American Outdoor Brands (AOUT) 7 Sep 232024 Q1 Earnings call transcript

Good afternoon and welcome to the American Outdoor Brands First Quarter Fiscal 2024 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded.

I would now like to turn the conference over to Liz Sharp, Vice President of Investor Relations. ahead. go Please

good and Thank afternoon. you,

Our comments forward-looking estimates other contain may predictions, statements. and today

of project, expressions Our should, like words use anticipate, suggest, identify forward-looking and to could, estimate, believe other intended similar is those statements. indicate, intend, expect,

and our products, statements and strategic conditions opportunities products to market growth market and also our focus, market and and our development, industry our regarding inventory statements objectives, product in in trends. Forward-looking demand evolution, share include strategies vision, for general our and our related

Our represent they different other materially actual statements Risk risks our forward-looking our the current be and future, are and are judgment described and considerations factors various cause to about that in could subject our to results filings. uncertainties. securities

documents call well of as replay aob.com. at those on website a this as can You our find

that contains and time any assume of call sensitive Today's time accurate forward-looking only as to this is no update statements. obligation we information

differ today. could statements materially our results actual Our from

I about have a few on today's note comments our important items to call.

certain reference non-GAAP measures. we First, financial

non-GAAP stock costs, compensation, acquired technology income shareholder intangible costs tax results assets, adjustments. implementation, and agreement consolidation costs, facility of cooperation exclude Our costs, acquisition other amortization

we found well always discussed which GAAP The whether our are non-GAAP can are diluted on measures our on posted are as we as in be EPS, today's referencing when financial financial they filings reference today's earnings call, release, measures, to reconciliations of press EPS. Also website. fully

and Brian President is today's CEO; Andy us Joining call Murphy, Fulmer, and on CFO.

over With to turn that, Brian. I'll the call

in progress long-term and management Liz, objectives. with solid XXXX I'm which our profitability pleased and first capital joining execution fiscal thanks ongoing results, strategic against us. with Thanks, quarter reflected combined our for everyone sales,

remain and favorably the flat our cautious generally buy about result and we open the inventories to that to compared dollars given view were that our available quarter. retailers met prior, continue in fact sales their Net to that the expectations

the are term We delivered. especially growth longer we pleased with

outdoor first pre-pandemic over and growth lifestyle, our XXXX growth Grilla quarter net shooting including with of reflected in our quarter nearly over sales first of XX% XX% of acquisition Our sports XX% in fiscal over Grills.

Shooting This firearm related basis, sales our year, from decline that year-over-year with strength category, related offset in category of by camping, a brands shooting a of outdoor The to lifestyle slight produce channel which hunting, compared our demand. a believe consistent success reflects inventory reminder, citing reports this growing sports prior just don't we in is the products accessories. activities. our shooting reduced strategy result, to in increase heightened a sports is ongoing, a which consumer a slight firearms, On of the in manufacturers, category result cooking Sports in business. to was net invest fishing, and outdoor our decline solid the only outdoor And and the rugged we saw consists our part and of

fishing to to strong, strategy product sales our store. continue consumers and and to our under whether our net intentionally from place supported where benefit growth in or our introductions in find brands. We them In channel, BOG Bubba was new online by hunting traditional brands expect

to are as to need many we discerning help attract with retailers bodes our well and replenish the traffic retailers consumer. inventories. today's by also activities destocking foot out encouraged for believe since seeking are inventory innovative We by more drive reflects brands result of convergence their believe we this It ongoing it of products

of delivered sales That Texas direct-to-consumer brands over they Grilla, total Grilla were certain Your increased Michigan down planned e-commerce net net sales sales said, Grilla and our Maker year-over-year, sales Net partially of these only offset MEAT retail were to total our due e-commerce hunting strong sales retailer XX and up other our driven $XX online brands sports quarter. of declined over in channel largest XX% together, year-over-year. million. products the in to for two and our two sales shooting and stores, Online MEAT! by primarily and of closures net online by or months generated the slightly trailing of slightly retailers. our

several provided sales MEAT reasons. quarters data and for on For Grilla now, three have we certain

