Wilcon Depot, Inc. (WLCON) Earnings Call Transcript & Summary

Good afternoon, everyone. Thank you for joining Wilcon Depot's Third Quarter and 9 Months 2023 Earnings Call. Joining us today are Mr. Lorraine Belo-Cincochan, President and CEO; and Ms. Rosemarie Bosch-Ong, SEVP and COO. As per usual, Ms. Lorraine will give a short presentation, after which we will open the call for questions. [Operator Instructions] I'll now turn you over to Lorraine.

Thank you, Jean. So good afternoon, everyone. Thank you for joining us today for our 9 months and third quarter 2023 earnings conference call. So I will start on presentation with our third quarter performance. As a summary of our third quarter results, our net sales totaled PHP 8.79 billion, growth was flattish at 0.1% year-on-year. PHP 908 million net income after tax. Gross profit margin rate at 39.6%, EBITDA margin at 17.6% and EBIT margin of 13.8%. Slowdown in foot traffic and transaction count in all the stores drove company-wide comparable sales or same-store sales growth to decline 5.7% year-on-year. Comparable transaction count dropped by 7.5%, while comparable ticket size still grew by 2%. Product categories that grew above the average growth for paints and building materials. 2 Depot stores were opened during the quarter, 1 in Luzon and 1 in Mindanao. For the total sales breakdown for the third quarter, the Depot format stores comprised majority of net sales, contributing 95.4% with sales of PHP 8.385 billion. The Home Essentials format increasing to a 2.2% contribution with sales of PHP 199 million and Projects sales, PHP 208 million, increasing 2.4% of the total net sales. The Depots contribution to total net sales decreased as its year-on-year growth sales by 1.5%, while the Essentials grew by 13.3% and Projects sales dropped 126.9%. The increase in the smaller format sales was due primarily to the 2 pilot DIW, we opened in July 2022 and April of this year. As mentioned earlier, the product categories that grew higher than company-wide average for the quarter were paints and building materials. Comparable sales declined by 5.7% year-on-year due to slowdown in foot traffic in all regions. The Depots comparable sales dipped by 7.1%. The Home Essentials likewise declined by 4.4%, while Projects sales as earlier mentioned, rose 126.9%. Comparable transaction count dropped 7.5%, while comparable ticket size still grew by 2%. Gross profit slightly increased by 0.5% or PHP 18 million in the third quarter to settle at PHP 3.477 billion, attributed mainly to the expansion in gross profit margin rate from 39.4% to 39.6%. In-house and exclusive brands continue to improve their profitability, pushing our blended margin despite its contribution remaining at 51% for the third quarter for both years 2022 and '23. Operating expenses, including lease-related interest expense, likewise, grew by 10.6% or PHP 225 million year-on-year to total PHP 2.359 billion. The increase is mainly attributable to expansion related expenses. Rent and net other income closed lower by 33.3% or PHP 46 million, totaling PHP 92 million for the quarter due mainly to the lower collection of supplier support for marketing and promotional expenses. Income tax expense decreased by 17.3% or PHP 63 million to end at PHP 303 million due mainly to lower taxable income. And as mentioned, net income for the quarter rose closed at PHP 908 million, down by 17.8% or PHP 196 million year-on-year. For our 9 months performance results highlights. Net sales for the 9 months totaled PHP 25.943 billion, up 4.9% or PHP 1.220 billion year-on-year. The increase was mainly driven by the contribution of new stores as comparable sales growth declined by 2.1% for the period. Comparable ticket size expanded by 3.5%, offset by the drop in transaction count by 5.4%. For the total net sales mix, share of in-house and exclusive brands was at 50.9%, and categories that grew above average were paints, building materials, plumbing, sanitary wares and appliances. Six new stores were added during the 9-month period, while 2 bottom-dwelling smaller format branches were closed, ending the period with 87 stores. The Depot format accounted for 96.5% of net sales. The Home Essentials format 2.1% and the remaining 1.4% by Projects sales. Categories that grew higher than the 4.9% company average were paints, building materials, plumbing and sanitary ware and