Hydrofarm : Q3 2023 Earnings Call Transcript

Corrected Transcript

09-Nov-2023

Hydrofarm Holdings Group, Inc. (HYFM)

Q3 2023 Earnings Call

	Total Pages: 9
1-877-FACTSET www.callstreet.com	Copyright © 2001-2023 FactSet CallStreet, LLC

Hydrofarm Holdings Group, Inc. (HYFM)	Corrected Transcript
Q3 2023 Earnings Call	09-Nov-2023

CORPORATE PARTICIPANTS

Anna Kate Heller	Bruce John Lindeman
Senior Vice President-Investor Relations, ICR	Executive Vice President & Chief Financial Officer, Hydrofarm Holdings
William D. Toler	Group, Inc.
Chairman & Chief Executive Officer, Hydrofarm Holdings Group, Inc.

......................................................................................................................................................................................................................................................

OTHER PARTICIPANTS

Peter Grom

Analyst, UBS Securities LLC

Jesse Redmond

Analyst, Water Tower Research LLC

......................................................................................................................................................................................................................................................

MANAGEMENT DISCUSSION SECTION

Operator: Good day, ladies and gentlemen and thank you for standing by. Welcome to the Hydrofarm Holdings Group Third Quarter 2023 Earnings Conference Call. At this time, all participants have been placed in a listen- only mode and the lines will be open for your questions following the presentation. Please note that this conference is being recorded today, November 9, 2023.

I would now like to turn the call over to Anna Kate Heller, ICR to begin.

......................................................................................................................................................................................................................................................

Anna Kate Heller

Senior Vice President-Investor Relations, ICR

Thank you and good afternoon. With me on the call today is Bill Toler, Hydrofarm's Chairman and Chief Executive Officer, and John Lindeman, the company's Chief Financial Officer. By now everyone should have access to our third quarter 2023 earnings release and Form 8-K issued today after market closed. These documents are available on the Investors section of Hydrofarm's website at hydrofarm.com. Before we begin our formal remarks, please note that our discussion today will include forward-looking statements. These forward-looking statements are not guarantees of future performance and therefore you should not put undue reliance on them. These statements are also subject to numerous risks and uncertainties that could cause actual results to differ materially from our current expectations. We refer all of you to our recent SEC filings for a more detailed discussion of the risks that could cause - that impact our future operating results and financial condition.

Lastly, during today's call, we will discuss non-GAAP measures, which we believe can be useful in evaluating our performance. The presentation of this additional information should not be considered in isolation or as a substitute for results prepared in accordance with GAAP and reconciliations to comparable GAAP measures are available in our earnings release. With that, I would like to turn the call over to Bill Toler.

......................................................................................................................................................................................................................................................
	2
1-877-FACTSET www.callstreet.com	Copyright © 2001-2023 FactSet CallStreet, LLC

Hydrofarm Holdings Group, Inc. (HYFM)	Corrected Transcript
Q3 2023 Earnings Call	09-Nov-2023

William D. Toler

Chairman & Chief Executive Officer, Hydrofarm Holdings Group, Inc.

Thank you, Anna Kate and good afternoon, everyone. We are pleased that in the third quarter we achieved adjusted EBITDA profitability for the second quarter in a row. The successful execution of our restructuring and related cost saving initiatives has driven significant improvement in our adjusted gross profit, which was also driven by greater emphasis on our own proprietary brands, which typically carry a higher margin.

Our quarter-end cash balance is the highest it's been since the second quarter of 2021, putting us in a much stronger position as a result of our laser-focus on optimizing our business to drive profitability. We've maintained our dedication to excellent customer service and on-time deliveries, even as we reduce cost, while we've implemented operational changes, our distribution footprint remains customer-centric, and we maintained our commitment, providing top notch service.

We're glad to report that even at current sales levels, we've achieved significant progress in many areas this quarter, delivering both adjusted -- positive adjusted EBITDA and strong free cash flow. Our primary focus at Hydrofarm continues to be diversifying our revenue stream and controlling cost, whether it's through rightsizing the company, improving operational efficiency or emphasizing profitability throughout everything we do. I'll start by highlighting a few positives on the top and bottom line in Q3. Our proprietary nutrient business, which is one of our highest margin product lines, again delivered a strong performance. We saw excellent results in numerous key proprietary brands, which contributed nicely to this quarter's margin expansion. Our propriety brand nutrients sales grew over 20% versus third quarter of last year, in large part to our great brands, including House & Garden, Grotek, and Heavy 16.

