Simpson Manufacturing (SSD) 26 Apr 222022 Q1 Earnings call transcript

Greetings. And Welcome to Simpson Manufacturing Company Inc.

First Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. this being note, Please instructions] conference recorded. is [Operator conference your relations. host, will now Orlando to the turn investor I Kim over with ADDO Please go ahead.

Company's laws, forward-looking the this here was required update may materially forward-looking the and extent investor make subject website. uncertainties. website applicable note you are Actual public or by expressed today future replay new that future page call on risks as press available number and to from release of the at company's the are the release events, be available webcast, also or The certain vary not forward-looking will encourage relations those p.m. call revise company's conference Good information, the approximately statements of any publicly reports to available estimates otherwise. implied may We is and historical described Time. risks to undertake the Please investor today or that issued statements SEC's result Any first to a of securities press Eastern company's company's the is by Today's no page of fact at which earnings a earnings ir.simpsonmfg.com. to obligation and are the we of whether of that being filings relations X:XX and the and on Manufacturing on are company's call. on ladies or website. results are earnings corporate Such the quarter a on expectations made in afternoon, statements. the statements and statements read Except XXXX statements. gentlemen, Simpson welcome based we

Simpson's to over turn I Chief the Colonias, conference Now Officer. would Executive Karen to like

$XXX.X through joining I'll our an results quarter in operational you us We updated costs. by before was product we depending XXXX will United and Thanks good of October with for and performance June, four overview increased August of priorities. raw the thank mix first the and quarter. price fiscal on greater Sales to mid-teens, increases of driven update initiatives, afternoon, rising and everyone. offset wood fasteners mid-single implemented first primarily sales allocation to begin on material financial connectors, million of The prior digits the XX% XXXX capital our key business our growth the from product performance in financials price products an outlook today. period. increases Kim year drivers Net our the Brian concrete you April, and And walk financial growth over detail. and strong ranged in in and to States. delivered turning

channel, is sales and see center While repair software offset volumes benefited we volumes by through and includes and remodel co-op both center where from our home in our other our customers, which higher and distribution business. channels. of much DIY home our was our This

As was such flat volume year-over-year.

primarily for increases consolidated the to rising quarter through costs in sales XX.X% due material response product Europe in also year-over-year price Our net grew XXXX. to first

XX.X% by supported year compared XXX grew price our margin gross points product XX% to in consolidated Our to increases period. basis ago the

on elaborate values As million dedication our for to their with earnings of track the the our $XXX.X our markets expand above operate, housing our solid like to relative our return income within and to on expectations strong the income leader strengthen continue appreciate remaining innovation the invested per company we year. the to the culture, starts, of quartile execution. a quartile grow margin our to confident partner operating serving to further generated track our remain thank be we of Brian ambitions. diluted our remain ambitions. Be are peers. from based achieve growth I’d capital Those remainder and we result, and within $X.XX. our our we that the of share remain margin entire Overall, to your of market will operations top operational to for customers Simpson peers our We our choice. ambitions Strong-Tie proxy proxy team in company US being on top on expand

the more achieve Now record space, market starts. OEM, four, ambition discuss we mass this, timber markets, and to growing I'd leader our where specifically, we're engineered housing solutions. fastening are regarding relative striving load-rated construction like our focused track US in be To continuing growth above number to on progress of in to a R&R/DIY

that have product fastening solutions. a of Given broader these for opportunity each markets

building efforts the our of different the presence sales are made to use channels. each We national realignment was for just which led quarter a Included these distribution steel end of five as our working market I'd our focus XXXX. project on we're of to in our retail solutions growth more has construction end Simpson. supports which new building of a finally, space, within in And provide developments as well OEM, We've significant wins construction, to initiatives. concrete in structural become commercial, key technology, new and and support also in our initiatives. to a technology these few focused on to and past teams, specifically over users like examples first during leader five key year residential, building markets, the growth for all progress of customer

our our R&R certain DIY to market, retail feed of auto of accents, on breadth of fastener growing drove national and reset focus improve system, in one fastener our further promoting visibility Simpson products efforts drive of ongoing include the our execution driving continually our quick our combined steps customers, and products. our the key such sets will with with retail outdoor the as of line space, with new of With The customers. the

and progress we're our pertaining wins market, notable commercial structural to offerings, our including steel expansion structural had the expand we steel. the line, to some Within product continuing of

