Greetings, and welcome to the La-Z-Boy Fiscal 2024 Second Quarter Conference Call. At this time, all participants have been placed in a listen-only mode. Please note, this conference is being recorded. I will now turn the conference over to your host, Mr. Mark Becks, Director of Investor Relations and Corporate Development. You may begin.

Thank you, Genie. Good morning, everyone, and thanks for joining us to discuss our fiscal 2024 second quarter. With us today are Melinda Whittington, La-Z-Boy's President and Chief Executive Officer; and Bob Lucian, La-Z-Boy's SVP and CFO. Melinda will open and close the call and Bob will speak to segment performance and the financials midway through. We will then open the call to questions. Slides will accompany this presentation and you may view them through our webcast link, which will be available for one year, and a telephone replay of the call will be available for one week beginning this afternoon. Before we begin the presentation, I would like to remind you that some statements made in today's call include forward-looking statements about La-Z-Boy's future performance and other matters. Although we believe these statements to be reasonable, our actual results could differ materially. The most significant risk factors that could affect our future results are described in our annual report on Form 10-K. We encourage you to review those risk factors, as well as other key information detailed in our SEC filings. Also, our earnings release is available under the News and Events tab on the Investor Relations page of our website, and it includes reconciliations of certain non-GAAP measures, which are also included as an appendix at the end of our conference call slide deck. With that, I will now turn the call over to Melinda Whittington, La-Z-Boy's President and Chief Executive Officer. Melinda?

