Good morning, ladies and gentlemen, and welcome to Tractor Supply Company's conference call to discuss second quarter 2020 results. [Operator Instructions]. Please be advised that reproduction of this call in whole or in part is not permitted without written authorization of Tractor Supply Company. And as a reminder, this call is being recorded. I would now like to introduce your host for today's call, Mrs. Mary Pilkington, Senior Vice President of Investor and Public Relations for Tractor Supply Company. Mary Winn, please go ahead.

Thank you, Carol, and good morning, everyone. On the call today are Hal Lawton, our CEO; and Kurt Barton, our CFO. After our prepared remarks, we'll open the call up for your questions. Seth Estep, our EVP and Chief Merchandising Officer, will join us for the question-and-answer session. Now let me reference the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. This call may contain certain forward-looking statements that are subject to significant risks and uncertainties, including future operating and financial performance of the company. In many cases, these risks and uncertainties are beyond our control. Although the company believes the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such explanations or any -- or its expectations or any of its forward-looking statements will prove to be correct, and actual results may differ materially from expectations. Important risk factors that could cause actual results to differ materially from those reflected in the forward-looking statements are included at the end of the press release issued today and in the company's filings with the Securities and Exchange Commission. The information contained in this call is accurate only as of the date discussed. Investors should not assume that statements will remain operative at a later time. Tractor Supply undertakes no obligation to update any information discussed in this call. Given the time constraints and the number of people who want to participate, we ask that you please limit your questions to 1 with a quick related followup. I appreciate your cooperation. We will be available after the call for followup. Now it's my pleasure to turn the call over to Hal.

Thank you, Mary Winn, and thank you to everyone for joining us this morning. Before we address our results for the second quarter, I thought I'd just step back, take a moment, acknowledge the environment in the United States right now. There's no doubt we're in a generational moment. Before the quarter began and for the entirety of this quarter, we've continued to deal with the COVID-19 pandemic and really all that's come along with it. And then towards the end of the quarter, we've seen widespread protests focused on racial inequality in America. We're a purpose-driven company at Tractor Supply through all these times. We've stepped back and led with our values, and I'm incredibly proud of that. Been so impressed and inspired how our team has come together and responded. And in all situations and across all functions, the team has moved with speed and focus to address this dynamic environment while also executing and delivering on record-breaking sales. Start off by just talking about team member, health and safety. We've taken extensive and proactive measures in this area. Masks are required for all team members and customers in all stores. Each day, all of our team members take their temperature and go through a symptom screening before coming to work. We are in the process of implementing biweekly testing for over 500 team members who travel, and we will be conducting sample testing within all our DCs to stay on top of that robust large population. Additionally, we've arranged for robust case management to conduct contact tracing and provide health care support for all team members who are impacted by COVID-19. And also, I thought I'd add, where there -- in areas where there's been widespread community outbreaks, such as in Waco, Texas and Costa Grande, Arizona,…

Thank you, Hal, and hello to everyone on the call. Before discussing our second quarter results, I'd like to recognize and thank our incredible team. I have personally been inspired watching everyone come together to face the current environment, embrace new ways of working and decisively taking actions to serve our team and our customers in the face of unprecedented conditions. With more than 20 years with Tractor Supply, I could not be prouder to be a part of this team. This quarter was certainly exceptional and like no other in the history of Tractor Supply. The second quarter benefited from the macro trends Hal shared with you. While at the same time, we had a great spring. The weather was ideal across the country with favorable temperatures breaking early in the spring and consistent moisture, providing a sustained spring/summer season. As we rank order our comparable store sales performance, the largest driver was our customers' desire for product categories that supported their Out Here lifestyle, as they shifted from other interests like travel, entertainment and dining. From home studying, land maintenance and fencing, backyard living and caring for their animals and pets, our customers have clearly made the care and improvement in their homes and land a priority. This is also inclusive of living a more self-reliant lifestyle and adopting new hobbies like backyard poultry, gardening and bird feeding. Now we believe brand awareness and the new customer performance that Hal discussed was the second largest driver of our comparable store sales performance. This was followed by tailwinds such as the favorable spring/summer weather that I mentioned earlier and the benefits from being an essential business that remained open during the early part of the quarter. Underlying these primary drivers, the government stimulus checks likely increase spending across the…

