AGM 2019

Nov 13, 2019

Good morning, and welcome to our fiscal 2019 annual meeting of our shareholders. I am pleased to be joined by all of our Board of Directors, Jim Shmada, John Dooner, Mary Garrett, Jim Carlson, Tara Stachem and Don S Pacita. Also joining our number of our team members, including one of our very good friends, independent retailers for at least, plus 50 years, I would say, feel as a procedure glad to have you here, Phil, is also a shareholder. We made major progress in in positioning our business for continued growth in profitability and sales. All right. I just want to get these slides. All right. Here we go. Let me give a brief overview of our financial performance for fiscal year ended June 30, 2019. Despite many external challenges and drop in sales to China by 48% in the fiscal year due to China imposing tariffs on our products. Percent. And adjusted earnings per share increased by 15.6 percent. We paid out $47,000,000 in cash dividends and ended with cash of 20,800,000 Our focus has been to operate manage inventories and expenses and continue to have strong earnings and cash flow. In last 10 years, despite impact of the great recession, we paid out $187,000,000 in cash dividends purchase $75,000,000 of our stock. And since taking the company public in 1993, we have paid back $485,000,000 of debt. Repurchase 42.5 percent of our stock of our outstanding shares or $601,000,000, invested 810,000,000 in capital expenditures and paid 462,000,000 cash dividends. We have taken many steps which have positioned us for growth. Now, I mentioned that the retail environment, especially for home furnishings, has been challenging, but today, it provides us a great opportunity due to the crisis facing the industries and due to and manufacturers. Including impact of globalization, commoditization, deflation and technology, especially that of the internet. We are positioned well due to our continuous reinvention entrepreneurial and motivated teams and our unique vertically structure from concept to final interaction with our clients to our strong marketing and our enterprise and associated responsible managers in manner. As I mentioned, we are blessed with strong teams in this vertically integrated company from in retail. We have about 25 100 retail associates, including about 1500 talented interior designers and long serving experience associates in marketing and about over 2000 associates in our manufacturing, logistics and operations. As I mentioned, we are unique in our industry and in most industries in our vertical integration from a retail to manufacture to logistics, to marketing and also today, of course, technology is critical. Our structure retail vision structure consists of having now we have created 8 districts. We 144 design centers operated by entrepreneurial, management. Most of them have come from the ranks. Our independent retailer structure, we've got 100 and 58 design centers or 100 or so outside North America, in the United States, International, and our objective is to expand this network. Ring structure is, again, we still, as I said, we produce about 75% of our products in our own North American, many tax rate. In case goods, we are consolidating. If you look, the fact is 30 years back, we are 30 manufacturing plants. Most of our industry most of our competitors give everything up. We decided to maintain manufacturing, consolidated to the best areas, and we decided that for our wood products, we'll solidated into Vermont, where in Orleans, we have one plant. In Peter Falls, we have a plant in in Old Fort, North Carolina. We have a woodworking operation, and then we also operate established a plant in Honduras. In upholstery, we consolidated our manufacturing to Maiden North Carolina and also to sell Mexico because 10, 15 years back, most of the sowing at Left United States that got into far to Southeast Asia. We decided to control it, and we decided that, Silao be the best place for us to be able to operate ourselves, and that's what we did. Now logistics is a very important part our business. We to do that, we have a strong logistics network. Our national logistics is in Dublin, Virginia, in Otoka, Oklahoma, in Pai Valley, North Carolina and Maiden, North Carolina. Now optimization of manufacturing is logistics critical. We have been doing it all the long not, we would really not have about, over about 75% of our products made in our own work ops. In upholstery, as I said, we have now focused on manufacturing in 2 major areas, made in North Carolina with 2 plants, In fact, we're just in the process of having it adding a new addition of over 80,000 square feet to Maiden, North Carolina. And Silao, we have 2 plants with about 572,000 square feet. Case goods, again, we have continued to sure that we position it well. We have in Vermont close to a 1,000,000 square feet or 1,000,000 square feet in Fort Allford, North Carolina with a good working operation and in Honduras, close to a quarter of a 1,000,000 square feet. In addition to our manufacturing, then we also have selected partners producing high quality products. Most of these are in textile, accessories. And we use local artisans. And as I've mentioned, later, we also make sure that each one of these partners maintains a strong social responsibility otherwise we don't do business with them. So our manufacturing today, technology is critical. We have invested in equipment. We have strong MRP systems. And this has enabled us to maintain manufacturing in North America. Logistics the same way. We're operating logistics in, throughout North America. Our products go from our manufacturing our national distribution. And from there, it goes to our service center retail service centers. Now the retail service centers are well are very, very important. They take the product, they open it up, they prep it, and then they deliver it to our clients in, in what do you call a white glove service. We have 