Altria (MO) 28 Oct 212021 Q3 Earnings call transcript

Good day and welcome to the Altria Group 2021, Third Quarter Earnings Conference Call. Today's call is scheduled to last about one hour, including remarks by Altria's management and a question-and-answer session. Representatives of the investment community and media on the call will be able to ask questions following the conclusion of the prepared remarks. I would now like to turn the call over to Mac Livingston, Vice President of Investor Relations for Altria Client Services. Please go ahead, sir.

Katherine. Thanks, thank us. and for you morning, joining Good This our Quarter CFO, Gifford, Altria's and Sal Mancuso, CEO, and will X business morning, months Billy first results. discuss Altria's Third issued results. we Earlier providing press our today, a release reports The release, and available metrics, presentation, altria.com. are corporate our at all latest quarterly responsibility

to During today, results stated, in period we're otherwise call same XXXX. our comparing unless the

various various statements operating on dividend Our reported of its accordance earnings Adjusted factors reports exclude from earnings review financial adjusted the release Please of future and remarks Descriptions a in results results. included results today's basis. actual our U.S. cause contain reconciliations and at forward-looking non-GAAP could these share the today's results results. items Altria measures with projections. accounting reported with of and that and and remain at cautionary altria.com. results comparisons cautionary release contain are materially discretion website end that statements Principles. to of Board. subject affect for payments special accepted and both financial projections will differ generally repurchases the Today's forward-looking Altria's to on call and Future in

remarks call specific over consumers XX to Billy. refer the to in consumers within age or or a of years references all existing adult Finally, I that, tobacco turn will today's segment or consumers, category tobacco to tobacco older. With

adult the core that smokers continued of third future. Thanks, Mac. tobacco Altria In realize leading investing Good from morning, with to smoke-free responsibly a vision the quarter, us. you and balance joining businesses, maximizing thank to to of for transition profitability our

significant by in from quarter. on the share year-over-year Our comparisons. tobacco difficult growth well businesses And retail we're third encouraged performed the against

are easy, to the determined Trade adversity, smoke-free to talented also challenge. share comes program our not industry up platform. and have recently brand reward with and We and but of is our uncertainty $X.X product today employees our announced dividend, We growing to our and with including the brings vision the also the not opportunity. IQOS. related to billion. tobacco are repurchase decision It expansion evolving, Altria transformation of knew on strong Both and journey single and a International continued or a to a pursuit The they Commission be future would based demonstrated shareholders

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remained us Our tobacco guides and our keeps strong us businesses and forward. vision focused

inventory our X.X%, share, quarter Let's Altria trade business comparisons despite adjusted grew and now movements. challenging unfavorable results. diluted turn year-over-year a its to earnings of backdrop third per

first of EPS tobacco and the For driven adjusted X.X%, primarily financial nine higher by grew adjusted the the of strong earnings. our businesses year, months ABI performance

to Our fuel smokable shareholders continues to and significant to return cash generate products shareholders return and our to -- vision. segment

We're understand consumers, to actions across adoption. tools [indiscernible] capability this and and Helix team our all our $X.X% grew advancing income robust on is this behind The but margins, the portfolio adjusted purchase remained first trade profit while well-positioned the Marlboro investment impact companies. that maintained months, $X.X for X position. operating all-tobacco in analytics to while drive decreased X.X%, The sophistication impact trial, the Copenhagen segment inventory Company's have of what leadership repeat the tobacco effectively Third reflecting believe quarter deliver to pouches, products billion its continued swings, the category. of and Helix of evaluate we accelerated In fast-growing strong. promotional nicotine uses

the tripling points existing of smoker excited since for increased purchase of These insights, share disruptive the strong we from entire and executions, growth. nearly by performance X and sequentially, reaching will tobacco consumers. trial retail to share pre third X the a FDA consumer and submitted for to months share by last results driven year, engagement its continue consumer all were on tobacco of end believe repeat We're [indiscernible] increased fuel first of point portfolio. retail full year. and the applications Last the during year, quarter on Foreign the -market the the

progress has in PMTAs, FDA received. the reviewing made millions substantial While of they

the FDA Blumen, pending. of the products, flavors A and all-nicotine these of of marketing products. still the marketing graeme first applications the of issued tobacco for for discs deemed authorization In for newly product Our public week verb that health. products and the our appropriate the FDA four authorized of on by choose. is determined are protection and flavor ago, verb This is the

