Molson Coors Beverage Company (TAP) — Q2 2019 Earnings Call Transcript

Thank you, Gary, and hello, everyone. Following prepared remarks this morning, we will turn the call over for your questions, as Gary said. In terms of safe harbor, today's discussion includes forward-looking statements within the meaning of applicable securities laws. Important factors that could cause actual results to differ materially from the expectations and projections contained in such statements are disclosed in the company's filings with the SEC. The company does not undertake to update forward-looking statements, whether as a result of new information, future events, or otherwise. GAAP reconciliations for any non-U.S. GAAP measures are included in our news release or otherwise available on the company's website at molsoncoors.com. Also, unless otherwise indicated, all financial results the company discusses are versus the comparable prior year period and in U.S. dollars. So with that, I'll turn the call over to our CEO, Mark Hunter.

Thank you, Mark, and hello and welcome, everybody. With me on the call this morning are Tracey Joubert; the CEOs of our business units; Lee Reichert, our Chief Legal and Corporate Affairs Officer; and Brian Tabolt, our Global Controller. Now before we begin, I'm sure you all saw the press release earlier this morning announcing my retirement on September 27. It's been a privilege to serve as the Molson Coors CEO for the past 5 years, and I've thoroughly enjoyed engaging with our investors and analysts throughout our journey. This leadership change has been worked through with our Board as part of our ongoing succession planning at the executive level. I'm genuinely excited about the future for Molson Coors and proud of what we've accomplished over the past 5 years. Our goal with the acquisition of MillerCoors and the Miller International business was to create a bigger and better company. In 2015 and 2016, we planned for and executed on a step change and transformed our scale. In 2017 through today, we've delivered on the integration and the initial deleveraging and synergy commitments made at the time of the acquisition despite higher inflation and softer industry demand than anticipated. Along the way, we've also strengthened our culture with the introduction of our First Choice ambition and bolstered the leadership and capabilities of our people through our Commercial Excellence and World Class Supply Chain programs. As we now shift emphasis to greater focus on top line growth while remaining financially disciplined, it's an appropriate time for me to pass the baton to Gavin to lead the company through our next chapter of continuing to energize, premiumize, and modernize our portfolio and to move beyond beer with disruptive thinking. And you are already seeing some of the fruits of this work. Now while I'm happy to move on to my next phase after a 36-year career and spend more time with my family in the U.K., along with the rest of the Board, I'm also very excited to see Gavin take over the reins and help successfully drive the company forward in its next chapter. Gavin has been on the executive team for the past 7 years and is well-known to many of you as the former Molson Coors global CFO and as the leader of our U.S. business unit for the past 4 years. He knows our business, he knows you, and he shares my absolute passion for our people, our brands, and our success. Now our time today is focused on earnings. So for the balance of the call today, Tracey and I will take you through highlights of our second quarter 2019 results for our company along with some perspective on the second half of 2019. Related slides can be found on the Investor Relations page of our website. After a solid start in the first 4 months of the year, May and June were challenging, reflecting unfavorable weather and weak industry demand across our major geographies, resulting in a disappointing volume performance in the quarter. Despite this backdrop, we executed our plans for incremental brand investment to drive accelerated portfolio premiumization and innovation impact across our business. Encouragingly, we delivered strong constant currency net sales per hectoliter growth of 3.7%, and our share trends improved in the U.S. and were stable in Europe. We also saw strong premium light share growth in the U.S. as Miller Lite and Coors Light each gained segment share. This was ahead of the newly launched Coors Light "Made to Chill" advertising, which is focused on new drinker recruitment by dramatizing Coors Light's purpose to refresh the spirit through its mountain-cold refreshment credentials. We believe this creative platform is distinctive, disruptive, and breakthrough. We also maintained our focus on cash flow through ongoing cost savings, productivity improvements, and improving our working capital. We remain resolute on the ambition to improve our top line through increased investments in our brands, portfolio premiumization, and innovation initiatives, including the launch of our Truss cannabis-infused nonalcoholic beverage portfolio in Canada later this year. We are committed to doing this while maintaining our investment-grade credit rating and strengthening our quarterly dividend, which increased by 39% to $0.57 per share, in line with our target of 20% to 25% of prior fiscal year underlying EBITDA and is payable for the first time in September. And as you know, our First Choice strategy has 3 major components focused on the top line, the bottom line, and the use of cash allowing us to improve shareholder returns. Earning more is focused on improving top line growth, and we know our top line performance can improve. Encouragingly, the quarter showed our disciplined pricing across our brands and regions, positive global mix, improved share trends in the U.S., and maintenance of share in Europe. Our focus on reshaping and premiumizing our portfolio and readiness to spend against this focus remain unchanged. Our use less discipline is demonstrated by enterprise productivity and cost-savings initiatives, all of which remain on track. This includes our work in Canada, where we have been brewing trials in our new British Columbia brewery and recently completed the sale of our Montréal property and are in the early stages of building a state-of-the-art brewery in Longueuil, Quebec. I'm pleased with our progress monetizing and modernizing our brewery footprint in Canada and expect significant benefits from the upgrades we are making to our network, including more flexible capacity to meet demand, lower unit operating costs, and increased supply chain efficiency. Please remember that the one-off start-up costs for the new brewery in British Columbia impacted the Q2 results in Canada. More broadly, regarding using less, as former Coors Brewing Chairman Bill Coors once said, "Waste is a resource that's out of place." Molson Coors helped pioneer the recyclable aluminum can revolution 60 years ago, and this year we're stepping up our efforts to tackle the global plastic waste crisis. Over the next 2 weeks, we will launch our Beer Print report 2019 outlining the progress made against the 2025 sustainability goals. With the release of the report, we will also launch a set of additional ambitious commitments to minimize the impact of our packaging, alongside the great work that's already underway across our responsibility, sustainability, and inclusiveness agenda. Finally, alongside earning more and using less, we continue to invest wisely. As you saw in the quarter, we are investing more behind our commercial agenda and increasing marketing and sales plans to a per hectoliter basis and in absolute dollars in the quarter and first half. You should expect to see increased spending against attractive consumer segments and brands without sacrificing our deleveraging and cash return objectives. In other words, we intend to use multiple tools to deliver improving top line performance, namely higher-return commercial spend, targeted increases in brand investment and innovation initiatives, and a more effective supply chain while minimizing out of stocks. In terms of deleveraging, we recently completed the sale of our Montréal brewery for CAD 126 million, providing us with additional funds for debt paydown. On July 15, we repaid $500 million of senior notes through a combination of cash and new commercial paper. We expect to continue to delever, thereby maintaining and strengthening our investment-grade credit rating. So with that context, let me pass over to Tracey.

