Lowe's Companies, Inc. (LOW) Earnings Call Transcript & Summary

Welcome, and thank you for standing by. [Operator Instructions] It is my pleasure now to introduce Mr. Christopher Horvers. Thank you, sir. You may begin.

Good afternoon, everybody, and it's -- I'm very pleased to welcome Lowe's today for our fireside chat. With me today are Dave Denton, Executive Vice President and Chief Financial Officer. We really appreciate your time today, and thank you to Heather Hollander from Investor Relations for pulling this together as well. I'm sure everyone's world have been turned over personally and professionally over the past months, so thank you for making yourselves available. We'll do this in a fireside chat format. Given the virtual setup, we decided the best way to do this is to take questions via e-mail, and I can pose them to Dave. My e-mail is [email protected]. I'll start with -- I'll lead with my questions, and we'll move over to the e-mail questions a bit later on.

So Dave, clearly, we're living in unprecedented times right now. The consumer is seemingly pulling back on areas like apparel, discretionary, some big ticket areas. Seems like furniture is really being impacted, but at the same time, Lowe's is open and serving customers. You also sell cleaning and paper products. It's your Christmas season with spring blossoming right now. And we've been in the stores and my teams have been in the stores, and you're seeing the projects like paint as people are spending more times in their homes. So maybe you could share with us what your experience has been so far during this crisis and perhaps how it's evolved over the past few weeks as it spread.

Yes, sure. First, Chris, thanks for hosting us today. Secondly, thanks to everybody on the line for their interest in Lowe's and then -- and finally, I just want to say I'm just really proud of the company and our associates. They continue on a day in, day out basis to support the communities across both the U.S. and Canada in this time of a real need and uncertainty. I would say, at the moment, Chris, what's interesting is our business is an essential business. We remain open across our platform, all locations. Our first -- we really think about what we're doing at this point in time really in 3 areas: one is making sure that our associates and the consumers that shop our stores are safe; secondly, that we're providing adequate service to those customers, both in the stores and online; and then finally, that we're managing our in-stock position to make sure that we have the necessary products in our stores to support the needs of the communities at this point in time. I would say, if you look across kind of our categories and kind of across all regions, we still see very healthy demand kind of across all of our locations. Obviously, spring is beginning to take hold, particularly here in the south, and you're seeing strong demand in those spring-related categories. I think largely in the north where spring has not yet taken hold, you're seeing still a little bit of soft demand in those areas, but that is very much as we planned for it. Nothing atypical about that. I would say, as we -- as consumers have kind of managed the COVID situation, you have seen spikes in certain products and SKUs, mostly cleaning, paper products and certain appliances and other categories, but those -- while those have spiked, we've seen broad demand continue to increase across other SKUs within the -- within our stores. And I think to your point is you're seeing people today stay home and they're working from home. And as they work from home, they're seeing little projects that need to get done around their house, and so you're seeing strong DIY demand to support those small projects at this point in time. And our Pro customer has remained relatively healthy. I would say it's a little spotty in areas. We've seen the Pro customer begin to pivot a little bit more from interior products -- projects, if you will, to exterior projects. But again, the demand continues to hold pretty steady at this point in time.

And then as the crisis has sort of played on, curious to see how it's impacted from a geography perspective, how it sort of rolled across the country. And obviously, the dense urban areas seem to be getting hit harder than the nonurban areas. So how is it as sort of the crisis has become more present to everybody in the country? How has that played out? And any geographical differences that you're seeing?

Yes, well, really excellent question. I think one thing to note a little bit about just our geography and kind of the platform that we have today is we're probably less densified in urban locations, and we have a bigger platform of stores in more suburban rural locations. And I think the lockdown has been more severe in those densified areas than the less dense areas around the country. Having said that, we monitor our stores in areas where we have essentially shelter-in-place conditions versus locations where we're open completely and they're not functioning under that government mandate. And obviously, stores where there is shelter in place in position are performing not quite as strong as the other stores. Having said that, even in those locations, the demand is quite healthy because there's a lot of retail locations that are closed, and so therefore, we are a destination to support those consumers in those markets across many categories in our stores.

Any sense or any quantitative comment in terms of maybe how different a shelter-in-place urban market is versus a non-shelter-in-place less urban? Obviously, adjusting, there's some weather impact there as well because the northeast, to your point, New York City is ground zero right now, and it hasn't been as nice as the south. But any rough quantification there?

