TRUBAR Inc. (TRBR.V) Earnings Call Transcript & Summary

Good afternoon, everyone. Thank you for participating in today's conference call to discuss Simply Better Brands Financial Results for Q3 2023. Before we begin, let me remind everyone of the company's safe harbor disclaimer. Certain portions of our comments today will concern future expectations, plans and prospects of the company that constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements containing verbs such as aims, anticipates, estimates, expects, believes, intends, plans, projects, will, may, continue, projects or targets and negatives of these words and similar words or expressions. Forward-looking statements are subject to risks -- sorry, subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated by the forward-looking statements. Factors that could affect our actual results include, among others, those that are discussed under the heading Risk Factors in our most recently filed reports with the SEC, including our annual report on Form 10-K, our quarterly reports on Form 10-Q and our current reports on Form 8-K. In addition, this call includes certain discussions of certain non-GAAP financial measures, including adjusted EBITDA, the most directly comparable GAAP measures and reconciliations for non-GAAP measures are available in the earnings release and other documents posted on the company's website of simplybetterbrands.com under Investor Relations. I would like to remind everyone that this call will be available for replay through December 14, 2023, starting tonight. Executing the conference call today is Kathy Casey, the CEO; and Brian Meadows, CFO of Simply Better Brands Corporation. Subsequent to the formal presentation, we will not be executing a live Q&A session, but answering questions submitted in advance of the call. Should you have additional unresolved questions, we encourage you to reach out to our Investor Relations website. Now I would like to turn the call over to the CEO of Simply Better Brands, Kathy Casey.

