Limoneira (LMNR) Q2 2026 Earnings Transcript

Date

Tuesday, June 9, 2026, at 4:30 p.m. ET

Call participants

• President and Chief Executive Officer — Harold S. Edwards
• Chief Financial Officer — Greg Hamm

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Takeaways

• Total net revenues -- $23.9 million, down from $35.1 million, reflecting the Sunkist transition, divestitures, and brokerage exit.
• Agribusiness revenues -- $22.5 million compared to $33.6 million in the prior period, primarily driven by lower fresh lemon sales volume under new cadence.
• Fresh lemon carton sales -- $17.1 million from approximately 1.03 million cartons at $16.63 per carton; prior year was $19.7 million from 1.36 million cartons at $14.52 per carton.
• Q2 noncash charges -- $23.8 million, including a $9.3 million impairment for Windfall Farms, $7.8 million loss on Arizona asset disposals, $5.1 million of accumulated FX losses, and $1.6 million for foreign receivables.
• Operating loss -- $21.7 million, versus $3.3 million, with the increase attributed to lower agribusiness revenues and $17.1 million in noncash charges.
• Non-GAAP adjusted EBITDA -- Loss of $1.7 million, compared to a $200,000 loss and exceeding internal expectations for the period.
• Adjusted net loss -- $5.2 million or $0.29 per diluted share, compared to $3.1 million or $0.17 per diluted share.
• Q2 avocado revenue -- Nominal, with 285,000 pounds sold at $0.96 per pound following a deliberate harvest delay; 500,000 pounds pushed to Q3.
• Current avocado pricing -- Quoting CEO Edwards, “So we pushed about 500 thousand pounds from Q2 into Q3. And right now, we are seeing pricing anywhere. So remember, pricing is a function of, how many sizes and the price per size. But the peak size right now is about a 48, and we are seeing about $1.40 Yeah. As of today. Yeah. A dollar 40 for the for 48 today. So anywhere from $1.30 to $1.40. So I would expect our blended average price to be somewhere on the order of magnitude of $1.30. Maybe.”
• Current lemon pricing -- CEO Edwards stated, “average pricing across all sizes and grades, the average going up about $1 a carton each month between now and October.”
• Avocado acreage -- 1,700 acres planted, 800 acres bearing, with an additional 800 acres to bear fruit over next 2–4 years, nearly doubling capacity.
• Full-year volume guidance -- Fresh lemon volumes reiterated at 4 million–4.5 million cartons, avocado volumes raised to 5.5 million–6.5 million pounds.
• SG&A savings target -- Targeting $10 million in annual selling, general, and administrative savings, driven by the Sunkist partnership and cost actions.
• Paso Robles vineyard sale -- Agreement for a $16 million sale of 80% interest in Windfall Farms: $10 million in cash at closing and a $6 million seller-finance note; closing expected in Q4; Limoneira retains 20% interest.
• Arizona lemon orchards -- Ceased citrus operations on 600 acres, shifting focus to water monetization strategies and low water use crops for anticipated profitability.
• Total long-term debt -- $93.7 million as of April 30, 2026, up from $72.5 million at year-end, attributed to seasonal cash flow timing.
• AgriMin recycling venture -- 50-50 joint venture with capacity for 295,000 tons of annual organic waste, targeting substantial future shared earnings when operational in fiscal 2027.
• Harvest at Limoneira and real estate pipeline -- Anticipated $155 million combined cash proceeds over next 5 fiscal years; consistent home sales in Phase 2 (2–7 homes/week), Phase 3 with 500 lots expected to reach market in 2027, and 300 apartments approved to break ground in second half of 2027.
• Water rights monetization -- Santa Paula Basin pumping rights and Colorado River water rights targeted for conversion to cash; monetization event expected in fiscal 2026.
• Insurance proceeds -- $2.3 million received in March 2026 for packing house incident, with $1.2 million reducing agribusiness costs and $1.1 million recorded in other operating income.
• Seasonal revenue cadence -- Sunkist partnership has shifted revenue concentration to the third and fourth quarters, resulting in seasonally low Q2 volumes and higher anticipated results in the latter half of the fiscal year.

