Educational Development (EDUC) 14 Jan 212021 Q3 Earnings call transcript

Company Profile

Participants

Randall White	executive
Dan O'Keefe	executive
Craig White	executive
Heather Cobb	executive
Denis Amato	analyst

Call transcript

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Educational Development Corporation Fiscal 2021 Third Quarter Earnings Conference Call. [Operator Instructions] Please be advised, today's conference is being recorded. [Operator Instructions] It's now my pleasure to hand the conference over to Chief Executive Officer, Randall White. Please go ahead, sir.

Randall White

Holly, thank you very much. there. introduction Great

Operating going Heather to I'm call is thing Officer. Officer; our -- me. who's Dan The Chief Chief our is to Sales introduce going Financial Chief who's White, do got I've the I've who's I'm got I've O'Keefe, got first and Craig do Officer; Cobb, here with Marketing on and

the to information the item our just agenda hand going it first I'm and over think results. I give quarter that us about third Dan? Dan to today

Dan O'Keefe

Thanks, Randall.

Here for approximately are up fiscal approximately Net XXXX. in our $XX third quarter quarter million million, $XX.X the XXXX results. revenues third $XX.X from of third fiscal the quarter XX% reported million or of were

million, the the profit million in of Pretax to third profits quarter quarter revenues an year. of of of for increase in net of pretax the fiscal reported from in of decreased XXXX. the over $X.X third million quarter a percent fiscal Pretax last X.X% $X.X $X as third X.X% third profits totaled the XXXX quarter

$X.X Earnings totaled $X.XX of share quarter per over a reported Earnings earnings in share quarter quarter increased a per share on quarter of $X.XX by fiscal Net third to fiscal compared year. reported the from XXXX. to last reported basis quarter a diluted $X.XX the fiscal a of increased XXXX. quarter the share 'XX $X.X XXXX in the fiscal third for of XX% third last third the over year. in third XX.X% grew in approximately Earnings the fully million share million

Randall. pass the I This concludes back call will the over earnings and to results,

Randall White

been Christmas think when right Internet reporting happy have And the we can we about the important see we thanks. busy leaders most business, on is season, Dan, think I may Well, we the sales. we kept Very have with Okay. shipments. really and of things up think this keep That's critical record there during that. with shipping. that I one you an

orders getting think X I were the within we out shipped days from door. receiving or X

However, added along about increased to a about our that, concerned I And that. that we're We years. our the thought in time didn't to you some charge had would little expenses affect the we with course, I what consumer first about. X effect. tell might for of We shipping but it to box. $X it do very had know We revenue, very seemed nonreocurring

So we're that. happy about

increase to able the were we So revenue.

largest with new a but surcharge, surcharge the tell year. theirs. that had of same surcharge on theory, contract, Unfortunately, UPS And their apparently, time, the quite has will that expired. we were But price we the familiar economic increase clogging now the upcoming during freight a you customer that as I rate well a have Not lower because, the period as was that for negotiated system.

We those in had shipping, increase or -- revenue so $XXX,XXX the X things, our increase actually was the net negative of the for a quarter. in and

increasing on not So will, see coming think that increase margins reoccurring, our think that they will, that largely will the fact up. we be we'll I

Also, shift additional night cost. I've impacted an want we and that have but that another other line, thing, was couple to quarter estimated one things with $XXX,XXX don't about, in about of got for of putting extra because I temporary a this talk

it. the the first about happy happy shift, The customer to service, second you we're certainly is shift And do but about not got as efficient cost. not

reoccurring Craig do you Now with how a over Craig, I going what are I'm you here to to to we do turn think charges? Well, do this -- why think these for minute. nonreocurring? that going

Craig White

Randall. you, Thank

a our wasn't of to room it CapEx we line the in temporary was for quarter, pick the was middle and line. mid-December up reiterate kind it completely It little and tore put make third actually running So mid-October, we new of and efficient. temporary bit, just down project. to a a up It as

on Now pick temporary only ship while line. it lasted X orders about weeks, we X the to did XX,XXX

was of height efficiency. necessary but not it So the

new down it a pick which project in using lines tore packing is to CapEx We start that space, a our and decker, same mezzanine. ship double

X it's So stories.