Thank you, Mark, and hello, everyone. I will speak first to the quarter on a consolidated and regional basis, then to our 2019 outlook, and finally, to our capital allocation plan. To recap the quarter, our net sales revenue decreased 2.9% in constant currency. Although we delivered strong pricing in each business unit as well as improving global mix, this was more than offset by volume declines. Net sales per hectoliter on a brand volume basis increased 3.7% in constant currency. Our worldwide brand volume decreased 5.6%, and financial volume decreased 7%. Our global priority brand volume decreased 4.6%. Underlying COGS per hectoliter increased 6% on a constant currency basis driven by inflation, volume deleverage, and increased packaging costs associated with our U.S. bottle furnace rebuild, partially offset by cost savings. Underlying MG&A increased 5.7% on a constant currency basis driven by increased brand investment and cycling of G&A benefits from the prior year. As a result, underlying EBITDA decreased 12.8% on a constant currency basis. Our year-to-date underlying free cash flow was $560.7 million, 15% below the prior year, driven by lower underlying EBITDA and higher cash tax payments, partially offset by lower capital expenditures and lower cash interest payments. Now moving to our business units. In the U.S., overall industry demand was softer year-on-year, and net sales revenue decreased 2.9% driven by a 6.7% decline in sales-to-wholesalers, excluding contract brewing, partially offset by net price increases. COGS per hectoliter increased 4.7% driven by inflation, volume deleverage, and increased packaging costs associated with our bottle furnace rebuild, partially offset by cost savings. MG&A increased 4.5% reflecting higher marketing investments focused on our above premium and innovation brand as well as cycling lower employee incentive expense in the prior year, partially offset by the incremental cost reductions related to the restructuring program initiated in the third quarter of 2018. As a result, underlying EBITDA decreased 8.2%. In the second quarter, we took share in premium light with Coors Light returning to segment share growth and Miller Lite gaining segment share for the 19th consecutive quarter while also holding industry share. Our above premium portfolio has a number of fast-growing brands, including Peroni, Sol, Arnold Palmer Spiked Half & Half, and Henry's Hard Sparkling, which grew strongly and gained share of FMBs according to Nielsen. This growth was more than offset by declines from the Leinenkugel Shandy family and the Redd's franchise. Blue Moon Belgian White had its best quarterly volume performance since the fourth quarter of 2017, holding industry share. Cape Line, our new sparkling cocktail offering, has been a top 10 growth brand per Nielsen since early June. In Europe, net sales revenue decreased 2.4% on a constant currency basis due to a 6.5% decline in brand volume partially offset by strong price increases and favorable mix. COGS per hectoliter increased 7.5% in constant currency primarily driven by inflation and volume deleverage. MG&A increased 8.7% in constant currency, reflecting higher overall marketing investment focused on our national champion brand and premiumization initiatives as well as cycling last year's partial reversal of bad debt provisions. As a result, underlying EBITDA decreased 18.4% in constant currency. We knew we were facing challenging comparisons due to the 2018 World Cup and the exceptional summer weather last year, and yet the quarter was still disappointing driven by unfavorable weather and softer market demand. We remain confident in our ability to drive balanced net sales revenue growth through our strategy of investing behind our national champion brand and accelerating our premium portfolio. Despite soft demand, this strategy is resulting in net sales per hectoliter growth of 4.3% on a constant currency basis in the quarter and protection of our market share. In Canada, net sales revenue decreased 2.9% on a constant currency basis driven primarily by a 5.1% decline in brand volume primarily due to softness in industry volume, partially offset by positive pricing. COGS per hectoliter increased 7.6% in constant currency driven by inflation, increased distribution costs, unfavorable