AGM 2013

Jan 17, 2013

Good morning, ladies and gentlemen, and welcome to the Annual Meeting of the Shareholders of The Scotts Company. I'm Jim Hagedorn, Chief Executive Officer and Chairman of the Board. Before we begin the formal portion of this meeting, I'd like to introduce other members of our Board of Directors who are with us today. Please stand and remain standing until the last person is called. Alan Berry, Adam Hamft, Steve Johnson, Jerry Jorgensen, Tom Kelly, Carl Kort, Kate Hagedorn Littlefield. Looks like we put all the tall guys upfront. Nancy Mistretta, Stephanie Schurn and John Shealy. Also present today is the Board nominee, Michael E. Porter of the Harvard Business School. Mike is not just a friend of the company, but widely considered one of the top also like to recognize long term former board member, Joe I'd also like to recognize long term former Board member, Joe Flannery, who recently retired from the Board after 25 years of distinguished service. Thank you, guys. Adam, Steve and Kate are standing for reelection Board this morning. Michael is standing for election to his 1st term on the Board. Next, I'd like to introduce all the members of the leadership team at Scotts Miracle Gro, a group that plays a vital role in the success of your company. Barry Sanders, President and Chief Operating Officer Vince Brockman, Executive Vice President, General Counsel, Corporate Secretary and Chief Ethics and Compliance Officer Dave Evans, Chief Financial Officer and Executive Vice President, Strategy and Business Development Jim Liske, Executive Vice President and Chief Marketing Officer Denise Stump, got a few more introductions to make before we move on. 1st, I'd like to introduce Bill Marsh from IBS Associates, who will serve as our Inspector of Elections. I'd also like to recognize some special guests from our outside legal and accounting firms. Steve Patterson of Hunt and Williams. Also in attendance are Tony Puckett and John McEwen from Deloitte and Touche. Please stand and be recognized. Thank you all for your attendance this morning. In addition, Tony and John on behalf of Deloitte will be available to answer any questions. With that, the business portion of the meeting has now come to order. Vince Stockman, our General Counsel it's okay. Vince Brockman, our General Counsel and Corporate Secretary will assume the Chair how are you doing, dude? Okay. We'll assume the chair to conduct the business as outlined in the proxy statement. Thanks, Jim. I'd like to add my welcome to the Annual Shareholders Meeting. This is the more formal part of the meeting where we address matters that are set forth in the proxy sent to our shareholders. When we have finished, I'll turn the podium back over to Jim to discuss results of operations and other matters related to our recently completed fiscal year. During the course of our discussions this morning, we may make forward looking statements regarding the company's future performance. I want to remind everyone that actual results could differ materially from what we discussed based on a variety of risk factors. We encourage investors to familiarize themselves with those risk factors, which are spelled out in detail in our Form 10 ks, which is filed with the SEC. In addition, copies of the company's 2012 annual report are available now outside and after the meeting for review by any shareholder or interested party. We can now proceed with the business of our meeting. First, with regard to last year's Annual Shareholders Meeting, I would like the record to reflect that the minutes of that meeting have been filed with the record of the company. Next, I would like to recognize our Senior Vice President of Investor Relations and Corporate Affairs, Jim King. Thank you, Vince. I would like to present the affidavit of Broadridge Financial Solutions pursuant to which Broadridge has confirmed that the notice of the meeting, the proxy statement, the former proxy and the 2012 annual report were timely mailed to the shareholders of the company. Thanks, Jim. The affidavit and proxy materials are directed to be filed for the records of the company. I'd also like to present the list of shareholders of the company's common shares as of the close of business November 21, 2012, the record date for this meeting. Thank you. The list of shareholders is directly Next, I'd like to offer the opportunity to any shareholder present who wishes to vote by ballot at this time to please raise his or her hand. Mr. Barsch, please present your report regarding the number of common shares present at today's meeting. There are present today either in person or by proxy, 57,943,766 shares, which is in excess of 94% of the voting stock. Thank you, Mr. Marsh. The proxy and substitution and ballots presented to the meeting are hereby ordered to be filed with the records of the company. According to Mr. Marsh's report, a quorum is present so that business may be properly conducted. As set forth in the proxy statement, the business of this meeting includes 4 proposals. Proposal number 1 is to elect 4 directors, each to serve for a 3 year term expiring at the Annual Shareholders Meeting to be held in 2016. Proposal number 2 is to conduct an advisory vote on the compensation of the company's named executive officers. Proposal number 3 is to approve an amendment and restatement of the Scotts Miracle Gro Company amended and restated 2,006 long term incentive plan to, among other things, increase the maximum number of common shares available to grant to participants under the plan. Proposal number 4 is to ratify the audit committee's selection of Deloitte and Touche LLP as the company's independent registered public accounting firm for the fiscal year ending September 30, 2013. Proceeding to proposal number 1, I recognize Denise Stump, Executive Vice President, Global Human Resources, for the