of thinking premise on launched a should the some recover, but Chicken well. XXX growth existing be should be growth between thinking the you profit - time? third-party is with and associated brand off brand. they core just where the, And restaurants with I aggregate a dollars the obviously and that net know idea But 'n to that growth should headwind about is growing. higher that margins you with just aggregate I said

So you - on give on me can just anything color Thanks. that.

Okay.

first in three this. there's food appeal be a we us you and a of a piece would business. may And brand, all the we'll was tell it, might virtual the intent guests So, stay all, be behind incremental for more. otherwise of be certain think coming shopping the guys which Sarah, got that of if to try to I I not you lot in of queue, brand, - who believe strategic address instead would question. understand And we into you a and a to who of restaurant, completely who don't, type

quarter, So rolled And targeting in the the that to we’re significantly just we're better delivering we think because - or in to terms want Biscuits the over was the of we're quarter we - it's out the - our we're but expectation, I in percentage Chicken learnings. store. so But profits the offerings of to a incremental really we it margin n’ value it again, the as ensure to are late getting and certainly XXX that stores think value. it's these now that XXX, don't a be

a had the In some tenders supply integration issues issues. bringing during of quarter were we was technology lot to as some It up. addition, them get we and chain hard chicken

as And of So the Once the can And the want it already additional can offer this the down, a channels. the that, execution say to it I and which pricing you pleased question. brands see and to I have we're marketing And why. have Yeah, love we that we whether Jen planned. think will desegregate. about I we'll don't this think got go. channels and and think to we to look market your how to strong we stores were way stores sales understood may add there's continue sure at those we've both on outset, that we're great to open except with but has some to clear got at think I'll I I open let, know

And don't to answer, know on you the why add so I don't do brands. didn't I what Jen, anything want

Yeah, I Biscuits only expanded weeks. and to into we're XXX, having just Sandy again said for by weeks that of and think Pancake XXX couple Barrel's well a the but Kitchen three the n’ about in it Cracker Chicken

our now So We optimizing right very focus very started be adding sort beverages. on we'll just a those and focus with streamlined of is menus, on with menu. smallest, the adding the items big

with Ghost seeing to stores excited just on looking at in Kitchen. maximize make sure also the add, from additional sales, about what virtual margin We're so a ever we're to lot we come to initial growth those, few really weeks Just our maximize first can the more brands.

have So out plans and in a area Los Angeles Ghost open a more. opened we've the to Kitchen couple

because more the for to cracker is incremental again a Ghost So gives areas and barrels urban chance we Los plans couple have in Los it where the like reach in Angeles area to that opened us guests no us nearby. Angeles open we’ve so the XXX% have Kitchen out

primarily well. business So see are, the those there. we'll apps type as do excited party what to can do guests where for where that's And marketing market channel so third that's some because that of through we'll us

Got answers. the you of two only of hit it. took all Thank to you. It

Levy Our go next question Partners. Please comes from Brett ahead. MKM with

Great. Thanks call. aren't Doug for I have supply so left out. questions, And some you entirely taking chain the worry, do don't

thanks. Okay,

you what we share know for there some more the cadence? I around week. if November guess sales of is the in could terms gave you're holiday seeing you can anything I start, language for

as locked year? bit but digital you you two just far were Thanks. goods with your ones more think and you into that? exit tech terms And for equipment-related And of in for And getting the just the also any contracted also November. right about a Maple on terms ones in-store. confident for and challenges investments share Do ask what's are the it seen chain, where just so basket? that three CDs talking you've supply Are are open your little could I'll what the incrementality in you velocity with of of you've the been in ways, also, for then then now now You how and XX in making software-related about, Not Streets the late? see ones you for running any then you issues? October's

me let Well, start Okay.

those with to questions yeah. are all You up keep there, trying

lot of …again, a impacts there.

parts I all all - - the the I've think I separate of got that, think Brett.

the up compared month quarter. would I place comment sequential thus far quarter, off, we throughout commented we we first So parts in November, in would across have pleased thought to the things first XXXX that quarter, versus the day and saw how be that of shaping the we a we first with better are been and during all improvement

good looking in far so QX. So

typical made with In of given in. we terms XX% have of about move the we We're year. locked of the fronts. and We've prices decisions see the XXXX. and appropriate as monitoring not XX% high the the take the In positions we for through markets conscious number XX% we'll of across around fiscal commodities commodities, year, a at this usually the point to balance of locked year, locked we're our

back delays In heard and - is and equipment. CIO some a into our bit And other in been been March, things sale that terms because the terms have and stores on kind a on so I we had development recently of up difficulty previous pretty confidence area we’re system haven’t timelines POS that cost which getting will food expense far point spending and our rollout, delivery to our of maintenance we as breaking think to good of been a we as of additions that to some the with we're for those in getting that schedule, little expense dependent we with to we're loose the equipment the little lead cost, commit to development complete to maintenance We XXX by talked chain installed, but schedules terms In that in chips well. we’ve have -- the of bit. the that front relating will flows feeling have and of and about we're have more Barrel components. kind from and think of seen having kind supply little will our relating Cracker interesting I approximately quarter, we challenges that our be the I'll that, suppliers then and faced our about. of Street have both us other And some - clearly the willing complete we - brands Maple the

are to So a of some their we've expectations timelines. of contractors different looking that. little And similarly, how been manage thinking to about our for in commitments bit with that terms

So that the over we quarters. of posted next keep feel pretty good about it couple as you we'll and develops

the you. Thank That cleans plate.

Okay. Good.

[Operator ahead. Our with Mullan Bank. go from Instructions] question Brian Please next Deutsche comes

dividends. Hi, thanks. for know, history balance the capital You this of about the talk special has just Can the company a in the and priorities beyond? you of year past, allocation

in also repurchased You've stock past. the

you stock you So favor the the wondering here as might today, forward? even you of might those sit price return move can reform over form uncertain perhaps shareholder you the And as or environment other? operating how one just the decisions if of discuss

Brian. Yeah,

units in about make new growth planned as the have our fund I our approach. the years, a for we We we've want Doug's So to to the technology that investments they initiatives, ensure board to about. existing assets thought talked that we've that continues or think take and first that that we both the take balanced

relative is which then have with that we said considered both company. think board, think announced strategy that we the by continues recovery continue we've the I believe repurchase a yield I about, the to recovery share as high to then are I and the those have reflects we both and think payout attractive the quarter, the had the board reflects that has confidence a both relative strategy to $X.XX brand dividend in of the strategy, the the share this to will ratio repurchase the talked dividend and and that and Doug dividend the at very we although a

Thank you.

This for Sandy concludes our question-and-answer session. I over would remarks. like of Cochran End to closing back any Q&A turn the to conference

the Well, further as thank plans our We and interest and joining season. performance all and to and all encouraged a start our industry in remain the to recover. wish appreciate to I'm strengthen continues support today. our you by for safe holiday confident year us your you happy

presentation. Thank you has today's concluded. attending now for The conference

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