So a basically shift we capacity, than would a year. will second next this allow not to more current which bit little double our us have

mid-April, be so more So project should be the much April of be running. and The it efficient. that up should complete Xst should to

Also, basically in tomorrow. then capped But some costs also in and most increased discount surcharges quarter, our freight that which some a throughout we an of better October, such peak UPS. surcharge as Randall the have third did surcharge new of we signed the we but have a also pandemic year; structure mentioned, from going They ends had a forward. which contract

we So that in surcharges we will recoup our all couple paid of those last quarters.

happy that. very So about

workforce shift, stable what a shift. that people. was it were new to very hiring mention training Also, have was wanted We difficult second I that and for constantly second the to

cost year. So onetime have what we'll because that nonrecurring bit our, that shouldn't second added to shift we say, a this next

Randall. anyway, back to thanks, hand you. it So I'll

Randall White

we're installed what? is Yes, that. and excited about system A some X-deck, this Okay. pick incredible. in online We technology like is feel latest that packing time

Craig White

Around Xst of April.

Randall White

like X.X%. are Without and have is our would we -- the that analysis surcharges these, hit a over is. Yes. they stopped April? charges, our XX% that we when call, what which that's reoccurring, of we are we nonreocurring do what onetime little feel that without pretax, did tomorrow, goal because our what those Xst about Around We

of X.X%. about virtual bird from conference. there blue reported, Now revenue in last quarter, having $XXX,XXX we onetime a did a we a But as had we

declining. telling efficient, things alert, If a we down," basis, just go-forward guys. these which going have your have It's there fixed, not doing. we we're no, to make more it someone are it our And But are invest, margins on margins their without we've "Oh, is got to in fixed. backroom you, which

would active be And division. Marketing the UBAM about to volume us you to Cobb, to of our talk Officer, a continues in a Heather consultants growth active kind consultant give these update our on that? Now little our driven little of increased from us Chief status,

Heather Cobb

be shared have consultants. And do to. year, of happy And active we have that closed things over to previous this past just contributed active we consultants. on we've some share with ended factors as November, we this November, a Last Randall. of with the one the to thing, calls, Thanks, not XX,XXX believe I'd happen. combination but see again, that that any over just growth XX,XXX growth caused there's we I'll

income nontraditional experiencing COVID-XX lost income increased We pandemic. for due demand an to or are supplemental replacement, to

June But for kit done In that lasted significant that, consultants. that's a impact made past, shifted in focus started and a new everyone, specials, people of on the and every a also had month. number we believe new the kit our choosing entry lower-priced to available have to our about we We consultant day, which new have we basically company. join

success of educational if with to for addition, using potential rolled a entered technology also called feel February, time consultant were improvements, increased new keeping were In to taken demand and at our maximum We learning the product had and to we our in Climb. children program we saw books people customer-facing this and sibling not for busy for teaching you in teaching, fold, use really that home. home, items By while out the as the distance back-office use activity only younger continued suite we like available. consultant products that some both were as and well quarter, they but

which we has So factors of really feel an like this the caused significant increase. had all have over those year, combined impact

I'll Randall now, for call pass So information. back the to further

Randall White

that [ by COVID. if think what's now. more way, says, not affected Heather, And it's because, Investor back. expecting critical not real solid, our the because our right street. was that Yes. business once in on it's Heather ] Day, feet will people that's ever drop the by that as at people some all I think -- driving there, It's out sales We're that's

right the happy coming with So again we're it and what's we're in increase in. and pretty to We got expecting continue, January, going has along.

element to I we we're nice pretty balance a sheet. mention, another Now -- pretty might want have

debt. we this in past long-term During year, paid million $X

short-term today, have $X -- our debt we all So and the level, by million. way. eliminated current balance And today, the we debt,

Dan O'Keefe

million. $XX

Randall White

have secured buildings, million that's X which million. debt, $XX about in by We and of have $XX a value

conservative we're that our cash Plus, think the $X.XX we annually in very increased from all area. $X.XX, So dividend flow. we from to

problem You we is million love will have The increased to we sales see have have that on It's increase. the balance inventory our that. great. as cash. $XX sheet I

the even but second and dip fourth already building is we cash And we quarter, on inventory into partially the the we one had it's allow XX in. by will be over coming if It's anticipate that have inventory sales water. will containers we're that year. for be may we because into coming bit underwater the a build significant line, ordered. that the inventory, gone the to way. on, ship Unfortunately, It's this So -- the in but on quarter that's we our

to I've With get we efficiency do been. feel nonreocurring we it the explained that margin profit that, and our onetime back is once that I hope our these eliminate like increasing level has

and you. I don't Craig, So thing free answer we'll an to or there's please -- Heather cover with I feel if for not or question, why a one that, absolutely did ask have