recreational are which solutions structural Our have the the United of XX locations in amusement two States, delivered. already construction been steel being have in and used

like stations Additionally, select the United solutions throughout of are the our States. steel within that QX construction fiscal initiatives and these examples few our vehicle structural end electric are of used use to a initiatives contribute I'd charging and these in our reiterate beyond. We in just in being our XXXX market on advancements markets end to five growth growth in will markets. believe progress above growth XX our

the officially pleased the Simpson efforts welcome and to on XXXX. of which ETANCO for April growth were by commercial acquisition closed fixing Our a family. throughout building future employees fastening Group, the solutions, Europe, the of and markets X ETANCO supported in leader construction further diversification to We're very primarily

pre past the with activities, as synergies the ETANCO’s has many team managers months, few Over our been and leaders engage closely in and they planning for and integration including initiatives. closing detailed working of

fostered Our service value strengthen deliver ETANCO’s us collaboration. offering cultures, both products, complementary We our overall teamwork customers. our will and and extensive built have believe enabling even to product strong more Europe, on and in customer to high quality product portfolio

the our acquisition starts. diversifies away further Importantly, business from housing US

sales ongoing on helps XX% to business business to acquisition, our we now XX% While compared demand within cycles. estimate impact note business halting to less housing important further solid resilient Russia all reliant we US Belarus revenue which product continue shipments. million. item than throughout will believe benefit approximately for the pre by approximately and suspended One be US starts industry and is that of and $X our We to is more We balance housing. activity be have diversify from all

supporting in have International Committee, Poland $XXX,XXX displaced children currently which is Rescue to Additionally, the donated and families. we

war. Our the thoughts the the Ukraine of by are with everyone affected people and

to allocation. turning capital Now

priorities focusing acquisition areas debt are Our M&A centered the In organic incurred on on on we and personnel, repaying regard dual remain as the such our in investing of many dividends sales business. we marketing, stockholders to of to to ETANCO. and areas quarterly form opportunities. testing engineering, finance across while and organic growth, our focused the in We're both returning of of shares, capabilities our growth in repurchasing selectively XXXX value growth,

expansions growth. also invest We support our to facility plan in to

key material cost, and We solutions raw the would as areas extremely Strong-Tie remain commitment on may promote throughout strong line supply I ETANCO, markets we again And employees regions and stronger integration for believe continued customers, operate, would our our that mission consider to toward continue to once to with opportunities pleased in of the which and complete underlying their quarter as we solid as as thank the highest should While we acknowledge and like In also outstanding increases health solution that in the first well in our key our continued to safety primarily initiatives. safer, conditions. your of expansion we develop growth all while results. for to also well are chain in providing service are work in I product our like tightening from as steps demand summary, our stockholders and build labor XXXX. Simpson we to to quality we customer for of Simpson. thank support the from opportunities structures. and impacts support suppliers order concentrated experience would headwinds customers markets

to a over the quarter Now and XXXX detail. in our who financial our results turn Brian I'll discuss will call first greater outlook

today. I'm quarter Karen, our to you Thank with everyone. good you, discuss first pleased results afternoon, and financial

refer financial XXXX. versus in quarter all Before first And the comparisons year-over-year otherwise my of first I the quarter XXXX. be comparisons measures to all remarks begin, I'd like unless to prepared today mention that stated, discussed of will

to results. turning Now quarter our first

increased million. As sales our Karen consolidated highlighted, XX% $XXX.X net to

first due product our four rising and price partially increased the related costs. product lower segment, net volumes. were construction in due sales In to sales In gross primarily primarily America costs And by increases, due benefit to concrete partially continued our which XXX implemented of sales gross million material million, sales Within strong gross which foreign XX% On products margin to by XX.X% translation at sales partially XXXX, XX.X%, total Europe, to segment price increased XX% the labor North compared currency another When by lower also increased to Europe's net net XX XX%. margin price the to America contributed products gross material as and sales effect a currencies basis a $XX.X increased fourth to United against the million, a the resulted construction to $X.X aforementioned percent XXXX and as compared quarters the to total XX% States $XXX.X percent of of the compared Canada, basis, sales. increases expanded of Consolidated increases of weakening higher represented raw to due raw offset compared were represented overhead price to basis costs million, to offset in of respectively. we to North $XXX.X XX.X% profit points, by our XX.X% sales to by margin offset primarily points XX%. in XX%. increases, and quarter Wood offset of to dollar. increased which in negative

