Ladies and gentlemen, thank you for standing by, and welcome to the Q3 2020 Spectrum Brands Holdings Inc. Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions] I would now like to turn the conference over to your speaker today Kevin Kim, DVP of Investor Relations. Thank you. Please go ahead.

Great. Thank you, Angie. Welcome to Spectrum Brands Holdings Q3 2020 earnings conference call and webcast. I'm Kevin Kim, DVP of Investor Relations and moderator for today's call. To help you follow our comments, we have placed a slide presentation on the Event Calendar page in the IR section of our website at www.spectrumbrands.com. This document will remain there following our call. Starting with Slide 2 of the presentation. Our call will be led by David Maura, Chairman and Chief Executive Officer; Jeremy Smeltser, Chief Financial Officer; and Randy Lewis Chief Operating Officer. After their opening remarks, we will conduct the Q&A. Turning to Slides 3 and 4. Our comments today include forward-looking statements, which are based upon management's current expectations, projection and assumptions and are by nature uncertain. Actual results may differ materially. Due to that risk, Spectrum Brands encourages you to review the risk factors and cautionary statements outlined in our press release dated today July 31, 2020 and our most recent SEC filings and Spectrum Brands Holdings most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. We assume no obligation to update any forward-looking statement. Also, please note, we will discuss certain non-GAAP financial measures in this call. Reconciliations on a GAAP basis for these measures are included in today's press release and 8-K filings, which are both available on our website in the Investor Relations section. I will now turn the call over to David.

Hey. Thank you, Kevin. Good morning, everybody. Thanks for joining us today for our third quarter call. Before we turn our attention to the company's third quarter results, I want to say again thank you to all of our employees. We've got a 11,000 plus employees around the world. And to all of our frontline workers in our factories and distribution centers. I'd like to say thank you. You guys are the true heroes of our company. Your sacrifices relevant Spectrum Brands do embrace our new identity as a true home essentials company. Because of you we're innovating marketing and we're bringing joy and happiness to our consumers worldwide. Whether it's in the kitchen, the yard, around the house, or with your pets; we are delighted to make life better and more enjoyable for our consumers of our product and services throughout the planet. Turning to Slide 6. Our results this quarter reflected strong demand that accelerated throughout the course of the quarter. Simply put, we have embraced our position as a home essentials business and instead of pulling back in the face of the COVID-19 challenges, we are continuing our drive to add talent, create new innovative products and improve our operating model. In addition, just in the last 60 days and ramping up in the current quarter, we have committed to significant increases in our advertising investments to meaningfully accelerate the long-term organic growth of our company. The actions of our Spectrum brands family reflect resilience and operational excellence in this ever evolving environment. This includes adopting safety protocols in response to COVID-19, navigating temporary government mandated factory closes that has impacted our hardware home improvement businesses and balancing strong underlying demand including large mix shifts. The temporary COVID-19 related supply disruptions from our HII division negatively impacted…

Thanks, David. Good morning, everyone. Turning to Slide 12 and a review of Q3 results from continuing operations. Beginning with net sales. Net sale decreased 3.7% excluding the impact of a $11 million of unfavorable foreign exchange and acquisition sales of about $3 million. Organic net sales decreased 2.9% with growth in Global Pet Care, Home & Personal Care and Home & Garden offset by a decline in Hardware & Home Improvement due to the supply challenges. Gross profit decreased $12 million in gross margin of 35.4% increased 10 basis points despite supply restrictions due to favorable product mix and improved productivity. SG&A expense of $225 million decreased 3.4% at 22.8% of net sales consistent with last year driven by lower operating expenses and restructuring costs. Operating income growth of 1.9% was driven by lower restructuring activity partially offset by the supply disruptions in Hardware & Home Improvement. Net income and diluted earnings per share were driven by gains on the company's Energizer common stock holding, gain from the extinguishment of stainless-steel low debt and lower shares outstanding. Adjusted diluted EPS increased 0.7% as favorable product mix, improved productivity and lower shares outstanding were partially offset by supply disruptions from HHI. Adjusted EBITDA decreased 4.9% and adjusted EBITDA margin decreased 20 basis points. The deploy in HHI was partially offset by growth from Global Pet Care, Home & Personal Care and Home & Garden. In total, we estimated the overall impact of COVID-19 to our ability to supply product in the quarter, reduce net sales and adjusted EBITDA by over $100 million and $30 million respectively. Turning now to Slide 13. Q3 interest expense from continuing operations at $36 million increased $2.2 million driven by higher debt from the revolver borrowings. Cash taxes during the quarter of $3.9 million or…

