Thank you for standing by. Welcome to the Darden Restaurants conference call. At this time, all participants are in a listen-only mode until the question-and-answer session. To ask a question, you may press star one on your touchtone phone. Please note, today's conference is being recorded. If you have any objections, please disconnect at this time. I will now turn the call over to Ms. Courtney. Thank you. You may begin.
Thank you, Daryl. Good morning, everyone, and thank you for participating on today's call. With me today are Rick Cardenas, Darden's President and CEO, and Raj Vennam, CFO. Yesterday, we announced that Darden Restaurants has entered into an agreement to acquire Chuy's for $37.50 per share. This morning, Rick will share with you why we are confident this deal will strengthen Darden and the Chuy's brand, and Raj will provide transaction terms and high-level financials. Following our prepared remarks and presentation, we will open the call for a brief question-and-answer session, where we will only take questions related to this transaction. As a reminder, we plan to release first quarter results on Thursday, September 19, before the market opens, with a conference call to follow.
During the course of this call and presentation, comments made will include forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. These statements are subject to risks and uncertainties that could cause actual results to differ materially from our expectations and projections. Those risks are described in our press release, which was distributed yesterday, and in Darden's filings with the Securities and Exchange Commission. We are simultaneously broadcasting a presentation during this call, which is posted on the Investor Relations section of our website at darden.com. Today's discussion and presentation includes certain non-GAAP measures, and a reconciliation of those measures is included in the presentation. Now, I will turn the call over to Rick.
Thank you, Courtney. Good morning, everyone. We appreciate you joining us today as we share the exciting news about the addition of Chuy's to the Darden portfolio. Whenever we consider adding a brand to our portfolio, we have a set of criteria we evaluate. The brand should be a full-service dining concept with strong guest appeal, have the ability to exceed the sales growth in our long-term framework, and make an impact to our financial performance over time. Chuy's checks all these boxes. Founded in 1982 in Austin, Texas, Chuy's is a full-service casual dining restaurant and a leader in the Mexican dining category. It is a differentiated brand serving a distinct menu of authentic Tex-Mex inspired dishes in a fun, eclectic atmosphere. Their commitment to high quality and made-from-scratch food and beverage, offered at a compelling price, fuels high guest loyalty.
With attractive unit economics and a strong business model, there is ample runway for new restaurant growth. And finally, it is large enough to make a meaningful impact to Darden's performance over time. However, to be an excellent fit for Darden, a brand must also strengthen our winning strategy, which is grounded in our four competitive advantages, our Back-to-Basics operating philosophy, and our portfolio of iconic brands. This strategy has served us well for many years and helps us continually strengthen our portfolio. Our competitive advantages give our brands an edge. Leveraging our scale creates cost advantages, which allows us to drive value for our guests, such as our ability to price below inflation over the long term and invest in our team members. Our extensive data provides insights to help our brands better understand their guests and effectively communicate with them.
Additionally, each of our brands regularly go through a strategic planning process to ensure they are focused on the right work. Finally, we have a results-oriented culture to create teams that have a passion to nourish and delight everyone we serve, earning the loyalty of our team members and our guests. We have proven that as brands join our organization, we can strengthen their business while increasing the power of the Darden platform. Just as our competitive advantages will benefit them, Chuy's will further amplify these advantages, which is critical to our success. Our back-to-basics operating philosophy is the driving force behind the way our brand teams run their restaurants. This simple, yet powerful philosophy demands that we remain incredibly focused on executing on the fundamentals of serving exceptional food with attentive service in an engaging atmosphere.
These priorities are supported by relevant marketing programs that resonate with our guests. Darden and Chuy's share a similar operating philosophy focused on the guest experience, as well as the same passion for a strong team member culture, which will help create an easy transition. Finally, Chuy's complements our existing portfolio by allowing us to access the popular Mexican dining category, which we do not compete in today. The Mexican category is one of the fastest-growing dining categories, and Chuy's is the largest full-service operator with strong unit economics. Today, Chuy's has 101 restaurants, all of which are company-owned, in 15 states, with ample opportunity for continued growth, both in new and existing markets. For all these reasons, Chuy's is an excellent fit in the Darden portfolio.