Thanks, Kurt. Let's look ahead. Look, as we think about our business, we have a unique opportunity to capitalize on the powerful customer trends that we're benefiting from now and to retain the record number of new and reengaged customers we're seeing. And our goal is to capitalize on our ability to drive sales and higher productivity. Our financial strength allows us to stay focused on the long term, creating an even greater competitive advantage as we're investing to fuel long-term growth. We continue to operate from a position of strength. And we're laying the groundwork for the future. And so today, we're excited to introduce 2 new strategic initiatives that are being implemented across all stores within the company. The first is the build-out of our field activity support team, and that's focused on improving the productivity of in-store execution. And the second is the expansion of several technology and service enhancements to capitalize on consumer expectations. Turning to the field activity support team. This initiative is designed to improve our merchandising activities in store, which represents the second largest body of work for our team members. This initiative builds on the successful rollout last year of The Tractor Way program, which addressed the largest area of work in our stores, the receiving and stocking of merchandise. And kind of stepping back, more broadly, our goal is to improve the productivity of our store payroll. And we want to shift hours away from tasking to customer-facing and keep finding ways to be as efficient as possible in what we do in tasking, so that way we can drive customer-facing hours. And this is a very common retail approach. And so the work of the FAST team includes executing a merchandising programs like center court, End Caps, planogram resets, seasonal…

[Operator Instructions]. Our first question today comes from Kate McShane from Goldman Sachs.

My question is centered around inventory. Inventory was down per store, had a pretty strong flip versus your very, very strong comp. I know it's based on very strong demand. But how are you managing this? And how do you expect the inventory piece to evolve over the next couple of quarters?

Kate, absolutely. Thanks for the question. As I mentioned in my prepared remarks, operating at kind of 20%, 25%, 30% comps plus for 13-plus weeks puts some strains on the business that we've not seen historically and really proud of how the team worked through all those challenges to meet the needs of our customers. And inventory has certainly been one of those challenges. And we've taken a number of actions to lean into that in terms of increasing our visibility of forecast with our vendors, obviously increasing receipts and working very closely with them, and in a minute I will ask Seth to talk a little bit more about our vendor interactions. But what I'd say is we would like to have more inventory in our stores. We would like our inventory levels to be -- in-stock levels to be higher right now. And we are working very closely with our vendors to do that. In many cases, we're selling product right when it comes off the back of a truck. As an example, we are I think the largest seller of stock tanks in the United States. We are selling close to $2,500 of those a week. Our manufacturer is able to make $3,000 a week. So as soon as we get a truck, they hit the floor or hit the outside in the side lot. And we've got will calls and our customers taking them immediately off the lot. And so, again, we wish we had more inventory. We're very focused on getting more in our stores. We're very focused on getting our in-stock levels, and we're working very closely with our vendors on that. And I'll turn it over to Seth to maybe just make a few more comments on that front.

Thanks, Hal. Yes. Kate, so as Hal mentioned, obviously, it's our desire to get as much inventory as possible and one of the things that the merchant team has been doing each and every day is partnering with our supplier base and what I can tell you is that our suppliers are stepping up in ways in which how can we make sure that we can get each of the products that we sell today, but also looking for opportunity buys. And the team has been really nimble in looking at ways to reallocate space in our center court to product that's available when things are supporting the lifestyle that is out there whether that be around backyard and activity and home setting, things of that nature. So really pivoting to new items and new categories. And as we've gone that route, one of the benefits that we've also had is strong sell throughs. So we have our each -- our replenished items that Hal talked about. But also when you look at our drive-out programs as well, we're sitting on about 30% less clearance inventory today than we have -- than we were this time last year, just based on the overall strength of the business. So it's a couple -- it's again a couple fold. Number one is that we want to make sure that we can have that product in stock to drive each and every day bids for your own programs. But then number two, we also have seen the benefit of strong sell throughs, which have benefited in less clearance inventory, which has allowed us to go after opportunity buys, which are driving some significant comps right now as well.

Our next question comes from Peter Keith from Piper Sandler.

Great results, and thanks for the thorough prepared remarks. Maybe a guidance question for Kurt. Given the solid gross margin that you guys posted in Q2, could you help us understand the potential continuation of some of these drivers with Q3 and what's guided via strong sales backdrop?