appliances. For comparable sales, the Depots comparable sales were lower by 2.8%. The Home Essentials likewise dropped by 2.2%, while Projects rose 75.5% for the 9-month period. Comparable ticket size expanded by 3.5%, offset by the drop in transaction counts by 5.4%. Gross profit grew by 6.6% or PHP 631 million to total PHP 10.248 billion, driven mainly by the expansion in gross profit margin rate from 38.9% to 39.5% year-on-year. In-house and exclusive brands margin increased enough to overturn the impact of the slight drop in contribution to net sales from 51.1% to 50.9%. Contribution of our in-house and exclusive brands reached 51.8% in September. Operating expenses, including lease-related interest expense increased 17.6% or PHP 1.053 billion year-on-year to close at PHP 7.036 billion. Expansion-related expenses primarily drove the increase, particularly depreciation and amortization and manpower expenses. 8 stores were opened from the fourth quarter of last year to third quarter this year. Other income jumped 36.4% or PHP 108 million to close at PHP 405 million for the 9-month period, traced mainly to the rebate we received from a trade supplier for promotion activity in the first quarter, plus the increase in the usual rent and other income from suppliers and the delivery fees from customers. As a result of the decline in comparable sales growth, coupled with the increase in operating expenses, net income for the 9 months dipped to PHP 2.726 billion, lower by 7.9% or PHP 235 million year-on-year. Operating performance for the 9 months ended September 30 yielded substantial operating cash flows. However, it was offset by cash flow used in capital expenditures, lease payments and payments of dividends. Current ratio slightly declined from [indiscernible]. Meanwhile, the company's liabilities consist mostly of trade payables, lease liabilities recognized under IFRS 16 guidelines. Continuous investment in store network expansion, additional warehouse buildings in the main distribution center store and transportation equipment, IT, infrastructure, software, renovations resulted in a total CapEx of PHP 2.006 billion for the 9 months. Except for 2020, year-on-year sales from 2013 is increasing as we intensified our store network expansion from 2017. Operating margins have been generally expanding year-on-year, except that these dip slightly for the period compared to the full year 2022 margins. In our Board meeting last February 2022 -- last February 22, our Board declared dividends totaling PHP 1.5 billion, equivalent to PHP 0.37 per share, representing a 76% increase over the prior year's PHP 0.21 share. For 6 years in a row, that is every year since we listed, we have given our cash dividends even in 2020 amid the lockdown when majority of our branches were closed. We remain committed to distributing cash dividends consistently every year. And to reiterate our growth strategies for our store network expansion plans, we will endeavor to open 8 to 10 branches this year, majority of which will be in Luzon. We have 6 stores in various stages of construction. However, because of delays, mostly due to the rains these past months, management has decided not to cram the completion during the holiday late in the last 2 months of the year. Most likely, the other stores originally scheduled for the last quarter will spill over to next year. While we are looking at a slower sales growth than expected this year, we are encouraged by the relatively good performance of most of the stores we opened in the last 2 years. This is also so we can proceed with the rationalization of our smaller format to do it with our DIW stores, which we did in the second quarter, we'll stay on track to meet our 100 store targets by next year. We budgeted close to PHP 4 billion in CapEx for this year. We have spent PHP 2.006 so far. Part of this budget are for branches that will open next year but construction has already started this year. We will continue to develop products in other categories for in-house brands to increase their contribution and to diversify further our product portfolio. We continuously improve our physical and online store layout and features and other customer experience enhancements and continued marketing efforts to further strengthen and increase brand awareness and visibility. Thank you, and I shall turn you over back to Jean for our Q&A.

