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spk00: Good day and welcome to the MGP Ingredients First Quarter 2022 Financial Results Conference Call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on a touch-tone phone. To withdraw your question, please press star, then two. Please note, this event is being recorded. I would now like to turn the conference over to Mike Houston, Investor Relations. Please go ahead.
spk01: Thank you. I'm Mike Houston with Lamberton Company, MGP's Investor Relations firm. And joining me today are members of their management team, including Dave Colo, President and Chief Executive Officer, and Brandon Gall, Vice President of Finance and Chief Financial Officer. We will begin the call with management's prepared remarks and then open up the call to questions. However, before we begin today's call, it is my responsibility to inform you that this call may involve certain forward-looking statements, such as projections of sales, operating income, gross margin, and effective tax rate, as well as statements on the plans and objectives of the company's business. The company's actual results could differ materially from any forward-looking statements made today due to a number of factors. including the risk factors described in the company's most recent annual and quarterly reports filed with the Securities and Exchange Commission. The company assumes no obligation to update any forward-looking statements made during the call. If anyone does not already have a copy of the press release issued by MGP today, you can access it at the company's website, www.mgpingredients.com. At this time, I would like to turn the call over to MGP's President and Chief Executive Officer, Dave Colo. Dave?
spk06: Thank you, Mike, and thanks, everyone, for joining the call today. On this call, we will begin with an overview of our performance for the quarter ended March 31st, 2022, provide updates on key financial performance metrics, and discuss the progress we have made against our strategy. At the end of the call, we will open the line for Q&A. We are off to another strong start to the year with record results for each of our three business segments. We are very pleased with our continued momentum this quarter and believe the underlying macro consumer trends that are supporting each of our business segments remain strong. Consolidated sales for the year increased 80.2% while gross profit increased 122% to a record $71.8 million representing 36.8% of consolidated sales. Reported operating income increased 144%, while adjusted operating income increased 124%. We are very pleased with the sustained momentum across each of our segments this quarter. The demand for aged whiskey and new distillate continues to be a growth driver, with a 44.4% increase in brown goods sales for the quarter within our distilling solution segment, which was previously known as our distillery product segment. We recently changed the name of this reporting segment to better reflect the products and services we provide to our customers. Our premium, super premium, and ultra premium offerings contributed to the encouraging results for the branded spirits segment. Continued growth in our higher-priced American whiskey brands were key contributors to our strong gross profit results for the quarter, which represented 44.5% of segment sales. Ingredient solution segment sales also benefited from strong demand and improved product mix, yielding record gross profits representing 29% of segment sales. Looking at each segment in greater detail, we achieved another record quarter in our distilling solution segment, with sales ending the quarter up 25.8% to $111.5 million. Gross profit for the quarter improved to $38.9 million, or 34.9% of segment sales. Sales of premium beverage alcohol increased 37.7%, while brown goods sales grew 44.4% from last year due to higher aged whiskey and new distillate sales. Aged whiskey sales also served as the primary driver to the increase in gross margins in the period. Our growth in sales of brown goods this quarter again outpaced the longer-term market trends. This was attributed to the sustained strong demand in each of our customer categories, as well as our team's ability to capture unfilled demand. We expect strong pricing trends to persist. Our inventory of aging whiskey has offered MGP a sustained position of strength, and we believe this will continue throughout 2022. Sales of new distillate also posted strong growth for the quarter as we experienced an increase in demand compared to the prior year period. While consumer demand for American whiskey remains robust, and our diverse customer mix positions as well, we remain uncertain as to when the growth rates will begin to normalize and align more with the long-term trend for the overall category. We believe our significant share and scale advantage will position us well as this increased period of demand continues. Moving to white goods, sales posted another solid quarter with growth of 20.6%, primarily due to improved pricing and volume. The growth partially reflected volume shifts away from industrial alcohol and towards our white goods premium beverage products. As a result, sales for our industrial alcohol products decreased 33.7% this quarter. The decline was also partially attributed to reduced third-party sales of industrial alcohol produced by ICP, our former joint venture partner. As previously discussed, we anticipate margins for both industrial alcohol and white goods products to continue at these lower historical levels, which are in the low single digits, as the demand for industrial alcohol continues to moderate and due to the additional supply that has entered the market. This anticipated continued decline in the profitability of white goods and industrial alcohol