TLYS earnings name for the interval ending March 31, 2024.
Picture supply: The Motley Idiot.
Tilly’s (TLYS 1.40%)
Q1 2024 Earnings Name
Jun 06, 2024, 4:30 p.m. ET
Contents:
- Ready Remarks
- Questions and Solutions
- Name Members
Ready Remarks:
Operator
Good day, and welcome to the Tilly’s, Inc. first quarter 2024 earnings name. All individuals will likely be in a listen-only mode. [Operator instructions] After right now’s presentation, there will likely be a chance to ask questions.
[Operator instructions] Please word this occasion is being recorded. I’d now like to show the convention over to Mr. Gar Jackson, IR. Please go forward.
Gar Jackson — Investor Relations
Good afternoon, and welcome to the Tilly’s fiscal 2024 first-quarter earnings name. Michael Henry, government vp and chief monetary officer, will talk about the corporate’s enterprise and working outcomes, then he and Hezy Shaked, government chairman and interim president and chief government officer, will host a Q&A session. For a replica of Tilly’s earnings press launch, please go to the Investor Relations part of the corporate’s web site at tillys.com. From the identical part, shortly after the conclusion of the decision, additionally, you will have the ability to discover a recorded replay of this name for the subsequent 30 days.
Sure forward-looking statements will likely be made throughout this name that mirror Tilly’s judgment and evaluation solely as of right now, June 6, 2024, and precise outcomes could differ materially from present expectations based mostly on numerous elements affecting Tilly’s enterprise. Accordingly, you shouldn’t place undue reliance on these forward-looking statements. For a extra thorough dialogue of the dangers and uncertainties related to any forward-looking statements, please see the disclaimer concerning forward-looking statements that’s included in our fiscal 2024 first-quarter earnings launch, which is furnished to the SEC right now on Type 8-Okay in addition to our different filings with the SEC referenced in that disclaimer. This name can also comprise sure references to sure non-GAAP measures.
Reconciliations of these measures to their most immediately comparable corresponding GAAP measure will be present in our earnings press launch on our web site. In the present day’s name will likely be restricted to at least one hour and can embrace a Q&A session after our ready remarks. I’ll now flip the decision over to Mike.
Michael L. Henry — President and Chief Government Officer
Thanks, Gar. Good afternoon, everybody, and thanks for becoming a member of us right now. Our first-quarter internet gross sales and pre-tax working outcomes have been each inside our estimated outlook ranges supplied throughout our March earnings name. After a tricky begin to the primary quarter, our comp gross sales outcomes stay unfavorable every month, however improved on a relative foundation in each March and April, with March being the stronger of the 2, benefiting from the sooner Easter this yr.
Like sure others in our aggressive house, we proceed to face headwinds from macro client atmosphere, but we have been capable of generate 130 foundation factors of product margin enchancment relative to final yr’s first quarter regardless of our decline in internet gross sales. As we mentioned throughout our final earnings name, we’ve got been difficult each side of our enterprise as we work towards bettering our working outcomes. For instance, we proceed to guage preliminary pricing selections to higher align ourselves with our competitors in sure product classes. We now have reconsidered sure of our promotional pricing and markdown practices to drive improved common unit retail values.
We imagine that we’re starting to see the impression of those efforts based mostly on the development in our first-quarter product margins in comparison with final yr’s first quarter. Nevertheless, whereas we imagine our efforts have the fitting focus to steer us towards making extra significant enhancements over the long term, in gentle of the present atmosphere, we warning that there will be no assure that we will proceed to supply this sort of enchancment within the brief time period. From a advertising and marketing perspective, we’ve got been testing new concepts to give attention to creating better connectivity with our present buyer base and to draw new clients. We imagine these new efforts give us an opportunity to construct better buyer following and generate a optimistic enterprise impression over time.
We imagine that it could take six to 9 months earlier than we have been capable of really see and perceive how these new efforts are impacting our enterprise, however we imagine they’re the fitting efforts to assist us enhance over the long term. Regardless of short-term challenges, we proceed to spend money on our enterprise for the long term. We applied a brand new merchandise planning and allocation instrument in early April, adopted by the implementation of our new warehouse administration software program for our shops’ distribution middle in early Might. We skilled some problems within the instant aftermath of those implementations that slowed product replenishment to shops throughout Might, however we imagine we at the moment are beginning to get again towards a traditional degree of distribution productiveness for our shops.
