Mace Security International (MACE) 5 Nov 202020 Q3 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to the Mace Security International Third Quarter 2020 Earnings Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions] I would now like to hand the conference over to your speaker for today, Sanjay Singh, Executive Chairman. you. Thank Mr. ahead, go Please Sanjay.

additional you, September Karol, Gary Mace. With is the can morning, visit and financial OTC report XXXX. and President and good for find you Medved, where of quarter Investor everyone. including Chief the mace.com, statements ended me third Relations, Thank materials, XX, Executive Please Officer

based call, and likely and will that information and during and currently subject risks, known proceeding, would will constitute intended statements possession to, When Before but or forward-looking the affect statements. manage capital Such economic performance. not to intended statements effectively could conditions, the of uncertainties, health to, could ability I the projected similar It to management expectations continue, certain or financial of like forward-looking conference used the certain adversely words are are to on will statements materially COVID-XX and and the future current during expressions factors in during limit are phrases, conference Mace's information limited result, opinions point operational XXXX results of any are differ this call over or Gary management the statements including, turn cause unknown, out to estimate, materially on management. of actual call. Mace's from and to this business. to periods third impact will is anticipated, identify quarter expected resources, call the our for I to Such now comment expressed to results. emergency

Macy's safety due XXXX, we hard Though and of forward direct COVID-XX, more going everyone. remains all disruptions number us. Hello to Mace the our dedicated chain result the of continue one third quarter Thank to health priority of employees. of joining few our through supply last work associates. Sanjay. a Once Thank the I'm all with very pleased in for performance the work you, you

our during personal in release, as to very continued strong more noted non-lethal products. As security be quarter third demanded press the business our consumers

Our lined the Mace shift safety our focus lineup, product with personal to well products. digital consumer awareness on accelerated Brand, the and up

look product with lineup experienced during digit quarter be quarter, of Also, retail third the its hit a our percentage sales partners. increase. big digital second new Our to and straight continues triple

While many of part customers early a quarter, traffic of that quarter. the experienced our pace third the second large up picked in drop brick-and-mortar has throughout in the considerably foot

substantial as we well uptick shift social our We now discuss details experience to partners continue strategy advertising our over a a will turn behind performance. as online e-commerce call I initiated to to to traffic for own admit Sanjay the our continue our a sales see early increase financial QX. to attributed e-commerce purchasing. the media online in substantial in And strong towards website,

Gary. you, Thank

Third and to improved months the gained efficiencies in quarter to XX, for expenses higher sales. improved the sales, general or quarter increase Gross from ended million, XXXX. expense three quarter product $XXX,XXX, $X.XXX last due were sales three or period higher higher XX% year. higher million, from increased and of growth increased extensions This months administrative during million, organic profit net XX% performance in net primarily attributable variable Selling, net same sales September commissions, XX.X% to of was ended XXX%, to $X.XXX due in XX% incentives. sales related net addition and increase driven sales customers the by the by customers. sales. XX, the of third a XXXX with profit during $X.XXX the new compared is existing SG&A of and third $X.XXX September increase production XXXX Gross to net line or sales million

September ended income sales compared improved net three net quarter $XX,XXX $XXX,XXX, EBITDA months $XXX,XXX As XX% of improvement. net the for XX% above, the of EBITDA same to of result of negative was quarter or a or third $XXX,XXX XXXX for the XXXX XX, a the XXXX by sales. in in in

Third EBITDA $XXX,XXX. quarter was adjusted

an months million, same or loss million increase $X.XXX for compared XX, $X.XXX months amount of XX, of XXXX a The paid XX, a $X.XXX September For its ended off from September over million XXXX, From sales December or $XXX,XXX year. to million increased net in cash nine ended last same of income sales nine improvement. period period perspective, XXXX. company of in of of September the $X.XXX on the XXXX also was increased the the liquidity XXXX. net the $XXX,XXX for to XX, Net line XX% credit net $XXX,XXX, XX%

statements to our the the the due access to for company economic as as operations for disclosed in protection us in ongoing ability current support granted a to markets limited necessary uncertainty paycheck was financial applied As a the manner, us capital in timely priorities $XXX,XXX and quarter XXXX. business to the will in back the will and who turn small call from outlook amount loan discuss the XXXX. remainder bank of I program administration through second the now Gary, for of its of well

