SunOpta's CEO Hosts Annual Shareholder Meeting (Transcript)

May.28.13 | About: SunOpta, Inc. (STKL)

SunOpta, Inc. (NASDAQ:STKL)

Annual Shareholder Meeting

May 28, 2013 4:00 pm ET

Executives

Jeremy N. Kendall - Chairman and Chairman of Opta Minerals Inc

Robert McKeracher - Chief Financial Officer, Principal Accounting Officer and Vice President

Steven R. Bromley - Chief Executive Officer and Director

Operator

Good day, ladies and gentlemen, and welcome to the SunOpta Annual and Special Meeting of Shareholders Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded. Following the legal portion of this call, management will make a number of prepared remarks before turning the call over for questions. As such, we would like to remind everyone that these prepared remarks contain forward-looking statements, and management may make additional forward-looking statements in response to your questions. These statements do not guarantee future performance, and thereof, undue reliance should be placed upon them.

We refer you to all the risk factors contained in the company's annual report on Form 10-K for the year ended December 29, 2012, as well as the company's first quarter fiscal 2013 quarterly report on Form 10-Q that was issued on May 7, 2013, for more detailed discussions of the factors that could cause actual results to differ materially from those projections in the forward-looking statements.

Finally, we would like to remind listeners that the company may refer to certain non-GAAP financial measures during the teleconference, such as in operating income or EBITDA. A reconciliation of these non-GAAP financial measures is included in the company's filing and also on the latest press release dated May 6, 2013.

I would now like to turn the call over to your host, Jeremy Kendall. Please go ahead.

Jeremy N. Kendall

Thank you. Good afternoon, ladies and gentlemen, and welcome to the 2013 annual and special shareholders meeting of SunOpta Inc. My name is Jeremy Kendall, and I'm Chairman of the Board of Directors of our corporation, and I will act as Chairman of this meeting.

I'd like to introduce the persons joining me today: Steve Bromley, our Chief Executive Officer; Rik Jacobs, President and Chief Operating Officer; Rob McKeracher, Vice President and Chief Financial Officer; and John Ruelle, Chief Administration Officer, Senior Vice President of Corporate Development and Secretary.

It's also my pleasure to welcome Mr. Michael Detlefsen who has joined us today. Michael is Comanaging Director of Muir Detlefsen & Associates Limited, and President of Ceres Global Ag Corp. Michael is a nominee for election today to our Board of Directors.

I'd now like to call this meeting to order.

Our Corporate Secretary is Mr. John Ruelle, and he will act as secretary of the annual meeting. We will now proceed with the business of the meeting. If there are any proxies not yet deposited, I would ask that those who are holding sub proxies to deposit them with the secretary now. As Chairman, I rule that all proxies deposited with the secretary are valid. Thank you.

With the provision of the meeting, I will appoint Maxine MacDonald and Jerry Trotter of Broadridge Financial Solutions as scrutineer of the meeting. There's no objection to such appointment, I declare the representatives of Broadridge to be the scrutineer.

The scrutineer has certified that a former shareholders is in attendance in person and by proxy. Scrutineer's formal report will not be available for a moment, and when available, I direct that it be annexed to the minutes of this meeting.

Please note that the voting results for each of the items before the meeting today will be disclosed by Form 8-K, which will be filed with the Securities and Exchange Commission and the Ontario Securities Commission by the close of business tomorrow.

A declaration of mailing of the notice calling the annual and special meeting has been duly filed. And since you have received the notice of the meeting and accompanying materials, I would suggest that a resolution be moved dispensing with the reading of the notice and accompanying materials at the same be taken as [indiscernible].

Unknown Executive

I move that the reading of the notice and accompanying materials be and the same are hereby dispensed with and that's for all purposes of this meeting, the same notice and accompanying materials be taken as having been read in full at this meeting.

Unknown Executive

I second the motion.

Jeremy N. Kendall

All those in favor, please signify by raising their right hands.

[Voting]

Thank you. I declare the motion carried.

Service of notice calling the annual and special shareholders meeting has been duly approved. And a quorum being present, the meeting is regularly constituted and properly constituted for the transaction of business as set out in the said notice.

Previous meeting of the shareholders was held on May 17, 2012. At the same time, I suggest that a resolution be moved dispensing with the reading of the minutes of the said meeting and taking them as read and approved.

