H&R Block (HRB) 4 Dec 192020 Q2 Earnings call transcript

Ladies and gentlemen, thank you for standing by. And welcome to the H&R Block Second Quarter Earnings Call. At this time, all participants are in a listen-only mode. After the speaker’s presentation, there will be a question-and-answer session. [Operator Instructions]

to Vice conference Relations. President, like host, to now Brown, Colby Finance would hand over the your I and Investor please go Sir, ahead.

joining Good thank fiscal Lateef. everyone. second us for XXXX you, our to results. Thank quarter discuss afternoon, you And

are the President and our Jones, CEO, On Jeff our Tony and today Bowen, call CFO.

be website, call. release containing a find link the webcast press on website today’s will Investor posted Relations this hrblock.com. you at presentation, posted which will today's We’ve the Also after on the to

Some that We’ve presented the to figures figures of a comparable on schedules release. the non-GAAP are the today discuss we'll and non-GAAP attached reconciled basis. press in our GAAP

laws. begin include not based on Such this prepared our expectations remind I’ll current call information we and forward-looking everyone of are defined will as and management’s this date that performance. securities statements Before statements as guarantees are remarks, the future of under

and are certain Forward-looking that difficult assumptions involve predict. to risks, statements uncertainties

differ actual our such, As outcomes results could materially. and

more about publicly update our SEC forward-looking undertakes to obligation can and Form no filings. risk H&R You factors other XXXX fiscal these statements. these or our learn for Block XX-K in risks

At the a session. have remarks, conclusion prepared of we’ll Q&A our

limit after During to that one ask participants a follow-up to Q&A, back with into which we question choose may queue. they themselves jump the

now I’ll to Jeff. call that, turn With over the

you, Colby. Thank Good afternoon, for joining everyone, thanks us. and

have will we digitally about the about framework to small fiscal significant today’s talk enable H&R This include I’ll call. for in facets strategic recapping you Then on to progress we exciting the of cover tax We 'XX Block. have all lot against update details and plans progress of a start by last business. made our our both I’ll introduced year.

in how better professionals help deliver best essential the is tax fiscal trained the easier we modernize in launch in This to and and success can clients the innovative expertise we in care, work ensure products, new and 'XX our ways. long-term as both industry

non-GAAP and reporting results fiscal financial including a will Tony change, share quarter repurchases our and outlook. dividends discuss Finally, second 'XX

steps to We modernize excellent Block our first 'XX enterprise ourselves business to H&R sustainable to growth. the our against position strategy. and Fiscal growth progress represented made improvements and to deliver

transparency brought products technology learning lowered made for and experience which make than consumers. faster, the before We roadmap. prices and of millions progress our to all AI and we in channels leveraged we ever to more to personalized. introduced more brand our on easier We digital new pricing machine our attracted consumers DIY We tremendous and

end our efforts first record the These the clients combined top of deliver momentum has make satisfaction and year. fiscal financial of half scores, increases This the in outlook, our and enabled into at client carried overall us to share. positive grow

Wave which results we’re business In achieved our business. will positive addition We in serving the season, to tax acquisition, closing seeing accelerate help which extension in share owners, small just efforts growth return October. and our the during us ended in gains

And ready spent having associates into tax meeting, certain time are our at this and franchisees the I’m season. upcoming momentum National Retail to our that extend recently

about talk and like year ways. plans look to compelling our in how our So as combining expertise and the new advantage in to we’re we deliver ahead, care I’d and technology for human

will of remain is upfront teams to the experience pricing, improved operational top focused element a remain improve quality A priority. consistency offices, our on key In this excellence and experience. of transparent the which

brand. and to year procedures, competitive last building standard on by to drive leverage consumers our to Advance product enhancing we’ll our also our operating Refund We’re continue

routine task, called and client, This a tax through our view degree tools simplifying to pros our that all the pros Work for offering provide. a we the communicate clients tax technology tax clients. the Center. service to strengthening and provide how a tool our of enable our best-in-class also work This XXX digitizing We’re includes pros with portal consolidating and services provides

how to the we’ll dashboard process This and manage of sharing an tax of easier. tax gathering as office returns, makes a introduce documents such improved enhancements, variety year, both pros document that virtual in and streamline management and

tax their the provide with confidence right time By inspire a equipping in clients, technology, pros efficiency, our them giving retention. increasing will be their we’re which and help to more to key