We plan to finish the implementation of this identical warehouse administration software program in our e-comm distribution middle this month. Moreover, we plan to implement new markdown optimization software program and enhance search engine marketing capabilities forward of the vacation season. We imagine these new instruments are necessary to assist generate better operational efficiencies and enhance our enterprise over time. Over the brief time period, we proceed to imagine it will likely be difficult for us to enhance our gross sales outcomes amid the reported weakening client atmosphere.
it can probably take time for this cycle to go earlier than we see a bounce again in client exercise amongst our core buyer demographic. Within the meantime, we proceed to make each effort to hunt enhancements in our enterprise and make adjustments that we imagine can result in higher outcomes. Our focus stays steadfast on bettering our enterprise for the long run. Now, turning to our working outcomes for the primary quarter of fiscal 2024 in comparison with final yr’s first quarter.
Outcomes have been as follows: complete internet gross sales have been $115.9 million, a lower of 6.3%; complete comparable internet gross sales, together with e-commerce, decreased by 9.4% with an 8.6% lower from bodily shops and a ten.8% lower from e-commerce relative to the comparable 13-week interval final yr; internet gross sales from bodily shops represented 80.1% of complete internet gross sales in comparison with 79.1% final yr, whereas e-commerce internet gross sales represented 19.9% of complete internet gross sales in comparison with 20.9% final yr. We ended the primary quarter with 246 complete shops, a internet lower of two shops in comparison with final yr. Gross margin, together with shopping for, distribution, and occupancy bills, was flat to final yr at 21% of internet gross sales. Product margins improved by 130 foundation factors in comparison with final yr primarily as a result of mixture of a decrease complete markdown fee and improved preliminary markups.
This enchancment was offset by deleverage of shopping for, distribution, and occupancy prices regardless of these prices being $800,000 beneath final yr within the mixture on account of carrying these prices in opposition to decrease complete internet gross sales. Complete SG&A bills have been $45.1 million, a rise of $1.9 million primarily on account of elevated noncash retailer asset impairment costs of $1.5 million and elevated retailer payroll and associated advantages prices of $1 million. Our common hourly fee per retailer payroll rose 5% over final yr and was 31% larger than in pre-pandemic 2019. A wide range of smaller expense reductions partially offset these two main expense will increase.
SG&A deleveraged by 400 foundation factors because of carrying these prices in opposition to decrease complete internet gross sales. Pretax loss was $19.6 million or 16.9% of internet gross sales in comparison with $16.2 million or 13.1% of internet gross sales final yr because of the mixed elements simply famous. Earnings tax profit was negligible at $13,000, basically a 0% tax fee as a result of persevering with impression of a full, noncash deferred tax asset valuation allowance. This compares to earnings tax good thing about $4.2 million or 26.1% of pre-tax loss final yr.
On a non-GAAP foundation, within the absence of the valuation allowance, our earnings tax profit would in any other case have been roughly $5.2 million. Internet loss was $19.6 million or $0.65 per share in comparison with $12 million or $0.40 per share final yr. On a non-GAAP foundation, assuming a normalized efficient earnings tax fee of 26.3% within the absence of a valuation allowance, internet loss would have been $14.5 million or $0.48 per share, the precise center of our authentic outlook vary for the primary quarter. Turning to our stability sheet.
We ended the primary quarter with complete money and marketable securities of $68 million and no debt excellent underneath our $65 million asset-backed credit score facility in comparison with $93 million and no debt on the finish of the primary quarter final yr. Complete inventories have been up 1.8% on the finish of the primary quarter this yr in comparison with the tip of the primary quarter final yr. We ended this week with complete inventories down 3% versus the comparable week final yr. Turning to our outlook for the second quarter of fiscal 2024.
Complete comparable internet gross sales for fiscal Might ended June 1, 2024, decreased by 8.4% relative to the comparable four-week interval final yr. Primarily based on present and historic traits, we presently estimate that our complete internet gross sales for the second quarter of fiscal 2024 will likely be within the vary of roughly $160 million to $165 million, translating to a comparable internet gross sales decline within the vary of roughly 10% to 7%, respectively, for the comparable 13-week interval final yr. We anticipate our SG&A to be within the vary of roughly $48 million to $49 million within the absence of any noncash retailer asset impairment costs and our efficient earnings tax fee to be close to 0% as a result of persevering with impression of a full, noncash valuation allowance on our deferred tax property. We estimate our after-tax outcomes to be within the vary of a internet lack of roughly $3.9 million to $0.9 million, respectively, and per share outcomes to be within the vary of a internet lack of $0.13 to $0.03, respectively.