Unknown Executive

I move that the reading of the minutes of the previous meeting of the shareholders held on May 17, 2012, be in the same as hereby dispensed, and with that, the minutes be taken as read and approved.

Unknown Executive

I second the motion.

Jeremy N. Kendall

All those in favor, please signify by raising their right hands.

[Voting]

Contrary? I declare the motion carried.

I have before me the annual and audited consolidated financial statements of SunOpta for the year ending December 29, 2012, approved on behalf of the Board of Directors of the corporation.

Should any shareholder wish to receive a copy, it may be accessed on our website at www.sunopta.com, under the Investor Relations tab. Should you wish to receive a hand copy, please go to the following web link, http://investors.sunopta.com/investorkit.cm

It's now in order to proceed with the election of directors for the ensuing year and I declare the nominations open.

Unknown Executive

I nominate the following individuals: Jay Amato, Steve Bromley, Michael Detlefsen, Peter Fraser, Douglas Greene, Victor Hepburn, Katrina Houde, Jeremy Kendall, Alan Murray and Allan Routh to hold office until the next Annual Meeting of the Shareholders or until their successors are elected, subject to the provisions of the corporation's bylaws.

Jeremy N. Kendall

Thank you. All directors have been nominated. Are there any other nominations?

Since there are no further nominations, I declare the nominations closed. Based on results provided by the scrutineer, all nominees have received more votes for and withheld, and those are deemed elected as per the company's bylaws.

As a result, I declare the individuals nominated to be duly elected directors of the corporation to hold office until the next annual election of directors or until their successors are duly elected or appointed.

This time, I would like to formally recognize Cyril Ing, the director of the company for the past 28 years. Cyril did not stand for reelection this year. During his tenure on the board, our company transformed from a small technology-based company to one of the world's largest players in integrated, natural and organic foods. We're fortunate that Cyril will remain available to the company on a consulting basis, but we do want to recognize Cyril for the passion, dedication, friendship, loyalty and vision that he has provided us over the years. Cyril, thank you very much.

I'd also like to formally welcome Michael Detlefsen to the board. I'm sure that Michael's broad business and academic experience, especially in the food industry, will be a true value to our company. We look forward to working with him. And welcome aboard, Michael.

It is now in order to consider a special resolution to amend that the articles of incorporation and the manner and for the reasons discussed in greater detail in the proxy statement in respect to this meeting. By the way, Susan has a resolution in this regard.

Unknown Executive

I move that the articles of incorporation that the corporation be amended to add the following paragraph to item 7 of schedule 8 to the article: A, the directors are authorized to fix the number of directors to be elected by the shareholders within the minimum and maximum numbers set forth in these articles and are further authorized to appoint one or more directors who shall hold office for a term expiring not later than the close of the next Annual Meeting of Shareholders, but the total number of directors who are appointed may not exceed 1/3 of the number of directors elected at the previous annual meeting of shareholders; b, any director or officer of the company is hereby authorized for and on behalf of the company to execute and deliver all documents and to do all things necessary or desirable to give effect to such amendment, including the delivery of articles of amendment; and c, the directors of the company are hereby authorized to revoke this resolution without further approval of the shareholders at any time prior to the endorsement by the director under the act of the certificate of amendment of articles in respect of the -- in respect of such amendment.

Unknown Executive

I second the motion.

Jeremy N. Kendall

All those in favor, please all signify by raising their right hand.

[Voting]

Contrary? I declare the motion carried.

The next item in the agenda is the approval of the 2013 stock incentive plan, which reserves for issuance a total of 1,250,000 shares, plus any remaining shares available for grant under our 2002 stock option plan, and any additional shares that may become available for regrant under the 2002 stock option plan.

Unknown Executive

Mr. Chairman, I move that the 2013 stock incentive plan in the form appended to the proxy statement in respect to this meeting with reserves for the issuance of 1,250,000 shares, plus any remaining shares available for grants under our 2002 stock option plan and any additional shares that become available for regrant under the 2002 stock option plan; b, and the same is hereby approved and adopted by the corporation; and d, any director, officer of the company is hereby authorized to take all such steps, actions and proceedings and to sign, execute and deliver all such documents that such director, officer may in his or her discretion determine to be necessary or desirable in order to get full force in effect to the intent and purpose of this resolution.

Unknown Executive

I second the motion.

