Bowflex (BFXXQ) 10 Aug 222023 Q1 Earnings call transcript

Good afternoon, and welcome to the Nautilus, Inc.

First Quarter 2023 Earnings Results Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note that this event is being recorded. to conference like Mills, to now ICR. would turn over the John I go Please ahead.

Good XX Welcome Officer. will Participants replay afternoon, XXXX you. Aina webcast Jim Thank Great. everyone. and Officer; Executive this days. ended today Nautilus the and XXth for call Barr, call being Chief first Chief to for June, conference note, the be call. Financial available on Konold, from next are Please quarter fiscal Nautilus’ is

take your prepared to at the We the happy will questions conclusion of remarks. be

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demonstrating is comparing believe to we in As and pre-pandemic the period progress. helpful our last growth

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available to of of them. therefore, are forward-looking forward-looking to can I’d everyone and presentation the you by Investors this conference guarantees statements place should and undue as based on information the us and These one reliance currently management Such statements. are performance, of forward-looking beliefs today. now future during website will not that If on statements certain on not and page like management our clicking going make Events access the remind on the Webcast. to Nautilus call,

ability uncertainties are control and will beyond results actual trends, by and known factors that risks, predict. be and our Our unknown to affected

our our to call concerning information on Mr. can filings, Nautilus' which Investor And Jim to Barr. is my turn found SEC harbor For the with over to to and pleasure Relations it please in safe section the website. that, these be refer statement the additional factors, CEO,

our financial John, results and conditions joining in Thank face you of quarter and transformative the the fiscal for guidance our even team's better perseverance all soft of than achieved our am with end high and proud the pleased macroeconomic progress first the our you, during revenue for grit we our our EBITDA with challenging strategy. thank and and I'm results, us. I Starting first of long-term was on expected, quarter. seasonally

EBITDA reiterating increasing demand Given color and results our sheet, year understanding guidance. provide we the our of in and XXXX growth the and our on fiscal are our adjusted Aina post-pandemic will half and strength of operating continue member balance guidance shortly. additional revenue, capabilities, consumer back expect JRNY EBITDA positive of full financial to our

and in strength cardio brands, price wide and omnichannel drivers were choice cost first of model, well-known points both control Our offerings, results. important our tight of go-to-market quarter

Day, Our XXXX. responded in XX% up consumer was our in Father's Mother's that encouraged Memorial offers holiday same sector's macro to compared the the period low we Day direct the to and even Despite were and Day. well segment season, consumer for weariness pre-pandemic fiscal

beginning slightly higher levels of retailers the excluding year. partnered driven to was heavy closely ordering QX, in fitness more inventory some with decline reorders positions promotional the As enter we goal to build down with and supported their all inventory down in season. some retailers generating work backlog, segment last actions same XXXX. This as generating reorders quarter early Octane growth, was expected, pre-pandemic by retail compared after fiscal to We

the chain. at our While last JRNY and the spot results, same on a delivering XXX,XXX during higher members year. first advanced optimizing long-term was cover our also examples growth call Total JRNY quarter. than advancements supply were expected strategy. membership we bright QX strong period I'll Two in X.XX, this XXX%

We have a adjust and structure our of permits agility long-term a cost navigate business to us for maintain that to hard but worked culture and to through design growth, short-term challenges.

such, current conditions. relatively we believe positioned well macro As in we the are

quarter equipment current they that having even fitness value. consumers results times product of they portfolio if a a the an buy getting year, off-peak in is advantage show are first two or Having diversified in will believe one only good versus Our this modalities environment.

$XXX at both this range highlight points our we total an We or cost more, priced of $XXX advertising price more and season. comparative choices competitors modalities consumers who and value deliver affordable outstanding on unlike per website. fitness year. Our Together, feature will digital attractively and charge platform proposition our in this an ownership. of give equipment digital our per some platform Similarly, wide year