Summary

Limoneira Company (NASDAQ:LMNR) detailed a transitional quarter marked by lower revenues and significant noncash charges stemming from asset impairments and divestitures, combined with a strategic realignment of core agricultural activities and recurring SG&A cost reductions. The company reported nominal avocado and specialty citrus revenues due to deliberate harvest shifts and business exits, positioning for improved margin capture in subsequent quarters. Management reaffirmed confidence in achieving positive adjusted EBITDA in the upcoming half, driven by higher projected avocado and lemon volumes, rising pricing trends, and ongoing operational efficiencies from its Sunkist partnership.

• CEO Edwards said, “We have built a more resilient business model that is less dependent on commodity lemon pricing while creating multiple engines for profitable growth.”
• CFO Hamm stated that liquidity is expected to improve, “as we move into the seasonally stronger second half of the fiscal year.”
• CEO Edwards explained that Sunkist “provides enhanced customer access to premium food service accounts and major US retailers through a full category citrus offering,” attributing improved lemon pricing to this expanded access.
• Management indicated that the AgriMin JV and real estate projects, including Harvest at Limoneira and Paso Robles, are expected to provide new earnings streams and cash flows as they reach critical development milestones by 2027.
• CFO Hamm described the Colorado River water rights strategy as focused on “Outright sale is probably less likely than some sort of crop substitution that frees up water that is allocated to our land and make it available to lease long-term or sell the right to access to the rights directly,” monitoring Bureau of Land Management contracts for potential monetization events.
• CEO Edwards clarified that the Windfall Farms transaction will close upon the buyer funding $10 million after July 1, with additional payments scheduled over the next three years; failure to close would result in the deal falling out of escrow but does not currently impact near-term operations.

Industry glossary

• Fresh utilization: The percentage of harvested fruit sold into the ‘fresh’ market segment, as opposed to juice or processing channels, indicating pricing and margin quality in produce operations.
• Seller-finance note: A financing structure where the seller provides a loan to the buyer to facilitate payment of a portion of the purchase price, secured by the underlying asset.
• Pumping rights: The legal authorization to extract groundwater, here referring specifically to Limoneira’s Santa Paula Basin pumping allocations.

Full Conference Call Transcript

Harold S. Edwards, President and Chief Executive Officer; and Greg Hamm, Chief Financial Officer. By now, everyone should have access to the second quarter fiscal year 26 earnings release which went out today at approximately 04: 05PM Eastern Time. If you have not had a chance to view the release, it is available on the investor relations portion of the company's website at limonera.com. This call is being webcast and a replay will be available on Limoneira's website as well. Before we begin, we would like to remind everyone that prepared remarks contain forward-looking statements and management may make additional forward-looking statements in response to your questions. Such statements involve a number of known and unknown risks and uncertainties, many of which are outside the company's control, and could cause its future results, performance or achievements to differ significantly from the results, performance or achievements expressed or implied by such forward-looking statements.

Important factors that could cause or contribute to such differences include risks detailed in the company's Form 10 Qs, and 10 Ks filed with the SEC and those mentioned in the earnings release. Except as required by law, we undertake no obligation to update any forward-looking or other statements herein, whether as result of new information, future events, or otherwise. Please note that during today's call, we will be discussing non GAAP financial measures, including results on an adjusted basis. We believe these adjusted financial measures can facilitate a more complete analysis. And greater understanding of Limoneira's ongoing results of operations particularly when comparing underlying results from period to period.

We have provided as much detail as possible on any items that are discussed on an adjusted basis. Also within the company's earnings release and in today's prepared remarks, we included adjusted EBITDA adjusted diluted earnings per share, which are non GAAP financial measures. A reconciliation of adjusted EBITDA and adjusted diluted EPS to the most directly comparable GAAP financial measures are included in the company's press release which has been posted to its website. And with that, it is my pleasure to turn the call over to the company's President and CEO, Mr. Harold S. Edwards.

Harold S. Edwards: Thanks, John, and good afternoon, everyone. Our second quarter results demonstrate continued execution of our strategic transformation to position Limoneira for long term value creation. Our second quarter includes $23.8 million of noncash charges, comprising of $9.3 million of impairment on the Windfall Farms property $7.8 million loss on asset disposals primarily related to our Yuma, Arizona lemon orchards, $5.1 million of net accumulated foreign exchange losses and $1.6 million in allowance on foreign receivables. We exceeded expectations for revenue and adjusted EBITDA in the second quarter. Reinforcing our confidence in the strategic decisions we are implementing.