Thank Sanjay. you again,

our one I the outward, focus is across all landing with this you time, products digital At to limit get themselves questions. the additional we'll time, stop and our the topline try follow-up have please chance queue. If new new question and looking caller will participate. everyone each we to retailers, implementing back lines, actions and into the line open significant ask questions. extensions, forward, to to to platforms. line a for would consumer Karol, open to related one introducing Going product I to strategy allow

comes [Operator first ahead. go Management]. Instructions] Andrew morning Your Shapiro Please from question this [Lawndale you. Thank Capital

my in Hi, several questions, Have and into get the but ask I'll back one you. thank follow-up queue.

filed it expect did you full the First you maintained example, the the payrolls, For also because the bottom do now now when have and for for quantity And forgiveness loan, apply line, PPP a foremost, did of the be reclassified and the maturities, about forgiveness? of on loan amount for meaningful et with current that that part does expanded since forgiveness? mean cetera? to you filing as the or you impact questions determination PPP this being would

Good morning, is This Andrew. Sanjay.

the have yet forgiveness. evaluation statement, XXXX. the We in our process And we completing not quarter And income we it on sheet hence is for reflected in as approach the for our steps. impact next shown the lender not before also of balance in was are of the PPP filed it second is the of

reclassification understand, current place. maturities but I the took to

sometime until the the down making you I forgiveness comes was I and so determination in just pay And goes. any on guys don't and loan, probably fact wondering, of are not to for, planning think, that on you have

Oh yes, that is correct.

Okay.

that make the did got since to sure the wanted called with down on cash pay notice. short Just demand you note excess

question, now? the channels or which your do company follow-up opportunities of areas you growth Gary, for the right Okay, feel sales provide for best

channel, probably the digital as we been think be equally know would years. I haven't player over major because a you digital the in

emphasis Now six received huge or in months is the that's nine there a whatever. last to amount renewed But the upside that channel. of

on. even brick-and-mortar in for there's retail more some retailers, us because, few good though a still have we're In we always remains national working huge that penetration a channel addition,

forth. our So drive. and give channels all we I and the be the so think that those us going products, consumer-focused two through the remember, are really are look, going with And to forward, very

biggest with percentage think, digital of of terms represent channel increase wise, greater channels I of those opportunity the representing So, opportunity probably in two the two the a them.

Okay. Thanks. more questions. have I many

So back to come please me.

All right. Thank you.

is your open. line [Fell comes Ken Capital go Our Management]. Fell next ahead, Please from question

Good Gary a morning, good and Congratulations Sanjay. quarter. on really

Good And Ken. morning, thank you.

increase XX% by revenues. relates My What price or the strictly maybe question growth? kind that unit of was part was of in to it increases driven

they on went for went out year. okay. January QX last Price of None Well, price of actually it January. was X increases, this increases out year

with like digital, was country the of pent-up due tied QX have growth over international the all the with in switched It on that's those So up, QX. of and that shipped would basically as shopping. all okay. percentage the had solution then we really Otherwise in the all went nice continued growth The issued directly lot digital earnings through to was locked a that we QX that down, people a demand, in to attached to increase terms we when were we opened all brick-and-mortar. release, out well. the bag. for month-by-month And And showed of supplement had mighty across exception shortages. as back had initiatives mostly when part international well, books, what people that the shopping And to country started channels

increase for in storm doing the for So was revenue growth, very where sorry. brick-and-mortar two perfect I'm are – the growth just those drive doing primarily And those well. saw in of the online responsible was well, shopping QX really events revenue really

Great, thanks.

line coming Conference, Just something you said Over-The-Counter be, leave It on on would piqued that what products something when it the Gary in my it but extension, – Investor talked out? that new any interest. product about one brand line the was was kind there updates you and of new, wasn't to more, Virtual was or that's

you. XX% actually the iteration or forth. XXXX I'm here really to expecting couple now right on depending a planogram final what next waiting on it's is Here coincide with in And already the week week. shown how back And goes, the still launch own okay. website, we're from And to We're and is I them launch Mace.com, with been we QX our by can may a this end two, probably nice resets, of do hope to hear retailers the tell to so initiative mid-November. finished take prototype. our late in that a our

So, tuned stay Ken.

you Well, appreciate I'll and tell I'll I answers you my out. piqued back great. Well, interest, Okay, the that.

you. Thank Sure.

