Sensient Technologies (SXT) 11 Feb 222021 Q4 Earnings call transcript

Good morning and welcome to the Sensient Technologies Corporation 2021 Fourth Quarter and Year-End Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions]. After today’s presentation there will an opportunity to ask questions. [Operator Instruction]. is event this note, being recorded. Please now Mr. would like to to over conference the turn I Rolfs. Steve go Please sir. ahead,

of website results. Earlier presentation the of release and morning. Good our investor Welcome President, Officer. Financial am President Steve we morning Chairman, our by copy to earnings this and Corporation. Chief Paul Officer XXXX joined Chief Manning, this quarter call. Sensient's I'm A released Senior available Rolfs, Sensient I at on our Technologies Sensient's is fourth morning, Executive fourth sensient.com. quarter financial and Vice

and our During operations differences of measures information in to financial XXXX impact statements. made believe our press adjusted including We for investors the measures the to I to our operations like to costs removal results the as this release. divested, related investors or XXXX would the review and results reconciliation improvement with morning. call results. comments include today, evaluate evaluates This questions, our comments financial results our the non-GAAP in most the and everyone remove may responses in available A also to this These is of connection COVID encourage how the the morning, the that forward-looking we information with impact operational time will of and be your management accordance remind considered items reconciliations reflects the the divestiture-related make payment. to be these employee We we comparable in explaining and calculated and also substitute performance. isolation performance financial reviews should company's between reporting income non-GAAP financial GAAP from not of improves a with directly for provides additional comparability XXXX and between costs, periods. the The the these results of adjusted of the plan, GAAP results company's GAAP.

logistic the a particularly to normal COVID-XX activity, in uncertainties of at of timing materially, created of current differ for that read impact Please may to factors SEC results could forthcoming description our and our related you in a view We including by analyze Sensient's bear filings our the and additional XX-K financial the mind more attempts potentially return business our governmental factors challenges. actions, pandemic, urge comments when you actual Our these on of impacts economic today. remedial results. previous

Manning. Paul from hear we’ll Now,

and local we we very our Thank fourth adjusted you and quarter Earlier today delivered results quarter Steve. Good currency fourth of currency report to growth released revenue of morning. that I'm EBITDA pleased XX% growth XX%. local adjusted

have our continue to outstanding from fourth groups quarter. in growth each of We the

follows growth growth. group's and adjusted end growth revenue local EBITDA, X% performance Our revenue currency outstanding XX% adjusted guidance and above finished operating adjusted Flavors had local local The currency XX% the the Group local operating growth. XXXX. local and an our XXXX. top full good achieving XXXX following adjusted company Overall had local local very communicated we at adjusted in currency currency currency of growth local and currency revenue, the exceeded operating adjusted profit adjusted with and Color all currency currency year the or performance in X% XXXX were The had growth. in performance profit X% of EPS a year and adjusted profit the Extracts financial X% XXXX and guidance at Group local XXXX it exceptional currency The adjusted of strong start revenue

of Flavor profit our growth Solutions completed and completed of of acquisition quarter in Asia adjusted the XXXX the XXXX. Pacific of we reported and adjusted of We last quarter third the local currency XX% growth divestitures of currency three revenue second during XX%. the local

Our execution, last the delivery few service, customer years. product focus been sales factors our significant on over growth have and for

technologies win for strong. robust portfolio sales colors our and and positioned has pipelines delivering and us sales rates high flavors continued of our our growth. natural remain Our product groups Each are of

As continue to challenges supply input materials, couple we see raw during such energy and chain of last a our calls of transportation, mentioned labor. as costs higher number including

We continue logistics. delays to in experience

We holding lead customer are materials stock managing in key and safety support through these issues our raw by investing times. more to

