EMERGE Commerce Ltd. (ECOM) Earnings Call Transcript

Awesome. Thank you, Mike. We thought that it would be nice to sort of illustrate a couple of slides that kind of focus on the long term on the big picture impact and really a dramatic shift of this refinancing. So this is sort of a slide. Again, this is illustrative. And just because I think investors have -- sometimes we, frankly, are caught up in the day-to-day and the quarters and all of that. It's important to take a step back and really appreciate what we're talking on what's been captured here under this refi. So this is sort of a 7-year lens of how, as Mike mentioned, given the $400,000 or so in cash flow savings that we get from the refi, now between that and of course, in addition to our growing cash flow from the business, we're in a position to start knocking off this debt incrementally year-by-year over a 7-year period. Will it happen exactly this way? Maybe, maybe not, right. This is sort of the schedule that we set up with Desjardins, which by the way, as you may notice, is sort of staged amortization. So it gives -- it's less pressure on us in the earlier years. And then as we grow, we pay down more debt because we have more cash flow and more time has passed, we probably would have made more acquisitions, our EBITDA is higher, et cetera, et cetera. But it gives us a chance to start noting off that in a very responsible way and bringing the overall debt down to 0 based on this current setup. And of course, if we end up adding more cash flow for whatever reason, we may decide to go faster. And at the end of the day, I think this is just sort of a framework that we've now set up that gives investors the visibility too on how we start paying down this debt over time, reducing further interest costs, gaining more cash flow and pouring it back into growth and into opportunistic acquisitions. And so the numbers at the bottom here, the $2.3 million in interest savings and ultimately the $3.6 million in total estimated savings are based on a very simple illustrative example where we're assuming much like for the past 6 years, we've generally had no amortization or debt pay down payments along the way with our prior letter. It was an alternative lender, and we would only pay interest every year. And after a year to 18 months, we would renew the cycle, but we would keep the debt fixed. So $5.85 million has been the debt we've been on for a few years. We paid that down once we got there in early 2024 versus now with Desjardins, we're going to start paying down this debt methodically as the years go by. And so the example here is comparing on paper what our schedule is with Desjardins versus assuming we had kept the 5.85% first 7 years at 11% interest, right? So essentially, we are kind of taking this big picture view to illustrate to investors the sheer savings and improvement in cash flow as the years go by. The next slide is sort of just mapping, as you guys may be aware, the #1 thing debt and bank lenders look at is sort of where your debt is not an abstract, but actually against adjusted EBITDA. That is sort of a universal thing, not only in Canadian banks, but banks and loans around the world. The debt to EBITDA is the Holy Grail kind of thing. And so if we kind of take a step back, it's really remarkable progress that the team has made over the years. Obviously, when we went public, we ran ambitions. We took on a huge debt facility. It was a very low interest rate environment. But then that crept up very quickly as everyone knows, by 2022. And essentially, what you're seeing here is the debt facility [indiscernible] facility that is, was $25 million at the peak pretty much within a year of us going public. And at the time, the official number we reported for EBITDA was $1.2 million in 2021. Obviously, as you all know by now, we've had to restructure the company, sell off noncore businesses, pay down a bunch of debt and reset and reignite growth. And that is exactly what we accomplished. If you look at EBITDA, obviously, dipped to negative $0.46 million, so almost negative $0.5 million in 2024, but we have brought down the debt. That was the big step one, was that this the overall quantum of debt came down, but we lost a bunch of EBITDA by selling some really recall businesses, which is a tough decision we had to make at the time. But by focusing on the businesses we kept and doubling down there and starting to -- in an improving interest rate environment, we were able to obviously leverage both operations organically and through acquisitions that were very, very accretive and credit to the team for executing on T2Green and now more recently, Viral Loops, which isn't fully captured here. But now we're in a situation where we have $5.85 million senior against $1.6 million in EBITDA, TTM. However, obviously, that doesn't capture still the next couple of quarters, Q3, we report later in November, but we normally come out with our preliminary results in October. And that is expected as the trend has been, we expect that, that will hopefully continue to beef up our EBITDA levels. And against that same number of debt today, which we will start paying out in future years, as I articulated in the prior slide. And then the ice on the cake and frankly, maybe more than that because it's probably the main draw here is interest rates, for us, at least, have gone down from a peak of 