final transcript

Transcription

final transcript - High Liner Foods

FINAL TRANSCRIPT
High Liner Foods Incorporated
Third Quarter Results Conference Call
Event Date/Time: November 4, 2015 — 3:30 p.m. E.T.
Length: 35 minutes
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High Liner Foods Incorporated Third Quarter Results Conference Call
CORPORATE PARTICIPANTS
Heather Keeler-Hurshman
High Liner Foods Incorporated — Director of Investor Relations
Paul Jewer
High Liner Foods Incorporated — Executive Vice President and Chief Financial Officer
Keith Decker
High Liner Foods Incorporated — President and Executive Officer
CONFERENCE CALL PARTICIPANTS
George Doumet
Scotiabank — Analyst
Sabahat Khan
RBC Capital Markets — Analyst
Marc Robinson
Cormark Securities — Analyst
Michael Mills
Beacon Securities — Analyst
Bob Gibson
Octagon — Analyst
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PRESENTATION
Operator
Good afternoon, ladies and gentlemen. Thank you for standing by. Welcome to the High
Liner Foods Incorporated Conference Call for the results of the third quarter 2015. At this time, all
participants are in a listen-only mode. Following management's prepared remarks, we will conduct a
question-and-answer sessions. Instructions will be provided at that time for you queue up for
questions. If anyone has had difficulties hearing the conference, please press the * key, followed by
0 for Operator assistance at any time.
This conference call is being recorded today, Wednesday, November 4, 2015, at 3:30 p.m.
Eastern Time for replay purposes.
I would now like to turn the call over to Heather Keeler-Hurshman, Director of Investor
Relations for High Liner Foods. Miss Keeler-Hurshman, please go ahead.
Heather Keeler-Hurshman — Director of Investor Relations, High Liner Foods Incorporated
Thank you, and good afternoon, everyone. Thank you for joining High Liner Foods
conference call to discuss our financial results for the third quarter of 2015. On the call today from
High Liner Foods are Keith Decker, President and Chief Executive Officer, and Paul Jewer, Executive
Vice President and Chief Financial Officer.
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Today's call will start with Paul reviewing the Company's financial performance for the
third quarter of 2015, followed by Keith, who will discuss key developments in the quarter and
provide an update on our 2015 strategic goals before opening the call up for questions.
Before turning the call over to management, listeners are reminded that certain
statements made in today's call may be forward-looking statements that are subject to risks and
uncertainties. Management may use forward-looking statements as they discuss the Company's
strategy and business in the future.
Actual operating or financial results could differ materially from those anticipated in these
forward-looking statements. High Liner Foods includes a thorough discussion of the risk factors that
can cause its anticipated outcome to differ from actual outcome in its publicly available disclosure
of documents, particularly in its annual MD&A and Annual Information Form.
Please note that High Liner Foods is under no obligation to update any forward-looking
statements discussed today.
Earlier today, High Liner Foods reported its financial results for the third quarter of 2015.
That news release, along with the Company's MD&A and unaudited condensed interim consolidated
financial statement for the third quarter of 2015, have been filed on SEDAR, and can also be found
in the Investor Information Section of High Liner Foods’ website.
If you would like to receive our news releases in the future, please visit the Company's
website to register.
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Lastly, please at that the Company reports its financial information in US dollars, and the
results to be discussed today are stated in US dollars, unless otherwise noted.
High Liner Foods’ common shares trade on the Toronto Stock Exchange, and are quoted in
Canadian dollars.
I will now turn the call over to Paul. Paul, please go ahead.
Paul Jewer — Executive Vice President and Chief Financial Officer, High Liner Foods Incorporated
Thank you, Heather, and good afternoon, everyone. Before beginning my financial review
of the third quarter, I’d like to remind listeners that we use certain non-IFRS measures and ratios
when discussing our results, as we believe these are useful in assessing the Company’s financial
performance. These measures are fully described and reconciled to IFRS measures in our MD&A.
Please note that all comparisons provided during my financial review of the third quarter
of 2015 are relative to the third quarter of 2014, unless otherwise noted.
I’d also like to remind listeners that we acquired Atlantic Trading Company in October
2014, and therefore the comparative results did not include the impact of this acquisition.
Sales volume decreased overall in the third quarter by 1.7 million pounds, or 2.4 percent
to 67.4 million pounds. In Canada, volume increased by 0.2 million pounds, and in the US volumes
declined by 1.9 million pound, reflecting that the impact of the Atlantic Trading acquisition only
served to partially offset volume declines experienced in the rest of our US business.