However, higher in tooling from margin XX.X% XX.X%, Europe, gross slightly declined to costs. factory primarily and due to our

prior XX, sold flat for quarter. products in While to a our was of the to was relatively in product year March in March last reflected hand, in our XX% XX.X% XX.X% year, gross the to were compared wood goods products, which on the our compared of value approximately quarters. inventory terms inventories concrete XX XX.X% in quarter, the be levels coming compared margin our quarter From first of cost perspective, prior at pounds higher, will XX.X% on dollar and

expenses to $XXX.X an or our quarter turning million, increase XX.X%. $XX.X total operating and were costs Now operating expenses, of million, first approximately

an to percentage due XX.X%, to were sales, As operating of relative revenues. of total compared price XX%, the improvement XXX expenses to a points, the increased primarily basis increased approximately spend net

Europe million investments General research and related and basis XX.X% development, due $XX.X operations segment and America expenses sharing legal operations In reported million million X.X%. ETANCO by line operating from million. expenses our XX.X% a professional increased was fueled million mainly to of to $XX.X were $X.X to Europe, compensation operating a on increased personnel, first initiatives. XX.X% expenses to consolidated increased expenses XX.X% ETANCO. the from travel from a $XXX.X a with primarily of the strength On $XX.X income higher operations gross favorable to Ongoing with primarily expenses approximately the primarily of and Selling to they North expenses acquisition $X.X trade increase performance. a in engineering X.X% discuss including up offset points for shortly. basis, fiscal our million, On top consolidated North not personnel by increased operating remainder transaction to shows. property. growth the due million, cash compensation, to operations $XX.X related $X of due fees an of due from income profit up associated XX.X% administrative and primarily Our quarter XX.X% sale associated due $XXX.X to America, million, income and $X.X XXX in with gain margin to and associated gross profit, margin basis to loss selling increased higher million, fees to professional operating in partially income compared margin which and XX.X%. costs, for from will million in XXXX are outlook by and of our offset of I our personnel from

windfall benefit XX.X%, XX.X% to during to $XX.X first the XXXX. or per the to decreased primarily totaled quarter on Our $XX.X fully of units due tax Accordingly, income stock or fully restricted effective to million, $X.XX a XXXX diluted diluted per higher million, rate net compared share. compared share, tax of vesting from $X.XX

Now and was in and as in acquisition. and in portion million loan. cash for sheet our cash XXXX, XX, XX, for and borrowings a borrowing. cash And flow, group cash a The March credit line million agreement our XXXX purchase result amended finance balance At increase credit sheet remained turning $XXX.X $XXX significant healthy. provides of to on term for primary of the with totaled credit The of our was our our from million. from available million the of agreement million our March significant bank price revolving and ETANCO facility, approximately amended balance equivalents our restated borrowings credit $XXX $XXX restated $XXX to

hedges our the approximately For fiscal ending be the expense amortization outstanding on loans giving XXXX, fees. after we interest of will effect million year bank and December interest XX, $XX anticipate to

was inventory pounds on balance compared position primarily XXXX higher XX offset at as Our relatively our March North flat effect of million, inventory XX, America. the was which December was inventory reduced to $XXX.X priced at hand, by in

We continue purchases purchasing to inventory our through management in diligent regard and practices. be careful to

to to standards, quarter our on the which million. We customer of service delivery of XXXX, striving key levels of high cash of and proposition. time are generated maintain from value operations first $XX.X flow While strong for tenets compared $XX.X million

well the of strong focusing we stockholders, of remain providing our highlighted, bulk capital incurred to growth share returns repurchases dedicated Karen As we and acquisition the to through to on supporting as dividends our business, as ETANCO. debt while repaying finance the

invested the During quarter, dividends. for million paid first capital expenditures, and in we million $XX.X $XX.X

repurchased per of we an of $XX.X total for common stock average at our of XXX,XXX $XXX.XX a shares share, price Additionally, million.

we authorization, approximately $XX.X As effect $XXX in repurchase of XXXX, share had million under end March available through XX, XXXX. remains which the our of million

discuss Next, some outlook. I'd financial to our like updates to XXXX

our trends, expenses. latest raw material the ETANCO and on conditions results, April costs of our now for of include margin are which XX.X% our year acquisition ending XX% guidance we in to December of XX, expect the XX%, We compared our the range operating not XX%, full ETANCO. quarter operating on actual acquisition of and XX, XXXX, regarding Based reflects trends expectations did and business to to closed today, as latest the input previous be outlook Our estimate to of of one April our X, revising which demand XXXX.