purpose of nominating the 4 directors. Thank you, Vince. I hereby move that the following persons be elected as directors of the company, each to hold office until the annual meeting of shareholders to be held in the year 2016 and until their successors are duly elected and qualified or until their earlier death, resignation or removal. Adam Hance, Steve Johnson, Kate Hagedorn Littlefield and Michael Porter. Is there a second to the motion? I second the motion and move that voting for the election of directors be closed. Is there a second to the motion to close the voting? I second the motion. Voting to the election of directors is hereby closed. As a person appointed as an official proxy, I report that I have voted in accordance with the proxies received from shareholders. Mr. Marsh, may I have your report of the vote regarding the election of the 4 directors? Mr. Brockman, I report that each of the 4 nominees for election as a director received not less than 50,173,000 712 votes. I hereby declare that Adam Hamp, Steve Johnson, Kate Hagedorn Littlefield and Michael Porter have been duly elected as Directors of the company. The meeting will now proceed to consideration of proposal number 2. I recognize Denise Stump for the purpose of presenting the proposal. I hereby move that the compensation of the company's named executive be approved. Is there a second to the motion? I second the motion. Move that voting on proposal number 2 be closed. Is there a second to the motion to close the voting? I second the motion. Voting on Proposal Number 2 is hereby closed. As a person appointed as an official proxy, I report that I voted in accordance with the proxies received from shareholders. Mr. Marsh, may I have your report or the advisory vote regarding the compensation of the company's named executive officers? Yes, Mr. Brockman. I report that not less than 48,059,626 advisory votes were received for approval of the compensation of the company's named executive officers. I hereby declare that the compensation of the company's named executive officers has been approved. The meeting will now proceed to consideration of proposal number 3. I recognize Denise Stump for the purpose of presenting the proposal. I hereby move that the amendment and restatement of The Scotts Miracle Gro amended and restated 2006 Long Term Incentive Plan be approved. Is there a second to the motion? I second the motion to move that voting on Proposal 3 be closed. Is there a second to the motion to close the voting? I second the motion. Voting on Proposal 3 is hereby closed. As a person appointed as an official proxy, I report that I have voted in accordance with the proxies received from shareholders. Mr. Marsh, may I have your report of the vote regarding the amendment and restatement of Scott's and ERCOGO amended restated 2006 long term incentive plan. Mr. Brockman, I report that the amendment and restatement of the Scotts Miracle Gro company amended and restated 2,006 long term incentive plan received not less than 50,585,627 votes. I hereby declare that the amendment restatement of Scotts Miracle Gro amended and restated 2,006 long term incentive plan has been approved. The meeting will now proceed to consideration of proposal number 4. I recognize Dave Evans, Chief Financial Officer and Executive Vice President, Strategy and Business Development for purpose of presenting the proposal. Thank you, Vince. I hereby move that the Audit Committee's selection of Deloitte Touche LLP as company's independent registered public accounting firm for the fiscal year ending September 30, 2013 be ratified. Is there a second to the motion? I second the motion to move that voting on Proposal Number 4 be closed. Is there a second to the motion to close the voting? I second the motion. Voting on the Proposal Number 4 is hereby closed. As a person appointed as an official proxy, I report that I voted in accordance with the proxies received from shareholders. Mr. Marsh, may I have your report of the vote regarding the ratification of the audit committee selection of Deloitte and Touche LLP as the company's independent registered public accounting firm. Mr. Brockman, I report that the ratification of the audit committee's selection of Deloitte and Touche LLP as the company's independent registered public accounting firm for the fiscal year ending September 30, 2013, received not less than 56,283,072 votes. I hereby declare that the Audit Committee selection of Deloitte and Touche LLP as the company's independent registered public accounting firm for the fiscal year ending September 30, 2013, has been ratified. Mr. Chairman, this concludes the formal portion of our meeting. Well done, Vincent. Thank you, sir. I want to pick up now by thanking you guys again for being here and for your support. I also want to thank you for continuing to give me and the entire management team the privilege of directing the company, your company. We understand perhaps better than anyone the unique connection our business makes with consumers every day. While our annual meeting tends to be a bit of a formality, I still consider it an important event, an opportunity to discuss the state of our company and our prospects for the future. It also allows us to talk about the unique qualities of our business. The lawn and garden industry is like any other consumer business. Only here can we help consumers connect with the earth and nurture their backyard to transform it into their own special place. That philosophy is embedded in our vision statement and is part of what makes Scotts so special. But our mission goes beyond that. It also includes providing our shareholders with the rate of return that you deserve. While I continue to feel confident in our business and the plans we have in place, I also know that our results in each of the past 2 years have been disappointing. And we can