Yes. Certainly, Peter. This is Kurt. And in regards to gross margin and the continuation of that, I'll first start by reflecting back on Q2, where we saw several factors that were favorable and across the board very ideal, and we were able to capitalize on that. And our priority will always be to continue to gain market share while trying to balance good solid gross margin. So as we compare Q2 versus looking ahead, for Q3 and forward, we'll continue to stay focused on EDLP, which does support less promotions. As you just heard Seth mention, our inventory is in its cleanest shape. And so we anticipate some less offseason transition or clearance. And then we did see some benefit in Q2 on transportation efficiencies. We think that will continue, but albeit at a more moderated level as we start to cycle some of the benefits in the [Technical Difficulty]. We anticipate strong gross margin performance year-over-year. The key drivers of product mix and promotional may not have as strong of a benefit in the second half, but we do continue to think that there's benefit from both of those and the opportunity we have with good, solid, clean inventory going into it. So you'll see from our guide that we anticipate momentum and continued year-over-year strong growth or performance in gross margin.

Okay. That's helpful, Kurt. And maybe another question just for Hal. The new customer acquisition numbers that you gave were quite impressive. Now that you're several months into what seems to be elevated acquisition, do you have any observations in recent months on the ability to retain the people that have come into the stores perhaps in March and April?

Yes. So we're monitoring repeat purchase rates of all of our new customers and our reacquired customers. It's a regular muscle and analytical skills that we have set up. It was part of all the work the team did in Q1 of this year and into Q4 last year as we migrated the platform to Microsoft Azure, and we're able to leverage the analytical tool set that comes along with that. And what we are seeing is that we're continuing to see strong new customer counts, we're continuing to see strong reacquired customer counts and we're seeing them shop with us a second and third time at a higher rate than they have historically with us. And those trends have been very consistent from the early days of the pandemic up until now. And as I mentioned, they've had a -- early on, there were probably slightly more rural. I'd say now it's -- or slightly more suburban. Now it's kind of moderating. It's kind of reasonably mix between suburban and rural. It does have a tendency to be a little more female, as I mentioned in the prepared remarks. And then online, whether it's direct ship sales or buy online, pickup in store with curbside pickup, does over penetrate some with those new customers. But they're giving us a strong customer satisfaction scores. And in their surveys, they're saying they intend to repeat shopping with us. And then in their actions, they are continuing to shop with us as well. And our aspiration is to invest significantly in digital and national marketing as well as specifically in the -- in our CRM toolkit to continue to engage those customers. And of course, that's one of the reasons we hired 5,000 new team members this quarter, net new team members, was to provide that legendary customer service that we're known for and ensuring that we can serve effectively the increased counts of customers we have in our stores.

Our next question comes from Peter Benedict from Baird.

So two questions. First, just -- maybe just on the cadence. You mentioned pretty consistent top line across 2Q and that that's continued in 3Q. So as you're looking forward, you mentioned expecting some moderation, which makes sense. Just trying to understand maybe what your -- what level of moderation you're thinking about there? I mean, you said in 2Q, you thought maybe half of the comp was kind of sustainable structural stuff. Is that a good benchmark for us to think about how maybe you're planning the balance of 3Q? And then, obviously, with some more moderation in 4Q? That's my first question.

Yes. Peter, this is Kurt. Thanks for the question. In regards to the comp sales, I'll address the point you made on the second quarter first and then pivot from there to kind of help with the third quarter. We saw, while unprecedented volumes amazingly, consistent performance throughout the second quarter, all 3 months at a fairly strong elevated level. And even when we look at the 2-year stack month-to-month, just continue to show the consistency between April, May and June. And as I mentioned, the level of performance continues through July. We do anticipate that as with what we can see today and having a -- it's just volatile and uncertainty in there that the reasons I mentioned in the prepared remarks, we could anticipate seeing some moderation. And to your point earlier, I believe the strength of the core business is a good indicator of where we would see the third quarter and the last half of the third quarter potentially more falling in the range. So we're giving some prudent evaluation to some of the tailwinds that could have less benefit, causing us in the third quarter while starting off strong to really end in the range that we gave in our overall guidance.

Okay. That's fair. And then just a question maybe for Hal or Seth. Just around the animal ownership trends, and you mentioned the dog adoption, but also I know the backyard poultry trend has been particularly robust. Maybe rank -- if you could rank order maybe the importance of those businesses within your overall animal business, you guys are serving equine, other large animals, so just so we can understand which are the most important categories. And then just what you're doing to kind of capitalize on that backyard poultry trend that's continuing to surge here?