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believe won't last We've actively Our than calendar and to more while down market managed us to are several last year. than pay XXXX. will lower made investments -- we hit chain beginning inventory incurring evident peak fees detention freight XXXX, moves even half year. second of fiscal We We negotiated give line inbound much margins lower us later still and the that be improve in sight demurrage are and in become our to in off, the of supply costs, gross higher the which year. rates

levels to that won't we also on house for year. storage We be renewing last locations elevated of inventory leases took

in our fall. benefit the supply the positively which sell Portland, for late are we once exiting renegotiated P&L cost hand. will inventory DC we we top our on the SKUs, planning, chain And the already of part through As

instituted Finally, cost marketing. have control brand pausing now for incremental we tight including

we costs possible, as of continuing in to sales. variable much vigilant match remain As will SG&A

to competitors than key weather For are some short-term these better we challenges. believe reasons, we positioned

of Through we out continue are quarter, leader for buoyed As about home to strong market fitness, opportunity. that whom evidence first home fitness fitness people see favoring to stay. long-term exercise important habits, at is worked XX% a in we home. post-pandemic our here Pre-pandemic, the are by

headed as have is and with sales we loyal. is a the of is believe home. work the Despite for XX%, years, enthusiastic In cross some new workout of pronounced two people to gym, over more becoming Consumers similar to working more for out home segment, close supports our the modalities Even channel consumer XX to the that we months. growth they've held it model which are trainers, for now and importance done home more hybrid last back adopted what our number building this XX% call steady levels direct to nearly them They data. fitness, multiple locations. even gyms are brand with pull-forward over in pre-pandemic possible compared at XX% further target

core scale the equipment digital will cost by provides our margins funds much and some our of cardio successful now them them customer more and combined consumer-led, JRNY. A tenet operating long-term and of strength what business, with are on of to asking membership believe bears listening improve color JRNY, of me digital elevate is which with for give the transformation Let their achieve you connectivity JRNY, being platform help leading equipment providing acquisitions the and being to the is our fueled we company. fitness consumers which to goals.

launch a one of transformation for highlight work would millions though line in with and platform embedded am of available I and making behind learning are our this positioned JRNY While to a we few growth. each wildly we the popular our the completed products. JRNY are running modality well believe I SelectTech and just and accomplishments. it these treads, Max and cardio, our to JRNY cardio work our differentiated must do, our like completed is key optimized and JRNY. connected we year Last experience, screen pleased own full be still of progress Trainers continue be to machines, we have to of who us. to bikes year, all We've launched digital

over increased over product we've result, in XXXX. two a XX% installed JRNY enabled units our to ago of one years fiscal only As from total a base little our

also on body a who to an JRNY all, We want use at to Your Bring want attractive option JRNY less equipment weight or spend Device, workouts. as such equipment offer Own any BYOD, little their without for those

library being poached continue the content variety including of personalized We at a the consumers' the entertainment become services to much suggests to ways grow, stream boring, different at offer advance rich feature set much, and work your while the ability and We for JRNY. workouts of and stay to that it a same just so that time continues does more. connected favorite routine you, out, fitness not longer, to they differentiated fitness

US playback recent over the for We important JRNY improvements. have enhance instrumentation, updates made with and quality better to improvements also air to capabilities

to we SelectTech JRNY of will Technologies in rep adding the offering, process Motion Way. coaching automatic vision which are from incorporate and Finally, the the and counting phone

in are alpha enhanced the consumers quarter. third get more expect differentiated highly and now to in testing We this and broadly to experience

JRNY feedback of modernize user include XX-month under JRNY and JRNY to Bowflex September to larger scale to trials helps the get and now JRNY advertising Bowflex continue users. in our count offering year JRNY late our last users We We number a up grow marketing to began brand. with and base most member We Bowflex brings the promotion. Bowflex in tagline from

will we able about XX-month to those be As paid, share churn. to more information begin trials meaningful converting

of For JRNY versus period to current XXX,XXX growth subscribers, now, growth members About as off, in year-over-year. will are churn of XX% The subscriber or This to last members enabling advancements main represents numbers. year. be are of which our grow JRNY embedded paying factor XX% represents XXX,XXX the us over the XXX% a X/XX/XX.

in Star also EBITDA move will This of We our responsible that on now long-term operators well the actions give back us of positive Aina believe keeping full our fiscal guidance. year. will of on over key first we for position us approach continue the I'll us of achieve Aina? strategy deliver quarter to XXXX. taken while guidance detail proud adjusted quarter the aspects to forward in we on challenging it who have We our are to results half moving our results good also North as a more year and first path transforming and environment face turn Nautilus. forward,

results more company afternoon, release to go guidance the our total call for speaking for to for good accompanying Today, the be year. our QX, and and this Jim, you, to Please view full reiterate Thank website slides information. we'll and I'll press everyone.