27 Retail Division Service Centers, and our independent retailers also operate 31 with centers, and this level of service is critical in our business and differentiates us. We've invested in trucks We've invested in technology. We've invested, so that the product that goes out. Because in our industry, the difference between running a good business even being profitable is that we want the product to go there first class to a consumer's home. Our design center network has been as you know, we have continued to reposition when our many of our design centers, the stores were opened up in the 1950s 60s. And in the last 15, 20 years, there's a lot of changes taking place. We had to relocate 65% are new or relocated during the last 15 years. Recently, we have opened up new design centers just recently in Albany, New York, a geena relocation in Ann Arbor, Michigan in Cincinnati, hire. And right now, in the process under construction, many design centers, including in Houston, Texas, in Casta, Pennsylvania, McLean, Virginia, Rancho Mirage, california actually, they just opened up Oxnard, which is in Los Angeles, area of California And Green Bay, Wisconsin. This process continues. We need to make sure that these design are positioned well in the right areas. And again, I will discuss a lot of technology. The technology and personal service is critical. We have been combining technology and personal service. In fact, the question is asked today, how do you compete at retail today day at retail, unless you provide a great personal service, combined with technology, the chances are you're not going to be in redial. And as we have seen, there's been such a disrupt at least 100 major retailers and medium sized retailers have gone out of our business. Because today, without those 2 elements, is hard to operate a business. So having touch screens and having all kinds of technology, which I will talk about is important. Customer relationship management, the CRM is very much important. Let me go back. In here, we're talking of driving awareness and delivering personalized experience, integrated Salesforce marketing system. We implemented it, this and in the process of getting information, which is extremely important. Also, our digital market is important in terms of creating awareness, creates and loyalty. And this digital campaign reaches consumers every part of the funnel. And we are seeing some benefits. And as we go forward, again, a lot of focus in this area. Now this one also in the last couple of years, augmented reality is tremendously important. Over 3000 of our products are today in 3 day, 3 d digital assets, all to scale, showing how return products look and fit in the home. And this, again, is the tremendous tool for our NGA designers. They, as I said, today about 600 of NGA designers are chatting online. That is becoming so combining personal service and technology is becoming critical in our business. 3 d room planner, designer tool to enhance customer experience, 2d to 3d, again, a lot of progress, and we had a convention last week with about 500 of our design associates and our managed us here, and they rarely, really were tremendously impressed with the progress that we have made, and still a lot more to be done. Now I want to talk about marketing. We have positioned ourselves quite well, but still we have a tremendous amount of opportunity to expand our reach and to increase our sales. In the last, 10, 12 years, the challenge has been deflation have been faced with deflation of 6%, 7% every year, just to stay even. Just to stay on top of it, the the products coming from all over the world has been coming at prices that are relatively extremely, extremely low. And many of these companies and newer companies don't care if they make money. We know that. In fact, the financial markets, and I'm sure some of those folks listening, they are more interested in sales rather than profitability. They have tremendous amount of negative impact on, on, for manufacturing or retail, but we are We are known under design brand. We've been around for 70, 7 or 8 years, We have continued to have strong marketing. And today, we have now launched at our convention last week. We discussed about the launch of our membership launch program, very, very important. We have refresher offerings. We have expanded our offerings, and we have also made making our design centers be more relevant for today. Now the membership launch campaign is very, very important. As many of you know, about 10 years back, prior to the Great Recession, we offered our clients our everyday best price. That worked well for our clients and our teams. Bringing more credibility and efficiency. And then of course, the rate recession came and people said, no, we need sales. So we started with a 10% sale, then went to 15, then went to 20, then sometimes 25, crazy. That takes you back. It less it takes away credibility and takes you really backward, but we had to go through that period. And then this year, we decided the time has come for us go back to creating credibility, and we launched the membership launch campaign, and I will talk the various elements of it. It goes, it has, it was launched actually last month in October with a visual for our design centers, with a print and a direct mail campaign, a digital campaign, a social media campaign, and we are in the process of launching Outdoor. We launched a TV campaign, a lot of events, local events, social events and a lot of focus on training and education. We launched it with, as I said, in October with a able to have a point of sale. So this point of sale was sent to all our design centers, introducing the Ethan Ellen program. And we said we're going to create credibility by saying, okay, did our best price? We have 20% savings from our everyday best price, free complimentary design service, free in home delivery. That's very big. That's a major thing. Hardly anybody is able