Thank you, Jenny, and thank you, everyone, for joining us today. During today's call, we plan to cover 3 topics: first, an overview of Simply Better Brands; second, a review of our Q3 commercial and financial results; and finally, some insight into the back half growth drivers for Simply. After taking Simply Better Brands public in December of '20, we are laserly focused on growth, both organically and through acquisition to diversify our portfolio, expand our capability and to acquire top talent. And now here we are 3 years later, we've completed 6 acquisitions, and we operate in 3 core verticals: plant-based wellness, clean-ingredient food and ultimately, next-generation beauty. Our mandate is simple, we drive both by relentlessly following the consumer and innovating to solve problems. As a result, we source our growth through consumer-centric innovation, acquisition and expansion, both in category and in channel. The business model is fueled by buying, building and if it makes sense, specifically selling brands, both in a direct to consumer and B2B environment. A key growth focus for us is our rapidly growing TRUBAR protein bar. Driven by expanded distribution, the brand delivered $10 million in '22 on top of $1 million in '21, is forecasted to accelerate beyond $30 million yet this year. One of the drivers of Simply's success is access to strong experienced talent from companies like Procter & Gamble, Kellogg's, Mars, R.J. Reynolds, that we have the pleasure and opportunity to have in our leadership team and on our Board of Directors. Essentially, decades of brand building lives in our DNA. In Q3, I'm pleased to say that we delivered a strong and actually record quarter. Net sales of $19.4 million compared to $13.4 million in '22 or 40% growth, a net increase of $6 million. Year-to-date revenue is now $67.6 million versus $42.4 million a year ago or 59% growth, all while achieving 65% gross margin and continue to buy down our debt, simultaneously delivering a positive adjusted EBITDA. I'd like to take a moment to thank many of the team members who are on the call today for your dedication and discipline to enable these results. As we look back at the back half of '23, we're forecasting the following growth drivers: distribution, expansion of TRUBAR at Costco and now currently in BJ's Wholesale as we chat today. Continued customer acquisition on PureKana, No B.S. entering Walgreens. We shipped that back in September, and we are going add shelves here in Q4, as well as the continued expansion of the portfolio Vibez, all while looking at ways to expand into additional categories through consumer-centric innovation. The team accomplished a myriad of significant milestones in Q3. Simply grew, as we mentioned, $19.4 million, while delivering adjusted EBITDA, significant improvement versus Q2. We also were incredibly mindful of our operating costs. And if you look at the results, you'll see the operating expense reduction of $4.3 million versus Q2. We continue to buy down our debt with promissory and our convertible debt reduction of $2.8 million year-to-date. PureKana remains the #1 e-commerce brand amongst 4,000 brands. TRUBAR delivers, as we mentioned, $4.5 million in the quarter or 23.7% year-to-date. And No B.S. Skincare on top of its base within CVS, now enters Walgreens. We would like to recognize that top line revenue for Q3 is slightly lower than Q2, and this is really due to the timing of the national promotion with Costco that we enjoyed in the first half of the year. Additionally, Q3 EBITDA is demonstrably improved to a positive $100,000, driven primarily by material reductions in marketing while still driving and enabling $6 million in growth versus a year ago. We are pleased with our commercial progress in Q3 and remain confident in our talent, our strategy and our execution going forward. Let me now transition a little bit deeper into Simply by highlighting our mission. Our highest order is to democratize wellness authentically every day as we believe that wellness should be accessible to all. We accomplished this mission by building disruptive brands in the emerging plant-based, holistic wellness space. Our focus remains to emotionally connect with millennials and all the older Gen Zs on their wellness and active lifestyle journey. Core to our value prop is going to be speed and agility. We can identify a trend and we can move faster than large corporations to solve a consumer problem and solve it quicker. With this type of agility, we can win first, or we can fail quite inexpensively. Now new to this call, this quarter's call, we wanted to share some context about our value proposition by reviewing Simply Better brands incubator process. Essentially, we buy, build and if and when it makes sense, we sell brands. For example, PureKana has more than tripled in size and revenue since 2020. TRUBAR Bar has grown from $1 million in sales to a forecast of $30 million here in 2023, and that's happened in just 2 years. And Vibez, we launched in late Q4 of '22, has already done $3.6 million this year. Our proposition is really as follows. I'll start in the upper right-hand corner with acquire. We searched the United States and potentially other countries, and we find and acquire differentiated brands. They're usually started by passionate founders, and they operate primarily in the direct-to-consumer space. We look at certain criteria around, they must be wellness brands, they must be differentiated, they must be on trend, and ultimately, they must be natural, organic or to a minimum incredibly clean ingredient brands. We then take those brands, and we put them actually into the Simply Better Brands model. We integrate those brands with the capabilities and resources that we have. And as you can see here, we ultimately look at the brand promise and refine it to make sure that it's going to resonate strongly with consumers. We look at the future portfolio strategy where the brand can stretch and ultimately, we design our go-to-market to make sure that we enter the right channels for the right set of customers at the optimal time with a portfolio and a price pack architecture that resonates with that said shopper during that particular trip mission. Once we acquire and build those brands, of course, then we start to get some traction in terms of expanding those brands. Once integrated, we expand via channel, category, portfolio and sometimes geography, either here in the U.S. or outside of the U.S. As those brands grow and they start to deliver incremental revenue and profit, we actually then reinvest those monies as it relates to reinvesting back in growth. That could be either with our current assets that we own today or potentially new assets that we will acquire. And if it wouldn't make sense -- in the last bullet point