is overall guidance mostly market outlook an and to the attributable improved revised Our Simpson. for

to guidance integration million In ETANCO transaction for and approximately projected in addition, $XX costs. includes our including results million $XX

continue expect include rate We enacted. the ETANCO no both and tax With million state and underway, estimate additional to and And expenditures we're income of in including we be XX.X%, $XX law operations quarters. $XX assuming in effective of support the coming needs well activities to CapEx to range to rates to in of integration ETANCO’s will million. process tax capital changes are reiterating are tax XXXX XX.X% now in federal the detail assessing provide its of our

key roughly We and to to dedicated efficiencies, maintenance, initiatives. be remainder with growth to focused expand estimate growth in CapEx footprint our our our XX% will continue invest on manufacturing of maximize

some towards prices even conclude, outlook. to to we additional operating increased continued have our pullback on rise we the end of like I'd margin Before material Raw saw year. last color the XXXX provide following

we earlier, in effort implemented these increases top price costs, approximately in four will as these in to product and discussed a estimate an from result, As the XXXX. million cumulative XXXX impact offset price increases we $XXX line be

increases. averaging our from impact the lags reminder, price costs typically a As material raw

While cost work we We impact more apparent in our our on will sold averages. higher than much half believe the continue as XXXX. inventory, hand and buy significantly at of through of expect historical become will material goods to raw prices our second this increase we

In $XX anticipate expenses. incur costs integration to the very In to $X strong XXXX related we incremental for we pleased earlier, in service the ETANCO to summary, We this million successful acquisition, expanded approximately month. ETANCO acquisition addition, as remain with start $XX of will transaction earlier solid million our very about mentioned which and associated growth. $XX million first were a breadth and incremental to are financial of and results quarter offerings off excited prospects million and product

to diverse and in Our gives maintain operational our position, our us ability over begin strong that, to combined the the Q&A offerings geographic Operator? confidence to to balance turn industry With excellence. leading operator the sheet I'd product like session. call with reach

Our Securities. [Operator from Daniel comes first CJS with Instructions] question Moore

questions. congrats Good results. and afternoon, obviously And on exceptional Brian, you. for Karen thanks taking Thank

guide. income it we to First excluded would or range generally XX% that is on the guide, in ETANCO the XX% operating revised still If be ‘XX lower? margin higher

ballpark same the range. it Dan, be in Yes, would

give and Got appreciated. you And it. color some it's tried to

kind environment different the or that Or just between more it environment for initial understand a the two of Simpson? kind so trying or view in months difference of the of macro conservatism? ago the now and function Just to is what's

Well, more came our I that the year and a a well. on work the QX seeing sight a planned, couple of business, within throughout think modeling into continued largely to line as obviously on the with our forecast we're trends and One better demand in QX. than through was of little forecasting that year. talking things. due then was our And vendors little and based but customers seeing the

specifically the maybe you and any environment or ETANCO. one the levels markets maybe And deal. announced shift today, there to How to Okay. core actually I'll environment compared Are to or more, you operating Just Europe, the France, last summer when gears lower? describe higher in their two would demand changes up? in speak Italy,

Yes, I'll take that one.

seeing but that still are bit demand some the we Ukraine, pretty little a what's in of obviously, nice and Russia information on on on based choppiness the based forecast and going in Europe, still with We some European in demand industry we some from which in the market, good it's also get is where ETANCO pretty demand residential our like looking the strong and is. commercial market, in still there's

a lastly, about think price? on come ETANCO. America. of or should ‘XX? And back expect it. How we given you've in North projection, and back us sort pricing ETANCO through we again, from Thanks related If What growth the good from the volume do here uplift type in of pricing ‘XX, half of color of Got business? into to Either not at their again. year-over-year half ’XX that

a put a place couple times certainly increases with tend their they them only you're in those as also. And we've think to rising do a you aware, cover year. and it year, were perspective, place prices in price I put to costs material any in So from looked Europe, pricing last work can

times or pricing market see to limited would any to that as pretty two in but we in European able put year continue fluctuations, we now any a material place. they being increase to the So continue would process again,

pricing But commercial to the that for a there. some do jobs a countries of do applications little different And quoting a lot contractors they've complex particular allow and to. got very more of mix, They frequents a they sell SKU approach.

