Purple Innovation (PRPL) 13 Aug 192019 Q2 Earnings call transcript

Greetings, ladies and gentlemen. Welcome to Purple Innovation's Second Quarter 2019 Earnings Conference Call. At this time, all participants are in a listen only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions]

pleasure your my of Brendon now ICR. is to host, introduce Frey It go Please ahead.

joining second available Purple call. for website you Thank Innovation's of Relations of press at Investor www.purple.com. A quarter today's release the is on section Purple's copy earnings XXXX

presentation to Purple this current Innovation's today, analysis as forward-looking would judgment make like statements and will forward-looking a number the on affecting of may based from you and expectations remind I statements. differ actual certain These that we factors in are reflect materially business. results statements only of company's

you on Accordingly, place not should undue these forward-looking reliance statements.

to thorough more disclaimer included undertake statements referenced our made a or events with this as regarding the the second the risks statements in earnings of release, future disclaimer. or quarter We discussion For on filings to you today new and furnished in a SEC uncertainties otherwise. not webcast, associated with obligation which X-K as the of our statements, in information, whether the and was conference that any as forward-looking forward-looking be to any call well XXXX to forward-looking refer SEC result Form do alter update we

and financial as GAAP include measures non-GAAP will the on non-GAAP can our our these be references of found EBITDA. found report Today's in presentation which A of quarterly XX-Q, comparable each website. income, financial be adjusted the measures, to EBITDA such operating reconciliation adjusted on to release can earnings and financial most Form within measures

over turn I'll call the that, Megibow. With Joe

Phillips, Interim is John With me Officer; Chief everyone. Financial the Legg, and good today Operating and call you afternoon, Thank Officer. our Chief our Craig on

remarks take be we'll your Following questions. to prepared our happy

during the second saw top you line continued earlier experienced momentum earnings in quarter. the year release, we the our As from

our Purple manufacturing offering of demand growth was strengthen heighten done capabilities. and differentiated for and our product the create the fueled combined by greater we've and to brand awareness work to Our fulfillment even

significant from XX% even stock year expanding approximately last highlights percent the revenue of marketing XX% net this from the spend second non-cash incurred to quarter. expenses the revenue gross and expense year-over-year of include basis $X a margins year, increasing compared XX this operating the quarter with XX% million, of a declining quarter, in Financial points as net to first shift $XXX million as second increase we into achieved in was out the quarter first

was items adjusted basis comp $X.X non-GAAP expectations. excludes EBITDA ahead of nonrecurring certain million and a on million $X.X Finally improved stock-based our which which to

top business from detail, our success recent more to at sell-through again to XXX wholesale more wholesale channels line over existing our including strong at doors in and with continues once as starting driven in the just addition XXX have Looking benefit this beginning footprint XXXX growth our revenue new locations. by is of in we than added In second doors new the the our of quarter.

feel to for that the and that we technology in innovative a of we market. convenient to different our Grid for includes As Purple from prior believe way an providing brand the rest our themselves to approach stated and essential retail is omnichannel customers is our how The quarters, comfort

& our we percentage as doors Row, reach of target the have replenishment of expansion, relationships of led around a to this With to on first to recent with across physical existing us for we've experience. market good XXXX. a our our that half for Home Firm, display established U.S. which in the to actually during On orders beds our XXXX sell-through Furniture leading today and Beyond experience wholesale Macy's, significant presence approximately top XXXX very strong through Mattress of such continued products customers doors Bath allow retailers with our Bed

quarter second we X% initiatives had business, DTC the to at year-over-year continued planned, as as aimed with up deploy our sales of growth first strategically XX% reaccelerating quarter terms we were compared this channel. specific but down In at

For into promotions to and has margin traffic quarter be both heavily test both revenue targeted the continued conversion which example, more to to second during and accretive. proven we

We quarter. of July contributed This performance a to also of Xth with with start at with more the year sale and moved the our compared momentum up ago business the start the June the industry. be rest line of provided in third decision our the to

lot our opening new bend company new a Another allowed us showroom Store, of recent Factory well. on merchandise manufacturing but product first merchandise, our the to facility [ph] near recent location. our owned the Purple streams factory fine revenue as which is highlight was standalone, and has of The has the store scratch also

first store sales. sharp Avenue In traffic acceleration operation, recently both industry main billboard with a in advertising through immediately revenue events. and the on zero and grand its generated of no put a and the Salt Lake month above City saw We up opening interstate

in the what performance by the excited this store very in later I'll are means plans, and call. more early showroom future the our detail for We discuss of which