[Operator Instructions] Yes, Teresa.

A few questions. First, what led to the year-on-year GPM expansion in the third quarter? I might recall in the second quarter, it was driven by lower inventory and shipping costs. Was it the same in the third quarter? Are there other factors driving the improvement?

Well, it's most likely a factor of the Metro Manila sales who have -- I mean, the Metro Manila stores who have the -- like the lowest gross profit margin, the contribution has dropped this third quarter versus, say, Northern Luzon, where we opened the most number -- Central and Northern Luzon where we opened most number of stores this year. And at the same time also, like South Luzon, the Calabarzon area. The contribution also dropped by 1 percentage point, Metro Manila dropped by around 2 percentage points, and was replaced by the increase in the contribution of the North Luzon stores and the Visayas stores. So whereby, like pricing-wise, we would have also higher prices because of the logistics cost that we tuck in to the same price.

So in terms of operating margin, just as a follow-up to that. Operating margin, what is the difference between the EBIT margin of the stores in Metro Manila, Calabarzon, North and Central Luzon?

[indiscernible] for the same because of the -- actually -- the EBIT margins actually in North Luzon is higher because we already have like scale -- achieved scale there and some operating leverage. And a close second would be Metro Manila. The Visayas and Mindanao regions because of the like the shipping -- you cross sea, which really is a more expensive way of shipping the products would have -- like still would be a lower operating margins. And of course, the scale is also not present in those areas.

My next question is on the SSSG. How is SSSG trending so far in the fourth quarter or in October? And what is your outlook for the rest of the year?

Ms. Rose or Ms. Lorraine?

Well, for Metro Manila, it remains a challenge. I guess the only thing that we're working on is that the loyalty of the customers because Metro Manila is really considering that the market is soft, there's so much competition also in Metro Manila. But for other areas, like the new areas where we look at, I guess, in terms of SSSG, it will have an improvement, I would say, but Metro Manila is really tough because of speed competition.

What's the competition coming from Metro Manila?

I am sorry. Yes, we're competing both from the marketplaces, the brick-and-mortar stores, so as we speak now, I'm sure you -- I mean, you've seen the reports of the marketplaces in terms of their revenue. And these are not a good indicator because it's not equal level playing field. We see a lot of cross-border items coming in especially for small hardware items.

But I guess, competition won't really in the categories are strong in like tiles flooring?

Yes. For our core products, yes, we're still comfortable. But SSSG is because of the -- you've seen in the report, although basket size or transaction amount has increased, foot traffic and transaction count has come down, especially for Metro Manila area. But Luzon -- North and South Luzon remains positive.

And my last question, can you elaborate more on the improvement in Projects sales, which type of developers are you seeing increased demand from?

Well, we're seeing a ramp-up on their fast-tracking developments. In fact, most of the projects that we're serving now these were secured during the pandemic. And even now, we were able to do, I would say, snatch sales gain probably because snatch sales in terms of shifting the specification from our product to other specified products. And also the developers, especially hospitality, they're fast-tracking the construction. There's this big development, and I's would say, North of Metro Manila, yes. And then there's also the same company, there is expanding also in Visayas and in Mindanao.

Any other questions?

Curious about how easy or how difficult it is to obtain commercial plots of land in Northern Luzon?

Well, it's quite a process to acquire a property here in the Philippines. Especially since we -- for us, we require a larger plot of land. And usually, we'll be talking to several owners. So it's not so easy. And at times the location may not be suitable or may not be classified as for commercial use. So we'd have to convert it to commercial use from, let's say, farmland or other uses. So it's quite a -- for us to say we are starting this -- construction of this site, probably 6 to 12 months' worth of work had to have been done, like negotiation, looking through the titles, talking to the owners and doing background checking. So it's quite complicated.

Yes, Jena.

It's been a while. Just wondering, I mean, you have your 100-store target by 2024. I mean, what happens next? Also, do you feel that maybe -- I mean, you're talking about Metro Manila competition increasing? Do you feel that the market is already sort of reaching saturation in terms of home improvement, retail formats?

Yes. We believe that there's still robust expansion if we expand now, I mean we use the population as a basis. So for every 300,000 to 350,000, [indiscernible] one depot, so we're 100-plus million now. So even if you say that we are already 100 stores plus competition, assuming there's about 100 [indiscernible] there, which is -- majority of them are half our size. In terms of gross floor area, they're not as equal as us. So we're still -- we can open still. If we have the capacity or we have the resource, we can still open up to 100 to 150 stores, now as we speak with the population that we have.

Okay. And just on, I guess, what you see for fourth quarter and next year, whether you believe the situation will improve?

Well, we are hoping that the situation will improve but in fact, we are having our big promotion now in line with our anniversary celebration. We have this home goal 2.0 promo we're in. We're giving back our customers to wrap us. So we give in a way like PHP 10.6 million worth of EGCs or electronic GCs to our customers just to be able to entice them and to do more of a traffic in the stores. And hopefully, this period we're in is the Christmas season, and we're expecting a lot of Filipino, we call it [indiscernible] coming back to the Philippines to visit the relatives here. So mainly would still do a lot of soft improvements or soft innovation in order to receive their visitors or the relatives coming from abroad.