13.75% to 11% as of prior to yesterday, last week, I would say. And now we're on a 7.3% rate as of today based on the prime rate that Mike shared under Desjardins. That is a 3.7% reduction against the 11% and 1 of the investors, funny enough, brought up to me, Ghassan, that's not a 3.7% reduction. That's actually a 34% reduction in actual math. It's actually a 3.7 percentage point reduction. So I wanted to point that out too. I'm sure investors understood what we meant. But actually, we've probably really done ourselves at this service by not highlighting the sheer amount of improvement. And then we are 6.5 percentage points less than the peak rate. So that goes to show you how far we've come. But that's not just our negotiations and our efforts, it's the actual business that's doing the talking. It's our financial progress. It's our improved not only revenue, margin, EBITDA, net income, cash flow, cash position. It's all of the above coming together at exactly the same time, and as I say, Viral Loops sort of coming in, in that last couple of quarters to add the extra EBITDA we were looking for to get the lender in this case, Desjardins, to the finish line so that we could secure these incredible savings. Okay. A couple of quick slides to wrap up and jump into Q&A, which reminds me. If you guys have any questions, now it's a good time to start logging them into the Q&A. We received a couple of questions from the investor and EMERGE brands e-mail, but you guys can log them in here in the portal. And I'm seeing 36 participants today right as of this moment. So that is great that you're all taking the time to be with us today. Quickly on share price and cap table. Main thing I want to bring your attention to is with sitting at $0.085 share price as of close of yesterday. We were at a market cap of about $15 million on 180 million shares outstanding, fully diluted, $207 million, and our enterprise value, net of our debt and cash is $18.6 million. And the main thing I wanted to bring up there was that as we start paying down debt, and this is for the finance practitioners -- I myself, I'm an ex investment banker, so I can't help but think this way. But from a pure hypothetical or optical perspective. The idea here is if for nothing else, us starting to pay on the debt with Desjardins as we plan to is hopefully going to mean that or should mean that more of our enterprise value is going to be captured under the equity value under the share price side of things. Hopefully, sometimes theory doesn't happen overnight or doesn't happen exactly as it's supposed to, but that's the theory. And we're excited about the logic that we are going to be continuing to pay down debt while continuing to grow our business. You've heard about me and Mike, so I won't go there again. But I may now spend just another minute on Mike mentioning the fact that he actually -- one of the things that made him very attractive to us as a candidate back in April, May was the fact that he's been there, done that. Mike has come from a public company that's since gone private that was a $20 million revenue business at the time he joined and scaled the finance team to $150 million run rate by the time he left. There were other prominent names involved in the story after including Fax Capital and other recognized name. So it's a big name. And Mike's obviously, notably, I should say, also has worked on really -- if I thought the EMERGE restructuring was tough, and Mike was on in Durham, which was a piece of work from -- if anyone knows anything about that story for him to have endured and been involved and experienced that was very attractive to me to see them go through the hardship albeit we're past the hardships, we're ready to play offense here and that's why we decided to invest in a talent like Mike. I also want to highlight Maurice Finn, who is really a silent assassin and background on the operational front. He's had a tremendous track record operating T2Green to 39% growth in EBITDA in its first -- sorry, revenue growth in its first year and 59% adjusted EBITDA growth both in that year 1. We're very pleased with T2Green and what it's meant for us. I've negotiated the deal and spent time with it. But once we close that deal, it was all Maurice and the team executing. He's done a phenomenal job there, and he's done extremely well with just go stuff and previously with WagJag, which we sold for a purchase price. I want to highlight our 2 additional board members. I'm a Director of the company, of course, but Ian McKinnon is our [indiscernible] of EMERGE and also leads the compensation and governance committees. Ian notably was on the Board of Constellation Software. 