Over the past 15 years, we have successfully integrated six brands into Darden and just completed the Ruth's Chris integration within our last fiscal year. Though the process can be complex, we have an experienced team ready to ensure that it proceeds as smoothly as possible following the close. I want to thank Steve Hyslop and the Chuy's leadership team for their partnership through this process, and their 7,400 team members for building such a beloved brand. This is just the beginning of our journey together. Now, I'll turn it over to Raj to discuss the financial details of this transaction.
Thanks, Rick. As mentioned, yesterday, we announced that Darden Restaurants has entered into an agreement to purchase Chuy's for $37.50 per share.
...The transaction is valued at approximately $605 million, representing a multiple of 10.3x Chuy's trailing 12 month Transaction Adjusted EBITDA as of March 2024. We anticipate closing on the deal during the back ½ of our fiscal second quarter, following a 30-day go- shop period. We're committed to maintaining our investment-grade credit profile, and we have sufficient liquidity and debt capacity to complete the all-cash transaction. With the financing of this transaction, we anticipate being at the lower end of our targeted leverage range of 2-2.5x Adjusted Debt to Adjusted EBITDA. Chuy's has a strong business model with attractive restaurant-level economics.
In the 12 months ending March 2024, they achieved more than $450 million in sales, average restaurant volumes of $4.5 million, with an average check of $19 and an impressive Restaurant-Level EBITDA margin of almost 20%. With the strong restaurant-level economics, Chuy's is a great fit for our portfolio. We anticipate furthering our scale advantage with this addition, which, as Rick mentioned, drives value for our guests. By leveraging this advantage, we anticipate achieving net run rate synergies of $15 million by the end of fiscal 2026, primarily through supply chain and G&A savings, partially offset by team member investments. Over the long term, we expect this transaction to be accretive to Darden.
Given the timing of the transaction, we anticipate that it will be neutral to our adjusted earnings per share for the current fiscal year. This does not include the pre-tax transaction and integration-related expenses of $50-$55 million. By fiscal 2027, we anticipate this transaction will be $0.12-$0.15 accretive to our earnings per share.
Ladies and gentlemen, please stand by. Okay, I do have that speaker line back in. Sorry about that.
Yeah, we're back.
Okay, thank you. Let me open up for Q&A. Thank you. At this time, we'll conduct a question-and-answer session for questions related to this transaction. Please limit your questions to one each in the interest of time. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we poll for your questions. Our first question comes from the line of Chris O'Cull with Stifel. Please proceed with your question.
Thanks. Good morning, guys, and congratulations. Rick, I know in the past, Chuy's believed the brand's unit potential was at least 350 units. And I'm just curious, was that the estimate you guys used to inform your purchase decision, or do you believe that potential is greater? And then I had a follow-up.
Hey, Chris, we're not gonna talk about the—what we think the potential is. We just think it can grow it higher than our long-term framework over time. And when we learn even more, we'll probably continue to increase the unit potential that we think they have. But we're not gonna get into the exact number that we think.
Okay. And then I believe Chuy's had plans to open 10-12 units in calendar 2025, with many of those locations kind of having signed leases and LOIs. Is the plan that, or does Darden plan to still accelerate the pace of Chuy's development?
You know, if you think about what we've said in the past, you know, we believe Chuy's, and I just said it a second ago, we believe, believe Chuy's can grow well above our long-term framework. But we've also said that we don't expect brands to grow well above 10% in any kind of long term. So they do have quite a few restaurants in their pipeline. We're gonna keep those going, and we're gonna continue to build the pipeline. But we do expect it to be higher than our long-term framework in unit growth.
Okay. Thanks.
Thanks.
Thank you. Our next question comes from the line of Jim Salera with Stephens. Please proceed with your question.
Hi, guys. Thanks for taking our question. I wanted to ask on the off-premise mix. I know Chuy's has seen a pretty significant step up in off-premise as a percentage of their mix. I think it was, like, 13% in FY 2019, up to almost 30% in 1Q. When you guys took over Ruth's, I believe you took it off of third party. Do you have any thoughts around what the strategy is gonna be for Chuy's, with the aggregators and kind of off-premise?
... Yeah, Jim, you know, you'd mentioned that off-premise is a big part of Chuy's business, and third-party aggregators are a big part of that. As of right now, we don't anticipate changing that for them, and maybe we can learn.
Okay, great. Thanks, guys.