Thanks Jeremy, and good morning. Thank you all for joining us today. My comments will focus on our operational performance in Q3 progress on our global productivity improvement plan and a review of each business unit to provide you more detail on underlying performance drivers. In Q3, we continue to face COVID-19 related challenges namely supply disruptions that threatened our ability to with the increased demand from our customers for our home essential products. I will detail this by business unit in a minute but first the safety of our teams has been our paramount concern for this quarter as we responded to the COVID-19 impacts on our supply chains globally. Then the challenges were varied throughout the different regions of the world, we have greatly benefitted from a global governance approach of our COVID-19 response team that ensured solid implementation and options strict safety standards and protect our people and minimize chance of COVID-19 spread within our facilities while ensuring that we abide by all government mandates. We saw similar challenges to what we faced in Q2, however the operating environment improved the cost each of the business units throughout the quarter. Production rates have improved sequentially over the past few months and today, all of our manufacturing distribution facilities worldwide are open and operating at or above the output levels from before the pandemic. And we are working deligently to replenish inventory since 80 stocks. Which is really critical because we have a very strong order book in each of our businesses. Let's dive into the key three supply chain performance of each business unit and kind of and cover the expectations moving forward. And HHI recalled a starting at the end of March government shutdowns and reduce capacity mandates related to COVID-19 impacted two of our plants…

Hey thanks, Randy, Jeremy and everybody for joining us today. Given that we covered quite a bit on today's call, I'd like to just conclude with a few takeaways on Slide 24, I think it is. First, we believe our results for the quarter and the year reflect resilient and operational excellence. Second, the future of Spectrum Brands is bright with a strong demand outlook and plans to further strengthen our balance sheet and net leverage position as we invest to drive growth. Third, demand for our products accelerated across each business unit during the third quarter as we grew organic sales across most business units, the demand remain strong so far in the fourth quarter. Fourth, while our supply chain was challenged in Q3, we expect output and fulfilment rates to materially improve in the company's fourth quarter. We believe we are well positioned financially and operationally to weather the storm. And we will be continue to be laser focused on our employees, our consumers and our shareholders over the long-term. We want to thank you for your time, your continued support and we wish you health and wellness as we go forward. I'll turn the call back to Kevin. I really appreciate it when joining us today.

Thank you, David. Angie, let's dive right into Q&A, please.

Absolutely. [Operator Instructions] Your first question comes from the line of Nik Modi with RBC Capital Markets.

Yes. good morning, everyone. And today a couple of questions. first is just David just thinking about category growth rates and I know obviously you're not giving guidance but how are you just thinking about philosophically, What were category growth rates obviously prior to the whole situation. And how do you think that's going to roll going forward just it's pretty clear and I think that it's pretty surprising how well the business has fell backwards, take credits at much more defensive portfolio. And a lot of consumer products companies has that in the staple space, are probably going to see elevated levels of consumption as we move forward, even past the pandemic, well. I'm just trying to get your perspective around that particular dynamic. And then just a second just quick question is the HHI side, did you lose share if I know the leading competitor also had issues with productions. I just wanted to understand kind of what happened from a competitive standpoint around the added stocks.

Well, let's take in a rush order. Thanks for your question, Nik. It's good to hear from you, you sound well. So, that's good. Look, on HHI, I think quite frankly on price Pfister, our plumbing section, I think we're holding around and in fact we've got some new business coming online here and so I would expect this to be able to grow here. We definitely grew share on our hardware segment and we believe we are continue to win there. On security, which is our biggest unit, no question, with supply disruptions and basically just the inability to get new products, your vertical integration because of mandatory closures in certain countries. We did suffer on an absolute basis but I would tell you I believe we're holding our own. And hopefully when we talk in 90 days, we'll be able to talk about taking share. We're really through the global productivity improvement programs. Again let me back out. I just the employees of this company are really rising to the challenge, Nik. I mean, what's going on here is we're turning the culture and people are really embracing the fact that we're not just making goods and services in and around the home and for patch and clean up your yard. But yes, but most people out there are going through a tough time and we all are. And some of these global calls that are been now with our team has really asked everyone to embrace the stock that we're not just providing good new services, we're helping make people's lives better, up and enjoy their pets, get the yards clean of weeds and bugs, secure their premises with the lock. So, I just feel an energy in the company right now. We're working for a bigger…

Great. Thanks, I'll pass it on.

Right, Nik.

Your next question comes from the line of Faiza Alwy with Deutsche Bank.

Yes, hi good morning everyone.

Good morning, Faiza.