do better. And you should accept no less than that. And you have my commitment that we will do better. A year ago, I used this meeting to share with you a singular goal for 2012, to grow the lawn and garden category. Bet in 2012. We increased our advertising budget in the United States by 50% and decided to absorb $70,000,000 in higher product costs instead of passing them on to an already stressed consumer. We knew these decisions would essentially cap our earnings last year, but we believe we could still report earnings that were in line with what we saw in 2011. So what happened? On many fronts, we succeeded. We did drive unit volume and we did gain market share. The combination of our advertising efforts, our sales force, new product innovation resulted in a 2% increase in consumer purchases of our products in dollars. Measured in units, the increase was 4%. And when you exclude commodity and private label, looking just at our branded products, unit volume was up 6%. Our market share improved by nearly 200 basis points as we posted gains in nearly every category. But these improvements, as good as they were, were not good enough. After a strong start to the season, the economy and the weather had a major impact on consumer behavior in May June. Those facts coupled with a reduction of retail inventory levels meant that our sales for the year were flat. The impact of lower than expected sales, higher than expected costs and product mix resulted in a 280 point decline in our gross margin rate. And that resulted in earnings of 2 point $1 per share, roughly $0.70 short of our plan and at a level consistent with 2,000 and 8. Some shareholders and analysts have argued that we set our expectations too high in 2012. In hindsight, it's hard to disagree. Some have also questioned whether the changes in the execution of our strategy from 2011 to 2012 and from 2012 to 2013 are too much change over too short a period of time. It's an appropriate question. Whether you agree or disagree with the answer, let me explain. I want to start by stressing that our strategy to drive our business to be more consumer focused and less retailer focused has not changed at all. How we execute against that plan has changed given the economy and other factors. I also want to say that since the merger of Scotts and Miracle Gro in 1995, this has been a company that's been hardwired for growth. And we make no apologies for that. It's in our DNA to fight for growth to invest behind our brands and to continue to adjust our plans to perfect a winning formula. With that said, some things are just beyond our control. In this environment, the consumer is fragile and constant choppiness of the economy and consumer behavior makes this reality even more challenging. Simply put, it's a damn tough environment right now. When things line up right, consumer confidence improves and they open their wallets. But whether it's fuel prices, the stock market or the nonsense in Washington, when consumers get stressed today, they shut down. As for Scotts Miracle Gro, for years we felt we were largely immune to a negative economy. But in the last year or so, the economy has definitely impacted the lawn and garden industry. In 2012, our sales moved up and down with broader retail trends. We weren't driving foot traffic, we were part of foot traffic. While this is a new reality for Scotts Miracle Gro, it really isn't different from other discretionary categories. Seeing what they've been seeing for several years. So as a result, we are budgeting for no unit volume growth in our core business in 2013 and perhaps 2014 as well. If you think we're being too conservative, I hope you're right. But holiday spending was up only 0.5% this year, hardly a strong performance. And as we prepare for the peak weeks of lawn and garden season, the Congress and the White House are bickering again over the economy, the debt ceiling and the credit rating of the United States is once again being threatened. None of us here know what will happen with the economy this spring, but it's not far fetched to see a scenario in which the consumer gets spooked again. If you believe in media reports over the last week, even Apple, which has defied economic gravity for years, is beginning to feel the pinch as consumers pull in their horns. The good news for shareholders and associates and business partner of Scotts Miracle Gro is that we can show meaningful improvement in earnings and cash flow in a low growth environment. So let me briefly explain the route we're taking. I want to start by stressing that we believe the fundamentals of our business remain strong. Our research tells us that while there may be structural issues with the consumer, there are not structural issues with our brands, which continue to outperform the industry and are some of the strongest in the world. Our research also tells us our category and our brands remain relevant with both younger and older consumers. It tells us they continue to love gardening and that they want to participate in the category. But even with those facts, our industry is not in a growth mode right now. As we benchmark ourselves against other discretionary companies, it's obvious we're not alone. In nearly every category, driving unit volume in the United States has been pretty hard lately. So we have a choice. We can continue to make big bets and hope for a different outcome or we can embrace the reality of the marketplace and develop a more conservative plan. We've chosen the latter. And I'm confident in saying the entire management team is convinced that this is the right move. In fact, our team has been working over the past several months on a more conservative plan that we believe is appropriate for at least the next 2 years. During that time, we believe the consumers in both the United States and Europe will continue to be under stress. As