total we continued closing for While be after submission versus our [Indiscernible] year-ago for products critical transaction. market, applications impactful activity. period tool We're modified of volume as completed sequentially X [indiscernible] only and We the in currently we and product in also not we increased on and developing products. differentiation transitioning educating harmful our were elevated increased would the following the believe category of believe an learnings important competitive the which gained of ultimately MRTP result e-vapor actively point are smokers levels to tobacco we on!. In compelling months X% and an in submissions an brand, from XX% for that a estimate [Indiscernible] working on! less on! risk the the in

had for is clarity decisions, outlook While PMTAs the of received uncertain. e-vapor on we future hoped as categories manufacturers still the

submitted the those the of including products, are applications most JUULs. by leading pending, still For e-vapor

influenced update expect buying Recently, impact to movement. the we degree cross regulatory of an Survey. be use category their e-vapor activity, potential the by CDC trends to which the published forward, national Moving tobacco has from

encouraged the by committed We're needs to done warranted use. the work decline. we underage use comparing methodology. our on of when progress, the still continued to signs be is and age,e-pay-per-use, of but Under year-over-year, caution drive survey’s to continuing down more results While remain shows, the pandemic due impact of including to jewel,

and to category IQOS available, heated refine states continued Turning products. The for headsticks accounting purchase XX% total smoker of third the program offers device played quarter, repeat continue the grow with Marlboro Virginia to lead in through of approach repeat the experts is The outs. smokers Northern for to innovative their new According Across consumers, support performance continued Marlboro IQOS a encouragement purchases. in exceed go-to-market weeks significant of last cigarette team Virginia share IQOS of of X.X% achieved HeatSticks our four tobacco. population program percent In to approximately stores previous penetrations, volume IQOS In to the were sales. with and tailored Northern personalized consistent market the four it's engagements. a role roll as retail distributions. the a

components. earlier, Marlboro to modified XX mentioned orders International infringing risk the unavailable ban looking public for HeatSticks, over to make desist received importation and cigarettes, tobacco is and Commission detrimental tobacco a this on IQOS to reduce switched and 's disappointed ultimately we As for who inhalable decision recently Trade imposed options The product the cease only ITC product. authorization all as is IQOS, FDA importation in million issued an health. and have We're have ban, smokers as IQOS, for the will alternatives consumers to the product

in currently in We've infringe communication U.S. are order. our the comply future. ITC's IQOS are been event to the did the vision. but by the to XX-day is manufacturing deterred on Plaintiffs not an with PMI reject those believe distribution the and We plans. to committed sales decision, continue administration as Representative. In smokers transitioning been the that with to that important patents. tobacco their smoke-free the The not preparing contingency work from domestic decision frustrating obstacle, invalid, remain plans not had the realize and ITC's We review the play can decision Trade a on and our under patents believe We category view it administration's surrounding we focused required and to heated on a we're role does

marketing to introducing expect we a forward, the gained from category. product we brand-new capabilities Going and and knowledge responsibly apply

learned consumers harm FDA established of reduced we've system as reduction in for robust required a surveillance the products. and to to and how on engagement the journey. U.S. I'm optimistic their tobacco blend smoke-free insights, behavioral authorized data on support smokers monitor to risk products, post-market Leverage benefits educate the to future example, For science, consumer MRTPs about

unprecedented of reasonable to with smokers We foster have of shifting from an follow opportunity innovation support and the lead way we millions the in the regulation. if cigarettes, science away

financial Let's outlook. our turn to

I'd also to are the and This deliver to rate to adjusted to of and Marjorie this public Matt policy, turn of over operations, range $X.XX welcome XXXX $X.XX X% to and expertise EPS on as range Davis morning. environment and the We guidance a raising They end a $X.XX. growth now X% our our XXXX. results. will of significant and be diluted in to expect base from I tremendous in a vision. business announced full-year business Board Connelly represents like more assets pursue of our to will now Sal combined bring Directors, detail it insights, provide strategy, we as consumer lower in our

influence discussing a the income quarter. by of the rising COVID-XX previous we the decrease believe We and programs disposable led factors gas macroeconomic prices, begin in inflation to to the tobacco like I'd relief consumer. Billy. Thanks, conclusion versus believe

sequentially. their We discretionary more per But spending. to In that store compared remained estimate -pandemic addition, tobacco the to expenditures increased unchanged trip At consumer retail, the levels, elevated. tobacco be consumers number mobility were for to pre trends continued consumer trips offered of depressed. options

the those behaviors behaviors consumer on move tobacco monitor we our to continue impacting will as factors insights provide We we and forward.