Yes, I probably can't go too deep into that. I think a lot of that is a little bit more weather related than it is shelter in place related because I do know where we've had shelter-in-place locations and the weather has been nice, we've actually seen nice performance in those stores. So probably more to come on that, Chris. But again, I just feel -- I feel pretty good about where we stand quarter-to-date, year-to-date, and we continue to monitor it daily because we've never seen anything like this before.

Got it. And then in terms of -- just curious within maybe some of the shelter-in-place markets. As that has lasted longer, I mean this is my fourth week working from home outside of New York City. Is -- have you seen behavior shifts within those markets and demand shifts? How has that played out over time?

Not too much. I think -- I do think what has happened in locations where people like yourself -- you've been locked in the house a bit. One, you do identify projects you want to get done, so you're kind of out and about. You have needs from a household perspective that you have to get out and about. And you get a little stir-crazy. So to some degree, getting out, working in the lawn, working in your garden, what have you, is therapeutic. And so I think you do see a little bit of demand coming out because of that. And now listen, we as an employer, we need to balance that. We're actively managing the safety in our stores. We've given new protocols and training programs to our associates. We have a very robust cleaning program kind of during the day but also overnight. We've put up shields, plexiglass shields around our checkouts to make that more effective. We're in the process of, I'll say, streamlining and opening up a little bit our garden center because, at the moment, particularly here in the south, we might have 200 or 300 customers in the store, and that's great for a 120,000-square-foot store. That's easy to accommodate, but they tend to kind of gather in the garden center, and it gets congested there. So we're trying to free that space up to make sure that we can support social distancing, if you will. And so we're kind of balancing all of that. And again, I feel good about where we are kind of quarter-to-date, year-to-date from a demand perspective.

And then delve a little bit on the Pro in terms of what you're seeing there. You mentioned there's -- it's been good and certainly sounding positive and it seems like there's a bit of an inverse where, for the best -- most part of the past 4 years, let's say, the Pro has out-comped DIY. It sounds like DIY is out-comping Pro. Is that true? And can you talk a little bit more about the Pro in terms of what their shift in demand that they're seeing? And do you have any visibility into the pipeline of the business?

Yes, I probably can't give you a lot of color on that comp differential, but I will say, again, what we're seeing pretty directly is that Pro customer, that -- this is their livelihood, is to be out working. You're seeing them pretty quickly pivot into outdoor projects versus indoor projects. Clearly, if you're a customer and you have a project underway and you're -- and it's inside your home, the likelihood -- your level of comfort of having someone in your home is pretty low right now. So people are kind of "getting kicked out" of the house and working outside, and so we're seeing that shift a bit. It's kind of hard for us to tell the pipeline of Pros. We don't really have a good way of tracking it. I would just say that we continue to see strong performance at this point in time, but again, we're watching it pretty closely. And keep in mind, our penetration in the Pro, this is kind of making lemonade out of lemons, is our penetration is pretty low, so the effect of that downdraft or the effect of that updraft either way is a little bit muted compared to maybe others.

Got it. Yes. And then as you think about past the next 4 weeks, right, and you think about the crystal ball -- your crystal ball, I'm sure you're looking at scenarios that you never thought you might look at. As you think about, let's say, the back half of this year, and let's just presume that we're not in a shelter-in-place environment by August, let's say, and make it sort of clean for your -- the third quarter. What do you sort of -- how are you planning? How are you -- what's the scenario analysis that you're looking at? And maybe the easiest way to think about it, just how would you compare the '08 to 2010 period into, let's say, like the 2001 to 2003 period in terms of the potential scenarios for the business?