Thanks, Mark, and good morning, everyone. Yesterday, following the close of market, we reported results for our October-ended second quarter. We delivered sales in line with the high end of our guidance and non-GAAP operating margins exceeded guidance ranges issued last quarter, despite an increasingly challenging macro environment and continued soft home furnishings industry. These results were achieved via strong execution in both our retail stores and across our manufacturing supply chain, which has led to continued market share gains. Highlights for the quarter included: consolidated delivered sales of $511 million, up 14% versus our most recent pre-pandemic second quarter, but down 16% versus the prior year as expected, which benefited from delivering the above-normal pandemic backlog. Total La-Z-Boy Furniture Galleries network written same-store sales growth of 1% positive and flat written same-store sales for our company-owned retail stores. Non-GAAP gross margin improvement in both our retail and wholesale segments and total consolidated non-GAAP gross margin improvement of 340 basis points year-on-year. Non-GAAP operating margin of 7.9%, above our guidance range, but down from a year ago, given deleverage on the delivered sales decline. Non-GAAP EPS of $0.74, a 30% decline from the same period last year but 42% greater than pre-pandemic fiscal '20, and above our expectations. The launch of our new brand campaign, Long Live the Lazy, has had early success with our expanded target consumer and is contributing to strong conversion levels. And finally, continued progress against our Century Vision growth strategy, including the expansion of our retail business with the opening of two new stores and the acquisition of one independent La-Z-Boy Furniture Gallery store. Our company-owned retail store base now represents just over 50% of the entire La-Z-Boy Furniture Galleries network. The overall home furnishings industry is in a continued slowdown with year-over-year declines in category spending. Consumers continue to de-emphasize discretionary spending on durables, as they adjust to higher interest rates, and housing turnover continues to decline on a year-over-year basis. Despite these challenging consumer traffic trends, our La-Z-Boy Furniture Galleries network grew written same-store sales 1%, and company-owned stores held same-store sales flat versus last year. With our ongoing efforts to build a more agile supply chain, along with disproportionately growing our retail business, where we have greater control over the end-to-end brand variance, we are positioning our business to continue driving profitable growth over the long term. La-Z-Boy has been a trusted brand throughout our nearly 100-year history and we are encouraged by our progress, particularly given the challenges across the broader furniture industry. We continue to take a long-term approach to investing in our business and remain confident in our ability to drive performance that outpaces the industry. Additionally, should sales and traffic headwinds persist longer than anticipated, we have the proven ability to manage our cost structure. And finally, our vertically integrated model and the disproportionate growth of our direct-to-consumer business, which now contributes nearly half of our total company sales, come with a structurally higher margin and will support continued investment into the business as well as improvements in profitability. Highlighting our ongoing top-line trends, total written sales for our company-owned retail segment were up 3% versus last year's second quarter. This growth in written sales was attributed mainly to acquisitions of independent furniture gallery dealers in the quarter. Written same-store sales for our company-owned retail segment, in the second quarter, held essentially flat versus the prior year, even in the challenging consumer environment. Our Long Live the Lazy brand campaign has produced strong early results in driving more productive traffic to stores, and in-store execution remains solid with strong conversion and higher design sales. And we have sharpened some of our opening price points as raw materials and freight expenses normalize. Our written same-store sales were buoyed in August with strong Labor Day performance, but weakened during the balance of the quarter as traffic trends slowed, particularly in October, consistent with our industry. That said, we have had a solid start to the holiday season in November. Against the backdrop of a 9% industry contraction during the second quarter, our 3% increase in total written sales indicates continued market share gains. As noted, across our entire La-Z-Boy Furniture Galleries network of 353 stores, written same-store sales grew 1% for the quarter, even against this challenging backdrop. Turning to Joybird. Written sales turned positive in the second quarter, up 5% versus the year-ago period, as we lapped year-ago Labor Day when Joybird trends fell significantly, consistent with most e-commerce furniture businesses and exacerbated by short-term marketing execution issues. Our renewed marketing execution is now efficient and resonating with consumers to build brand awareness. And while Joybird posted a small loss for the quarter as expected, the focus on managing both sales and profitability has led to a notable improvement in operating performance, and we remain optimistic about the prospects for the brand returning to both top and bottom-line growth over the medium term. I also want to take some time to discuss the long-term focus we have for our business and give an update on the progress we made against our Century Vision objectives during the quarter. Recall, Century Vision is our strategic framework for setting up La-Z-Boy Incorporated for our next 100 years, as we celebrate our first century in 2027. This is measured by our intention to grow top-line at a pace double the market and deliver consistent double-digit operating margins over the long term. First, we continue to grow and update our La-Z-Boy Furniture Galleries network and our company-owned retail portion of that network through new stores, acquired stores, and remodels to provide an outstanding end-to-end consumer experience. Company-owned stores now total 177 and for the first time in our history, represent just over half of our entire network, reflecting the impressive journey our retail business has been on over the last decade. We continue to see potential for up to 400 stores across the entire network in the intermediate term, a potential incremental 13% to our total network. During the quarter, we opened two new stores and we completed the acquisition of one independent La-Z-Boy Furniture Gallery store in Lafayette, Louisiana. And in October, we signed an agreement to acquire an additional six-store network from an independent La-Z-Boy Furniture Galleries dealer in the Midwest, scheduled to close in our third quarter. As a reminder, these store acquisitions are immediately accretive to our profitability and allow the company to benefit from the integrated wholesale retail margin. As we grow our company-owned retail, our vertically integrated supply chain will become a more meaningful differentiator versus competitors in the industry. As we are uniquely able to understand the consumer and then deliver custom furniture with strong speed to market. We are actively leveraging the discipline of our team and the strength of our balance sheet to drive continuous improvements in offering greater value for our customers. These competitive advantages position us to continue to grow our business over the long term. Second on Century Vision, we are refining our brand channel strategy to expand the distribution and availability of La-Z-Boy products in additional compatible outlets to meet our consumers with the right products wherever they prefer to shop. As one example, last quarter, we announced a new partnership with Rooms To Go, a top-10 furniture retailer with a focus on Southwest and Southeast US markets, with a selected assortment of La-Z-Boy Recliners. While early, this partnership is off to a good start and we look forward to reaching more consumers through strategic partnerships. Third, we're excited about the potential of our new Long Live the Lazy brand campaign. In the quarter, we activated a new marketing strategy, leveraging database consumer insights and our brand heritage of comfort and quality to connect with a broader consumer base. Our goal is to build top-of-mind awareness, relevance, and updated perceptions of the brand. What makes us excited about our Long Live the Lazy brand campaign? It connects to cultural conversations and momentum, celebrating the value of earned rest and relaxation in our busy lifestyles. It reflects real-life lived-in rooms and well-loved homes across a variety of situations, life stages, and home styles in which people can see themselves. We leverage knowledge of consumers' rest and relaxation habits to connect, such as listening to music or a podcast, gaming, watching the news or the big game, and we will show up consistently across all touchpoints on the consumer journey to build familiarity and trust. And next, Joybird. We continue to optimize Joybird to deliver a balance of sales growth and profitability. We view Joybird as an opportunity to increase our omnichannel presence for consumers. The brand continues to have significant opportunity to grow share, which will be our focus as we make prudent choices to return to profitability. Joybird currently operates 12 stores with the recent opening of a new store in Portland, Oregon, and we have identified a total of 25 potential locations over the intermediate term with our expansion pace depending on opportunities in real estate and the overall business environment. And finally, on Century Vision, we continue our progress on building a more agile business model. Now that we have been able to successfully lower our unprecedented backlog to a more normalized level and are meaningfully improving plant productivity. We recently made decisions to further optimize our global supply chain. As part of this initiative, we are shifting upholstery production from our Ramos, Mexico operations to our other existing upholstery plants, and then relocating a portion of our cut and sew operations back to Ramos, Mexico, resulting in the permanent closure of our leased cut and sew facility in Paris, Mexico. Action taken to realign Mexico operations will be completed by the end of the fiscal year with benefits accruing in fiscal '25. The strategic decision is made possible through continued productivity improvements achieved across our remaining plant network.

