Good morning. My name is Rob and I will be your conference operator today. At this time, I would like to welcome everyone to the H.B. Fuller Third Quarter 2022 Earnings Conference Call. Thank you. Steven Brazones, Vice President, Investor Relations, you may begin your conference.

Thank you, operator. Welcome to H.B. Fuller's third quarter 2022 investor conference call. Presenting today are Jim Owens, President and Chief Executive Officer; and John Corkrean, Executive Vice President and Chief Financial Officer. After our prepared remarks, we will have a question-and-answer session. Before we begin, let me remind everyone that our comments today will include references to certain non-GAAP financial measures. These measures are supplemental to the results determined in accordance with GAAP. We believe that these measures are useful to investors in understanding our operating performance and to compare our performance with other companies. Reconciliation of non-GAAP measures to the nearest GAAP measure are included in our earnings release. Unless otherwise noted, comments about revenue refer to organic revenue; and comments about EPS, EBITDA and profit margins refer to adjusted non-GAAP measures. We will also be making forward-looking statements during this call. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially from these expectations due to factors covered in our earnings release, comments made during this call and the risk factors detailed in our filings with the Securities and Exchange Commission, all of which are available on our website at investors.hbfuller.com. I will now turn the call over to Jim Owens. Jim?

Thank you, Steven, and welcome, everyone. In the third quarter, we delivered 18% organic growth, 24% EBITDA growth, and 34% EPS growth despite a challenging external environment. We are extremely pleased with our strong third quarter financial performance and the results achieved by our teams around the world. We continued to execute our strategy to drive organic growth and expand EBITDA margin. We nimbly adjusted to short-term challenges from continued raw material inflation, slowing global economic demand conditions, and currency headwinds. Our strategic mix shift to a more highly specified product portfolio through innovation, market share gains, and customer collaboration, together with our responsible pricing actions, are delivering impressive results this year and position us very well for margin expansion in the year ahead and continued long-term profitable growth. In the third quarter, organic revenues increased 18% year-on-year, with all three of our global business units generating exceptional growth. As we expected, growth in volume is slowing as we progress throughout the year. The declining trend in volume growth is largely being driven by slowing demand in Europe and in construction markets. Our market share gains continue, and we continue to outperform the competition in volume and organic growth. We expect these gains to not only endure but to continue to advance as we execute our strategy. Now let me move on to review the performance in each of our segments in the third quarter. In Hygiene, Health, and Consumable Adhesives, organic revenue was up 23%, with strong organic growth across all end markets and particular strength in the packaging, hygiene, tissue and towel, and health and beauty markets. Adjusted EBITDA for Hygiene, Health, and Consumable Adhesives increased $17.3 million or 39% year-on-year. Adjusted EBITDA margin increased 250 basis points year-on-year to 14.5%. Hygiene, Health, and Consumable Adhesives led the group in margin expansion in the third quarter, a result of exceptional pricing execution and operational efficiencies. In Engineering Adhesives, the strong organic growth trend continued with organic revenue growth of 17.5% and nearly every end market contributing to the impressive results. Automotive, new energy, and aerospace were particularly strong. Automobile production is increasing with improved microchip availability. This, coupled with the continued share gains in the electric vehicle market, are greatly benefiting Engineering Adhesives. Adjusted EBITDA increased by 8% in Engineering Adhesives, and adjusted EBITDA margin increased 10 basis points from the prior quarter to 14.8% despite significantly higher raw material costs. In Construction Adhesives, the effects of the slowing global economic environment were the most pronounced, particularly in the roofing and flooring end markets. Despite this, organic revenue grew 7% year-on-year on strong pricing actions and strength in the utilities and infrastructure market. Adjusted EBITDA for Construction Adhesives was up 38% year-on-year and adjusted EBITDA margin increased 180 basis points year-on-year to 14.2%. Pricing actions and the strategic acquisitions of Apollo and Fourny at the beginning of the year drove the improvements. Geographically, Americas organic growth remained very strong, up 22% year-on-year. Customer demand remained strong and stable throughout the quarter. In EMEA, the continuing uncertainty about both the war in Ukraine and natural gas supply resulted in a slowdown in demand. With that said, organic revenue still grew double digits, up 16% versus the third quarter of last year. In Asia Pacific, we began to see a rebound in demand during the third quarter. Easing lockdown restrictions in China and pent-up local demand led to organic revenue growth of 11.5%. From a profitability perspective, the strength of our strategy and strong execution drove significant improvement in the third quarter. On a consolidated basis, adjusted EBITDA increased 24.4% year-on-year to $137.7 million. Adjusted EBITDA margin increased 120 basis points year-on-year and 60 basis points sequentially to 14.6%. Responsible pricing actions, which have more than offset raw material cost inflation, are increasing our margin and will result in further margin expansion in the quarter and the year ahead. Combined with our strategic shift to a more highly specified product portfolio, we are on track to further expand margins and achieve our long-term profitability targets. Management of the pricing raw material dynamic is a core competency of the company and a competitive advantage in the adhesive market. During the third quarter, raw material cost inflation continued but at a decelerating rate. Our price increases in the third quarter exceeded the $175 million level which we committed to, and we're expecting an additional $40 million to $50 million of annualized price increase in the fourth quarter. We are beginning to see signs that raw material cost inflation may be leveling off in the fourth quarter. From a planning perspective, we're expecting stabilization of supply and pricing of raw materials. However, we are prepared to adjust pricing in the event raw material increases continue. It is important to note the unique capabilities we can leverage in a stabilizing raw material cost environment and a more competitive pricing landscape. In addition to our inherent price discipline, we also have breadth of technology and the capability to substitute adhesive technologies for customers to provide them with lower-cost options while maintaining or improving our margins. With improved supply chain conditions, the opportunity to use these substitution capabilities greatly improves. This will be very beneficial for us and our customers. Now let me turn the call over to John Corkrean to review our third quarter results in more detail and our updated outlook for the year.