we This the H&R fully important pricing. Go assisted year Next, Tax solutions digital Block, represents we’ve second tried who offered on know nationwide. flow young feedback, but product the Pro brand. appeal we’ve that improved first haven’t simplified an and consumers client season as product marks offer busy to yet this service Based mobile our

connect also training, easier of of match quality half a Block. it being members the nearly with and of No for pros years. H&R for differentiator We’re our key can team more to their tenure, Block level pros, making than with tax our XX one

our all DIY, with of a ease, In personalization. aspects improved offerings, we've speed on and focus

ensuring sure and will product, surprised are by consumers their award about mindset We winning know our by our making maintain pricing clients price. never competitively, challenger

capturing in consumers workflow. steps further talk the questions This about now switch making can data in and it the move from a We’re competitor. process from AI to you’ll machine to year, and client remove and even how easier learning two earlier us clicks, leveraging hear

questions this tax improved This Ask a it SKU with clients separate pro of assist also Pro. gives highlighting price a as a prominence may website. help This advantage increasing demand our product DIY offering offering access to on by and Tax product, as our for the our year, they on we’re any online have. We’ve our known formerly

of of My it’s tool or through with office, us, online Block. Let our is a for whether digital switch called Block. about My Tax engages Block Pro Go, the me hub with in experience gears to client H&R digital Regardless how a clients talk clients

upload Through planning. year this tax returns, for their platform, estimator and their Card store Emerald use clients prior appointments, help tax access can set documents, manage and our with

workflow digital return, signature it greater and status Block into and the the the the pleased am My is Pro, This clients today upload, and private in who the the year, our Block My for their return finish visibility Tax future. of secure document streamlined will role re-designed with experience I choose where play valuable we’ve to enable with online. messaging and

Let that small to million prep We working me turn small tax new X tax business owners provide in more tools ensure currently serve and the over we are business small business. through and now to redesign can clients experience. understand expertise

owners. small Through lives simplify Wave, business financial we continue the to of

We’re third-party excited to functionality to and have of extend opened announce to our our we API reach developers the tools. that

releasing in small integrations allowing to the new on matters their what system. track integrations - all for business that small dramatically to simplify single most. process, also business businesses We’re owners These transactions of it make small accounting various sources a easier focus from

first And Store. partnered it integration This I’m significant Shopify pleased accomplishment Shopify as for integration launch. with we've the to our is a the first App direct represents announce that in accounting

just some both on for for owners. the season small aspect we’re and upcoming plans digital enabling to of for the long-term. technology consumers using I’ve outlines fiscal and our this our in By and the ways What up success for company of business, which setting focusing every the business year covered drive value we’re

Tony. I’ll now the to over call that, With hand

Thanks, afternoon, everyone. Good Jeff.

I’d this results, to financial get of our I our starting the Before non-GAAP quarter. the to key like reporting details into discuss change

acquisitions. an Wave, tax intangibles related franchise related adjustment This are now acquisitions. amortization which excludes office to reporting We removes EPS, amortization and buybacks, non-GAAP adjusted of of to intangibles

of one approximately our context, was D&A to For historical acquisitions. expense third related

in adjusted believe earnings adjusted quarterly these operating release. and investors Block's To modeling, for historical evaluating we our will We included results schedules EPS assist beneficial when H&R be with performance. have

Turning to our results.

the seasonality a As year we Therefore, the typically reminder, quarter second our due of of tax business. a quarter are loss representative results our during full report fiscal not to performance. second

$XXX or This to $XX increase million. year-over-year Wave, was primarily growth contributed Starting to with saw million. revenues, X% we which a $XX of million due

share DIY. were volume growth business, results in Additionally, both and the with US in the tax season strong, in Assisted extension and

to These continue lower offset investment prior for plans net indicate It not average last season our guidance in be by tax minutes. we year. few charge a our net reflects a around in discuss Assisted, change in the season. at upcoming to I’ll beginning flat revenue average as does which the to results taken details partially our of in charge anticipate the the price were