Jeremy N. Kendall

All those in favor, please all signify by raising their right hand.

[Voting]

Contrary? The motion carried.

Next item in the agenda is appointment of the independent registered accounting firm and auditor of the company for the ensuing year. I believe that Rob McKeracher has a resolution.

Robert McKeracher

I move that Deloitte LLP chartered accountants be appointed the independent registered public accounting firm and auditor of the company until the close of the next annual meeting of shareholders, and that the audit committee of the Board of Directors be authorized to fix their remuneration accordingly.

Unknown Executive

I second the motion.

Jeremy N. Kendall

All those in favor, please all signify by raising their right hands.

[Voting]

Contrary, I declare the motion carried.

The next item in the agenda is the approval on an advisory basis of a resolution relating to the compensation of the company's named executive officers. I believe Karen McBride has a resolution in this regard.

Unknown Executive

I move that the company's shareholders approved on an advisory basis the compensation of the named executive officers as disclosed in the company's proxy statements and the 2013 annual and special meeting of shareholders pursuant to the compensation closure rules of the Securities and Exchange Commission, including the compensation discussion and analysis for the 2012 summary compensation table and other related tables and their discretion under the executive compensation caption.

Unknown Executive

I second the motion.

Jeremy N. Kendall

All those in favor, please all signify by raising their right hand? [Voting]

Contrary? I declare the motion carried.

There being no further business and a promotion been duly made, we have a motion for a termination of the legal portion of our meeting?

Unknown Executive

Mr. Chairman, I move that the annual and special meeting of shareholders is hereby terminated.

Unknown Executive

I second the motion.

Jeremy N. Kendall

I declare the motion carried, and thank you. This completes the legal portion of our meeting today. I'd now like to turn the meeting over to Steve Bromley, Chief Executive Officer of SunOpta, who will provide a brief update on the company. Steve?

Steven R. Bromley

Well, thank you, and good afternoon, everyone. Welcome to our 2013 annual special meeting for shareholders. Since we reported our quarterly results not too long ago, I'm going to keep this update today relatively short. But to start, I want to share a video with you, the details of our company's activities, people and products.

[Presentation]

Steven R. Bromley

So the video said, at SunOpta, we believe that healthy living and healthy eating are key to long-term global trends. Demand for healthy food alternatives continues to grow as a result of many long-term trends, many of those which are very prevalent in today's society and increased interest in health and wellness as consumers are connecting the dots between your diet and your health, aging populations, disease, from heart disease through cancer, through obesity, juvenile diabetes, these are all trends that are coming together to really help drive the natural organic foods industry and the wellness industry. And as a company, we're really well positioned in those growing categories.

We take great pride in bringing well-being to life as our tagline indicates, and we're confident that our integrated field to table approach, which is really unique in this industry, positions us really well for long-term growth. There are a very few companies in this industry that are integrated from field to table in core natural organic products as we are. So we think that it really positions us well for an exciting future.

2012 was a strong year. We realized record revenues and we realized record earnings. We were really pleased with those results and believe that they clearly demonstrate the progress that we're making, as we continue to work towards achieving our margin targets of 8% operating income, 10% EBITDA margin and 15% return on net assets margin.

And while we're not there, 2012 certainly indicated the progress that we are making as we continue to focus on the core strategies that are going to allow us to achieve those objectives and in doing that, drive long-term shareholder value.

So we're focused on 3 core strategies, which guide our activities and which we believe will lead to the creation of long-term shareholder value. These core strategies include becoming a pure play natural organic foods company, aggressively growing our value-added ingredients and packaged products portfolio and leveraging our integrated natural and organics platform. It is around these strategies that all of our efforts are focused on around, which we're using to really guide the company into the future.

So in becoming a pure play natural organic foods company, during 2012, we sold Purity Life natural health products based in Acton. It was our natural health products distribution business. And as we started the process in 2010, we deemed that product distribution was not core to our field to table, integrated field to table product portfolio, and thus we were disposed. So that concluded the sale of the Canadian food distribution business and exited SunOpta from the distribution business. And what that did was allow us to continue to focus more on our core integrated model, strengthen our balance sheet and really positions us well for future growth.