Thank you. Our next question comes from the line of Jeffrey Bernstein with Barclays. Please proceed with your question.
Great. Thank you very much. And, Rick, interesting to hear that maybe Darden can learn from those third party aggregators. Look forward to hearing more about that. My question is specific to your portfolio, seemingly with Chuy's. I believe we're now up to 10 brands, which is an impressive feat. I'm just wondering how you think about that from the customer's perspective. It would seem like with the addition of all these brands, there's got to be a benefit from the customer side of things. I know there are lots of benefits on your end, but any thoughts around or greater interest in potentially loyalty or other things where maybe the customer can benefit from staying within your universe of portfolio of brands? Thank you.
Yeah, Jeff, you know, I don't want to get into what we would do after we make the acquisition with Chuy's. I do know that, and we all know that the casual dining category is variety seeking. This is a segment that we're not in, and it strengthens our portfolio in that way. We will figure out what ways we can strengthen our own guests through that after the integration or when we get into the integration. But, you know, yes, 10 brands is a good feat for us.
We have set our organization up to be able to handle those brands with the leadership changes we made that we announced just a few weeks ago, and we feel like this is the right time to make the acquisition of Chuy's and to add a Mexican category back to Darden after many, many years.
Got it. Then just to clarify, it looks like, Chuy's, with their 100 stores, I mean, the majority or the biggest presence is in the Southeast. I know some have said that the Mexican category is maybe a more challenging category to grow nationally, just because there's different taste profiles in different regions. So I'm just wondering about your thoughts as you presumably expand outside of Texas and outside of the Southeast, your confidence that the, the brand will resonate around the country. Thank you.
Yeah, Jeff, without talking about what our growth plans are for Chuy's, again, we're still early into the integration. Well, I haven't even started the integration, actually. We just feel, you know, Chuy's has done a lot of work on where their brand is strong and where they continue to grow, and, you know, we plan on learning from that. They have a lot more room to grow in the markets that they're in, and there's a lot of white space. So, I do believe that there's another Mexican brand out there that's not necessarily in our category, that's all over the place. So I think there's belief that you can be in other markets that Chuy's is in today.
Thank you.
Our next question comes from the line of David Tarantino with Baird. Please proceed with your question.
Hi. Hi, good morning. Rick, I have a question just on your acquisition strategy in general. You know, it seems like Chuy's is a very logical, strategic move and a good fit with your portfolio. And I know you have to look at these types of transactions when they become available to you, but I'm curious, this is the second one now, the second transaction in two years. And I'm just kind of curious to get your philosophy on whether, you know, as you look forward, you're still open to these types of acquisitions or, you know, whether you think that this is, you know, good enough for now, or how are you thinking about, you know, kind of the next several years, as it relates to these types of opportunities?
Yeah, David, you know, the first part of your question, you know, opportunistically, things come at certain times. Yes, this is our second one in two years. We did do that in the past. You know, we bought Yard House and Eddie V's within, I think, a little bit over a year of each other, around there. But, you know, our board and the management team will continue to evaluate what the best strategic alternatives are for Darden and our use of our capital. But we're gonna focus on Chuy's right now and getting through the, the close and doing all the things we have to do to get to close and integration, and then we'll figure out what to do after that.
Great. Thank you.
Thank you. Our next question comes from the line of Lauren Silberman with Deutsche Bank. Please proceed with your question.
Thanks a lot. I wanted to ask about just the valuation. Darden's multiple, as well as the rest of the industry, has pulled back, still concerns on the consumer environment. A little over 10x as reported, I think 8x, 8.5x, including synergies. Can you just talk about the considerations in terms of capital allocation and the best uses? Thank you.
Hey, Lauren. So look, when we evaluate an acquisition, we're really evaluating over long term, and we're trying to look at what's the future cash flow and what's the right multiple, right valuation, and then the implied multiples. It's not the other way around. But with that said, this transaction price represents a multiple of 10.3x the trailing twelve-month EBITDA. But when we look at the deal, we think this deal is right for Darden, and that the price we're paying, given Chuy's growth prospects, is fair, and it will allow us to create significant value to our shareholders. And in fact, when you add in the synergies, the multiple is 8.2x.
And so when you take into consideration the growth side and then and the other factors I mentioned, we think it's a fair price.
Thank you.