First, to our performance its the for ownership demonstrate acquisition. of first since the Grilla year under

with how can exclusively architecture. a as launching been are creating Second, recently our the been has And to a lean achieve third, proxy and both brands thus sold since experiencing highlight of far resonating the to channel MEAT, inventory brand these success, challenges. for brands using retail we especially This organically well consumers brand case our provide directly DXC. the have is by

bigger competitors opportunity our competitive totals an easier Now, step important plan for begin in consumers our sales. it strategic Therefore, markets products to strategic these the to our of we note, to reporting and to basis to make retail advantage, expand moving distribution not them is the plan, This however, they direct-to-consumer exciting and that our near in brands don't our total (ph) Instead, in easier we intend to as the quarterly is as of make Grilla to detailed order It's that future. subset forward. MEAT us. e-commerce important sales wherever for data target brands access shop. to reach we've on by to allow in on going find sales annual a goal it and have an and our we our maintain our will into outlined plan

first our category. This slightly At see second the in the our the the orders they the We in half sale of in products back QX inventory result supports from the increase given retailers percentage the sales in environment. is POS current on not that time, also shooting the Turning which belief, quarter. in to a on by we data received lower begin down quarter, as our almost positive year. the data sports channel products from dynamic, our to surprising view of in a Point sequential a entirely basis same a indicates indicates replenishment of improved quarter, driven and products mid-teens declined will basis that of year-over-year. this an

our Innovation and our strategy. strength long growth in core a element key is

Our of Dock over new is expectations. In generated Pro first innovation Series the we or Unlock first BUBBA engine a last the our Pro quarter, our Fish XX% launched a & SFS. BUBBA two met robust, launched years process Smart new products Scale quarter our fueled by our that in net tournament-grade result sales, the officially

the first market. underserved release catch entry Our into and large

commenced Pliers Best sport ICAS League scale launch in the Bass its excited XXXX has and BUBBA this MLF named air can Hand season. Since been and Cutlery very XXXX, do the Consumer tradeshow beginning official Pro we're about Major start brand at Pro in or response partnership for SFS MLF was It's early was XXXX. but world's awarded long largest Fishing of Tools to May, filming and will that fishing strong the the with term. what game, competitions BUBBA has very in early Tour the the just the

turn that, over financial With Andy results. it I'll to to our discuss

Thanks, Brian.

QX, with included in by navigating of effective while and and All our sheet, net During continuation program, retailers. line that share line challenges fully the deployment profitability our on inventory outstanding balance paid-off sales management delivered our repurchase ongoing market capital credit, our demonstrated a balance with of we expectations. strengthened cautious

let slightly QX our of capabilities. Grilla. the the acquisition Net sales a strength of by and for are our results our increased with X.X%. million of slight the XXXX, me for we by so in demonstrates product $XX.X great sales sales pleased decrease net On to which million, last category $XX.X fiscal walk including you increased XX.X% through details. lifestyle in to year, quarter result, brands net We of QX believe X.X%. category is were basis, QX Compared new a our This compared a the pre-pandemic outdoor

shooting under sports the category have last Shooting to to result, Turning the X.X% is by Sports given with sales This decreased Shooting net compared firearms adjusted sales (ph) year. been in align Sports trends QX and the NICS Net great which pressure. tend results, just in category. a to industry too that of

online based go-to-market sales in strategy to by our design expect Therefore formulated them, was locations. find Our where consumer quarter in buying brick-and-motor X.X% e-commerce net whether preferences. XX.X%. decreased channel in On increased a place channels from in these net traditional or basis, first brands channel our on consumers quarter-to-quarter that's channel intentionally sales fluctuate and our to can traditional net sales