We increases higher price to the costs. to cover work also through continue

sales that I delivery. but with We in quarter. The is adjusted local expect Flavors pleased products will am This solutions. lines. to value currency chain quarter reporting time wins or fourth growth. throughout customer finished challenges. currency almost of solid and direct Extracts X% strong a supply profit continue the local product revenue currency doubt seventh is new fourth result local Flavors these Extracts we is and added generated in adjusted growth XXXX overcome more better and these straight mid-single-digit challenges across very product This The growth in the have our of XXXX and quarter the no I the on growth growth Group all revenue XX% adjusted

colors. group's flavors In ingredients recent the full in product is basis most product categories. our was as yield strategy. points and profit and I on the XX.X% will increased Group XXXX hoped and fourth XXXX. group foreseeable currency and in to the and both local in lower half well operating natural saw flavor profit revenue first for to We modest the and personal I revenue pharma and and The XX.X%. of in the margin The onion food new Color margin of had harvest sales in and mid-single-digit the its growth for for natural The business annually. was care. is launches extracts basis in product XXXX. the also growth quarter. our an year Extracts delivered of growth ingredients and the in XX colors from adjusted have year we group in local XX% headwind double-digit exceeded and than growth XXXX. XX% for the XXXX driven business growth solid a growth targets deliver the executing Group XX to future, outstanding continued by and Flavors pharmaceutical good and portfolio quarter currency expect For profit is profit on XXXX The points The demand group's operating revenue improvement another positioned adjusted The expect XXX adjusted food group robust

customers and We and conversion a care good color COVID-XX. already quarter first double-digit ongoing our expand continue we business year pharma care to have the of portfolio In product natural personal our our personal to needs. another their The fourth had growth. strong to XXXX, be I support fully XXXX. the impacted in food business continued anticipate ensure half will and business profit double-digit delivering revenue by robust

categories. second body into XXXX in other business care, nicely. and has skin rebounded on the half However, line the diversification to care, The group of continues product focus

Our expansion of personal help portfolio fuel the the for should care consistent growth future. product foreseeable

addition care, personal the Color of to the direct In believe in in Group innovation, and result a we rebound the customer its is growth sales on service. that execution, focus

long profit XX% deliver Group in the and XXXX over term. continue the mid-single-digit operating an We growth expect at above margin revenue to or Color and to

and local currency Pacific currency in growth Asia adjusted The local XX% XX% outstanding quarter. had delivered growth the adjusted an revenue profit XXXX. group fourth

color with sales win new our focus fourth very almost quarter In I and the over pleased as XXXX, XXXX in in the execution, Asia customer Color had demand XXXX. of high a sales We continue rates and high service, to I'm flavor see on and to Pacific the all strong digit long-term. mid in technologies. single of to result our regions. expect deliver revenue growth performance

and focus sales Our wins in driving service execution, on and group. customer sales the product new are experiencing each are we diversification, growth

increase advance to in in chain supply This fourth in ordering our quarter. an the customers response our the benefited seen have global growth in challenges. We

significant actions in the We to I our have input pricing more implemented in to impact expect offset which increases XXXX costs. have

a baseline, expect XXXX beyond. As deliver revenue will we in continue and growth mid-single-digit to we

our divestiture and our markets; With focused strong personal previously portfolio on announced and our we pharmaceutical, is activity food, of in customer care. XXXX, product completion key the remain

internal that future very have growth. should opportunities We investment good drive

result, number quarter with million as in of the business capital in a projects. is completed Solutions We As range in million $XX of the the and proceeding large opportunity $XX planned. of Flavor XXXX be XXXX, the third expect investment our of expenditures I of this acquisition a to to integration

additional currency We're of of our optimistic details at the now the end provide our results. for quarter very XXXX We you also Steve to and used will continue business. year, guidance top opportunities. Absent fourth financial adjusted with happy future acquisition and I'm down pay have the local I'm evaluate the other to we will cash buy sensible our performance XXXX. with stock. acquisition back be and option to debt, in about excess on and the

you, Thank Paul.