is factored into the fiscal year 2022 guidance. Revenue from warehouse services increased 36.2% this quarter, as compared to the first quarter 2021. This growth can be attributed in part to the growth in the number of customer barrels aging in our whiskey warehouses and other services we provide. Turning to branded spirits, sales totaled $55.8 million for the quarter, primarily due to sales of brands acquired as part of the Luxco acquisition. We also benefited from continued strength in our premium, super premium, and ultra premium brands, reflecting higher case volume of these higher margin products, as well as increased points of distribution for the legacy MGP brands. Gross profit for the segment increased to a record $24.8 million, or 44.5% of segment sales for the quarter. Strengthening consumer demand for our brands, especially our premium, super premium, and ultra premium offerings, continues to be a major catalyst for growth. We are encouraged by the growth we're experiencing as we continue to successfully execute our premiumization strategy. Increased distribution and improved pricing on select brands, as well as product mix, contributed to the record results this quarter. We believe consumer demand for our expansive family of brands will continue to position us well for incremental growth. Turning to ingredient solutions, Sales for the quarter increased 46.2%, while gross profit increased to $8.1 million, or 29% of segment sales, each of which represents record results for the segment. As a reminder, we experienced some temporary softness in our ingredient solution segment in the first quarter of 2021, primarily due to a natural gas curtailment that impacted approximately two weeks of production last year, which reduced gross margin by approximately 400 basis points. The increase in sales was primarily driven by increased volumes and higher average selling prices of specialty wheat starches and proteins, as well as commodity wheat starches. Our experienced sales, innovation, and R&D teams worked effectively and collaboratively to meet our customers' needs as we achieved another quarter of record results. Before I turn the call over to Brandon, I want to reiterate my excitement for the continued momentum we experienced this quarter across each of our business segments. Our product offerings remain aligned with strong consumer trends as evidenced by our ability to effectively recruit new business and grow with existing customers. This concludes my initial remarks. Let me now turn things over to Brandon Gall for a review of the key metrics and numbers. Brandon?
spk04: Thanks, Dave. For the first quarter of 2022, consolidated sales increased 80.2% to $195.2 million as a result of strong growth in each of the reporting segments. Gross profit increased 122% to $71.8 million due to record performance by all three segments. Gross margin increased by 700 basis points, 36.8%. Corporate selling, general, and administrative expenses for the quarter, inclusive of advertising and promotion expenses, increased $10 million to $21.8 million as compared to the first quarter, 2021, primarily driven by the assumption of Luxco's SG&A expenses. Operating income for the first quarter increased 144% to $50.1 million, primarily due to the increase in sales and gross profits previously discussed. Adjusted operating income increased 124% to $50.1 million. Our corporate effective tax rate for the first quarter of 2022 was 23% and remained unchanged from the year-ago period. Net income for the first quarter increased 142% to $37.4 million. Basic and diluted earnings per share increased to $1.69 per share. from $0.90 per share, while adjusted EPS increased to $1.69 per share from $1.01 per share. Adjusted EBITDA for the quarter was $55.4 million, a 115% increase from the year-ago period, driven by the solid performance of all three business segments. Corn, wheat, flour, and natural gas are three of our largest commodity expenses, and each has seen upward prices over the last several quarters. As we shared in February, we entered the 2022 fiscal year with the majority of commodities purchased against contracted volumes. We employ an extensive risk management program that includes purchasing the corresponding grain at the same time we contract volume and pricing for our products. Our objective, as always, is to price through as much commodity input inflation as possible. However, For various reasons, we do not contract 100% of our sales. For example, there are certain customers for our white goods and industrial alcohol products that choose not to contract in advance. Additionally, customers for our fuel-grade alcohol, distillers feed, and related co-products also purchase in the spot market. As a result, we cannot provide assurance that we will always be able to price through increases in commodity costs to our customers in the open market. That said, we remain committed to pricing through these increases where possible, and our full-year consulting guidance contemplates these inflationary headwinds. Additionally, supply chain disruptions have had a minimal impact on our operations over the past several quarters, but this is another area we continue to monitor to mitigate potential impacts. As we've previously stated, our strategy has been to migrate away from industrial alcohol and toward our white goods premium beverage products, whose customers historically are longer-term in nature and pricing less susceptible to wide swings. Consistent with those efforts, white goods sales for the first quarter increased by 20.6% to $20.1 million, while industrial alcohol decreased by 33.7% to $11.5 million. Cash flow from operations was $22.2 million in the first quarter, which was up from approximately $17 million in the first quarter of 2021, reflecting the strong cash