Thank you, Melinda, and good morning, everyone. As a reminder, we present our results on both a GAAP and non-GAAP basis. We believe non-GAAP presentation better reflects underlying operating trends and performance of the business. Non-GAAP results exclude items which are detailed in our press release and in the tables in the appendix section of our conference call slides. On a consolidated basis, fiscal '24 second quarter sales decreased 16% to $511 million versus the prior year quarter, primarily reflecting lower delivered unit volume versus last year's backlog shipments. This quarter's sales results represent a 14% increase versus the most recent non-pandemic second quarter. As a reminder, we previously reported that last fiscal year benefited from an approximately $300 million increase in delivered sales due to the delivery of backlog of COVID-related furniture orders, which will not repeat this year. While we did not explicitly call out backlog across the quarters, the first half saw a more pronounced impact against backlog sales. As such, we expect year-over-year delivered sales comparisons to improve over the back half of the fiscal year. Consolidated GAAP operating income decreased to $34 million and non-GAAP operating income was $41 million, a decrease of 34% versus last year's second quarter. Consolidated GAAP operating margin was 6.6% and non-GAAP operating margin was 7.9%, reflecting a 210 basis point decline versus last year due to fixed cost deleverage on lower delivered sales. GAAP diluted EPS was $0.63 for the second quarter versus $1.07 in the prior year quarter. Non-GAAP diluted EPS was $0.74 in the current year quarter versus $1.05 last year. As I move to the segment discussion, my comments from here will focus on our non-GAAP reporting unless specifically stated otherwise. Starting with the Retail segment, for the quarter, delivered sales were $214 million, a 15% decrease over the prior year's second quarter, which benefited from higher deliveries of backlog. Importantly, sales were 44% higher than our fiscal 2020 second quarter, a 10% compound annual growth rate improvement over the four years. Retail non-GAAP operating margin decreased to 13% versus 16.5% in the prior year quarter. Gross margin improvements from prior period pricing actions were more than offset by higher SG&A as a percentage of sales, with fixed cost deleverage on the lower delivered sales volume. This non-GAAP operating margin result was 720 basis points higher than the fiscal 2020 second quarter pre-pandemic result, reflecting significant sustainable improvement in store execution and fixed cost leverage, due to the overall growth of the Retail business. For our Wholesale segment, delivered sales for the quarter declined to $365 million, an 18% decrease versus the prior year period, which benefited from pandemic backlog production and deliveries. Non-GAAP operating margin for the Wholesale segment was 7.7% versus 8.6% in last year's second quarter, reflecting strong gross margin improvement, more than offset by SG&A deleverage on lower sales. Gross margin improved with benefits from lower raw material pricing and duty expense. This was more than offset by fixed cost deleverage and increased marketing investments to support the launch of our Long Live the Lazy brand campaign. Joybird reported in corporate and other recorded delivered sales of $32 million, a 15% decrease versus the prior year quarter. The decline was driven by lower unit volume from more cautious consumer demand compared to earlier in the prior year. Additionally, we recently opened our 12th Joybird store in Portland, Oregon in November. We remain committed to growing the brand over the longer term and will continue to maintain our disciplined approach as we work to balance growth and profitability. Pulling all this together for the quarter, consolidated non-GAAP gross margin improved across all businesses and for the entire company, improved by 340 basis points versus the prior year second quarter, primarily due to lower raw material and duty costs, partially offset by selective pricing and promotional actions. While SG&A non-GAAP expense dollars decreased year over year, non-GAAP SG&A as a percentage of sales for the second quarter increased by 550 basis points compared with the same period last year, primarily due to sales de-leverage against last year's backlog-driven top line results. Our effective tax rate on a GAAP basis for the second quarter was 26.5% compared to the 25.8% for the prior year period. Our effective tax rate varies from the 21% federal statutory rate, primarily due to state taxes. We expect our effective tax rate to be in the range of 26% to 27% for fiscal '24. Turning to cash for the quarter, we generated $31 million in cash from operating activities. Solid cash generation on the quarter was primarily driven by profit performance. Through the first two quarters, cash flow from operations was $57 million, 84% higher than last year's comparable period. We ended the quarter with $333 million in cash and no externally funded debt. We spent $13 million in capital expenditures during the quarter, primarily related to retail store openings and remodels, as well as upgrades at our manufacturing and distribution facilities. We also spent $2 million on the acquisition of one independent La-Z-Boy Furniture Gallery store in Lafayette, Louisiana. In the second quarter, we returned $18 million to shareholders, including $8 million paid in dividends. We repurchased 326,000 shares in the quarter, which leaves 6.6 million shares available under our existing share repurchase authorization. Subsequent to quarter end, reflecting the confidence in the company's long-term growth prospects, the Board of Directors increased the regular quarterly dividend by 10%. This takes our quarterly dividend to $0.20 per share. We view share repurchases and our dividend as an attractive use of our cash and positive return to shareholders. Recall our capital allocation strategy is to invest approximately 50% of operating cash flow back into the business with the balanced return to shareholders. In the near term, we have numerous strategic investments to make as we execute Century Vision and anticipate capital allocation to be more heavily weighted to investments in the business, where our ROIs are two times our cost of capital. Before turning the call back to Melinda, let me highlight several important items for fiscal 2024 and our third quarter. Consistent with our Century Vision Strategy, we continue to target sales growth double the industry growth rate and double-digit operating margins over the long term. We expect sales in the third quarter of fiscal '24 to be in the range of $515 million to $535 million and non-GAAP operating margin to be in the range of 7% to 8%. We anticipate non-GAAP adjustments for purchase accounting charges for the year to be in the range of $0.01 to $0.03 per share. We expect capital expenditures to be in the range of $60 million to $70 million for fiscal '24 as we invest to strengthen the company for the future, consistent with our Century Vision strategy. And finally, presuming no significant worsening in macroeconomic trends, we expect to continue share repurchases at dollar levels consistent with pre-COVID repurchase activity.

