Beyond (BYON) 28 Jul 222022 Q2 Earnings call transcript

Good day and thank you for standing by. Welcome to the Overstock.com, Incorporated Second Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there’ll be a question-and-answer session. [Operator Instructions] Please be advised that today’s conference is being recorded. to Hemnani, conference Head like speaker to now Lavesh today, of would turn over the your I Investor Relations. sir. ahead, go Please

Thank I’m And XXXX morning. Investor you, Overstock’s operator. quarter second Relations. welcome earnings Hemnani, Lavesh to call. Head of conference Good

on Jonathan CEO; Joining Lee, the and today call Adrianne are me Johnson, CFO.

of be are Nielsen, available call today’s Additionally, conducting Please Q&A. President remotely. Dave for Overstock will we note that

slide, Next please.

today, management’s July and discussion XXXX, Let me views responses your forward-looking as questions the of could from include remind may our reflect results differ XX, to and following Actual such you statements. materially statements.

presentation about today’s the Form impact to our XX-K webcast statements SEC. and slide review information our XX, financial our year accompanying that the in website Relations download. of posted in December forward-looking the ended included available important Investor X Additional could presentation. for XXXX, factors with results been is Slide filings has potentially and is our to disclosure on Please today’s A subsequent

this contain most slides and the measures reconciliations the accompanying these with financial measures. our GAAP regarding filings we’ll this SEC measures. The of discuss During additional non-GAAP measures, webcast disclosures to these including certain comparable important non-GAAP call,

link our please Q&A Finally, our to participate during the use available the Event Relations session, registration website. under Investor of section

Next slide, please.

me Johnson. call, we Jonathan call the turn over let X. Slide for to that, today, today’s During first with will follow on the And our speaker agenda

morning, good and Lavesh, you, Thank everyone.

difficult Let Overstock ninth quarter doing consecutive by a so, in me how our environment. achieving entire team of for start saying the particularly am I proud profitability, of in

macroeconomic to geopolitical in related pronounced continues reflected late become large QX today. volatility. to This Our part, weak consumer the started performance sentiment headwinds second through and in more weakness due and the quarter

of While many have We and geopolitical our control elements and a and business. record rates, macro control has inflation we and impact controlled events can gas sentiment competitor’s uncertainty the behavior. surrounding the increasing high prices, on interest environment cannot consumer of

stretched. fact, expensive times We highly model asset-light owned cost advantageous don’t to customers We of enterprise performance continue offer ability to profitable can varied have this quarters wallets operation with our sheet. profitability is are smart logistics high to to line straight our run significant do top business and a fixed as shareholders. during In Nine their for our balance on testament or is with inventory value like these. team’s our base a

our within were high recipe year, sheet, top XX% While margin is the line stay historic deliver last the I’m adjusted versus of able of to our structure that of we EBITDA that pleased not pleased to financial down revenue I’m card the navigate balance our We near lower equipped end strong during further cash increased the to position shareholders. instability. favorable through share with quarter, targets. a Overstock stated macro ongoing remains X.X%, showing a in of repurchases to commitment well

Since vastly in CEO slide. business late have conditions. XXXX, became we our I different Next macro operated under

not market. largely compared restricted range money pandemic During spend well, XXXX, operational the first the the performance homes which were XXXX, excess grown of today. had a into to realized plunged half In and XXXX, of record to benefits years, outpaced to to surged have we the penetration in recent this has on facts we’ve interest from to gained timeframe. The quarter XX%, second market last related XX% exert on on to share over focused have XX% consumers e-commerce the their and important each pre-XXXX world period, the Spend and to pressure rates compared believe I continued discretionary sentiment will the around items. In our home performances likely tracking Considering at is spending. XX services related Over performances year reflect XXXX, and moderated our with to goods inflation on implemented. purchases consumer is and on which rising in this fully did highs. normalized, these yet chart profitably. we the illustrates our improvements so Compared we slide two it’s

look grown you just our related home to for fact, QX In growth business, that versus we XX% at significant. our if were is XXXX, have

mobile is last retention active recognized peers Our in than was third-party data, are review the broader the comparable year pandemic our smaller assortment to although base, customer pre-pandemic and being tracking our Based product customers. on our levels change rate by in highs versus ahead of still and experience other category. we improved app

in our our I environment. Overstock adoption believe during Since mobile This I’m are We this A is on retail is assortment became my encouraged this progress commitment that increasing our more times. Canadian not I to these by focus our this by difficult difference strategic share. vision. includes revenue is team our shareholders. committed the brand CEO, unprecedented discipline home, with breadth profitability. long-term through association and financial important improve has the major team the made even alone for to opinion been navigating in delivering growing achieving and depth product and to growing of the

spend brand value with in we our the pillar quadrant market ample where white capture category. favorably, when space are looking us compete consumers smart unique demand in to to positions Our