Peter, this is Seth. When you look at our overall pet and animal businesses and talking about rank order of the two, I would kind of look at each of those a little bit independently. So for us, we have a primary desire, obviously, to own the pet customer in the rural marketplace. And a lot of efforts are going in place, whether it be on our pet supplies resets and continue to make sure that we have the product there as we're seeing these record adoption rates. The pet supplies business just showed incredible strength in the quarter. And we're continuing to see that strength. Obviously, Hal mentioned the pet food reset that's coming up as we continue to go where kind of the customer is going and where those trends are. And so pet for us is something we want to make sure that we look at that, whether it be on the tractor side as well as with pet sense that we want to own that category, obviously, in the rural marketplace. Animal is obviously the other category on its own. And with those, obviously, it's multi-species approach. You talked about backyard poultry, you talked about equine. And the merchant team really puts together independent strategies to really attack each of those areas of the merchant categories. And as we talk about localization and regionalization, the animal side is one of the areas that we see some of the most localized and regional differences at times so that we can go after these categories. So the team, our feed rack is actually done on a store-by-store basis relative to the local assortment. And we obviously want to go after these things, and we're continuing to go after sales here. Backyard poultry is something that we have seen some really nice strength in. And just to put -- give an example of some of the nimbleness that has occurred throughout the year, our Chick Days, what we call Chick Days, which is one of our big center court events in the spring is typically about a 9-week event. That event actually has not ended. So as we've seen the strength and the momentum in that category. The team was able to be nimble, reallocate center court space. Most of our stores are continuing all of that. And we'll continue with that throughout the fall, as we want to make sure that not only we can capitalize on these trends, but also be that dependable supplier as we're seeing new customers come into the category as well as current customers adding to the flock. So pet and animal, both, I would just say, are going to be 2 of the primary pillars as we look forward not only this year but for the years to come to drive comp and drive the overall business.

This is Mary Winn. I am going to ask that everyone please keep to 1 question and 1 follow-up. We have a lot of people in the queue, and we'd like to be able to get to as many people as possible. So thank you.

Our next question comes from Michael Lasser from UBS.

Hal, you've had a remarkable start to your 10-year at Tractor Supply, but you are setting yourself up for a tough act to follow next year. So with all these productive initiatives in place, significant amount of new customer acquisition and knowing what you know today, do you think Tractor Supply can comp positive in 2021?

Great question. And I don't think I've got the crystal ball in front of me on that one. But what I can -- and I would acknowledge just the wide range of uncertainties over the next 18 to 24 months, but I'll reference -- I'll start by referencing what we talked about in our prepared remarks is that we're planning for the COVID-19 pandemic to be a significant factor in the United States and in consumer shopping behavior, at least through the middle of next year. And we're bind to that. We're building our assortment plans around that, and we're putting in place our operational plans to support that. As we look beyond that, that's where we're -- that's why we're talking about growth initiatives today. We truly are focused on emerging as a stronger company than we entered this pandemic. And we're going to -- we're investing in things like our FAST team to make us more operationally efficient, we're investing in technology to make us easier to do business with, and importantly, we're looking at our format and our store and saying, how do we make it more productive. And for those of you that have followed our business for quite some time, it's been a while since we've gone on a strong space productivity improvement initiative inside of our stores. And we're very -- it's early days, but we like what we see in terms of the initial actions we're taking on the space productivity program, project fusion in our stores, and we're doing 75 of those this year. And then the side lot has always been a -- I think, by all accounts, a big opportunity for us. We've got anywhere between 15,000 to 20,000 square feet in our side lot. It's kind of concrete slab.…

Our next question comes from Simeon Gutman from Morgan Stanley.

A little bit related maybe for Hal. I wanted to ask you about the outside space and then the improving productivity. You're doing around $300 a foot, and I think that still includes your e-com. The home improvement retailer, you used to work at, does about $500. And I'm just doing this to illustrate the difference. I know you're not a home improvement store. And then Kurt mentioned some structural tailwinds. Curious if the opportunities that you're testing here to drive sales per foot are incremental or should we be thinking big? And any sense of where these store tests, where you think the store productivity or sales per foot could land?