was costs and approximately GAAP results improvement quarter divestiture Our Included in the of the $X.XX fourth share operational per cost these $X.XX. diluted of per plan. earnings share are

In results approximately fourth the operational and divested GAAP XXX,XXX $X.XX year's payment our divestiture, quarter of per cost, Last share the quarter one-time XXX,XXX related include a to employee revenue in earnings which decreased included quarter per COVID addition, approximately of of fourth by last XXXX operating the of share. GAAP improvement expense operations. results year's and results fourth plan

of to divested of $X.XX our approximately GAAP the included related In approximately XX.X product and per quarter million fourth the in XXXX addition, revenue share share lines. earnings of per earnings

revenue adjusted an was currency increase in compared fourth of consolidated XXX.X local quarter these million, Excluding to XXXX. of items, XX.X% the

up quarter and was up quarter. the local adjusted currency EBITDA XX.X% for XX.X% was local for currency EPS the adjusted Our our

our an continue strategic our quarter. strategic investments focused down shares was on stock will expenditures to inventory inventory operations remain from capital XX ensure Capital to million and levels, working and persist. the and approximately the in primarily flow cash during in stock as fourth company have $XX optimizing in increase make We in XXXX in we safety logistics investments nearly positions demand due We quarter, purchased support Our our our in fourth position of we supply appropriate for chain forecasted for were million. XXX,XXX XXXX. challenges XXXX to

down December now as adjusted of Our EBITDA debt from December to is XX, as X.X X.X XXXX. XX, of XXXX,

sheet position our M&A, solid dividend. balance longstanding in to a Our increased capital and attractive support is expenditures,

divestiture Now growth $X.XX. material plan our XXXX operational related turning to reported to anticipate reported mid-teen rate at costs any XXXX, do to costs we improvement our EPS GAAP compared in expect not or time, a grow EPS At this GAAP we XXXX. of

local be compared expect and EBITDA single-digit adjusted rate adjusted We to currency our to a high at grow we currency revenue to local up mid-single-digits XXXX. revenue, XXXX expect our our in

also to to single-digits our our of local XXXX compared expect be high adjusted $X.XX. up EPS currency We EPS

an EBITDA be our rate basis, On quarter-to-quarter and tax to with rate our on the of quarters we Based we a our is at XXXX. $X.XX of we in be a adjusted year currency believe will XXXX. roughly three most with expect local measure first important line continue our of exchange growth to impact to the Looking performance. XXXX that headwind of expect our fluctuate currency rate, rates, approximately current in in for therefore the

aware, of are reported strengthen began Our the include many as currencies results the your quarter and other this you impact Thank U.S. currency foreign for in dollar the you fourth of of translation XXXX. time against morning. to

call questions. open We the for will now

Thank question Instructions]. Please first come will the Ghansham you. with go ahead. from Panjabi [Operator And Baird.

Good everyone. morning, Thanks.

Good morning Ghansham.

first for a And comments did customers benefit quarter? much on how price impact the bit the that the do during can fourth advance, how year? us segment, also disaggregate you see give it in next contribution your you dynamic that, of by volume sort you particular quarter, more on fourth ordering color segment any does part unfolding just then Paul versus in this could of

Sure.

were was so or look up single So, digits. about our which was XX%. digits to X if QX percentage roughly, volume, high X% so you that price is points we revenue at say single low in

So just breakdown price first. the on volume

a groups, say, that that at or a Fairly of X snapshot if percentage price their percentage could might've across build. was of Colors ordering another groups, little had each component an the look you therefore January points. and a typical Flavors bigger about from what of in excess in date of stock couple number of probably beginning of were Now you Xst. Asia points. as alright been price demand much the a ahead of is their Xst, Xst impact agreements as dates see anniversary words, XX% consistent of the Customers kind customers In in a other anniversary X fell you'll their of January be growth, would January price progression larger bit before