in our reflect increase was half than reported inventory and first quarter, to X smokeable the margins X for domestic the expanded third months. an XX.X% the the the X.X% the an quarter first declined of percentage its wholesale sticks. segment in supported in quarter, for point absolute Moving by third cigarette X% of more believe swing This third reported X businesses. for to in XX.X% OCI percentage to segment months. a The strong price volumes months. of Smokable volumes realization X.X one an performance net We first X point billion adjusted product XX%,

X.X months. respectively. that the third X in in and X% last and total the discount, a movement, in Marlboro calendar first adjusted As the differences mass depleted XX.X%. in in quarter, percentage other unchanged, first inventory points Domestic shipment X in X% total year-ago profitable X% for and we Black widening cigars, estimate nine months quarter cigarette volume category by this quarter & When the Reported the gaps sequentially of for increasing declined price volumes segment cigarette environment. resilient retail first months At by to cigar to and inventory adjusted in machine-made by wholesalers of at industry strong the the the share and by the dynamic fluctuate, macroeconomic In of retail level, versus a brand share In volumes the in large bill trade domestic continued third increased quarter. year, estimated X.X% to cigarette third remains X.X% cigar sequentially despite Mild third is an quarter, Marlboro XX.X%. period was the category. the we most inventories XXXX. the declined quarter factors. believe third continue both and And but

X.X% pleased with products Oral We're excited Oral by on, Nicotine Turning OCI margins the the shifting X.X% and in quarter overall reported category. Pouch on Nicotine about the to mix due third the volume and OCI months, Total segment, be es. the and continue adjusted margins between opportunity MSP first to for tobacco strong the in products behind the for nine to segment the decreased declines by Pouch for On and Third When for tobacco and the percentage estimated declined Quarter spending oral for segment oral to increased the primarily adjusted contracted MSP. X The third quarter trade by Oral for products offset year segment X.X last the and first the X.X% the share for calendar for segment segment X.X% movements decreased third continued third for adjusted category. versus in for growth quarter tobacco months. gains quarter points volume differences, first of as retail share in X the months. inventory Nicotine Pouch due Oral was strong sequentially unchanged an

our next. these factors ahead, into through hard costs towards supply year and monitoring this we're experiencing the we're of issues successfully the input procurement are move Looking Thanks to industries foresight disruptions. without several and chain we of end impact rising team, the and work to-date. significant Many as managing

agreement the modest inflation For year payments. Altria, the ahead. master could some in we costs foresee adjustment and our inflation impact input settlement to on have This the

our to short-term ability Tobacco are confident remained However, businesses strong and challenges. through in we our economic manage

contemplate our EPS financial in guidance, incorporate we of factors array expect into January. which reminder, to our an these and forecasts we scenarios to provide a intend As XXXX in

ABI. five-year of expired in us an over $XXX in investment our been original investment on half lockup the to The well investor since month. this the category Turning beer past million our extremely share our We've served has restricted XXXX century. earlier and

XXXX since over diverse $XX income contributed analysis merger of as a beer strengthen that $XX earnings, regarding has adjusted proceeds fact, over Sheet. investment. served contributed We've billion cash ABI and In billion and of from dividends both rigorous XXXX the performed our investment our Balance equity stream

and under assessed latest business our statements, of the of the the the financial to third quarter will the as third now share In financials, it the second, our to continue we we do First, expect expiration previously While guidance, of not expected. lockup. recorded to preparing for soon carrying as asset value to outlook part believe fully recover impairment recover, ABI of we accounting preparation ABI's applicable anticipation and as an price in quarter it