And so yes, my first question is around then economic environment. And I think the only business where I'm wondering how cyclical that business might be and how dependent might be on the macro environment as the HHI business. So, David I'd love your perspective in terms of how your thinking about that business to the extent there is economic uncertainty?

Well, I think with 33% GDP declines, we've got plenty of uncertain economic activity and we expect HHI to grow in this current quarter. 75% of that business is replacement in your reparable model type business. And we have the largest install base in the United States of America. We continue to be the market share leader. And yes, I mean, I'd look -- again I would ask you all to back up, go back six to nine months, this is a company that entered this fiscal year with a challenge to offset $70 million of tariffs. That was the baseline. And you saw the growth we did in the second quarter, I think we grew sales 4%. Last quarter we grew EBIT over 20% in the second quarter, that was the March quarter. And then, our both for lack of a better not a forethought into the COVID-19 storm. And I think again they're often not -- all credit to the team. It's been all hands on deck, everyone's paddling real hard. But I think we're navigating the economic uncertainty in the COVID-19 environment very well. And again, that's why my opening remarks are kind of I really want to call your attention to all our frontline workers and our factories and distribution centers around the globe. They're just doing a remarkable job. So I, again I think you should take some solace in my comment that I expect HHI to grow in Q4 and that's because we restored our supply chain. Demand remains excellent.

I think David too, I'd also add. There are some different things happening as it relates to housing trends and just the economic number that you're seeing, right. There is very low inventory around the country. Home deliver [indiscernible]. A lot of people are trying to flee, multi-family units to get to their own homes. And right now that's looking like good health and start indicators which is good for the 25% of our HHI business that's exposed to that new home starts.

Okay, that's really helpful. Just I guess my second question is you only have two months left in the year. And it seems like you have a lot of catchup to do in terms of inventory and open orders and HHI. So, I'm curious about your thought process with regard to there you're not providing specific guidance for. Those last remaining quarter, even if it's a wide range. So, I guess where do you see the most level of uncertainty just over the next couple of months?

Yes, I think it's a fair question. I think the way I haven’t think about it though is obviously in many states here in the U.S. and also in some of the country's we operate in that there are still a lot of new cases rising and there's a potential for additional shutdowns. And so, while that's not impacting POS for us at this point because they remain strong, the reality is our ability to fill those orders could be temporarily impacted still if further closures were to hit us. And so, we just want to be cautious as it relates providing that financial guidance but obviously we're giving you the trend through July.

Okay, thank you.

Thank you.

Your next question comes from the line of Bob Labick with CJS Securities.

Good morning, congratulations on strong operating performance.

Thanks, Bob.

Thanks, Bob.

I'm in particular I think the margin expansion was really impressive. You talked a little bit about it and particularly in Pet and HPC. So, maybe you could talk a little more about the drivers for margin expansion. And if those levels sometimes in record levels are sustainable or where they should kind of settle out, how we should think about margins in those categories going forward.

So Bob, this is Randy. I'll let Jeremy jump in with some more specifics that with regards to Pet, we I think we've been talking to you guys for about four quarters now about kind of where they were in the turnaround cycle that business and starting to get seen from the initiatives we put in place a couple of years ago as we started globalizing that business. So, we've done a lot of world to simplify and focus on the core. We've done a lot of work with streamlining supply chains, exiting and closing excess capacity. Lots of work there that while I'm not saying the record level is definitely going to continue at that rate. This is not something was not expected for us. We continue to see one way ahead of us in that business. And that’s a business that but all of them are benefiting very well from our initiatives in our Pet program. HPC's a very similar situation. There was a couple million dollars this quarter related to a tariff catch up that there's a onetime benefit that's slowing through. But for the most part again, we're about 18 months into a new management team with a new global strategy, new operating model. And that's about that amount of time it takes to create new products and make meaningful supply chain changes. So, we're excited about what's going to continue to happen on that margin expansion in both of those specifics.

Yes, I think Bob, I just add over time, I mean, we do think there's margin opportunity that the GPIP program thus far a lot of the saving have gone to offset the $70 million or so in tariffs this year and $50 million or so last year that David had talked about. But we see opportunity as we move forward. And we're also as David mentioned, investing a 100 basis points worth of margin or 50 basis point worth of margin incremental in A&P which we expect to drive organic growth in the future which again should fall the bottom line nicely.

Got it, that's great. And that kind segregates right into my next question which really is. And maybe talk about a little increments maybe more is it based on advertising. But the question was how are you positioning the businesses to drive the incremental sales and continue to gain share and make this more recurring particularly for HPC beyond the initial kind of stay at home pop that you get, that you may have got. So, like what's the opportunity set in front of you and how do you view this incremental advertising to continue to drive recurring purchases.