So fourth broad those of are how a brush down of sort that at kind for quarter. breaks the

healthy pretty think of about as guiding top basically mid-single-digit XX operating you're kind leverage. XXXX terms Perfect guidance you and for in line then towards and growth of

very couple comps, to pretty attribute the should quarterly good of XXXX? you And off had to? on run operating Just how did EPS an second that last inflation, a in so give where of then years material in and you what you we basis, the sequencing of leverage terms do end have raw us part about that, XQ think tough

on so product good I leverage leverage and operating get why overcome mix to its fundamental operating now Okay, the we're two, the is getting think we're those inflationary pressures. reason there price to starting

mix So on we've going well describe are where strategy to Extracts the lot in of realm probably on of on had focus years and the come but Flavors do the important side for C. flavors, that, would to been as the our the really These industry extracts of mix within flavors. traditional in was these very and more talking business and selling that company selling improvement run Those many local We the that regional ingredients. the was to we customers good flavor B described. a have really by was as what

I also beginning to I some see. you're the now attainment that again what So the groups big as and in operating each think factor. of starting well, we'll we're is improving But see with to price leverage continue a that's consistent the of see think to

be majority underway, our in start, cases So that a perhaps I are cases expectation have to as every are will completed QX good in even our but were a off of nice pricing that actions that of now many and well revenue for consider. and very sales very to forecasting. look as at QX to that the an you'll think sequence leverage think you growth ongoing us I continue to item I QX a But we're XXXX, from very, see

input on costs. question with inflation your to or second Now respect

get and a equivalent maintain, so gross would our revenue we If cover of price you and look we that to words our business price be mid-single-digit the suggest should other should total pressure at total margin. able even mid-single-digit increase, on we that, our our perhaps in taking grow taking inflationary about

should cost then of our that would those pricing mid-single-digit that's you So at That kind look costs be income of statement, cost. if side our imply goal. up the of

by about inflationary So revenues input. mid-single-digit up mid-single-digit on a

again you traditionally each that So, much move we there get in pricing margin that was QX of situation would as so be least in and fact through will goal leverage to suggest that the at as but QX, as think the operating gross maintained quarter would is the saw at and alleviate in that improve we not going that and I year.

Thanks so Thanks. your weekend. Enjoy Congrats fantastic. on the much. progress. all Okay,

Okay, thank you Ghansham.

Please question And will ahead. with BNP go Heidi the from Paribas. Vesterinen come next

morning. Good

Hi Heidi.

Hi.

please? assuming I'm mid-single-digit comment mean or and First guidance are you stop clarify say last to just that you I do then, mid-single-digit for volumes clarify beyond [ph] what first pricing mid-single-digit said question, could you mid-single-digit inflation. your you sales so wondering so what is just

you would that pricing, then that take so in scenario. mid-single-digit denominator our And the be at look as Yes, cost so mid-single-digit as revenue the in our it's costs denominator if scenario. on take pricing

in a And to gross taking that so a good could not by gross if mid-single-digit at reasonably since we price least the increase, businesses. maintain incident you an company generate margin the we some do margin see

in logistics very new price, I deliver then the goes there's costs, now. great And, continue a off you in some a so that are be tell we of as wins very decline driven parts to some good. are be that, of could deal but business for we Heidi, There's is to to start volume from of very, lot And mid-single-digit with the revenue. being logistics some of good the going confidence, There standpoint, market and the by price the costs on. those a year could upside right sure, moving can

So these on have some deflationary for him with impact surcharge you may or are of you a customer where example, upon reduction a items. giving the a transportation situation

not be year. taking the later You surcharge in may that

be the in activity then that inventory be in That later all wouldn't customers our that pricing be either. a customers board why their forever not the And that. could not factor year. to going across above and may necessary are course, that's beyond there's and mid-single-digits of doing it and building a forecast So phases be is

feel things But in could to very I comfortable So, those be again, consider very, future. about the mid-single-digit.