The fundamentals of our business are strengthening as we track towards our targeted $10 million in annual selling, general, and administrative savings, excluding the second quarter allowance on foreign receivables, and benefiting from improved operational efficiency through our Sunkist partnership. Our avocado production capacity continues to expand and we increased our full year avocado volume guidance reflecting the strength of our growing operations. These enhancements lead us to a high level of confidence in achieving positive adjusted EBITDA in the third and fourth quarters of this year. it is important to remember that Sunkist provides enhanced customer access to premium food service accounts and major US retailers through a full category citrus offering.

This positions us to deliver comprehensive solutions for both food service and retail buyers while removing pricing pressure from the marketplace and strengthening both our packing margins and grower partner relationships. Considering we are now seeing lemon pricing above $20 per carton, and continued high levels of fresh utilization, we are very confident in improved performance this year as a lemon grower. Another key initiative involved expanding our avocado production. Today, we have 1.7 thousand acres planted with only 800 acres currently bearing fruit. An additional 800 acres will begin bearing fruit over the next 2 to 4 years, representing a near 100% increase in our avocado production capacity.

We have 400 acres of avocados we planted in 2023 and 2024 that are expected to set a crop this year and be additive to volume in fiscal year 2027. California avocados command premium pricing due to superior quality, and our strategic location provides logistical advantages to the highest per capita consumption markets in the Western United States. Beyond our core agricultural business, we continue to unlock value from our diversified asset base. During the second quarter, we completed 2 strategic initiatives.

Our 50-50 organic recycling joint venture with AgriMin to create a potential high return platform with the ability to process up to 295 thousand tons of organic waste annually and expected to generate substantial shared earnings when the facility becomes operational in fiscal year 2027. In addition, we executed an agreement for the partial sale of our Paso Robles California vineyard $16 million which Greg will provide more details on in a moment. We have also taken decisive steps in Arizona ceasing citrus farming operations on 600 acres of lemons to focus on water modernization by farming low water use crops, which we anticipate will make this asset significantly more profitable.

Our water monetization strategy is advancing on track, we expect a monetization event from our class 3 Colorado River water rights in fiscal year 26. Additionally, our Santa Paula Basin conserve pumping rights represent high value nonoperational resources that we can convert to cash while maintaining our agricultural operations. We also have our real estate development project Harvest at Limoneira. We continue to expect future proceeds from Harvest Limoneira Lewis Community Builders II, and East Area 2 to $155 million over the next 5 fiscal years. Home sales for phase 2 continued to be robust with 2 to 7 homes per week being sold. Phase 3 of the project consists of approximately 500 home lots.

And we believe we will go to market with this phase in fiscal year 2027. In addition, 300 apartments approved, and we expect to break ground on this portion of the project in the second half of 2027. Part of our real estate development is a 25-acre East Area 2 medical pavilion project we believe could begin to be monetized in fiscal year 26. Additionally, we have Lincodelmar, our 221-acre agricultural infill which represents a strategic asset with potential for residential development and significant long term value creation. In summary, as we enter the second half of fiscal year 26, we believe we are very well positioned to achieve positive adjusted EBITDA and continue building the foundation for sustained profitability.

Looking at the remainder of this year and into 2027, we expect to benefit from the AgriMin joint venture that we expect will contribute to earnings in 2027, the further expansion of avocado acres to be planted in 2027, $10 million in savings from our SG&A improvements in 2026. In cash flow from Harvest at Limoneira, continued improvement in our Sunkist relationship, and expected monetization of water rights. We have transformed our cost structure, focused our revenue streams, optimized our asset base, and positioned ourselves for sustainable EBITDA growth, and the items I just discussed have us very well positioned to unlock the tremendous asset value at Limoneira.

Now let me turn it over to Greg for the financial details and then we will take your questions.

Greg Hamm: Thank you, Harold, and good afternoon, everyone. I am pleased to be speaking with you today to discuss our second quarter fiscal year 26 financial results. Our second quarter performance demonstrates meaningful progress in our strategic transformation. While we are navigating a transitional period under our Sunkist partnership, I am encouraged to report that we exceeded expectations for revenue and adjusted EBITDA this quarter. This validates the operational improvements we have been implementing and gives us confidence as we move into the seasonally stronger second half of our current fiscal year. Let me start by addressing the quarterly rhythm that now is fundamental to understanding our business. Under the Sunkist partnership, the seasonality of our lemon revenue has shifted.