Thank you. Our next question comes from the line of Andrew Strelzik with BMO Capital Markets. Please proceed with your question.
Hey, good morning. Thanks for taking the question. I guess I wanted to get your perspective on the Mexican category within casual dining, specifically. And you mentioned kind of the faster growth profile of Mexican food and in other categories outside of casual dining, some of the success of the cuisine type. But historically, I guess, you know, casual dining has had some challenges scaling Mexican brands nationally. So I'm curious for why you think that has been the case, why, you know, this might be different now, and kind of the keys to achieving the growth potential for Chuy's. Thanks.
Hey, Andrew. You know, I think first of all, you know, when you look at historically other Mexican categories, other Mexican brands that have expanded, you know, they were expanding at times that maybe they expanded too far away from where they were. Even Chuy's went through that at a time. They kind of thought they can go anywhere and start opening in much different places. You know, all brands retrench. We're not saying that any brand needs to be national. You know, you know, to make a meaningful impact at Darden, they just have to grow at the higher end of our framework.
And so we're gonna continue to focus on growing Chuy's at the rate of growth that they've had in the last couple of years, and hopefully a little bit, you know, keeping them higher end of our framework. And we'll learn more about other markets. When we get into a market, we're gonna learn about it before we go in. So, you know, we're not as concerned about being a national brand. So I will start with that. We really only have two really, really national brands right now, and actually three, when you think of Ruth's Chris. You know, so we will continue to focus on building our, our restaurants in a very measured way and determine where we need to go. And they still have a lot of growth in the markets they're in.
You think about how many restaurants they have in Texas versus how many Olive Gardens are in Texas, or how many restaurants they have in Tennessee versus how many Olive Gardens. And so there's ways to grow in markets they're already in that'll still add to our growth rate.
Thank you. Our next question comes from the line of Danilo Gargiulo with Bernstein. Please proceed with your question.
Thank you. I was wondering, in your investment thesis, you're mentioning, you know, you're expecting, you know, future cash flows from Chuy's to potentially be accretive to Darden. And, I was wondering, in your investment thesis, other than the cost synergies, what are you contemplating? In other words, what can you do with Chuy's that is justifying the 50% premium on their, you know, current stock price as of yesterday? Thank you.
Hey, Danilo. As I said earlier, I think when you actually look at a business, we are evaluating it over a period of time, and you can't look at the premium on a specific day and say, "Is that right?" Because there's always volatility in the market. And if you look at the 60-day and 90-day VWAP of where this is, this is a decent prem- this is not as big of a premium as you just alluded to it on the one day. And that's not how we look at a business. We have to look at the- we look at the future cash flows, generation potential, what are we paying for it? And when we look at it, really, the things we mentioned are, in addition to the synergies you brought up, the growth.
We talked about growth. We think they can grow faster than what we have our framework. They can be accretive to our growth, and that's it. That's part of the valuation. And as Rick said earlier, this is also a category that we don't compete in, and it's a fast-growing category. So that's the other part of the thesis, and that gives us an opportunity. And it also has a great business model. So you look at the unit economics and so every unit they open, it's going to be pretty accretive. They are one of the best margins in the industry. So those are all the reasons why the price we paid is fair and makes sense.
Thank you. Our next question comes from the line of Sara Senatore with Bank of America. Please proceed with your question.
Oh, thank you. Just clarification on the comment, Raj, that you just made, and then a question or another question about the Mexican category. You know, you pointed out that the margins, Chuy's, I think they look to me like they're probably higher than any concept in your portfolio, except for perhaps, Olive Garden. So I wanted to understand if there was an opportunity there, or if it's the synergies are, you know, primarily on G&A, given, you know, I think typically you don't want to see margins that go too high, but perhaps the concerns for Mexican is are a little different than from other cuisines. And then, just on the category, is that something that you think about?
It looks like the category growth is a bit slower than your other than the other categories you operate in. Is that a constraint or, you know, the under-penetration is such that you don't worry too much about category growth? Thanks.
Yeah, let me start with the first part, which is I think it is because it's under-penetration. There's opportunity for growth. When we look at Mexican generally, there's been broader appeal, and it actually appeals a lot more to the younger people. So this is the faster-growing. So as you look to the future, this is opportunity for us to be in that market that appeals really to the younger population. So that's the answer to that. Going back to the margins, you're right, they would be essentially, you know, the second at this point, the second highest at the restaurant level, unit economics. From a synergies point, you got to think about the scale advantage that gives us the supply chain benefit.