Please question go Andrew [Operator comes from Instructions] Our Shapiro. next ahead.

mentioned item On you’d were now through call follow-ups – describe placed for retailers. key new two products line in that some was this have presentation, found I Hi, which well, I here. a and this, you’ve looking your you slide that

there, to in products out And offering Or you key are planning retailers. And under so are? I are well channel products offer wraps. are now online might that those new products your as what now as limited retail Can through those are – they your two to website? retailers? are have since broader be or you those you product understand and But they development discuss

shipping locations out by on of a our automotive good and referred the Yes, extensions, personal a retailer, there is about One products another an And thousand okay. one to those is national alarm and product we national retailer. both a line taken them.

were that in introduced QX. are was that that them. And those prior than market test there it to expanded then of we other of a items one this year did So with in both QX not QX, were

expanded further of in your uptake? part to then plan? experience growth, And or what favorable are get been QX, Okay. was and in your in or the that’s your What QX – has plans

then The Yes. day And tell that get – set they to we’re to want XX% what over dollars about XX% And they store. set a hit another XX% here’s we’re And a that other they than target. lends target to we Andrew about stores. target. and you, hit is, permanent target location higher can closely thousand per that itself, They that running I stores. monitor a in per that

Okay, I one. that’s what can the on tell you

the We’ve August been well. is very shipment subsequent it’s made It’s retailers, product is And and resets. in well. an It of gets automotive shipments blended doing the On since front their the – initial automotive then. we’ve it’s very doing chain. planogram stores an at for itself doing

product if And before line okay. now want gas right well. we So where doing you extensions were we the and are where a know field kind go, to are between me, of those

to extension in So with really the line until has and keep these new. that big where broaden go, we development really out we come a really something the product products retailers offering interested want services nice a new in way, to us

the international And orders, shortages answer satisfy cause backlog, still orders would international in sales year-over-year what the numbers. and shortages you fulfill to international to your are the your increase segment, nice comments parts for as which highlighted these or that presume is products or the expectations able there on to be you and a as a Ken the I follow-up there of will when to in

Actually – there. Yes. a orders of of we shipped, the that There two already are were are two all referring of that okay. others those this number was to have on – when

I October. they’ve quarter shipped mean shipped They now. in this

be gone. orders They’ve this okay, break the Yes. remaining quarter, before the will And left for be the they’ll already we out holidays, building.

Okay.

So you’ll channel that quarter would catch a up towards and at be this then. international for least tailwind

Right, right. right,

Excellent, please okay. out I’ll got But come I’ve back more again. back, questions.

Sure.

Again, [Operator Instructions] have we Andrew Shapiro.

open. is line Your

Thank Okay. you.

under can when expenditures where previous from levels the they to steady previous an reduced compared corporate indication stood all Is Your cuts at that and SG&A you that been sales has or the need sizable management. And the continue you you what versus increases? grow level levels to stayed you’ve for made. improved do this be have have sales sales SG&A without grow already to made your now your SG&A to feel capacity

expenses the were SG&A we’ll the our to current shipments, run our at cut, those year-to-date, expenses continues the that in of significantly. that at is will increase. inside if company focus up growth – The So – we are need the this space sort rate

the We will to likely need user as will most development. in part. consumer product well fill we experience other SG&A as invest or will be certain involved even increases digital folks by funded efficiency to in for The need spots and increase most folks in to the all

on furlough in the very, are focus costs very we our company. cognizant of So

advertising reduced Is continue area you that you that your e-commerce How grow to investment e-commerce reallocating growth? those Now, of sales? segment an that will your help and are to further expense. previously come new expenses

want I the were be you a advertising Yes. at the you load And you’re go of about than better is end expenses two why day, to cutting Andrew. one not much of clear ways and just on e-commerce can There’s dollars. were. off those

You’re lot just spent money just of – you advertising. a

two, developing hire guess, media one. approach the SEO a marketing now with taking new or working doing on on Number possibly in-house then the some we’re digital be item, Number outside right which content. really social number three, content, will advertising. partners fourth good that We’re And I development.

