Mission Produce, Inc. (AVO) Q3 2026 Earnings Report, Transcript and Summary

Good afternoon, and welcome to the Mission Produce Fiscal Third Quarter 2026 Conference Call. [Operator Instructions] Please also note today's event is being recorded. At this time, I'd like to turn the call over to Andrew Pearson, Vice President of Investor Relations and Strategy for Mission Produce. Sir, please go ahead.

Thank you, and good afternoon. Today's presentation will be hosted by John Pawlowski, President and Chief Executive Officer, and Bryan Giles, Chief Financial Officer. The comments during today's call contain forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts are considered forward-looking statements. These statements are based on management's current expectations and beliefs as well as a number of assumptions concerning future events. Such forward-looking statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from the results discussed in the forward-looking statements. Some of these risks and uncertainties are identified and discussed in the company's filings with the SEC. We'll also refer to certain non-GAAP financial measures. Please refer to the tables included in the earnings release, which can be found on our investor relations website, investors.missionproduce.com, for reconciliations of non-GAAP financial measures to their most directly comparable GAAP measures. I would now like to turn the call over to John.

Thank you, Andrew, and good afternoon, everyone. Our third quarter results demonstrate the strength of our platform and the team's focus on delivering results. Adjusted EBITDA of $32.4 million exceeded the high end of our expectations, supported by solid marketing and distribution performance, stronger than forecast results from our International Farming team, and early progress on the integration of Calavo. This was an extremely important quarter for Mission. It was our first reporting period following the completion of the acquisition, and it provided an early look at the capabilities of the combined organization. While we are still in the initial stages of integrating, the progress to date reinforces our confidence in the strategic and financial merits of the combination. I want to start with the avocado category because the strength of consumer demand provides important context for both our results as well as the opportunity ahead. Last quarter, we discussed how a historically high supply, low price environment brought new households and consumption occasions into the category. This follows a historical pattern in which lower prices expand the consumer base and support sustained demand as pricing normalizes. That dynamic started to materialize in the third quarter. U.S. retail avocado volume grew approximately 9% year over year, even as the average retail price increased approximately 15% sequentially. Furthermore, U.S. avocado consumption remains at record levels in '26, trending above 10 pounds per capita year to date, 12% higher than last year, while household penetration has increased approximately 50 basis points year-to-date compared to last year. This is an encouraging progression from what we discussed last quarter. The low price environment helped introduce more consumers and occasions to the category, and volume yet remained strong as prices recovered. This supports our view that the category expansion we saw in the first half is creating larger and more durable demand for the future. Avocados have evolved into an important staple for consumers. The category aligns with lasting preferences around fresh food, nutrition, convenience, and value, while the product's versatility supports consumption across multiple meals and occasions. Those qualities provide a strong foundation for continued category growth, both in the United States as well as in international markets that remain at relatively earlier stages of development. Our job is to translate those category tailwinds into profitable growth. Year-to-date, for Mission's legacy business, we increased our estimated U.S. retail market share by approximately 60 basis points from last year, reflecting deeper customer relationships and our ability to reliably support programs through changing supply conditions. Importantly, market share is a key measure of whether we are winning, but we will not pursue it at any cost. Volume and per-unit margin must work together. Our objective is to deepen category leadership while maintaining the commercial discipline required to translate growth into stronger earnings and cash flow. During the quarter, we sold approximately 253 million pounds of avocados, an increase of 38% from last year, reflecting the addition of Calavo and higher legacy Mission volume. As California and Peru became more meaningful sources, our origin mix improved from Q2, supporting both customer continuity and a sequential recovery in per-unit margins. This improvement is a great example of the value our multi-origin sourcing model brings. In the second quarter, delayed California and Peru harvests temporarily limited that flexibility, but in Q3, our teams were better able to balance fruit from Mexico, California, and Peru, matching available sizes with customer demand, and directing the product toward the markets and programs where it could create the greatest value. Turning to Calavo, our first several months of ownership have reinforced our original investment thesis. The combination expands our customer reach, sourcing flexibility, Mexican and California packing capacity, as