Next slide.

corporate brief update events. on a for Now recent

we equity. of quarter, repurchased approximately $XX Year-to-date, second equity. $XX million repurchased of the we million approximately During have

Series our the opportunities. late June. simpler to We conversion by June. be stock We last into furniture We capital continue our XXX% conversion of in May, furnishings retailer have now repurchase in stock. our equity home categories this completed to transition and in A-X structure. a approved common both non-home completed exiting evaluating of opportunistic future shareholders B In our preferred Series the We and

shared past, this was strategic have choice. the in we a As

Overstock home. a we long-term, expect the Over from an of the association benefit increased brand with

data a our more financial resulted second customer home has value average customers. to While pain, more, results other this Adrianne in will review Adrianne? now has some detail. frequently order that continues and quarter support in our spends short-term higher a repeats than more

a X, financial Slide quarter with customer please. detailed begin summary Thank review, will key second our our followed of you, including results a more by metrics. I Jonathan.

XX% year-over-year, Despite managed XXXX, XXX target as our of EBITDA business highlighted, basis points Jonathan adjusted on margin of XX% importantly versus range, remains please. the X.X%. our we nearly basis. deliver increased but slide, near Revenue decline our end. A single-digit effectively performance, sales low but to three-year declined Next mid a within by

decrease income a adjusted of higher The versus earnings We quarter quarter year second diluted EPS $X.XX effective $X.XX, The pretax by XXXX. declined tax rate. of profitability. was consecutive versus XXXX and our share of was ninth per a lower of last reported driven

proportionate Ventures’ our Medici one-time a Our item performance fund adjusted the EPS from share excludes resulting the impact and conversion. our equity of from

Our effective quarter, same a tax compared XX.X% benefit was rate tax for the in second XXXX. during period the to

significantly rate and year, we different period released versus the expense XXXX. as tax same majority of the QX last in quarterly Our allowance our were valuation

mentioned last quarter-to-quarter rate the tax that believe be on in be the based items. Noting mid-XXs would on we purposes. As appropriate a call, for forecasting discrete fluctuations can I range there

sheet speak in metrics after program ended the with executing remains share following in now repurchase $XXX quarterly even in balance I these strong, Our on a will greater financial the million. of to detail our balance cash slides. quarter, we

of decrease year-over-year. $XXX revenue of please. in quarter, million XX% slide, We Next the posted second a

were quarter weak was These sales compounded products non-home history impacted sentiment, from second with remove headwinds comping and by macro The to and company’s uncertainty, our geopolitical XXXX. the QX in amidst our site. actions largest in consumer quarter our strategic

since Our to performance of that retained home-only Online have track business The made. have – Jonathan in a XX% XXX category the illustrating well penetration relative pre-pandemic engagement mobile the have assortment have our home increase have strategy. continues at Both to and we XXXX, in elements key continues order XX% our XX%, in progress our levels, of year-over-year healthy with growth sales basis increase points furniture was This positively perform evident with value. we strong to by XXXX earlier. shared improved XXXX. average which over you of and recognize impacted an operational furnishings our is of app. Revenue customer been

on XXX% to discuss I metrics further home report assortment, are right customer We the ended key quarter in that later. detail will we with target. pleased our

last in versus slide, million offset offer million a high Gross year-over-year partially was The decline point margin. an operational year. This offset driven of by increase margin was profit smart the while were gross gross decrease I’m basis please. was period second a by came partially same able quarter, value and improved year. promotions pleased at profit that prior Gross period. improvement $XX discounting. navigating $XXX our XX.X%, customers XX inflationary efficiencies, by versus the higher we the to Next in a

with and/or faced significant margin from mark down infrastructure. model that protected other gross asset-light by were inventory owned retailers Our our being pressures

have and year-over-year slide. and tech constant slightly decreased expense on Next relatively average. G&A remained

compensation versus have driven our I have last year, quarters, As equity past expense we in increased programs. benefits mainly mentioned by and enhanced