to do it on a consistent basis. And in the United States, for those people who qualify special 24 month financial. It was launched last month. And we launched it with a TV campaign Now here. Okay. Let's go back. Introduce the Ethanol member program, special member pricing, complimentary design service, free shipping, and a exceptional white glove home delivery. Unparallel value and service on your every purchase every day on every hand a piece of furniture designed to help you curate a beautiful American home backed by 88 years of American design and craftsmanship. Ethan out We make the also with a direct mail, a 68 page direct mail, reaching 2,500,000 households in October November. And here, we've got gave the message across why we are doing it. Question of our credibility, question about the fact, the quality that we have and our services, our design service is. And this has a tremendous opportunity as we discussed last week with our 500 team members here, and they all embraced it. Because it increases their credibility. Can you imagine every month they've got to go back to the clients and say, we don't know what's going to happen next month. It also creates efficiency. I believe it's going to improve the bar at least 25% efficiency in our network. I don't know anything else that can increase by 25% efficiency of designs consultants, efficiency in our operations, in our manufacturing, that is tremendously important. Now we got to make it work. We talked about our design service with 1500 interior designers. We are the leading and if not the largest interior design company. People take a lot of pride, and this membership program is great for the dignity. And that's always important. We, as I said, also, we got the message across this in our direct mail about the handcrafted in our Vermont workshops, from forest to final coal we have a sawmill. We go from sawmill. We go to the forest and we go to making the products. Not many left in the United States. We're doing are doing. In North Carolina, it's handcrafted now made in North Carolina workshops. We have operations, as I said, also in Silao and also in Honduras. Premier in home delivery is critical. This is what differentiates us and we have invested a great deal and we'll continue to invest. So to make sure that we get them across and also our offerings today. As you can see, we have made a tremendous amount of change in the 3 years or less than 3 years, 70 percent of our offerings have been changed to reflect what we call classics with a modern perspective. And that's what we're getting across. Craftsmanship, classics, but meeting today's lifestyles. And that's what this gets across. We have strong programs in lighting, in textiles, in rugs, and attention to details tremendously important. Then in terms of a launching of this program, we are continuing to launch it in many areas and we just started launching in selected markets in outdoor advertising. We also, for instance, this is a big white spot, I think, a jitsi bucks that goes from Manhattan to the Hamptons. So all those folks see and something these are kind of areas that we are looking at to get our message across. Outdoor is all areas. This actually happen to be a design center in downtown Chicago, and we had the opportunity when we negotiated to have the ability for that signage. So that signage to talking about our membership, and we are using that across the country, selected markets, and we'll see more of it. Then we go into November. And in November, again, we're getting the message across what our point of sale is. Letting people know that this offer that we have is very, very strong. Now in fact, last, last week, we had this at the convention. So our designers said, what are we going to do in for Black Friday? It's coming up. We left the city and others were here. I thought about it. I said, you know, we have an amazing program for Black Friday. Amazing program. We are going to give folks 20 percent savings from everyday best price. We're going to give them complimentary design We're going to give them free delivery. And those who qualify 24 months interest finance, this is great. We just got to let people know. So and so launching from this week, we have our own Black Friday, but it's the program that we have currently available, and that's what we're going to get across the nation. And then we are looking at how do we get great excitement Our messages in the last few years after the great recession was to great degree promotional, what saved we're going to have? What sale we're going to have? Today, we have said we have got every day best price and now we've got exciting with innovation within inspiration. And we shared this, what I'm sharing with you here with our network last week, and we're excited with the work that our teams are doing in getting them across what Ethan Allen can do for them. This is just work in progress. And you can see, in fact, this is a January direct mail, you know, a month, a few months back, we would not share what we're going to do the next month. But now I'm sharing what we're going to do in January because before it was all focused on sales today, it is focused on the benefits that Ethan Allen can provide. For instance, this Magazine is going to have an 8 page insert, which will talk about our commitment to quality, to North American Manufacturing. To the member program. This is an 8 page insert. It talks about our work in social responsibility. We believe that doing what is right is tremendously important. And that is something that our designers are working with clients have a book called our values, which I have encouraged them to give it to the clients based on our website so they can see what we do in terms of all the areas. And of course, our design services critical. So it talks about we help make your house a home and then premium in home delivery. All these differences That's where the focus is, not the fact we are 