Yes. Listen, I -- we've never had a scenario like this, so I'm not sure I can compare it exactly. I will say that it's probably more like the '01-'02 scenario versus the '08-'09 scenario only because '08 and '09 was really focused on housing. Obviously, what has happened has been just a substantial shock to the economy, and the question is does that bounce back more end of the year or is that more of a U-type recovery. I do think, as we sit here today, the housing market is healthier, clearly, today than what it was in '08. We've had substantial house price appreciation. Consumers, from a balance sheet perspective related to their home, are in a better spot. And I do think the stimulus package -- I give the government a lot of credit -- hopefully can help weather the short-term event and kind of get the economy back rolling. I do worry a lot about just the level of potential unemployment and the fact that it's likely to be in the small business segment, and therefore, the federal government has less control of kind of turning that piece of the economy back on. So that's kind of like the downdraft. That's the worry that I have a little bit. I think on the upside of this is now you're seeing a lot of people working from home, and so I think you're spending -- and I don't think that trend's going to necessarily revert back to everybody coming back to the office right away. So if you're now at home essentially 24/7, you want that to be a very comfortable location, so I do think it could theoretically stimulate some investment in the home over time. But listen, we're -- we've run a bunch of scenarios. We're in contact with a bunch of different economic advisers, all of which have a different perspective of how this is going to play out. I think what is important for us is to create a game plan that we can quickly execute under multiple scenarios, and we can adjust it as we see the economy ebb and flow over the course of the next several quarters.

And so as you just think about those analogies, it seems like that the early 2000s experience was the sort of tech-led recession, wasn't housing-led recession versus '08, '09 and it wasn't sort of a bank financial credit crisis, so clearly, some differences there, which is the silver lining. And as you think about the other side, is this a -- in the balance of sort of big ticket and all the factors that you talked about there, is this a -- do you think this is a GDP-plus category? Or do you think this is a GDP-minus category because of the big ticket side?

Yes. Really, I'm hard-pressed to give you a definitive answer on that. I will -- the only thing I would say is that I do think, if you look at our -- a couple of things. If you look at our business today, if you look at the products and the revenue stream that we have coming out of our stores, probably 2/3 of that is more in the repair, nondiscretionary type categories. So I think it's somewhat shielded. If you have a busted pipe, you're not going to -- you really can't not fix that versus, "Okay, I want to replace my carpet. It's more of a trend because I want to do that." So I think we're a little bit insulated from that. So I think from that perspective, we're well positioned. I also do think this is an opportunity where the strong -- if you're managing your balance sheet, you come out of this in the position of strength. You're going to have a lot of, I'll say, ancillary competitors who are going to be weakened, and I think it's an opportunity for us over the next couple of years to take some additional share. So if you're a retailer who, let's say, specializes in storage or home organization, and that's all you have, we compete with you slightly. I wouldn't have really said you were a major competitor of ours, nor will you probably ever be a major competitor of ours. But at this time, their doors are shut. We're picking up share, and we're going to come out of this with, hopefully, an opportunity to -- in a position of strength and continue to push on areas like that. And each one of those individually won't be that meaningful, but there might be 50 opportunities like that over time.

Yes. The flexibility of operating a box your size in a warehouse format indeed. Maybe transitioning down the income statement a little bit and focus near and long term. As you think about the mix that you've seen, you talked about March and what you've seen so far. Are there gross margin implications? I think there's a lot of concerns out there from investors like you had a target situation where apparel comped down 20 and the essentials business was up 50. So can you talk about the gross margin implications of the demand that you've seen so far?

Sure. I -- listen, I've heard a lot of those big box companies talk about the margin shift and the mix shift. Listen, we're going to have some of that mix shift, but it's not going to be as dramatic as you would see in those big box -- or those mass market merchant retailers. And I'll give you the example. They might have a category apparel, might be a 60-, 70 point; where they have food, maybe 10 points. If you look across our portfolio of products and categories, our differential between gross margin, those categories are much more narrow. The band between the highest margin category and the lowest margin category are much closer together. So yes, we'll have some of that shift, but it will not be dramatic like that. So I think that's a worry that's overstated in home improvement.

Understood. And then as you think longer term and start with the annual plan and thinking about getting back to the 12%, on gross margin this year, you had some good guys coming -- lapping some of the pricing issues, tariffs abating and better sort of sophistication around merchandise planning and markdown planning as well. And how are you thinking about like with respect to this current environment and if we assume that we are -- I think we are in a recession at this point, but the category does relatively well, how might that impact your original gross margin outlook?

I don't -- we don't think it will. I mean we're running our same playbook here. I think we're focused very aggressively on managing our gross margin both from a price perspective but more importantly from a cost perspective, a promotional perspective, making sure that we get the right support from a vendor perspective as we lean into certain categories or certain SKUs. So I don't think it has a dramatic effect on us. I do think at some level, given the fact that we have suppliers who maybe service a lot of different retailers and some of those retailers are, at the moment, shut down, I think it does -- we're the one avenue of growth at the moment or stability for them. At least home improvement, in general, they're not just a common on Lowe's, I think that does help us partner more deeply with them. So I feel confident where we are. As I said, we're grinding this stuff through. We don't have the best tools in place, but we're building them, and we're muscling it right now.