Gross last year. gross Turning margin points was QX margin. driven result margin container lower XXX primarily This to costs. inbound higher QX XX.X%, by in our at than basis freight for for gross came

to relating last basis costs. incurred by shareholder million certain advisory expenses $XX by were for slightly $XX.X Non-GAAP operating in expenses GAAP in stock-compensation non-GAAP to expenses. in last operating $XX.X as in amortization, intangible one-time of increase On The to to compared Turning compared and expenses operating year. an year. the million we quarter exclude occur. QX and they agreement cooperation freight outbound $XX.X fees non-recurring QX million up operating last decrease QX was year driven million were legal offset expenses a a to

negative last QX $X.XX for $X.XX, EPS GAAP as was year. negative compared with

allowance by recorded derived impacted our any to assets loss tax that due operations. Our have deferred treatment and was evaluation an benefit accounting expense from income tax against $X.XX we approximately our GAAP would GAAP from negatively removes tax

QX QX year, GAAP year. last negative and EPS of of in $X.XX impact, Excluding that approximately would negative in been have $X.XX this

a last at for non-GAAP this $X.XX was year. unchanged and On first the both basis, EPS year quarter,

diluted based shares. figures approximately on XX.X fully are share QX our million of Our count

Adjusted the to quarter count last fiscal fully full our will XXXX, diluted year. For we shares. million for XX.X share was EBITDAS be $X.X about million $X.X million expect compared

sheet the to now balance Turning flow. cash and

of pleased generated the to and cash fiscal demonstrate to flow we our free cash flow be with efforts first effective quarter strengthen capital balance deployment. and sheet. to continue further In continued operating XXXX, our strong We

and $X.X of We from quarter. ended of with of over cash We million, some in Let provide $X on repurchasing the details. million approximately down cash flow just million cash line in in our after resulting credit million and stock. operations $XX.X the $X.X for $X.X million me free of CapEx our paying quarter generated we $XXX,XXX of common approximately the invested

as to are while $XXX over this quarter, would increase design ended and million recall balance $X.X QX inventory the the on to quarter. $XXX capital above the we that planned XXXX. expect to first quarter hunting end with our seasons, scheduled levels the this as noting well, million QX QX, in them above we holiday Consistent and new indicated launch I our levels products fiscal last inventory You’ll We fiscal a total move of our our bringing by increased in worth rise be plan, later $XXX for year. credit, inventory as that fall well by $XX support levels million outstanding line of million. and It's million no below $XXX QX do to expect with million in expandable available to

We on our expenditures. product spent as patent now for $XXX,XXX first capital a the is project mainly to for CapEx quarter, costs. over Turning reminder, tooling complete. And just and ERP

and XXXX, million and product For $X.X to expect $X.X between we million full for fiscal spend tooling maintenance.

we the assume our the full of million office range purchase expect such fiscal total $X.X in $X on we Therefore racking, addition, approximately facility fixtures spend to furniture million XXXX spend and lease warehouse million. CapEx at in to Missouri a we In as Columbia, other January one-time of X. expect assets $X when

on per QX, returning Since our almost $X.XX. In The average capital September. of shares, time. our quarter, to of authorized we repurchase the average to stock our repurchased allocation we program priorities: an us three all roughly price is to first the allows we last strength XXX,XXX shareholders at sheet balance at the have based and growth, of to organic shares by $X.XX our capital price through or most continued at repurchased an shareholders opportunistic capital return of shares program roughly XXX,XXX the In began, employ X% M&A what board share. of

we Now turning to our outlook.

product up deliver launches. to distribution continue fully share of net and expanded by believe planned could year to sales new supported market growth XXXX X.X% gains, that We fiscal

in that of the of to following QX decline for QX, fiscal growth likely will due in revenue expect a We begin in first XXXX. year-over-year shipments timing half

in by fiscal the as XXXX. as As a coming quarter, collected to higher typically and than with net accounts that and and highest QX an in corresponding business QX reminder, expect in typically sales a the that of drives sales we QX year. quarters, QX QX decrease and continue This our QX, in follows end pattern with increase receivable in pattern the seasonal pattern a cash the net fiscal cash lowest