generating capability of our business and the significant contribution of the Luxco acquisition. Drawing free cash flows for the quarter further highlight the value and execution of our long-term strategy, providing MGP with adequate support for our expansionary projects. MGP's balance sheet also remains strong, allowing us to continue to invest to grow, we remain well capitalized with debt totaling $232.7 million in a strong cash position of $27.3 million. Our investment in inventory of aging whiskey increased by $6 million at cost as compared to the fourth quarter of 2021. This net increase was driven by increased put away during the quarter. Matching whiskey put away with growing future distilling solutions and branded spirits segment sales is one of our priorities and long-term strategies. We also remain committed to continuing our investment in our operational capabilities. We expect approximately $47.2 million in capital expenditures during 2022, which represents an approximate $10 million increase above the forecast we provided during last quarter's earnings call. We've identified opportunities to accelerate projects, such as the construction of the textured protein facility in Atchison, Kansas, as well as new opportunities that will strengthen our competitive position in the markets we serve. We believe these new and accelerated projects all share attractive payback periods and returns on investment, which should enhance shareholder value over the long term. Dave will speak to these more in a moment. The Board authorized a quarterly dividend in the amount of $0.12 per share, which is payable on June 3rd to stockholders of record as of May 20th. The Board continues to view dividends as an important way to share the success of the company with shareholders. We believe a capital allocation strategy focused on organic and acquisitive growth aligns well with our long-term strategy, as well as the underlying consumer trends our business is well positioned to leverage. We will continue to pursue M&A and conduct expansionary projects to accelerate growth and increase our capabilities and product offerings. And now, let me turn things back over to Dave for concluding remarks.
spk06: Thanks, Brandon. This quarter marked another milestone for record results across each of our business segments, as well as a strong foundation for future growth. A critical element to building on that foundation for growth is our recently announced three expansionary projects. As a reminder, the first is an expansion of our Luxro Distillers facility in Bardstown, Kentucky, which will allow the distillery to operate 24 hours per day and increase capacity by 75%. Second is the construction of a new barrel warehouse facility in Williamstown, Kentucky. And third is our texturized protein extrusion facility in Atchison, Kansas. We have also received board approval on two new projects that are in support of the continued demand we're experiencing for our brands and our customers' brands, which will include an additional warehouse in Kentucky and further expansion at our Luxro distillery in Bardstown. With the increased demand we have been experiencing for our new distillate, aged whiskey, and ultra-premium spirits brands, as well as texturized protein products, these investments position us well for continued, sustainable growth across the organization. As Brandon mentioned, our inventory of aging whiskey increased $6 million from the fourth quarter to $180.1 million at the end of the first quarter. We remain supportive of our library of various smash bills and vintages and expect they will continue to meaningfully contribute to increased levels of gross profit and cash flow for the company moving forward. While we anticipate volatility in the broader economy to persist in the near term, we remain confident in our team's capabilities and strong market position as well as the value each of our segments bring to our global customer base. We believe the underlying macro consumer trends that are supporting each of our business segments remain strong, and we expect these trends to continue through fiscal 2022. We will maintain a high level of operational execution and will be deliberate in all actions we take as we navigate the market dynamics this year. We are confirming our full year fiscal 2022 guidance. We expect sales to be in the range of $690 million to $715 million, which would equate to a percentage growth rate range of approximately 10 to 14% from the prior year period. Adjusted EBITDA is expected to be in the range of $150 million to $157 million, which would equate to a percentage growth rate range of approximately 6% to 11% from the prior year period. We are forecasting basic adjusted earnings per share to be in the $4.15 to $4.35 range, with basic weighted average shares outstanding expected to be approximately $22 million at year end. As we progress our ESG initiative, we recently disclosed our environmental and sustainability policy statement and Q1 2022 waste disclosure report on our company website under our social responsibility section of the site. We remain on track to disclose the company's greenhouse gas emission information during this year and the environmental sustainability report for calendar year 2022 in Q1 of 2023. We are also working with a third party to complete a holistic assessment of the company's ESG program to ensure we have an effective and optimized approach to our ESG journey going forward. We are committed to refining the effectiveness of our tactical execution and will continue to leverage the strong foundation we have established over the years with the objective to deliver sustainable long-term value for our shareholders. That concludes our prepared remarks. Operator, we are ready to begin the question and answer portion of the call.