Thank you, Jim. I'll start with some comments on the financial results for the third quarter. Net revenue was up 13.8% versus the same period last year. Currency had a negative impact of 6.6%, and acquisitions had a positive impact of 2%. The strengthening of the U.S. dollar since the beginning of the year has been historic and unforeseen, and it strengthened again throughout this last quarter. Since the beginning of the year, the euro is down approximately 15% and the Chinese renminbi, 8%. Needless to say, this has been a significant headwind for us this year, but we are still delivering impressive growth. Adjusting for currency and acquisitions, organic revenue was up 18.4%, with volumes relatively flat and pricing up 18.7%. All 3 GBUs had strong organic growth versus 2021, with HHC up 23%; Engineering Adhesives up 17.5%; and Construction Adhesives up 7% year-on-year. Adjusted gross profit was up 27.3% year-on-year, reflecting strong pricing actions and operational efficiencies and adjusted gross profit margin of 26.5% was up 280 basis points compared to the third quarter of last year. Adjusted selling, general and administrative expense was up year-on-year at 16.6% of revenue. Growth in SG&A outpaced revenue growth due to higher variable compensation expense and higher travel-related expenses following the pandemic-driven slowdown in travel. Adjusted EBITDA for the quarter of $138 million was up 24% versus the same period last year. Adjusted earnings per share of $1.06 increased 34%, driven by pricing gains and operational efficiencies which more than offset raw material cost increases, unfavorable currency, and higher interest rates. Cash flow from operations was $58 million, up $49 million sequentially versus the second quarter, reflecting strong revenue growth and improving margins but down versus last year due to temporarily higher year-on-year working capital requirements. Based on the normal seasonality of our business, we are planning for working capital to return to more normal levels by the end of the year and to be in the range of 16% to 17% of annualized net revenue, resulting in full-year cash flow from operations similar to last year. Regarding our outlook for the rest of this year, we continue to remain on track to deliver results in line with or at the upper end of the full-year guidance ranges we provided in the first quarter of the year with respect to organic revenue growth, adjusted EBITDA, and adjusted EPS. I'd like to remind everybody that in both the fourth quarter and full fiscal year, we have an extra week of results. For fiscal 2022, we expect organic revenue growth to be in the range of 17% to 18%, excluding the impact of the extra week. This is at the upper end of the range provided at the end of the second quarter. The extra week is estimated to positively impact full-year revenue growth by approximately 2 percentage points. We now expect currency to have a negative impact on year-on-year revenue growth of 5% to 6%, and acquisitions to have a positive impact of approximately 2%. Additionally, we expect full-year adjusted EBITDA in the range of $540 million to $550 million. This is above the range provided at the beginning of the year and at the upper end of the range provided after the first quarter and is particularly impressive given the significant currency headwinds we are experiencing this year which impacted both the top and bottom line. The extra week is estimated to positively impact full-year adjusted EBITDA growth by approximately 2 percentage points, consistent with the impact to revenue growth. Lastly, we expect fourth quarter adjusted EPS in the range of $1.15 to $1.30, resulting in a full-year increase in adjusted EPS of between 19% and 23% versus fiscal 2021, reflecting strong underlying operating profit growth offset by unfavorable currency and significantly higher interest rates. Regarding the latter, due to the significant increases in short-term interest rates, we are now expecting net interest expense of between $80 million and $85 million in fiscal year 2022 versus the previously provided guidance of between $75 million and $80 million. This range includes the expectation of some opportunistic debt refinancing before the end of the fiscal year. With that, I will turn the call back to Jim Owens for some closing comments.