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As explained on last quarter’s call, over the past year significant price increases have been
passed on to customers to cover increased raw material costs, including higher foreign exchange in
our Canadian business, and management believes cumulative price increases have adversely impact
sales volume.
The organization was very focused in the third quarter on improving sales volume, and
through more effective and increased promotional activity we did see an improvement in year-overyear sales volume trends compared to those experienced in the second quarter.
Specifically, the US experienced less of a decline in volume in the third quarter compared
to last quarter, minus 3.6 percent compared to minus 8.9 percent, and volume in Canada increased
by 1.2 percent in the third quarter compared to an 11.4 percent decrease last quarter.
Sales in US dollars decreased in the third quarter by 6.5 million, or 2.5 percent to $240.1
million. The weaker Canadian dollar in 2015 decreased the value of reported sales in the quarter by
approximately $13.3 million relative to the conversion impact in the same period last year. In
domestic currency, which is before the impact of converting our Canadian-dollar denominated
operations to US dollars, sales increased by $7 million, or 2.8 percent to $260.3 million, reflecting
the impact of price increases net of increased promotional spending and partially offset by lower
sales volume in the US.
Gross profit decreased in the third quarter by $7.1 million to $43.9 million, reflecting lower
overall sales volume, a decrease in gross profit as a percentage of sales, and an unfavourable
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change in the US dollar/Canadian dollar exchange rate. The weaker Canadian dollar had the effect
of decreasing the value of reported US dollar gross profit from our Canadian operations by $2.7
million relative to the conversion impact last year.
Gross profit as a percentage of sales was 18.3 percent compared to 20.7 percent last year,
reflecting price increases that did not fully recover cost increases; increased promotional spending;
an unfavourable change in product mix; and lower gross margins on Atlantic Trading sales compared
to the overall average margin on the remainder of the Company sales.
Adjusted EBITDA decreased in the third quarter by $1.9 million, or 10.1 percent to $17.1
million, and was 7.1 percent of sales compared to 7.7 percent last year. Approximately $1 million of
this decline reflects an unfavourable change in the US dollar/Canadian dollar exchange rate, and the
remaining decrease reflects lower overall sales volume and lower gross profit as a percentage of
sales, partially offset by lower distribution costs and lower SG&A expenses.
Lower distribution costs reflect the impact of supply chain optimization savings, and lower
SG&A expenses reflect lower sales commission and incentives and savings related to restructuring
activities, which Keith will elaborate on in a few moments.
Reported net income decreased in the third quarter by $1.5 million, or 19.8 percent to
$6.1 million with diluted earnings per share of $0.19. This decrease primarily reflects lower adjusted
EBITDA, as I just discussed, and higher nonroutine and onetime costs, partially offset by lower
income tax expense.
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Excluding the impact of nonroutine and onetime costs, which are explained in our MD&A,
adjusted net income decreased in the third quarter by $1.3 million, or 15.6 percent to $7.1 million,
and correspondingly adjusted diluted earnings per share decreased by $0.04 to $0.23.
Turning now to the balance sheet. The net working capital balance was $227.2 million at
the end of the third quarter. This was $30.3 million better than the balance a year ago due to higher
payables and lower receivables, partially offset by the impact of the Atlantic Trading acquisition.
Net interest-bearing debt was $319.1 million at the end of the third quarter, which was
$24.2 million lower than the balance at the end of the same period last year. This decrease reflects
improved cash flow provided by operating activities, partially offset by the use of debt last October
to acquire Atlantic Trading, and for a $5.7 million payment to close operating leases relating to the
American Pride business.
For the rolling 12-month period ended October 3, 2015, cash flow from operating activities
was $71.1 million, of which $39.5 million was generated in this third quarter.
Our net interest-bearing debt to adjusted EBITDA ratio, also calculated on a rolling 12month basis, improved to 3.9 times at the end of the third quarter. This was an improvement
compared to 4.4 times at the end of fiscal 2014 and 4.2 times at the end of the second quarter of
2015.
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Cash flow from operations generated during the fourth quarter will be used to reduce
debt. However, to the extent seasonal working capital requirements increase by more than free
cash flow, debt will increase and so will our net interest-bearing debt to adjusted EBITDA ratio.
That concludes my financial review for the third quarter of 2015, and I would now like to
turn the call over to Keith to discuss key developments in the quarter and provide an update on our
2015 strategic goals.