1 of the mega technology success stories in Canada, I think the second or third most valuable company even after coming down from $90 billion or $100 billion to $50 billion or $60 billion, but who's counting. But Ian comes from a remarkable ground and a very patient long-term view on things. He's been a tremendous mentor to myself and now more recently to Mike, in helping think through structuring, governance and setting us up for incentive and long-term success for the company to grow up. John Kim, who is on our Board pretty much since the go public is also another independent director and leaves the Audit Committee. Notably John is a founding or an early Board member with well Health and that's another terrific Canadian story, $1 billion roll-up in HealthTech. And I will say also for what it's worth, this is a team every single 1 on here that's aligned, that's long term. None of us have ever sold a single share. This is all public knowledge. I've purchased north of $150,000 through the years in e-com, never sold a single share. John Kim recently invested $50,000 at the Tencent private placement round to close the Viral Loops transaction in Merck. Again, we are long, we are strong, and we are united and aligned around what we're trying to achieve here over the long run. Speaking of priorities for this year, they're boring, right? There's 3 of them. Continued operational execution. We hope our Q2 $1 million EBITDA quarter, $9 million revenue quarter, best quarter in our view and numerically since '21 since the early go public years from a pure -- hadn't hit $9 million in a long time, hadn't hit $1 million since late 2021. So I think we're starting to see these numbers come together. Keeping in mind, we're also making investments, people like Mike and in systems because this is not -- and this is no longer just a little basement situation where we're restructuring things. We are now back to growth. We've made 2 acquisitions over the last 15 to 18 months, and we're looking to do more and play offense more. AI is becoming a bigger topic at the risk of sounding buzzy. I'm not going to spend much time on it, only to say we're taking it seriously. We're spending time on systems, we're enhancing. We're automating where we can, and we're finding growth and savings opportunities. In terms of accretive acquisitions, Viral Loops meets criteria. It was an opportunistic deal. It was a cash flow deal. It's enhanced our margins and it's enhanced our bank account. And thirdly, our goal was to reduce debt and interest expense and enhanced cash flow. And we're very pleased to share that we substantially -- we've secured a substantially cheaper, longer-term facility with Desjardins. This is a slide on just sort of our comparables. It's very hard to find exact comparables in Canada and small cap. So we have a broad list of with the caveat that some of them are a bit out there and a bit different and a bit different size. At the end of the day, I like to say, look, however -- and I encourage investors to do this exercise themselves. Whatever comps or peers you look at, if you choose 8 or 10 of them, and this is again my banker hat, you're going to find it very challenging to find EMERGE anywhere near what many others are valued. And in our case, sort of approaching the 0.6x revenue for 2026, 9.5x adjusted EBITDA. I don't like to comment too much on share price in every little detail, but I'd like to kind of an abstract talk about what I think was holding us back for a while because a lot of times I get the feedback that, hey, the P&L, the results are solid. They're consistent year after year, quarter after quarter. And I like to think that perhaps some of the feedback I've gone along the way as people were trying to unground the balance sheet more. The P&L wasn't the issue. And I really feel we've done a great job and really sort of a knockout blow here in terms of bringing a big name, a long-term facility, a cheaper facility and a plan that we're articulating to methodically pay down debt and grow the business very responsibly. So hopefully, investors take that into account and do their own math and their own comparable analysis as well as to where it sits and what it would look like at "Their version of fair value." Last slide before we jump into Q&A. So another reminder if anyone wants to throw in some Q&A now is a good time. This is sort of as we think about how EMERGE evolves over the coming years and we plot our path from $30 million revenue to $100 million -- to $200 million revenue and $2 million EBITDA, sub $2 million EBITDA like we're on track to achieve to $20 million EBITDA. And as we think about this, I wanted to highlight sort of the key tenants right now in the key areas of growth, truLOCAL and the Golf business both phenomenal opportunities with great runway in their own right. And now Viral Loops, the B2B sort of cash machine in the background, asset-light, low seasonality. And so this idea is that we really like, for example, what we've done in the recent acquisitions in terms of pricing and so forth. And I think that as we go through this, 1 thing is for certain, we're not going to buy anything that risks the house. We're not going to be irresponsible. We're not going to take debt right now, right? We're not looking to add more debt. And we're going to buy stuff that fits what we're doing. And there are reasons that we do it. That goes back to the first thing I said today, which is it's very important to us. It feels -- we're proud of the fact that we can say we articulated what we wanted to achieve on the debt refi, on the accretive acquisition and bring the business back to growth. People have watched us now for a few years, delivering on our promise. And so now when we say we're going to be responsible. We're going to buy stuff that fits. We hope we can take that seriously. We didn't clean this up for nothing. This is a new look. It's a new EMERGE. We've learned from our mistakes, and we are united in our mission here to drive the shift forward. With that, I would like to open up to questions. Thank you very much, everyone, for listening.