well as participation in our Prepared Foods category. It provides more ways to serve customers, more flexibility to align fruit and sizing with demand, and more opportunities to remove costs from the overall supply chain. We are also bringing together two organizations with complementary strengths. Mission contributes a global sourcing and distribution platform, vertically integrated farming operations, category management capabilities, and established international infrastructure. Calavo adds customer relationships, additional North American sourcing and packing capabilities, and an established position in the value-added Prepared Foods space. For customers, the opportunity is to create a more reliable and capable supply partner. The combined company has more fruit, more facilities, and more options for responding when supply conditions change. Over time, we believe this should help us improve our fulfillment, increase network utilization, reduce unnecessary handling and external sourcing costs, and ultimately provide customers with a broader set of products and services. At the time of the transition announcement, we identified at least $25 million of annualized cost synergies achievable within 18 months of close, with meaningful upside potential. Following our integration work so far, we are increasing that estimate to more than $30 million, primarily reflecting higher-than-anticipated SG&A savings and network efficiencies. We are already moving fruit across the combined network, reducing reliance on higher-cost external sources and improving our inventory positioning. We also discontinued operations at the Calavo Temecula facility and are advancing broader distribution, freight, technology, procurement, and organizational initiatives. The real measure of integration is not simply whether an action has been initiated. It is whether that action ultimately produces sustainable savings, better customer service, and stronger operating performance. We are applying that standard to the work underway and remain focused on maintaining business continuity as we make changes. We expect synergies to begin contributing to financial results in Q4 and build more meaningfully throughout fiscal 2027. We recognize that integration requires disciplined execution across many functions, and we will continue to update you on our progress. Prepared Foods is an important part of the strategic opportunity. It extends Mission into convenient, value-added avocado products and gives us an established platform which allows us to participate in a broader avocado category. The business operates differently from Fresh Avocados, with different pricing structures, inventory requirements, as well as manufacturing considerations, but it is closely connected to our core sourcing expertise and customer relationships. Our immediate focus in Prepared Foods is straightforward: Maintain customer service, improve operating consistency and throughput, and build a solid foundation for profitable growth. Over time, we believe Mission sourcing capabilities and customer reach can complement the Calavo team's manufacturing expertise and product portfolio. We look forward to discussing this opportunity in greater detail at our upcoming Investor Day. Within the International Farming segment, third quarter performance exceeded our expectations, supported by stronger average sales returns. We expect exportable production from our own Peru farms of 120 to 130 million pounds for the harvest season, compared with 105 million pounds last season, with a greater portion of this year's crop expected to be sold in the fourth quarter. Our vertically integrated farming operations remain an important differentiator. They provide greater visibility into supply and quality, support customer programs during key seasonal windows, and give us the flexibility to allocate fruit across both North America and Europe, as well as Asia and other markets based on customer demand and relative returns. We expect our blueberry harvest to begin contributing more meaningfully as we move into its seasonally stronger quarters. Newer acreage continues to mature, and we remain focused on improving yields, per-unit costs, and returns from the infrastructure we have built in Peru. To close out the year, our priorities are straightforward: Protect profitable marketplace momentum, deliver the seasonal Peru and blueberry contribution, integrate Calavo thoughtfully, convert identified synergies into measurable financial results, and remain disciplined in the use of our capital. We are reaffirming our second-half outlook with a meaningful seasonal increase expected in the fourth quarter. Bryan will provide the financial details and the principal drivers supporting that outlook. There is considerable work in front of us, but we exited Q3 with a larger category, stronger market positions, a broader and more capable operating platform, and increased visibility into the value available from the Calavo integration. Next month, we will host our Investor Day in New York. We will provide a more complete view of the company we are building, how each part of the platform fits together, the priorities that will drive our next phase, and the financial framework we will use to measure our progress moving forward. I want to thank the Mission and Calavo teams for their focus and commitment during an important period of change. I also want to thank our growers, customers, and partner for their continued trust. With that, I will turn the call over to Bryan.