– the revenue today, advertising at reaching brand look when really at doing All of people our a revenue but And huge awareness the designed going are and lot have shopping to and are advertising. wasn’t dollars, the great higher to to out and just – brand for those we clip really, really a and for are where brand, run a anybody shopping of start than XX% for where be to developing the people high of look it it wallet this shop we consumers goal percentage sold an space. than more size and or in

social And a has going the now, so rolled was this ad out e-commerce working with into some content a details Amazon’s money with ton just advertising some on and they dollars I presence, I being there, too and digital can’t him a get think in-house, of at be forward, to but that partner been far you an if on So we’re of shares. Amazon, our even the done it’s going stuff, of out stuff outside look A-plus is cost of were spent as really it to and media the opposed forth. the calibration of dumping lot where

of different approach, So good taking a we’re the not just the emotional really a side into consumer.

have Slide incoming slide moving as course, presentation which this shows X, to of And chart supplemental you it’s On a again, able orders, you was find. wondering if This it. through, And looking could that for explain now chart, was been the September. this through year-to-date better and XX-day updated end average. I call, of it’s Okay. I’m today’s I

far I show could As this. as for

meeting company’s throughput and backlog is well no, I And it’s we’re the satisfying then understand. to updated, I’m as sales how backlog. No, catching here as your fulfilling to been the now, to I applies in just by Yes. whether we’re understand, it guess, up understand to or the chart. this backlog the growth orders, but But building trying

okay. on clarity point data is average each of XX-day a one points XX-day a this is moving chart, chart this that it point, a these Well, on average first moving

that, that average average one of XX with days the the incoming day’s previous number. it’s orders also So

almost to represents up bit. our then the nobody this line starting we volume were It times, so as daily increase turned around went zero then almost from we down everybody in And normal XXXX April retail. was the when in a stopped XXXX activity incoming So the levels XX%. where to was – we we from X can XXXX And back – hunkered increase XXXX. a little Retail weeks. we low up into line substantial down of for on ensuing you to was waddled up opened as as sheltered from basis, And to country were And almost XX our XXX%. on and That’s XX% see, ordering. going about XX. that when And high where about the place. orders our from June

incoming around for are since Now, see of These run into not okay. XXX% then, our XX% we’re to a you rate orders, somewhere back range, settling normal shipments. the

goes on… time as So

So – last days or of, days the of as still whether the September. you’re it’s from this last last days is XX XX% growth of whatever, business XX

– clicking You’re of around prior above year. XX% still growth XX%

Correct.

Is that right?

Correct. Correct.

Okay.

relates Now, before substantial backlog. a talked backlog, calls we’ve obviously, to because about as it on these investor conferences

We noted, a of these worked out. the a are and a getting job the remarks, in working hire manufacturing she’s some cleaned procurement And in and had that. when experiencing improved getting chain great through new we Number issues we’re first got couple one. supply here scripted two, in months, safe. up. a in here half really our be number We efficiencies, last we’ve shall We kinks over we’re on about ago, of month doing as

hiring your be I the material, okay. the can’t of backlog. few beginning that the attention is what or or side that of so two speak relationships planning coming lot inputs reflect the that’s business witnessing the here, are to we’re backlog. to altered going all we’ve demand month retail. a okay. another efforts We’ve think in, And over our been And that months when more Andrew, And I supplier we’ll last year, paid where and down, in labor practices and months backlog with is really on half now given

retail got are content building issues, the we’re related in the just being have we are our supply a look, worked much efficiencies to last to that does. the out. and higher the few being what addressing see, issues few You issues jelling wait But they months ago, were is labor the to COVID are – than chain

And to in, so build starting inventory does goods how when get into lead to matter position going large. we’re come forward, to where really we some an finished nice our a no decrease order time want

No, certainly do to And be a your you of know, direct fulfillment it to most probably don’t comes I think time have to that lot would pleasing retailers. I your would lead consumer when quickly. that