Keith Decker — President and Executive Officer, High Liner Foods Incorporated
Thank you, Paul, and good afternoon, everyone. The third quarter's financial results were
improved compared to those reported for the second quarter. And while we are not satisfied with
the results, we do believe we saw signs of improvement across the business, including in sales
volume trends.
As expected, we have not yet realized the benefit of raw material cost savings, so previous
raw material cost increases, along with the weaker Canadian dollar, continued to negatively impact
sales volume and margins in the third quarter.
Adjusted EBITDA, however, on a domestic dollar basis was relatively flat for the quarter
compared to the same period last year, reflecting the achievement of cost savings and efficiencies in
certain areas of our business.
Expressed as a percentage of sales, distribution costs and SG&A both decreased on a yearover-year basis. Lower distribution costs reflect savings in storage costs resulting from supply chain
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optimization activities. Lower SG&A expenses reflect the impact of restructuring activities which
were undertaken in certain areas to achieve efficiencies identified through our supply chain
optimization project. And in other areas, changes were made to address certain internal sales
execution and promotional challenges that management believes contributed to the Company's
underperformance in the second quarter.
New talent has also been recruited to key leadership positions, and following these
restructuring activities the organization will not only be more efficient but also better position to
achieve sales growth moving forward.
Our strategic goal to optimize our supply chain continues to be a top priority for the
organization. Activities related to this goal continued as planned during the third quarter, and most
of the activities for which we were utilizing outside expertise are now completed.
While we believe we have achieved most of the cost savings expected related to
completed activities, their impact on product margins continues to be delayed as a result of
increased production costs associated with lower volumes being produced at our plants. We expect
to continue realizing some net cost savings related to this project in the fourth quarter, and that by
the end of 2016 we can achieve the total annual cost savings of 20 million to $25 million.
Continued improvement of sales volume trends in the remainder of 2015 and into next
year will help to realize the full benefits related to our supply chain optimization activities.
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In regards to raw material costs, we expect to start realizing cost savings on certain key
species late this year and into next year. In the third quarter, promotional spending was increased
to help improve sales volume trends, and serve to help lower the price of our products to customers
in advance of the Company starting to realize expected lower raw material costs.
Improving sales volume trends remains our number one priority for the remainder of
2015, and these efforts will continue to be supported by increased promotional spending, and will
be further assisted to the extent we start to realize lower seafood raw material prices.
I want to recognize the last few months have been challenging for our shareholders as
High Liner Foods shares have traded down significantly since our second quarter results were
released. However, I believe continued commitment to our strategic goals, specifically focusing on
supply chain optimization and organic growth, is how we can continue to best deliver improved
performance in 2016.
Before opening up the call for questions, I’d like to share with you that earlier today the
Company's Board of Directors approved a quarterly dividend of CAD $0.12 per share on the
Company's common shares payable on December 15, 2015, to holders of record on December 1,
2015.
Operator, I would now like to open the call for questions. Thank you.
Q&A
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Operator
If you would like to ask a question, please press *, then the number 1 on your telephone
keypad. We’ll pause for just a moment to compile the Q&A roster.
Your first question comes from George Doumet from Scotiabank. Your line is open.
George Doumet — Scotiabank
Good afternoon.
Keith Decker
Hi, George.
Paul Jewer
Hey, George.
George Doumet
Can you guys just provide some colour on the expectations for the timing on the lower fish
prices to flow through the P&L? I guess how big is it expected in Q4? Any sense of magnitude you
can provide on average for Q1 in 2016? And the last part of that question is how much you guys
foresee that we’ll need to give up in terms of promotions?
Paul Jewer
So in Q4 of this current year we should start to see that benefit as we exit the quarter. It
will be later this quarter where we really start to see some of that benefit. There was really none to
speak of in our Q3 results.
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That benefit will then be fully realized as we go into 2016. Nothing that I can quantify in
terms of a dollar impact at this time. We would intend to invest some of that improved pricing back
into promotional activity, and in fact we invested in promotional activity in advance of benefitting
from that lower cost in order to get volume growth going to provide additional benefit when the
lower-cost product does become available.
The one thing I do need to highlight, however, which is important to consider, is the lower
costs will be primarily realized in our US business, as in our Canadian business for the first part of
2016 certainly that lower cost will be offset by the negative change in the Canadian dollar/US dollar
exchange rate.