Operator

Bill will Anderson Our with Instructions] come [Operator the ] Baird. [ line of first from

Unknown Analyst

earnings Bard. don't there? sales got Q. Or you something stock? your I'm are if the any B-A-R-D, in haven't on model there though anyway, the per cover know you're is wondering, I you've I as more even there not than late. call I back or Baird. I'm missing operating this your But is share released -- And income increasing But leverage buying that? Did

Randall White

stock have our cost marketing profit while, basically in but model when model, dividends. we left our is bought allocate for XX% leverage our have have a haven't to a you we allocate pretty of pay costs talk run we We about and goods, there and XX in XX% is -- XX% operations, for -- back about we a

the has model that years. about XX-some So been same for

fall fallen have revenue, do doesn't it have And question? some we falls -- through significantly has think because nice so incrementally nice I than a while that, to general the fall what to the that the with overhead profit other we as investment that have in companies But up the the incrementally revenue. fact we through that's nicely. go your make through Is is level increases that -- pretty

Unknown Analyst

the mean There's from no there's of no scale. volume I yes, Well, discounts publishers as you... economies

Randall White

I by way, profits why we do And We discounts for all the have. of growth, them. that's revenue guess we -- get have, volume profit which percent exceed can exceed and have we

So it's not...

Unknown Analyst

I didn't see that this quarter.

the percentage income right? share, and than was less with Or same revenue basis missing up am Your I per earnings increase the operating something?

Randall White

something other I'll forgive missing not that. you're for than being no, late, No, Okay. but you

have some expenses. nonreocurring We

You're nonreocurring expenses. welcome. had We

you of a want last compare virtual put a to the course. They had in on the quarter, in we profit didn't UPS had reported, of this quarter, their again surcharge a clogging surcharge and we customers that on $XXX,XXX we had we If blue UPS. because made convention. to But occur were But because quarter, freight this last increase quarter, as system. largest we from a from bird their

our We to that it, increased an had also was that on and the if it some about lines to line that We for X in everything system in but packing of as get have efficient And be will first back that $XXX,XXX. shipping we charge way, by and and we time us on us on didn't back $XXX,XXX. It will the will shift new come a putting that you -- we're XX% to picking accommodate X-tiered we that cost for run, to expect the and offset X put and a the basis. estimated that we regular extra we on those, as complete the April volume. go-forward margins the in then and around have, totally years, think get -- one in be

to margin had million in the temporary So profit $XXX,XXX, second have are from quarter to -- things about in the and when about the dollars, third slight difference quarter in nonreocurring was we identified $X these a million we the charges. $XXX

around be margin. we a pretax without So XX% would those,

Unknown Analyst

did see explains to yet? Like That Or... did I didn't it. That's Q -- Q. I I what publish Okay. you When wanted the said, the know.

Dan O'Keefe

published we Q... Yes, the

Unknown Analyst

Is that available?

Dan O'Keefe

morning. the available. it's Yes, In

Unknown Analyst

was I That that's -- to Okay. what want so know.

in to and I'm increase least trying of XX% a So say, is see at a -- on that's XX% little given should revenue, at. get a earnings share. in increase what I operating there per mean you kind income

Randall White

so. think We

because that happened quarter I like have accidently. us grow system. that our -- And doesn't will this things that say some growth it you the tell have A you We We that, went to, do best things system in I'd an of we I on service, but Internet that when volume in companies unusual had this of year didn't. a spent some a and didn't it one to customer of of like fairly that. happen guess, this we new but the outage and to putting this, we lot companies had money great to large the right we're due COVID, eliminate lot outages, through

you think's if what should going happen. you to you that's make that more. So more, And I that's yes, I sell what agree with --