Also last year, well, right at the end of last year, we acquired a value-added grains handling and processing facility in Silistra, Bulgaria, one of the key organic growing regions in the world. The facility was a strategic supplier for our company, producing value-added sunflower kernel, oil and related byproducts. And so this acquisition further expanded our sourcing platforms and value-added ingredient offerings.

Also during 2012, Opta Minerals continued on its growth trajectory with the acquisition of Babco Corporation in Regina, Saskatchewan, an industrial process or petroleum coke, synthetics slag, ladle sand and crushed graphite, and late last year, acquired WGI, a Canadian based global -- Canadian-based global processor of industrial abrasives, primarily in Coeur d'Alene.

So we continue to assess options as well for our 2 non-core businesses: Opta Minerals and OSCO Mascoma Corporation, and we do expect that we will be able to translate these into tangible value which will subsequently will reinvest it in our food business over time.

On aggressively growing our value-added packaged foods and ingredients portfolio, over the past year, we expanded our portfolio of value-added ingredients to include rice fiber, very important because gluten-free is such a key trend today and rice fiber is gluten-free. Cellulose fiber, we launched the specialty starch design for use in yogurt and other dairy foods and specialty food and Greek yogurts, which have grown dramatically. We launched soy and sunflower pastes as a value-added ingredient, excluded non-GMO grain meals for use in many foods, and the demand for those are really being driven by the awareness around GMO and the move to non-GMO ingredients. Then we have launched others. These were developed internally and we're excited to get these to market. It normally takes 6 to 12 -- potentially 18 months for these to make their way into the market. And so we're getting well past 6 months now and hope to see some real traction with these product offerings.

On the consumer package side, during 2012, we completed an expansion at our Modesto, California aseptic processing facility, where we installed the second processor to increase capacity and thereby about 50%. We're adding further aseptic packaging capabilities now at both our Modesto, California and Alexandria, Minnesota facilities with the installation of multi-serve fillers that would do the court size at both locations. And these new fillers will bring a new format in the packaging to the marketing. We'll be the first to provide that in our America, so we're quite excited by that.

We're also adding a single-serve filler that does 200 ml to 250 ml product size at the Modesto, California facility, also in the new format to meet the growing demand for portable and nutritious foods. Single-serve products are affordable and nutritious, continue to grow quite rapidly, because consumers are looking for convenient portable, fast and on-the-go nutrition. Thus, well in the past, we produced these products through using third parties, where we'll actually produce those ourselves.

So we expect to bring these new packaging capabilities online early in the third quarter, actually, the single-serve really late in the second quarter. And at the same time, we're going to expand beyond our traditional nondairy category. So we've been very big in soy milk and rice milk and almond milk, hemp milk and sunflower milk, but we're moving beyond that into nutritional beverages, into dairy, into juice. Oh, we've always had broth, so we'll continue to drop that. Or as we expand our capabilities, we expand the types of products that view produce, all the while leveraging our integrated sourcing capabilities that we have in place.

Also in demand and in response to continued demand for healthy foods, we really entered the resealable pouch business in a big way in 2012. So that's your typical resealable pouch with a screw-up top. That happens to be a baby food application, but this is a concept that's growing really quickly around the world. Consumers are replacing jars and bottles and cans with convenient paper type products such as this, and so we've entered into that category. We now have over 80 million pouch capacity within our system. We started a new plant last year in Allentown, Pennsylvania. We built the plant to be able to accommodate 8 of those packaging lines, each line does around 20 million units. We commissioned 2 late last, sort of in the third quarter last year, we have 2 more lines coming online early in the third quarter this year. So 4 lines in the East Coast complementing 2 lines that we have operating at the facility on the West Coast. And the demand continues to grow. So as the demand continues to grow, we're looking at East and West Coast opportunities to continue to grow. This category has grown rapidly in China and in Europe, and again, it's all about portable convenient nutrition, utilizing our integrated platform.

So we're really excited about where that -- where the pouch business is taking us, and we started with that business in organic baby food. We've moved beyond organic baby food into fruit snacks. We're moving into nutritional products into beverage. There's just a multitude of formats that we see that going, all the while leveraging our integrated capabilities.

And finally, we're building a value-added organic cocoa facility in the Netherlands, not too far from Amsterdam. The facility will be known as the crown of Holland. A number of the directors and senior management toured the facility a few weeks ago. It's going to be a state-of-the-art organic cocoa facility, very flexible and adaptable, smaller, but really what we need to continue into that business. So we will be able to process our own internationally sourced cocoa beans into liquor, butter cocoa liquor, that is, not liquor, liquor for you guys. Now it's getting your cocktail out, butter and powder, then we'll provide needed capacity to accommodate our growing cocoa business. That should come online also in the third quarter.