George Doumet
Appreciate that colour. And I guess just to be clear here, the 20 million to 25 million in cost
take-out objective is still on for 2016? Are there any contingent volume assumptions to get there?
Or can current levels of volumes support that cost take-out target?
Paul Jewer
We believe we have things that we can do that that even if we were only to maintain flat
volumes, or frankly the level of volume decline that we experienced this quarter, that we would be
able to achieve that benefit. Obviously, I know I think we said this in our Q2 call, if we were to have
minus 9 percent volumes like we did in Q2, that would become a challenge.
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But at current levels we believe that benefit is fully achievable, and we did actually have
some of that benefit be realized in Q3 of this year despite some of the volume challenges.
George Doumet
Can you quantify the amount that was achieved this quarter?
Paul Jewer
Yes. There’d be a couple million dollars of benefit that we were able to achieve in the third
quarter.
George Doumet
Okay. One last one, if I may. So obviously been some significantly lower SG&A in the
quarter. Is that a sustainable run rate moving forward? Do we expect further improvements as we
enter 2016?
Paul Jewer
I think it's a sustainable run rate moving forward. We’ve identified areas in the business
where we have had the opportunity to cut costs, and those are not onetime cost cuts. Those are
cost cuts that should continue to benefit us as we move into 2016.
George Doumet
All right. That’s it. Thank you very much.
Keith Decker
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It's a function, George, of identifying areas where we could tighten up the operation. And
we have done that, and I believe that we should continue to move forward at that level.
George Doumet
Okay. Thanks so much.
Operator
Your next question comes from Sabahat Khan from RBC Capital Markets. Your line is open.
Sabahat Khan — RBC Capital Markets
Thanks. Can you maybe comment on the overall trends in both retail and US foodservice
for seafood across your channel? What you’re seeing versus last quarter?
Keith Decker
Well, I think that we can kind of segment it by Canadian versus the US business. So the
Canadian business we saw a nice rebound in the Canadian business, Canadian retail in particular,
with better promotional activity. I think we signalled during the second quarter call that we had
some promotional activity which wasn't resulting in the desired outcome. And we subsequently
made some changes during the second quarter to address that.
And I think that we did see the rebound in sales volume and sales dollars in our retail
business in Canada. We've got a lot of pressure from currency, so obviously that increased
promotional activity had some impact from a profit perspective. But that being said, we did feel
good about that.
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On the foodservice side of the business it was another one of those where we put a lot of
activity against it from an execution standpoint. We saw that the business rebounded nicely. I would
say that if you look at the US side of the business, foodservice, we had better performance than we
had during the second quarter, and the same thing with our retail business.
And I would say that given that we've got some new sales leadership in place in that
business, I would expect that that performance should continue to improve as that team comes up
to speed.
Sabahat Khan
Okay. And how would you say the overall, I guess, your primary customers across
foodservice are performing in terms of just the overall demand for seafood? How are you comping, I
guess, versus the industry?
Keith Decker
Well, on foodservice we don't see the comps because there really is no general data
associated either—first of all, the large customers like Sysco and US Foods and GFS, et cetera, they
don't disclose their percentage of seafood business, so you don't really even know how big their
total seafood business is, and they don't break it out in terms of what their category performance is
doing.
But I would say in general if you follow the industry trends of their results, you'll see that
Sysco had a better quarter. US Foods is working on their exit strategy from the Sysco US deal, and I
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think Gordon Food Service continues to do well, given that they have been relatively focused on
taking share from Sysco in the US.
Paul Jewer
I think the trend we referred to in the second quarter is still relevant that the high prices
on seafood have caused some operators to shift menu items particularly to chicken. So that is
something that we’re working to change the tide on, and lower seafood raw material costs should
help us with that.
The other thing I would say is while the industry overall has shown some signs of
improvement, from a menu occasion perspective it's primarily in breakfast and lunch as opposed to
dinner, and it hasn't been fully at the full-service restaurant piece of the business. So again, those
are areas where we’re focused on helping to show some signs of seafood growth, which are our key
customers.
Keith Decker
What I would also add to that, Sabahat, is that as prices have come down and are starting
to be realized into the marketplace, I think that you're going to see promotional activity start to
increase, not just with ourselves, but with all the seafood industry in general. When you start to see
the benefit of shrimp promotions and salmon promotions and haddock and cod promotions, I think
that that will start to have an impact on better velocity through the system.