a result, we believe that economic growth will be modest. Over the past several months, we've created a cross functional team that worked toward an effort that we call Project Max. And as part of that effort, we reviewed every part of the organization, every business unit, every support function and every dollar that we spend. To drive an improved level of financial performance in a low growth environment, we focused on 6 work streams: sales optimization, marketing and media, product cost out, pricing and trade, cash flow improvement and organizational effectiveness. The outcome of this ongoing effort gives us greater confidence in these initiatives, some new and some that had already been in place to drive gross margin improvement, to reduce SG and A, to improve cash flow and strengthen the overall enterprise. In reducing our expenses, we're taking a balanced approach. While the environment is a tough one right now, we still must invest for long term growth. And so I'm not interested in removing work from the organization only to reinvest in those same areas 2 years from now. That's why we've got to make smart changes to keep costs from creeping back into the system. And I believe that our team has struck the right balance. For example, here are some of the changes we're making. We recommitted to our regional operating model, but reduced expenses by moving from 4 regional offices to 3. We've made adjustments to our field sales force to reflect operational changes implemented by some of our largest retailers. We've made changes in our marketing spending with the decision to trim back from the levels of advertising we saw in 2012, but remain committed to supporting our brands. The investment in 2013 will be substantially higher than it was in 2011 and will result in the 2nd highest level of spend ever. We're also in the midst of a reexamination of our international business with an understanding that the current cost structure of Europe is simply not sustainable. We're also closely watching corporate expenses like consulting and other outside services. As I previously stated, we're budgeting for flat unit volume in our core business this year. Modest price increases in the core business coupled with the continued good performance of Scotts Lawn Service should allow us to see company wide sales growth of 1% to 3% in 2013. That level of growth, coupled with the outcome of Project MAX should allow us to drive earnings in a range of $2.50 to $2.75 per share this year. We also expect operating cash flow of at least $250,000,000 By year end, we expect our leverage ratio to decline below 2.5 times, giving us the flexibility to appropriately fund capital needs of the business and return cash to shareholders. Back to the question about the changes we're making in executing our strategy in 2013. I want to make one final point. Sure, we might be able to grow unit volume and take more share by running the same game plan as last year. But growth for the sake of growth is not what we're after and I don't think that's what our shareholders want either. In fact, we've had direct conversations face to face with shareholders who collectively own nearly 75% of our shares. Each of them has been supportive of the approach we're taking. They want us to do exactly what we're trying to do, improve the profitability and cash flow of this business and take other actions that drive total shareholder return. Some shareholders have asked about the impact of back to back years of disappointing results on the company's culture and associate morale. Another fair question. Indeed, it's hard for an organization to succeed if associates are not engaged and confident in where we're going. So without warning or prompting or talking points to help them give the right we walked up to dozens of our associates over the last few weeks and asked them how they felt about the business. Frankly, we weren't sure what they'd say, but we were pleased with what we heard. And let me share a little bit of that with you right now. Krishna speaking, I think we are on the right course. We have we're a much more nimble organization. And I think there's a different mindset that's being created here? Every plant is like its own little family. I mean, for example, Inlee City, one of the oldest plants, probably one of the plants with the most senior associates and they care about what they do. Scotts Miracle Gro is a challenging environment. It's great to be a market leader. But as a market leader, we have to kind of be ahead of the curve and we have to lead the category. In the environment that we're in economically right now, there's always challenges to keep the cost down, keep your consumer engaged. I mean, we don't want to price people out of the market. So that's always going to be a challenge. We have a lot of smart motivated individuals that work together and we're constantly bringing new ideas to one another. We're reaching out across functions to really think about how we can make the business better. If you're always going in one direction, you don't exercise kind of muscles that actually force you to go in different directions. So if you look from the outside in, I view Scotts as a very dynamic company and very fast paced. So, while we may be a $3,000,000,000 company, I think at times we operate very much like a $30,000,000 company because it requires an enormous amount of entrepreneurship and an enormous amount of personal drive. People stay at Scotts in my experience and I'm going on my 7th year here because they like a fast paced environment where there are strong core values, but there's also a lot of focus on creative entrepreneurship. I think that's fundamentally why I like being here and I think it's fundamentally why people who have been here a long time have continued to stay. We prepare for the future by really reaching out and