a have We Heidi, There doing to high confidence. want upside but we to that. been could do be of absolutely with ultimately some can I commit what degree

one, I touched then you. the next you upon And margins. guess, Thank

margins points percentage Specifically, in to drivers there of is can to a the in It talk please? flavors quite margin you times basis about expansion. talked and see about inflation, increasing extracts you so XX XXX unusual of

Very similar mix. and price its discussion. It's

more So than that etcetera, which related in it's Flavor we longer higher be term products command of in our and Group. related products may some the about general nutrient selling mix, tend more Extracts to the flavors, bio products, selling a selling margin of other gross

a the the shorter long-term there we to before our So as a think Asia feeding get as But profit margin. statement, has in on the that's as in I executed will general that. term, and XX% into for operating the color similar inflation well certainly we margin be fundamental pricing driver on journey that to operating Pacific. profit towards Very going also improvement hit dynamic

very, feel in it. I very ability to achieve metric this on again So, comfortable our

foreseeable inflation So level And all I longer-term, we've future. continue us. to whether gives pricing that confidence can to that mix we components, persists, able those great me the manage for broader, that think I the there but it's a we'll well think of success two persists I be or think into about shown do

colors, to makeup got there I colors? stand where if of please, during care you. more are is us levels wondered colors pre-pandemic go in in we could you. and you indication where update And on discuss, Thank makeup you off an Thank have then do the personal versus say in we cut I

Sure.

has -- rebound. to XXXX started and to make make very a the So care started really improvement personal nice half of back

I in think XXXX. nicely here going continue to that's

off to, are in We the care as already personal start look far. a nice very again, we so at year

their out. no all kind area XXXX. then categories back excellent there. are take say been significant broad across is was you an would emphasizing makeup. would tell If of sun down you you skin portfolio. all had XXXX category, XXXX, of hair, go categories versus let's XXXX really other, which really know, levels. body and We've to include and decline care. the that's care Skincare the In growth Hair can just I general, of our since There we stands that definitely above makeup, up care, that as in is Really we're where still we're the

XXXX, so versus to have XXXX levels. XXXX had nice not that And was sorry, improvement But up XXXX double-digits. a recovered we still the

as go makeup folks is see us So and away as future going masks market being perhaps the that out resumes. there positive again, can a we for start tailwind

there's personal makeup. is a that definitely or kind for in of little success but here. pieces I bit one some lagging So But XXXX care, category continued quite in an good the in improvement still languishing of signs in general, are think

Thank you.

you, Heidi. Okay. Thank

ahead. Ramgopal Instructions]. from question [Operator will next Please The with Mitra come go Sidoti.

Good the for hi. questions. and Yes, morning taking thanks

Mitra. Hi Yeah.

you're the implement just am you're confident seeing in cover having your in the to customers? I increases being you conversations terms of terms Hi, of higher able costs the to or with of in comfortable terms curious how price feel

somehow just of lot pricing lot general discussion smiles. that Mitra this into everybody's goes accepts everybody leaving there's I in isn't there's negotiation, world what of a understand that. a with is of pricing, of a feel to sensitivity, want I There in comfortable, and the and very everybody take you it Well, lot but

your absolutely business, thoughtful absolutely be If thoughtful about if about where you're you your input not not could pricing covering pricing, a you're position not costs. your lose in can you you're

programs. are complicated these So

products the follow indexes. customers world. You're indexes, many not in parts Many dealing products but many do of follow our with of many many, our of different

get simple And general, it's just but saying, very we're hey, pricing. so we're as comfortable in get the going not feel that as I to to going there,

market I the feel respect to be so good tell what's time of this just may far, happen And going that through but think continues I will thus in achieved -- XXXX. with I here. we've the course about something what to

had Yeah, an great. tight given hearing the of seems that on out any you've to no, was going and look manage front, as forward? really been maybe labor are like just a that's their inflationary year environment concerns having you that well, especially for market, you we a business. then pretty something from And costs I able impact lot On companies, very at wondering we this if