25% on sale. You know, it's a big difference, and that's where the focus is going to be. Now we've continued fresh our offerings. And as I said, we are known for classics, but today, classics have to be the modern perspective. Now we introduced also last week, and I'm just sharing with everybody a number of product lines. In fact, this, we have named it Lucy, Lucy by Ethan Allen, It's a somewhat of a modern classic product lines. And Lucy is a good name, and it just so happens. Lucy was the youngest sister of Ethan Allen, and Lou is a good millennial name, so it was a great to combine it. So we introduced it very, very well received, and we are going to start marketing it early next year. And all of this a working name. We are branding these product lines. We got this is called the bespoke shop. It's a custom shop. Again, products made in this happens to be most of this made in Vermont. That gives us a competitive advantage. We want to get across that what we can do here. These are custom tables, buffet, lots of options, color, finishes, we can do that. And this is also those who are here, please spend a little bit of time because a lot of this product is all here that we showed last week, so you can take a look at it. Some of our merchants are here they can take you around. We also are introducing and expanding our bedding program because mattresses are important always been in mattresses, but today, we are going to brand it. It's a working name. It's Savelux, and you're going to see a lot of that being branded as we move forward in next year. Now Outdoor is an important business. We are branding it again. It's outdoor paid by Ethan Allen. And you're going to see a lot of advertising as we go forward in the branding. And those of you who are here, if you go to our design centers and our various rooms, you'll see some great product just introduced that will be coming into the market next year. We also looked at our design center and this those of you are here, please go to Danbury Design Center, and you will see the clarity of defining the products. On one side is what we're calling it an innovation studio. This is a modern view of relaxed living. This is somewhat products I would call classic are in more casual products with a modern perspective, casual, but we want to show that we have that opportunity and you're going to see that. So that is in our design centers. We are showing that in our advertising. And then the inspiration, this is more of the you might say the olden days, we call it a formal. But today, this is classic product, but again, with a modern perspective. So our design centers are being developed this is all in the design centers. You can see it and again, very well received by our teams. Social responsibility is critical. We've always strongly believed in it. And, corporate responsibility at all levels is important. We have worked to reduce our carbon footprint, electricity usage, water usage, landfill, greenhouse gases, biomass, because we are a vertically integrated company from a council of ideas to manufacturing to 6. So we're involved with all of these things. And those who go to our website, you can see the progress that we have made. For instance, when we went to, Mexico about 12 years back, I asked our management over there what we purchased the plant or what's the social response ability will be following. They said we follow the Mexican law. I said, how about we follow similar to Vermont? They were surprised but we did. In terms of social responsibility, safety, environmental, and we have received tremendous recognition but most importantly is we have received recognitions by our team members, they're loyal, they're hardworking, they take pride in what they do. That's the most important But we also last a few months back, were given by an organization, an important organization in Mexico that our plants, there is a great place to work. And so we're really proud. Similarly, we have received a lot of, responses in the Connecticut from the governor, on the social response ability and the work that we have done in Connecticut, in North Carolina, of course, in North Carolina also. This is our Honduras plant. This We operate medical service. We do that in Mexico also, and we were designated for the last few years as the best medical facility in in a plant, and we take a lot of pride in all those things. So those are the areas that we have been positioned. If you take a look at, the progress that we have made has been good. And either I just use our investors know about it. I mentioned earlier that our focus has been to make sure that we we perform well financially, while making sure we run the business the right way. So we've invested over $800,000,000 in capital expenditures. We have been able to we gave $462,000,000 in dividends. We I also mentioned about $470,000,000, we had a debt after we had purchased the company, we had to pay that back, which we did. Even in 5 years, our dividends are we'll continue to invest in dividends about $1,000,000. Almost 43% for, close to $600,000,000 invested in purchase. And this is where our investor communities that today we have shared this. That is what happens in a business where you are, where we have a vertically integrated it works both ways. If we don't have business, we have cost structure across the board. If on the other hand, we will increase our sales, it creates an operating leverage. So have a great operating leverage in terms of opportunities we have growing the business and the profitability, but the focus really is to do it the right way. So with that, what I would do is this, this overview, Before we open for questions and comments, Eric, you want to say something or we open for questions and comments now? So you want to come up here? Okay, come on up. Welcome, everybody. Welcome you to the 2019 annual meeting of stockholders. Please refer to the rules of conduct that you received when you arrive today. Your cooperation in observing these rules will be greatly appreciated. Observements of the rules will provide equal opportunity for all stockholders to participate. And to highlight a few of the rules, number 1, all questions and comments should be directed to the chairman. No stockholder may address the meeting until he or she is recognized by the Chairman. 