Turning gross margins. to

from flat reductions remain increase that XXXX to EBITDAS higher costs. we increase fiscal will and implementation for XXXX slightly, fiscal legal much believe factors, offset our to and by in OpEx, We gross on OpEx from distribution IT mainly facility advisory continue to ‘XX could fiscal compared as these expect X.X% consolidations, believe one-time costs, to to Based we XXXX. margins selling fees, and as With fiscal fiscal regard overall our adjusted XXXX.

earlier, final due small one expense, incur fiscal note GAAP discussed allowance each for to I we income XXXX. of One a income amount to tax tax remainder valuation for the quarter of expect purposes in expense

our please the analyst. With open from that, for operator, call questions

We Please ahead. [Operator today Instructions] Our B. Riley Wold session. with is from now begin Securities. the question will question-and-answer Eric first go

up the for from flat one, QX -- Thank you're just margins? on on I looking guidance, on the that expenses, still months expectations changed from right just this lower call, freight ago? I the view consolidation. you. to from Maybe Good questions. two for where you has benefits recall or remembering given gross margins afternoon. one year what facility Couple guess, of your be were the from

This first that quarter Yeah, we We expect question. off Andy. in QX. higher some is of kind variances did amortize Great in the have to Eric.

to expecting you turns. offset and a down margin works over QX. of we're little bit margin, increase gross inventory will function that in just our amortization in of really QX It's a be So our how saw kind the

it. Got

terms what data increased the bit demand Okay. seeing sense around of by give in little any major if their little And you anything any into dive you from price the or -- bit, then -- of points, digging some you're terms of increased shifts that into a confidence POS in the a consumer demographics? concern

Brian. is This Eric. Yeah,

of right? points, so that specific play. brands least price mid wouldn't we're see, I I our of in price are So we to much, say can that at that most So point, at data kind guess, the much seeing we high to where variance

that consumer be maintain somewhat insulated So more still that items. than the price we a lower view seems to point

point related anything, some I you price can't outside ones. Is have lower about a anything to question to speak really price particular POS? of So of those else in that there it

would concern differences? you're categories, in any maybe mean, maybe that increased that maybe underlying give I of trends of kind seeing terms price outside demand regional you around confidence the or product of

trends least quarter we relates in current mean, pleased I slightly with they I as pretty said, have were think like while been, we're Yeah. shooting sports down we're the to seeing, flat at in what POS it outdoor lifestyle.

this most between are selling we those the outdoor to at seeing impact categories, So in But but I'd those two some say that at lifestyle -- the seems product that sports more think and seeing I time. be stabilization retailers are a shooting are this resilient point. bigger nice of

pretty outdoor seems us. to So well well. doing Hunting better. in particular outdoor lifestyle, be lifestyle Fishing then for been has been pretty doing specifically much doing within And has hunting.

to seems now. very whole a lifestyle much So on outdoor I'd be right say better

it. And final make question, it. on just an I'll effort then Got

and subscriptions, Fishing any scale the With want of purchasers or to too you launch early? anything it app indicators downloads little data around, still rates app launch, scale a early attach it to or points the throw BUBBA is or

X big for we hope night, MLF plans It's the app obviously early. huge that I'm mean, stars has with The said, it's for store last positive. overwhelmingly With within very MLF I One, the got, and ask that Apple. gosh, we've been excited got because scale. some a us It's on huge forward. the going deal consumers partnership the that question little reception a about deal look for is happy and also partnership we're the a you

very the for very, because which just we're happy very about a reviews, product, technical XXX to increases close stickiness. very, think that I

far, little that So exceeded a but of to too our it's early begin think expectations thus I it's some still data. sharing

Got it. Appreciate it. guys. Thank you

Yeah. Thanks, Eric.