We presently anticipate to have 247 complete shops on the finish of the second quarter in comparison with 246 on the finish of final yr’s second quarter. One further word, whereas we’re not offering any particular outlook for the third quarter right now, it ought to be famous, as I discussed throughout our final earnings name, that as a result of impression of the 53rd week in fiscal 2023, there will likely be a significant shift in internet gross sales into the second quarter from the third quarter when evaluating to final yr. Utilizing final yr’s weekly internet gross sales outcomes, what was a $26.2 million back-to-school internet gross sales week for the primary week of final yr’s third quarter will now turn out to be the comparable week for the ultimate week of this yr’s second quarter. The primary week of final yr’s fourth quarter, which was a $7.8 million internet gross sales week, turns into the ultimate comparable week of the third quarter this yr, making a $18.4 million internet gross sales decline for the third quarter of this yr relative to final yr’s third quarter earlier than consideration of any comp gross sales assumption.
Operator, we’ll now go to our Q&A session.
Questions & Solutions:
Operator
Thanks. We are going to now start the question-and-answer session. [Operator instructions] Presently, we are going to pause momentarily to assemble our roster. The primary query comes from Marni Shapiro with The Retail Tracker.
Please go forward.
Marni Shapiro — The Retail Tracker — Analyst
Hey, guys, thanks for taking my query. I am curious, I do know gross sales are going to be challenged and also you had some points with the distribution facilities on this quarter. But when someone spends numerous time in your shops, there are undoubtedly some noticeable adjustments within the entrance of the shop, notably on the junior facet. And I am curious in case you are seeing any inexperienced shoots at this level.
And the way — as a result of what I am seeing is it is promoting shortly, it’s extremely on-trend. It’s a small a part of the stock. However I am curious for those who have been capable of impression a extra vital proportion of the stock for the again half of the yr and what this could appear to be. I am not standing forward of myself, however simply making an attempt to see the place that is going.
Hezy Shaked — Government Chairman, Interim President and Chief Government Officer
It is fantastic. Wanting telling you precisely what is going on on, I am going to attempt to tackle that. So, what you are seeing is a part of the initiatives that we began again at first of February. It’ll get increasingly more significant, clearly, as among the selections are already filtered in.
I can let you know that we see optimistic indicators, however we can not broaden an excessive amount of on it as a result of we do not need to get forward of ourselves. Total, you see increasingly more of the fitting pattern in our stock.
Marni Shapiro — The Retail Tracker — Analyst
Thanks. I imply, it feels nice. And may we simply additionally discuss, as issues start to enhance — since you guys have a protracted historical past — your buyer, after they’re within the fold, they’re very loyal to you. How are you desirous about form of bringing in lapsed customers or extra importantly, bringing in youthful customers? Have you ever — will you begin to drive advertising and marketing as issues enhance, form of maintain again till you’ll be able to drive visitors into one thing that you simply really feel actually happy with? Is that how we should always take into consideration advertising and marketing?
Hezy Shaked — Government Chairman, Interim President and Chief Government Officer
No, by no means. We began our — a brand new marketing campaign, the best way we imagine we ought to be presenting ourselves a few months in the past. As we go, it will be increasingly more significant, and increasingly more issues can be seen within the public. We’re nonetheless on the exploration stage of precisely what’s the age of our buyer, what the age of the shopper we need to have is, bear in mind, we began all this course of February, and we’re in June now.
So, we’re getting towards the tip of determining what we have to do, and we begin implementing numerous it. However you may see the outcomes, third and fourth quarter.
Marni Shapiro — The Retail Tracker — Analyst
Incredible. I am telling you the entrance of your shops already seems to be so significantly better. The merchandise is popping so quick. I want I may simply deliver it in myself.
It seems to be nice, so better of luck guys.
Hezy Shaked — Government Chairman, Interim President and Chief Government Officer
You really — I do not understand how that, however you are completely spot on. We elevated a number of classes, and we’re chasing it consistently.
Marni Shapiro — The Retail Tracker — Analyst
Yeah. It seems to be unbelievable.
Hezy Shaked — Government Chairman, Interim President and Chief Government Officer
Thanks.
Marni Shapiro — The Retail Tracker — Analyst
Thanks.