understanding what's happening. It's about knowing kind of the macro environment as well as the micro environment of our categories. It's using the data that we have and continually getting smarter about our own business and about the world around us. We need to continue to support the consumers who have supported our products for so long and we need to continue to reach them and show them why our products are still better than the competition. I think historically, we viewed our role as we grow plants twice as Now that's a real benefit for the plant. We hadn't thought about what do we do for consumers. So how do people grow when they use milk grow? So the more we can keep the consumer central, I think we have a much more vibrant business and the opportunity to grow the business. Well, one thing I've always said is I never get bored coming here every day. Now sometimes that's not all friendly work. It's a lot of hard work. But you come in every day and it's not the same old rat race and figuring out what's going on. There aren't new developments. There are new challenges. There's new ways of doing things and new ways of improving things. And I've been here 23 years and that's a long time to not get bored about anything. Over my career, I've had the opportunity to work in a lot of different organizations and truly the sky's the limit for what you can do here. I think that's the beauty of our organization and I hope that's something that never changes. That was pretty cool. That was random and unscripted. I've been walking the halls of this company for 17 years. After the merger in 1995, we had discussions about moving the corporate headquarters to New York where Miracle Gro was based. But those conversations were never really very long lived. That's because there is something about the culture of this company that's palpable. And you have to spend time here in Marysville to understand that. Our associates love the company. They're inherently optimistic, they believe in our future and they're just as committed as the management team to driving profitable growth and enhancing shareholder value. The power of our people, the power of our brands, the power of our market position, the power and importance of the lawn and garden category to both consumers and retailers means this is a company that should not be operating with a gross margin of 34%. This is a company that should be operating with a gross margin of 40%. This is a company that should not be operating with a 9% operating margin. It's a company that should be operating at a 15% operating margin. And so this is a company that's putting a line in the sand to make strides against those goals. We're going to leverage our cost structure with an eye toward margin improvement and total shareholder return. I'm confident in the plan we've put in place and I believe that shareholders will begin to see strong improvement starting in the second half of this year. I want to close this message in keeping with how I've done so in the past and that's to talk a little bit about our history. This year, we'll celebrate the 145th anniversary and some within our ranks have already been discussing the ways we should celebrate the 150th anniversary of The Scotts Miracle Gro Company. Companies don't exist 150 years in this ever evolving global economy by taking a short term approach. You succeed by balancing the near term challenges and the opportunities that are farther down the road. We're committed to growing this business, to growing our people and to supporting our future. I'm convinced that we're striking the right balance. I'm convinced that we will bequeath to the next generation of leaders and shareholders an even stronger company than the one we inherited. On a final note, there's a person in the room who understands the great history and legacy of this who's been a member of the Board of Directors for 25 years and who's officially stepping aside after this meeting. With no disrespect to any of the current or former directors of this company, I consider Joe to be the strongest director Scott's has ever had. As a former CEO himself, he understands the role a Board should play in providing Joe's service to this company is without equal and the wisdom and the counsel he has shared with me personally over the years has helped me evolve and grow as Chief Executive Officer. On behalf of every director, associate and shareholder of Scotts Miracle Gro, I want to thank you, Joe, for everything you've done for us. Your presence in the boardroom will be deeply, deeply missed. So I want to thank everybody for being here this morning. And if there's any questions, I'd be happy to take them. I think a hand for Joe. I thought you weren't going to ask any questions, Rob. My younger brother, Rob. Kind of a tough one though. Well, thanks. But it's jobs for people who are coming back from Afghanistan and Iraq. And we're going out, finding them, recruiting them, getting them before they fall between the cracks and then bringing them in. I wish we were hiring more people. And I wish the economy was better that would justify that. And if I had sort of one thing to say to the President of the United States, I'd be saying that, which is we got to grow this economy. That all that being said, I think given a choice of hiring somebody who's a veteran compared to someone who's not, with me they would have an edge. I think a lot of you know my youngest son heads off to the Army to go to Ranger School on February 25th. So, and I'm a veteran as well. And I know your boy is in the Marine Corps. So I would say we're biased toward the military and I know Barry feels the same way. And I applaud Walmart for taking the move they did, which is any veteran coming out who wants a job at Walmart is going to get it. So any other questions to you all? Yes, sir. A couple of product questions. Occasionally in