Thanks, Bob. We delivered on our objectives in the quarter with many wins, including a new brand campaign launch, positive written same-store sales, sequential improvement in our delivered sales results, and growth in our company-owned retail store base, which is now just over 50% of our total network. We are engaging with an even brighter consumer than we have in the past. And although the macroeconomic environment remains challenging, we will continue to focus on driving our business, focusing on the consumer and continuously improving our execution. We have every intention of growing from our post-COVID base gaining share and believe the best is yet to come as we deliver long-term profitable growth and returns to all stakeholders. I want to thank the entire La-Z-Boy Incorporated team for their ongoing dedication and for yet another quarter of strong results, even in a challenging environment. I wish you all a happy and healthy holiday season. Thank you for your time this morning. And with that, I will turn it back to Mark.

Thank you, Melinda. We will begin the question-and-answer period now. Jenny, please review the instructions for getting in the queue to ask questions.

Our first question is from Brad Thomas of KeyBanc Capital Markets. Brad, your line is open.

Hi, good morning and congratulations on a good quarter here. Melinda, first I just want to kick off with the strong performance, particularly relative to the industry and what you're seeing on the written front, and maybe this is kind of two parts. I mean, first I was hoping you could just talk a little bit more about your own network and what you think is best driving results. And then maybe if you could also speak to some of the wins that you have had within third parties? And how much of this is just your own execution versus perhaps some of the bankruptcies that have been reported in the industry and the disappearance of competitors?