Hezy Shaked — Government Chairman, Interim President and Chief Government Officer
Thanks, Marni.
Operator
The subsequent query comes from Jeff Van Sinderen with B. Riley FBR. Please go forward.
Jeff Van Sinderen — B. Riley Monetary — Analyst
Hello, everybody. So, I suppose my first query, simply to observe up on the road of considering on merchandise and efficiency there. I do not know for those who gave the relative or spoke to the relative efficiency of the information facet of the enterprise versus the expansion facet of the enterprise, males’s and girls’s. Any coloration you’ll be able to add there? Simply questioning form of relative efficiency between the 2 genders.
Hezy Shaked — Government Chairman, Interim President and Chief Government Officer
Yeah. I may give you a bit of bit. So, one of many questions that we confronted, proper, is what’s the stability between women and men, female and male, what it’s right now, what it’s we need to have. I believe we’re in the fitting spot proper now.
So, the stability we’ve got right now, which I am not going to cite precisely how a lot it’s, is the place we’ll go ahead for the rest of the yr. There’s all the time a dialogue internally, do you lead with males, do you lead with women? Clearly, there’s many alternative opinions. I imagine that we lead with males’s. And my line is all the time the identical, that guys do not store in ladies retailer, however ladies will store in guys’ retailer.
Now, granted within the final 5 years, it is altering a bit of bit, however that is the place our head is.
Jeff Van Sinderen — B. Riley Monetary — Analyst
OK. After which any replace you may give us on the plans for the CEO search, the place that stands? After which any adjustments to the service provider crew?
Hezy Shaked — Government Chairman, Interim President and Chief Government Officer
No adjustments of plan in both positions.
Jeff Van Sinderen — B. Riley Monetary — Analyst
OK. After which another if I may squeeze it in. Simply questioning the place you stand on lease negotiations for 2024 and what number of shops you would possibly find yourself closing this yr.
Hezy Shaked — Government Chairman, Interim President and Chief Government Officer
I do not suppose we’ve got an replace that we may give you proper now. As , we glance — renegotiating leases and hoping to close down any shedding areas. We do not have numerous them, however we nonetheless have some. There isn’t a replace on that but.
Michael L. Henry — President and Chief Government Officer
Yeah. It is laborious to — Jeff, it is laborious to pin right down to a selected quantity when we’ve got a lot nonetheless in play to barter. However what I can let you know in the meanwhile is we’ve got two remaining new shops to open, one in July, one in mid-November. After which we’ve got 4 to 5 identified retailer closures at this level that may occur towards the tip of the yr.
However these numbers can change clearly because of — we’ve got dozens and dozens of leases left to take care of for this yr. So, that is the very best we will let you know at this second.
Jeff Van Sinderen — B. Riley Monetary — Analyst
OK. And I am sorry, the overall that you simply nonetheless must take care of is roughly what?
Michael L. Henry — President and Chief Government Officer
I haven’t got a selected quantity in entrance of me.
Jeff Van Sinderen — B. Riley Monetary — Analyst
OK. All proper. Thanks for taking my questions.
Michael L. Henry — President and Chief Government Officer
Thanks.
Operator
The subsequent query comes from Mitch Kummetz with Seaport Analysis. Please go forward.
Mitch Kummetz — Seaport Analysis Companions — Analyst
Sure. Excuse me. Thanks for taking my questions. Mike, you talked about the $18.4 million hit to the third quarter on gross sales.
Are you able to say or possibly what you suppose that may translate from an earnings standpoint?
Michael L. Henry — President and Chief Government Officer
I am unable to till we work out how back-to-school begins and what comp assumption I would suppose we’re headed for in 3Q, I do not know what that is going to appear to be. The beginning of the back-to-school season goes to be within the final three weeks of July, the final three weeks of the second quarter is when we’ll begin to see the early reads on the back-to-school season. The three largest gross sales weeks of the second quarter, really the ultimate three weeks of the second quarter for that motive. And as I discussed, that very last week final yr was the beginning of the third quarter and shifted ahead due to the impression of that 53rd week in fiscal 2023.
So, till I’ve a prelim learn on what back-to-school means and what path we’re headed, I am unable to be any extra particular right now. Nevertheless it actually goes to create one thing of an earnings hit if you’re ranging from an $18 million gap in comparison with final yr’s fiscal third quarter.