Unknown Analyst

in Do QX? are to you be back think margins going normal to

Randall White

quarter margins the doesn't move overhead first smallest would already The increase tends I to Four that. for expire quarter, well in blend out the to halfway because the same quarter hard the unless is the volume stay let's tomorrow. done. say, didn't surcharge It's year. then But to is fourth yes. and until that in QX

Operator

Our come next question from the Amato, private of investor. Denis line will

Denis Amato

thought one might in quarter, a great and good respond about to the good they I of of have margins the just with the minute were a you for think, that I put and minute probably had it shrinking heard get didn't were prevented call it was guys talking didn't a that a what if just And been news I you even comment has you market, what ago. suspect in and fact, explanation because on a one lot release really sort a when, had do I people because you question. what the in was pretty ago had quarter, then Comment credit weren't. stock

comment. can my that's you... question, So The

Randall White

let comment minute. address just me the a Denis,

for an people going what a have you said, in okay. said, to got we problem." these not quarter quarter look this I funds, "Hey, going because than a blah, Traditionally, I the -- been XX same the call He And great second I accountant and the report. said, they're because about same I came all "Well, who think a wrong? right. quarter." I from said, -- as we years if reported when I've blah, better we here's your What's are friendly down your You're doing would I back, in call "Oh, margins the year. previous report see

been So all had We good here, agree I will awfully these learn see, was after and stock still address stuff." yet I've that years I that, We down. with the you. report,

Denis Amato

with very would a Right. somebody to very heard interested website If your was I the consultants. day, My and noticed a getting about new went was on how I you becoming exactly the little the had company obtain in there. and was on other how consultant, website there they about that. question do maybe about more little on little on clarity there go

worked. process how curious just was that I So

Randall White

How want Heather, X-XXX-weloveyou? besides get do recruits to do you talk new about we that?

Heather Cobb

At a XX,XXX much end on. don't third promotion of point, corporate from website advertising them yes. knowing were to their active We our the over opportunity exactly upon at standpoint. reliance shared business the as the little what I tell is the this you about or friends actually consultants, family we and quarter, Yes, without have and do

that offer like and site have page opportunity, they with has the a that. which joint e-commerce Our are outfitted things basically consultants an available to different

it people they attire the UBAM conversations. They They logo questions. seeing community, through do them just out asking into do it parties. so through wearing it And and it do are through the

ways. So there's different various

Randall White

have because to the how on you -- we give here been Hey, mouth it horse's now? controller who's we straight long do how Denis, going a in I'm

Unknown Executive

Three years.

Randall White

controller to direct Three years. this a he marketing selling and the He's work. multilevel company, wanted more in know about how

consultant So study because he that. tell wanted the it He signed his wife a didn't end. to be to us he from

in he company. a So make the up this was by he sure way. ethical He involved told later, and her just because he to wanted me XXX% honest, signed

how is worked. did, had you this why he he standing you so here. experience your And don't with that and us And tell

Unknown Executive

Yes.

think know sign my probably then be X not those hosting think party, her will host -- up benefits a really the not the the of part party I the sign way, has signed from is which into and going at didn't that of pushing is all. wife of that, and first. was They been about more for that's actually think will up which actually She to consultants her company. see or EDC that how I the me about built, and It they is the rewards really people to much their UBM norm. through Most parties. traditional team way, get hosting see I success up months

what not up side, and things, the consultant say to home been also But I has can is at shelves only other we personal had book stocking being experience for company but blessing the ours. families from her also this side our absolutely a of children, our that as from blessing, such a financially,

Randall White

And trying to he He's that year, you a achieved I after she's to did. going walked success his know, had shy. had He that across I'll bit. she's our And the I bit, keep stage. she because of her to earned in a just And encourage of story. add trip don't to little I'm her understand enough the ever Hawaii. or -- first to and go yes, a X while, to bit kind she she's encourage a

Unknown Executive

That's correct.