sales mix, volume deleverage, and brewery start-up costs in British Columbia, partially offset by cost savings. MG&A increased 9.5% in constant currency driven by higher overall marketing investment focused on Coors Light and Molson Canadian programming, our premiumization efforts, and modernization of our portfolio through innovation, as well as Truss start-up costs. As a result, underlying EBITDA decreased 25.4% in constant currency. Weak industry demand drove the majority of our volume declines, with premium segment share trends continuing to improve for our Coors trademark and Molson Canadian brand. Coors trademark volume was positively impacted by the successful launch of Coors Light and growth in Coors Edge, and we continue to realize strong double-digit growth from Belgian Moon and Miller Lite. Also note, we continue to estimate Truss-related start-up costs of CAD 10 million to CAD 15 million in 2019. In our International business, net sales revenue decreased 12.1% on a constant currency basis driven by an 11.9% decline in brand volume along with the shift to local production in Mexico. This was partially offset by price increases and a positive geography shift. COGS per hectoliter increased 7.8% in constant currency driven by inflation and sales mix changes. MG&A decreased 5.3% in constant currency driven by lower overhead costs, partially offset by higher marketing investments behind our focus brands. As a result, underlying EBITDA decreased 10.8% on a constant currency basis to $5.8 million. Brand volume declined due to higher net pricing on Coors Light in Mexico and supply chain constraints related to the general election in India, partially offset by double-digit growth in several of our focus markets, including Argentina, Panama, and Puerto Rico. Coors Light volume was down principally because of Mexico, while Miller Lite volume increased mid-single digits across all of our international markets. Moving to outlook. Our earnings release details our guidance. We continue to expect 2019 consolidated underlying COGS per hectoliter to increase at a mid-single-digit rate on a constant currency basis. In terms of cost savings, we continue to expect a total of $700 million of savings for the 3 years ending 2019 and plan to add $450 million for the period 2020 through 2022 to be spread evenly over that period. These savings will help fund our investment plans, the cost of achieving the savings, and offset input inflation. We continue to expect our International business to deliver underlying EBITDA growth of strong double digits in constant currency for 2019 versus 2018, and we continue to estimate underlying free cash flow of $1.4 billion, plus or minus 10% this year. Before I hand the call back to Mark, a few comments regarding our recently announced dividend increase modeling and our approach to brand support. Our next quarterly dividend, declared at $0.57 per share, is payable September 13 and brings our dividend in line with our target of 20% to 25% of prior fiscal year underlying EBITDA. We ended the second quarter with normal levels of inventory and a shift to consumption on a year-to-date basis. Recall that Trenton and Fort Worth went live last year led to very strong STWs in the third quarter contributing to very soft STWs in the fourth quarter. We have two remaining system go-lives in Albany, Georgia, and Irwindale, California, and these remain on track to complete them by year-end. The inventory bulk will be limited within these brewery orbits. For the balance of the year, we expect to shift to consumption and anticipate prior year comparisons will lead to a high STW trend in the fourth quarter than in the third quarter. Our third quarter will also reflect the lapping of the favorable resolution of a U.S. vendor dispute, which was more than half of the MG&A capability in the third quarter of last year. We will also be lapping Canada's distribution within COGS in the third quarter of last year. Finally, North American industry conditions remain challenging, and we'll continue to spend our dollars efficiently while also increasing spending against attractive consumer segments and brands. And as Mark said, we will do so without sacrificing our deleverage and cash return objective. At this point, I'll return the call back to Mark.