We also continue to enhance the diversity of our revenue streams, with a growing proportion of sales, originating from customers outside of the US and Canada. Additionally, we observed an uptick in sales year-to-date versus last year from non-cannabis CEA applications, including food, floral, lawn and garden, making our progress in diversifying revenue sources. I'm pleased to announce that our restructuring and related cost savings actions have been successful, as evidenced by our strong year-over-year improvement in adjusted gross margin and adjusted SG&A as well as positive adjusted EBITDA for the second quarter in a row. We still have work to do, but these improvements demonstrate significant progress. Given the current industry backdrop, we initiated second phase of restructuring focused primarily on our durables business, which John will talk about more in a moment.

We will continue to control what we can by driving improved brand mix distribution center and manufacturing productivity and reducing SG&A. I am encouraged by our team's disciplined execution during the quarter, achieving adjusted EBITDA profitability at these lower sales rates and adjusted gross margin improvement that we saw in the third quarter versus last year is a testament to the success of our recent actions, which has put us in a stronger position heading into 2024 and beyond. We are seeing positive momentum from a regulatory standpoint and we remain confident the industry will return to growth. Several potential catalysts on the horizon for the cannabis industry. The first is the possibility of now the [ph] SAFE Banking Act (00:05:00) and federally - federal de-scheduling or rescheduling, which could inject new light into the industry by attracting renewed investment from both institutional and retail players. Another notable catalyst lies in the US states where adult-use cannabis has been approved. But there's been a slow start but now these states are starting to position themselves for significant growth.

And Ohio, it's a recent addition to the list having just legalized adult-use cannabis on November the 7th, making it the 24th state to do so. We are hopeful the Ohio State Legislator will follow the will of the people and approve this measure. Being the seventh most populated state in the US, this is certainly significant and it actually pushes the total US adult-use population to over 50% for the first time. There is increasing momentum in additional states as

	3
1-877-FACTSET www.callstreet.com	Copyright © 2001-2023 FactSet CallStreet, LLC

Hydrofarm Holdings Group, Inc. (HYFM)	Corrected Transcript
Q3 2023 Earnings Call	09-Nov-2023

well, like Pennsylvania, Virginia and Florida, where we believe we may have fully legalized adult-use cannabis on the ballot in the near future and have successful to expand the industry's reach and present new growth opportunities.

With that, I'll turn it over to John to further discuss the details of our third quarter financial results and our outlook for 2023. John?

......................................................................................................................................................................................................................................................

Bruce John Lindeman

Executive Vice President & Chief Financial Officer, Hydrofarm Holdings Group, Inc.

Thanks, Bill. And good afternoon, everyone. Net sales for the third quarter were $54.2 million, down 27% year- over-year, driven primarily by a 22% decrease in sales volume. We realized a price mix decline in the quarter, much like we have for the last several quarters and as we expect for the full year. Our 5% price/mix decline in the quarter is primarily due to promotional activity in both durable and consumable products. Our price/mix decline in the period was also driven by a higher mix of lower-priced consumable products relative to higher-priced durables.

Despite some competitive pricing in the grow media category, we still experience much stronger top line performance in our consumable products relative to durables. In fact, consumables represented approximately 75% of total sales in the quarter, up from 67% in Q3 last year. Much of this shift was influenced by a broader industry trend of weakness in durable products. In particular, sales of lighting and equipment commonly used in new expansion projects or newly established grow operations. This mix change is also a reflection of the demand for several of our higher-margin proprietary nutrient brands. As Bill mentioned, our proprietary nutrient brand sales grew double-digits in the quarter compared to the same period last year. In an industry environment in which growth is hard to come by, we are really pleased with our Q3 top line growth in our key proprietary nutrient brands.

In connection with our strong nutrient performance, our proprietary brands as a whole in Q3 mix is slightly higher on a year-over-year basis and remained above 50% of our total sales. In addition to the favorable brand mix, we recognized sales improvements in a few key geographies this quarter. Sales to customers outside of the US and Canada increased over 20% in Q3, which now marks the third consecutive quarter of year-over-year growth. In addition, during the quarter, we experienced good year-over-year momentum in hydroponics sales to our Canadian customers. And in the US, we experienced some pullback in the quarter in several key western states, namely California but this was partially offset by relative strength in several states in the Midwest and in the Northeast.