Yes, a couple of thoughts there. First of all, within our Furniture Galleries, and particularly our company-owned furniture galleries, we have been on a really strong execution march for quite a few quarters now where with the traffic that is coming in the door, what we are doing in the way of design sales, in the way of conversion rates of average tickets, the blocking and tackling, we just continue to get better there in very data-based, but blocking and tackling ways, and that trajectory continues. The second thing is, the power of the brand. And we do believe the Long Live the Lazy campaign has begun to affect that and will continue to get stronger over time, obviously long purchase cycles. And so, that's a long process. But we believe that the consumer coming in is excited about the La-Z-Boy brand and is ready to buy. That kind of speaks to that whole brand campaign is again, very data-based around speaking to a broader set of consumers than in the past but consumers that are really going to resonate with our brand's quality and comfort that we've been known for almost a hundred years. It's a challenging industry right now, and in our fragmented market, a significant number of manufacturers and retailers are exiting the business. We're taking advantage of that situation. We are ensuring that not only our La-Z-Boy brand but also our other smaller brands are ready to assist retailers that have lost supply sources as some manufacturers have left the market. Our focus is on being proactive in supporting both retailers and consumers, ensuring our brands are top of mind. If other channels close, we want to be the option they turn to.

And then, Melinda, just to follow-up on the cadence of the business, you did touch on this, I think in the remarks, but we sort of widely heard that October was a soft month. You referenced things improving in November. Any more commentary you could share about how November's been trending for you and your optimism for this holiday season?

Yeah, I mean, we've certainly seen even if you look through what would be our Q2, August, September, October, as we mentioned prepared remarks. Labor Day looked like there was some decent strengthening. And then October, I think across the, in industry was challenging. Early reads, it's still very early on the holiday season, which for all industries kind of spreads over a couple of weeks, if not months now. So, we were pleased with what we saw in the early days of the holiday season. And I think we're just going to continue to see kind of a bumpy consumer experience here for a while. So, we're focused on executing against those consumers that are still willing to buy. And it does help that we're a little more upper middle-income consumer, so they are always going to be a little less affected by some of these economic challenges.

Your next question is coming from Anthony Lebiedzinski with Sidoti & Company.

First just to follow-up on Brad's question about design sales and average ticket, is there any way you guys can share any quantifiable metrics on that? As far as how much of your revenue comes from in home design nowadays and maybe any comments on the average ticket?

We have been making steady progress with our design sales, which are now around 30% and continuing to grow. We are experiencing year-over-year improvements as our stores effectively engage with customers. Additionally, we are seeing slight increases in the average ticket, especially with higher design sales, as customers are purchasing more products. These factors, along with other initiatives we are implementing in our stores and through our brand, are contributing to our retail stores outperforming the industry overall.

Thanks, Bob. And then, in terms of the guidance for Q3, is this mostly volume driven as far as the sales decline from last year? How should we think about pricing? I know it was a bit of a factor during Q2, but just overall, just wanted to get a better understanding as to how you are thinking about the volume versus pricing dynamics?

The pricing has stabilized as we have mostly absorbed all the price increases we've implemented. We have made some adjustments to our promotional entry prices and similar strategies. We have observed some improvements in our mix, which is how we are approaching the year-over-year comparisons. From a unit perspective, the figures are relatively flat with some positive contributions from the mix between Retail and Wholesale, along with the variety of products we offer in the Retail segment.

As you mentioned, part of Century Vision's strategy is to achieve double-digit operating margins. You implemented some changes to your supply chain last quarter, staying agile as you put it. Can you share whether you believe it's possible to return to double-digit operating margins even if revenue remains below the peak levels experienced in fiscal '22?

Our plan is to increase sales beyond the peak levels we reached by implementing our Century Vision strategy. This involves enhancing our retail operations through acquisitions, new store openings, and ongoing efforts to drive same-store sales. Our channel expansion strategy is working, as we are reaching new customers and generating additional volume. We anticipate that consumers will return to shopping as the economy improves, the housing market recovers, and the industry rebounds. Factors such as these suggest that we will surpass the peak experienced during COVID. However, the timing of this is dependent on the macroeconomic environment. We are focusing on all areas we can control to facilitate this outcome. Additionally, we are putting significant effort into reviving our wholesale business to achieve 10% margins, similar to pre-pandemic levels. We've enhanced efficiency in our plants and made the decision to close a facility due to productivity gains at our U.S. plants, allowing us to manage the volume effectively. While this won't happen immediately, we are committed to steadily advancing our wholesale business toward that 10%. We will also maintain strong execution on the retail side, which is essential for achieving consistent double-digit margins.