Yes. So we're not prepared to talk about targets and what we think our goals are yet. We've got these 75 stores in each of the pilots that we're standing up here in the fall. And as we get more data and see the performance of those, we'll certainly share that as appropriate. What I would say is both of them are -- both of the tests are step changes in the company's value proposition and in our format. And notably, in the -- inside the store, it's a significant step forward in how we allocate space, cutting in new programs and new categories and brands, more room for lay down areas to bulk out product and drive sales. And much more clarity around the connectivity of aisles and looking at all -- every SKU has to earn its way. Every program has to earn its way into the store. And Seth and the team have just done a fantastic job in leveraging data to really redefine what that store should look like. The side lot is a -- it's hard to express [indiscernible] radical transformation. You were basically taking the 15,000 square feet that we have there now, shifting it over to compressing it to about 5,000, 6,000, 7,000 square feet through racking that kind of merchandise this product. If you walked our store, you'll see stock tanks, you'll see corals, you'll see gates. And typically, a lot of times, they're laying on the floor bundled together. We're now putting these up and racking. We're now merchandising that they're shoppable. We're opening up the drive-throughs with automatic gates that allow customers to drive through and pick up. We're looking at certain categories like garden. We're looking at feed and how you drive through and do drive-through pickup on feed. We also selected high-volume buy online, pick up in store orders, so you can do drive through buy online, pick up in store, you don't have to wait out front for it. We're dedicating staffing for outside. We're putting new Theatro headsets in all of the stores. So that, that way, our team members can talk to each other and manage what will be really, in essence, move from a 15,000 to 18,000 square foot store to a 30,000 to 35,000 square foot store. The side lot will now be covered going forward, much like what you might see in some of the more larger mass and home center stores. So it is a significantly different store than it was before when we were done with these productivity program rollouts. And we're very excited about the opportunity. It gives us an opportunity to really transform the productivity of the outside to bring new categories in. Seth was very involved and kind of led our CUE transformation in 2009, and we think this has an opportunity to serve as another step change for us going forward.

And the SKU count goes up, Hal?

There will be some modest SKU count, but certainly, those additionals -- that would be more reflective of the outdoor area, where we've got new square footage that we're merchandising. But we're still very focused on space productivity and inventory productivity. But there will be some add of SKUs and some add of inventory to support those higher sales volumes that we're anticipating.

Our next question comes from Steven Forbes from Guggenheim.

Maybe I'll just put the two questions into 1 here. The focus on the field activity support team. I believe you mentioned 1,500 team members right organized at the district level. And maybe just correct me if I'm wrong here, that's about 8 to 10 per district. And then as we think about the funding for these -- some of your big box peers, right, have gotten some vendor support for these type of initiatives. Maybe just talk about your dialogue with the vendor community, whether there will be some form of vendor participation, either initially or after you prove out, right, some of the productivity gains and then just real quickly, right, where servicing versus tasking hours are today versus where you think they should be?

Yes. So let me kind of hit a few of those. First off, we are working methodically through the core tasks that we put on our stores and looking to make them more efficient such that we can shift those hours to customer-facing. And as you mentioned, that's been a program that's tried and true and been executed across many other retailers very successfully. We started that last year with the Tractor Way program. That is our #1 task that we ask our team members to do is to receive a truck and get the product to the shelves. And we implemented with technology and with process, a significantly improved approach to that. The next biggest task that we had is the merchandising activity that happens in our stores, whether it's seasonal resets, End Cap executions, what we call FCIs, which are resets of certain categories at the completion of the line review, et cetera. And that's our second largest activity. And as you know, right now, we use existing labor in our stores to execute that. It's again, tried and true across retail. When you could aggregate a team and have them focused solely on those executions and those tasks, they are efficient, you get more efficient because they're putting together -- they're doing the same reset across 15, 20 stores at a time. You also get more efficient in your processes and your systems to drive that execution, whether it's the way you build your planograms, whether it's the way that you load your product on the -- as it comes into the store on pallets and gets set aside, et cetera. And so we are very committed to just driving tasks down in our stores, making it more efficient and shifting it to our customer service. And this is all about how do we make our company more productive, how do we continue to make our company all resources count. As it relates to the funding for those headcounts, as you said, it is very common in the industry for the vendors to support that sort of program, and I was kind of implying that in my remarks because the activities are directly related to the on-shelf execution of those vendors' programs. We have a vendor conference in a month, and this is one of the discussion points we'll be having with them. And then also, over time, as our stores get more efficient in their tasking, I do think there's opportunity for our payroll to be more efficient in the stores as well. So in the long term, while we have some incremental investment we're making in this team in Q3 and it will slide a little bit into Q4, in the long term, we think this cost is transitory, not structural.