So when you take that into consideration, that would help the restaurant level a little bit more. Now, with that said, we talked about some investments in team members, and then the other part is, you know, the G&A. There is shared services. The platform benefit is that we don't need to add incrementally a lot more to for the support. That's how the math comes together.
Thank you.
Thank you. Our next question comes from the line of Gregory Francfort with Guggenheim Securities. Please proceed with your question.
Maybe just a follow-up to, on the, on the synergy point. It, so, so the bulk of that, would it just be coming from the cost of sales? And that's, and that's, in terms of the timing of when you bring Chuy's into your supply chain distribution, is that, is that, happening maybe six or nine months in, and that's why the synergies are mostly in 2026? Or just any reason for the timing of that, being in 2026 rather than 2025? Thanks.
Well, let me be clear that supply chain is more than just cost of sales. So cost of sales is obviously one aspect of it, but also all the indirect spend we have, the contract negotiation, that's part of our supply chain team works on. They're involved in all of that, not just the COGS side of it. And then on the other question about the time, yeah, we at this point, very early, based on what we know and what we think the timeline might look like, we've laid out what we think, and if there is any changes, we'll share when we have them. Maybe at close, if we have any updated information, we'll share.
Thank you. Our next question comes from the line of John Ivankoe with JP Morgan. Please proceed with your question.
Hi. Thank you, Rick. I'm looking for a history lesson. I think you're one of the few people that could really give it. So, yeah, as we, you know, kind of think about, you know, brands over time, and I'm gonna take you back to the eighties because I know you know the answer here. And we kind of think about brands that have kind of attempted, you know, to be full service Mexican, you know, just kind of as defined, as kind of being a big, growing category for a lot of different reasons and the opportunity to kind of develop a national brand around full service Mexican. You know, just on the top of my mind, you know, On The Border, Rio Bravo, Don Pablo's, Casa Gallardo, Chi-Chi's.
You know, so there's just kind of has been, you know, actually quite a lot of effort that has been put into developing this category on a national basis. And certainly, I heard, you know, the answer to your question, you know, earlier, is like, you know, you don't need it to be a national brand, and we really are starting from a relatively small base. But, you know, kind of in hindsight, are there any common threads, you know, of why, you know, so many, you know, kind of failed, you know, in this space?
You know, if there are any kind of learnings, again, based on your experience of, you know, why the Chuy's experience could be something more sustainable and sustain customer frequency, which is what I understand the issue were, was for many from my perspective, you know, but sustained frequency where others did have an inability of sustaining frequency. Thank you.
Yeah, John, a few things I would say. You know, all of the, a lot of those brands in the past, they were growing when dining was growing really fast. If you think about how much, how fast a lot of these brands grew, and they grew out of their core markets, you know, they probably outkicked their people, and there was a lot of competition going on at the same time. And now there's fewer of those category, fewer of those brands really with a lot-with a strong presence. We've learned of that, too. We've learned that sometimes when you grow too fast, brands outside of their core markets, then you struggle for a bit. You know, we learned that with China Coast. We've learned that in a lot of other places. And we've also learned that you don't have to be national.
So you think about some brands, when they get out of where, where they started, they think they have to change their brand to continue to perform. And we don't think you have to change your brand. You just have to be methodical of the way, about the way you grow and stay true to who your brand is. You know, a lot of those brands, On The Border, I believe, is one of them you mentioned, you know, they were the first ones to kind of really jump out of Texas, and then they started changing who their brand was. And we, we learned from that, and, and we'll continue to watch that. That said, we think Chuy's is a great brand.
It is, as we, as Sarah mentioned, it would be the second highest margin in the Darden portfolio, and I believe that with Chuy's in our portfolio, we would have the top five margin brands in, in casual dining or in full service restaurants. So it adds to our portfolio, it gives us a cuisine that we're not in. It doesn't have to be national. It just has to grow faster than the high end of our framework, and we believe it can do that. And we've learned from the past in the way we grow. In our existing brands, you think about brands that we have still today. Bahama Breeze, we opened really fast. We went a lot of different places, and we had to retrench.