We're expecting that the fourth quarter will be like stronger in terms of absolute amounts like sales, I mean, sequentially quarter-on-quarter. But I guess there has to be some sort of a trigger in the macro environment that would like entice people to spend on high ticket items such as home improvement but there has to be something happening like a trigger for -- yes, for home improvement consumption to spark up, right, something like that? But definitely, historically, the last quarter, there's been more spending in October, November, usually the highest months in terms of sales, yes. And in terms of absolute amounts, we're expecting like this last quarter to have the highest, again, sales. But unless there's a really -- there's turnaround in the macro something big happening yes, it won't be enough to flip the whole year's performance.

Sure, of course. Just 1 last question. On the private label/exclusive products, I mean it's already up to what, 50.2% now, and I know it's been higher in the past by a few basis points. Realistically, I mean, are you -- where you're comfortable? And I guess the margin accretion we can see from further increase in this? I mean is -- are we all done with that?

Yes. Actually, for September, we're almost at 52%. So we'll see that if that trend will continue upwards. But yes, the September, I think we're at 51.9% or something like that, we're almost at 52%. So we're kind of breaching the 52% mark again. And yes, so we'll see if we can still do that. It's because the tiles as a contribution to total sales actually dropped to 28%. So that if -- I mean, it's an indication that there's really no private construction -- not much private construction going on right now. If the demand will come back then I would suppose we will like move up -- the contribution of the in-house brands will be on the upward trend again. Just to -- just last one. Jean add to -- Just to add to what Ms. Rose said, we are still set on the 8 to 10 stores per year, after the 100-store target is reached. So that's what we're looking at now. Like we are still not going to accept a general target like 200 or yes, we're not -- because we're not comfortable committing on something that we cannot exceed but we're still looking at that 8 to 10 stores. And then as to like if it's saturated, it's just really actually up to us. The home improvement market is still -- is huge and it's very fragmented, and it's up to us really if we want to like widen our target market in terms of product offering or like segment but we would like to target. It's just that we want to focus where we are good at. And here and there, we're like experimenting before going like full blast into something that we're -- that's new to us. So that's where we are at. But in terms of potential, we feel that this market still has a lot of potential for growth. John?

Actually, 2 questions from me. First 1 being any feedback from your clients or small contractors that explains why they're not spending? Is this like pricing being limited, interest rates or [indiscernible] just there yet in terms of the construction cycle? So feedback would be great.

Well, we've been getting feedback from our regular contractor customers. In fact, we have a database. So we're constantly communicating with them. Well, some of them would say that they're still waiting for the right timing when to start the project because they're still inflation, some of them cannot, I would say, adjust the contract that is secured to their clients. So they're still waiting for the sign for the prices to settle. And some would say that it's still on the drawing board and then there's still -- of course, their clients are still anticipating that things will improve. So it's really more on the macro. I think the perception is that they're still waiting for the stability. Just like what Jean said, if there's something that would trigger like government spending, all of these things, if macro will improve. In fact, BSP even downgraded their projection for the year. So yes, we're hoping that things would do better. And as we speak now, there's a lot of challenges that we're facing. We're here and there.

Plus the weather, it's always raining as well.

Yes. It's always -- as we speak now, it's raining where we are now.

Which is actually the cost of the delays of our plan. 14 -- we were planning for 14 this year actually. And then -- yes, I guess we still could exceed 10 but we just don't want to cram because it's also full of holidays from here on like starting tomorrow until December.

Until November, yes.

Until the Christmas holiday, so we just -- we're content to like just finish what we could in the most cost-effective way.

Maybe a second follow-up on competition. Can you just elaborate a little bit more where this is coming from? Are this -- are these are traditional hardware stores emerging from the pandemic, or are these your other competitors, which have 50 to 100 stores each, would be great?

Actually, when the market is down, you would feel competition. But when the market is up, you don't feel them. So well, for competition, they're always there. Like I've mentioned about the marketplaces you can easily buy the small hardware items online at a very low price. But of course, some people would compromise quality over price. So we still stick to the target market where we are comfortable at where they're really looking for quality products. So that's our [ UPS ]. But again, because the softness of the market, there's a tendency first time to really cut prices. But eventually, the customer will always go back to us because they use those strategies as just to lower customers, but eventually, they can't serve them, as I mentioned, these projects, some of them -- I mean, institutional accounts. Some of them we were able to serve to, I guess, I mentioned earlier, not sales. Initially, they're not -- we looking for the brands that we carry but because we have available stock and we were reliable also, it's really a function of not enough opportunity for everyone. So -- but of course, we're still very confident with the kind of, I would say, service, products that we have, I think we still have an edge over competition.