Operator, Carol, we have reached the top of the hour, but given the number of people we have in the queue, I would elect the call go for a few minutes longer. So maybe, we will move to the next question.

Our next question comes from Scott Ciccarelli from RBC.

I had another followup on the new customer front. Just given its importance, your ability to kind of let this year's trend. I was wondering if you guys have any data on who your new customers are and where they're coming from? In other words, are these customers new to the rural environment because you're moving out of urban and suburban areas? Or is it more that they're shopping at other venues and migrate to Tractor Supply? And if it's the latter, what channels are they leaving to come to Tractor Supply?

Yes. It's a little bit of both, Scott. So we all read the same data sets on kind of about mobile data and seeing where people are in the United States, and you're seeing less density of mobile data in cities, and you're seeing more density in suburbia and even more density than past in rural. And when we look at our customers and these new customers and reacquired customers, we're seeing that. It's people have left the cities where we don't have stores. They're moving into suburbans -- they're moving out of the suburbs, so they're moving out to the rural communities. They're embracing the Out Here lifestyle some, and they're shopping Tractor Supply because we are that lifestyle. And then for the customer -- but we also are gaining share with customers that are already out here, so to speak. And I think it's coming from a -- and it's coming from a variety of places. So -- and I'll head into the categories, just to give you some examples. So in apparel, where our sales have been strong, as we said, all categories were double-digit comping. We think that we are benefiting from trip consolidation there. Instead of customers going to a stand-alone apparel or retailer and they get about that 1 or 2 items and do they really want to kind of take on that kind of safety kind of element, they're coming into Tractor Supply. They're already going to be in there to buy maybe pet food or animal feed, and they're picking up their clothes while they're in there or boots or any other item that we have in the apparel area. Then you think about pet, all-time high pet adoption, a lot of new customers in the market or maybe customers that used…

Our next question comes from Matt McClintock from Raymond James.

And may I say congrats, great job of executing. My main question here, Hal, is really as we think through everything that you just said on this call, and there's a lot that you said on this call, a lot of initiatives. I think you were already planning on focusing on space productivity before COVID. So I want to understand or better understand what initiatives that you're talking about today were already in place before COVID? And what initiatives, investments are you making now that you're seeing how fundamental consumer behavior might be changing because of COVID? Can you kind of maybe parse those 2 things out just so we can understand the new things that you're putting in place?

Yes, Matt, and thanks for the question. Yes, I'd say, 2 things I would say on that. First off, in March, in mid-March, when we had kind of our meet and greet up in New York, we did talk about space productivity. And I'd say that was kind of early days thinking, if you recall that we were sharing with you and saying we thought this was an opportunity and we were going to go start to take -- put plans in place to attack the opportunity. The first thing I'd say is just outstanding work by Seth and his team and John Ordus and his team and our construction team. We're in the midst of a pandemic, and we're doing all this activity to support our team members, all this activity to drive the business in the midst of it. They're also putting in place plans to address base productivity strategically and look out 18 months, 2 years, 3 years. So first off, I'd say we didn't really have a road map in place in March when we talked about it. It was more of an idea. And over the last 3 to 4 months, the team has kind of not only walked and chewed gum at the same time but jumped rope and pulled together what I think is a very compelling, a potentially transformative plan for the company. The second thing I'd say is we are leaning into those tests in a more aggressive way, given the strength of our business right now though we might have otherwise. We're doing 75 of each one of those stores, which is a pretty aggressive swing for a pilot, but that just demonstrates the bullishness that we have in the solution and also the speed at which we want to execute once we get the data sets out of the pilots.

This concludes the Q&A portion of our call, and I would like to turn it back to Mary Winn for final comments.

Well, thank you very much, Carol. And I'm glad we were able to get a few more people in there for the Q&A. So thank you all for your cooperation. This does conclude our call today, and thank you for joining us. We look forward to speaking to you on our third quarter call in October. And I'm around along with Marianne if anyone needs anything. So thank you all. Take care.

Thank you. And once again, this does conclude today's conference call. Thank you for your participation. You may now disconnect.