Let slide me the for results XXXX. QX X of start with P&L presentation,

results, year versus last growth overall and and Given last pre-pandemic when year last be will quarter XX% excluding year unique this XXXX, versus of year same our also first year's improvements XXXX more fiscal comparing XXXX results. were sales we compared versus fiscal nature the and to year's gauge the results the $XX up for in versus company Octane. sales down million, quarter normalized Net to XX%

$X level versus We from last segment during fiscal our to to the used of retail down is partners fiscal Importantly, through The to and by pandemic-driven QX still Gross is increased our when was decline XX by business direct decline of key year-over-year driven assist discounting partially selling Eight year. discounting. XXXX. XXXX. has points compared the year holidays profit the But to related and year gross fitness XX% and QX and to direct million demand. of margins compares level quarter last QX points drive as were grew of season, XX%, year was their same discounts tough supported year's moderated last inventory. strategically incremental

by points investments, eight journey to were logistics deleveraging of related the and these points points costs. to improvement of were offset in fixed three decline decline were Another other of costs. of partially related the Four

lines release Turning press expenses. see GAAP. next the have sales to sales. for reconciliation expenses Please we of The adjusted of versus non-cash to impairment of million or XX% this impact booked to a the XX% or $XX P&L been million Adjusted operating operating quarter. year's few remove of the $XX were our last

year, expenses by loss million R&D of journey from sales. $X Adjusted investments. with $XX guidance loss to In in $XX million. versus million driven both increases year, and was were was EBITDA by although million was lower deleverage decline of a was million of OpEx million. in minus journey and as versus driven $XX operating up expenses operating up down expenses $X marketing a million year. last $X areas advertising. than revenue, minus large last $XX XXXX, million, million $X better year. versus $XX loss ops $X were advertising Selling the Total rate they our million last lower were QX total million, was Versus G&A Given $X last continuing Adjusted

million, a up liquidity quarter about dumbbell. XX. quickly of height $XX consistent expectations, and million, adjust sheet $XX ended implement at stems our $XXX balance gives confidence liquidity, of and high a as remain debt and lower $XX million. of have variable X% structure $XX now the and more XXX our inventory was of ramp was million from that Inventory We is about Turning for inventory million we This best-selling reflecting June borrowing. revenue the $XXX was was we million, our strategy allowed line $XX pandemic, million, decision transit NPS and available were SelectTech our liquidity cost In of of structure include to with cost to versus our as products $X our comfortable about which to in in was XX% Cash down Nearly during fixed. is our the concentrated the seasonally to $XXX management is our AR the versus with the million and needed. like flexibility us payables us now with weights, impact our in million SKUs. quarter. semi inventory

now guidance to fiscal on Turning XXXX XX. slide

guidance the we are We reiterating last provided quarter.

We of year and second $XXX year XX% represent half full XX% the sales. to million, $XXX between and expect million expect between of and revenue full

for already start range lower key the as and taken lower the we've and so of than gross this year. to recovery the we we've year. negotiated cost our last and lower of obtained much half which second freight driven margins leases Lower expecting be locations XX% demurrage to margin won't that are last We in include plan by gross be in close one are in storage the spot at rates cost market new of lease actions detention of XX%, renewing logistics, Lower fees. to fall, rates to the inbound DCs rental some we of expect expiration

base. of lower top for last reduces we've will upcoming Additionally, the room discounts have negotiated lastly, our our to so position inventory competitive during while some And inventory fitness to cost pressure be year. better the lower costs season, incoming new SKUs guidance includes for a relative

sales with discipline we second half million. expect adjusted second higher in XXXX. for Given sales, we in cost gross EBITDA continue loss to negative align and improved margins and And adjusted our year expect costs positive between the fiscal line of to half, the $XX EBITDA continued full million variable $XX of negative

at JRNY we mark expect members year-end Lastly, $X.X to XXXX. the cross billion

over me Let turn for Jim now final comments. it to

All Thank XXXX. to you, Aina. am things with fiscal our start pleased considered, I

mindset proud to will the agility with I as We and in levels we monitor for retail navigate people any our continue the very through am to and react consumer of changes the and year. achieved beginning strength inventory in quarter. to second investments leverage have very flow margins are and positioned and we improving believe the all well of we platform, continue higher with our cash to all

our end for dedication So of up in like our now our tireless all of and it mission. their Operator? questions. me by to employees partners thanking open I'd for support let

first will Craig-Hallum. Instructions] session. We now question-and-answer Steve [Operator Dyer question comes Please go of the begin ahead. from The

afternoon, Jim and Good Thanks. Aina.