spk00: We will now begin the question and answer session. To ask a question, you may press star, then 1 on your touchtone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star, then two. At this time, we will pause momentarily to assemble our roster. The first question comes from Mitch Pinheiro with Sturdivant. Please go ahead.
spk05: Hey. Good morning. Hi, Mitch.
spk04: Hi, Mitch.
spk05: I don't know if you mentioned this, but you did talk about new distillate sales being strong in the quarter. How did that balance out with age? Was it roughly the same growth rates, or did one grow faster than another?
spk04: Yeah, great question, Mitch, and thanks for that. We actually saw well into double-digit growth for both new distillate and our age sales in the quarter. Um, while age is definitely still, uh, expanding as we've seen in previous quarters, um, new distillate has definitely, um, you know, joined the race as well with its performance in Q1.
spk05: Um, I mean, and, and how much, I mean, how much visibility, uh, did you have into the quarter? Like, was there a surprise, were you surprised with new distillate sales at all? Or, um, I mean, I know you don't get a hundred percent visibility with customers, but, uh, Can you talk about, like, what might have changed and added to the strength?
spk04: Yeah, it's really, we're seeing it from top to bottom, from all of our customer classes, whether it's crafts to regional to national to multinational. There's really just, you know, we've talked about just the general tightness we're seeing for age, but we're now starting to see that even more so for new distillate capacity as well. And as a lot of our customers have more and more success and get better capitalized, you know, they're able to put down more earlier than maybe they were in prior years.
spk05: Okay. As, you know, relative to guidance for the next three quarters and as it relates to brown goods, I mean, how should we think about this? Are we going to obviously, you know, these growth rates can't continue or you'll eventually run out of product to sell. So, um, we're, should we be thinking about this in a, in sort of like a, again, like a balanced type of growth between aged and new distillate in the remaining quarters?
spk04: Yeah. Um, you're right. Uh, for the quarter, new distillate and age, uh, sales combined, we're up north of 44%. Um, that, that's not anything that, um, uh, we would suggest, um, you or anyone else models out ongoingly, right? So what we've consistently said is over the long term, we're going to fall more in line with the overall growth of the category. And as we look at the remainder of the year, we do not anticipate the same level of growth in subsequent quarters for our brown goods for that reason. So that's how we're thinking about it. There's just a lot of growth coming into the – or a lot of demand coming into the year. And a lot of customers of ours that, you know, were in need of aged barrels and new distillate for their businesses.
spk05: Okay. And just one more question. I'll get back in the queue. On the ingredient solutions business, number one, how much of the growth or what was the dollar amount affected last year due to, you know, your shutdown? And then second – you know, the gross margin was terrific at 29%. I don't think I've seen it that high. It was close, I guess, last year at a point. Is that the right margin to think about going forward this year?
spk04: Yeah. So, yeah, to answer the first part of your question, Mitch, it was about a 400 basis point impact just on the natural gas curtailment during Q1 of last year. There may have been some other minor issues that happened, too, to further dampen it But the gross margin percent in Q1 of last year was 20.7%, whereas this year, obviously, we printed a 29% gross margin percent. We've been pretty consistent. We think that mid to upper 20s is what this business is capable of doing. We saw it in Q2 and Q3 of last year, and we saw it in a number of quarters in the year before that. So as we look forward, we continue to see that capability and that potential in this business just due to the way the business has mixed up to more specialty products and expanded margins over time.
spk05: Okay. Well, thanks for your time. I'll get back in the queue.
spk00: The next question comes from Bill Chappell with True Securities. Please go ahead. Phil, your line is open. You may ask your question.
spk03: Thanks. Good morning. Hey, with regards to the outlook, clearly your first quarter results were well ahead of at least the street expectations, and it appears they were maybe ahead of your initial expectations. Has there been any major offset for the remainder of the year that you're seeing? Anything that's popped up? I mean, you've said you're fairly well hedged on grain and I think your kind of outlook for white goods and industrial was already baked into your initial guidance, unless I'm wrong. So is there anything else we're missing that has cropped up as we look for the next few quarters?