Understood. And then on the expense side, it's more expensive to serve higher volumes generally, especially in an environment where you have extended cleaning. So even if you're closing the store early, you have a more intense cleaning process overnight and during the day. You're also -- there's some inducement to get people to come to work, some benefits that retailers are paying in terms of some of their older employees or just broadly around having more PTO. So can you talk about those costs in the very near term? How -- does it make your SG&A sort of less variable? And then as a side note to that, some of the onetime bonus activity that you've done, would you consider looking at that in terms of like a potential onetime impact?

Yes, so what we've done, we have given our associates, our hourly associates a onetime bonus at this point in time. And I would look at it as largely onetime in the sense that we've given about $300 to our full-time associates and $150 to our part-time associates. All that equates to about $80 million. Additionally, we've donated about $25 million in charitable contributions to support the communities around the nation as we work to battle this crisis. And we've also expanded some level of service from a health care perspective, giving access to telemedicine benefits to all of our employees, whether they're on our benefit plan or not, to make sure they are adequately -- have access to adequate health care professionals. So all of that is obviously driving some incremental cost. A lot of that is onetime. Clearly, we're leaning into cleaning and support from a store perspective. I would say it's an expense, but it's not a material expense to us. I think we're continuing to make sure that what we need to do right now is make sure that we service our customers. We build some customer loyalty, and we keep our staff and those customers safe. So we're doing everything we can to support that. And we think, ultimately, those costs that we incur will pay dividends down the road as we build loyalty in that segment.

Makes sense. And then as you think about the longer-term component, let's say, the back half, let's say, we're in a U scenario in terms of -- and you go through a period hypothetically of negative comp, let's say, in the back half of the year, how flexible is your leverage point? I think the historical rule of thumb is 50% is probably payroll and then -- of your SG&A and then some component benefit adds on top of that. So you do operate an activity-based model. You do have a new labor management system that you've put in. So how flexible is that? And if you did have a negative comp period, to what degree of negative is -- would you be able to not deleverage on the SG&A line?

Yes, listen, we obviously have some flexibility there. We have -- to your point, we just put in some new tools that gives us some opportunity to manage that very directly and very -- at a very micro level. So we would obviously do that. At the same time, we're going through a transformation to this company, and this company has some work that it's got to get done both in the stores and corporate to be more effective. And I do think that we're not going to back off those investments. We might reprioritize them a little bit, but we would probably continue to spend some payroll to make sure that we get our stores sorted and get the adjacency planograms correct in our stores. And so we invest some of those hours in programs in the stores so that when we came out of this, we are very well positioned to take additional share over time.

Right. So same ideas in terms of service the customer and continue the turnaround and play long ball in a -- you manage it, but play long ball and do the right thing for the customer and for the brand and so that, on the other side of this, you'll be in a better spot.

Yes, that's right. And I gave the example earlier today, is that if you look at our stores and you look how our stores are laid out from an assortment perspective, we have products that the adjacencies are not correct. So we have fasteners on one end of the building and drywall on the other end of the building. They should be right next to one another. So we'd like to move all those around. When you start moving those products around, it's a domino effect. And it's a lot of labor hours to make that happen. If we have lower demand, we'll have labor hours not fully deployed, so we can actually deploy now that some of those ineffective labor hours to make those moves so that when demand does begin to tick back up, we're really nicely positioned to sell the project to that consumer or to that pro and accelerate our performance over time. So again, to your point, we're going to try to play long ball here and make sure we're making the right investments that when we come out of here we're in good shape.

Understood. A lot of retailers have taken on debt and bolstered their balance sheet as you did last week and expanded credit lines and prioritizing capital spending, and some have suspended share repurchases. Many have suspended share repurchases. So can you talk about how you're thinking about capital allocation at this point from a capital spending perspective, from a share repurchase perspective, from a dividend perspective?