Gross profit in the third quarter was $3.3 million compared to $5.9 million in the year-ago period. Adjusted gross profit was $12.5 million or 23% of net sales in the third quarter compared to $7.8 million or 10.5% of net sales in the year-ago period. This strong over 1,200 basis point improvement in adjusted gross margin as a result of continued reduction in the inventory charges, improved brand mix, reduced freight costs and improved productivity. And while we are relatively pleased with this improvement, I should note that adjusted gross margin would have been another 200 basis points higher, if not for an approximate $1.2 million non-restructuring inventory charge we took in the quarter. Though we assess inventory values each quarter, we do believe the inventory charge we took in Q3 is a relatively isolated charge and as you read in the outlook section of our earnings release this afternoon, we still expect minimal additional non-restructuring inventory charges for the remainder of the year.

Given the considerable progress we've made thus far on improving adjusted gross profit margin, we have initiated second phase of restructuring. Phase 2 is centered on rightsizing the elements of our business associated with

	4
1-877-FACTSET www.callstreet.com	Copyright © 2001-2023 FactSet CallStreet, LLC

Hydrofarm Holdings Group, Inc. (HYFM)	Corrected Transcript
Q3 2023 Earnings Call	09-Nov-2023

durable products and so this has emerged as the most challenged segment during the industry slowdown. In the third quarter, we recorded $7.8 million of restructuring expenses associated with reducing our durable manufacturing footprint and writing down the value of raw material inventory in connection with vacating storage space. And I should note that while we are reducing our manufacturing footprint, we are not eliminating any key manufacturing capabilities. We expect the second phase of the restructuring to result in annual cost savings of approximately $1.5 million, the bulk of which we will begin to realize in fiscal 2024. Our team is working hard to improve the structure of our business. We are optimistic by the progress from Phase 1 and look forward to continuing to execute on Phase 2 [indiscernible] (00:10:31) further cost savings in 2024. I look forward to providing another update on our restructuring efforts on our year-end call in the New Year.

Selling, general and administrative expense was $19.5 million in the third quarter compared to $26.2 million in the year-ago period. Adjusted SG&A expenses were $12 million, down from $16.8 million last year and our lowest quarterly total since before going public in late 2020. The $4.9 million reduction or 29% decrease was primarily due to reductions in head count, professional fees and lower accounts receivable reserves primarily result of the restructuring plan and related cost saving initiatives. Adjusted EBITDA was $0.5 million in the third quarter compared to a loss of $9 million in the prior-year period, representing positive EBITDA for the second quarter in a row. The $9.5 million increase was driven primarily by our lower adjusted SG&A expenses and higher adjusted gross profit. We are also now adjusted EBITDA positive for the nine months year-to-date through September 30. Our ability to generate positive EBITDA and lower sales levels is encouraging and is a testament to the effectiveness of the restructuring and cost-saving initiatives.

Moving on to our balance sheet and overall liquidity position, our cash balance as of September 30, 2023 increased by $5.8 million during the quarter to $32.5 million. And while we ended the quarter with approximately $123 million of term debt, approximately $133 million of total debt, inclusive of finance lease liabilities, the considerable increase in our cash balance over the last two quarters now has helped to drive our net debt down to approximately $100 million. As a continued reminder, our term loan facility has no financial maintenance covenant, principal amortizes at only 1% annually, and our debt facility does not mature for another five years in October 2028, we continued to maintain a zero balance on our revolving credit facility throughout the third quarter. We had positive free cash flow again this quarter as we generate net cash from operating activities of $7.7 million with capital investments of $0.8 million, yielding positive free cash flow of $6.9 million. We continue to aggressively convert our working capital into cash, helping us to generate positive free cash flow in the full nine- month year-to-date period.

With that, let me turn to our full-year 2023 outlook. We are reaffirming expectations of net sales in the range of $230 million to $240 million. Now expect our top line results to be around the lower end of that range. With the strength of our cost-saving efforts and the performance of our proprietary nutrient brands, we are reaffirming modestly positive adjusted EBITDA for the full year. We also still expect to generate positive free cash flow for the full year. I should note that we did lower our expectation for capital expenditures to $4.5 million to $5.5 million for the full year, down from $7 million to $9 million previously. As we slowed our spend in Q3, while we are finalizing our plans for the Phase 2 restructuring initiative. With our Phase 2 plan now established at the end of Q3, we do expect our CapEx spending to pick up in Q4 and into early next year.