Thank you, John. 2022 will be a record year with EBITDA near $550 million, revenue of approximately $3.8 billion, and EPS near $4.20. All of these numbers will be up between 15% and 20% versus 2021, and are a result of H.B. Fuller's strategy and the ability of our team to perform in challenging external environments. We are outperforming our competition, and we will continue to do this because of our ability to innovate and win market share across a broad range of end markets and geographies. We are well positioned for significant margin expansion and cash flow generation as we exit this year and enter 2023, as supply chains stabilize and raw material prices moderate. Despite external challenges, we are executing our strategy and we are building momentum. We're delivering innovative value-added solutions to customers faster than our competition to drive market share gains and we are retaining our market share gains. We have effectively managed through unprecedented raw material inflation, regional disruptions, and slowing economic demand and have a plan in place to expand EBITDA margins and cash flow generation as raw material prices stabilize and eventually begin to decrease. I could not be prouder of our team members for their dedication to our customers and their strength in executing in a challenging environment. We are tremendously well positioned. We are delivering impressive results in the short term and we are solidly on track to deliver a strong finish to this year, a strong start to 2023, and to meet our long-term financial targets which will drive significant returns for our shareholders. That concludes our prepared remarks today. Operator, please open the line for questions.

Your first question comes from the line of Vincent Anderson from Stifel.

So if you don’t mind holding my hand for a minute here, from a modeling perspective, what has been the year-to-date dollar contribution from price? And then how much does that leave that’s really already booked for 2023, just based on what has already been announced versus what you’ve realized year-to-date?

Yes. So John is better at holding people's hands than I am, Vincent. So I'll let him take you through. But in broad terms, including what we have lined up for this next quarter, it's about $500 million. And I would say the impact to next year would be about 6% of revenue. So that's the broad way to look at it. But John can take you through quarter through quarter.

Sure. So yes, Vincent, so I think on a year-to-date basis, we've seen approximately $400 million of price impact from the top line standpoint. And we would expect the Q4 number to be similar, not as high year-on-year. And then from a carryover standpoint, I'd say we would expect approximately 6% impact in 2023 from pricing carryover.

Okay, perfect. And then...

I think the annualized number, if you look at it, Vincent, is about $550 million, $560 million. And the impact on next year is about $220 million, $230 million, so...

Okay, perfect. That was pretty close then. So what market share gains are you most confident in? And maybe just more specifically, as you look at how you've positioned yourself to serve Europe from a reliability perspective, do you expect there to be some additional opportunities to take share there this winter if this energy crisis deepens?

The market share gains are driven by innovation and are broad-based. During the Investor Day, we showcased our impressive work in electric vehicles, battery encapsulants, and other EV initiatives, which is expanding our reach. In China, our automotive business is thriving with plenty of growth opportunities in the EV sector and beyond. We're gaining traction in the packaging sector, particularly with beverage labeling, as the Ukraine crisis has reduced the export of a raw material called casing globally. This situation has allowed us to increase our market share with synthetic products. We've had notable successes, like the 4SG wins, and there are achievements across all our segments. Our strategy focuses on understanding market trends and innovating ahead of the competition. While I don't see significant market share gains in Europe, I believe our commitment to excellent service and teamwork will help us serve customers well. We may see some wins, but overall, our strategy is primarily innovation-driven rather than opportunistic, especially concerning gas shortages.