I'll For our fulfillment manufacturing an John, and call to turn on capabilities. the over update now, provide who will

It Joe. again. a addressing to Thanks is everyone pleasure be

fulfillment. the timely efficiency the As I outlined made year team call, and enhancing great on operational strides our product in QX earlier quality,

yield During improved results. quarter, work to our the second continued

labor sequential allowed improved and control has and increased the basis. production First, both we better thanks line on to our fully production of posted enabled This this products our increasing in processes achieved which automation. further year-over-year without improve yields from increased on costs the us company to efficiencies quarter a for our capitalize costs, we demand to output record another and and

better continued realize our agreements. in for raw through and of materials to sourcing our example, sourcing domestic greater we've direct savings Second, materials,

we level better, significant a of second time, execution our cost. partner to accuracy, helped in XPL over following upon approximately achieved can Third, XX% we when this in group the quarter. we've improvement The and and of improvement internal performance. our XX% continued the get done current high maintain by QX hitting continued new I fulfillment agreements with our successful service anticipate that with the has timeliness combined level of initiatives confident am work being I

heightened our around successfully optimism completed we to Max growth outlook and we are a online build proprietary that it response in XXXX pleased machinery and prospects, out for weeks Mattress increased our the of to long-term report went Finally, our few ago.

bring started Max addition, increase Mattress have process production In to and projects by in them year. the we off and expect further online already sixth the through early our kicking stages seventh building next machines to capacity

have in time. with pleased we organization made I'm towards short advancements period a this of class manufacturing the world becoming

optimistic more headed our is objectives. to can is there about I'm and confident continue that Purple I'm work While be where our team strategic achieving very done,

Thanks and Joe. I'll turn it back over to

John. Thanks

focus further Looking committed on we and ahead, to omnichannel and four are our key innovation, organizational capabilities product areas; brand development. effectiveness, with growth a retailing, platforms strengthening

Let me provide of these. an update on each

the excited quarter, year to and innovation, technologies Starting our inventions new from excited we both new QX are will our and products comfort, out which models, current the in starting we next pillow of ranging best we from as in to be appeal. pipeline are in that listening that mattress our believe very mass benefits expected improvements we innovation, have many over the new a reassortment with all the the of strategy our that pipeline about about. well mattresses, includes Pillow in better will will fourth driven customer simplify articulate yet, Purple with product launch With feedback years coming as models roll and to

as as non-mattress mattresses well launch our such into we are also existing the hard categories, as over Beyond we that leaning new XXXX. cushions expect to next year categories in

our continue company-owned want, to showrooms. retail and retailing our to omnichannel service including to however our will wherever our we partner the and aggressively opening customer efforts improvements significant For doors, website continuing expand they

regional to us top current our our reach expand players with serviced existing building deepening of sales, relationships areas national by not while the respect both with on With wholesale, that our allow will partners. of physical country is players our focus to our in same-door relationship growing strong

relationship DTC found supporting with and have each between symbiotic a We the channel other. great wholesale

Last retail our will Jimmy we Vice of who online continue showroom talented such, capabilities. leader as As the in [ph] development President to a e-commerce, hired invest digital relaunching of including we is our month appointed we already are Chief and successful White, Officer our beyond expand purple.com. store. factory of to digital Tres the continuing our under Retail then recently initiatives guidance Drake And spearheading rebuilding

all year plan to are of West designed life support this and our to company-owned locations major open metropolitan our is learn. in the of product remainder in we showroom of the in These channels will primarily in our additional brand bring and showrooms to and test Over locations areas. begin help

functions. respect and continued roles key build organizational as core have effectiveness, fill With we to well mature as to our

including Creative and Executive earlier his hired to addition Morley leadership recently Jimmy, most In Drive-In brand an of iconic Nike, and at Hollister Burke and of impressive recently Burke VP Eagle career. American also as companies Sonic Brand has we in background Director.