And when we talk about leveraging our integrated platform, early in 2012, we restructured our operating statements to better align with our go-to-market strategies. And in doing so, we reduced our salary workforce by 6%, driving about $3 million in cost out of our business.

As a result, we now report our SunOpta food group business based on 4 segments: Grains and Foods, ingredients, consumer products and international foods, and we'll continue to refine those segments as we align the business around raw materials, value-added ingredients and consumer packaged products. As we tell the investment community, that's how we run our business, we are realigning internally, so that we'll report our business in the same manner. And so we're working hard at that as well.

And then what's growing our top line, we continue to pursue cost reductions and efficiencies across our operations through continued focus, continuous improvement efforts. And with our consolidated systems now in place, we have many of our back office functions consolidated from finance through information technology through human resources. So we're now in a position to be able to leverage that as we grow our business.

Our 2012 financial results, as I mentioned, were a record for the company. And while we're pleased with these results, we expect continued improvement as we execute on our core strategies in support of our earnings targets that I mentioned previously. Fiscal 2012 was a record year. We generated revenues of $1.09 billion, a 7% increase versus 2011. I don't have to tell you that it wasn't many, many years ago that we sat down and had this dream that we could be a $1 billion company. And here, we find ourselves with $1 billion, talking about how are going to be $2 billion and $3 billion. So we're very, very proud of that.

In 2012, we realized operating income of $47 million or 4.3% of revenues. That was 100-basis point improvement versus the prior year. The increase in sales, combined with operating leverage improvement, enabled us to report a 357% earnings increase to a record $24.2 million or $0.36 per share versus $0.08 per share in 2011.

In just a few weeks ago, we announced our first quarter 2013 financial results, which were in line with our expectations. We increased revenues approximately 9% to a record $283 million, and this was on top of what was a record first quarter -- in the prior year with $259 million of revenues. The increase in consolidated revenues was driven by strong demand and increased prices for organic grains and feeds, continued growth at healthy consumer products, the aseptic beverages, the resealable pouch products, et cetera, which is going well. Now we also had higher sales in Opta Minerals due to the acquisitions that we've completed last year.

Operating income for the first quarter of 2013 was $10.7 million or 3.8% of revenues, an increase of 110 basis points over the fourth quarter of 2012. Earnings for the first quarter were $5.1 million or $0.08 a share versus $5.9 million or $0.09 per common share in the prior year. We'd note that this year, we had $1.2 million in pretax cost related to these plant start-ups and all that paperwork that we're doing, so that will carry for about $0.01 a share or $700,000 actually after-tax and minority interest.

And our balance sheet remains strong. We have total assets now of $715 million, a net book value of $5 per share and a net debt to equity ratio of 0.58 to 1 at the end of the quarter. So our balance sheet is in really good shape.

During 2012, we refinanced both of the credit facilities that serve our core foods business to increase borrowing capacity. This increased capacity, along with improved operating margins, strong cash flows and a strong balance sheet, positions us well for future growth and provides added flexibility when assessing strategic expansion opportunities. We were very focused on internal growth projects and acquisition opportunities, as we continue to build our position in fast-growing global markets.

And we completed our second annual corporate social responsibility report. This report detailed our progress that we made versus our 2011 sustainability goals and reinforced our commitment to becoming an increasingly sustainable organization. We streamlined the foundation of our 2012 report to align with our key sustainability platforms, addressing social, environmental and economic impacts.

As a leader in the natural organic -- in the natural organic and healthy foods, we recognize our responsibility to continuously improve our sustainability practices. Our framework for sustainability is well defined and has a platform for us to continue to embed sustainability across our organization.

As we reflect on 2012, we are pleased with our record results and we are confident that we can successfully grow the top and bottom lines of our business. This confidence is the result of our positioning for growth in the global healthy living and healthy foods space, combined with the solid progress we've made on executing our core strategies.

And in closing, we wish to thank our shareholders for their ongoing support, our employees for their hard work and dedication, our valued customers for their business, our suppliers for supporting our development and our Board of Directors for their guidance.