Randall White

success, might like it. financial lovely, did because going do I take in going husband. her but thought Hawaii anyway, to that spot. the to might something you may hear it, I employee great from how don't actually we're guess that's from he your she to know the then to work with area. had I it. and who a she's She's encouragement had had but wife did His person But

Unknown Executive

add just I I'll on there... was I Denis, there And surprised something was just corporate and website, the was

Randall White

I to one was add going answer question. comment your that'll

is Our geared towards more sales divisions. -- corporate we website X have

UBAM primary through also sell our about we have X,XXX we our accounts. is different our retail and our publishing, right we division growth have division, division, driving We But now. which which retail call

not is of one more either our of so geared of -- those website inclusive corporate it's kind to them. both of And towards

Denis Amato

how just information consultant. understand. to I surprised to find a someplace to was And I about become there Yes, click wasn't more

Randall White

you if might think you'll I imagine. you Google way attention get more that,

Operator

come Buller ], of next Our private line [ will investor. the Joseph from question

Unknown Shareholder

Two questions actually.

first the because sales, you increase being So I'm said wondering, know titles of by for driven the active now I that question people on home number that of pandemic. the it being the are why Or sold? that is, conclusion? conclusion? type that of educating at making more Is you what's is the are than consultants by rather the you think, basis

Randall White

is $XX now mention division, book have successful a very, to I'll $XX. And for because $X, Noble sell they organization. what Well, it means they And $X that every there's of in what's you. then We XX% allocate for selling sell $XX, the store, for conclusion have some you the commissions, direct overrides we retail Barnes marketing. sell incentives, it but & it the of very for driving dollar people in retail

a money, wants and You lot now you this give to who have averages. FTC to we have people careful be about of because make

money money, to you tell tell while in And that her made it. was every She yes, that make on I can. that. make everybody also limited her are $XX these. And X didn't $XX,XXX, while she ago, -- month, join she's And you don't say, high to it the including And a everybody teacher with selling have people But a bring have we about November, sell doesn't tried while we working earn average what signs lady that pretty because average. your card the because I can school declined in no on last in drives $XX,XXX, you can out that didn't credit to but story to in will on Texas, charge. up me, actually and include a even somehow. I telling people make person they a industry eye years $XX,XXX. who but tear that actually Well, she book we're will this had you worked -- a if compared a So we know much people we did.

that's people I in a to not Facebook is that exaggerated. we other, each on you, don't talking be posting tonight to new maybe will very And That's But they tell to it. have to income and this over just it's home. because occurred, have claims, not careful or just bought talking not about, groups it income. they lie. how we now They're -- their come our But person's they're but how oh, that me exaggerated

earn So when and more actually that's to stay little your you add stay what I think with Heather real hear now wants bit recruiting. people home to money a And that. a at that be driving with children enough and in can is it driver them home to

Heather Cobb

opposed very comment late the to learning than as just are saw a just seeing ended lot about for categories being which of home now, from to shopped in offered the early to want is from. of this know we bit early more reached we they're necessarily what buying April say the I those specifically some you basically type back that from in of pure that We buying. folks group. pandemic the March, during difference on categories not they're up momentum a the that would a I saw one just if that as little being categories much I asked as us and indicators have they whole catalyst --

Unknown Shareholder

it. Appreciate

economy. which consultants jobs, you for is related, reason looking the the income of that increase in part the I for of people said number active pandemic the sort other or is had is I one question second The given additional know of

forecast? are to in from going attrition consultants work As to been Are and hopefully, how back the that the improves number you Have get of dramatically the so you over people you've much on? to going expecting? able course year, of

Randall White

has It's -- of had the finding they kind worked And a back? bulk in when guess. make their a I'll come to that's XX they of got and are hard Well, furloughed. one job will it is what guess years, ever because all a solid a for people out a just there lot thought sudden, they "You in the to money. the Or of going back been time. this little I'm a head, what, And fun. just of they our keep know I people of case." side part are it going on think

And they go work side, back so this on too. they if to fine, and that's keep the doing

what the or COVID entire in from being able we We've By market probably end. school there school out sell by to the the way, we haven't fairs not you million had a missed have booths we Festival if and call an and that this library. thing books any have people they'll face-to-face of that. Green $XX River missed book and Like have way,

has for that have fact people about stories increased stay family. we an think that done and the and have children. from volume this we home be at those wonderful their thing their with So what can been They've

I I'm So going lot answer there's grow. the of but factors here continue that to I we're to sure think to, an awful not that that have

Operator

And Ed question line private from the Norcini, come next investor. our will of

Edward Norcini

X? another me instead pulls In sounds the this top interesting. containers of and a and I having words... container the down if line. train very about the of pack Correct X putting It Is like kind that I'm on have road is the of a other and train wrong, something that? like question train pick going