We also improve policies of process organization. important this procedures our earlier to throughout placed technology. we safety, processes been the management, This controls roles in includes controls implementing process quality, assessment operations, consulting close our firm and project following an and workflows improvements by year, and Furthermore outside accounting and have and to have the accuracy.

differentiated products, Burke's the align in-house for the positioning especially and of benefits we and are our Purple in better hiring, finally, with order brand working our brand unique building to with And starting Grid. talent on creative premium

with signed and a a are relationships variety agencies. actively have digital with addition, agency In of we exploring creative

we half is been against In a what has been working. first team presented our as of we summary, solid believe last late year. successfully It has executing our strategy XXXX

grow. steps expect is in cash across taken growth capabilities toward we our see continue to to and improving we revenue position, operations as and which and mature the improvements have important We improved board reflected and

growth combined With and well-positioned the balance that ahead. am capitalize that I bedroom organization is the we of to stronger believe numerous on near in much and a opportunities sheet, Purple long-term the lie footing, confident out stronger on with

more Craig detail. and the financials review will our in guidance now

Thanks Joe.

up mentioned you combined year for to to continued $XXX was June in during due million XXXX revenue with strong As compared prior XX, the the was revenue the months following door million higher sell-through XX% expansion The primarily increase replenishment $XX.X earlier, quarter. ended wholesale net orders period. three

of our compared the with last same the earlier sales benefited July to quarter start year quarter Xth year. second The this also from

during quarter and the a and first mix shift general sales options partially approximately quarter net pricing, by revenue offset to attributable in gross slight year the to million XXXX decrease quarter period was quarter Gross mainly year-over-year profit the of gross of same second in The XXXX were in XX% margin revenue with the with in Wholesale XX% the dollars million for $XX% efficiencies margin logistics. comprised XX.X% of XXXX. of approximately XX% more compared in compared $XX.X to versus in second during sales wholesale $XX.X with of last XXXX.

expenses $XX.X compensation expense investment increase and out well marketing the non-cash $X of Operating discussed million second versus million million in shifted quarter. in of increase mainly was $XX.X into the by on $X in prior the as were call the incremental XXXX expenses second period. million which year quarter as our in stock-based a driven first operating quarter last the The in we

The is common the increase Class under XXXX their explained the stock InnoHold. in expense InnoHold of former more InnoHold, distributed during by XX-Q exchange cancellation in the stock Purple employees incentive detail This B to of noncash in transaction for in units based and compensation relates units. second quarter in current of the

quarter from a efficiencies the marketing our higher initiatives selling partially XX.X% XX.X% revenue Marketing channel from XXXX as and percent net driven of improved of shift. net by expenses aforementioned spend second improved the wholesale in to basis XXX in marketing by revenue the and offset points

to $X.X adjusted fees, operating interim we costs, quarter compared compared costs, in reported an second of was adjusted and loss quarter operating of million the $X.X After loss compensation, of quarter million second an for legal the XXXX. XXXX. income executive loss million $X.X an During adjusting of in equity severance $X.X operating and the and second search operating CFO to of million

year conjunction of agreement expense a February with compared loan this the announced the ago we change restated non-cash net expense, value of amended million period. a incremental quarter to XXXX. and issued of the $X.X from we loss the Inclusive in was credit the $X.X of net in warrants the for fair quarter in $X.X in During million recorded approximately loss million second

I $X.X negative was with second million excludes EBITDA Adjusted plus XXXX. quarter warrant which $X.X $X.X million same versus of just in the last positive was the compared the of for million EBITDA cost quarter nonrecurring mentioned, million year. in EBITDA negative EBITDA the adjustment quarter of same negative $X.X liability

cash and as at of from equivalents June sheet, had $XX.X company March balance the XXXX. Moving our to XX, of $XX.X cash XX, million million up

of EBITDA in and end an increase with by of second quarter net QX Our in compared this positive in increase cash primarily the the an the end driven and was of position receivables the at quarter payables includes. results

$XX.X the strong our Net of wholesale XX, second June XXXX, for compared experienced over inventories at reflects in the top in growth and the with expectation $XX.X March quarter remainder totaled we growth particularly inventory XXXX. channel in the The XX, at continued million million year. our increase line

between our Turning operational further continued million the EBITDA based we expect results the $XXXmillion. now continued including be wholesale and million Based we of guidance, the growth for to increased million. from third $XX to on expect quarters first the fourth and the now to outlook showrooms of range expansion adjusted throughout second $XX combined the door with $XXX expectation the revenue several and on revenue improvements, during opening half combined with in company positive half, impact

Operator, the ready I to for questions. we're call now believe open

[Operator comes Seth the Instructions] line Our of with question. Please first with Wedbush Basham your from proceed question Securities.

afternoon. a lot and Hello? Thanks good

Hi Seth.