The first and second quarters represent our seasonally softer periods while the third and fourth quarters will be stronger. Total net revenues for the second quarter of fiscal year 26 were $23.9 million compared to $35.1 million in the second quarter of fiscal year 25. Agribusiness revenues totaled $22.5 million compared to $33.6 million in the prior year second quarter. Other operations revenue was $1.4 million compared to $1.5 million in the prior year second quarter. The year over year decrease in total net revenues reflects 3 key strategic changes. First, the Sunkist transition and its shift in the quarterly sales cadence. Second, our exit from the brokerage business and Chilean farming operations in the first quarter of this year.

And third, the termination of our farm management operations last fiscal year. Fresh lemon carton sales were $17.1 million in the second quarter of fiscal year 26 compared to $19.7 million in the same period last year. We sold approximately 1.03 million cartons of fresh lemons at an average price of $16.63 per carton during the second quarter of fiscal year 26, compared to 1.36 million cartons $14.52 per carton in the prior year second quarter. The decrease in volume was related to the change in cadence under the Sunkist agreement. it is important to note that per carton prices for fiscal year 26, are net of the Sunkist marketing fee.

Brokered lemons and other lemon sales were immaterial in the second quarter of fiscal year 26, compared to $2.3 million in the second quarter of fiscal year 25. The decrease was primarily due to the sale of our Chilean farms in the first quarter of fiscal year 26. Turning to avocados, we delayed the harvest of a portion of our avocados and recognized nominal avocado revenue in the second quarter of fiscal year 26. compared to $2.8 million in the prior year period. This was a deliberate decision on our part to delay the harvest to capture better expected pricing in the third quarter of this fiscal year.

Orange revenue was nominal in the second quarter of fiscal year 26 compared to $1.6 million in the same period last year primarily related to the transition of Citrus brokerage operations to Sunkist. Specialty citrus and wine grapes were also nominal in the second quarter of fiscal year 26 compared to $700 thousand in the second quarter of fiscal year 25 due to the transition of our Citrus brokerage operations to Sunkist. There was no farm management revenue in the second quarter of fiscal year 26 compared to $300 thousand in the prior year period due to the termination of our farm management agreement effective 03/31/2025.

Total costs and expenses in the second quarter of fiscal year 26 were $45.6 million compared to $38.5 million in the second quarter of last fiscal year. Driving this increase were 2 significant noncash charges. We recorded a $9.3 million impairment related to the strategic sale of an 80% interest in our Windfall Farms vineyard property in Paso Robles. And a $7.8 million loss on asset disposals primarily related to the disposal of lemon orchards in Yuma, Arizona. Combined, these noncash charges, which totaled $17.1 million, were disciplined capital allocation decisions.

The Windfall Farms transaction which we announced in April, involves selling an 80% interest in approximately 724 acres in Paso Robles for an aggregate purchase price of $16 million. $10 million in cash at closing, and a $6 million seller finance note secured by a deed of trust. We are retaining a 20% interest in the property. This transaction allows us to monetize a nonstrategic asset, redeploy capital into higher return opportunities, and maintain upside participation in the vineyards through our retained interest. We expect this transaction to close in the fourth quarter of fiscal year 26. The Yuma Lemon Orchard disposal decision is equally strategic.

We have made the decision to cease farming operations on the 600 acres of lemons that are associated with our citrus packer's property in Yuma, Arizona. This decision aligns with our water monetization strategy. Instead of farming marginally profitable lemon acres, we are focusing on water monetization by conserving water via crop substitution to low water use crops. We believe this makes the Arizona asset significantly more profitable on a go forward basis. These impairment and disposal related charges were partially offset by a decrease in agribusiness costs and expenses a $1.1 million increase in other operating income from insurance proceeds and a decrease in selling, general, and administration expenses.

The SG&A reduction reflects our targeted $10 million in annual savings from our Sunkist partnership net of a second quarter allowance on foreign receivables. We are seeing these planned costs improvements flowing through our P&L. Operating loss for the second quarter of fiscal year 26 was $21.7 million compared to an operating loss of $3.3 million in the prior year period. The increase in operating loss was primarily due to the decrease agribusiness revenues and net increased cost and expenses which included the $17.1 million in noncash charges I described earlier. Additionally, total other expense for the second quarter of fiscal year 26 includes $5.1 million in accumulated foreign exchange losses recognized on the Chilean farming entities.