Sabahat Khan
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Okay. Thanks. And on the supply chain initiatives I just want to get an understanding of
where you stand in terms of the actual kind of execution of the initiatives? Or is it just are you
largely through that and it’s just a matter of getting the volumes through the plant to get the
savings?
Paul Jewer
So we are largely through the plant-based portion of the supply chain optimization
initiative. We are—the third party consultant that was helping us with that is now done. So on the
plant side, I would say it is about continuing to execute on those tactics that we've introduced at
plant level and getting some volume back through the plants to allow that benefit to materialize to
the bottom line. And the benefit would be sufficient enough to offset what has been lower
absorption in the last couple of quarters.
On the broader supply chain side, we are still doing some work on improved planning in
the business, and we believe that there is still some opportunity ahead of us in 2016 in that broader
supply chain planning area.
Sabahat Khan
Okay. Thank you.
Operator
Your next question comes from Marc Robinson from Cormark. Your line is open.
Marc Robinson — Cormark Securities
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Thanks. Good afternoon.
Keith Decker
Hi, Marc.
Marc Robinson
Hey, guys. Just 2.4 million of nonrecurring costs; can you just provide a little bit more
clarity on what exactly that is? I would have thought that the M&A and consulting-related costs
would have been over within the quarter.
Paul Jewer
Yeah. There was very little in the way of M&A-related costs, obviously. There were some
consulting costs, as I mentioned. The third party supply chain consultants finished in the quarter, so
there were some costs for them. You will not see that continue to occur.
We did have some restructuring costs that we referred to in the material related to some
of the changes that Keith identified that allowed us to get some of the SG&A benefits that we
realized. And there were a couple of small assets, write-offs, related to prior acquisitions that
impacted that line as well, which would not—we would not expect would continue to occur.
Marc Robinson
Okay. There’s some commentary around lower sales commissions. Just wondering if you
could provide some clarity on what exactly that's about? Just anything you can offer on that.
Paul Jewer
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Yeah. Sure. Well, unfortunately, when you have a sales decline it means you actually pay
less incentives to salespeople. We’d rather be in the position where we’re paying more incentives
because our sales dollars are better. But that is one of the factors that does provide some of the
SG&A benefit.
Keith Decker
It wasn't a function of us cutting our commission rates or cutting our sales representation.
Marc Robinson
Yeah. Okay. That’s what I was after. Can you—I think you give some clarity on the percent
of sales related to retail, but anything you can offer on what percentage of your EBITDA is related to
your retail business, just sort of on a run rate basis?
Paul Jewer
That's something that we’ve broken out historically in terms of differential profitability
between retailer/foodservice.
Marc Robinson
So you're saying that's something that you have in the past?
Paul Jewer
We have not.
Marc Robinson
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Right. Okay. And I mean it would be more profitable than your foodservice business and
would be about 30 percent of your top line?
Paul Jewer
Nothing that I can identify specifically, and it does vary between Canada and the US as
well, obviously, given that retail is 50 percent of our business in Canada and less than 30 percent of
our business in the US.
Marc Robinson
Okay. Just anything you can offer around Atlantic Trading? There’s disclosure they’ve done
47.5 million year to date, and I think when you bought them you were talking about 75 million to 80
million. So any commentary on how Atlantic Trading is doing and how it's tracking relative to your
original plan?
Keith Decker
Yeah. I would say that as far as tracking to the original plans they’re doing what we
expected from them. I think that the effect that you're talking about with regards to sales is really a
function of the deflation of the salmon complex. And so I would say that if you look at an average
price in Chile or Norway, when we started the year the price was roughly $6.50 to 6.75 a pound
proportion, and that price today is $5. And so you’ve seen obviously a decrease in both COGS and
selling price.
Paul Jewer
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Yeah. So if you look at volume and profitability, it's exactly in line with our expectations on
the business.
Marc Robinson
Okay. All right. That's it for me. Thank you.
Paul Jewer
Thanks, Marc.
Keith Decker
Thanks, Marc.
Operator
Your next question comes from Michael Mills from Beacon Securities. Your line is open.
Michael Mills — Beacon Securities
Hi. Good afternoon, guys. Just wanted to follow on in terms of the volume situation.
Certainly positive to see a bit of volume growth in Canada. Beyond price, what will it take to see
High Liner kind of get back to a positive volume situation in the US?
Keith Decker
I think there's a couple of things here. One is really sitting around the—I think pricing has
to come down, and clearly that's going to be a key function. And it's our pricing. It's the seafood
complex pricing. I think that the lower prices coming through will definitely help to spur additional
promotions and additional volume through the system. I think that's part one.