Direct on hours. website, our orders within to consumer that are those shipped XX

guys you But these that have retailers, selling like is safety time those – your if be you’re assuming all fulfillment. on to them product Fulfillment are all you’d buy like hooks have of develop Right. going a trying isles to and point. nice to to

the who Correct. dogs yes. we know And big okay. are, In-house,

So they there’s when that a they place get. an reflective attention of order, amount

got we guys of So things the care the are out Like better in larger I better. within last up. to we’ve the taken just few are And is our getting said, going built us a keep only things lot XX gotten in hours. months, get ship e-commerce forward, just foot bit finished a we goods And slow opportunity on to little down the gas. if affords

patterns. last six little given the know, to patterns that, been the – bit ordering has order difficult months Something a do,

that the up season through and stream? lead finished for revenue and the your your of September does orders right you orders through when you coming now, take company's a QX particular the holiday in experienced flowing event – from is are retailers November? and generally the times it or see something and do bubble in usually with October When did the Is place? When holiday that that when

the it's of the this. comes most mothers one, couple We'll hikers, around our you've neighborhood around QX A there's bikers, lot not to an in out everybody Number runners, and see QX. strollers about, but that people going those like of end got in a QX, campers, a springtime pushing where is just typically of out, aren't slower quarter. of points lot joggers,

you're I is a retailer on but running patterns holidays, should for You say do unless promotion the weekly just now. in ordering retail, do they the like unless the a running in basis your promotion have come holidays a

second somebody seeing. we it November, be on ordering in depends week surprised, the just So are what can retailers heavy,

I a unrest. that's social guess barring subsequent and tomorrow debacle

debacle. Yes. define on It depends what you a as

designating that not unrest is uncertainty debacle The I'm not side. to to just is I'm creates say social is that going happy be Well, actually. trying anything someone's the here.

get – a the of us number activity, it a in And it When company bit calls, these on, were And put of there enough the operate, enough out investor in like back calls And a been the riots as so a spikes calls whether you these the Andrew, operating of there. that get you've it's or breathe and ours we've fear, protests that to just June earnings gives conferences. in well. uncertainty taking of and we had was July, space lot uncertainty. we and uncertainty was fear little forth about place, less a

lifts steady in shutdown, riots own fear number COVID or a homes. that uncertainty the gave to losing over back And jobs saw go spike their has – fear. Since people in happened, as the a you the now the a well. bringing that a whatever for was seen their weeks, again, that shutting of a that increase. just sequestered, when number bump of started down took XX when million the we’ve retail was notwithstanding of we If lot quarantined protest, And people

not involvement some it's there, a whatever. or Supreme going Court or counting, generate ballot who for we out that see to do sharp an are sees on knows to everybody say, leads you shut the at increase, to it your again, out not the going But And they you COVID down them, So, it's know. but play uncertainty a coming week, weeks, election whether same can't cases, don't the point, I – might everybody rise, the for pay-off have to tomorrow, unrest they're economy. on time,

a a that season flu third so with wave And pandemic with left got soon. coupled shutdowns of you

month two So think we still things another have before start I uncertainty down. in this country settle there, of to or

me have please I you I come back. in out ask few in but I'll round, thank little more letting a bit a Okay. the for this queue, more last questions, but back

All right.

comes Please go question next Our Fell. ahead. from Ken

if I on Kuros was anything one question. there? I update just a have, the there going partnership, Gary, wondering new more was on

I don't new. know about anything

We a are but doing been QX, brick our presented only we've still in the e-commerce we'd can seen is same anytime And thing uptick program say, I thing dramatic as doing, is else Ken partners. the and through mortar that well. the we present to retailers,

Okay.

we’re last in of So traction seeing for here months nice some the couple program. the

Great, great.

resolved? have they prior dispute know some So I resolved, with of Is been was in their provider. that Kuros kind

its nations. That because, are to product out I find is mission at-risk him reaching a around and and with that, and the does Mace just on focused it world from distributing couldn't Kuros tell well you'd hopefully building out. and it themselves be party underdeveloped to not here, we you And for obviously better the women

then there to up? November? and one it I And the those in the year one go Right. weeks the like any believe on two website, have in there's I your for you December. a release scheduled couple are press coming still a Great. investor rest in have looks you of Is more a changes are know the conferences the of that

one The doing November –we're both. Yes.

that I've email December. we conference. an date doing And changed the they LD – the team because got in had We’re the presenting for and they've one different out at to they're reached a of type both, Micro, the but at redone format

timeline now get the has it's So I But different think once at to the right format. just And confirmation there website. XX offline. that it December could that I and Micro, think our It'll website. to on that, XX, had with you XXth. a – to information release a December dates share I I'm completely press now be the we we'll the our date from he get updated to was out. trying and can LD over more get on we redo moved probably And so guys on on Andrew confirmation Xth

Thanks guys.