Yes, I think based on like common suppliers that we have with our competitors. So our suppliers were telling us that we are still better than -- where we better off than our competitors.

In fact, they're relying on us for their -- most of them, they're really banking on Wilcon for it, then to be able to reach their whatever targets. So I think that the others are really -- those competition, I mentioned, those unfair competition happening now because of the cross-border. And I'm sure China, they would really down their products here because they're in inflationary period, right?

Actually, no, that's really, really good insight.

Any more?

Yes. I think the OpEx is really -- it's about the logistics cost, right? It has increased -- that's why, there's a question if I can bring him in.

Yes, we'll call on Permada.

Mada from UBS here. You mentioned about basically China, I'm thinking there are goods into the Philippines. Do you think the government might do something about that? And where are the -- what's the channel of transmission when you say that? Is it mainly like the marketplace like Shopee and Lazada and so forth are increasingly like Temu is also in the Philippines these days. So can you elaborate what marketplace is precisely?

Yes, those you mentioned and those selling in Facebook, those selling is social media. In fact, the internet transactions are still pending now with the Senate. It has already been approved by Congress. So in fact, we're one of the technical working group there, organization. We're really pushing for the ratification of the IPA. However, I don't know what's happening. It's not the priority of the governance now. But if you look at the other ASEAN countries like, for example, Indonesia, you've heard that Indonesia already banned selling in social media, they banned selling of goods in Facebook, even in TikTok. So we just hope -- we're hoping that the Philippines will do the same action. Because it's not equal level playing, they're not paying taxes. We're all paying assets here. I mean the brick-and-mortar stores. We're paying WHT, we are VAT, we're paying taxes and even the municipal taxes and occupational, all of these things. So it's not -- I mean, hopefully, the government would look into these and we are really pushing for it.

Thanks so much for the clarification. What are you pushing for a ban or taxes, import duty? Can you elaborate?

We're pushing for the -- yes. Taxes, that's that they will be taxed similar to the brick-and-mortar.

Any more questions.

Yes. Maybe just to follow up on my earlier question. Have you done any studies -- internal studies in terms of what's the average price gap between your SKUs and what's available in the marketplaces currently?

On what category?

Well, just across SKUs, do you have a range or do you know the average price gap kind of thing? You lot of SKUs.

For national brands, I think we follow SRP. I mean, it would be -- it should be the same across. So let's say, this distributor or this national brands, they would set an SRP or suggested retail pricing. But for our own private label brands, definitely, we priced it on market price in terms like...

I think the question of Permada is like what's the difference between our prices and the marketplace?

So marketplace, definitely, it's not apple-to-apple because what they're selling is for one, more inferior product. Ours is [indiscernible] hardware items. Those -- they're selling disposable hardware while we're selling branded ones that you can reuse those. So we're targeting the DIYs, probably they're targeting contractors for onetime use. So it's not apple-to-apple. There might be 10% to 15% price difference, which is quite significant. But for, let's say, similar brick-and-mortar store, if it's a national brand, definitely, there's -- we have the same price unless they cut price or they have promotions. But what we've noticed in the market is that sometimes they would announce promotions and they will give big discounts. But eventually, the costumer would realize that they don't have the stuff. So it's just a marketing gimmick. So that's what's happening in the market, maybe because the market is really down. So they're doing a lot of strategic moves.

I think also for the marketplaces, as Rose mentioned, they're very low quality. So the price is really different. And ours, let's say -- ours would cost maybe PHP 1,000 but then it's heavier, it's more durable, it lasts longer. And then the ones that you see on Shopee, Lazada, it will be like a couple of hundred, a few hundred but the picture is really nice. So that's not going to last very long, and our going to last long because that's our value proposition when you buy our products. So that's kind of the way it's working out now for products that you can easily just buy and you -- that's not really something that you need like a lot of. So like example, I search, I go online, I also take a look at these products. And a lot of them are really not very good quality. So that's really the way the marketplace is. And I think maybe customers are not so aware, right? And they'll see the pictures are really nice, and then they buy it and [indiscernible]. So it's very thin. They'll say it's stainless steel, like there's -- I think there's 201 and 304. And then let's say it's 201 and 304, and then let's it's 304 but then when it arrives, it's actually 304, right? So ours is actually 304. If you says it 304, it's actually stainless steel. And then the product you order arrives and it rusts. So that's really the kind of a wild west type of situation for -- especially for hardware, like faucets, hardware, things like this, So that's just kind of the landscape.