Randall White

there'll floors, just it. right line, pick working That's order That's you and And then line and good pretty out is of happens, a good all the can and pretty X analogy of to a and above of go instead back pack, it's sections. because technology you've introduce there. got have an got through where improved I what analogy. you the because people the the the the But front mezzanine was way it, at be you've the

increasing are our technology the increasing we handles significantly the are only not that output, we order. So

pretty It's space And about for age so excited we're that. us. pretty

Edward Norcini

to you double do -- to so correct? the that to same that... of Sort don't need people Well, actually more Is hire output. do in the

Randall White

that correct. second have to it. have not that's doing there up up quite With people floor Well, there's there, still

the efficient all can be about is going unproductive. fairly what's it's on shift. be day night So to it shift The

Edward Norcini

see. I

Okay. My about Randall, other in consultants February XX,XXX you had question, XXXX. January, last year,

XX,XXX. roughly you Now have

last inventory checked XX Is that you year -- was your adequate Or inventory XX-Q. million. now? plan... to the is The at capabilities you million. now XX are just I an right Your inventory do at handle

Randall White

tell sell much they're will and year, think if be people all that how of going them our we I Ed, adequate could XX,XXX you ask contact the We little next to in you, I'd answer. confident have a inventory. more

-- of and And had. out significant we consultants our a the think giving thing And we geared it that sell you have increase just so much sold and of have we very best But going year, more as an you we in do best titles this We fast baseball, to very of And probably of done we're this. as we're can. "Hey, to we we got." what stock going we're generally, got kills the what or it. going in stock. night we're I the still today, that that, to back sold sales, Although And they've XXX and when you up can out said, make item. have an since only

it do from can't an empty shelf. You

So have. we we coming we that will non-sales the think service have in adequately inventory

Edward Norcini

this at paid? payable. million was bills there year there's looking sheet. about $X Last balance getting I'm Dan. Right Why these like for Also aren't see. the in now, $XX accounts accounts time, I payable. million in

Randall White

second. one Dan,

and suppliers of I tell behind, kind X Let Because why. me got and ago, you terms. all got about we increased years the called

instead XX- have vendors. now having XXX-day terms, of our so most of terms XX-day for to we And

have credit. we So

but got bunch So $XX -- that's a payables, from solid million we've viewpoint. that of my the got cash. we We're inventory. have Yes, we've of but

So got that's we better Dan? us my fault that to the give vendors terms.

Dan O'Keefe

now. talk You

great I do think answering job it. you a

due. do Just bills Ed. We when all our pay they're there, you're conscious

Randall White

Yes.

Dan O'Keefe

line million of credit of We've cover cash of on a that's our have with so every payable got definitely the $XX credit we sheet. that's to and and cash line taxed, not balance million got $XX ability the we've

Edward Norcini

a while make phone, ]? year Dan. you you summarize rent Can any have Okay. they to I going did HEICO forward, pay Also, for [ And on Great. last XXXX? have concessions to XXXX, you them? the all Or the did

Dan O'Keefe

yes. Yes,

$X And of which They DEWALT, and for year our -- mortgage billion it a fantastic disclosures they Hilti of Hilti payment. campus original the was they campus real a growth, payment. we've manufacturer. this about in worldwide America. kind gave And in facility. They're which on, now acres, Hilti's and payment. all we're Well, it talked 'XXs. and second divest years is about more sales. a this originally I the Ed, a here that Craig and mortgage billion acres some is Qs. over We to XX invest the do XX calls on paid in on we opportunity than rent to come decision million about previous it some and ago, complex XXX,XXX made because they for estate and think, on is about down us, of to mortgage million building and of our Heather, than tool $XX do Randall North square-foot previous $X just the So the it worldwide buy in wonderful Tulsa more And worldwide that in on built call the $X.X X the

originally So our original covers payment when so note. lease we their --

all at their great here in we're that very locations. a they're things immediately to because on and us us. community-based that just the only we'll help so you do to through guys," relationship. that to at Hilti of said, well. for just great with "Absolutely, a not It's extend This but it the do for income rent for a tenant And of when said, XX year, as They and many "Can Randall, a Now in office have they offered every pandemic on hit to leases deferral -- days to it's when exchange deferral, every us. they're XX-day They worldwide in pandemic?" space. help And went days that we source way, such city jumped is thoughtful complex landlord XX the their