Okay, great. out I'll back Thanks. now. Thanks.

Bradshaw. Our comes from next go question ahead. Please

team, quarter. a and on amazing congratulations Gary Hey,

Thank you.

Definitely. color call, something had going you mentioned I additionally shift and then Can to any to shift? about a was third about curious, those you your a last two what things? give second in

can what I tell you. Here's

second it We operates we a hours. have did It's Okay. our shift – All third in shift right. shift. that do the have second

Okay.

our each extended first day. we've shift hours third by and couple our and So, a

So we're running two shifts. XX-hour

terms or really In mentioned manufacturing another little efficiencies we over you from last the need to that. sure before in at we yet of somebody get and it to efficiencies our got ago. do they a adding was – We an I about now. be running a months. right of We another I additional need comments, shift else really asking we look – shift, we're do know shift someone. another opening bit one adding email we though like not month that back was questions that, where as on that yet adding if the or ago, mentioned shift. two then improved the And another the as I want need comment few was And have I'm absolutely

were things that and through to gain plant we the So other felt day. try holding a us there now by to we to restructuring more things XX before layouts efficiencies right have that hours and go really

XX. already we're Okay, running especially if

facility and when Right. speak? actually out, was it, that to That's does or when point so shift I with to maxed that get that was did amazing. to curious, close next the where hours max then, guys you

overall capacity tap. at the XX% Well, we're think – running I full probably that the building, for we we're have here,

okay. Yes,

Okay.

yet. was lot upside I'm of not question, of have first sure we the a to yet. And your So part there

Okay.

Okay.

adding get consider my more In in world, to Sanjay’s really we shift. get. going we really, tight have We really world before want think to another – more dialed operations to or there's

in more So, room in we people. think current the situation, add we our more conversations, before there's

That makes so appreciate a much, I great XXX% sense. it. quarter. Thank you Gary, again,

Thank care. Take you.

next Shapiro. Andrew Please from go ahead. Our comes question

have aisles to you COVID a progress, or you first? progression or to and seeing section Are What's the introduce their personal of during retailers products in this any it it, – new you getting the a or saw you Yes. your need can hooks is impacted that and as making safety category era, bunch plan?

progression work to And time, strategy you that, retailer. at time, clip one one time, quite in it's existing time, into The product one now a at strip the a and eight at one a getting sprays keep a adding. want is, display at adding don't the posted a for retailers, on as been while just we same pepper one is have

have spray, a blend makes sense Retail the goal, then retailer. to stun where is into our retail looks alarms, goal all still it it guns of as category. one understands like And to that there. That put want our as to that sees goal. You program to pepper a it

retailers in don't it's in get a XX% out. I that have out per it or take number put they what per to store work our going something So know time take that they of some want And items it's that. one us every once store every to say per Xx there's hook and decision. know there. in. putting have more told – were on, put in? on should of dollars they it comes to with they that They going there, the of that And of will twice us they in, out for per you week But put because week don't units put things history want you be take that product and a of hook. And us to What these to hook something

sales just with game. are product line stuff key we're months, of And now. long So a game you for still right a of retailers extensions needle at got game It's But long out guys. the moves to It's a six director with success, to months came talking it. or very have approach. we're so there. We've retailers, attention. month COVID, more maybe stay lot about that is Andrew, a area We seeing hooks some that long out protests, actually a a with these constant a now. six our his little that's there. five of over And couple ago who's Dan, in getting we got

you up there's our tell on I let side. can So, that. no

Okay.

e-commerce as you has ways, You in results the previously produced Mace to in channels EU. announced these benefitted now? what are well markets as distribution launching In