So I'm going to take a moment here. As some of you may have noticed, we don't have an IR company running around doing this stuff for us. We keep it scrapping and which reminds me, you should all check out EMERGE-brands.com. Our new corporate site which we brought in-house recently. So we've cut the third party that runs the corporate side because we feel like there's no point in paying annual fees to third party when we could build it ourselves 1 time forever. So check that out, by the way, it's a nice facelift that the team did, but more importantly, it's free forever. Okay. We've got a couple of questions here on the Zoom that I wanted to share, okay. So first 1 is what are the conditions for the working capital line, are you -- so that's in reference to the $1 million revolver, by the way. Are you able to take advantage of it as needed at all times? Or are there certain requirements? Mike, why don't you handle that one?

Sure. Yes. So this is a -- it's a good question, and it's a good news story. So we were able to negotiate the line of credit to be available immediately. It functions just like a overdraft facility. I'd say this is a great example of the partnership with Desjardins. We told them what our seasonal needs were and they were able to deliver in the negotiations. The next few months are a great example of seasonality impacts us. It's a big inventory purchasing period for the golf vertical, and we now have some additional flexibility for that. And I should mention that if we were to go or need to go above the $1 million, there is an asset-based methodology to get more funds. That's not as flexible, but it's an option that's out there.

Thank you, Mike. All right. So we got another question, also anonymous. You've guided to roughly $400,000 of year 1 cash flow savings. How should we think about the allocation of those savings between debt reduction, organic investment and potential acquisitions? It's a very good question. And it's 1 -- it's a type of conversation we're having with management and our Board. To give you sort of early guidance. I think our number 1 priority is like we've -- and we kind of alluded to this in the PR yesterday. Certainly, those savings are meant to start reducing the debt. So I would say that's the #1 priority is as we think through this build up that work. And first things first, let's bring down that debt while our EBITDA is going up. Let's improve our debt to EBITDA to the maximum level we can. And let's also remember that reducing debt reduces in further interest expense and ultimately is as good, if not better, than an acquisition. So step one, I would say is primary debt reduction responsibly. Secondary, I also think through Wayne, I would put organic growth and acquisitions in the same bucket of comparison because we got to always weigh if a certain amount of cash is available. If we invested in organic growth, I'll use an example, acquiring customer truLOCAL or opening more roadshows for T2Green. We have to decide, is that better spent than maybe buying an opportunity acquisition that as an example, T2Green was phenomenal, 2.2x EBITDA acquisition. About $1 million in EBITDA. We grew that $1.5 million within a year. I can't do that on organic. However, sometimes organic opportunities selectively, maybe very enticing, and it also depends on the quantum of cash we're talking about. So we think we're going to have to weigh organic and acquisitions, but I think that -- we start with debt reduction as we think of it and the acquisitions, we're always looking for opportunity. We're always looking for the next T2Green or Viral Loops. Another question is, this is -- maybe I'm going to just say to this investor says what are Ghassan and Mike and Maurice's email? Please e-mail investor@emerge-brands.com, and we will provide those e-mails. Thank you. Sorry about that. How should investors think about the remaining convertible debenture now that the senior refinancing is complete. Is the expectation, repayment extension, conversion or another solution? The color I can share on this 1 is maybe also a little bit of background. The convertible note holders originally had about $2.8 million in a debenture that was done years back. And in early 2024, when we sold off the wholesale pet business, paid down the debt, refresh the business, our message to them was we're embarking on this refresh, and we were fortunate to get their support, and they converted $1.4 million back then in 2024 at $0.135, which is the exercise price of this note. And so they were left with about $1.39 million, give or take. And these noteholders are good people. They're supportive and they've been patient. And we're in touch with them. Obviously, there's only so much I can disclose. We're not going to give any color yet. Obviously, it's something that we feel is important. We want to make sure we find a win-win and a supportive situation. They've been good people to us. And we've been delivering on things we promised them operationally. So I'm optimistic and hopeful that we're going to find a way for it. I think -- but just to sort of align with big picture priorities, we are looking to reduce debt. We are looking to strengthen the company, to strengthen the balance sheet. But there's a number of different ways to do that or accomplish it. And I'm certainly looking forward to taking another strong step on that front, which I also believe is an area for us to delever further, okay? So we'll kind of keep it at that for now. But it's a good question, and it's a fair