the magazines, I see reference to the Roundup Tolerance turf grasses. Where are we or is that a continuing project? Can I ask you a question? Sure. You for or against? Oh, I'm for. Okay. So I just want to know the audience I'm talking to. This company and I'm sure I'm going to get in trouble. We submitted almost a dozen years ago an application to deregulate Roundup Ready Turfgrass where the only difference was the same gene that's in most of the food you eat. Definitely was not a weed issue and that permit, that application has never come out of the United States government after more than a decade without any evidence that there's a problem with the product. Effectively, it destroyed our commercial relationship with Monsanto to exploit their genetic library for consumer lawn and garden. While I think a lot of people maybe would have abandoned ship at that point, we've continued to do research and development on ways that would not require a deregulation petition from the United States government. And I think Scotts is one of the few companies in the entire world to develop a very robust GRAS portfolio that will be, we think, ready for the consumer in the next couple of years. We've gotten an opinion from the United States that it doesn't require a deregulation petition. It does not require us to have a relationship with the big ag companies who I think are sensitive to the politics of biotech. And it gives consumers a grass that grows slower, is highly requires significantly less water. And so this is a major innovative step forward that Barry and his team have continued to fund and we believe that is an important product for the future of the company and for the industry. 2nd question, occasionally I go around and I see Whitney Farms products just scattered around. Is that going to be developed more or? I'm looking at the Chief Marketer and I couldn't quite tell what signal he was giving me, yes or no. Let me talk a little bit about what Whitney Farms is about. Okay. Whitney Farms was a brand that we acquired when we did an acquisition some years ago on the West Coast. It's a brand that's really focused on natural and organic lawn and garden. While the natural and organic lawn and garden products are not a big number today, We believe a little bit like non regulated biotech that it's an important thing going forward for us to continue to participate in. And as part of figuring out how this company can progress in natural and organic products, Whitney Farms is today an important part of that. But it's one piece of an effort that I think we probably all would agree is taking too long, but isn't important, as we look to engage with women and younger homeowners the company that I know Barry and Jim share, the company that I know Barry and Jim share and Whitney Farms is a piece of that. Frankly, I couldn't tell you if Whitney Farms will be a major part of the business 5 years from now, but natural lawn and garden products will be an important part of this company. And as we figure out how to do it properly, I think that brand will continue to exist. Did I say anything wrong, Jim? No. I think the focus Hold on just because we have folks on the phone. You're correct that the focus is on that category. And on the brand, we have decisions to make that you need to be briefed out on the next year. So which brands are we going to pursue most heavily in that category? Anything else, sir? Thank you for asking the questions. Anybody else? All right. Yes, sir. Sorry. I have a question that I'm My son is an SVP pilot, so you're the man. I have a question that I'm formulating. We have a foundation that works in the inner city with the homeless. And we see a lot of attempts by Scotts to fund neighborhood gardens, I believe. We also appreciate your area at the Franklin Park Conservatory. How or what can you do to force the products into the inner city where people also need to have that recognition of value? What are you doing I think is the question I have. Well, I guess I'd start by saying as much as we can. Everybody has like memories that are important, the things that you remember. This goes back early days. My brother was running public relations when Miracle Gro was a private company. We had a very significant relationship in New York with the Green Gorillas. And at the time, I think many people in spite of the I think things for a lot of poor urban people are not much better. There was a lot of abandoned buildings, especially in the New York Metro where a lot of abandoned buildings that have been taken over and were being misused by and infested by drugs and to this outfit called the Green Gorillas. And I know Rob and I were pretty involved in to see what a community can do with a derelict piece of land and a little bit of help to sort of develop the garden that not only puts the land to productive use, but provides output to help feed folks is just a really wonderful thing. And we have a I think it's Grow 1,000. I think we're trying to get up to 1,000 community gardens. Would I like it to be 10,000? Yes. I don't know that Jim is going to get the funding out of Barry for 10,000. So I guess I'd underline, which is to thank you for the work you're doing, but also say that the effort for us to do as much as we can, and community gardens are hugely important. And I think Barry has led an effort with a coalition of urban mayors that I mean I think Barry was in some pretty scary neighborhoods down in I've always had Baltimore. But we've been doing them sort of all of the United States and it's just unfortunately I wish we had 5, 10 times as much money to put to it. Any other questions? All right. Listen, I want to thank everybody for coming out here. It's actually great to see some civilians. So you're more than welcome to join us. And I meant what I said in that speech. We put a lot of time into it. So thank you all.