G&A expense quarter XXXX. tech revenue was the of second in points percentage This and second a X.X% XXX a primarily line of results. to was quarter, by deleverage of compared basis top driven As the

within automation to higher growth across to our by identifying managing in redundancies drivers. structure, offset opportunities We and extremely be finding remains the our goal cost eliminating organization. disciplined expenses Our toward prioritizing efficiencies our spend and and finding staff intend costs related

stated at ago. target. Next $XX was delivered enabled of EBITDA Adjusted focus once the decrease slide. disciplined efficiencies expense a laser year $XX on remain In again within of million profitable. a quarter, I’m pleased end is margin that we of operational gross and which lower spend million, marketing the to X.X% our us margin, second adjusted versus management our EBITDA

customers slide, We XX month Next customers frequency. order measure on slide active active please. This a shows and basis. trailing

customer decline inflation customers toward second a base three the at This weak factors. as in spend the million and been has to consumer sentiment of key active by Consumer of was declined active Our stable result discretionary high categories. driven end $X.X quarter.

with Our services. continued despite this the versus online and as the exit share coupled during of products, And wallet in long-term is right previously normalization pain to store spending shared a short-term. some shift experiences strategy to non-home trade-off

customer high. acquisition We are costs are disciplined when

quarter the This to been peers our that home illustrates are times change year Orders history. new sequentially. strategy this is third-party sales This rate result a While pace slight decrease per as slow flat in retention customers, of we customer against focused quarter, and consider our working. that last year-over-year X.XX versus our the strong is relatively you data. can by active when has measured was largest in comparable customer in second comparing a

has of been which is this increased decline detail an strategically portion to While in offset the the able decreased, which typical category greater will value, I with of discuss in average order active next slide. on home a have customers we more

during furniture XX% company. high AOV as to seasonal improved record This a Average shifted year-over-year please. more into the value Next outdoor $XXX sequentially slide, for is also order the improved $XXX. – million AOV period. we

we the continue is $XX.X the while throughout driven trailing cost Importantly, their spending by pressures delivered in year sentiment XX-month started period. to for AOV The removals year This within of orders. the product priorities million quarter, of cumulative improvement our a home product along our prior primarily was a X.X assortment. our ago. and impact was by the were site to experience compared weak XX% mix of decrease non-home consumer Orders primarily shift from a that driven a decline million with

with It’s make the customers AOV who have of trade-off our is the targeting. purposeful an are a behavior reflects value the to and home, propensity us declining, improving. order customers strategic important on we of purchase. Home higher proof are each a trust value are while items focus point and results repeat Our purchase orders higher on a

peers. Next and business sales non-home more view last our slide comparable is this quarter, of a provides slide, We please. our excluding introduced to which

chart our revenue declined home-only chart see home reported the the left right you declined versus on illustrates customer the at XX% end second versus reported our active on XX%. the XX% can As base XX%. quarter, the the comparable of related The comparable

our due In This impact fact, and trailing to non-home the customers cumulative larger. sequential a is ecosystem. of exiting the XX-month on basis, is impact

in quarter in debt. second discussion please. the million our of long-term my by $XXX I wrap slide, and million section sheet. highlighting $XX only cash We balance ended will strong with financial the up Next

the the and capital rate without we Having having during no markets of our We until the core advantage. second a the restrictive strategic allows initiatives is financial interest rely quarter, on second million. to maturities repurchases. rising this capital returned and have improving tactical debt on of were We $XXX the solid to during a $XX the us to significant ability March, maintain quarter. XXXX. in our It top uncertain operations on debt Notably, towards even million focus net macro share shareholders At environment. quarter, this million $XX great cash end after was minimal position position to environment able allocating last

through have program repurchase on share available it. current December Our $XX is currently And we million XX, approximately authorized XXXX.

future to We be opportunities. continue will opportunistic share in evaluating repurchase

proud position competitive the financial are strong a our advantage time We macro uncertainty. of and of provides

and We to initiatives continue margin stated back to shareholders. With make for long-term our Jonathan. drive deliver product value growth targets our on strategic our you, on to that,

today’s certainly stability balance a and sheet rates. market, uncertain slide. and us of uncertainty Having strong Thanks Adrianne. interest In a more like I flexibility gives in world rising this