Yes, I can give you a little bit of color, and there's probably more color to come later. Obviously, the first job of a company and certainly first job of the CFO is to make sure that we have adequate liquidity and our balance sheet is protected, particularly in times of uncertainty. Over the last 4 weeks, you've seen everybody run analysis that you never thought were possible. And so we are essentially planning for the worst but hoping for the best. So what we did is make sure that we shored up our balance sheet, make sure we had adequate liquidity under multiple scenarios that we think are highly, highly unlikely, but we want to make sure that we are protecting ourselves always from the downside. Clearly, we generate a lot of free cash flow. We're -- we have a big appetite for investment. We're still focused and pushing on those investments. Again, we might reprioritize them a little bit, but I think we're still running the same playbook. I think as we think about our dividend, our share repurchase program, obviously, we're very supportive of our dividend. Our share repurchase program, we're not making any changes at this point in time, but that's something that we always talk about. We probably have flexibility there to, I'll say, if need be, to make sure that we manage our cash position and protect the balance sheet as much as possible in times of uncertainty. So more to come on that.

Understood. And it's also -- I'm sure you have a great perch operating a duopoly where your vendors are -- have a very high degree of their business that is run through your box. I'm sure there's some payables flexibility as well. Is that a conversation that you've had?

Yes, we probably haven't had that conversation at this point in time. We're probably more just making sure that we're in stock. We're getting product flow. We're supporting the customers. But yes, I'm sure that's an opportunity for us, but I would say we haven't pushed on that.

There's some -- I think everyone likes to make these calls of like, "Oh, forever." Because of this, the customer is never going to go on a cruise ship again. I think the common thing in retail that is assumed that this is going to accelerate online penetration and maybe not inflect a line but stair-step up and then continue to grow from there. So would love to get your thoughts on that. And then related to that, as you think about prioritizing investments, where does online in -- both in terms of the technology side and fulfillment side fit in your spending priorities?

Yes. Listen, I do think that on -- as you know, we're making big investments in online and supply chain. I do think that this event is likely to accelerate online usage in our channel. I do think the good news about our platform today from an online perspective, and you saw this back on Spring Black Friday or Black Friday last year, is our technology is now stable. So we have a stable infrastructure, and our platform is working effectively from that standpoint, which is good news. So people are being able to use our technology platform to place orders, to have ship to home or place orders and have it picked up in store, so all of that is functioning very well. We do think we have big opportunities to make that experience much more frictionless to the consumer and much more effective and easier for our store associates to administer on a daily basis. And if anything, we're working to actively pull some of those enhancements up earlier into this year to make sure that we can begin to support that process more actively. So I feel like we're in -- we have work to do here. It's functioning effectively today. Do we have big opportunities to enhance it? Absolutely, but I don't think it's necessarily getting our way right now. And I do think you're right. I think, over time, this is going to be a more -- as we've said in the past, this is going to be a more important channel for us and for home improvement. And that's why we were -- had originally talked about making these investments. I think it's just going to accelerate a little quicker.

Understood. Staying on the e-commerce opportunity. This year, you've replatformed, I think, to Google Cloud. And the next step this year is, I think, creating that, enabling the speed to upload new vendors and close some of the assortment gap from a third-party perspective and from a not-in-store perspective. Is that right? And then as you think about the sort of next day -- same day, next day, 2-day scenario, Amazon has -- went next day this past June. Your peer is pushing and making the big investments around supply chain to continue to enhance that. So how do you view yourself competitively from a speed of delivery perspective? And is -- do you think that maybe perhaps in -- given all these changes in '21, do you want to prioritize CapEx perhaps to some supply chain infrastructure to step up that next-day availability?

Yes. Just -- there's a bunch of questions in there. We are -- we platformed to Google Cloud. I say the front end of our website is now on Google Cloud. The back end is not completely on Google Cloud. And back end, I mean largely checkout. And so we still have a little work to push it up there, but we're getting close to having that done. It'd be done in the first half of this year. On the assortment side, we're actively adding SKUs to the assortment, and we're working on that. We have a new process that's getting better, and we're actively doing that. The biggest opportunity we have really from an assortment perspective now is kind of almost looking backwards, is really breaking out product costs from freight costs so that when you're shopping our website, you could -- we look more competitive because right now, freight costs are buried in the product cost. So if you search on an item, like for like, we look high priced, even though if you went all the way through to checkout and applied the freight cost to the competitor's website, we might be really, really well priced, actually might be lower priced in some cases. So we've got to get that dynamic fixed. And that's not so much -- there's a little bit of a technology fix, but it's mostly a merchandising fix and a finance fix. We have to go back to our vendors and get that broken out. And so we're working on that. And then from a delivery perspective, you're right. I think we're probably playing a little bit of catch-up on that. The reality is we're able to deliver from store pretty effectively. We're not able to do it very efficiently. So the opportunity here is to enable the consumer to schedule those deliveries, to pick a time, and us to do it in a way that comes not necessarily out of the store but out of a regional distribution center such that we can do that in a much more efficient manner. And so yes, we're working actively to get that enhanced at this point in time.