there, if it wouldn't make makes sense, we may also choose to sell said brands. When we've got them to an optimal value, we can give the highest return to the company and ultimately, to our shareholders. At that point, the cycle starts over. And the resources earned from said asset, then can be used to go out and potentially acquire additional assets and add them to the portfolio. Assisting us in really executing this process is the very accomplished group of leaders and Board members. And I'll start from right to left. Michael Galloro, Board Member, Principal at ALOE Finance in the CPA with extensive experience in M&A. Richard Kellam, currently our CEO and Director at Data Communications Management Group, with extensive [ CPG ] experience with companies like Mars and The Advantage Group. Kingsley Ward, a new Board Member, Chairman and Managing Director or Managing Partner of VRG Capital and the Chairman of Clarus Securities. Brian Meadows, on our call today, our talented CFO with strong operational experience in both public, market and start-up experience. Paul Norman, our Board Chairman, with over 30 years of experience at Kellogg, running a $9 billion P&L. And then myself, CEO and Board member, 30 years of experience at P&G and Kellogg in sales, marketing and general management across every class of trade. My last role at Kellogg was leading a $2 billion portfolio across the Kellogg here in the United States. Simply Better brands actively participates in actually 3 categories. We participate in 3 verticals, portfolio brands across 3 different verticals. The first one, of course, being TRUBAR, in the middle, our #1 brand, clean-ingredient foods. To the left there, our plant-based wellness brands, which we enjoy, and we have 3 different brands: PureKana, our largest brand, Vibez and Seventh Sense. Some of those carry CBD, and some of them don't have CBD in them. And then lastly is our next-generation beauty brand, which is No B.S. No B.S. banned 1,600 ingredients. [ PureKana's ] reputation is one of the cleanest brands in the category. It sources its value from last consumers with the large players that no longer meet those consumers' needs. Essentially, these brands aligned with an informed consumer is mindful of what goes in, on and around the body. This past year, we've integrated and activated another plant-based wellness brand around Seventh Sense as we mentioned and the launch of Vibez back in November with a keto offering as well as CBD offerings. And it focuses on millennials in the [ plant-based ] wellness space via subscription model and direct-to-consumer. Due to the extensive capability in this marketing space, Vibez sold $2.7 million year-to-date and then if you add to Q3 on, it's up to $3.6 million. And then of course, we intend to have it close at a higher rate as we look at the following year. We want to give you a highlight of our revenue as we look at the portfolio and how it's expanded over time. Our brands, which primarily started -- I'm sorry, really, if you look at it, you'll see that we've really worked diversely to be able to expand our portfolio. This one looks at the business by quarterly. [ DSC ] originally back in Q3 of '21, the business was primarily PureKana. In Q3, you'll see we started a nudge with some of the other brands, particularly around TRUBAR. And then if you look here at Q3 in 2023, roughly about 40% of the business ultimately was outside of PureKana. And we plan intentionally and by design look to expand and diversify the portfolio so we can source our growth in revenue in different places and have some opportunities about where to accelerate the brand going forward. This page here looks at it from a quarterly perspective, and the next page here looks at actually an annual perspective. And as you can see, annually, the scope and the diversity even gets greater. Once again, 35% of this is from TRUBAR, and roughly a little less than about 10% sourcing from other significant brands like NO B.S., Seventh Sense and Vibez. Where do these brands find a home? They find a home, primarily TRUBAR, which is our biggest, biggest focus. They find the -- we look at the business, as I mentioned, around TRUBAR $1 million here in '21, as you referenced; in '22, $10 million; focus is yet this year to be $30 million. And what's driving that growth? One of the biggest areas of growth for us is actually our entry into Costco. We've been at Costco capital since 2018. We continue to expand within that same footprint. And we continue to meet and exceed expectations within Costco. You'll see the middle bar graph there at Costco, we did about $13,000, or $1,299 was our average for July, August and September of this year in terms of the TRUBAR performance? And that TRUBAR performance is against a hurdle rate of roughly 1,000 expected by Costco for a bar to perform and remain in Costco every day. If you turn towards where we're heading directionally going forward, you'll see here that we have the bar in BJ's, of course, entering here this month. We continue to expand in Costco. And because of our success of the velocity of these said brands, we are actually adding a second SKU. We have a second SKU in one of the regions down in the Southeast, if any of you live down in that particular market. And we also have confirmed that the big event that we had in the first half of 2023 will again be part of 2024. And so we have confirmed, and that's critical, obviously, in terms of how we source the anniversary growth, our growth from year ago. Our brands, which primarily started online, you see down in the corner, we used to be about 90% online business. You'll see -- down the lower right-hand corner, you'll see that almost 2/3 of the business is roughly online and then we'd expand obviously, with a significant more portion of our brands going to brick-and-mortar. The brands that were online now are omnichannel brands. That's the goal of the company. And it's balanced and sourced virtually across every class of trade in the U.S. and Canada. Some notable retailers include Costco, Amazon, CVS, 7-Eleven and [ selective ] locations. As shared earlier this year, TRUBAR has signed a distribution agreement with Sodexo, one of the largest food service retailers in the world, will be entering 1,500 locations in Q1 of next year across colleges, on-site dining and health care locations. We've entered, of course, the BJ's in October. And then we have planned placements in -- for Q4 in Sobey's Grocery Store and Sheetz convenience stores here in the United States. No B.S. is added in and out of T.J. Maxx, the bjs.com business, and also [indiscernible] entering Walgreens here as we speak with Q4 plans for No B.S. to go into the Discount Drug Mark. Now to see how these strategies come to life. I'll turn it over to Brian, our CFO. Brian?