Hi thinking business to DTC is a first shown be for obviously wholesale the one some a the about here strength questions, business, down growth is big year-over-year the reflecting quarter. than in A the basis. year-over-year you've great less on there, DTC back we was that couple positive Should on in first quarter congrats half? it thinking about in of the trajectory

is the reinvest yes it, as seriously us growth on we've new for board some that again put the in second so in positive overall to with expecting really Yes partners continue team we, we place and our to new we're we are bringing half ready expectation. again, take so

marketing you business on a that as from you returns better propel higher to you start and advertising again? on doing can differently the plan it, what DTC touch Got on standpoint side, get that to on

a of back it wholesale-retail the strategy pull our part elsewhere. Part certainly has to investment as choice weaned we've of so Yes, reallocate of and on some DTC decision going at been the into successfully very to marketing that some as that to back to to that have both which retail putting in money our well driving the to demand that DTC be sites continue our partners showrooms brand we the build as stores. is in of their and is traffic,

up and it remarks and been more we prepared is a we've just technologies of a the game levels sophistication getting of measurements. get of and in terms spend, digital of as agency that sophisticated tools, attribution efficiency I new some mentioned the on well as I So we're matter to working in, as with in efficiency now and some is it as what invest better of do, spoke much we've just focused our to in our through, of terms more continued

There our laser the a right customers is pages, getting learn site And online. brand as on, down just engage our to finally, more our it itself landing with service comes focused improve for us products. for and customer us get on our engage better they about as to well the it opportunity with site as as we journey, they the tremendous

here, Got bit gross nothing quarter. Thinking it, that's much as perspective. see about as a we're continuing of pressure, little a full but in to the first margins

Going with improvements forward to operational gross to all made? start expect the margins you've positively would inflect you

well really yes we, let work first efficiencies the say as more chime on business, Craig of in I very done trying economics overall squeeze the me just pleased we're with to out to terms terrific a have in I done do and of are out can aggressive as we But as mode. of maturing are both growth mean, in getting much well. Yes and company. clear, still very company want all scale not John team in this mature we've we efficiencies, his a be the and job

We that to is to as will do do get in want invest our regardless. scale creates choice we to and growth add we're you growth we anything? priority. margin growth efficiencies opportunity believe now continue for and So or Craig, for optimizing still continue some that

want second to positional in to some gross that improve. agree bringing that efficiencies, continue Yes, completely we of adds are the be no year the going equipment I on is more add what and with so do margin we to I the half expect you to should

being and going Can more some forward? last you regarding stock-based going for to about should it time what's just think in like G&A Got G&A G&A. me some how then as the color the we particular the in had excluding material is question reduction from actually comp there and looks on give line you

I brought since I joined company. obviously substantially Yes, mean, the down we've it

were we then and heavy back just improvements little in for had and said efficiencies opportunity a I As tremendous top G&A.

we we've been helped able that to we - the in grow the been we not with we're just has the Craig, level. going of? at successfully require to that anything do a think some I'm expect going to able I corporate more of what which thinking investment you specific as have, be labor grow business have areas more obviously business and we've it's lot

when Yes, transaction. were compare prior in a related you're year, to they lot a the of costs were seeing the lot recurring improvements to prior not year of the that you it

as was So year, the that but to far a comparing do and that mentioned have looking to as may to as so few Joe due higher it we it little prior we're come the fill, just headcounts up bit, open year but prior transaction.

there you. now, for thank leave I'll it Understood,

so Thanks much Seth.

KeyBanc with of the questions. from question proceed Capital next with Our Brad Thomas line your comes Markets. Please

nice and here the year. on continued congratulations everyone afternoon this good Hi results

Thank you, Brad.

start starting you do and you growth. guess followup in more opportunities to we have reaccelerate for to clearing where nice what's and I found on opportunities where growth drive still DTC DTC are more operationally think efficiencies the fund going there, there greatest improvements on some some to to in wanted as I making the efficiencies?