This foreign currency loss accumulated from the time we purchased the Chilean farms approximately 8 years ago until we received proceeds from the sale of these entities. On a positive note, we received $2.3 million in aggregate insurance proceeds in March 2026 related to an incident at our packing house, partially related to repair costs we incurred in the first quarter of fiscal year 26. Of the total insurance proceeds received, $1.2 million was recognized as a reduction of agribusiness costs, and $1.1 million was recognized in other operating income during the second quarter of fiscal year 26.

Net loss applicable to common stock after preferred dividends was $21.4 million or $1.20 per diluted share in the second quarter of fiscal year 26 compared to a net loss applicable to common stock of $3.5 million or $0.20 per diluted share in the second quarter of fiscal year 25. The increase in net loss reflects the same factors impacting total cost of expenses and operating loss described earlier. Now let me turn to our adjusted results. Adjusted net loss for diluted EPS in the second quarter of fiscal year 26 was $5.2 million or $0.29 per diluted share compared to an adjusted net loss of $3.1 million or $0.17 per diluted share in the prior year period.

A full reconciliation is provided in our earnings release. Non GAAP adjusted EBITDA was a loss of $1.7 million in the second quarter of fiscal year 26 compared to a loss of $200 thousand in the same period last year. We exceeded expectations on adjusted EBITDA in the second quarter of fiscal year 26 and a reconciliation to net loss attributable to Limoneira Company is provided in our earnings release. I want to emphasize what these second quarter results represent. They reflect the new seasonal cadence under our Sunkist partnership. The specific noncash charges I described and the strategic investments we are making to position the company for improved performance throughout the remainder of fiscal year 26.

The underlying operational trends are positive and we have clear visibility into accelerating performance in the second half of this fiscal year. Turning to our balance sheet. We remain in a solid position to execute on our strategic initiatives, and I expect our liquidity position to improve as we move into the seasonally stronger second half of the fiscal year. Long term debt as of April 30, 2026, was $93.7 million compared to $72.5 million at the end of fiscal year 25. The increase in debt reflects the seasonal nature of our business and timing of cash flows, which we expect to improve in the third and fourth quarters as our higher volume periods generate stronger cash flows.

As we enter the second half of fiscal year 26, now our seasonally stronger period, we have visibility into expected improvements in financial results Our third and fourth quarter should benefit from higher lemon volumes under the Sunkist agreement, increased avocado volumes as we strategically delayed harvest to capture better expected pricing and continued operational efficiency. I would like to turn the call back to Harold to discuss our fiscal year 26 outlook and longer term growth pipeline.

Harold S. Edwards: Thank you, Greg. Looking at the remainder of fiscal year 26, we expect to achieve positive adjusted EBITDA in the third and fourth quarters due to a large increase in avocado volumes better lemon volume, and pricing, and realization of cost savings. For full year fiscal 26, we are reiterating our fresh lemon volumes of 4 million to 4.5 million cartons and are raising our avocado volumes to 5.5 million to 6.5 million pounds. Beyond our core operations, we have several additional value creation opportunities progressing. Our real estate pipeline remains strong with a $155 million in expected total proceeds over the next 5 fiscal years.

The LIMCO Del Mar entitlement process represents another significant real estate development opportunity, and our organic recycling is expected to contribute meaningful earnings when the facility becomes operational. In fiscal year 2027. We have built a more resilient business model that is less dependent on commodity lemon pricing while creating multiple engines for profitable growth. We believe we are very well positioned to begin unlocking the tremendous value in all of our assets over the next few years and look forward to updating you on our progress. Operator, we will now open the call to questions.

Operator: Thank you. Thank you. And with that, we will now be conducting a question-and-answer session. If you would like to ask a question, please press star 1 on your telephone keypad. The confirmation tone will indicate You may press star 2 to remove yourself from the queue. For any participants using speaker equipment, it may be necessary to pick up the handset before pressing the star keys. 1 moment while we poll for questions. Alright. And our first question comes from the line of Ben Klieve with Lake Street Capital Markets. Please proceed with your question.