We did that with, we did that with Seasons a little bit, and we did that with, with, you know, with China Coast. Chuy's has already done that. And so now how do we go and continue to grow from there? And now there are over 100 units, and we believe they can be much bigger than 100.
I got it. Thank you.
Thanks.
Thank you. Our next question comes from the line of Brian Harbor with Morgan Stanley. Please proceed with your question.
Yeah, thanks. Good morning, guys. Just on the, you know, team member investments you mentioned, is that really just kind of bringing them up to Darden benefits and wages? Is there any kind of, you know, broader change to the operating model that you think you might have to make here? I think you did some of that with Ruth's Chris. Does that, you know, affect the margin structure much in the future, in your opinion?
... Yeah, Brian, without getting into too much detail, it's really more about the benefit side. We, you know, Darden has a great employment proposition, and we want all of our brands to have the same employment proposition, and that would be some of the investments that we make.
Thank you. Our next question comes from the line of Brian Vaccaro with Raymond James. Please proceed with your question.
Hi, thanks, and good morning. You highlighted Mexican as the, a fast-growing category, and I, I would think that that includes some pretty rapid growth in the fast casual sector, as well as several, you know, street taco or cantina concepts that, that seem to be growing pretty rapidly. So I guess I, I'm curious how you see full-service, sort of traditional Tex-Mex fitting within that growth. And I'm, I'm curious if, if you think there are, are certain ways you, you might think about evolving the brand to align with some of those tailwinds. Just wanted to get your sense on that.
Yeah, Brian, still a little early to tell you if we would align—change anything about the brand. What I would say, as Raj mentioned, you know, Mexican is the most demanded brand for the younger generation. It's a very... Well, the young generation really loves Mexican concepts. Yeah, yes, some of them are in the fast casual space, but people migrate over their lives from certain need states. Chuy's meets a different need state than maybe a fast casual version of Mexican. And so we'll continue. By the way, craveable was the word I was trying to think about. It's the most craveable cuisine for the younger generation, and we're gonna continue to do that.
You think about the value proposition that Chuy's has, no white space on the plate, a lot of food at a great value, with great fresh food. They don't have freezers in their restaurants. We think it's a great brand.
Mm-hmm.
We do think that the younger demographic loves Mexican and, you know, will continue to, continue to eat Mexican food as they grow older.
All right. That's great. And then a quick follow-up, if I could. I'm mindful that Chuy's store margins are up pretty significantly versus pre-pandemic levels. And I'm curious, you mentioned on the labor front, but are there other areas you see opportunities to reinvest, perhaps, in the ops or the guest experience, as you see the brand growing forward? Thank you.
Yeah, Brian, you know, we look at opportunities to invest in any of our, any of our brands, whether it's food or the service or the atmosphere. You know, we will find opportunities to invest where we need to, where we think it's gonna give us a return. You know, they actually were one of the only other brands in full service that actually improved their margins over the time from COVID. You know, and there are some things that we might wanna say, "Should we bring back?" And so we're gonna look at it. We're gonna see what happens after the close and after we get through the integration. You know, after we start integration and having conversations with Steve and what's the right, right move to make.
You know, we will, because of our scale and our advantages, we may be able to make some investments back into their business that will drive more sales growth and will drive without making a dent in their margins as we grow sales. So, and remember, the synergies that we talk about help all of our brands, not just Chuy's. So other brands will benefit from these synergies, especially on the G&A front, so they will be able to continue to do our strategy of pricing below our competition over time.
Thanks very much.
Thank you. Our next question comes from the line of Steve Schofield with Terrapin Asset Management. Please proceed with your question.
Hi, just to follow on to one of the prior questions. You know, why, why was now the right time? Was it just that Chuy's became available at the right valuation?
As Raj mentioned, you know, we think about these acquisitions over long term. We don't necessarily time markets, and if, when you start reading what all the filings you have, you see what the process we went through. We think it's a great price. We think it's a good deal for our shareholders. The multiple that we paid was a fair multiple based on their growth prospects and our synergies.
Okay, great. Thank you.
Thank you. There are no further questions at this time. I'd now like to hand the call back over to management for any closing remarks.
Thank you for participating on our call today. As a reminder, our first quarter earnings will be released on September nineteenth, after, before the market opens, with a conference call to follow. Thank you, and have a great day.
Thank you. This does conclude today's teleconference. We appreciate your participation.