Thank you, Kathy, and good morning, everyone. I'm going to first go over our revenue progression over the last few years. This graph cover's Simply Better Brands sales growth story that really took off starting in the fourth quarter of 2021. Quarterly sales prior to that were single digits and were based on PureKana and No B.S. for most of the year. In August, we acquired Tru Brands, and it began to contribute materially to SBBC's sales growth starting in the first quarter of 2022. PureKana's new marketing program in 2021 started to produce tremendous top line results starting in the fourth quarter of '21 and has been delivering significant sales ever since the launch. No B.S. Skincare also launched in the 3,200 CVS locations in 2022 and as Kathy said, have also -- entering Walgreens as of the fourth quarter. Sales for the first [ 3 ] quarters of '23 are significantly higher than the comparable quarters of 2022. We're seeing growth spread across more of the brands with 2 representing 35% of 9-month revenues compared to [ 15% ] in the fourth quarter of 2022. Getting into the third quarter results, financial results. Revenue for the third quarter was $19.4 million, an increase of $6 million or 45% growth compared to $13.4 million in the third quarter 2022. PureKana's third quarter revenue for the 3 months was $13 million compared to $9.3 million in 2022, an increase of $3.7 million or 40%. And again, PureKana's revenue increase was driven by marketing investments we made in the latter part of the second quarter to increase in new sales and subscriptions. Tru’s third quarter revenue for the 3 months was $4.5 million compared to $2.8 million in 2022, an increase of $1.7 million or 62%. No BS’ revenue for the 3 months was $0.8 million compared to $0.7 million in 2022. And Vibez and Seventh Sense third quarter revenue was $1.1 million. Cost of goods sold came in at $6.7 million or 35% of revenues compared to $4.6 million last year, at the same time, 34% of revenues. Cost of goods sold as a reminder with online sales typically -- sorry, margins for online sales typically range in the low to mid-70s and retail business-to-business sales are more in the 30s to high 40s. Gross profit for the third quarter of 2023 was $12.7 million or 65% of sales compared to $8.8 million, 66% of sales in the third quarter of 2022. Operating costs for the third quarter of '23 was $14.2 million, an increase of $3.7 million compared to $10.5 million in the third quarter of 2022. Then the majority of the operating costs increased for the 3 months ended September 30, 2023 were marketing expenses. They were $9.8 million in Q3 or 69% of operating expenses and the increased $3.6 million over the previous year directly related to increasing revenues for PureKana, Vibez and Tru sales. Most importantly, though, marketing was down $3.6 million from the second quarter of 2023. In the third quarter of 2023 online advertising accounted for 82% of marketing expenses compared to 83% in the comparable period. In the third quarter of 2023, retailer promotional allowances accounted for 13% of marketing expenses compared to 8% in the comparable period of 2022. An increase in this category was directly related to the higher sales of TRUBAR and No B.S. brick-and-mortar sales in the third quarter of 2023 compared to the prior period. Customer service support represented 10% of operating expenses for the Q3 and that increased $0.9 million over the prior year. These expenses were directly related to the increase in sales of PureKana, Vibez business and represents total 2 categories of expenses. We've got third-party customer service agents, and we've got information technology used to operate an affiliate marketing programs. Category 1 typically increases an increase of customer orders and sales. However, the company has been working on continually automating customer service paths to reduce the volume of transactions that agents need to directly work on. In Category 2, actually, was the primary driver for the increase in the operating expenses related to customer services in the third quarter, increased $0.7 million. Of that $0.7 million, $0.3 million was really onetime expense related in the third quarter. Professional fees reduced $0.3 million in the third quarter compared to the prior year, and that reduction was driven by lower audit fees and lower consulting fees. Salaries and wages were $0.9 million for the third quarter of '23 and decreased $0.1 million from the prior year. And this is a result of head count reductions made in the Herve and the BRN acquisitions as the company sought operating synergies post acquisition. The operating loss for the third quarter was $1.5 million compared to $4.7 million in the second quarter. So a significant reduction in operating loss driven by tight expense management as we highlighted previously. And this also compares to a loss of $1.8 million in the prior period. Other income for the third quarter was $1 million compared to $0.2 million in the third quarter of 2022 or an increase of $0.8 million. The main components here were finance costs $0.5 million and a gain on remeasurement of warrant liabilities of $1.3 million. Our net loss for the quarter was $0.6 million and decreased $5.7 million over the loss in the second quarter of 2023. And it also improved $0.2 million over the operating loss in the prior period. Looking at adjusted EBITDA, we generated positive $0.1 million in the third quarter, which was a $2.5 million improvement over adjusted EBITDA loss compared to the second quarter. Moving to the next slide, looking at 9 months. So revenue for the 9 months in '23 was $67.6 million, an increase of $25.2 million or 59% growth compared to $42.2 million in the comparable period. As you saw on the previous slide, our revenue as of the end of the third quarter has exceeded our full year revenue in 2022. PureKana's revenue for the 9 months was $37.9 million compared to $32.4 million. Tru's revenue was $23.7 million compared to $7.2 million in the comparable period. No B.S. revenue for the 9 months ended was $1.4 million compared to $1.8 million in '22. Vibez and Seventh Sense revenue was $4.5 million compared to $0.7 million in comparable period. Cost of goods sold was $27.4 million for the 9 months compared to $13.9 million. Gross profit for the 9 months was $40.2 million or 59% compared to $28.5 million, which was 67%. Again, the decline in gross profit is really driven by the mix. Online direct-to-consumer sales have higher margins, as we highlighted compared to business-to-business retailer has lower margins. We have a higher mix of business to business this year, and we see that trend continuing. So is an expected drop in gross margin. Operating costs for the 9 months were $47.4 million compared to $34.4 million in the comparable period. Then we -- previously as we talked about the quarter, most of that is marketing related. And then looking at the net loss for the 9 months was $9.6 million. Our EBITDA loss has improved from where we were in 6 months to a loss of $1.4 million and that again, the primary driver for the adjusted EBITDA loss, you got to go back to the second quarter with the increase in the investments community and marketing to rebuild our subscriber base and customers in really our affiliate marketing programs that's behind us, and we have seen a much improved quarter as we highlighted. Moving to -- looking at debt reduction. We're building on the successful debt reduction initiatives in 2022, where we reduced short-term promissory notes and convertible debentures in '22 by $4.5 million. We have further reduced our debt in 2023 by $2.8 million. Buying those 2 together, we've reduced our debt over 2 years to $7.3 million with more to come. A reminder, we did have a successful cash capital raise in February of '23, where we raised million CAD 7 million roughly USD 5 million. And additional sources of financing, we've been increasing our use of short-term lines of credit for a number of our subsidiaries, such as Tru Brands and No B.S. These credit lines are typically tied to large customer purchase orders and receivables. The average life of these credit facility loans is typically 3 to 5 months. We will see the short-term loans fluctuate on the balance sheet as we finance larger customer POs. These credit lines are being used to support our rapid growth with customers such as CVS, Walgreens and Costco. We've got a disciplined approach to using these lines only to finance large customer POs. And for example, we borrowed a total of $13.6 million in 2023 to finance large customer POs in the first 9 months. And during that same time, we repaid $13.1 million of these facilities. Again, a great application was used on the MVM Costco order that we delivered in the first 4 months of 2023. We also have factoring facilities through C2FO, which provides us with quick access to cash on large customer receivables at a lower rate than our PO financing. We have this in place for both Tru and No B.S. Looking at the balance sheet highlights. Cash on hand, September 30, 2022, was $3.3 million, which is up $1 million from year-end, total assets as of September 30 were $30.7 million, and liabilities were $24.1 million. And just a reminder, the liabilities include $1.6 million warrant liabilities, which is a noncash liability. As mentioned earlier, we released our promissory notes and convertible debt by $2.8 million for the 9 months ended. Our basic shares outstanding are 72.3 million, fully diluted shares outstanding $98 million. And now I will turn it back over to Kathy to wrap up. Thank you, Kathy.