Thanks, Tracey. As you know, our earn more focus depends upon extraordinary brands, customer excellence, and disruptive growth. Looking at our brands, we continue to realize strong pricing across our business units giving us more fuel for brand investment, which is increasing to energize our core brands, premiumize, and modernize our portfolio. In terms of our core brands, as I mentioned, within the U.S., we saw strong premium light share growth, and we expect this to accelerate where our new Coors Light advertising has just launched. More on that in a second. In terms of premiumization, global mix became positive as a result of our performance in Europe and through package mix. Though package mix in the U.S. is trending unfavorably, this is partially offset by brand mix, which was positive for the first time in the U.S. since early 2018. Drivers of our premiumization progress included Staropramen and Pravha in Europe, Belgian Moon in Canada; and Cape Line, Blue Moon, Belgian White, Peroni, Henry's Hard Sparkling, Arnold Palmer Spiked Half & Half, and the Sol trademark in the U.S. We also expect bolt-on M&A to continue to aid premiumization. In Europe, we recently completed the purchases of Pardubický Pivovar in the Czech Republic and Hop Stuff Brewery in London. Our global brands benefited from yet more strong performance from Blue Moon and Belgium Moon in Canada, Europe, and International, with Staropramen in Europe and Miller Lite in our International and Canada business growing strongly. In terms of reshaping our portfolio, we are demanding more from innovation. In hard seltzer, we're committed to building on the performance Tracey mentioned, adding offerings in this segment, and reflecting our confidence in the Henry's brand and the hard seltzer segment. Of course, Coors Light is our largest brand. Though we are pleased to see its premium light segment share improve in our largest market, that's simply not enough. Our new creative started running this week and Gavin, Michelle, our U.S. distributors, and I are excited about "Made to Chill," which is focused on new drinker recruitment by dramatizing Coors Light's purpose to refresh the spirit through its mountain cold refreshment credentials. We believe the creative platform is distinctive, disruptive, and breakthrough, especially for new legal drinking age adults. Turning to customer excellence, we continue to be a leader in category management in the U.S. as evidenced by our first place result amongst beer suppliers in the most recent annual Advantage survey and another first place on-premise result in the most recent annual CM Profit Group survey. In Central Europe, we are seeing strong growth in both major channels and our Net Promoter Score. In Canada, we continue to help customers drive category growth, as evidenced by our achievement of the Partner of the Year Award with the LCBO in Ontario. We're also improving our intensity behind disruptive growth, premiumizing and extending our portfolio to meet the expanding area of consumer taste and occasions. In the U.S., that includes strong double-digit growth for Peroni; early success with Cape Line sparkling cocktails; encouraging test market performance from Saint Archer Gold, a premium light craft lager; Movo wine spritzers; and the pending test of La Colombe hard coffees in select markets. We're also seeing strong growth of Sol Chelada following its national introduction earlier this year. In Canada, Coors Slice, Aquarelle Hard Seltzer, and Bella Amari are performing well. In International, our portfolio is benefiting from continued expansion of Blue Moon, now available in more than 20 international markets. Disruption also features in our route to market, presenting new service opportunities and revenue streams as we step change our digital and e-commerce capabilities across our business. We're excited about the disruptive potential of Truss, which remains on track for a national launch of nonalcoholic cannabis-infused beverages when they're legalized in Canada later this year. For those of you less familiar with our partnership with HEXO, Truss is singularly focused on cannabis-infused nonalcoholic beverages. We know Truss's portfolio of brands will taste great and be scalable because of its infusion technology and flavoring capabilities within its Belleville, Ontario facility. Truss's portfolio will meet an array of consumer occasions. Truss's CEO, Brett Vye, heads a team that's practiced in testing, learning, and scaling necessary to make Truss a success. The combination of Molson Coors extensive beverage expertise and HEXO's innovation capabilities in cannabis give us confidence that Truss will deliver safe, consistent, and great-tasting nonalcoholic beverages to meet consumer demands. On our next quarterly earnings call, we plan to discuss Truss's portfolio of brands, which is well advanced currently in terms of retailer joint business planning. Concluding on PACC and driving shareholder value, we are intensifying our focus on better top line performance and are pleased to be returning more cash to shareholders while remaining committed to further deleverage, all within the context of our capital allocation framework of strengthening our balance sheet, returning cash to shareholders, and investing in brand-led opportunities through acquisitions and internal investment.