spk04: Yeah, thanks, Bill. Yeah, it was a very strong quarter, as you can clearly see. But as we've always maintained, ours is a four-quarter business, and we don't want to get in the habit of being overreactive to any certain quarter, especially the first quarter of a year. That being said, there are three things we're really thinking about as we look at the remainder of the year. First of all, on the commercial front, and we've already talked about this with Mitch, we don't expect a repeat in brown goods sales performance of 44% in subsequent quarters. Secondly, we experienced in Q1 very strong pipeline shipments for our super premium and ultra premium American whiskey brands. While this is something we're going to continue to assess, we don't anticipate this recurring at that clip throughout the remainder of the year. We're gonna see how depletions come through in Qs two through four and see how distributors look to refill their pipeline. So those are the two items we're watching on the commercial front. On the inflation front, there are real headwinds in commodities. And so despite inflation in Q1 that we've seen, spot pricing for the most part has kept up within our expectations. But there are parts of our business that we call it out. So, for example, there's certain customers for white goods and industrial that do not contract. So they will be purchasing in the spot market. And then we also called out, Bill, that fuel and distillers, grain, and related co-products, which represented a little over $12 million in sales in Q1 alone, that's all done on the spot market. So what we're watching as we go finish out the remainder of the year, are those prices in the spot market maintain the level needed as it relates to the underlying commodity input prices?
spk03: Okay. I understand. In terms of kind of looking at the brown spirits, both new and aged, Dave, can you kind of explain the custom behavior that's driving this demand? I mean, I assume it's understood that there's kind of a global and U.S. shortage of brown goods. And so I didn't know, is that increasing the customers that are looking at your age inventory? Or is it just the existing customers are more willing to load up early on? And then for the new, do you have customers that say, we're going to be short for a long period of time, let's go and and accelerate our new purchases right now because we don't want to be short four years from now. I mean, explain to us kind of the behavior that's driving it now that we are kind of a net short environment.
spk06: Yeah, Bill, I think everything you just said is kind of playing out. So we continue to see very strong demand on aged from what I would say are our existing customers historically as well as some new customers coming into the market. And we – You know, we've said on the last couple calls that we think aged inventory in particular is extremely tight at this point in time. So that dynamic is playing out. On the new distillate side, again, we're seeing very strong demand, as Brandon mentioned, and, again, with existing customers but also new customers wanting new distillate to lay down. And what we're doing as a result, right, is on our new distillate business historically, A fairly significant portion of that has been contracted. We're encouraging customers to contract even more of our new distillate capacity going forward to protect their brands. And then we're also, on the aged side of the business, encouraging customers to contract aged whiskey as well, which, as you well know, historically that's been a very difficult feat to accomplish. But we are seeing more receptivity from customers to contract H. Brown as well. It's not a significant portion of our business yet, but it appears to be growing as we're in this current environment.
spk03: Got it. And then two more, just on the kind of consumer takeaway of Brown in general, I mean, is the sense that, you know, there's not going to be any fallback post-pandemic, that Brown kind of took maybe a leap in in share of overall spirits over the past two years, and that's kind of going to stay at this level, and that's why you're seeing so much new and aged demand?
spk06: Yeah, I think that's a big part of it. I mean, if you look at the share data, you know, the premium plus brands, if you will, the higher priced American whiskey brands are driving all of the growth, and a big part of our customer base, you know, participates in the premium plus categories with their specific brands. And we're seeing the same thing in our branded spirits portfolio. We're seeing the growth, and you saw the gross margin performance in branded spirits for the quarter. That as well was primarily driven by, you know, excellent sales of our premium plus American whiskey brands.
spk03: And the last one for me, just on the Luxco, I might have missed it if you said it. The pro forma growth for the quarter year-over-year of the branded portfolio, and then were there any, you know, was it all steady? Was it brown did really well and white? Any more color just kind of on that performance because it is 100-plus brands? Thanks.
spk04: Yeah, we did disclose pro forma performance bill on the business, but without having it even at my fingertips at this moment, but, But it was definitely a very strong quarter for Branded Spirits. Gross margins in the north of 44% for the quarter after being in the mid to upper 30s in the three quarters last year. So we're really seeing a strong pull for our super premium and ultra premium American whiskey brands. And that showed in the margin profile that we saw in the quarter.