The next Smith ahead. Lake with Street. question from go is Mark Please

Hey, today. on guys. the Sturnieks It's line for Smith Mark Alex

the quarter? space guys shelf brands retail your any retail you feel talk the have off, you you how additional your maybe performing of And guys for Could then discussed entered locations products you there? about about and well. more kind first Just maybe channel in

Yeah.

hey, this Alex, is So Brian.

we increase within quarter, did say an international retail, I'd So sales. in see the

traditional So was quarter. maybe of was X.X% the up in slightly. on the a E-com down traditional side, little about that obviously shy

stores. retailers, doing pretty seeing So at good as were that -- significant ordering. more and retail a was increases traction as we of years are some with Also people physical of over last stuck reminder, traditional the e-comm some pretty had couple home

terms in of driving market share. But it what's that, is

way share the We products. market of new categories. are define several through also in seeing is the And introduction that we'd

on a product know, focused So as you we innovative very and new launches. are, company both

us more reflected believe is able to And of be those certainly that. in numbers. even for to capture maintain so and We

Yeah. That's helpful.

do historically so So products then feel of and the distribution BUBBA of about inland more as of well? the more line then the markets in too, how kind new products on both like markets also you in coastal

yourself. Have you're That's a question. great been wondering if an great, angler Yeah.

one the was and bought a to it had it brand focused your particular coastal when of in challenges was on fillet mostly So knives. we BUBBA we was point,

other And do in after more And we much so to how that to DNA. cutlery which and ourselves, take with tools. we our go So this that we goal inland the was and larger brand, started is related market? market thought freshwater, take obviously items saw introducing

lot us, And it. so know the smart about I fish talk we scale a for

products. sick something it if that really us establish and entering to to best point. then through it's about our And getting with coming market. do like talking that, it behind a innovation of But probably way other of beachhead was You're at it clever this want you

the to it's continue important us, brand BUBBA that introducing consumer. beachhead an for So to

BUBBA look of Google the example, you salt. versus were at if and versus freshwater BUBBA and blade Trends, some look products for at like So to

going to begin interest that especially climbing You're the lakes strategy. country, is things middle it's and part really around in this there sort see to of of freshwater of that and

think strategy crossover that has been it's fresh and brand from But pretty to our from that and I of that's So right cetera. the et salt, rare a for to we're of now. to salt fishing fresh seeing traction sort

we've brand, penetrated U.S. store coasts for very we're from on the of BUBBA much adoption being more So the middle the the seeing well level, at in the certainly, and gone

for Yeah. quick That's awesome then last hear. And a just to me. one

improved looking your drive innovation sheet around spending these kind about in-depth to balance products drive you your it's more R&D product seeming capital of how guys the a touched discuss allocation? quarters going new upcoming of you you thoughts there? bit sales, kind that in guys during with healthy. more some additional But little quarter, are could the Can to about go You the pretty see allocation or your innovation, to the with

question. again. is This chime Great And Andy, Yeah. Brian can Andy in.

our we and we of organic one kind very on M&A, obviously are paid maintaining on it's and our But share three. So, focused our as higher innovation of of down for being well et one in ultimately the the focused through primary margins buybacks debt strategies cetera. growth, quarter. are reasons, Obviously, organic we ASPs,

So of that, the dedicated part people product and even is looked high aware which workforce other I'm R&D that huge think to it's to my percentage are just acquire. and our some when have are I of a to relative mean, at almost very, about of in point, to development, a XX% your that, view companies gosh, XX% that of right? to we it's R&D, total a

is used think other consolidation into fact And bulk we total the to We've of a of through to relative why savings that moving R&D percentage have those one some is up our department. reasons I lighter the companies. versus so Columbia. some facilities the it

engineers of can prototyping some outsourcing most third of take functions, We've do in and even house. relying and instead other parties. the upon or property of those instead of designers incredible we decided intellectual leverage our what that have we in-house to So outsourcing really through and

up us gets It innovation quickly. this talked So we've lock market sort more about. to pipeline we can ensures of that that that

number. good there. think we're I So think I of a any dollars sales, I don't percentage it's But think as a missing

spending think show over fruit see it you'll pipeline the our as definitely wisely. I years will And of that. the coming

very helpful. That's guys. thanks. Hey, Thank you

Yeah. Thanks, Alex.