It's Dave. At the end of the day, right, we just -- we have tremendous products and we -- our innovation pipeline is strong. We've got a lot of new products coming out. The history of the Company was pretty much an M&A strategy driven by me up until recently we pivoted to organic growth and really investing behind the business. And so right now we think we have a phenomenal opportunity. We just launched Cutter hand sanitizer. We never had hand sanitizer before. Obviously we're trying to do the best we can to help our employees, frontline workers, people in our hospitals around the country, but also our customers now with our e-commerce offering. And so why not take that opportunity to really advertise the product. Let people know that the Cutter -- the unaided Cutter brand awareness, we want to spike it. We want people to understand that not only we do hand sanitizer, but Cutter's efficacy in terms of protecting you from mosquitoes and other things is fantastic. And so we really want to build share. And we're doing the same thing with the Spectracide, YOU HOLD THE POWER campaigns that you see, Kwikset, we've got SmartKey technology that lets you change your key 30 seconds or loss. We just get to tell the story better. And so we got Microban now. So, geez, it's COVID-19 we're all sitting here, I mean I'm sitting here in a room with the guys and I've got my Cutter hand sanitizer. We keep spraying our hands, like, what, it's going out of style. Well, wouldn't you feel better if you had Microban on every door knob of your house. It kills 99.9% of germs. Isn't that a great segue to market that, convey that story and convert people to the halo effect of Kwikset which oh, yes, by the way, we just launched this biometric lock called Halo and we're really front and center with the whole digital lock campaign. So I just think Spectrum has a phenomenal opportunity to actually convey the message to take share and make it more permanent. God willing, we can get out of this COVID-19 mess as soon as possible. But I agree with your point. I think we can tell our story, take share, have a bigger portion of the shelf and continue to follow that with innovative products that become recurring revenue streams.

Great. Congratulations on the quarter. It's really nice to see all the hard work playing out in the operational performance.

Your next question comes from the line of Ian Zaffino with Oppenheimer.

Hi. Thank you very much. Guys, good to see how well the e-commerce business is growing. Can you maybe give us a little bit more color there? Maybe, like what divisions are doing best there? How is their share doing online? And then maybe, like what channels of online is it more specialty versus general e-commerce? Any kind of color you could give there would be great. Thanks.

I'm going to let Randy address it. In terms of breaking it out by segment, there's certain competitive data. We're not going to want to peel the onion so deep. But I'll let Randy take a swag at kind of giving you some broad strokes there. But you're not wrong. We are seeing tremendous growth in e-com and we're seeing acceleration. Randy, you want to take a stab?

Yes. So what I can tell you is that in the quarter the business units had performed the strongest in year-on-year growth and the conversion there was our appliance business and our Home & Garden business. And that move in the appliance business is quite encouraging to us because a year and a half ago that was an area where we felt like we were really losing ground. And so we've put a very specific focus with a brand new team over the last 12 months and that's really starting to pay dividends. And it's part of our comm ops organization. So we've centralized our e-commerce operations across all four businesses to ensure that we're applying best practices there. So those two businesses have done the best. Pet, again, very strong. HHI, a little slow this particular quarter just mainly because of supply constraints. And then the other thing I would tell you is -- that might be helpful is that North America grew at a little faster pace than Europe although Europe was still very strong.

Okay. Thank you very much.

Your next question comes from the line of Olivia Tong with Bank of America.

Hi. Thanks. Good morning. Hope everyone is well.

Hi, Olivia.

How are you?

We're doing well. Glad you are as well.

Great. Thanks. First question for me is just if you could unpack the lost COVID-related sales and profit, the $100 million sales and $30 million profit, a little bit, because obviously those are pretty big numbers and the margin implication is quite high. So how much of that do you think you can get back, particularly like you think about HHI it sounds like you feel pretty good about the next couple of quarters. But then Home & Garden, obviously, there's some supply chain issue there. Are those sales now like lost because of seasonal category or is there actually some catch-up that you could potentially do in that category as well?