In closing, we are encouraged by the improvements in profitability that we achieved through the execution of our cost-saving initiatives. We remain optimistic about the future of the industry and the growth opportunities for Hydrofarm in 2024 and beyond. We look forward to providing further updates next quarter. This concludes our prepared remarks and are now happy to answer your questions. Operator, please open the line for questions.

	5
1-877-FACTSET www.callstreet.com	Copyright © 2001-2023 FactSet CallStreet, LLC

Hydrofarm Holdings Group, Inc. (HYFM)	Corrected Transcript
Q3 2023 Earnings Call	09-Nov-2023

QUESTION AND ANSWER SECTION

Operator: Thank you. We will now be conducting a question-and-answer session. [Operator Instructions] Our first question comes from Peter Grom with UBS. Please proceed with your question.

......................................................................................................................................................................................................................................................

Peter Grom

Analyst, UBS Securities LLC

Thanks, operator. Good afternoon, guys. Hope you're doing well. So Bill I wanted to ask...

Q

......................................................................................................................................................................................................................................................

William D. Toler

Chairman & Chief Executive Officer, Hydrofarm Holdings Group, Inc.

Thanks, Peter.

A

......................................................................................................................................................................................................................................................

Peter Grom

Analyst, UBS Securities LLC

Q

...specifically around your confidence. You mentioned the industry returning to growth and obviously it's been a tough couple of years here, but you did touch on a lot of positive developments. So is this something that you think can actually occur as we look out to 2024 over the next 12 months to 18 months or is kind of the exit rate we're seeing in 4Q, I think the implied guidance is calling like a mid-to-high teens decline. Is that a fair run rate to kind of start the year at? Thanks.

......................................................................................................................................................................................................................................................

William D. Toler

Chairman & Chief Executive Officer, Hydrofarm Holdings Group, Inc.

A

Yeah, I think it's - hi, Peter. Good question. I think it is a fair rate to start the year at, but I think there are a number of signs that are pointing toward growth in probably let's call it sometime in 2024, maybe the back half of 2024. There - our backlog on our durables bids is starting to bid a little bit. The commercial activity is picking up some. You're seeing these states that have been woefully slow and rolling out, starting to do some things, whether that's New York, New Jersey or Connecticut, they're all starting to pick up. Maryland has been pretty good and Missouri is getting better. All those things are starting to turn a bit. I think, you're going to see and we have seen that in addition to the legislative stuff that we talked about and those things can be a few months away. They can be a few longer than that away. We don't really know at this point, but all of that is pointing in the right direction. But as you said, it's been elongated, difficult period of time for all of us. And so we are hesitant to call anything until we see it and we're kind of planning as if it's going to run at the certain rates it's running at now and keep getting costs under control, keep managing the mix and keep looking at your assets to find ways to create a more profitable company.

......................................................................................................................................................................................................................................................

Peter Grom

Analyst, UBS Securities LLC

Q

That's super helpful, Bill. And then I guess just maybe a follow-up from a margin perspective and maybe more of like a long-term question, right and it's obviously very encouraging to see two, three quarters of positive EBITDA on the lower sales base. But can you maybe frame in the context of the restructuring you've done, you announced a second restructuring today, other cost saves like what really is achievable from a margin perspective, particularly if we start to get some stabilization or growth in the back half of next year. Obviously, several years ago, you had some more ambitious goals from a profit standpoint, but just in the world where we are in today, I

	6
1-877-FACTSET www.callstreet.com	Copyright © 2001-2023 FactSet CallStreet, LLC

Hydrofarm Holdings Group, Inc. (HYFM)	Corrected Transcript
Q3 2023 Earnings Call	09-Nov-2023

think it would be helpful to kind of frame what's really possible and how long you actually think it can take to get there.

......................................................................................................................................................................................................................................................

Bruce John Lindeman

Executive Vice President & Chief Financial Officer, Hydrofarm Holdings Group, Inc.