Randall White

in the worth of now, building, can Every all know racks they I furniture. furniture, million get the furniture, don't we're $X space. how much left, the in warehouse. of right get over If new we this They cubicles left new time by room us They the lighted to you see pallet left in left in was here everything Hilti. they these

you, on incredible about that up. And and could the on an We tell giddy tenant. they more said, XX very their have great We've imagine, here happy I'll wanted with a got original rent, best you option. a got it. deferral we And we're they're customers. when I deal years X-month X-year ever So lease

take of So is love They us. -- we Hilti them. and care incredible, they're

Operator

a next question with is Bill ] Our follow-up Bard. [ from Anderson

Unknown Analyst

website. one what said to like gentleman just I'd Yes. the about reiterate the

I guess, spend think word. it would behoove I archaic, be a on to little pretty a site. money would you the It's

Randall White

you the on side because I the think website that's main the find that else, because maybe to answer anything. the the if people We you that who to business, of use nothing something. there, really for go number phone get don't emphasis to call on much And that to a selling just that put emphasis only got know me, to website investor want want the for... don't direct on we website, I is an

Dan O'Keefe

do a about have to do we there, Randall, -- we Craig, project. as Bill, point to your and that kind of Bill. want to you talk that? do And

Craig White

XX the -- doubled Yes, almost IT in months. last I our mean our we've stacks

the project probably year. first that So a quarter next fiscal is for of

So...

Randall White

a it. project. think a it for just way. another And out our not don't But it's emphasis not priority from there. It's don't not yes, because to look we It's couldn't just we may we That's because better. say archaic. It's revenue-generating high recruit us done be

If think you you look got that bad, at front website's our door. to

Unknown Analyst

in a Hilti door you. big got for there

Randall White

here it. and want goes that's because got don't fence the They've spend happy they We million conservative I'm door But and no. to we're shareholders' we're one. excessively largest spend a got when the $X.XX No, a big money very inside because on gray warehouse.

Unknown Analyst

and want to... investor, I as speaking I'm think Well, an you

Dan O'Keefe

kind host one just their and website very has we Craig's for our of further do that own of Bill, and too. XX,XXX sorry, website, have robust to UBAM some consultants We of them. a comments, Heather's every

are host so tied all that have different And we e-commerce our that XX,XXX websites we to over system.

necessarily be use. business websites So updated, and of to the I needs our our your all corporate that and you our I the you're it would just of of we which we're you, completely. our point, encourage kind of you're to image -- seeing to it say you give But side think not agree consultants -- to e-commerce, trying seeing to go what www.myubam.com, it's website, to an myubam.com,

Randall White

just Yes. a We're female, consultants because site try to with that are we right? the of to that best Oklahoma. paying needs very exactly expressed there up we tell when me can, you had in not the work to go are from lot we and there on that are XX,XXX XX,XXX you, let stay It's not IT them

Unknown Analyst

on money you've the years. I know technology Well, been spending over

from your So I standpoint there the to consultants. not be had investor, sign. a better assume it's with a But an good interface of

So...

Randall White

No, you. I hear

Unknown Analyst

from. I'm And that's speaking what

So...

Randall White

tell as I saw not and bad of as that bit embarrassment, front actually an you it's it's it but you, little I a door. hear as our I

have not could before And Okay. say margins everybody everything. declining. I We profit time more goes? are Our covered one must

the why that's have selling because Short people stock, the off, out. done only comes you poison. how stock, bad before, that our you that I'm all it off to is that your too if stock call. Oh, you see picked just news going guys but better, So shorted we'll for get you're

can't hey, knowledge because this X years company. know, it, you proud I of everybody -- pretax company makes bit This probably and have profitable. do, years anyway, I every $XXX,XXX $XX own for and an whole it's about made So ago, don't year, decisions. we're have amazing the of we growing, their $XX year. be you we'll want it's I to Seven million. more million,

you other investors. if actually can you doing on for calls, something Thanks investors any being being the thank me, And or we're call. you right here. guys call future So you. for have And and I'll to talk

Operator

conference to we'd on thank you Once again, for participating today's call. like

You now disconnect. may

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