Thank you, John, and good afternoon to everyone on the call. Fiscal '26 third quarter revenue totaled $450 million, an increase of 26% from the prior year period. Avocado volume increased 38%, reflecting the inclusion of Calavo and higher legacy Mission volume. Average per unit avocado sales prices were 9% lower versus the prior year, consistent with the higher industry supply environment we've discussed throughout the year. Gross profit was $44.7 million compared with $45.1 million last year, while gross margin decreased 270 basis points to 9.9%. Lower average selling prices reduced International Farming gross profit, while Marketing and Distribution benefited from Calavo's post-acquisition contribution, partially offset by integration-related costs and purchase accounting adjustments. SG&A expense, excluding transaction advisory and integration costs, was $31.6 million, compared with $24 million last year, primarily reflecting the addition of Calavo's cost structure. Transaction advisory and integration costs were $12.6 million and included third-party legal and advisory fees, severance and retention expenses, and other acquisition and integration costs. Third quarter GAAP results also included $5.2 million of acquired inventory step-up amortization, $1.5 million of acquired intangible amortization, and $6.1 million of financing, tax, and supply chain optimization expenses associated with the transaction and integration. The inventory step-up increased cost of sales as the acquired inventory was sold and is temporary in nature, while the intangible amortization increased SG&A. Net loss attributable to Mission Produce was $6.5 million, or negative $0.08 per diluted share, including transaction and integration costs, purchase accounting effects, and higher interest expense related to the acquisition. Adjusted net income was $15 million, or $0.18 per diluted share, compared with $18.2 million, or $0.26 per diluted share last year. Adjusted EBITDA was $32.4 million, compared with $32.6 million last year, and exceeded the high end of our $28 million to $32 million guidance range. The outperformance primarily reflected stronger than anticipated International Farming results and solid performance from Calavo during the post-acquisition period. Marketing and Distribution segment sales were $414.3 million compared to $344.1 million last year. The increase is driven by higher avocado volumes sold, both from the Calavo contribution and the legacy Mission business, partially offset by lower average selling prices. Segment adjusted EBITDA was $24.7 million compared to $20 million last year. The increase primarily reflects higher gross margin attributed to the inclusion of Calavo's post-acquisition results. Last quarter, we discussed the temporary fruit size imbalance in April and the difficulty of operating in a predominantly single-origin sourcing environment. Those conditions improved as California and Peru became more meaningful parts of the Q3 supply mix, reporting sequential improvement in per unit margins from Q2. Prepared Foods is now a separate reportable segment following the Calavo acquisition. For the post-acquisition period, the segment generated sales of $15.5 million and adjusted EBITDA of $0.2 million. Because Q3 includes only the post-acquisition period, these results should not be viewed as a full-quarter run rate. Our near-term focus is operating consistency, service, and throughput, and we expect to discuss the segment's attractive longer-term opportunity at our Investor Day. International Farming segment sales were $45.8 million compared with $49 million last year. Third-party sales were $14.8 million, and affiliated sales to Marketing and Distribution were $31 million. Segment adjusted EBITDA was $7.6 million compared with $12.1 million last year. Year-over-year decline primarily reflects lower average avocado sales prices. However, adjusted EBITDA results exceeded our expectations as average sales returns were stronger than we expected during the quarter. As discussed last quarter, sales from our owned Peruvian production are weighted toward Q4 this year. We expect exportable production of approximately 120 to 130 million pounds, compared with 105 million pounds last season, of which approximately 53 million pounds has been sold through at the end of Q3. International Farming remains highly seasonal, with the majority of annual adjusted EBITDA generated in the third and fourth quarters. The allocation between periods can shift based on harvest timing, vessel schedules, destination market pricing, and customer sales timing. That dynamic is central to the expected sequential increase in consolidated adjusted EBITDA in Q4. Blueberry sales were $5.4 million compared with $4.5 million last year, while segment-adjusted EBITDA was negative $0.1 million compared with positive $0.5 million last year. Most sales and profitability for this segment are concentrated in the fourth and first quarters. As John noted, we are increasing our annualized synergy estimate from at least $25 million to more than $30 million. The increase primarily reflects higher-than-anticipated SG&A cost savings and network efficiencies identified since closing. The broader opportunity includes organizational costs, distribution center optimization, freight, sourcing, packaging, testing, and vendor expenditures. We expect synergies to start contributing in Q4 and build more meaningfully throughout fiscal 2027. We incurred $12.6 million of transaction advisory and integration costs in Q3 and expect additional integration costs as facility, technology, organizational and process changes are implemented. These costs will vary by quarter based on the timing of the underlying actions. Cash and cash equivalents were $47.1 million at July 31st. Total long-term debt, including the current portion and net debt issuance costs, was approximately $400.3 million at July 31st. Interest expense increased to $5.1 million from $2.4 million last year, primarily due to the incremental debt used to fund the transaction. Net cash used in operating activities was $25.9 million through the first nine months, compared with cash provided of $21.4 million last year, primarily reflecting lower income, driven in part by transaction advisory and integration costs, and working capital requirements. We expect a meaningful seasonal improvement in Q4 as the Peru avocado crop is sold through and blueberry activity increases. Capital expenditures were $32 million through the first nine months, compared with $39.8 million last year. For full year fiscal 2026, we continue to expect spend of approximately $45 million, inclusive of planned spending associated with the legacy Calavo business. During the first nine months of our fiscal year, we repurchased $9.4 million of Mission common stock. Our near-term capital allocation priorities remain focused on integration support, maintaining appropriate liquidity, reducing debt, investing selectively in high return opportunities, and returning capital to shareholders through share repurchases when appropriate. Turning to our outlook, we are reaffirming the second-half adjusted EBITDA range of $84 to $88 million provided last quarter. With third quarter adjusted EBITDA of $32.4 million, we expect fourth quarter adjusted EBITDA of $52 to $55 million, including a full-quarter of Calavo. The sequential increase is expected to be driven by a greater concentration of sales from our owned Peruvian crop, the seasonal ramp in blueberries, a full-quarter of Calavo, and improved avocado margin dynamics. We also expect a small amount of synergies to begin contributing in Q4, building more meaningfully through fiscal 2027. Our focus is on delivering the fourth quarter plan, converting integration actions into measurable savings, generating cash, and reducing leverage over time. That concludes our prepared remarks. Operator, please open the call for questions.