Next slide.

where growth. some and insights where paying our Next, key including we I’ll focused is home driving our off provide strategy and targeting into business, are

of market. furnishings third-party as XX% this on slide for category expected around past We’ve online online slide. forecast the the in sales third-party in shared this revised is year. Next still furniture direction the data June, illustrate to home of in domestic penetration the Based and track to

market However, matures, What and which higher. purchases also as XXXX revisions still It grow. move encouraging not the to be be U.S. penetration addressable for below me excites term, are transacted in is to furnishings believe for to Longer to for in sufficient and the revised levels continues is furniture online. for market projection the surprising. were expected room now there online penetration is that that this smart our still XX% is serve – billion of we with higher. billion, the see opportunities larger These is reporting. assortment the and this It home to total and strategy a us online prior brand year. to help if based highly on fragmented market now up fourth the growing additional our largest larger furnishings product value online third-party home of The retailer home gain the us depth States, in focused estimated the at penetration pillar the breadth in provides in increasing $XXX United market this even space is share will market. declined $XXX from slightly on This and XXXX,

significant been Next is remind focus has slide. this to strategic place in expertise showing for slide white to meets I home This Value. compete. space Overstock Smart where to it. about quadrant on quadrant available the We’ve Overstock love that right goods investors the choosing

sales customer We Some competitors not debt spectrum long-term. economically leveraging wider on to business value cast net that the over oversized models of believe try a expensive to is and/or ends drive the both growth. strategy viable

helps on the when us and space white business marketing focus our customer maximize our across spend quadrant Our within base our profitably. do so

of those the natural pillars, We find style dollar, of Smart seek are wallets which customers, highest strengths. growth target three opportunity call we find represent these that to Smart value customers and have more with Value propensity has to this easy their And seek to are customers. ample customers Value. Overstock and to Overstock already our with our continued an each our help proposition. greater will XX% purposefully want and they brand what growth a more the talk to now for to market. in shop space us. what roughly and when Our quality target I stretched These experience key play

Next slide.

first The pillar is brand product findability.

of quarter revenue home the approximately During was categories. XX% our in

merchandising Our product has and on impressive of done an adding depth job assortment team our breadth website. of

competitors, meet to relatively allows and to home part light partners has our with business consumer our of or home. Our demand positioned we some with better fast grow our and expansion through grow own offering. product assortment any favorably Home preferences evolving economists model categories. point because risks assortment outlook slowed of a customers association product further asset don’t insulated sales and have unique in inventory, associated with capital us the key a at and The to to our we changes year. from across broader us onboard Unlike are light needs brand a pace, of strategy this of reduction

their Consumers investing are values However, pre-pandemic above equity spend for still homes is good for levels. our is backlogs remain business. home and project in home strong, related which

overall Our categories average. the reflecting outpacing improvement same have company the in Sales growth business been home been trend. has our

quarter, demand deliver market products, sales and well share. continue more second categories positioned as we again, are home spending capture the these growth. on meet consumers start And to During positive to

slide. Next

second best highest offer products the Our to strive is We the quality pillar brand price. Value. at Smart

and Our and high attracting low promotional retaining model is to customers. critical intentional

As is demand. widely acknowledged during the the of faced to second due industry pressure a promotional quarter mismatch elevated and competitive inventory

some navigate to or And we did we challenging to While and have a markdown our in didn’t excess environment with so did to we held so maintain through did asset any us expose inventory, our deliver Value need not Unlike quarters. pressures, we liquidate light our Smart margins. directly tenants past to owned future. model the successfully. customers in line liquidation We nor to pricing will competitors, to of need do our

is resonating. year that Value February Memorial We on we shows in proposition continues in strategy event since important consumer important to – volume not is count February, comparing Considering our work change Day largest It is key Smart is were was largest against larger was on Day sales the that to our this impressive which offering This our events start reminder as significantly of Our considering sales year. driven in on. President’s Smart than second to a Day something in in a the Sales were Value customer sentiment is weaker company our consumer only major backdrop it May history. and in the strategy, record. Memorial history. the compare to also delivered customers in the largest due Overstock’s XXXX, quarterly our than

us to enabled We improve continue adoption, to mobile do app our customer well has which engagement. with

our attention app platform. conversion is customer strongest in mobile now Our

quarter. of downloads on XX% sequentially quarter, increase last sequential top growth second the During XX% saw app we

this of users. are app installed larger capitalizing mobile on We base now

our to deliver addition strategies game-based been coupons value app started popular have our delivering the and tab customer, effectively. notifications more to we’ve lotto like revived In offers These that additional strategies exclusive using results.