lightweight focusing very when it's some in scale. operations we, and site take fundamentals look at I and honestly we've much been and manufacturing the you as early very just as mean, really to joined, I it if been chapters a changes, on content what's possible of it modest were Yes, really bit a up presented on optimization the we're more with was of

an do. I So can there amount think we enormous is

relaunch platform And brand a our up I and to are planning a mentioned relaunch relaunch tune It's continuing capability. the a presentation. that remarks we're purple.com technical and a we in to that's design prepared completely from capability from

it's us mean all better and I articulating dimensions, about so So make on our really what's customer be we our effectively expect to sure servicing differentiated we're product.

it's Today focusing and very, side, and attribution a for pretty opportunity efficiency it's big that just mostly spend again better effective the really spend, much early slightly pages There's been but chapters. more on landing channel cross us. – on marketing of very

about That's accelerate that the forward great. or you little a the of wholesale you're manufacturing door additional And then online, ability potentially your next I pace as so? to could bit now driving growth year front, we and perhaps with door coming guess right on talk more look to growth capacity

the in, their load in ability and team for the our terms get the has range, well Yes, able to of been in well, spectacular beds we we've were growth so pretty – pace stores this just on on year to XXX been certainly regard. stores sub scale floor to impressive trained, of the very in Kudos has to and these considering bring the we ability the been end last in

relationship express expanding to largest continued build we as capacity, lot we with of to retail demand We our partners, see support a out Mattress there Firm. to They’ve from to our continue lot partner that. and continue of interest intend our certainly

well. around a regional express of to the interest players continue who as And we've country had number strong

lot deliver importantly make to our sure can continuing and are sure quality So make with cleaned we're Max X sure to we toward have capacity of we we're should X now our to fully we record that getting what most managing is done a we as early be up, Max are we it but mentioned now and big timely customers keep delivering to making we will where we've online. coming next our and operational phenomenal. That's and a thing X work year

then EBITDA financial And just than may positive and capital revenues to on areas me, a and great. forward? solid that you ago, outlook change from potential That's going both capital my you feeling any lastly footing, who question today much for more much want structure quarters about obviously more are couple structure, of the a

I mean stabilize from point continue believe balance well, We from to certainly Yes, producing we've opportunity in nothing the for good to and continuing that taken broader vitalize a view of to we that, structure to the that cash options many in and business. invest we're beyond we've work got of a we right explore there's continuing sheet that now. have capital but on in initiatives, specific terms are ways mind and

so helpful. Great, much you thank Joe. That's and

next your question of comes Peter line with from the Jaffray. question. with Please Keith Piper Our proceed

good so Hi off everyone. and on guidance, I updates sales afternoon thanks, start had the the of a just outlook. questions, couple raising nice with for work

acceleration like more of in was maybe wholesale the a first some implied pretty from is or you to So I be DTC further? a compares just little even mentioned it there back function this stronger and looks half that, as half should get the or of color accelerating easier year the around hoping is

first your questions. think all – of it's Yes, Thanks I hi, for Peter.

capacity. promising. expect to strength we same-store be see amount Max are store I I ramp to it's on coming so just meaningfully got a line, will the on is footprint, and X stores stores of mean sales in that floated of the few We're of mean add. side, above. existing and think With we've wholesale of expectation a the little more we've to significant to number those new continue our continuing more decent a I all and continuing in

a we fully as and opportunity. we're that's terms digital vesting expect our had a in in see a we've we meaningfully we're that capability of now out and wholesale shifted that will bit there, we're the spend So demand again in in our spend – supporting lot marketing back sure of got we place earlier mentioned increase the against investing to the DTC, comments, and we capability And into I making team perform. do in

Okay, that's helpful.

becoming the have wholesale looking seems was it certainly been of is back If the that does digitally it popular get native a we the you the more where year negotiations one more to of themes becoming you players, your native door like you momentum players to amongst wholesale be are at little finding with competitive guys go go side out? on feel you ago, Looking a like some impressive. that digital or a broader bit opportunities, yourself to growth proven some are just seem you've may starting first

great is we players, wholesale, year of has you distribution for on really as last the think which mean both. of strategy of we much think boxes newer and to that. is which what is this said internet getting into and of what of it's the we little CBT on were more as It's a Yes, a end question we you game a inches presentation. I and of been started was a model I at and early observing lean [ph] a shelves linear would thank of