[Operator Instructions] Our first question is from Mark Smith with Lake Street Capital.

Hi, guys. I wanted to dig in first a little bit more on the annualized synergy target. Now, more than $30 million up from $25 million. Bryan, I know you talked a little bit about this, but just what specifically kind of drove this upside as we look at SG&A headcount, network logistics efficiencies, procurement, et cetera. I would love to just get more details on kind of that delta.

Hey, Mark, this is John. Good to hear your voice. We're going to plan on getting a lot more depth and coverage on this when we're together in New York in a couple of weeks here. So looking forward to seeing you there. But in regards to where we're at today, really it came down to the fact that the two organizations over the first five to eight weeks of working together started to really kind of put rubber to the road in regards to where the opportunities were, finding incremental transportation synergies, finding opportunities that the way we were co-operating our facilities in our Mexican packhouses, right? Just things that we weren't really able to get into the proverbial weeds on when we were doing due diligence. But once we really opened those doors and started to have detailed conversations in regards to where things could come together, we started to see things in the $100,000, $200,000, et cetera range. And adding all of that up specifically around some of our operating efficiencies that we saw, some additional SG&A opportunities as we looked across our network, understanding exactly how our boards came together in regards to thinking about the way two public companies operate. The numbers started to add up fairly quickly, and we feel confident that moving from that $25 million to $30 million is the right thing to do for now.

Perfect. And then just looking at Peru avocado production here, you guys have sold, it looks like moved less than half of that already. Just kind of one more insight into kind of where your confidence comes from just on moving this remaining volume at acceptable margins, just given kind of what sounds like still an oversupplied market.

Yes. Well, a couple of things. Number one, we had probably the best year in regards to productivity and total output out of our Peruvian farms that we've ever had. So -- we are incredibly proud of the work that's been done by the teams and the farming organizations down there to ensure regardless of condition, regardless of what was going on with the rest of the industry, we produced. When we saw the rest of the Peruvian market moving their estimates southward, we maintained and/or moved our estimates northward. So we felt really good about how we competed from a productivity standpoint. And then secondly, we spent a lot of time over the last 18 to 24 months ensuring that we had a very good quality network in regards to where we could sell that fruit. We spent significant time building and looking at opportunities all over Europe, all over North America, even into South America. And the extensive network that we had built, which is really built on top of what even as extensive as we were 1.5 years ago, we added a significant number of capabilities, particularly in Southern Europe that we didn't have just a year ago today. We sold a record number of containers into an outlet that maybe 2 years ago, we had 0 sales into. It's public knowledge. I think we were the #1 importer of Peruvian avocados into Europe during this season. So we had an excellent team effort in making sure we have the right number and quality of sources to move that fruit. And then on top of that, we're sitting here in September at this particular time, and we know where our programs are. We know what we've been able to execute against those -- all those things together lead us to the confidence that we have in our fourth quarter.