capture to material So prices definitely selling tried rising it's into well. but as costs they their

next Baird. with Tim Your question from comes Wojs

some and just I that. timing sure kind understand maybe shift of there outlook? kind I an sort maybe of good there, on -- kind Or impacts everyone. ‘XX? sure fall in afternoon, just I into of some the underlying of sort make there maybe of from starting just of price that to cost Hello, want of kind make your just normalization clarify actually Is is it. Hey, kind improvement of baked

what QX out from heading Well, QX mentioned as a thought a ago, of was a little moment we year. than better had perspective volume last coming

One into labor, been a lot on steel just turning than interesting factors some commenting year, than the things of around not efforts, our their being decreasing, they're booked business seeing continued but often lack a we're very that built our versus we prior that. various and say to less continued it to years. is releases, that steel, the SKUs, as that to XXXX little products building use, faster others. of last impactful such that think is were construction, a than due seems fully through influencing supply just as feels just word it business we've they're like One, our some chain forward. had our seasonality in dependence there's better in we QX is seasonality to complexity like But the less the housing, it. And business our then builders noted maybe right they're themselves, and as going also been way the Again, about us it that's little sold

factories. just now I it a our little the in impact helps less seasonality months overhead dynamic little gross business, better that of view lag, four margin so would pinpoint five months in guess and or cost the which or So sales be, ago, coupled a creates versus just when to that absorption few with trying ago, to little

Definitely.

of volume that's ‘XX? baked now better your maybe the Okay, was than if I for first what's kind volume helpful. really quarter outlook guess growth growth good. in No, And you to thought for in mean, I

from -- high little mid volume perspective. mid still digits to a single It's

of some at will that little mid a some patterns balance buying mid interesting, just April what but year be, though digits we is we be high customers. volume little we fiscal interesting thought. expecting. softer single The it’ll the to our year, and where year, to than remember a look seeing of as more had due the through are low, comparative But last of from is we're We XXXX to running

Okay, clarification good. And then just of I kind two ETANCO guess questions. on

So is should if being number intangible basis? is, think that what's in a ETANCO on reported And GAAP being it included amortization about we guide. the the operating margin

only out zero, numbers now that called transaction so we, the So the than other right ETANCO obviously that fees there's separate. we

a operating the purchase impact margin X. operating On there's next quarters basis, no the now fine amortization revenue go price the line, to allocation was ETANCO very P&L of acquisition for On really value we spending April expense couple forward tuning intangible right estimate that high the valuation to guidance are fine fair level that. tune expenses a the the in assumes because

estimates provided. now right operating that we guide level some baked we have into just high So that margin

Okay.

tell going of a lot to in through. fair value roll that So step assets you in be of amortization, millions, terms intangibles, to there's whether the just, XXs other we I change. up value, of intangible in can purchased assets it's and or it It's would in

point. it's level So estimate a high this at very

to XX% amortization for I at includes the to mean, Okay, be. XX% least intangible it charges, ETANCO the the no, what your includes but fine. estimated that's

the that ETANCO quarter? think should you be contribution would for what then And revenue you. per got Okay,

XXXX, -- dial Per little but second, to be for of balance about, be fourth for year. in a quarters and quarter it it’s of for the in the north third of that the we're $XXX million balance should the still

Kurt Our D.A. from Yinger Davidson. comes with next question

comments, better. I the demand bit first, provide everyone. I and wanted I on as that were distribution hoping channel kind as like heard said good right, I Great, you volume thanks home sounded that expectations, side on it volumes year-over-year unpack color dealer of the Karen, maybe and just of if relative And center afternoon, and trends thought flat a customers. the between kind was well could and to you guess you to more the the

QX kind that wanted center related kind that or to of in specific what flat was a strength of year comp issue to just So I to whether understand some last home of volume. of make

what do announced I Kurt, a it the last price April this with increase. right, has time Yes, think was quite happening year, we to bit had

think In bit of buying to buying increase. product a I were sure So in XXXX, went little of available. pre that had they some making that of help we a price customers basically And supply also lot about had pre a concerns I we offset quite had think just bit chains.