which could a to as presented on as as group we our it worked, our partners and on was the been a market single a felt is, we what as customers retailers differentiated in product the in a it many target a and is get we to partnership. helping different had educate on floor goal like it, well and of different we found kind and And that, in meant we do was strategy way that meaningfully that demand was much our are close could we of to try get really very different that of to terrific but in we'd as saying lay display have our biggest it and Ours and to premium beds present the a customer. first that domestically

converting are But stores and we also, we our terrific, well. into think we're foot traffic and that's significant partner driving

of been the it symbiotic sales – retail has driving very side doing really the we've it's on presentation we the So understand in brand driving there our but that and been and and great associates part are who traffic. product, benefits got our out great foot the demand

get Okay, or question on XXX, Chinese helpful. the imported duties a your of if ton assessed just have even just thoughts the any those to were your separate wanted have that's year The you I of you no demand on antidumping think may that impact how next on better mattresses, XXXX trends they or guys may duties exposure is, or Joe don't two? out but not on the sub sub looking

into push capacity us great components like overly as competing for domestic that stated, we more impact Its, significant in certainly really overall all we on we U.S. our bottom have concerning. shift number building hit domestically, let U.S. us. of seeing as will a we're of we're a – overseas you in been market lower manufacturer think But and some the been cost We general scale it to manufacturing labor components and that where had has and since for seen as and the domestic do some I sourced do bottom has mattresses I fully nominal think think sourcing that as we've I mean but What shakeout immune that you've the we've been it nothing does. just not it's really these as portion market the pretty more well. we I us foam imported the hasn't

Okay, very good.

helpful? players guys would relief pressure front, to starting be some like viewing It some costs? some on seems are Lastly see you from insight downward how just input that on there are me, certain inputs,

type or…? inputs on raw inputs materials On

that's materials, raw right, yes. Yes

and right the to John and terrific had continue Yes, much we've able that the a part and that mean, helped. grown stable strategy think I we've negotiate have we've we, partners, done. terms better to think as been – more has work this and scale picking of in is and team his sourcing have both I I better and

able some helpful have are China I some been go to risky not overseas, found some have are by which we've dramatically necessarily less going areas to been overseas that product. into core there we has the opportunities to our things on been little on costs lower components think less packaging and to areas able of but as we into, in certainly quality

there which been turns of So quite is flowing combination bit margin our yes, maturing the and of into it what's it's headroom a just part a improvement. of was out business

helpful. very Okay,

I'm example perfect it, been out while a in just point have of get also we labor more able other that. One thinking to of general of is

our able in significant increased have competitively labor have reduced per attrition higher more unit. the means been have cost labor to a result labor we're improvements We as which we've and pretty getting rates meaningfully alongside and labor stable that the dramatically, and but quality truth

up lot. right, All work. that's a the Joe. helpful Keep Thanks good

Thank you.

Our [Operator Please your from comes question. with question SunTrust. Hughes proceed Keith next Instructions] with

made that's big several Tempur-Sealy the they have back position Firm, had to do obviously change a on XXXX? the do going Mattress floor, references any you how to to feel your have You product of putting in affect

you. Yes, Keith, so high thank

customer So they've I base. Tempur general I we've discussed that a they a great mean think got a think internally. we and have good view lot is has sure something and I'm our obviously discuss we product

a and our against into customers record is for up setting happily Yes, into belief and track that bed there for we've mattress put looking offerings I firm we'll is their good good a very Our more premium with momentum lime got proven think fleet. there, bed us. getting premium our in the qualified store any out

I positive thing. a overall think it's think we

as expect a don’t this? lose slots of result any to You

whatsoever. as long no has that continue and see we've strive any see lean more as expect some slowing, of meaningfully for to don't to Retail roles sign to continuing decline we and so convert see we continue we're and traffic stated more to into and And whatsoever we fundamental and both stores.

numbers, the on congratulations Okay, thank you.

so you, much. Thank

Ladies reached like back the Joseph and we and turn end would gentlemen, have of the closing for to Megibow question-and-answer I session the remarks. to call

against and strategy with our executing customers. our we and are to a ongoing amazing grow our that. and is ability still happy Certainly of initiatives. regarding with support we execute so you, year is planned to pursue the reiterate working. very for we we foundation very to Thank continues successfully building products to pleased I've have continued many state our much that believe the and more growing thrilled are progress and do confidence this our our We're to demand and

work thank for and results. I'll and their great them a have hard again positive We team

thanks So again.

conference. today's concludes This

You this time. may your lines participation. your disconnect you for Thank at