XXth down a investment to of at September As in have we $XX.X market written billion. result, value [Indiscernible] ABI

to due of is several view our of We ABI continuing the and factors uses by value ABI's strategic investment analyze investment the of as long-term consider as large XX% part shareholders. we goal stake financial our pandemic, rationale the long-term for as which a in investor our alternative XXXX has October price, than [indiscernible] decisions ABI category. considerations. the maximize Regarding the our we capital, of impacts in the beer expectations COVID including the of declined since investment, a tax our and around business, more share to

to We maximize our continue ABI time not long-term to maintain our have investment. we investment shareholder determined that this value. selling Therefore, would ABI at plan

experienced ABI's strategies, in premium We near-term continue confidence global to navigate team, challenges. long-term capability have successfully and brands, management to

years. long-term market evaluate continue shareholders. to analytical of remain shareholder to mentioned goal will the factors with monitor pursuit consistent of investment We this value and previously our regular value our our our We the long-term on a through and the creating conditions significant for vision maximizing and Estates from program in committed basis, of to demonstrated million share capital dividends $X.X St. Selling for the in and expanding by Michelle shares quarter, million. our totaling in returns, paying which billion we third $XXX the X.X dividend raising and Wine approximately the billion $X.X and XX billion times repurchase repurchasing XX $X

$X.X to XX, We have expect approximately share $X.X billion remaining we and under be the take which we'll repurchase by December your will and I to XXXX. that, happy newly billion up, questions. Billy complete expanded With program, wrap

quarterly other also our I'll include and While usual are calls on that earnings inventory, compiled, posted our non-GAAP you being are reconciliations release remind the altria.com. We've today's metrics, available and which pricing, items.

any Let's questions? we the have do Operator, period. open question-and-answer

in invited Representatives Thank question-and-answer again, you. participate to Analysts, the now Once Instructions]. reminder, a Media and Investors, as [Operator are session.

the community first. questions We from will take investment

ahead. first Stanley. from with go comes Pamela Please question Our Morgan Kaufman

Hi. Good morning.

Pamela. morning, Good

an question managing very RGM quarter. discuss you're PM levers in strategy of L&M Marlboro Can been differently net how what I by a and was that drive you're net realization your driven has around net the doing you strong managing USA to pricing, the and pricing much from price so how this growth you're had versus growth pricing on perspective?

question, Thanks for Pamela. the

remember you two our major I price it's realization about think when important components. really think pricing, to has

with it than we've but When the we've component, for without Revenue which amount is really about companies we we from maybe before analytics, effective, marketplace of that the and that's advanced retail. put our and And efficient least advanced promotions the refer as the other about increases, retail are really revenue to analytics growth management made Management. component, you think get more effective as all around the some consumers times data it's first across investments to aware it or it more making it and Growth taken the The as everybody talks at and and referred in price of and portfolios. regularly

the realization. increase allowing price that's us So to

and experienced profitability you of what that's And the look, from through standpoint the increased think we've X first I L&M, our a quarter L&M. through months. on

are think share experienced that we model analytics I L&M. there, some premium but focused ceded has what have results we've in advanced now, solid liked Company. the you a X the been rock We it And We call see X to for, quarters.

Thanks.

macro price how realization in sure headwinds the -- As are consumers? a follow-up, generating some of on you it between that that the highlighted like might of about tobacco And thinking weigh balance looks light you

I'm sorry, Pamela. up. Finish

share discount like gains to driven this the discount deep stronger by related segment. looks it segment experienced Just that, quarter the

seeing current propensity of you environment? increasing the are any in down So trading

think it around quite I will slides the we a discount the take for still can first, provided, while. if has at balances you question see time-to-time. the It's from you I look in discount where been range

across That are overall health that with our factor propensity of consumers the the about the how value From being I'll our to you think over not before then corporate for several adult standpoint think all brands, in vastly relevant pricing, about there and that we we and about. of I to a are premium mentioned associated is We about think And health consumers. cohorts. fact future think objectives. think our brands a economic brands. demographics pricing, discount see brands, we we factors of we about I talk are we about be careful still think the or

looked about how there. And so we decisions we make

and investments balancing portfolio. Marlboro to overall about investments profitability you we making that non-combustible term the the the maximizing about strategy when investments combustible really it's in over segment, appropriate the with apply think I while think long in

you. Thank

Thank you.

I will on. pass it

Vivien from question Cowen. next Azer with our take We'll

open. Your line is

thank you. Good Hi, morning.