on maybe in general, think being creative a winning question of by has recruiting building I want good the we're yeah, have There's is the we world that's to a a left market geography. the that been and all -- we've So and been of have the come overcome the about been very from is the there, about companies labor, of labor. winners to. very in that substantially getting good Is and we very office, pursuit had In labor. out community that people other very, there are like we unscathed effective no very in we attractive We've company challenges type recruit lot side always very, work the and to -- engaged, of can company it successful, this vary challenges. labor, but house those

we've been our able to the majority maintain mindset And culture so staffing of good facilities. that I and because had, we've very think in that of vast

on work that. in numbers. think respect have can't Now places couple still that and through more certainly we of reason to sure, shift working be not have couple a not going the whatnot, that call this get in perfect absences continue I to to to particular why folks able and I no, tell you diminishing on yeah, but general It's the to we're deliver of we've like. But with and going been parts I'd like Omicron is seems many a disruptions I to I or and a fewer a world, manage to Mitra think through where we have that be

We work those will deliver around the numbers challenges. and we'll

finally then color terms last mentioned, a Thanks. the Okay. year opportunities divestiture you of grow as of on business. you're always you've that's maybe completed couple in something some M&A, just, looking and to And a you more did on deals that

terms in the curious, of you Just aggressive there maybe seeing opportunities that or pipeline expect out be to might we on front? how you're and

foremost, we're would need a find got sensibly to culture I say need first and there. but find We a we aggressive. return, we deliver We that can to work to company together. where there's a with win-wins work

it other by company so acquiring, there, kind of it acquiring from is may in can a market And working And for that something of then sees me starts sees with, we you believe a the fashion. do culture a that we similar that have dimensions company. and add consider

I always or a we said his accepted pipeline, we make everybody maybe, on companies have stages not sell a call, So wants and maybe as they're or her previous not with offers various company. to us, maybe

And can fill be in expand we're portfolio for that extent a so at acquisition an there to to through look. it may Look or gaps thing a meaningful be geographically gaps be our opportunity as to fulfill an well, opportunities could do. to to but the us continuing process

standpoint exclusivity good a is setting what, up from supply every acquisition. as know as an an you bit Sometimes

get something can we've be sensible this win certainly of we're that they talking we provided to kind price got and things so at variable could a a again And about win, multi where in we approach XXXX. this

for again Thanks taking the great. That's questions. Okay.

Okay. you, Thank Mitra.

go will next the from ahead. be David And Green with Boldhaven. question Please

Hi Paul. Steven. Hi

David. Hello

rates that wanted feel you for have of of that's products, account Just a drivers and a of that's moment few sort the of a question? questions wins a customer new -- me. seeing the already into may in It seeing year, exit as half sort XXXX, sort into get in come at the the just and new you're of you just of that wins, project taken of customers, terms that first sort visibility whether first moment strength from like existing from that sort into the similar place the pipeline sounds product of new or the to have you're at customers, XXXX continuation etcetera, the

Okay.

pipeline and a the So in lot generated wins we of quite is good XXXX.

your of add of I to as sales a those into and right here so this front the too. part, many you very, very February looking, January I'm I'm like look each groups. they looking know carry good And point, And super of good XXXX at we in in as me,

So to start. of we're the off driven nice in I think, A we generated new that XXXX. lot a by wins very

at despite product from some the we the in in to obviously X% about the up world X% here benefit around have that that of the able pricing, the quite to market words, markets, beverage launches North the of fact will launches have overall We yeah, the terms in other despite XXXX. still number but you the product look launches in success were America markets. In of I if do well fact and pockets numbers too XXXX, there's versus down, definitely were were

X% launches the down X%. you about at again, look side, or on Asia then Pacific So were food