Thank you, Brian. If you look ultimately at the revenue as we referenced earlier, the company did about $15.6 million in '21, USD 65.4 million here in '22 and year-to-date, as Brian had referenced, our year-to-date revenue actually exceeds all of last year. And at that same time, of course, our market cap is demonstrably lower in terms of our market cap today versus actually even 1x our annual revenue. So what we are committed to without question is, as we wrap up here, we'll continue to source our growth through incremental categories and expanded channels and disruptive innovation. And over time, this vigilance and commitment, we believe that our stock price will recognize the results. As we wrap up, again, a couple of key highlights. Brian and I have referenced it, record quarter with $19.4 million of revenue that's U.S., positive adjusted EBITDA, significant material improvement on EBITDA performance versus Q2. Promissory note debt reduction down and will continue to go down not only last year, this year then on into next year. Strong performance by PureKana. We are today the #1 e-commerce brand. And should trends continue in the category, we have the potential to become the largest CBD brand in the United States and consequently in the world and that's amongst 4,000 brands. TRUBAR as we call actually TRUBAR, the Unicorn, a unicorn brand for us in terms of the growth, not only so far this year, but also the potential of that brand continuing to have exponential growth going forward. And lastly, as we mentioned, no B.S Skincare on top of its CVS base now enters Walgreens, and we are in a discussion with a number of additional retailers both for TRUBAR and ultimately for No B.S. going forward as we continue to make progress in this particular space. The wrap-up we mentioned, we operate in really 3 key verticals. We will continue to stay in those said verticals. We'll continue to focus on and prioritize TRUBAR as our #1 opportunity for growth. It is well timed and is very much connecting and resonating with consumers and retailers. We actually have retailers reaching out to us to be able to put the brand in distribution. That is we know our brand has hit the tipping point. We'll leverage the experience that we have in our leadership team as well as our Board to continue to guide us in the right directions for strategically growth, not only operational and financial performance of the company, but also to continue to add shareholder value going forward. In '23, the play will remain the same category, channel, geographic expansion across TRUBAR. No B.S, Vibez and PureKana. In Q4, we actually enjoyed all 4 of our brands in growth year-over-year, and it is our intent to have that continue going forward. I will now turn it over to Jenny to address some questions that were submitted in advance of the call. Jenny?