Total and was higher roadmap expenses million. $XX well This increased primarily or partially as million our to expenses, the to $XX to flat operating $XXX due XX% prior by Turning was technology Wave, Interest related legal which was lower expense to as year. cost. expense. relatively offset to planned investments occupancy million,

from an increase which $X.XX in benefit and loss partially resulted due pre-tax forward going GAAP loss operations increase lower we items. the million. expenses in share increased offset discrete and an outstanding, increased favorable by tax loss to of loss revenue shares per increased share, per Adjusted will to in $X.XX, $XX $X.XX continuing $X.XX. in driven report to changes by pre-tax The

the year a As negatively we loss. reminder, basis, impact EPS lower a which full in quarters beneficial report in share while on a count

to liabilities there during discontinued no operations, In contingent related quarter. to Sand the accrued were Canyon changes

refer XX-Q For other company's reports XX-K in Forms disclosures Sand please and Canyon, to the on additional filings. information and on SEC

our remain list, to our Regarding our liquidity the operational priorities capital, seasonality. unchanged. for the account needs it’s At maintaining adequate of for top

our value business after believe then to We prudent Making shareholders. back cash clients, sustainable strong free this investments to $XXX of drive make capital in We ultimately year investments came element generating into strategic fiscal the our financial a over position growth benefiting 'XX. allocation. with of our key we a flow million to deliver in remains that

health future Last, XX%. dividend our has Over repurchases. through share the to past will time, years. dividends, X the over for that business our dividend allowed we outlook increased and dividends has quarterly capital our With and quarterly for the deploy increases excess respect of

after annual each the year. We review of will perform dividend an fiscal

we Regarding equity share shares offset repurchasing from grants. to at a repurchases, minimum, dilution remain to committed

an second repurchased for $XX.XX. quarter, of average the shares million million price at During we $XXX X.X

at Year-to-date, X.X $XX.XX. a shares for of an $XXX average million million we price have total repurchased of

opportunistic Going in we be continue our forward, to share repurchase will approach.

now volume This thoughts seen X%, tax DIY Starting is growing I’d our provide and over growth the to we’ve the consistent trends we with the flat several slightly Assisted to about overall outlook. to return of 'XX fiscal up expect on industry, years. X%. X% with like last with

in and in DIY 'XX, which was by year sustained as Assisted, marked Regarding grow to and holding in category. in improvement a we driven clients share fiscal trajectory that in share be growth will anticipate third both the our Block, This improvements. continued of client market H&R market expect consecutive we

year. prices the expect pricing, reset With last respect in to charge which year business, we consistent with to our Assisted remain we average in following net

In charge mix favorable to is led focus on and share to price continue net volume will DIY online slightly expected by DIY, gains. as due return increase driving we competitively average we to assist.

revenue in This growth expectations, client outlook X.X% pricing expect with We addition to our consistent of quarterly along Wave X.X%. of result during the growth provided last these the and two with calls. to is

With we EBITDA fiscal earnings, slightly than as we revenue to total anticipate to return dollars growth. respect to be higher 'XX

increased our fiscal in the that reductions While increase growth the will first fourth will and loss year. our in Wave's losses still half, full cost EBITDA of The be majority offset the operating achieved expect we planned revenue for quarter. EBITDA

We expect continue to we Therefore, EBITDA growth result growth, XX% will outpacing of revenue these which in EBITDA XX% 'XX. margin margin. to in changes fiscal anticipate to our impact

XX% XX% to We’re the to during primarily settlements favorable from tax due to authorities outlook outlook quarter. our to updating our tax of improvement XX%, original with second rate an XX%,

$XXX amortization of of our to and the outlook, to total intangibles of $XXX items which will related million, to financial $XX be million in other amortization on we Moving to million acquisitions. depreciation million $XX expect

I EPS will from excluded non-GAAP other expense and reporting. for amortization reflects Wave acquisitions and mentioned this earlier, be As both

$XX expenditures light, to to We on updating million. expect season I’m prior year full year finally, be excited the expect you our progress to to capital $XX be be lower And about we than million business look million. at to capital million our ahead and slightly $XXX continues in to interest expense forward the $XX and March.

will over Jeff. With to that, now turn back call the I

season. tax about the plans progress making long-term too our excited objectives our Tony. and for very the Thanks, on I upcoming we're am

We’re as with consumers small allow we ways. that develop tools the H&R of fiscal 'XX will products and successes continue building on owners to Block to business and new in and interact exciting

our are I to season. all thank clients, pros to franchisees upcoming in expertise the their they more continued for focus associates, on to sharing for next forward to our like care I’d and quarter. doing look and tax prepare providing

questions. for Lateef? we’ll that, the line With now open

[Operator Instructions] Stanley. the line Our Jeff first of question comes of Morgan from Goldstein

Your question please.

good Hey, afternoon.