Our mobile long us has been spend efficient use continue to spend. strategies it year-over-year mobile further still to app and our adoption growth. on we growing for have We a with marketing events, during runway making more return ad higher key direct for believe app

Next slide.

Our and delivery third support. easy brand pillar is

advantage light the asset to to relative a chain us continues Our industry in competitive favorably be others. supply positioning

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allocations As historically home in refer a as interested partners our our we’re new underrepresented a There us reason to with result, particularly our partners increasing with partners. to website is existing working suppliers and are focused. who are since broadening we partner now XXX% are we on base us,

to which other their We faced was piled unparalleled evident have and inventory them, channels fully an orders when Their commitment pressure. warehouses. second at significant in markdown canceled their up they the quarter

enable to improved we to sell quarter, During them in through move promotional supported marketing our help providing it position campaigns by pricing quickly. inventory items their the and them tools their inventory our partners to

that way have successful to regular challenging goes rates carrier ship environment. Many of continued cost lower model them a pay And top drop even long-term of a line warehouse eliminate them to long negotiated our partnership costs. partners put to as used our we shipment The course, unique we our tied Our in to navigated vision. towards achievement on enabled faith logistics. our timeline

slide. Next

to are will growth, jumpstart. growth. a several spend profitable amount Our business. shows critical market is be to on slide always of a something which support One key Growth key mantra This working continued to time are is our and sustainable drivers and component that of share working we we significant strategy achieve.

or competitive business differentiated the overall are growth the what would These any profitability of allowing marketing drivers growth intensive. pursue Other drivers is hampering focus our environments. Our on limiting in these resource growth progress macro inefficient to than drivers. of model be in headwinds is our us spend, capital not not despite

continuing We on strategies, in be disciplined expenses. to are focused these managing while

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brand home the as With move and complete, are of we long growth. a runway pursuing now initiatives XXX% retailer prominent with home the to a furnishings to furniture for reposition

a to on efforts. reminder our Canada quick Moving

for U.S. our goal As to Canada several to over shared is our XX% revenue grow we’ve the before, next of years.

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slide. Next

with direct targets as recipe share online the within opportunities growth our home. market some. We card as market to profitable we to win strategies Overstock continue market brand our sustainable contracts gain association to drive has share even financial

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deliver to EBITDA carefully. And will, these an to basis. best continue adjusted annual on the mid course single of we to our expenses in continue do digits margin We manage

fund. I updates the slide. now on Ventures will Next Medici discuss a few

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Next quarter briefly provide some recap the moving I’ll to and before slide. Q&A. now thoughts

slide. Next

demonstrate During consumer continued weak against quarter, to profitability the our backdrop. we a commitment second to

also cash through share our shareholders We to repurchases. return

in current on Overstock the Our and market and positioned flexibility balance is consumer gain the sheet provides in to business well well jolts share. strong to that model and to is environment. market is resilient, agile us believe reacts capitalize the macro opportunity and We behavior

with the Looking assortment ahead, depth increase brand and continue site, SKUs Overstock’s we our on available home. breadth to homes association of strengthening

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our mobile engagement. leveraging customer We are increase app successfully to

our up, position the proving can that light and our asset and win. We we a wrap is have is chain like team wants it To differentiated to, model. adaptable and believe business our market team we sustainable controllables. in to focused share the market profitable I will that control built strong, growth. support like and supply and This Our a is model

Now, operator some let’s questions. take

Guggenheim first Partners. Thank question Instructions] Seth Sigman from you. [Operator comes of Our

Your line is now open.