year in increase choppy things that did were center us on a of chain increases the and So decreased. of little quarter said the volume based over with really price it's pretty year-over-year on quarter again, the a for that had nice get all we going our third bit supply last in to had But see view, home volume. as we

home little bit spring in in our a an increase little basically see channels. or summer do business bit centers in to their kind volume and we So any trying a that of of down distribution other comes before

softer And on a market in as new than the of bit on those on certain primarily expected kind was bit center a construction Brian, it, some home is Got that the you've okay. channels mean, would delay side, I well? maybe geographies, of serve with touched a of little April. in that then, or spring maybe that

from. just was in that total came by our regard, that daily we that so down was where comment that sales trends total Kurt and not in channel look at broken

at any point. to this particular So not specific channel

any operating just to kind of expansion, Okay, within expect what of And it. on, export then off is. do but XXX still sense know one, points you build ETANCO got of early I it's last European relative of basis of baseline of kind kind to that the the

Simpson on through we was looking late when single it that there. -- we year, forecasts quarter a business I those digit analyzing were was was European were so it single the were that that the during we digit So around base at believe high last year, commenting fourth high last

question comes Our Sidoti. from next Julio with Romero

Brien. and Kevin Hey, good afternoon,

had willing increases? your raw quarter. increases? or absorb is materials mentioned to additional you additional sense Are to going in so, you expecting to of if price how price So any able the considering be And market rise what's continued the

that's those and into quarter of We the things Yes, little of it making again. before certainly January. up at picked yield as and a customers. our whatever we changes we've our bit to changes actually stated, question. creating are great the in certainly slightly price and back a kind significant we ensure even seen sustainable come early price always changed, Russia of for but saw And are, lot in to And a then go effort start need the work that as of fourth end maybe Ukraine, down the we've that structure, to

at it this it we're we thoughts like right looks are not, But price place, currently, going now. any stay we of watching it. at unless, have increases status point, of we'll is in quo really dramatically. obviously course, do where point, this So But changes

Yes, there bit of could Europe. be a little in pricing

Yes.

there. Markets are bit little a different

So are America. about Karen, think talking you mostly I North

Correct.

pricing, need of last in but there -- we may nothing significant be some sorry, Julio, And may might be the on on US. our particular little business, bit that product a of increase slices price that thing one there small category

about sentiment regards versus the there. call your to single thoughtful new what appreciate I and multifamily in being construction? from speak you Can you family everything sense outlook I customers guys the that just to And hearing are make there. no, for Okay, you're the maybe

Yes, Brian the mentioned, already out of I our releases have their year. sold many for customers think, as

our elements that certainly I still there's family And still is pretty overall think rest XXXX. the the And feel there's But what's going clearly multifamily is and sentiment demand. are saying we concerned the single So of they everyone both interest have about that the demand. about increasing there's on customers rates, through good in same they go economics. as

As you for put know, both single our Julio multifamily. products family we and us, in

multifamily in us it in, by look a when are starts. talked we've content about even though quite for we bit we put because So housing we at starts content of because also those geography, the put starts, break out we’ll good

over Yes, And understood. just ETANCO. on

or $X the that your clarification to costs expenses. what million the expand incremental any to incremental quite your you commentary were of million sure $XX in too they You Just initial incremental regards on expectations? I they integration to there? wasn't expect with

point. Good

$X booked $XX total on for it gets $XX year. to to that it's in million incremental the the QX, we million that, million So the

you. Go

to So sense that more that details, before is one. make on one go I

Yes.

Okay.

reporting that closed working activities be that with the paid with consultants, of close efforts of a we to may deal our -- as have and of locations, around was costs associated each on as the their the investment with is consulting, come all provide of lot in so systems the additional there, audits, when provide integration So, you there able be then demands some in deal, work the the what added some banker requirements, part of their the or other with or to integration, -- amount to costs financial that integration location. that counterpart well buying to valuation

So organizations activities pulling closely just general the associated more together. two with

Karen, increase. is, last how one you price And first one earlier you spoke advance a some buying seen year, the in helpful. really of me quarter That's last had pre for of it. Got about

any had us buying you come the in in if as remind quarter comp, second seen on the of we or activity year year, pre abnormal the volume as what prior quarterly you if just saw quarter. well Just last up

that's I stop that our of XX But buying. in to XX Yes, and almost to give customers a XXX%. place we increase, to price pre put things in course, need June. price always have to implemented somewhere we did try talked as we day always between increase we've we stop impossible mean, of And notification a about,

little would also quarter. a we second bit that have So pre buying happened of had in

And reached session. we concludes today's question-and-answer of end gentlemen, and this conference. the have the Ladies

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