you your trajectory color reiterated view again specifically volumes around improve price add mentioned You your confidence you your bit more that could to maybe Assisted a can not little this that their year? your around given increase just year, this plans

for question. Hey, Jeff. the Thanks It's Jones. Jeff

the we’ve our been prepared mentioned performance in improving trajectory year-over-year of business. his Tony in on a As remarks, Assisted

may client, which conscious we you a that would we EZ know, knew made but Free we As we the step aside, with about kept last pace decision year, eliminating know industry. cost this

all on So marketing procedures, when work year, operating to build of this year. operational and excellence think we and pricing, the last year to all take a things upfront on do we this about we’re we doing step back continuing transparent the the year continue standard in effectiveness into started that two

translate and retention how this To a and obviously, market, XX%, about retention last our client think franchise culture be field we the organization, we you high with about eager honest, scores satisfaction year year. and know might see to retention, from have into excitement the already I’m

together we Tony that maintain really to trajectory. And on is goal our the share place said, and feel this in continue to in and year we put all the But have we good as category. growth, ultimate plans expect about that you

was were item. That helpful. a in Okay. line higher step wages than it centered bit expecting And this we and be up quarter then, to on a seems little were other expenses

to call is expense the there there the for is So year. somewhere of change or and remainder about the else, out time one you’re anything to page thinking any there how

in Tony. of Yeah, variable was the show a in some the is This other, to of expenses lot related Jeff. I cost, Thanks, several Wave Yeah. items there mean, other. up

in up a there's of number quarter some have legal parts. moving that showing We that during are other, occurred the also expenses

at grow will EBITDA some expense will vast amount majority But I only for I a that growth year that grow said when the full during fair my during our roll year, occur EBITDA us the occurred outlined. to we hit guidance - in to of opening we look as during will our that you benefit quarter, and expect identified quarter, hit where that comments, revenue of the not quarter, also off have overall full allow that the fourth

line though? other wages Was the on item there anything specifically

our the Not the some got obviously the mean, wages field as of - as vast build of Yeah, international well US, network picks which majority businesses. our I we've in up

making hiring additional would roadmap, would as Wave line wages as their in technology that we significant up the investments would item. up that showing picked quarter be show up during probably that of other the well a be increase, also portion wages we’re professionals in that in and IT

Thank Okay. you.

Thanks, Jeff.

you. Thank

Our comes Mazari next from question Hamzah of Jefferies.

is Your line open.

is Yeah, hi. This Ryan Hamzah. Gunning filling in for

quick the that a question. considering in you Do market impact think Thanks. the any Just could are negatively? here or positively tax maybe variables returns upcoming isn’t there that

at know would Yeah. over industry that which the back was why impact unique this turned we X%. shutdown, returning number. Ryan, is of point extensions. with this year nothing into rate, year There growth Last of that season of government back to year Jones. we Jeff look kind a obviously the history delayed the see about When is we that’s this that

Obviously nothing that upcoming at government not impacting there season. or do, our radar we that's growth this may on to that not is point but predict see for may the what trying

Great. Thanks.

Thank you.

Thank you.

question comes of from Our Kartik Research. next Mehta Northcoast

Your line open. is

and or and take and - Jeff, ask going is to you and just budget you tax especially the it you for maybe where little some you bit Tony. if budget, Jeff, I marketing the increase is, of to marketing it anticipation Wave marketing the Hey, wanted now increase add to Wave? if and what have you're budget, and a to about as kind side both Wave maintain - overall and expect

making guidance, for year, Overall, and Hey spend marketing, absolutely is talked our results budget is reflected on marketing lot in we changes little what performance last you focused year Kartik, the remember are a will bit. saw there, were great we effectiveness. about etc., the the may me pull let That our part a I continue. that in we

SEM and an has propositions started grow really we level, the through that been the relying SCO. respect effectively they Wave, learning to think at at and experiment added to their that mix. are proposition, effectiveness have With able beginning highest with on value marketing, primarily to of to Wave really They have three incredible

and think you opportunity steps us help. this awareness, to there grow things We integration take is of know you’ll few like Shopify lot year, a a see

on We Block's are now co-merchandising website. them H&R

qualified clients emailing qualified now Block H&R Block. are We be Wave. about H&R emailing We’ll clients about Wave

where a So inside focused think rely doesn’t incremental lot the that's on of investment installed lot there fiscal and base, we 'XX. that is opportunity for a we're of

Wave And then the revenue? one just and Jeff, maybe last in growth question, customers

Yeah.

top very I stage say XX%. revenue we’re on the grew of this Wave. this at not will really They remains guiding the about but customers, for that funnel quarter healthy So

years growing we this mix did little the we have said some As now, like than they XX% they’ve softer quarter. last plus on quarter, again payment line, for of revenue that was It a type. been on would based

feel about and small thinking about roadmap to and overall, product, very the But of come. the they're about the way business, and still the owners very, they’re product simplicity health of business serving the what's the good thinking their way

you very I thank it. Well, much. appreciate

Thanks, Kartik.