Our next question is coming from Bobby Griffin of Raymond James.

Bob, I'd like to revisit the restructuring and see if we can delve deeper into the changes. Additionally, I'd like to discuss how you believe these opportunities might impact wholesale margins. The second part of my question is when you compare now to pre-pandemic times, specifically FY '19, what are the main factors contributing to the difference between wholesale margins of 10% and the current 7% or 8%?

I'll start, Bobby. If you look at what we did over the last three years when there was so much supply chain disruption, and then at one point we were at kind of a six-to-nine-month backlog. What we did is prioritize getting our consumers and our customers' service. And as our production process is an artisan process, it's people with hands putting together fabric, foam, steel, and wood. And so we opened up quite a few leased facilities to essentially get the people and the processes in place to service that backlog. As the dust has settled now, that's giving us the opportunity to look at that, get back to the blocking and tackling work that we've had for many years around being super productive and get our existing plants back on track with less disruption. So with that, enables us to start to, it's never easy to be clear to close locations, right? Those that impact people. But we're making those tough choices and closing down some of those leased facilities and all, as the rest of our network kind of gets back to the excellent productivity levels that they've had in the past. So I think that that's the biggest single piece is somewhat managing through the disruption now and then designing that footprint of the future that meets our consumer needs and our customer needs for the long term at the sort of strategic level.

And then Bob, I think, you touched on it a little bit in your remarks about improving the efficiency, but just any color on kind of where we are versus historical efficiency on an output per employee or any type of metrics you guys look at that kind of help us think about this sequentially building, because I believe that is probably one of the biggest drivers of getting wholesale margins back to double digits, right?

It is a combination of productivity and the recent decision we made. We expect to see a 50 to 60 basis point improvement next year compared to this year due to the restructure we announced. This won't take effect until next year, as it will require three to six months to complete, and it will be finished by the beginning of fiscal '25. It's not solely about worker productivity; we're also focusing on how we schedule our plants and the products made in them. Additionally, we're addressing our delivery expenses and network. We're evaluating every aspect of our supply chain cost structure through a program we call Transform, which is looking for improvements in various areas. It's challenging to pinpoint just one metric, like productivity measured in sofas per shift, and quantify it as a percentage increase. I hope this addresses what you were looking for.

The basis point improvement based on restructuring is helpful too. And I guess the last side of things is, what does the change do from a capacity standpoint? Hopefully, one day, we are going to get back to a point where industry is growing again. I am hopeful that's going to happen sometime. But what does it do from a capacity standpoint, if we get back into a nice type of recovery?

Our focus is absolutely making sure we can service those incoming order rates. And to your point, eventually, there is going to be a tailwind here, on top of all the good work to drive demand. And so, that's part of our overall equation is to make sure we have got the headroom for when we see order rates pick back up significantly. And importantly, our supply chain will remain agile. So over time, the potential for expansion of our existing same footprint is something we are always looking at to make sure not just that we have got enough capacity, but that it is in the right locations. Furniture are big pieces to move around, so you want to make sure that, footprint is in the right place relative to where your customer base is too.

And then congrats on getting the agreement to acquire the six Midwest stores. Are the conversations changed any or happening more frequently with some of the independent galleries, given some of the headwinds the industry has been facing or is it still kind of as we have always talked about historically kind of ebb-and-flow basis of timing you can't really predict?

We have talked over the last couple of years about being a little more strategic in those conversations on our end, rather than kind of waiting to see if someone knocks on the door, making sure we are proactively. Partnering with our long-term independent furniture gallery owners so that they know we are here, if they are interested and what that would look like for them financially. So we have been definitely more strategic in those conversations in recent years. I wouldn't say anything given the economy is really changing right now. Simply, for the most part, La-Z-Boy Furniture, as you saw in the results the last couple of quarters, La-Z-Boy Furniture Galleries broadly are performing well on the strength of the brand and the product offerings. And so you are not seeing that like you might see mom and pops that are general dealers selling a lot of different brands struggling more.

Thank you very much. We don't appear to have any further questions in the queue. I will now hand back over to the management team for their closing comments.

Thanks, Genie. Melinda, Bob, and I will be in our office to take any follow-up questions we didn't get to on the call. Have a great day.

Thank you very much, everyone. This does conclude today's conference call. You may disconnect your phone lines at this time and have a wonderful day. Thank you for your participation.