spk03: Got it. Okay, great. Thanks so much. Thanks, Bill.
spk04: Thanks, Bill.
spk00: The next question comes from Ben Cleave with Lake Street Capital Markets. Please go ahead.
spk02: All right. Thanks for taking my questions, and congratulations on a really great quarter. A few questions for me. First of all, on the performance during the quarter, I'm wondering if you can talk about kind of cadence throughout the quarter. Did a lot of that really excessive growth or excess growth You know, was that kind of seen on a flat line basis throughout the quarter or did you maybe see growth spike at the start of the year and then begin to tail off towards the end of the quarter heading into Q2?
spk06: Yeah, I think if you look at each business, I mean, I'll start with ingredients. Our ingredients business was very consistent throughout the quarter. We continue to see excellent demand, Ben, in that business. And it was pretty darn consistent each month in the quarter. And we expect, you know, to see that same kind of performance for the balance of the year and ingredients. In our brown distillery products business, you know, our white goods are pretty consistent month to month, and brown goods is where we can see some deviation month to month. I'd say new distillate is pretty consistent month to month, and then we can see peaks and valleys in brown goods. So that's how I would describe it. the quarter for distilling solutions. And then in brands, you know, it's typically a pretty consistent revenue pattern month to month, although as Brandon said, in Q1 we had some really strong shipments in a couple of our American whiskey brands that I would view potentially as kind of refilling the pipeline that drove some pretty strong demand. But even in that business overall, the revenue is fairly consistent month to month and quarter to quarter.
spk02: Got it. Got it. That's helpful. Thank you. And I don't recall if you touched on this explicitly or just implicitly around kind of refilling the pipeline and the driver of that around exports specifically. And so my question is, you know, to what degree do you think the EU tariff lifting on December 31st, you know, really provided a tailwind in the quarter? And if it did provide a tailwind in the quarter, was that seen kind of uniformly across both the branded spirit and the distillery segment, or did one segment see that more materially than the other?
spk06: Yeah, the tariff – Lifting of the tariffs had an immaterial impact on us. We don't have a large part of our revenue that ships internationally, whether it's in our distilling solution segment or branded spirits. Now, we think there's good upside long term, but the reduction in tariffs or the suspension of the tariffs really had a minimal impact in the quarter.
spk02: Okay. I guess a quick follow-up question to that. Within the distillery segment specifically, would you have visibility of shipping product in that group to domestic customers and know that that was going to end up in international markets, or is that something that you guys just don't really have visibility of?
spk06: Yeah, I mean, we don't have clear visibility to that, but, you know, we – The assumption is that if we're shipping product to a branded customer in the U.S. and then they're exporting that brand internationally, then obviously some of that liquid is ending up in international markets, but we don't know which percent of their brand is going internationally versus staying domestic.
spk04: Yeah, and just to add to that, we have been developing our international reach on distilling solutions, so that's going to include developing a customer base that's based, you know, as an example, Western Europe or parts of Asia. So we have greater visibility there. But as far as what brand it's specifically going into at this point, yeah, that's something we just don't have access to.
spk02: Okay. All right. Fair enough. And last one for me, and I'll get back in queue. On the ingredient side, I feel kind of like a broken record here, but, you know, the growth rate has just been exceptional in this quarter. And I'm curious if you can provide any, you know, any context around if, if, if, you know, there's excess growth seen from, you know, any, any new customers, you know, any new categories or expanded, you know, broad product categories. Or again, was that just growth really seen kind of uniformly?
spk06: Yeah, the latter pretty much uniform growth with primarily existing customers then. So again, the, As we talked about in the past, the product lines that we have in this business, they're plant-based, high-protein, high-quality starches, excellent fibers. They're in strong demand, and our customers' products that we're selling into continue to grow nicely. So that's what you're seeing as the primary drivers in the increased revenue in this business.
spk02: Got it. Well, congratulations on just the really excellent quarter across all three groups. Thanks for taking my questions, and I'll get back into you.
spk06: Thanks, Ben. Thanks, Ben.
spk00: This concludes our question and answer session. I would like to turn the conference back over to Dave Colo, President and Chief Executive Officer.
spk06: Thank you for your interest in our company and for joining us today for our first quarter earnings call. We look forward to talking with you again after the second quarter.
spk00: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.
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