Steve. Hi,

your remain some what are inventory at you sense brother the or be trending the secondly, A And number questions you're of is obviously, product? as everybody if retail wanted that I couple or the Wondering the and channel? seeing equipment doors guess, the in relates But their or sell of you're channel. category then direction of that one COVID. another, wondering it may pretty exiting the during retailers if seeing in steady, is retail to to

Steve. question, Great Sure.

monitor and they we of have the It's not It's we it's any change, but just retailer, And dealing them, number even And sell-through, they're by by seen closely. doors. is levels through that in not the really and be problem. SKU not very normally right? we until It's steady going alone. do. that, been -- levels to We to just have like our is inventory only better their move we're reordering very we really manage inventory We with. then not also actively with manage as it problem leave them ways that

comes through them But saw That it it Obviously, But we're a through just positively. can said, slight move continue really promotional increase with that in so move continues in some backlog, consideration. some to we retail starting even So you here. inventory. we looks -- I how and and said, we a margins of it's that that. the these across quickly as to it seeing see really matters help seasonal. trend -- you're orders to our of And saw bit folks

So season. this momentum expect to as get to we closer we increase fit the

as and very to to additional to I communicate metrics, said That's going it. then going missed that? what how but was I And you it about Got helpful. had ask relates JRNY, churn you're about

Yes.

been of as guidance us, giving along. know, you where kind and for go As a more pun metrics intended, been we we've this and more journey has

last some of in to So we that metrics. once one, quarter that particular, started churn XX-month more began we last trials just The in turning start those will be into September we of We're year paid. more late with holding set those. meaningful

a we'll we're that a it's have that it that So now, of not so we continue is churn how the number. meaningful set reasons. then not really investors transparency you'll so meaningful, business see But Right to for doing. good providing provide metrics be expand into competitive

hearing to just I the Got I'm it. make sure want And verbiage right.

saying be for EBITDA year, second to second in one the you you of half, at the are some half will intending so the second positive? the totality in quarter, of you to EBITDA the it half, relates say point at As least are positive

Aina. Steve. Hi, It’s

second half positive. quarters so totality together, two EBITDA of adjusted the the the period, For second half,

I what That's thought. it. Got Okay.

turn I’ll over. Okay. you. it Thank

Steve. Thanks,

The Smith next from Street. Please of question ahead. go comes Lake Mark

Hey, guys.

environment Just deeper the quarter? a the retail aged And that wondering do you of kind your inventory? if kind and level in comfort can retail sales dig just into you've the promotional through with of during little kind you inventory at worked of like feel

Yes.

Our inventory been that in them, is permanent them have that overall, like we shift We working actively through. promotional inventory, that said, been that it managing still dollars habits we but I they so provide through move fitness we of with and to there have levels have believe help us. still a elevated

continue deal, Same And still the buying very honestly, even They through ran right? promotions, environment, We are they good people given, yet, this us. very, in would when most part. not when season equipment. thing in for they that, see use for they give the can't right? with Seeing demand, even sold be buying it a low the to that's a season it indoor really where you

actually that's good. been So quite

We have retailers. really close relationships with

hopefully really a to a result. because those question. well in any have very extremely retreating questions to that, not not As coordinated them. I doors retail very to undercut we're helpful in direct selling like answered the with don't good way. And we a we the things but your company, all said it's McGregor be if previously, be number strong, It's growth very anyway. coordinates that. channels see ran that when runs continue just retail know I an a he in go and and coordinate And got we also stopped, – with And follow-up I'll it and bit act the to J. through well. did monitor very you sale We right? we say, of and now that's you direct would when can omnichannel both So not we on also them

that's No, helpful.

look XX, few do product products, of I of maybe XX you be at talk tough look on might next at but about And see then and mix months? last new the in quarters? launches cycle as are forward, maybe development can that we your all the it you and the we new kind As the products product know how over competitively, R&D mix, new

take I'll start. second one. the Aina, you

gotten with the we base talked journey bigger. for about has So I'll start – installed that

that showing screens. new attracted like embedded that's you journey. the to that products are we've products people the launched, to are connectable with the starting So that newer They