Thank you, Mark. Just to remind everyone of upcoming events, we do look forward to seeing many of you at the Barclays Global Consumer Staples Conference, where we will also host a webcast at 10:30 a.m. Eastern time on Wednesday, September 4. So with that, Gary, I think we'd like to go to Q&A.

Mark, congratulations on the transition. And Gavin, congratulations on your promotion. Can you talk about what drove the timing of the transition at this time? And then for Gavin, as you look to take over, can you highlight some of the strategic initiatives or actions that you are considering?

Let me pick up both of those. On the first point, there's nothing unusual. When I stepped up and took over from Peter Swinburn, we did it at the same time of the year. It's something that we've been in discussion with our Board because it allows the incoming CEO to really impact the development of our long-range plan, and Gavin will have that opportunity. He'll transition with me over the course of the next couple of months through to the end of September, and then we have our Board of Directors meeting in September and November when we land our long-range plans. This timing allowed me to manage the transition when I came in for Peter, and it will give Gavin a chance to adapt as he steps into my role.

Thanks for that, Mark. Thanks, Amit. I'm going to spend the next few months leading the planning for 2020 and beyond. There will be change, and we need to consider all options that we can take to maximize the future potential of our business and to create additional firepower for our brands. That's what I plan to do.

Gavin, perhaps to follow up on Amit's question. We've seen across our coverage universe, a lot of companies have successfully balanced profit growth for the short term in order to reinvest and reaccelerate growth. I guess as you think about a 3-year plan, is there anything other than deleveraging and cash flow generation that would constrain you in terms of actions that you would take to accelerate top line?

Bryan, I'll reiterate that I'm going to take the next few months to flesh out my plan for 2020 and beyond. We need to consider our options to maximize firepower behind our brands and enable innovation.

Great. Just a housekeeping item, Gavin, do you have a replacement lined up yet? And then second, as you look forward to the Truss joint venture and the opportunity in cannabis and CBD, can you give us a sense of how big this could be for you? How excited you are about the potential? And how much capital intensity could be involved in this if it's successful?

As for my replacement, we haven't identified anyone yet. It's consistent with our historical precedent. As for Truss, we've laid out our intentions to enter the cannabis beverage space. Canada provides a great opportunity to test consumer appetite for cannabis-infused beverages, and we are also monitoring opportunities for cannabis in other geographies.

Robert, I think we've made our intentions clear regarding the cannabis space. Our team is closely watching opportunities in the U.S as well, particularly around CBD. Although there are still legislative complications, we anticipate being ready when the time is right.

Congratulations to both of you. A quick question. Did you provide EBITDA growth guidance for International? Did you share anything for other regions? Also, what were the volumes for Coors Light and Miller Lite combined?

We don't give EBITDA growth guidance beyond International since 2017 due to previous acquisitions and restructuring. However, we expect strong double-digit EBITDA growth for our International business. As for specific volume information on Coors Light and Miller Lite, we don’t provide that level of detail; Nielsen can help with that.

I would echo my congratulations to both of you. Gavin, I wanted to clarify a comment you made about potentially increasing firepower, which might imply brand or asset sales. Can you clarify? And then Tracey, regarding free cash flow guidance for the full year, it implies significant improvement in the back half. Can you walk us through the drivers of that improvement?