Mitch Kummetz — Seaport Analysis Companions — Analyst
And the way a lot of the gross sales profit are you anticipating within the second quarter provided that shift?
Michael L. Henry — President and Chief Government Officer
It is roughly a $15 million profit to the second quarter as a result of simply as I famous for the third quarter, you’ve got the identical dynamic from final yr’s begin of second quarter, finish of second quarter shifting. So, on the one hand, if you have a look at our outlook of a complete gross sales variety of $160 million to $165 million, final yr’s second quarter was $160 million. So, on uncooked quantity, you say, “Oh, that is development, is not that optimistic comp?” However as we famous, it is really not. It is a unfavorable comp in our outlook vary of seven% to 10%.
However due to the impression of that back-to-school week shifting into the second quarter, it provides a big quantity of gross sales.
Mitch Kummetz — Seaport Analysis Companions — Analyst
Yeah. After which I seen that your quarter-to-date comp, the minus 8.4%, is just about proper in the course of your quarterly vary. I am simply curious how you concentrate on back-to-school. It looks as if during the last, I do not know, possibly a yr, that the patron is displaying up for occasions greater than they’re in between occasions, and clearly, back-to-school is an occasion.
Are you basically assuming that your comp on back-to-school is form of inside that down 7% to 10% vary? Or is there a motive to imagine that it may very well be higher than that provided that that is an occasion interval?
Michael L. Henry — President and Chief Government Officer
It may find yourself being higher than what we’re suggesting. Sitting right here, I’ve no visibility to what back-to-school habits goes to be like. So, we’re not relying on one thing that we won’t see. What we’ve got is Might is down 8.4%.
That is in step with our comp run fee of the final 4 quarters. In case you look again, our comp has been on this minus 8% to 9% vary. That is now beginning the fifth quarter in that realm. So, our vary contemplates that it may get a bit of higher, notably towards the tip.
I don’t anticipate it to deteriorate again into unfavorable double digits. I do suppose there’s alternatives for us to probably outperform this unfavorable 7% to unfavorable 10% vary, however that may require back-to-school getting off to begin. And I simply do not know what that is going to appear to be, as a result of as I sit right here, I would like to suppose that I can predict the longer term, however I darn positive can not.
Mitch Kummetz — Seaport Analysis Companions — Analyst
OK. All proper. Thanks, guys. Good luck.
Operator
The subsequent query comes from Matt Koranda with ROTH Capital. Please go forward.
Matt Koranda — ROTH MKM — Analyst
Hey, guys. Possibly simply following up on the second-quarter outlook and the Might-to-date comps. Something you’ll be able to name out, Mike, by way of weekly cadence that you simply noticed that was notable? Any assist there by way of simply — something you noticed across the Memorial Day vacation, if that was notable in any respect?
Michael L. Henry — President and Chief Government Officer
Certain. So, I famous in our ready remarks that upon the implementation of our new merch allocation instrument and the brand new warehouse administration system, we did have some problems within the instant aftermath of that. So, Might bounced round fairly a bit. The primary week and the final week of Might have been each unfavorable single digits, and the in-between weeks have been unfavorable low double digits as we’re having some problems with replenishment to shops with the brand new techniques speaking with one another correctly.
So, we did expertise some slowdown within the center two weeks of the month however imagine we’re again on observe. We did see higher leads to the ultimate week of fiscal Might and have seen a bit of bit higher outcomes this week, beginning off June, now that product has began to reflow again out to shops and get on the market. So, we would prefer to suppose the worst of it’s behind us by way of any of the implementation impacts and that, if something, we should always keep constant to probably having a chance to see some higher outcomes going ahead. However once more, with these giant three weeks on the finish of the quarter, principally, a 3rd of the quarter gross sales quantity goes to be in these final three weeks of the quarter.
So, actually troublesome to know sitting right here, as far-off from that as we’re, what precisely that is going to appear to be. However we’re cautiously optimistic, as Hezy famous earlier, that we’ll proceed to see higher and higher issues out of our assortment as we go ahead.
Matt Koranda — ROTH MKM — Analyst
OK. That appears honest. However I suppose we’re additionally not relying on essentially a pickup relative to what we noticed in mixture in Might by way of the comps, not a lot on one at the least. OK.