Good morning, Vivian.

gas consideration watching I key as rightly pointed think consumers. terms the your guys out of of terms the health in tobacco consumer, you prices to out in So of core

curious, possibly gas the You various prices? the gas in price from regions inflation United in initial higher early response underlying of guys cycle States, you were gas. dynamics, But I'm out consumers to [Indiscernible] very call terms different anything in as obviously

really there seeing the say call national to to that; I out base. right, Nothing specifically what out, below actually it you're from and call we and you're down nothing a state would level Vivien, on at different look to

Thank helpful. That's that. Okay. you for

basis higher components profitability in the on levels do on could on!. right we this Moving oral wondering seen margin over few we was like that given follow in more you. if mix, kind promo of Thank level Tobacco to the EBITDA And one expect XXX level the to current versus rates I is segment, decline unpack that the on!, last of segment, but in you the that, should you're points of or focused the which to of the a recovery think years? we've normalized up XX%

Vivien. you Thank

our strategy It's that with what able pleased we we to progress oil about the team. we've great their I and as sales grown in pest new category consumer we extensively. with results The the think got the we're and and manufacturing novel helix saw disrupting a when been important introducing with space, we're to strides continue We force in them and see in you lead that's to all remember great constraints. oil, you're making the have tobacco, very category launch. make to that what in you we think in the doing margins are MST, can traditional capacity

promotion, in well of with understand they investing investing in and images [indiscernible] premium we're nature as so brand. the as just price that the making the not equity we're with really digitally engaging and both so brand consumer And

equity then with time. that disrupting and through you're So reinforcing it retail you're

category. we we margins, how We fees the achieve on -like now. approaching in believe Tobacco that's right So, time, can certainly are through investment but Tobacco the we're all.

Okay. Thank much. you very

you. Thank

question Our Bennett from next with comes Owen Jefferies.

Your line is open.

market. the first the segment And of question discount price going is, the bottom well. pricing is back the gaps to deep the dynamics with and just Hope with the and growing

price from the tipping at I so continues where the to between constant too the gap is pricing are appear seen now, coming XX%. any the there So get, and the is at is there. is market a the how share if we share, But sizable? And it historically discount. right time XX%, we've guess, with does that premium to pick this seeing price same than now the of loss to top quite of point around becomes risk bottom Is you industry the discount this i.e. lose starts [indiscernible] companalso that what think trying up gap sharp I'm increase a aggressive

monitor lower price and we we Vivien gap. something national the at it's But for you question, guys level. that to to at question, certainly thank overall we it, a supply look the it's you Yes, something Owen, much back 's

gap, and do efficient. making I effective able on that and think put Marlboro has to that you and before think the achieve time, advanced able point marketplace about price when that in I more I what's being to price mentioned the team to we the would been through performance analytics in promotions realization retail

we And the -- realization the -- to position able were for achieve certainly steadiness so are we where monitor, about time, good we at. we But something tobacco the X price first months. businesses we that Marlboro through see feel it's the but our what we through of see

stake [indiscernible] that creating then potentially process to around from more the second that, And question, the come holding and ABI wanted back to onto of JUULs value fine. specifically owning some potentially versus Okay, outright. just and

cannibalizing the I corporate JUULs ABI cannibalizing ASG arguably incentive it cigarette, it hypergrowth, tops on sale So side, on growth, you've be could increase. into the [Indiscernible] if arguably got soon rate you've got can Then the credentials. tax increasing to your also [Indiscernible] economics charge internationally. ACH so And nothing not [indiscernible] and the as cigarette, especially this the sad and then mean, credentials. potentially for flip potential then ESG all to a also, gets when It's own traction well

outright more mean, than So potentially [Indiscernible]? long-term for those -- I why value I given was dynamics just do offer can JUULs you owning shareholders thinking, ABI think

Sal. Good morning, Owen. is This

unpack to question. a there's in that lot So

comment or around know, speculation as Let hypotheticals me don't you M&A. saying, we by on start

which So is shareholder really is the asset over talked role the analytical the opening best At long believe though, my term. this what's you've for the thinking question what's about for on best analysis we lot I long on holding time, the ABI to for the in the let shareholder a touched of me of term. factors center about move the remarks. At the

As do continue all forward. monitor that I perform said and earlier, allocation we'll that to and to analysis perform we we detailed with the moving we'll the as do continue capital asset decisions

the you've that, can we only think It's I look thing or at the through take capital reallocate somewhere while. We for asset, sense a hold go different I the doesn't asset that at analytics would with up add, through else. you quite no make the to Owen, the is than us we went following and been analysis and look SAB.

restriction that's regular that has at times. on the that gone, so And something we'll appropriate will the update now a do basis and you

the Thanks, questions. Appreciate Sal. Great.

Thank you.