I won’t speculate further on potential sales or restructuring. I'm focused on planning for the company’s future.

The first half has been soft, and we expect the second half to perform better. Key drivers include improvement in working capital, lower cash tax payments due to debt repayment, and solid free cash flow guidance aims to be around $1.4 billion, plus or minus 10%.

I'd love it if you could expand on marketing changes brought about by Michelle. How is marketing shifting? Have you noticed increased engagement with distributors about the new marketing plans?

Our marketing has shown improved capability and pace across regions. I’d say marketing performance in the U.S. improved with Michelle's arrival. We've seen good distributor engagement as we launch new campaigns and expand our portfolio.

Steve, the response from distributors has been very positive regarding our new branding efforts and the changes in how we've prioritized our marketing investments to create significant consumer attraction and retention.

To sum up, in terms of pace and initiative, we’ve substantially increased our innovation efforts from the Coors Slice and Cape Line brands to our plans for Truss. These demonstrate our commitment to increased growth and engagement within the marketplace, which has been promising.

Could you provide more details on your volume expectations for the U.S.? Are you calling for about mid-single-digit decline in the third quarter?

In terms of STRs and STWs, we expect them to converge. Our Q2 performance was impacted by unfavorable conditions. The remaining go-lives will help stabilize our inventory distribution going forward.

We're expecting improved sales trends in the second half despite recent performance issues caused by inventory levels and the significant weather impact.

Regarding MG&A increases, how much was allocated to brand building spending, and should we expect this growth to persist?

We don't break down our specific marketing spend, but we anticipated increased spending in Q2 and Q3. Expect our spending levels to continue to rise in alignment with our growth commitments.

Mark, best of luck to you in your next chapter, and Gavin, congrats on the new role. My question is about Europe. I appreciate the World Cup had an impact, but a 3% volume drop still feels significant. How do you see Europe performing going forward?

The volume decline was due to unfavorable weather conditions and impacted demand. We expect the underlying strategy to continue driving growth once market conditions stabilize.

Weather was a major driver this quarter, not the World Cup. Our pricing and mix remain strong, and we're optimistic about returning to previous performance levels.

Regarding the Premier League sponsorship shift, we see it as an opportunity for a broader appeal strategy. Carling has maintained market share, and we believe launching a new marketing campaign will support ongoing performance.

As I look at U.S. beer industry volume trends, there seems to be structural challenges. How are you planning for these trends in the next 3 years? Is it better to expect some degradation for the category?

Competition for consumer attention is high, and our industry needs to evolve rapidly. We’ll need a faster-paced innovation pipeline and must focus on above-premium offerings to adapt to changing consumer preferences.

As the market changes, we will stabilize our core brands and prioritize premiumization strategies to respond effectively to consumer shifts and remain competitive.

What is your strategy for competing in the spiked seltzer category, which is growing rapidly? Additionally, how can your organization operate more efficiently to respond to changing consumer tastes?

We're actively addressing the seltzer space, integrating deeper innovation into our pipeline. We'll also focus on brand differentiation to create a unique presence in the market.

Innovation is key for our future, and we’ve seen successes with Cape Line and Arnold Palmer Spiked while expanding our hard coffee and wine spritzer offerings to attract new consumer segments.

Tracey, as we think about your leverage trajectory, should we still be thinking about 3.75x on a net basis by year-end? Where do you see that ultimately settling out in 2020 and '21?

We expect to end the year below 4x leverage and will continue focusing on deleverage within our capital allocation strategy. We will have higher cash on our balance sheet by year-end as we prepare for future debt obligations.

Gavin, can you talk about your plans for pricing in the U.S.? Is there an opportunity for additional off-cycle pricing adjustments?

I can't provide future pricing strategies, but in Q2, we did achieve significant price growth with positive brand mix, reflecting our premiumization efforts and the favorable pricing environment.

Thanks, Gary, and thanks, everybody, for joining us. Today, obviously, we had some unexpected news for you, which we've chatted through, and Gavin and I look forward to connecting with you over the coming weeks. It has been an absolute privilege to serve as the Molson Coors CEO, and I’ve thoroughly enjoyed engaging with our investors and analysts over the past 5 years. I will see many of you in Boston, and you're likely to have questions for both Gavin and me when we get together in a month or so. But thank you for your time and attention today, and we look forward to connecting with you over the next few weeks and months.