Mark, I'd add one other thing on kind of the lift that we're seeing. Everything John said about volume and price markets, I think, is accurate. Also, it's probably worth sharing that just because of the way the mix of fruit that came off the trees balanced out, a lot of our lower-yielding farms, we saw some disparity between yields on our different farms this year. And the fruit that sold through in our Q3 tended to be higher-cost-basis fruit because a lot more of it came from the lower-yielding farms whereas Q4 we're leaning more heavily into our higher-yielding farms this year so that's going to help give us a little bit of a lift in the fourth quarter as well.

Our next question is from Gerry Sweeney with Roth Capital Partners.

I'm going to start with international just because that's where you guys ended up. But obviously fourth quarter is going to be the bigger quarter as you guided towards. I'm just curious with the fruit, is this picked and how much visibility you have on it? I imagine it's probably off the trees and moving through packing at this point, so pretty solid visibility. Is that a fair assumption?

That's a very fair assumption. We are approximately 1 week away from being fully wrapped up with that harvest. So all of the numbers that we're putting out there in regards to our productivity and our yields is, I don't want to say 100% in pocket, but pretty much in pocket. And in regards to where that fruit is heading, we have very good visibility into all of the outlets and all the allocations that have been completed in regards to distribution of that fruit over the next three to four weeks.

Got it. And then also, you touched upon it in the last questions with Mark. 120 to 130 million pounds step-up from last year. I know Mother Nature can be fickle from year to year. I'm just curious, how much of that jump was good weather versus operating improvements at the farms, if you could break that out.

Yes, I would it's -- that's a tough one because it's hard to put exact percentages to what occurred from a weather standpoint. But I would argue that we weren't thrilled with some of the productivity last year, and the teams did an excellent job from a recovery standpoint and an execution standpoint on delivering the right nutrition to those trees to allow them to deal with whatever weather came their way. We had pretty good weather for the first six to seven months of this season in regards to growing conditions and flowering conditions, et cetera. We've been talking about El Niño related types of weather activities probably for the last six months. We have seen some hotspots and some spells, but our fruit and our trees have held up very well to some of those challenges, leading to our ability to hit some of the predictions, the forecasts that our teams put out there earlier in the year. And I would argue that some of the challenges we've seen in regards to the rest of Peru and some of the movement downward of some of those forecasts and when we didn't move downward would indicate that whatever farming we're doing, whatever steps we're taking is helping us to perform a little bit better than the rest of the market.

And Gerry, I would just add on to that. In 2023, when we started to see El Niño conditions, we started to see an impact on our farms the year that it happened. So 2024 was really the year that we saw significantly lower production, but we had an abrupt end to our 2023 harvest season because the trees weren't able to handle the weather pattern. I think the fact this year that we did not see that fall off is a good indicator of the health of the trees and the farming practices that are underway down in Peru.

Sorry, I didn't mean to cut you off there, but yes, understood.

Oh, no worries

Then, switching gears to marketing and distribution, you called out market share growth in retail. This was pre-Calavo, but maybe you could take a minute or two, three minutes and sort of highlight the optionality or the opportunity as you're layering Calavo, even on market share gains, because you said you all, you they probably have some customers that you weren't necessarily penetrating. I think you probably have more -- my words, maybe better or more sophisticated pricing and sourcing programs that you could drive market share with these guys, but then you have, I think just size in the industry as well as an increasing variety of fruit. What does this all do to maybe the market share potential down the road?

Yes, it's a great question, Gerry. You know, one of the things we've been talking about this combination is scale and optionality for our customers, right? So we're still very early in the integration process. We're working incredibly hard on bringing our organizations together, having detailed customer-facing conversations right now about the next 6 to 12 to 52 weeks in regards to how we execute and promote for their benefit to drive excellent returns for them at the store level. But ultimately with the additional capability from a packhouse perspective in Mexico, in California, the availability of fruit that we can pull through our network allows us to serve a much broader swath of customers for a longer period of time than we were able to do just a year ago. So when the two companies together, X market share plus B market share should equal C plus market share in the future. We know that we modeled in some level of dis-synergy as we kind of predicted the fact that we would have a couple of customers that crossed hairs when thinking about overall share within that customer. So far, we've seen a minimal amount of that as we've wandered into conversations together collectively as a single organization. But thinking about the future and our opportunity to share and service our customers across the country with broader access to fruit says to me that between 2027 and 2030, we should be able to move the needle on market share in a meaningful way without having to go out and buy that market share from an M&A perspective because we have access to fruit and access to programs and access to quality that doesn't, that our competitors can't come close to.