Wait, European rephrase about that you EU the – Union. talking

think, someone write I were geography, the and part distributors other at working was expanding and well towards the on to – you're to the as we hired international dedicated maybe… In e-commerce either Chicago it then as launch Yes. out of

Okay.

what results you yet. I produced was any wondering just and benefited way

was it master more Okay. distributors. e-commerce The – about and about less

that's I you're what at. think hinting

Okay.

in legal it years had not in before, arena, to new international If QX. we spray can't pepper all can't. it for They over someone I've reasons growing cleaned the would business everything And pepper distributors. number existing for we and sell you when the had Europe, a have successful, That uptick go same books up, actually we've during for our this of the in to happened And a is been the okay. in country. Asia, we it, been keep mind we're mentioned can China, known able states spray. is we and nice I've that but hired landed Julie had stands ship quite the that own she's year-to-date consumers getting QX, in Police Chicago, that again, in in myriad in international and XX distributors,

Europe, kind easier be because over countries I now, with lot are product the was band, sold border, where there a that anyhow. master and that distributors experience its spray restrictions. are Not there Well, pepper of my the they selling previous right have cloud. could lines there so, of everywhere. South doesn't was

able to somebody adding we're there, with where work okay. we're distributors So

theirs. has countries been We at few – shot covered. if traveling Unfortunately tried into XXXX. we've get want shot they canceled, internationals being when they was was there's get people get we spoke country even and more think to because quarantined to a XXXX that our no just been there out weren't to it held, I the would've and back of

pushing sure. with for to things a She's it line and we job to its and deal them, not got progress ahead with with a that's We've see here, have doing so But international lot still all in travel canceled, environment of is given I'm product on. great trade glory. the unable happy over we different Julie far. shows So, being the

Yes.

would But Now the limitations world like ancillary licensing advantages offset brand income is helps brand some Mace might well-known Mace have with regarding or versus our at these sales own hurdles, also to in it brands. we'll brand, the they're with NOL, products ways when and money, less the with status a our presumably others the hinted tax that if call Mace marketing our – renowned a What smaller call yield. brand opportunities company own players the spend was it using margin partners sizable plans enhance generate the our in that prior right and with high tax royalty products. are very

a us are at. anything opportunities a other that now. would Andrew. okay. a there's I'm we're not on None different just that a the Yes. retail have place part reasons that to but you would do list of place Longer couple of term happen, to outlined licensing that be the of we I right before we that is great add, side us, for only that can need of we opportunities And looking there what want were to get feel into dispute thing The couple can of for more then going

retail brand, the So need And is a doubt the well-recognized I'll do to timing a one from have education We that distinguish and the the brand more do to talk side product. side okay. that, than up the anything. a we on it more without brand

excited about. opportunities list of we we're so a And where have

at can't I a It's brand. especially a kick for of that Like thing. the in why, calls had closely. starts think I the for longer-term good that be this particular. one said, when to have all number looking we're into and get company I couple We've a with it'll We in,

you excited I introduced press person unfortunately, And to digital any particular the you addition that your extensive was you into a the Are that thoughts skills, the How was guys in in utilize add Kretchmar her have board? release, help you retail you do experience channels? boardroom. who's, regarding grow added buried there Jen this because I Jen it but your you added really I'm plan added she sales and to to press network experience somewhat various highlighted to merchandising and who the noticed her, release you but

us very Andrew, for a come quite very, I've first of And to thank well. you introducing much all she's to back, impressive. while know Jen her very

e-commerce sure. very be to in much. excited for is you will be our involved and thank She play So

she as shaping involved us member. be our board So strategy will future in and advising a

Awesome. awesome. I so you that's great that's feels a questions. opportunities Great. have And growth see, Gary good, no further Thanks. Very revenue company already the for still,

hour much great. before one we Thanks, Andrew. limit. near else our Anyone Okay, pretty we're adjourned,

[Operator Instructions]

we Okay. their company. thank Well, opportunity to for in interest greatly appreciate We questions our as our will take everyone that it. Karol, and their

a mentioned our will transcript I again, website our of concludes Thanks day, XXXX be everybody. on posted this As the earlier, recording quarter good Have call call. This a later. and third earnings

your again may call. Thank Ladies and now conference gentlemen, today's you and you for participation this does indeed conclude disconnect.