Okay. Excellent. And then, if I could just sneak in one quick one. If you could just add maybe a little additional detail on what you saw in roofing this quarter?

Yes, the roofing segment has been performing very well for us. In California, we experienced a 7% organic growth year-over-year, which is solid, although it's a decrease from nearly 20% growth we saw during the same quarter last year. There have been some fluctuations in roofing demand, and the main issue our customers are facing is the availability of other materials. We observe a backlog of demand from our roofing clients since they might have the adhesive they need but lack some other essential materials. Overall, our focus remains primarily on commercial roofing.

Your next question comes from the line of David Begleiter from Deutsche Bank.

This is Anthony Mercandetti on for Dave. A couple of questions from me here. Maybe first on demand. Is there any additional color that you can provide on slowing demand by region and market? And maybe how your visibility on demand looks into the last 2 months of the year here?

Yes. So as I mentioned in the prepared comments, we definitely saw a market change in Europe in the quarter. So I would say, broadly, Europe slowed down in the third quarter and we expect that to continue in the fourth quarter. And then in North America, it was mostly construction downturn. And outside of that, we saw significant uptick in Asia. I think we had our first double-digit organic growth quarter in a long time, especially if you exclude the impacts of the pandemic. One quarter, I think we had a good quarter because of pandemic issues in China. But double-digit organic growth in Asia is great to see. So that was a nice uptick in the quarter. But most of the slowdown, sizable in Europe and then U.S. construction. And then as far as visibility into the next quarter, we don't see dramatic changes. I would say, a little more slowdown as we enter this quarter into North America. Europe, sort of the same. We're anticipating it to get worse but it's not like it's falling off the table.

Got it. Very helpful. And then maybe just one more for me on maybe price versus raws here. I know we said there’s signs of deflation, would you say that raw material costs, they have peaked? And if so, are you still confident that the majority of your pricing will be sustained going forward?

Yes, raw materials have certainly reached their peak, although that doesn't mean they can't rise again. Q2 was the highest point, and we anticipated a slight decrease in Q3, which we did see with a lower level of inflation compared to Q2. As mentioned earlier, we expect raw material costs in Q4 to be relatively flat compared to Q3, with some costs going up and others going down.

Raw materials have definitely peaked, but that doesn't mean they can't rise again. Q2 was the peak. We anticipated a slight decline in Q3, and indeed, we observed a decrease in inflation with much lower levels in Q3 compared to Q2. So, Q2 was the peak. As mentioned in my commentary, we expect raw material prices in Q4 to be relatively flat compared to Q3, with some increasing and some decreasing.

We're confident in our pricing retention. A part of our HHC business is indexed, which means there will be some lag in its movement. This relates to the increases we saw in Q4 and the impact of raw materials in Q3. However, we anticipate strong stability in our pricing over the next 12 to 18 months, with no expected reductions in the short term.

Your next question comes from the line of Mike Harrison from Seaport Research Partners.

Congrats on the nice quarter. I was wondering if you can give us the volume and price breakdown by segment for Q3. And then maybe talk a little bit about your expectations for volume and pricing by segment as you look at the fourth quarter.

Yes. So as you know, we don't go through the specific details on volume and price. But as we showed overall, this was mostly price-driven. CA had volume declines and EA and HHC were pretty solid. But John, do you want to comment further on that?

Yes, I think the pricing was up double digits in all 3 GBUs. Volume up mid-single digits in EA. Volume was flattish in HHC and then down mid-single digits in Construction Adhesives.

Yes. And if you look at those numbers in HHC and EA, ex-Europe, they'd be a lot more positive, Mike. So Europe is the drag.

Yes. And I guess, in terms of Q4, maybe on a consolidated basis compared to the flattish or slight decline that you saw in volume in Q3, is that expected to worsen? Or still kind of a flattish number?

Yes, we're preparing for a potential decline. Although we aren't currently seeing clear signs of it, the economic news suggests it could worsen. However, we are observing improvements in Asia and gaining market share, which reflect positively in our numbers. Our guidance anticipates that overall volumes might be slightly lower, but we don't have concrete evidence of that yet. We recognize the economic conditions described in the news as a possibility, leading us to plan accordingly while also hoping for better outcomes. Notably, there has been an uptick in Asia, along with market share gains that are helping to balance any negative economic impacts.