Thank you, Kathy. Let me now turn to a few questions submitted in advance of the call. This one is for Brian. Most of SBBC's [indiscernible] in the Mainstreet loan. Can you share some insight and the mechanics and its responsible [indiscernible]?

Happy to do that. So I'll first start with PureKana LLC is the party to the Mainstreet loan. So SBBC holds a 50.1% membership interest through its wholly-owned subsidiary AF1 merger [indiscernible], a Delaware company. PureKana is therefore the main responsible party for that debt. The debt -- the loan is secured over all the assets of PureKana. And there are also 2 personal guarantees made by the original founders of PureKana. SBBC is not a party to that particular loan agreement, nor has it pledged any SBBC assets to support that loan. We continue to take that loan very seriously. And we're currently working with the bank on restructuring current loan payment. Thanks, Jenny. Next question?

The next one is also for Brian. SBBC had some onetime challenges in Q2 on EBITDA. Do you feel that issue is behind you?

We absolutely do feel that issue is behind us. And we think the strong results in Q3 reflect the actions taken by management to move back to positive adjusted EBITDA, and we continue to see progress in the fourth quarter. Thank you.

And the next one is for Kathy. With significant growth on Tru, are you equipped to handle it from the supply and resource standpoint...

Yes. Thank you, Jenny. The simple answer is yes. To enable Tru's growth, we've made some material moves. First, we have tripled our manufacturing capacity. So where in 2023, Tru was primarily made in one factory. Now it is 3 different factories available to us. That supply is extensive, and we feel more than adequate to enable us to have some flexibility of growth going forward in the brand. The second thing we've done is that we've actually leveraged the scale of the brand. So as the brand has gone to our comment in the last 2 years from $1 million to a forecasted $30 million this year, that has some significant economies of scale. So we not only will continue to grow the brand as we look at closing '23 and '24, but under an environment where we've been able to take advantage of some significant COGS reductions, which will improve gross margin, but then also enable us to invest exponentially back in the growth of the brand. The last thing that we've done, and we mentioned in our last call, is that we've added Acosta. So Acosta is one of the leading brokerage outfits here in the United States. We've added them not only to be able to help us acquire new distribution of TRUBAR, but then also have the resources going forward to be able to manage that business. And so we do feel like we're poisedly equipped to be able to manage the growth of that. So thank you, Jenny.

Ladies and gentlemen, this concludes today's conference call. You may disconnect your lines at this time. Thank you for your participation.

Great. And thanks again, everyone, for joining us. We appreciate the support on our journey forward.