So of of activities That's mixed a year in strong up very think the XXXX from of very -- uplift of the half into diversity absolutely the generate we us many feeding that. generating this and a in little terms very very year. of pipeline wins. of our think, the ones some first I customer ones second a big half for certainly but bag well, our nice see bit the of wins in and that nice build you'll should base be the customer’s launch some all can that and had it's given a products, I I we the And think we range focus

talked mix And more a the before I still it or of smaller, something you momentum about in of are between size, balanced? we sort brand and may medium on the global think the large seeing still customer bit and is base larger brands through have the terms coming

fairly it's balanced know, You overall.

the significant terms of in local also our tend regional selling know, of group type personal multinationals with more the colors brands our you tends have Flavors and we But would more customers. well. be largest as a in our to local food care. sort As the color presence dealing at either to anyway of or through be regional flavors

I good. everybody. it's And so is Obviously for activity not good think

out off regions. or we're of in You've think one size A, an pretty heard launches sniffing whether C read our customer for kind opportunities, good each I B, it's of the But XXXX. me at the

to is try of a and Thank what's about APAC And sorry has and for for strong of to really opportunity more in us would us some of sales be I sort seen region just Great. way a mean, then feel you. acceleration helpful maybe about, to get for think driving that obviously get color. there or to just there, sort geographic specifically? a potential feel EBIT that the more

Yeah.

So is guidance the say high-single-digit revenue. Asia, mid as you heard to me

a think I that's very very, achievable.

did You did really I'm Southeast delivered here the very of and saw now. looking across QX North right Asia we most really Asia nice figures well well. a our quite regions. at

bit group more it's think, colors. flavors focusing little and really I seeing selling an underserved natural about based of customers. selling of and we're broad So on success a It's about

XXXX for prospects in and just the good think I We're really of Asia surface. sort scratching So the beyond. are

lot more a for penetrating I there's think there. markets us be and accounts to

term? hard So, the of of sort medium or EBIT opportunity in at sort quantify stage this sales to

from and high Asia Well, better Pacific. that that sales can you or EBITDA for to EBITDA digit double on the flows take single mid opportunity whatever digit revenue from is

a that's reasonable benchmark. reasonable, think I

Right. Thanks very much.

you. thank Okay, David,

company back gentlemen, questions like and any no I over the remarks. for this time. there are Ladies would the closing to turn conference at further to

Okay.

respect you got items and These clarification corporate you as on expense. with and purposes brief are Steve's at tax understanding for going to of more interest and we've So couple to a XXXX. look

Steve, want So to… you

Sure.

I So items. to these get regarding usually how questions model expense

So I'll just address quickly them.

The would one first our corporate expense. be

compensation. As had towards a many we've performance weighted very of program you know, heavily based

more over to in of And one normal had So a we're increase have level. years. normal the has non-cash to this stock we as that line last moved resetting couple more year In level. item an reset about a that X compensation XXXX, really we based around at million

another So that see in comp. stock increase million we'll based $X non-cash

corporate year million. have And XXXX, our good XX we low be the in so in to maybe I'd if XXs, expect expense a

ask The will other people expense. about thing interest I is expect

interest or Fortunately, of fixed our now. a debt the right our is majority rate

run will the then finally, I rate expect but the tax increase provide be interest dollars. year I be discreet XX%. too there the So XXXXs in some see well. that interest was less. our which maybe typically increases, of said, normal XX% a items little bit expect we rate, little a little have out with we could a If rate to have rate case roughly And pace that a more will bit it'll mentioned it pace in about I benefit point XXXX rapid, a I is be I the call. about and is more a rate of if rapid expense, an of the than exposure, there's but that as be pace for million rapid that. don't tax increases, not we a is If interest much to as line in in

little higher, year, XX%. in the items full I be the to for a And about it So could but be bit mentioned. main I expect were those quarters some it

again foreign somewhat mentioned We and currency also recent item. that's

foreign You there. saw the a across the fourth but $X.XX mentioned dollar I strengthening number in currencies quarter, the headwind of

will everyone for you conclude for our attending. that, today. that with Thank for comments So

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

may You now disconnect.