one. And maybe for reference for folks to appreciate, we pay about 10% fixed rate on that one. So it's about $140,000 interest a year right now. And hopefully, there's an opportunity again, to find a win-win that, that would also be something that would add to the $400-plus thousand savings with Desjardins and get us to the $500-plus thousand range overall, hopefully. So we're excited about the possibilities, but we can't comment on exacts just yet. And then another question as well. Do you have an ability to make acquisitions without arrays? If so, what are the types of acquisitions you are most interested in? The answer is yes. But it depends on the type of acquisition. So it's funny. Your 2 questions tied in to each other because, of course, you can't go make a $2 million EBITDA acquisition that requires $6 million or $8 million upfront. And that's not what we're looking to do. You might have heard me say during the presentation that we're not looking at risk to the house. We're not looking to run before we can walk. We really like the momentum of what we've done here. We like taking the business from around $19 million in revenue back in '24 to $27 million to $30 million hopefully, to $35 million or $33 million to $38 million to $47 million to $55 million. I mean that's how we're thinking, right? If there's a knockout blow and it's like an incredible opportunity, like I get e-mails okay and saying, oh, like a company like Goodfood went through CCAA. When you jump on that. Well, yes, it's $80 million revenue, but it's unfortunately, for them, like a really difficult situation. Like we're not interested -- we just came out of a restructuring. We don't want to go create as you go buy something huge that we have no idea how to operate and deal with the problems that a lot of people have tried to solve and haven't been able to solve. We would rather buy cash flow today. We've bought less risk, we would rather buy it at a really cheap multiple and we would rather not risk the house. It's very, very simple, right? And in a climate like this, if we can identify the next EBITDA acquisition or loosely 2 to 4x EBITDA, let's say. And if we can structure it the right way, and we can make sure that certain of our cash and cash flow that's being generated can go towards it in a creative structure. We may do it. We may do another nice tuck-in acquisition if it makes sense and in line. And Desjardins is supportive, big picture. This is the beauty of having a 7-year term as we're starting -- we're embarking on a major partnership. It's a 7-year term. And that's without -- we've built a reputation for ourselves, Mike, over the last [indiscernible] 6 years in a row. So the joke with tears if we're going to renew the term 6x, that's a 42 -- that's potentially a 42-year term. So we're not ones to sit around. We have a great partner now, and we're going to look at stuff. And the main thing is I would tell investors, we're not looking to add board that again right now. We're looking to beef up operations, EBITDA and be opportunistic. If we can go get $0.5 million in EBITDA with $0.5 million to $750,000 in cash and some deferred structure that fits the bill, we'll do that. and we're looking at things of that nature. So TBD. But in terms of the verticals, grocery and golf and B2B enablement, those are loosely sort of the 3 verticals we're looking at, at this time. There's another question. I'm going to skip it. It's the same 1 roughly on the convertible note as well and do you expect to convert, et cetera. So we've kind of talked about that. Here's another one. How is the integration of Viral Loops the merge family enhancing the results of the company. And it's a good question. I think when we announced Viral Loops, I think people, honestly, like the math of it, they understood what we were doing, but they didn't find it to be all that sexy, right? And my message to everyone today is what I couldn't say back then that I can say now is that we didn't only buy Viral Loops EBITDA for 3x EBITDA or their cash flow. Let's talk cash flow. We didn't buy their $500 million, $600 million cash flow net of fees and legal for the acquisition, all of that alone. We bought it to pave the way for another $400,000 in cash flow savings to date that we can announce, right? And that is transformative. And it's also -- it's not just the cash flow savings. It's the derisk of the yearly refis, as Mike mentioned. It's the access to the line of credit. It's the relationship with Desjardins. So in a way, that was 1 of the biggest reasons we did, if not the biggest reason, was a financial improvement to the profile. And you can go back to the Viral Loops press release and judge us by because it really specifically talk about enhancing financial and housing cash flow. The part B, which we won't glamorize or sensationalize, we won't say there are crazy synergies with the EMERGE brand portfolio. However, it is additive, and that's important, right? So we are using Viral Loops, I'll give you a prime example with truLOCAL. truLOCAL is celebrating its 10-year anniversary. And we're now doing monthly contests we're launching. And we did them quarterly now we're going to launch monthly. I don't know if anyone's a fan of well simple in their monthly millionaire contest. So we're gaining inspiration from that, too. But Viral Loops is the type of technology that we're building for ourselves but it also comes with hundreds of clients. And it's our job in the background now to support that team to, for example, build that well