And I'll look forward to the Investor Day in October.

Our next question is from Pooran Sharma with Stephens.

Congrats on the results. Maybe just to start it off. Yes, sure thing. Just to start it off here. Wanted to understand a little bit more on the volume expectations for 4Q. I know in the release, and I think in the prepared comments, you had alluded to industry volumes growing at roughly 10% in 4Q. But I'm just trying to think about how much volume contribution came from Calavo in 2Q. Now, it was 38% year-over-year growth. But if you kind of think that in your growth, legacy Mission, for example, matched industry growth of about 5% to 10% in 3Q, it would yield to about 20 million pounds or so of Calavo. And so when you think about 10% growth in Q4, is it more like 220 million pounds, when you think about the additional from Calavo? If you could maybe either help me with how to think about Calavo contribution from 3Q or how to maybe think about total aggregate volume growth for 4Q?

Pooran, when I think about it, you look at the amount of volume we saw in Q3, certainly we saw growth within our legacy business. We also saw growth from just the addition of Calavo into the fold. And that was for a two-month window, not a three-month window. It's difficult to pinpoint precise numbers because really from the day the deal closed, we started operating as one unit from a sales and sourcing standpoint. We still have different systems where we're collecting data, but there's so much collaboration and cross-selling activity that's taking place at this point that it's difficult to pinpoint a number, like a revenue or a volume number on one of the units. What I will say as we look at Q4 is that we think the industry volumes are going to be at about a 10% growth rate. And I think that was the intent as we're providing industry outlook not customer specific outlook. So yeah, in theory, if we're growing with the industry and it was Mission standalone, we would be at 10%. We're not picking up the Calavo, the impact of the Calavo growth right in there. That's not what we intended to do with that guideline or that guidance. It was really just more about understanding what the market conditions were that we were going to be operating in, which is a higher volume environment that we were in a year ago, which is going to have some impact on the pricing environment that we're operating in.

Completely. No, I appreciate that. And that is helpful, just kind of delineating that. I guess as my follow-up here, and I know you're thinking about integration here and good kind of questions on the progress of that maybe shifting to something that might be on the back burner a bit but prepared foods, obviously, first quarter under the belt, with not a full-quarter, but wanted to just get your sense on biggest areas of opportunity in this business. And as your integration progresses what do you think those buckets are? Is it more manufacturing utilization, sourcing? Is it customer penetration? Any sort of color with this business would help.

Yeah, sure, Pooran. This is John. You know, much more to come as we get into the next couple quarters on this business and we continue to learn more. But I guess as an initial stab, the excitement around the Prepared Foods business is well-deserved in regards to the opportunity ahead for Mission Produce longer term. The Calavo team and the leaders of that organization who come over and are helping lead that organization internally here have done an outstanding job of building capabilities and customers and relationships and have been able to really kind of drive a name in the industry for quality supply around processed avocados and particularly around the guacamole area. Now, since we've owned it and since we've become partners in that strategy process, we've seen some opportunities already. First of all, the capacity in that facility that is currently in Mexico more than likely needs to be addressed in regards to our outlook in regards to where that business can go. We're having conversations around what that means, how that could look, what the optionality is around our existing network, our network in regards to our global footprint, our capabilities in multiple countries of origin gives us a lot more optionality than Calavo standalone had in that space. We've tied our customer networks together in regards to bringing all the sales organizations into a room and said, how do we work together? How do we provide each other opportunities? We've already seen doors opening based on those conversations in the first four or five weeks of being together in that space. And then third, much more longer term, is the global outlook in that business, right? There's things that we have access to in regards to relationships and operating footprint that I don't think the Calavo team had really been considering longer term in regards to the global nature of where that business can go. Those are just some highlights and some things that I'm seeing as being truly differentiators in regards to the way we've run this business over the last 15 years and what we could do over the next 5 to 10 if we pull that together the way I think we can.

Thank you. Ladies and gentlemen, at this time, I'm showing no further questions. This does conclude today's conference call. We do thank you for attending. You may now disconnect your lines.