But kind of like this, of course, sometimes...

It's kind of like this, sometimes, I don't mind but it's rust.

So you would sacrifice quality.

And do you sense that because at the beginning of the year, like some of the marketplaces like Shopee, they would cut incentives to focus more on profitability. But obviously, now in the Philippines, Temu is there too, probably TikTok as well, do you sense that they're still subsidizing basically the offerings a lot? Or has that gone down?

They subsidize the shipping to reduce the friction of clicking order, could you can buy, earn $1, $2 of item and they'll ship it to you for free. So that's the subsidy that they're doing. I don't know how long they're going to do it because it's a cost. So that's -- they're burning -- I don't know, they're burning money, I think subsidizing that.

Any more questions. Yes, Renier.

Can you give more color whether the weakness has been both for the hard and soft categories? Or it's more from both?

In our case, because we're not really strong on the soft category. So we -- in our case, we experienced both because our soft categories are competitor. So our foot traffic or our customers would go to us primarily for the hard categories and then they see this. So if they're not going to us in the first place, we're a destination, right? Then definitely are the soft categories will be affected as well but for others, I guess the malls, if foot traffic is up because like this is going to be the first year where like we have 0 COVID incidents then probably, I don't know. But in our case, that's what's happening. Because, again, our come on is our hard categories. So definitely, our competitor items will be affected as well.

And on the private labels, can you share more on the strategy moving forward? And I guess -- in terms of how much, I guess, the number of brands, how much has the -- how much have private labels grown, I guess, in relation to since, I guess, 2019 up 2%? And what's plan moving forward?

2019, in terms of contribution from 2019, I think just it's the profitability of these products that has really surged from the 2019 levels because of a lot of factors that we've discussed before during the supply chain prices, et cetera. Yes. So what were -- because in -- for the hard categories, right, for the core products, we are already -- we have -- the greater majority would be our in-house and exclusive brands. Then -- so we are focusing expansion in categories where we don't have much offerings. And that's in building materials, in appliances. Yes, those 2 categories are a mean focus now. Where we're slowly improving in electrical and lighting, our own brand has gotten like better market share. So we're now really focusing on -- we would like with, I think, 20-plus percent only contribution of our in-house brands in building materials. Hardware, we are not likely to focus on it. So we are also less than 50% in -- contribution in hardware but we'll just maintain it at that. It's -- really the building materials, it's such a wide category.

The reason why building materials expanded. I mean, we increase more than the average increase, right? Because we have expanded the building materials. So we've added new products and we've other lines also. So I think based on the report, it was building materials and paints that have increased. So there's still soft renovation if you consider paint as a soft item and then the building materials because of the expansion that we did. Of course, I mean, hardware is down. I've mentioned about marketplace, competing with the hardware marketplaces.

I see. But I guess, in the next year or so, are you planning to just focus on the current lineup of brands? Or are you looking to expand the reach or the other categories in terms of the private labels?

We're looking to expand the products in the brand. So the brands more or less, those are the brands that we carry, maybe -- we might add maybe 1 or 2 more. But generally, the brands that we carry, we will just be adding lines. So in relation to the question in the chart, regarding the inferior products. So like my earlier example was the 304, and we are actually looking to getting -- or we have actually started ordering the lower-grade ones, 201 to serve markets where it's a little bit more sensitive, especially for stainless steel sinks, for example. But we would not label it as 304. We would be straightforward and labeling as the lower quality one 20, and work on of course, the pricing to reach that market. And then that's how we're going to look to expanding more, especially for the markets that are -- they don't really care very much for the brand, they are more price sensitive. So that's 1 of the things that we're working across a few categories. So we're piloting some SKUs and rolling it out. And as the market responds to it, then we'll just continue to add to that.

Any more questions? if there's none, we'd like to thank everyone for joining us this afternoon, and hope to see you again in our next earnings call. Thank you.

Thank you.

Thank you.