El Nabar: Hey, guys. Thanks for taking my question. So notice with harvest timing, you delayed the avocado harvest to capture better pricing with only 285 thousand pounds sold in Q2 at $0.96 a pound. So how much volume has been pushed into Q3 And what pricing are you currently seeing in the market?

Harold S. Edwards: that is a great question. So we pushed about 500 thousand pounds from Q2 into Q3. And right now, we are seeing pricing anywhere. So remember, pricing is a function of, how many sizes and the price per size. But the peak size right now is about a 48, and we are seeing about $1.40 Yeah. As of today. Yeah. A dollar 40 for the for 48 today. So anywhere from $1.30 to $1.40. So I would expect our blended average price to be somewhere on the order of magnitude of $1.30. Maybe?

El Nabar: Gotcha. Okay. Thank you. And then can you also give us an update on current lemon pricing per carton?

Harold S. Edwards: Yeah. Lemons are also another encouraging story right now. We are seeing average pricing across all grades and sizes above $20. And Greg and I just saw a forecast for the remainder of the fiscal year that has the pricing, the average pricing across all sizes and grades, the average going up about $1 a carton each month between now and October. So, theoretically, $21 in July, $22 in August, and so on and so forth. So we have not seen that much strength in lemon pricing since 2018.

El Nabar: Oh, awesome. Well, good to hear. 1 more for me. So with Windfall Farms, kind of a little bit of a closing risk potentially. So Paso Robles sale is structured with $10 million cash and a $6 million permissionary note. So what conditions to closing in What are the conditions to closing in Q4? Then what would happen to the transaction if the buyer cannot close on schedule?

Harold S. Edwards: Yeah. So if the buyer if the buyer cannot close on schedule, the deal probably falls out of escrow. But we receive our first money on July 1, so just in a matter of weeks here. And then the deal can close at any time after July 1. We gave the buyer a substantial amount of time for him to complete his due diligence, which he can extend it all the way to the end of October, at which point, he will have to fund $10 million to execute the transaction. And then he will owe us $2 million annually for the next 3 years to complete the $16 million purchase for 80% of the farm.

El Nabar: Gotcha. Okay. Well, thank you. I will hop back in queue.

Operator: Thank you. Thank you. And our next question comes from the line of Puran Sharma. With Stephens In. Please proceed with your question.

Jack Harden: Hi. This is Ben Klieve on for Puran Sharma. Just to follow-up on the lemon pricing and Sunkist, Pricing was up. Year over year despite being net of the Sunkist marketing fee. How much of that improvement is mix or market slash sunkist? Customer access or fresh utilization?

Harold S. Edwards: that is a great question because it is a little bit of all of the above. I would say, the market is strengthening but I would attribute the majority of the increase to the very, very strong market presence that Sunkist provides. With contract relationships with retail buyers and very strong contracts with food service buyers. Maybe in the last thing just to mention is that our fresh utilization since returning to Sunkist is the highest we have seen in years. above 80% so far. So I know we still have half the year to go, but we are off to a great start in our relationship with Sunkist.

Jack Harden: Awesome. Thank you. And then for the Colorado River timing, what for the water rights in FY 2026, what milestone should investors watch between now and year end? And what is most likely the structure Is it, like, far following agreement, outright sale, or something else?

Greg Hamm: I will take that 1. Outright sale is probably less likely than some sort of crop substitution that frees up water that is allocated to our land and make it available to lease long-term or sell the right to access to the rights directly. And I think as far as what needs to happen to get that done, We are keeping an eye closely on some contracts along the Colorado River with the reservoirs that are going to set to expire 12/31/2026. So the pressure's on. BLM or Bureau of Land Management reclamation to get things moving in the right direction.

At the very least, there would be an extension of the current following agreements but we think there is more opportunity that we get a long term program in place and we can monetize ourselves.

Jack Harden: Awesome. Thanks so much.

Operator: Thank you. And once again, ladies and gentlemen, if you would like to ask a question, please press star 1 on your telephone keypad. Alright. Looks like there are no more questions at this time. I would love to turn the floor back over to Harold S. Edwards for closing comments.

Harold S. Edwards: We would like to thank you for your questions and your interest in Limoneira and wish you all a very great day. Thank you.

Operator: Thank you. And with that, ladies and gentlemen, this does conclude today's teleconference. We thank you for your participation, and you may disconnect your lines at this time. And have a wonderful rest of your day.

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