simple monthly millionaire widget so that we can go and sell it to other companies like the neo financials or the banks that want to plug in quickly into the contesting game. But someone like -- well Simple understands the value of of customer acquisition. And I think that we are adding more and more features to truLOCAL, in particular, and then next step is for Golf by Q4. So we'll keep you updated on that. But I think it's delivered on its financial promise to set the company up and to drastically improve the balance sheet. I think that is all the time we have here. I want to encourage folks Actually, I'll take 1 last one, just because I kind of want to address this anyway because it brings up a good point. One more question is can you provide a breakdown of EMERGE business units under par, DGS, T2Green, truLOCAL, include revenue, gross margin, gross and adjusted EBITDA for each. It's a good question, Philip. And I think here's how we're thinking about things. The company is starting to go up. Obviously, adding Mike was a big step on the financials and setting up the systems and the analytics and all of that. And I think you'll start seeing -- I'm not going to commit to exactly what you asked in terms of every brand because that's quite a bit of additional work for us. We've got to keep in mind. We are a tight team here. But I think we're going to want to start adding some disclosure that gives better color to investors, right? Because when we were in that restructuring phase for 2, 3 years, why go through the trouble? Let someone give me the advice, run it like a private company other than the public requirements, right, at the time. But we're coming out of that now. And we're interfacing with you guys. And I would say that it's awesome, actually. We still have 33 people. So only 3 people dropped off, Mike. That's less than 10% churn. It's a good model to run. But I think we're going to be getting more of a visibility to the extent that -- to what extent, I'm not sure, but you can expect more. And I'll close on this note because it's important, Philip, to the question you're asking. People forget that when we say EMERGES approaching $2 million EBITDA reported, that includes the holding company, the public company running around doing auto, legal, admin, essentially, right? And -- but what we don't do a good job of is demonstrate that our brand level EBITDA. If I just -- if you just looked at the sum of the parts, I'll use my banking at again, truLOCAL only, the Golf portfolio only, Viral Loops only. If you look at those 3 verticals on a stand-alone basis with their respective teams and management, we're sitting on north of $3.5 million in adjusted EBITDA, right, and probably closer to 4, depending on how we finish the year. So actually, people don't appreciate. You got to think of this from a pure sum of the parts value perspective. What do you think $4 million EBITDA is worth? Is it worth $15 million market cap. And I don't know the answer. Like I'm not going to tell you what the answer is, but it's my job to paint the picture. The $4 million in brand level EBITDA or thereabouts, I'll use $3.5 million to $4 million. Is that worth $20 million EV, like enterprise value. Again, you guys do the math. Our job, Mike and I, now is to shed light on the actual business, the underlying business because the power is the pubco, you only got 1 me, you only got 1 Mike. You got an audit, which we negotiate hard on and make sure the prices are right, right? Our systems are tighter. AI is making things possible that we don't need to grow the team right now beyond the core group that we have for HQ. We don't have an IR company. We don't even have a company that takes care of our website. We're tightening all of that up, right? But when we go by the next $5 million in EBITDA over the next few years, hopefully, we don't have to grow the HQ amount anywhere near that. We might grow the HQ amount 10%, but we can grow EBITDA [indiscernible] in the coming years. And that's the idea here is like, well, folks, I feel like investors really need to understand the brand level EBITDA, if I just woke up 1 day and the Board woke up 1 day, we felt the best interest of the company is to sell these businesses individually, which, again, I don't think that's the goal or the plan, just to be clear. But if you looked at the sum of the parts of what those would bring, would they be $18 million enterprise value? Or would they be more? I have my view, of course. We're a $30 million revenue company. We're it's approaching a $45 million GMV company. We're a $3.5 million, $4 million brand-level EBITDA company. We're a $2 million all-in EBITDA company. So obviously, we have our views on valuation. But again, it's not our job to comment. But we will be giving more disclosure as the quarters and certainly by next year is something Mike and I are working on. We really, really appreciate everyone's time and questions. Sorry, there were a few more we could get to. We allotted 45 minutes for this call. I'm going to take that as folks age and enjoy our feedback and our insights. If there are things that we haven't addressed or questions we haven't addressed, please e-mail investor@emerge-brands.com. We will make sure we 1 of us attends to them in a timely fashion. But we really appreciate everyone's time. We're happy to share that we delivered on our promise. I hope you are too. But hopefully, this is still the start of a multiyear journey of delivering on what we say we will. Thank you, everyone, and have a great day.