After which by way of stock, I am curious, was the warehouse administration system one of many causes for the marginally heavier stock per retailer that we’re seeing on a year-over-year foundation? Or is there one thing else occurring by way of stock that you may name out? After which possibly simply — Hezy, the place are we heavier than we need to be? I used to be curious based mostly on one of many earlier questions, simply what are you chasing specifically, that is actually transferring for you that is working? It will be useful to get a bit of —
Hezy Shaked — Government Chairman, Interim President and Chief Government Officer
Yeah, yeah. Yeah, we’re chasing the very best sellers. Yeah.
Matt Koranda — ROTH MKM — Analyst
Go forward, sorry.
Hezy Shaked — Government Chairman, Interim President and Chief Government Officer
Yeah. So, let me additionally tackle the stock for a second. There’s two issues right here. So far as the merchandise, we modified a bit of bit on how we have a look at issues and the way we do it.
I may give you a bit of bit. We’re bringing stock a bit of earlier. And as a substitute of spreading it, for instance, over three or 4 months, we’re bringing a bigger portion earlier, so we’re by no means out of sizes. That is one of many issues we do, and that is possibly a part of the rationale you see extra stock within the retailer.
The stock factor will really be one thing that we’re specializing in this coming week, which is, as we modified the best way we have a look at gross margins, we checked out two issues or three issues as I informed you guys earlier than, we regarded on the preliminary value and the negotiation there. We regarded on the preliminary IMUs after which how we do markdowns. Up to now, sadly, we gave the merchandise away, it is method underneath value. There was no motive for that, nevertheless it occurred.
We’re taking a look at it otherwise right now. It is not vital always to promote issues at a hearth sale. On account of that, there will likely be some adjustments and a few fluctuation within the stock till we fine-tune it, however that may produce higher margins.
Michael L. Henry — President and Chief Government Officer
OK. Yeah. And the opposite factor I would —
Matt Koranda — ROTH MKM — Analyst
Yeah. Go forward, Mike.
Michael L. Henry — President and Chief Government Officer
The opposite factor I would add to that, Matt, is a few of it was a bit of little bit of timing distinction, too, as a result of if you’re wanting purely on the stability sheet, once more, due to that bizarre 53rd week that occurs each six to seven years, you are evaluating two offset weeks. They don’t seem to be comparable weeks. So, it was a short lived timing distinction. It is why I added the notation that as we entered this week, our inventories have been really down 3% on a like-for-like week.
So, it is just a bit little bit of a timing distinction there, particularly forward of the implementations that we knew have been coming. We did consciously attempt to assist offset any potential danger as we went by means of these. So, it is only a non permanent situation, nothing of great concern.
Matt Koranda — ROTH MKM — Analyst
OK. Truthful sufficient. Possibly if I may simply ask another on what I suppose I am imputing within the outlook from a gross margin standpoint. It nearly looks as if we would see flat to up gross margins within the second quarter based mostly on my math at the least.
Possibly simply discuss what you are seeing on form of the margin entrance and product markdowns. It feels like possibly we acquired a bit of bit higher there. So, that is man offsetting the BD&O deleverage that we should expertise. However possibly simply for those who may add a bit of bit extra to that.
Hezy Shaked — Government Chairman, Interim President and Chief Government Officer
Yeah. Mike, let me reply that. So, we do anticipate gross margin enchancment. That is precisely what we’re engaged on.
We will not estimate but what it will likely be for second quarter, and every little thing is up within the air proper now. We’re engaged on so many alternative issues that it will likely be very laborious to foretell till the longer term. So, you’ll be able to anticipate that it will likely be flat to up. I simply can’t let you know how a lot it will likely be up.
Matt Koranda — ROTH MKM — Analyst
OK. Nice. Respect it, guys. Thanks.
Operator
This concludes our question-and-answer session. I wish to flip the convention again over to Mike Henry for any closing remarks.
Michael L. Henry — President and Chief Government Officer
Thanks all for becoming a member of us right now. We admire your curiosity, and we sit up for sharing our second-quarter outcomes with you in early September. Thanks, and have night.
Operator
[Operator signoff]
Period: 0 minutes
Name individuals:
Gar Jackson — Investor Relations
Michael L. Henry — President and Chief Government Officer
Marni Shapiro — The Retail Tracker — Analyst
Hezy Shaked — Government Chairman, Interim President and Chief Government Officer
Jeff Van Sinderen — B. Riley Monetary — Analyst
Mike Henry — President and Chief Government Officer
Mitch Kummetz — Seaport Analysis Companions — Analyst
Matt Koranda — ROTH MKM — Analyst