Please ROTH [Operator next Instructions] is Partners. Capital from ahead. question Koranda Matt with go The

the retail elaborate curious that going afternoon. year? to would I data could into Good with but limited into strategic timing it, points you the Wondered specific retail, in be guys. you the Is level, through entry full necessarily at with, any or this Hey, to whether MEAT. entry? know are the going Grilla if with on maybe offer more bit SKUs you just and I'm way quarterly there expansion some be retailers level be not a going set providing a that details, that just outlook retail into about of are said for higher on you're SKUs dealing growth very that's you're you'll factored on they high helpful. that of Just think

Yeah, certainly. Hey, Matt. Brian. This is

generate and So more it's have if strategies I getting one gained MEAT we enough to had, we're excited much known, at could about steam, we brand. difficult And the that an where value brand into mean, the Grilla MEAT it's If opportunity of place was are more well to the influencers when and a retail, unknown you're proposition. interest yeah, that get it's sell it a to behind trying retailers. certain you brand it one, has and very started we

You that's the case get and approaching to the point where are definitely opportunity. retailers with faced you a we're that

brands direct-to-consumer. when direct-to-consumer in we've and into over Your the same And about MEAT! a enjoyed obviously, we so Grilla, bring to tremendous just we've careful the been, have path. think been And we So very upside there's ago for those retail. We still bought Maker there. two year

that consumers is that front of of because in brands get to is part opportunity an the With there said, marketing.

exposure is Some certain folks brands. to their that

viewpoint we the innovation. and on by of been have market some to been partners very good the approached a we specific of very, highly have approach some so new how think with that retailers ours. And brand And have to

I selective who are, now. can't been those are. right And partners retail with those with so share we have you we

want small right that flywheel consumer, We've to the going start sure we too much go appropriately. of that certainly, the from the But come it retailers with and with soon. learned we're have into with And ultimately, assess out so on we've the go quickly, to retail that it sidelines supporting splash brands out do too sort sort in and built we're make certain the way of as seen right make too we forward. we sure then

a So, we're sharing but year be too this much, on we do cautious expect being some announcing placement. of little in of this that fiscal to some those

fair. just talked the in in the And back prepared inventory discussed about remarks that Q&A spinning and retailer That's Okay. here. a health maybe bit you to the maybe

Just a how demand data of seems cycle we're on about retailers I we've just reticent from and gotten off? is still pretty it like curious points replenish of inventory. take still a soft suggest that are lot recently how a mean, kicks retailers lot to quite consumer thinking that that and just

think probably you this you're thinking likely the of but plays as how out result the we maybe you know elaborate half get year? could just the if in how into said curious back to half about So I on more you growth, that cycle, replenishment year? back

again Brian to It's Matt. and question, Andy jump Great free feel Yeah. in.

on managed across have others that product the already. in of any seen brush others back many that inventory a of -- broad more they're it's faring categories think few landscape. aren't strokes better We're and One tale them bounce seeing things there's is, retailers a retail depending we've sort I that tightly than cities. are here. seeing We're the some there

before maybe When order sudden They're some as you but already in we matter consumer a still ordering. targeted And look that in target slowed of replenishing at are with flips reports. products, your at even inventory that All and looking flip, all like retailers turns ordering. as get to reach we're a of know. this on light inventories having a think start you've a of I the we call, replenishment. and the conversation of of has your year replenishment, a these is It's in demand do they those turns their number somewhat switch our not commented moving some it's their

out be up other calls seen So the online offense. haven't hurry really other that in two to earnings to successful to ones years or is look come had some to really the had three over fact that, to dynamic the I the retailers last sales that play is,