2, if you wish to ask a question or make a comment, please raise your hand and a microphone will be brought to you. We would recognize, please stand, state your name and state the fact that you are shareholder. If you're acting as a proxy, please so state and name the stockholder you are representing. Only stockholders of record at the close of business on September 16, 2019, where the duly appointed proxies are titled to address the meeting and vote. 3, be as brief as possible. Questions and comments must be within a time limit of 2 minutes. Now, the order of business for the business portion of the meeting today is that if there's anyone who has not submitted a proxy yet, who's here and wishes to do so. Please give it to the 2 inspectors of election, the 2 gentlemen sitting to my left on the far wall. No one has any, okay? We will proceed then with the initial formal business there will be an opportunity court that notice of the meeting was duly given on or about October 1, 2019. The list of stockholders entitled to vote at this meeting has been the in for inspection during the course of today's meeting. Pending confirmation upon tabulation of ballots and proxies, we are operating under the that a quorum of shares is present OE Services, Inc. And Christopher Hayden of Georgetown LLC. Both have signed the judges oath, and that will be filed with the records of the meeting. Once the final votes are tallied, the inspectors of election will satisfy the final vote of the meeting. And before we to note that ballots will not be distributed for any vote until the presentation of all comment on each to the business at hand. After the formal business, there will be an opportunity to ask more questions of Mr. Kathwari or the other officers of directors here. The proposals to be voted on at this meeting are as follows. Of directors. There will be 7 directors of the company, and the board of directors has nominated M Farooq Kethwari, James B Carlson, John J. Dooner, Jr. Dominic J Espazino, Mary Garrett, James W. Schmater, and Tara eye Statham for election to the Board of Directors. Are the only individuals to be considered for election. The second proposal is to approve by a non binding advisory vote, the executive compensation of the company's named executive officers. And the public accounting firm for the 2020 fiscal year. Now, we are not aware of any other business to be conducted at this meeting. We have not received any communication from shareholders in accordance with our governance documents. Before we proceed to vote on the above proposals, I would like to ask any stockholder if they are aware of any other formal business Now that all they would like to make with regard to the proposals. If so, please raise your hand to be recognized. My name is Miguel Fuentes. I represent, one of the carbonate pension funds that holds shares in Ethanol and Interiors. Collectively, the carpenters pension funds have $60,000,000,000 in stock and we hold 76,000 shares of your company stock. So as the election of directors takes place, I would first like to commend the board for, its majority votes standard in uncontested elections and to acknowledge the quality of every individual, board member and the board as a whole. Our pension funds monitor and, engage 100 of portfolio companies annually and raise, governance and compensation issues. Here's one question that quite frankly, we never had to ask. Why is the Board of Directors paid so little? When the market pay average for directors are commonly higher, can you address that, Brian? Well, I don't know that I'm the appropriate person to access that. It is a unique and I go to a lot of meetings also. 2 years ago, when we held the compensation of our executives and recognized under our schemes that we were going to hold or reduce the compensation of some of our key people. Our directors honestly thought it appropriate that we cut ourselves. That that was appropriate leadership. And that's what we did. And frankly, I don't think any of us thought the right thing was to jump back after doing that. So you are right, it is unique. Does that respond, Mr. Twethys? Yes. Is that the question? Mr. Chairman, my name is Jim Law, and I represent the Carpenter Union Pension Fund as well. As long term investors, our pension funds evaluate executive pay plans based in large measure on how they drive long term corporate performance in the company's strategic portion of total compensation delivered in the form of long term cash or equity compensation. With regards to both the Chief Executive Officer and all the named Executive Officer, less than half of the total compensation in the company's plan is delivered in the form of long term compensation, with vesting our performance periods of 3 year or more. In the case of the named executive officers, only 16% of their total pay is long term incentive pay. For you or the chair of the compensation committee address this aspect of the plan. It's a good question. And, when you take a look at, for instance, my compensation, about, I think, that my total compensation more than 50%, 60% is non cash. And now the test was very rigorous. Our handbag compensation committee, and I put it such that I have not able for the last few years, been able to get most of that compensation. So the remains that our compensation opportunity is there. So when you see the percentage, it gets a little bit, you can sort of not completely get the picture because the opportunity is there, but the tests have been so hard and rigorous that we have not gained that. So all we have done