Okay. And then in the Construction business, I’m comparing this quarter, Q3, to what you saw in Q1. The revenue number was about $25 million higher but the margin was pretty similar, even though I would have assumed that we would see some operating leverage and maybe some price/cost improvement. Can you talk about what you’re seeing in terms of price/cost, operating leverage and mix in that construction business that it’s maybe dragged on the margin performance compared to what we might have anticipated?

Yes, margins are significantly higher compared to the same time last year. Q1 is somewhat unique in the construction market, as it encompasses December, January, and February. Therefore, I prefer to compare Q3 to Q3 and Q1 to Q1 on a year-over-year basis. There's been a substantial increase compared to a year ago. John, would you say the primary factor is the mix? Is that correct?

I would say, yes, it's mostly a mix. The roofing business had a lot of pent-up demand coming into this year and started off strong, which led to significant margin improvement. However, overall, the fundamentals in terms of pricing and other factors have not changed, so margins remain the same.

Your next question comes from the line of Ghansham Panjabi from Baird.

I want to revisit your confidence in maintaining pricing. We are currently experiencing an unprecedented cycle of raw material inflation, with significant price increases both from your side and customers. Given the substantial rise in raw materials, it appears that we may be reaching a plateau and possibly experiencing some deceleration heading into next year, considering the broader economic context. I am trying to understand your level of confidence in retaining pricing under these circumstances, as this would be a departure from historical industry practices. What makes this situation different?

Historically, the industry has managed to maintain pricing, and adhesives generally represent a small fraction of overall costs. Therefore, we would typically expect to see price retention, especially in the first 18 months. Our product portfolio has increasingly focused on highly specified applications. Competitive dynamics often come into play when new products are introduced or alternatives become available. This is what I aimed to convey in my earlier comments. As smaller competitors actively pursue opportunities, we may see them introduce new raw materials or adhesive technologies. This is feasible only in a market where there is sufficient supply. We will collaborate with suppliers worldwide to develop new products, adopt innovative technologies, and find lower-cost raw materials to help manage our margins as these changes occur. Importantly, we have never reduced prices. Some customers follow pricing indexes, so their costs will rise with a delay, resulting in several quarters of price increases reflected in our figures. However, if raw material prices decrease, there may be some pushback on prices according to contract terms, though this aspect is only a minor part of our HHC business.

Okay, great. Regarding the EA segment, which has historically been exposed to some cyclical end markets, how should we approach this as we transition into fiscal year '23? I understand there are significant developments with auto OEM and substantial backlogs, but what about the other end markets?

Yes. When considering the business as a whole, it's important to acknowledge cyclicality. Our company has a significant presence in various areas, including automotive, solar, aerospace, and products related to commercial construction and durable consumer goods. Each of these sectors experiences its own cycle. Currently, the automotive sector is benefiting the business. Additionally, there's a geographic aspect to consider; what is currently happening in Europe will eventually stabilize, while our Asian operations are showing positive trends. Following the Chinese People’s Congress, we anticipate continued progress in 2023. Overall, this is a diverse business with 30 different market segments that will experience different cycles within EA. Thus, we evaluate each segment independently. Given the current global situation, they are all somewhat out of sync.

Your next question comes from the line of Eric Petrie from Citi.

So I think the largest adhesive competitor released organic sales growth target of 10% to 12%. You’re at 17% to 18%. How sustainable is that this year and next year? And how much of your portfolio would you say is spec and specified versus more substitutable on a pricing basis?

Yes. Yes, thanks for pointing that out, yes. In fact, our 2 largest competitors showed organic growth of 12% and 11% for the first half of the year versus our 18%, 19%. And biggest driver in the delta, some of that is pricing. We do have a higher price impact but there's a big volume difference and it's all tied to this market segment innovation strategy that we have. And that's very sustainable. That's built into the business model of our approach to segmented by these 30 segments and finding those market segment trends. So those market segment trends, whether that's new ways in which e-commerce is going to be packaged, paper straws, new ways in which windows are produced, being on the front end of EV, understanding the new trends in electronics and making certain that we're doing the work there is all built into our business model. And I think you saw that when you were here in Willow Lake. That very intense focus segment by segment on being on the front end of change is really what's driving things. And Celeste and the team are very focused on that innovation growth strategy and they're delivering on it quarter after quarter. It's not just the first half of this year. You see it in the organic numbers over the last few years. And so is it sustainable? I think it is. I think it's a sustainable competitive advantage that's going to continue. I can't spec the market but that delta that you talked about in our organic growth versus competition, that's what we look to achieve. And Celeste and the team are doing a great job of delivering it.