Thank you.

Our next Chien from BMO. question comes of Henry

Your open. is line

the ask afternoon. taking Thanks know good some operational next excellence though just year. of you question. for reiterated I wanted even that I margins to for Hey, the about

sort through operating excluding cost forward impact curious, going the margins Wave, impact could Wave? any with just from But you're and that achieving that of beyond the targeting and of efficiencies impact Thanks. margin underlying sort where trend potential

Yeah.

said and also a operating the reductions, allow with contraction year. as grow will my revenue margin. little will all EBITDA slight to as in EBITDA cost cause line in the the the dollars offset EBITDA revenue comments, of bit opening grow growth that for fast, which well line, I I a us which loss As will Wave other shared will be

really good to We we a over are in EBITDA company that know year time, is a operating that loss, currently at a we acquisition will it be strategic did feel Block. to for but going H&R improve accretive know really dollars that you

talk focusing been there and experience last lead of the how all really the our to way - on offices, offices offices, it’s is P&L, over a that on of year. we clients, in all all execution, that and that only not changes how about lot staff possible, our manage that's we serve of the focus we When making our but our client and focus best the we also operational the the number and those make sure we every changes getting a we’re

frankly, And in NPS in an satisfaction long client improvement retention term. it resulted and has result in the that improvement scores Jeff over mentioned scores should

Got it.

Okay. thoughts or of - cost fixed are any about it's how sort And otherwise, real estate whether on sort thinking the sort of you that? base, any of the cost other

we’ve Yeah, baseline a on resetting optimizing I growing. we lot a the focused levels, been mean, resetting our margin number try last and our to year price. those of basis. of on year-by-year mean, years, we did decisions changes footprint, Obviously, I last a couple resetting make of

now improve, what that take we main in new as in next EBITDA of dollars focused both base the time. few we’re through should DIY, result that’s Wave, do over really improved grow over the and the EBITDA And on and focus how which years. focused those dollars we’re on And now side, Assisted

Got it.

so you much. Thank Okay.

you. Thank

Thanks.

of next Please from ahead. Oppenheimer. question Scott Schneeberger comes go Our

get start on update. you the - It’s I’d love Jeff, clearly a much. we one, roadmap. could to progress very technology Thanks have

the we that. know really outside the roadmap, you don’t On have

is would where go on side trending could starting I what’s it you you it along you now been what’s of are financially, the benefits? path, guess, and so expect are to see kind summarize the accomplished, and yet And as to cost just you

you. I'm sorry that Yeah. that opaque to Hey, And Great question. feels Scott.

year that So the talked or has so a of technology lot ago a roadmap different dimension. about we

what think refer at the engine to tax omni-channel I we the a top tax platform. as is or

track. and It’s on track company great attempted to effort the multi-year The in one engine initiative had team tax major breakthroughs and omni-channel a on is that the has an three found that a is are engine initiative. the That’s we to some with engine, past effort. move that from

is from piece, cloud our on where migration. of business is think the lot second I is multi-year also piece to of a this major Obviously, The the place is the benefit of data our roadmap track. resiliency, is a move there a seasonality cloud, of given a centers and too this that cloud, given roadmap

improving things information continue security, The Dayton other to a speak nothing years are are a and on and to about there. like report they're super defined less of less more really just but one priorities, them, important to number those They architecture, of roadmap. its focus

we report they benefit the serve our is, years initiatives can I today see cost to are rate are to to greater ability They are and clients. When what to run on So expect going take complete, complete. reduction track. several also in

do So the are launched I a couple say we and feel track, go. of about intent happy have to I’m why on really to they still they them, years good but of

are ask Excellent. Thanks there, just you guys or looked for could, expenses to increased, elaborate? legal I bit. like can Free other, little you just curious Alliance is questions like there. the File But follow-up, would From they It sneak if whatever separate. in them my a that focused discussed color two was somewhat I

throughout going large base do the will it's the tax be who this have been a past. providing to after volume season? quickie not And then a year competitor question, updates is my it is, in the they had You tax you other in

curious what for Thanks. just So your plan is that?