So more of that. our to units sold shifting are

I'll talk give to the back that's about And product. to So Jim future it newer new products. then

Sure.

the competitive announcing strength reasons. some in also half focus not cardio just as are well. our for to We're have rollouts side. We the any shifting We to do product yet expect back on

really you be strength sure, with dumbbells, to offering a using that form For mentioned will use that's cool really experience out, rep I BYOD a the someone you'll one with that be I see else's think and good well. Way will But going as dumbbells coaching. could and differentiated be counting our

for we're to going be us for others now save And big a that's this later driver our think to year. I announcements going a date.

is in me just of for question last The kind modeling Okay. question.

look at enter advertising expense, outlook key the As What's quarter. there, selling of the obviously, of kind kind your we and during we especially down marketing as season? selling

What do to best with ROI. is we our want spend concentrate the

QX, seasonal and we going that we to a revenues half, showed back be XX% that in the expectation down advertising. to selling in XX%, with marketing Most for of our support so So knew because quarter. want we went low to expenses it's

Thank Okay. you.

you. Thank

question [Operator comes Michael ahead. of go Schwartz Truist. from next Instructions] Please The

first for guys, Maybe question Hey good Aina. afternoon.

drag pretty months side, so. freight rates significant or that the costs a XX headwind. been have in a was for big freight And know input past we paying the Just spot obviously, then

in I to to magnitude I hear paying but way the to about think two, of that you right? then any improvement your you on year-over-year, I guess, in you there in first, maybe remarks, XXXX? improve the guidance? what prepared back that were basis be expect year-over-year did a said And is quite embedded think that not

Okay.

to are what's in costs. now input half to by On after driving year-over-year of At an there's to some from drive rates team, what opportunity chain in go further gross of our is they'll supply lot that's where not our reduction back these go XX% down, XX% but basis, to margin XXXX least a a are, going driven negotiated back So, it yes, that it's we it. the rate not levels. if to improvement

talking to higher equipment. touching Okay. Jim, and Got environment. the small promotions. quarter you. positive But level that I then that the And of sales And very to you're that that fitness retail consumers view does at you term? just know to maybe said -- on your you need near about leave think, will get promote reacting believe thinking a for around demand you But response? a consumer guess to I frame it's I consumer

Yes.

and to will you to it's it's As that. retailers' said, call kind of -- early listen earlier. calls, tough they're promotions retail I all mean listen if you to other start you if saying

Black hear of remember. starting example, early in Friday the for You any October, that's earliest us

to when manage a that be. get it's we relative And the promotion. you strong have chain supply that These And and possible promotion things quite tough guidance. here, margins have where we built -- our in have that then to want in that into that we to sight. Again, our of numbers have are built that's -- it line take some to So some some really them macro are line have those actively is we converting will closer we driven tell to positive we things back there.

have back into of -- have little there. little have our built we assumptions. a half tension you And But probably a so we bit promotion

just then may. final And helpful. That's Okay. question, if I a

any or seeing Just the the or your the right you side Can third-party now? credit -- provide any consumer partners. trends into on maybe the you're of lending with the maybe credit insight health

own several is have for partner of the what's And Synchrony. not third-party cards, lot really their happening consumers is our a as quarters credit taking with So last paying been been just of in anything financing given what advantage options we've haven't that the said, several seen saw different than was quarters. previous in quarter we in that we that That the the so them. much ended

Okay.

Great. Okay. Thanks

Thanks, Michael.

Wellum comes Our Please Roth next Partners. from question go Capital ahead. of JP

those you half quarter that, and channel still kind and the you're if year, thank direct for confidence in the quarter giving what's Is reiterated another one of and seeing that as the conversations split can the revenue the the consumers higher what year Could guidance, numbers? just Hi, can from please? talk could maybe of to, we of the question. just meet talk it in we maybe If kind taking you another this quarter back you given retailers? with Is kind -- team you taking? what to it on steps are of guys.

to start and That's about with SG&A. Aina I'll and the ask cost Maybe and line, a talk our I'll top fantastic margins question.

still So kind fitness fitness relative fitness connected in pre-pandemic. general, opportunity home first, we of see this in long-term and that's elevated to

we're long-term So hit But we that we see out did that, is do good promotion a the deal in of fitness and more and were we a hope what to have back as that that parts really, when half a season. to that than trend selling, we on we find good able move product.