A

Yeah, I'll jump in on that one and thanks, Peter. Great, great, great question. Yeah, I mean I think if you look at the past three quarters, our adjusted gross profit margin has been running around 24%. I mean, we've had sort of two quarters where it was 23%, one quarter it was 27%. Frankly, the quarter we just finished, as you saw me call out in our prepared remarks, we put up a 23% adjusted gross profit margin, but really sort of 200 basis points higher when you take into consideration of the charge that we incurred in the period. So I think if you were to get just a little bit of cooperation from the industry and a little bit of growth, I think, we could look at something in the 23% to 25%, maybe a little bit better than that sort of adjusted gross profit margin. And when we talk about adjusted SG&A, we're kind of running right now around $12 million to $13 million kind of range on an adjusted level, which is down nearly $3.5 million, $4 million from where we began the year. So as we go into 2024, we're going to get some lap benefit from that, just quite simply from the savings that we've already instituted and already received some benefit from. You also heard from the restructuring effort, Phase 2 that we're putting in place. We're expecting $1.5 million of additional savings there. So I definitely feel like we've got some more opportunity in front of us with respect to growing the margin at the EBITDA level from here.

......................................................................................................................................................................................................................................................

Peter Grom

Analyst, UBS Securities LLC

Super helpful. Thank you so much. I'll pass it on.

Q

......................................................................................................................................................................................................................................................

William D. Toler

Chairman & Chief Executive Officer, Hydrofarm Holdings Group, Inc.

Thanks, Peter.

A

......................................................................................................................................................................................................................................................

Operator: Our next question comes from Jesse Redmond with Water Tower Research. Please proceed with your question.

......................................................................................................................................................................................................................................................

Jesse Redmond

Analyst, Water Tower Research LLC

Q

Hi, guys. I had a question on the product side as we've chatted before. I always enjoy using your products and personally like your roots organic line for the things that I do in my backyard every season. But I know you've also been working on some proprietary nutrient brands, and I just wondered if you had an update there or you could talk a little bit about how those are performing.

......................................................................................................................................................................................................................................................

William D. Toler

Chairman & Chief Executive Officer, Hydrofarm Holdings Group, Inc.

A

Yeah, thanks, Jesse. And probably the strength of our portfolio and embedded in all this adjusted gross profit progress has really been the proprietary nutrient brands. I mean, whether it's House & Garden, which honestly over the last three years has been our most consistent business, whether it's Heavy 16, which had had a tough year last year but has come back gangbusters or finally Grotek, which was a business that we bought out of Canada. It's always been distributed by us in both Canada and the US has a great presence in Europe as well. Grotek has always done well in the Asian community and we've really been able to tap back into that market this year and we've had kind of two quarters in a row of just outstanding growth on that brand as well. But the

	7
1-877-FACTSET www.callstreet.com	Copyright © 2001-2023 FactSet CallStreet, LLC

Hydrofarm Holdings Group, Inc. (HYFM)	Corrected Transcript
Q3 2023 Earnings Call	09-Nov-2023

proprietary nutrients are really kind of the core of where we're making our money, if you will, maybe we're not making a ton of money yet, but it really is driving the higher adjusted gross profit results that we're seeing and it's been an important part of kind of how this year has held together for us on a slightly above positive adjusted EBITDA and also creating free cash flow. So good progress on the nutrients. They're really the centerpiece of our entire proprietary branded offering.

......................................................................................................................................................................................................................................................

Jesse Redmond

Analyst, Water Tower Research LLC

Q

Do you see any trends in terms of I could see there's a couple of ways, when I'm talking to operators, there's people that are interested in growing great flower and want to spend more money to get higher THC numbers and more terpenes and maybe more in the premium part of the markets and looking to spend more on that side to create better products. But also we recognize there's a lot of margin pressure and one thing I've been hearing in some of the MSO calls is people are -- consumers are shifting down and going more towards value lines, which makes me think that providing affordable solutions may be of more interest - curious where you're seeing the push and pull on that side, if you're seeing people that are looking for more value conscious solutions or if you're also seeing people that are looking for whatever it's going to push the plant to its maximum potential.

......................................................................................................................................................................................................................................................

William D. Toler

Chairman & Chief Executive Officer, Hydrofarm Holdings Group, Inc.

A

Yeah, I think you're right. There's a wide spectrum of demand curve out there right and the margin pressure in the overall kind of glut of product over the last couple of years has caused pricing to drop way down. And so people then the corresponding reaction to that is they want to get cheaper inputs and cheaper cost of goods from -- for growing. And so we've seen some of that and so we've launched as -- we've launched a House & Garden Dry product, which is a real value orientation instead of having the liquids which cause you shift the water and you shift the dilution factor, there. So the dry product really gives people a value-oriented where you still have the high-quality House & Garden brand name on it. That's one of the things we're doing. And we also offer a range of products both in our proprietary line and in our distributors' line, whether it's the garden green products, whether it's a MOAB, the mother of all Bloom products or all those that really are part of our portfolio that enable us to give people value, enable us to give people quality and it does allow for the folks to give that wide range of the things you outlined, which is some Ultimax terpenes, some Ultimax THC, some - just want a consistent product or what they've had before and others play in that price market as well. We began doing some work on sourcing kind of all the way back to the core raw materials to work with our growers on, so that we're able to work with them and it gives them the access to the product they perhaps even want to mix their own. So, we're really adjusting our approach to the market to reflect what each of our growers need and there's a wide range from out there, as you suggested Jesse.