Yeah.

updates you second them absolutely should believe season to we question, take will that reverse our continue. our will - transparent your the our possible the transformation, initiatives, throughout to and you we’ll business, in as in in with that be in and order. change have that we we how On as plans no we provide So be

take was the quarter. I Yeah, during the expenses mean, legal FFA Scott. driver I’ll a

of a our that later some had matters. which file detail we’ll expenses about Wave all our of in XX-Q, hit. We legal lot provide We this week, also talks that

details we of As don't typically comment you those pending on matters. the know,

or is legal - it going you on too taking the I just Thank to for elevated front? If many. Tony. no remain Thanks,

a to quarter, zero basis that call. bump year-over-year see mean, you I EBITDA earlier that in contemplate to obviously, Yeah, the when did a probably up, margin it’s outlook I we not our go on but quarter in going the provided following

guys. Great. Thanks,

Thanks, Scott.

Thanks, Scott.

you. Thank

question Tong Sachs. next George comes Goldman from Our of

is line open. Your

cost Hi, that to to thanks. offset the to losses. planning I into you’re Good make help Wave reductions afternoon. wanted the dive deeper operating

Now didn’t that and from in those year, performance? the more into elaborate you’re identified further be if savings along impact have the just you bit save where on of savings little coming the revenues a earlier additional potential on can these market are could savings and to you you’ve year share and what executing

George. Yeah. Thanks,

As I during quarter. said, there those going occur is fourth of - are most to the

our EBITDA that You released to call release year-over-year really expect we for still that year see will is we up the for the basis, before dollars full factors. six slightly the EBITDA but improve first loss on months, a in our by driven two

revenue occurred growth quarter. our annual which of over fourth you revenue, the the during know, One, XX% as in

that have about as quarter. been those as fourth well It's off, will cost during matter occur rolling which just all that it's identified. So planned the already reductions of quarter, some a

rolled in is some occurred earlier budget is there year off that we marketing some year. this to in will there that the of compensation the So our first consolidation year, roll half already footprint one-time - in that off promotional last related expenses efficiencies, some earlier expenses had the

are those probably So biggest the three drivers.

a to the on EBITDA feel to margin it's are We're obviously we start coming still we and in. we are off conversation on, like both But the year. a good as we first think question point. identified, ranges provided the Your how half about results fluid of that else the have and in revenue what

at you've again And you'll into or as this length, that sustaining about That’s likelihood Got pricing talked flex the to year. you’re are pricing you further helpful. a season? committed fully now upcoming the What's know flat tax for for it. but Assisted I lever pricing

from pricing looks And how additional pricing is to DIY, to a lower, thoughts - some on coming go you perspective plan share then in it market DIY? thoughts can like you separately on just

Hey, George.

in further. We we 'XX. reset Assisted, do the will we we our clients see line last flat reset we and the can to all not they so fully that and tag scores [ph] On holding pricing about are committed judge getting our good clients how is fiscal We feel value. team. pricing to about believe year for gave that really When need us. pricing, experience This

once value growth, feel Assisted prop and level time, price we that able and to gets to back and the to a clearer we’re to in path tighter, we business. like inflationary on back And get expect hope increases over be

key Yeah. you great last competitively, price really The a to know we for of pricing grow Then awareness a want couple the years DIY, of for as has we been to regards to growth, George key a is to which part element our product. it. building

year. average sure charge be not this I’m if opening net in expected DIY to my you caught up in actually remarks, but we

we be overall lead positive assist it actually mix to DIY. not flat will lower led in be average to by and and net will charge higher expect pricing online So the a

helpful. That’s

that. follow-up to on Just quickly

more correct? increase by the is going mix, pricing that So be driven is to that

I it's right. dynamic. That’s mean,

half season, pricing As be that believe be have assist. positive don’t by-product, it in price changes and or planned by first we any second but whether is reductions the you mix DIY, half there know, we going throughout led to in online

Thank it. you. Got

Thanks, George.

Thanks, George.

closing this like call the I'd Brown back Sir? for over remarks. to to Thank At you. Colby turn time,

Thanks us. for call. This again today’s joining everyone concludes

the Thank Ladies call. and this you for gentlemen, participating. concludes

You may now disconnect.