Jain Gaurav with We'll to now Instructions] Barclays. go [Operator

is open. line Your

Billy. Good Good good morning, Sal. Hi, morning morning.

Good morning.

I've questions. X

been which earlier So versus the first question other lowest questions is on one premium effective. on have asked price Marlboro's the

below XX% what declines So position have understand price things. is we you side [Indiscernible] seeing which to against actually Strike do not equivalent against brand and volume the which plus LNN is compete Lucky BATLD and on used is the these a of [Indiscernible] Strike, at I now then competing Lucky are why that

against effectively you Strike? to compete Lucky do you a So think also to reposition more brand need

really would X because that the strategy of price point and quarters over as that investments RAC the able overall and term, marketplace. we in have, advanced Yeah. remind maximizing would as we've then the think realization you -- well both in list with and focus we the long the how it's performance achieve, performance, combustible profitability and Gaurav, X segment. noncombustible and Marlboro the the been so about again, steady of category premium I to combustible balancing price I our applying analytics how to for Marlboro from the to we that's we're to portfolio the about investments

we're companies positioned, about decisions good So us. other as as make independent we can where feel far of they

Sure. Thank you.

shortages. The second is component question have I on

a we So and components. shortages talk Have in have lot of one we battling the also your [Indiscernible] thing which industries. next cigarette market, seen e-cigarette shortages And the volumes competitors that help bad quarters. how any about in had yesterday few you could some of cigar

you seeing as in shortages any are So cigars well?

a out, shortages We've Yeah. top are Gaurav, be labor or able shortages, of product around they we chains. our would of experienced a from that stay standpoint -- standpoint input point to Nothing or to or on supply this. it's from any procurement from team, a material. had They either But whether storms, work haven't standpoint.

our pleased hourly been extremely procurement So achieve we're with our what through and workforce has process. this to able

last will there the on MSA year And the that Sure. higher of question next because and you adjustment. could inflation, be calculation realize

So could how you just remind it. in us how that calculation works and inflation role plays a

the and has anything The an of the inflation have Sal. It a calculation factor X% of impacts that X% is costs. This above with payments. MSA associated morning. Good Gaurav. does Sure, floor

calculation. Now, it's a point in time

So of December prior year. versus the for XXst the current at CPIUS year

something inflation CPG other we've out the in only industries. times pointed been versus had where differential it have a and managed we've used it past. is aspect business for of to It's We managing we X%. above I the the because Tobacco are

Okay. Thanks a Sal. lot,

Sure.

We'll take with our next Journal. Maloney Wall question from Jennifer Street

Your line is open.

Hi, good morning.

morning, Good Jennifer.

I not much about about because volumes it drop and time and cigarette home? little as spending talk spending a just because behaviors. Is X.X%? in gas? they're and on Could you're industry out wanted about why at of a you consumer are more, to people Is more talk travel seeing bit it

it's of practices. because using discretionary nicotine their the occasions out their we I factors mobility seen I thing those Yeah, major navigate gas and how that been we've to I year great the and we would highlight. characteristics the would more they're would question. other -- we both We our about and But stay-at-home but that highlight increased believe you've a mobility the these the be affect were is I pointed to highlight only are point they've of The as extra you consumer. not added so things. did on and would through our of other past, and think prices the talked you that consumer in and factors about consumers. know gas income last to successful prices They know

our -- as are and cigarette sales? downturn in continued sales hurting Are easing that sales seeing somewhat you And is e-cigarette e-cigarette affecting factor? a

Yeah.

I we to try refer of volume. if decomposition provide -- a think you to industry

on it do moving. we so And XX-month a

smoking And on always X.X%. for a the movement so And additional was the end secular see as which And or remember, we beyond that, other cigarettes of if smoking people in people of categories, X% leaving that. we about quitting quarter that's XX-month see or cross-category less decline, you contained is that third categories. highlight of other moving up then moving, to

And X.X% so you for whatever consumers leaving other they choose. of cigarettes see can category about

much. thanks very Okay,

Thank you.

Our with next Patrick Redburn. from comes Folan question

line function open. check And mute the mute your check time. phone. your this you Patrick, hear at Patrick, We're Your is on function the please unable on phone. to please

Katherine, back come maybe we move on and to Patrick.

no Livingston comments. have questions to call this in At for Mac to I like back We further time the turn closing would queue.

Thank have questions. Thanks Investor great all for if team Relations a joining you the day. you and contact us. Please further have

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