off even -- season. that, is again, and So

see the did to of unless seasonality So a radically into the backlog. increased retail fitness season. normal that changes We consider going you see would something expect you bit that

set in of So that value-driven which And look a how is It's we sell and encouraging. positive we relative means -- we're good then, up. to first, And getting we how some up sign. durable start a set good we a to we with are kind already, sign, a relative orders good are are competition, at, economy, just look our well-known price -- then, and we cardio for. you get of together. then the assume when brands. strength known We're what value. total that we've of of experience you credit a cost digital ownership the when for lot experience range at products advantage a And wide physical points. we finally, and at have got That's And various

So look that. consumers do at

did is talking. second inventory. inventory. so we'll bit a time us seen them little to And -- some of to in really be move still the I we've well, considerably mentioned that I we're encouraging. half. decent of going that, far, retail we kind a the that those -- mention this that encouraging little And it better is began are things will that next able -- be segment, to a we're But And read as what lead to a to so, believe things. helping we And bit move

So you Aina, hit the cost. maybe

about And the the Like, talked feel confident from line bottom it Jim year. system comes line to versus in three the cost when last guidance top because guidance. of we we've things. our reiteration of then, the So, guidance, removed

versus call tight in that moving continue make prepared the to repeating So we control dollars costs commodity SKUs we mean, deliver pretty FX with costs lower showed out negotiated going we guidance last specific to though costs, in, the our we're are as line line those in QX. going we'll are high-performing and line, we the cost, the not cost of sure, and way bringing then cost. actual Then can the prices cost keep that bottom confident make I top line. that product remarks, sure and We're year. we've financial the is them revenue in feel exhibiting we we're wide, top And even

Thank anything helping about it just the has you. of drive and you activity thinking the kind question you the Does pricing touched for how in all differently general? your there of some just of kind quarter And in the discounting. sales. about Great. really going discounting at then, prices much last offerings? on payback of promotional baseline nature kind on forward, have the will but be might of But know -- on I

Sure. did I'll just key on that we everyone items fairly recently. some increases price remind take

of build there. to And costs inflation of kind on input so, we in did the impacts try

those. raise we So did

when for I quarter, a saw fourth promotions, with it the When had we the was quarter of changed it year. is terms fourth you a the think -- discount episodic, to this matter. between environment like, bit, thing first -- of seem was those hit last lot price, to really whole to the the In holidays. we forth retailers, between around and price regular And we and holidays regular all quarter, same discount back where go it

So of would we learned add? about Aina, well. sort that anything we -- as you

just QX in QX, better. I No, of to discounting is level and want QX that reiterate versus sequentially the

the them it can in So -- what about. you numbers just see talking Jim's

if we competitors need guidance. macro where We point have use where we'll to continue we'll that promote And in our see flexibility our and is, to. that is, where And and the to are. environment do

have cost probably on and many we also some also supply prices. chain, We line of while the components have have commodity sight -- we hope, of of

So isn't we've of the our far, but there way. on decisive hope Most supply are taken going is prices way. going our chain. in very strategy elements our of are actions hope, steel top FX some

Thank but I but And rolling to just quick one you. may are on touch then to positive, want subscriber on there? on still the anything side, relative you pertains one touch trials, kind you journey, off and last Great. it yet not to it XX-month of your expectations some know negative. as to paying want the we of

first most of September, the it is No, pace. Because see to work started into the us, those it's there. subscribers. on XX-month after so go we you'll really, plan a those of trials turn paid and late And ahead people of right? have we And them

to start see quarters. of next the You'll kind of couple this over

thought it I about be a we see and we'll would exactly planned. have able to think But much more. how lot pretty

funnel, the a even of top on low a really members. to added in be quarter, continue very I We few seasonal quite mean

that's couple further a more track funnel, then start So quarters. bit in next of to the the down on see we'll and

Perfect. Really appreciate it.

Sure. Good questions.

This question-and-answer closing to concludes I'd the back remarks. to turn Barr, for over session. our like Jim conference

call on forward everyone Nautilus. second for to Thank Have to earnings and the look on you fiscal your XXXX onwards talking year a support with November. of you We in of rest great call your day, upwards. our continued today again quarter

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

now may disconnect. You