......................................................................................................................................................................................................................................................

Jesse Redmond

Analyst, Water Tower Research LLC

Great. Thank you, guys. That's really helpful.

Q

......................................................................................................................................................................................................................................................

William D. Toler

Chairman & Chief Executive Officer, Hydrofarm Holdings Group, Inc.

Appreciate it. Appreciate the question.

A

......................................................................................................................................................................................................................................................
Operator: There are no further questions at this time. I would now like to turn the floor back over to Bill Toler for
closing comments.
......................................................................................................................................................................................................................................................
	8
1-877-FACTSET www.callstreet.com	Copyright © 2001-2023 FactSet CallStreet, LLC

Hydrofarm Holdings Group, Inc. (HYFM)	Corrected Transcript
Q3 2023 Earnings Call	09-Nov-2023

William D. Toler

Chairman & Chief Executive Officer, Hydrofarm Holdings Group, Inc.

Great. Thank you all for your interest in Hydrofarm. We appreciate you being on the call and look forward to updating you soon on other activity in the business. Thank you.

......................................................................................................................................................................................................................................................

Operator: This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

Disclaimer

The information herein is based on sources we believe to be reliable but is not guaranteed by us and does not purport to be a complete or error-free statement or summary of the available data. As such, we do not warrant, endorse or guarantee the completeness, accuracy, integrity, or timeliness of the information. You must evaluate, and bear all risks associated with, the use of any information provided hereunder, including any reliance on the accuracy, completeness, safety or usefulness of such information. This information is not intended to be used as the primary basis of investment decisions. It should not be construed as advice designed to meet the particular investment needs of any investor. This report is published solely for information purposes, and is not to be construed as financial or other advice or as an offer to sell or the solicitation of an offer to buy any security i n any state where such an offer or solicitation would be illegal. Any information expressed herein on this date is subject to change without notice. Any opinions or assertions contained in this information do not represent the opinions or beliefs of FactSet CallStreet, LLC. FactSet CallStreet, LLC, or one or more of its employees, including the writer of this report, may have a position in any of the securities discussed herein.

THE INFORMATION PROVIDED TO YOU HEREUNDER IS PROVIDED "AS IS," AND TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, FactSet CallStreet, LLC AND ITS LICENSORS, BUSINESS ASSOCIATES AND SUPPLIERS DISCLAIM ALL WARRANTIES WITH RESPECT TO THE SAME, EXPRESS, IMPLIED AND STATUTORY, INCLUDING WITHOUT LIMITATION ANY IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, ACCURACY, COMPLETENESS, AND NON-INFRINGEMENT. TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, NEITHER FACTSET CALLSTREET, LLC NOR ITS OFFICERS, MEMBERS, DIRECTORS, PARTNERS, AFFILIATES, BUSINESS ASSOCIATES, LICENSO RS OR SUPPLIERS WILL BE LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL OR PUNITIVE DAMAGES, INCLUDING WITHOUT LIMITATION DAMAGES FOR LOST PROFITS OR RE VENUES, GOODWILL, WORK STOPPAGE, SECURITY BREACHES, VIRUSES, COMPUTER FAILURE OR MALFUNCTION, USE, DATA OR OTHER INTANGIBLE LOSSES OR COMMERCIAL DAMAGES, EVEN IF ANY OF SUCH PARTIES IS ADVISED OF THE POSSIBILITY OF SUCH LOSSES, ARISING UNDER OR IN CONNECTION WITH THE INFORMATION PROVIDED HEREIN OR ANY OTHER SUBJECT M ATTER HEREOF.

The contents and appearance of this report are Copyrighted FactSet CallStreet, LLC 2023 CallStreet and FactSet CallStreet, LLC are trademarks and service marks of FactSet CallStreet, LLC. All other trademarks mentioned are trademarks of their respective companies. All rights reserved.

	9
1-877-FACTSET www.callstreet.com	Copyright © 2001-2023 FactSet CallStreet, LLC