Yes. We expect our full-year operating cash flow this year to be similar to last year, and we anticipate a similar performance next year as well. This cash flow delivery will be important for our debt paydown strategy. While we may not reach our target this year, we believe we can get closer to it towards the end of next year. Additionally, we may consider some bolt-on mergers and acquisitions. Our plan is to maintain the strong cash flow we expect to deliver in the fourth quarter and achieve similar results next year to help us reach our target by the end of next year.

Or even better cash flow next year, right, depending on what happens with raws, right, as people mentioned earlier in this call, if that happens, that helps us liberate cash from working capital. But certainly, we’re committed, Eric, in a very strong way to get to that 2x to 3x. And we’ll be in the low 3s by the end of this year. We saw a big downtick this quarter and you’ll see another one next quarter.

Your next question comes from the line of Rosemarie Morbelli from Gabelli Funds.

Congratulations on a great quarter.

Thanks, Rosemarie.

Jim, I was wondering if you could talk about the supply chain, whether it is really improving. And linked to the supply chain, what are you seeing in terms of your customers’ inventories? Do you feel that they are building inventory? Or because of the looming recession, maybe they are not. Can you give us a better feel for what you see out there?

Yes. Supply chains are definitely improving, but they are still fragile. Compared to where we were in the last three or four quarters, we are in a much better position, but we have not yet returned to normal. There is some destocking occurring in certain markets, but it isn't significant. Generally, customers are likely to remain cautious for a while, especially regarding input materials like adhesives. I don't believe there will be a major incentive to save inventory on adhesives. However, there are end products, such as half-built vehicles, that will be completed. That said, much of the supply chain still has gaps beyond our customers. Although some contraction may occur in our supply chain, dealerships and downstream inventories are quite low. Therefore, I think they will balance out as we move into the next few quarters.

All right. You mentioned a small portion of HHC being indexed. Could you provide some details on the size of that indexed business? Additionally, how does Fuller position itself during a recession compared to the last one?

Yes, that's great. I would say this index case constitutes maybe less than 15% of our total company and 20% to 30% of HHC. We are extremely well positioned. I've been in this industry for 36 years, and the work that Celeste and the team have done to manage our margins and achieve this gross margin expansion amid inflation and currency fluctuations is commendable. If you consider the impact of currency, it has significantly affected our EBITDA this quarter and will do so for the year. Our EBITDA is projected to increase by 17% to 18%, and it would have risen even more without this translational currency impact. The team's efforts and our current position are very solid. Our margins will expand as we face recessionary impacts, so we are in a great position for substantial margin growth. Additionally, as Vincent mentioned earlier in the call, we benefit from carryover pricing as we enter 2023, leading to a natural increase in revenue from this pricing. Looking ahead to Q4, we are well prepared to handle whatever challenges may arise. We are preparing for the worst while hoping for the best, and I believe we are in a stronger position than we've ever been.

And your next question comes from the line of Vincent Anderson from Stifel.

I just had a one last follow-up here. I mean your margins in HHC this quarter were pretty exceptional. And then later in the call, you mentioned a lot of the price increase planned for 4Q is some of the raw materials that are passed through in that segment, if I heard correctly. So given the lag, I guess, I'm even more surprised by the margins this quarter. And so could you speak to that performance and if it reverts a little bit in 4Q, just on that price versus raws lag?

Sure. I believe there wasn't a sudden change in Q3; this has been a continuous effort by the team, and they’ve done an excellent job. We didn't see an increase in Q3, but I anticipate solid performance in Q4, though not a significant increase. We do expect some margin growth in the EA business as well as across all our businesses in Q4 due to favorable dynamics. However, I wouldn't say this growth will be disproportionately high in Q4 compared to HHC.

And there are no further questions at this time. Mr. Jim Owens, I turn the call back over to you for some final closing remarks.

Great. Well, thanks, everybody, for your questions, your interest, and for your support of H.B. Fuller. And thanks to Celeste and our teams around the world for the great results. Thanks, everyone.

This concludes today's conference call. Thank you for your participation. You may now disconnect.