Understood. Another question that I've received by e-mail is -- and I'll expand on it. As you think about prioritizing investments, it sounds like online is an important priority. There are other things that you have going on this year, the rollout of the Pro loyalty program. I think you're putting a pricing program as well and remind us of any other additional IT implementations that you're making how to sort of -- how are the major IT projects? And then also Pro loyalty, how do they sort of stack from a priority perspective?

Yes. The good news is we made a lot of progress on a lot of those fronts. So if you think about the investments we made, a lot of the development work in some of those areas have been done, at least for the first phase of them. So we will actively work to push those through. And so I think from a technology road map perspective, I wouldn't see us dramatically changing at this point in time because the payback on most of these is fairly significant, so we would work to deploy that. I think where we probably think about areas that we might defer is -- like right now, we're not doing much remodel in our stores because we're busy, so any, I'll say, non-repair-related enhancements to our fleet is probably getting deferred at this point in time. So we'll probably manage CapEx more from that perspective than products or projects. I would say a lot of this technology work is also being done remotely in the sense that we don't -- our corporate office is largely shut down, but despite that, we're still holding team meetings. We're having project team meetings, codes getting developed and tested. So it hasn't slowed down the progress of work here.

Understood. Another question I've received by e-mail is pull forward. So I'll paraphrase. As you think about the consumer being at home having more time, some of these honey-do lists and maybe projects that one was considering maybe is going to be done later this year but now had a -- how -- they have time to do it. And it's a hard question. But how are you thinking about the work-from-home situation and how that could be driving any sort of demand pull forward on DIY?

Yes. Listen, I think, theoretically, it's possible. I'm not sure how much of that is. Let me give you example. One is I do think, like in spring, people might be buying some of the spring categories maybe a month earlier than typical. Having said that, we have a spring buy. We only have so much product to sell, so it's not -- so we might -- it might happen in April versus May, but it's not going to change the full effect of the spring calendar. So I don't think there's a risk from that perspective. I think the "honey-do list," as you called it, I think we're getting incremental projects as opposed to pull-forward projects. I'm sure there's some of that in there, but if you're like me, I just tell my wife I'm too busy. Now there's no excuse because she's watching me sitting out here.

Yes. You can't hide when you're in your own -- in your house and your yard.

Exactly. Impossible.

Another question on the spring business is are you pondering sort of what like a Best Buy has done in terms of they're doing basically enhanced curbside. No one's allowed in the stores. As you think about managing that density of customer in spring in the garden area, have you done anything in-store to maybe do a curbside? Or how do you manage that? How do you manage that density?

Yes. Yes, we're doing a couple of things. Yes, we're doing in very unique spots, doing a little bit of curbside, but we're not really -- we don't really have that program in -- we have buy online, pick up in store. We don't necessarily have curbside, but we have some very clever associates who've worked out ways to do that when needed. But largely, we're not doing that. But what we have done or in the process of doing is really kind of working mostly in the garden center to either take down some tables, spread out to give us a little -- we call it the dance floor, to give us more spacing in that location so that we can get the social distancing required in that area. And so we're really managing it from that perspective and also training our associates on how to manage customers in our stores to make sure that we maintain that safe distance. And I think we're doing more of that than doing curbside.

Understood. So we're up on time. If -- Dave, I'm not sure if there's anything you would like to end with or emphasize, but if not, we want to thank everybody for joining us on this call today and to you, Dave, as well for taking time to talk with us.

No, thank you very much. Thank you for your interest in Lowe's. And as I said before, we're here and we're open. We're here to support the communities in which you all live. If there's anything that Lowe's can do to help, you please reach out to us. We're happy to do whatever we can.

Thanks so much, Dave. Have a great night.

Thank you and be well.

And this concludes today's conference. Thank you for participating. You may disconnect at this time.