With that, we will open up the meeting to any questions that you may have. The operator will provide instructions if you're on the phone. And if you're in attendance, when we get to you, please introduce yourselves and please feel free to ask a question. And with that, I'll turn it back to the operator. Thank you.

Question-and-Answer Session

Operator

[Operator Instructions]

Jeremy N. Kendall

While, that's going on, if anyone has a question here, we can -- David.

Unknown Attendee

I was reading in the global [indiscernible] news section today actually, all I see is looking to impose quotas for female directors, and I noticed we have one. That's been that way a long time, I think, quite a while anyway. I'm wondering if you have any thoughts about that.

Jeremy N. Kendall

Yes, listen. I can tell you, one of the articles, one of the amendments was to allow the board flexibility to add directors during the year without coming back to the shareholders. And one of the reasons for that, as we clearly laid out in our proxy, is that we want to continue to increase the diversity of the board. So that I can -- I shouldn't speak just for the board, but the board is keenly aware of that, and we're looking to add the best board members at all times, and hopefully, there will be females.

Unknown Attendee

Not to be argumentative about this, but of course, we always wanted the best, but don't studies show that female board members, generally female-run companies that have very strong results. And it just seems to me that maybe beyond the intent of having good people. That we could [indiscernible] a little further to it.

Jeremy N. Kendall

Yes. I think you'll see the board move in those directions. But I can tell you from a management committee point of view as well, David, we have no females on our management team. And we've just hired a new chief human resources officer, a female, and we promoted internally. Our Vice President of risk management, internal audit, female as well. So for those exactly, I agree with you, yes. The average board, by the way, in the study that was completed by Spencer Stuart was about 20% right now of the board...

Unknown Attendee

Of the Canadian boards? The Canadians are not good on the scale.

Jeremy N. Kendall

Yes, okay. So other questions?

Unknown Attendee

Can I ask another question? Looking at that, I run a couple of miles most days, usually with a bag in my hand, always with a bag in my hand, picking up trash. I notice we're heading heavily into the packaging business here. Is there any possibility or any contemplation that somehow making the packaging, I don't know, somehow able to disintegrate under the sun or something? I think in one of those lines?

Steven R. Bromley

There is a company that does that already. It's called Eco Clima, but it's a very, very [indiscernible] application of our service and we have to be inside it. And I imagine, because we don't want this packaging to start deteriorating. [indiscernible] as much as I do.

Unknown Executive

Well, no, of course, no. [indiscernible] and I also found out more and more of the companies are moving to more and more recycled content in the bottles [indiscernible] the Coca-Cola plant bottle and things like that. So I think that is one direction, and the other direction, of course, is to start making it more it with more plant-based materials, which we don't make plastic bottles from [indiscernible], for example. But that's not [indiscernible] ethical debate [indiscernible] strive for more expensive [indiscernible] do you use it for, [indiscernible] for ethanol or [indiscernible]

Unknown Attendee

[indiscernible] reusable pouch, what material do we need?

Unknown Executive

I think it is mostly foil, but plastic [indiscernible] in the inside and the outside. So [indiscernible]

Steven R. Bromley

And there are certainly [indiscernible] the plastics aren't uncertainly perfect, but when you take a look at the lifecycle analysis, like they're a lot better than a kind of a jar from a transport point of view, like the whole lifecycle is better, but they're certainly not perfect by any stretch of the imagination, but they're trying to balance getting people product quality before into your shelf life [indiscernible] with extended shelf life.

Unknown Executive

I believe that there are lower energy requirement than producing glass bottles.

Unknown Executive

Yes, sure.

Steven R. Bromley

That's an improved, and of course, you don't end up with nearly as much modest product, material product because when you open the jar and the air gets into it, where the air does not get into this, trying to packaging, so there is a plus there as well.

Steven R. Bromley

Are there any questions from anybody right now? Operator, any questions?

Operator

I'm showing no questions on the phone line.

Steven R. Bromley

Great. Well, just to wrap up, thank you very much for attending. Thank you to our advisors who are here. Thanks to our employees who are here, shareholders who are here. Much abbreviated all your support, and we look forward to speaking with you on the next earnings call, and if not, before. And thank you and have a good day.

Operator

Ladies and gentlemen, thank you for participating in today's conference. This concludes our program. You may all disconnect and have a wonderful day.

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