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I think the second part that we are clearly focused upon is the right price points and the
right species. And so if you think about the customers, they have the ability to interplay multiple
species in terms of how they’re going to promote them to hit ideal price points. And a lot of our
focus has been in the last quarter on working within those species to position them at the correct
hot buttons, if you will, for the customers.
I had made some comments earlier about when you sell a 3-pound bag of salmon for
24.99 and you’re able to sell the same bag for 19.99, there's an expectation that you're going to get
a 20 percent or 30 percent lift in sales. That's the type of benefit that we need to be able to take
advantage of.
Paul Jewer
The other item I’d add to that, Mike, is clearly innovation will need to be part of that sales
growth as we move forward. And that's something that we continue to focus on and look at
delivering as we move into 2016.
Michael Mills
Yeah. So that leads into my next question. I think the last kind of major product launch was
the barbecued pulled salmon product; correct me if I'm wrong. I'm wondering if that's available in
all channels and what the reception’s been like? And if—I know you guys can’t tip your hat too
much, but in terms of over the next six, nine months if there are some what you might describe as
significant product launches planned?
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Keith Decker
So I would say that barbecued salmon was I wouldn't classify that as a major launch, but as
I characterized it, it was the first initiative of ours to move into the prepared or fully cooked arena
where we think there's opportunity. I think that the bigger opportunities will start to arrive starting
in the late first quarter and then going from there where we have started then to roll out some
additional offerings along that convenience platform. And really it's a function of trying to get at the
fast casual sector, but also a convenience factor for not only the restaurant chain environment, but
also for the retail environment.
I think that the work that we're doing from an innovation perspective you'll start to realize
that in the first quarter and after that.
Michael Mills
Okay. And then, Paul, circling back around on the 20 million to 25 million supply chain
goal. I guess if we were in what you might describe as a normalized volume environment, how much
of that 20 million to 25 million has been achieved through the end of Q3?
Paul Jewer
Well, I identified despite the volume declines we achieved 2 million in Q3...
Michael Mills
Right.
Paul Jewer
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And so obviously you can extrapolate that on a run rate basis in order to get an annual
benefit associated with that. And it would have been higher if it were not for the volume declines. I
can't give you a specific number, but...
Michael Mills
More than halfway? More than halfway there?
Paul Jewer
No, we didn't expect to be more than halfway at the end of 2015 because today it’s backend loaded, but without the volume declines we would have been much closer to our expectations
on savings in 2015.
Michael Mills
Okay. That's it for me. Thanks.
Operator
Once again, if you like to ask a question, press *, then the number 1 on your keypad.
Your next question comes from Bob Gibson from Octagon. Your line's open.
Bob Gibson — Octagon
Good afternoon.
Paul Jewer
Hi, Bob.
Keith Decker
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Hi, bob.
Bob Gibson
I might have missed it, but did you give us some colour on the overall retail industry
volumes in the States?
Paul Jewer
We did not.
Keith Decker
We did not.
Paul Jewer
They continued to be under pressure, so the category is in decline, not just our business in
US retail.
Bob Gibson
Okay. Because last quarter you said it was, I think, down double digits. Is it down that
much? Or…
Paul Jewer
It was better in Q3 than it was in Q2.
Bob Gibson
Okay. And you typically put through price increases at the end of Lent. Have you given any
thought to what next year is going to look like as far as price increases?
26
FINAL TRANSCRIPT
November 4, 2015 — 3:30 p.m. E.T.
Keith Decker
Well, we put price increases typically through in foodservice on the 1st of January, and
then we put price increases for retail through post-Lent, which would be sometime in April time
frame. So at this point we are still in our planning stage, and we have not mapped out yet what
price increases we would or would not take at this point.
Bob Gibson
Okay. Great. Thanks very much.
Operator
Once again, if you like to ask a question, press *, then the number 1 on your keypad.
We do not have any questions at this time. I turn the call over to the presenters.
Keith Decker
Thank you, everyone, for your participation in today's call. Our next conference call is
planned for February 17, 2016, during which we will update you with the results of the fourth
quarter of 2015 for the 13 weeks ended January 2, 2016. Please note that the fourth quarter of
2014 was for 14 weeks ended January 3, 2015.
Thank you, and have a good day.
Operator
This concludes today's conference call. You may now disconnect.
*****
27

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