is received cash and we have not been able to obtain all those other compensation. Are there any further questions or comments? It is now, by my watch, 1040 and as the designee of the airman, I declare that the polls are open for voting and we will proceed to vote. Anyone who has already submitted a proxy need not vote by ballot at this time unless you wish to change your vote. I don't know if anyone here wishes to change his vote. If so, there are ballots available with the inspectors of election and you may do so now. Okay. Now the, I guess there are no ballots that have been cashed at the meeting. The judges of have already tabulated the vote, based upon the proxies that have been received as of this morning, when the ballot closed, if you give me a moment, I will go to the inspectors and get the results and be able to read them to you. Okay. The judges reported to me that as of today's meeting, 13th November, 2019, that the total outstanding shares are 26,586,945. Of those 90.96% have voted, that's 24,184,753 shares. Each of the 3 proposals has passed, and the members of the board has been elected as follows, m Thu Tawari James Carlson, John Dooner Junior, Dominic J. S. Pizito, Mary Garrett, James W. Schmater, Tara compensation has passed. Fying KPMG LLC as the independent public accounting firm has passed as well. The report of the electives inspection will be filed with the minutes of the meeting. And that concludes the formal business to come before the meeting. And I would like to turn the meeting now back to Mr. Kathwari. Thank you, Eric. And I want to also really thank our stockholders for the continued confidence and I'm married to not see what I've seen it this morning is really gratifying to see that between 96 99% of the stockholders voted in for favorably the is a good one. And just so happens that my compensation actually at least more than, I think 70% is performance based, but the as I said, the performance metrics were a lot tough, and it's okay. And even though we performed well, we produced great earnings, great dividends, that's fine. In fact, a couple of years back, I, myself, on my own, decided to give $2,000,000 back. The company because I felt it was the right thing to do. Our management, our leaders take their responsibilities very seriously and are blessed. We are tremendously great people. We are blessed with great board members who take our work, our work hard. They give a lot of they're involved. They give inputs when it's needed, when it makes sense. So we are really blessed. With that, any other questions or comments from anybody else? Yes, we have their suit. If you can also, again, yeah, please, it will again kindly introduce yourself. Again, Miguel Fuentes with the Corporate Pension Funds. Mr. Chairman, a topic that's received growing interest in President, some of the leading business schools is the growth in ownership interest held by mutual funds, particularly passive index funds. BlackRock, Vanguard, Dimensional Fund Advisors, each hold in excess of 5% of the company's outstanding shares. With a combined ownership interest of 33 percent of the position. Could you speak to your views of the growing concentration of institutional ownership and its impact on corporate governance and industry competitiveness. Basically, What was that? Specifically, the increased concentration of ownership of passive in this fund, does it aggravate short termism in the market or alternatively enable the company to take a long term strategic position. And secondly, records show that the Vanguard Group manages a significant portion of Ethanol's 401. Program, which raises questions of whether investors should be considered with possible conflict of interest regarding these large passive investors? Yes, again, good questions. You know, I have, last week, we had our earnings release, and I mentioned that that released was my 101 consecutively quarterly earnings call, 101 So I have been discussing and talking to investors and getting the message across, and my has become also on the advisory member of the New York Stock Exchange. My focus has been internally and externally that short termism has been a disaster for America. The focus on short term at every level has been a problem. The focus on just increasing sales and not focusing of life of your team members, not focusing on cash, not investing in America is a problem. We have been able But despite we've had challenges, some folks in the past didn't agree with us, but substantially, the stockholders that we have agreed with the fact of our long term presence. And in fact, also that, you know, stockholders are also interested a company that operates well and also provides a reasonable and a sensible dividend. So I believe strongly that our stockholders are supporting us. They take a look at what we do overall and not and there are many who want companies to perform well, to produce cash, and to give dividends. There are others who don't care. So I would rather like the first batch of stockholders, and we are blessed with that. On the second question, I don't think so. I think that our, you talk about any potential conflict of it. Corey Whitley is our Chief Financial Officer. I would not think so because it's so minor, and they are so far, away from those who manage the funds and those who invest, I don't see I've never heard of any conflict. Is too small. Thank you very much. Any other comments? If not, I again want to thank all of you here and thank all those who are participating online that we have, we've had a good year, but good year more, not we've done good financially, but more importantly, we have positioned the company well. I am pleased that we have the opportunity to take advantage of it as we move forward and look forward to continued growth and continued strengthening our teams, our people, our operations. And again, thank you again very much for participating in this annual shareholders meeting.