QX in some of feel operating a you about like expenses Or tech in the potential digits. to for taking I’m I’m here, Hi, get lower mid deleverage that? have start continued we’re looking the of offset be the thinking to quarter, could this decline especially from about for performance. environment. see to thinking you. EBITDA potentially curious volume we impressive the sustainability to Thank G&A? everybody. to to fixed and like just at levers worse, more do If the particularly about It’s Thanks some continue the continue in question. sales single you

for ask comments. acknowledging EBITDA our and Adrianne, that performance. to add thanks you some Seth, I’ll first I’ll address

declines. in of To is margin and able Jonathan. prepared this sales Seth, manage where to remarks to talked performance, deliver And deliver and to our just been about Jonathan? single goal were we I that in we’ve second targets. over on the your margin EBITDA seen effectively. our we’ve expenses say, the do quarters Jonathan’s And you digit Certainly, our course, mid quarter in point, revenue last as four continue with would able we mentioned our to results

We’ve manage can going we’re proven to Seth, that model we And that we at have Yes. way. works them. carefully. our expenses a always look

things doing I – is under through because that year the well to doing few a strides I should we’re we’ve great are sales, depth, things team that the sell line aggressive competitors. merchandising, doing through and SKUs partner SKUs and plans. plans your in address We those our all top few what from growth that’s say Adding I’ll made drive breadth and to other things. and helps meeting are in a doing we add that penetrated of, think we’re kinds adding in part comment of marketing. In in merchandising the has

SKUs of second to that – in deal. adding, of for as think help appliances home we that small and I think particularly fourth focused half people look are the the appliances. giftable the like year we’re big also I’ll when are looking when is for things those I some quarter, note So sales for a

increase app expand and leverage our base. to working us customers with amplify Using home our On our our to customer reengage you more to communication to engagement. move marketing our the and existing use can XXX% expect marketing communication, front, customer marketing to we’re to

message we’ll we’re that become XXX% association home, brand on. and that something more and important focus Now that

So Seth, thanks for the question.

guys. Thanks

moment you. our with question. Raymond Thank One Patel James. comes Rick for our next from next And question

Your open. is now line

to can Thank you. county taking you share are your pricing take pricing given question. what’s inflation, you with on And morning. up trying is seems views my It the on industry? up. that appreciate also going Good Jonathan, companies this but in

the do to it others? of very given potential the year with being or just category? And about pricing see nets you out your having as bigger in you’re versus the So for lower seeing favorably, think talked about we prices what tweak relates the business, Value, do versus Smart the the importance you industry to the you to when think picture, competitive higher this pricing remain home continuing your while last

good really I Rick, question.

and provide some then comments color. more initial some me Let I’ll to Dave add

challenging. the post During our low cost on second high the low of promotion quarter, maintaining model in our the pricing was internet being

they see site, some to our we’re cost some it that we within the means second our sell a it during don’t through to have loss. by are are We team have so to quarter. see at saw much inventory pricing keep that that our who particularly at I loss the the works people publicly and the good lower our wise. concessions competitive get it, behaving during too you have our because for quarter with irrationally, their assume, we’ll pressure selling second competitors we acknowledged have against can what their so competing products I first that their some we worked in That on pricing. keep helps liquidating in at continue them The own us the sense, would price of could we the As that that quarter, think us inventory. we Dave, and competing to add third partners, is available We partners said, don’t to quarter half news own of third get that? cost with it

confident into it a plus and Jonathan we of feel move And point, match XX% increased time confident and will our the pricing sure with about additional industry back then think the a that out where in as covered. for competitive I well we just want Jonathan, we there. we feel those increased consideration, makes exactly us you. best to to our if rate rate we talked all customers challenging we are are fall. very, know resonating Jonathan, very will. we’ve that even that or that that you actions by coupons deal make Just that more one through rate, and We’ve hitting It’s match discounts, the as percentage, take continue to,

add Rick, thing. one me let

prices will guess. they or continue to down will rise? my asked, come You Here’s

even our over and/or For they’ll products inventory, competitors partners where come ample down. our inventory, have

still waiting for product to rise. the where they’ll For areas ports, through get they’re

it’s right So, demand furniture supply XXX like I there lot Overstock. down of And come got is supplies where are going prices patio deals than up. I where categories to mean outdoor are a home, they’ll Econ where there go supplies demand to higher now. ample and had than think on like And be deals less are we’ve

addresses We’re Hope that competing question, at your the to Rick. price level want compete. we

much. very you Thank

you. One question. Thank for our next moment

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Tom Davidson. Great. at Forte it’s Hey,

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closing Thank you. Johnson And I to for remarks. conference turn Mr. over any would Jonathan back like now the to

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you This call. conference concludes for participation. your Thank today’s

disconnect. Everyone, have wonderful may day. You now a