so a benefit. that gave And tremendous them

if the you look same a a pre-COVID demand, like. normalized assume versus same if at where or today, just level the As result, looks you demand are what we

more shipping. I well because retailers think you're able are going some to have who see inventory carry vendors may to they less who are run some do drop

that. lean So what that more same means of that is don't can for some They obviously the on carry they have the them assortment. But time, manufacturers they of of at can offer sort inventory. more to the vendors to carry

vendors dropship it the a what those that yet and looks to that retailers. with partner good and can have but like, do think capability of to effectively So, that seen I be be some

answer that we your see we'll think And have successful. Matt? more some I ability. those, that of certainly be Does question,

ways Andy, just been then one I in asked take has That's for Yeah, Brian. very guess the the and And different But over this think maybe Thank full lease in in you the as helpful, you. absolutely. maybe Columbia I past. facility.

curious about back think I the how the year, take half over? Jan should OpEx costs X, it's the Just in modeling since we be of thinking

to the get Great I question. Xst, provided can't up with over. that be really could Yeah. the X.X%. That built assumptions and is specific our January that It into we take than that. OpEx more framework EBITDAS we is

share extra what over then able be more space fiscal I into see think that you'll next when and to is take as we closer, we the year, we'll details. get the

I take as at you just attack talking see debt, just results. about a it's these Lots you good share exercised been Okay. we somewhat guess traditional the different crack buybacks M&A mean, Fair could now people calls, it funnel that I maybe guess the but I Brian, it of enough. today? clean, last wiped of And and with have on a then question. one, basically

M&A, about Are thinking our on appetite there be bring seeing market? how folks funnel more what like, What to valuation? folks should looks you we thinking the how catalysts curious Just about to front? the that are are there,

Yeah.

I environment of some One that So, a market is think run you like reached the has next have with sort own I But I now have people. in sense of of based bankers significantly. I then on that opinion get seen for of EBITDA rate the certainly, valuation my we've come And happen in, give sort of quarters that's they're And two right what reasons. advisors, the for few going deals I would expectations will investment maybe now. think on come forward. those our -- categories a companies, think to for And to think conversations kind sell-side by number which is what pretty they lowered. also, depending down have credit just

And run so stabilization, multiple before come back to they of rate market. they're looking for stabilization, sort

deals, With we that efforts. are continuing seeing said, fewer very, we but be aggressive are our to in outbound very

think that and out to picking the So highly want be people reaching complementary. I to go both after phone would we we always are Andy up that

And so that continues.

got we'll we're robust very of that I've you currently got a these very and Like where pipeline speaking a, We've and And see we've people those so clean sheet. were got we've go. with said, robust. a that number all balance a

side. in share We're capacity. sacrificing we're efforts repurchase our spot and also not on have the We a great

I you as So M&A. think. we're it when good be position in, comes a as in can as to about

directly. that's I I QX, with like. even the think to comfort what us of think looking on with And of year, replenishment That's and I QX, that QX looks from provided performance these to of we we market. And hearing barrel people about more sort look and that down start run -- in EBITDA sense calendar, that coming from give the based our retailers of very they sort more like similar us see today next some companies forecasts QX will know of and as public back that what what back. you're line think, to look, around us companies to then more of other they'll have Because have of speaking sort sight rate, advisors come deals I out,

there helpful. you. it I'll Super Thank Okay. guys. leave

over to concludes closing question-and-answer remarks. would session. Brian any like to our conference This turn Murphy the for I back

joining conferences, Best will XXth. And Thank we Lake York our on American CL you, make look September thank be of hope to In Outdoor across We Conference City see Ideas investor our the that in two their customers Virtual I quarter. quarter you on note, speaking forward in our you for closing, everyone for the upcoming us. Street most operator. helping XXth. next this Conference out Thank We moments and King matter. New and again consumers those events. September to the great of employees work with to participating at the Brands some for you Please want

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

now disconnect. may You