So good morning, Olivia. It's Randy. I would say it's a mixed bag depending upon the different businesses. And so in Home & Garden, obviously the seasonality, we're running toward the tail end of the season. But we continue to see strong demand there. We are running all out in the supply chain and we're headed into the month of August. That's a very, very unusual thing for us. So inventories are relatively low. I'm sure we've missed some consumer takeaway over the course of the season. But the main thing for us is ensuring that we are doing the right things for the health of the business. And so we feel good about the fact that we're setting up that business to be very strong for next year. So line reviews are going well. Relationships with retailers are going well. Our investment is growing our top brands. And so we will likely see some consumer takeaway that can't be recovered. In HHI which was the biggest chunk of the impact in the quarter, we had a growth on our backlog of almost $40 million over the course of the quarter. So that's just the delta between the orders in queue at the beginning of the quarter and orders in queue at the end of the quarter. So those can clearly be picked up. We also think that as the supply chain continues to replenish supply there is a fair amount of retailer inventory that will continue to catch up. But I want to caution you that as we said in the prepared remarks, we probably won't be fully caught up on that business until we get into the early part of Q1.

Got it. That's helpful. And then two related questions. First you guys talked about how you had sold off some of your Energizer shares. If you could just talk about kind of your future plans for what's remaining of that slug? And then strong quarter, good outlook, good indication in terms of some of the bits that you gave us. But it sounds like on share repurchase, it's still kind of taking a backseat on that. So obviously you guys were fairly aggressive pre-pandemic. So can you talk about what you need to see to get comfortable to reinstate the buyback? Is it wait until you get to the midpoint of your leverage range at the end of the year, below that? Just if you could talk through that, it would be great. Thank you.

Yes, I mean on the Energizer stake, it's just opportunistic. Obviously, March and April were periods of significant financial stress in the markets and in conjunction with kind of getting a new cash flow revolver and terming out some debt, it's leverage neutral, but it's nice to have a lot of runway. I think that was just a good liability management. And so as we look forward, quite frankly, listen, I -- we were aggressive on the repurchases early in the year. This was the year we were going to really deliver quite well in my opinion from the start of the year and we didn't have COVID-19 in the plan. And so obviously we backed off of repurchasing shares to kind of maximize liquidity and protect the balance sheet. I think that if you look at our peer group, our stock remains significantly undervalued. We would like to return to repurchasing. I personally would like to see EBITDA start to grow here and the leverage ratio tipped down. But we believe relative to our comp set, we are very attractive from a valuation standpoint, both on a total enterprise value to EBITDA basis and on a free cash flow yield basis. I think people if they do the math will figure out we are double digit free cash flow yield company with an improving outlook.

Thanks guys. Be well.

Thank you, Olivia. You as well.

Your next question comes from the line of Jim Chartier with Monness, Crespi, Hardt.

Hi. Thanks for taking my question.

Sure. Good morning.

Good morning. You guys have been increasing your marketing spend for a couple of years now and then another $20 million step up here. I guess how does your marketing spend following the step-up compared to your peers? How much more opportunity do you see to increase the marketing investment going forward?

Yes. So, Jim, this is Randy. I would tell you our marketing spend has been relatively flat and relatively low compared to peer sets for up until this year. And so we had planned on incremental spending this year and David's $20 million incremental is beyond that. That's a number that exceeds just the balance of this fiscal year. But without getting into actual data, we still have a ways to go. We believe we're still well on the positive side of the ROI curve there. And we'll be looking to continue those investments. We've been very consistent that we feel like the key to strategic growth, organic growth is insights, innovation against those insights, advertising against those innovations. And so that's the recipe across the totality of the enterprise and we're just now kind of getting started.

And just to give a little bit of specifics, Jim, so historically the last couple of years, we've been kind of just under 1% of sales. The incremental $20 million that David talked about, we will spend around half of that this fiscal year and around half of it in the first half of next fiscal year. But we do expect this year's spend to get over the 1% of sales mark. And I would say the categories kind of vary as you look at peer group sets and some of the data is difficult to get. But there is probably still some runway for increased spending as we go forward and show success and return on that investment.

Great. And then, Randy, how impactful were kind of COVID related incremental costs in your manufacturing or other facilities? And then are you now kind of finding ways to reduce those maybe going forward or maybe pass them on to customers with some pricing? Thanks.

Great question, Jim. We're not at the point where I think those costs passing on are part of our discussions with our customers. But they've been relatively controlled. HHI has had a fair amount because of just the extent to which we had shutdowns. But for the most part we've been able to find offsetting efficiencies and productivity. So those are not going to be material pieces to us going forward in the next year.

I think that's right. I'd also add, like a lot of companies, our travel -- our T&E costs are down quite a bit in the face of COVID-19. That's another thing to think about as you think about a more normalized environment, potentially and hopefully for next fiscal year.

Our final question comes from the line of William Reuter with Bank of America.

The last couple of calls, it sounds like M&A has not been particularly active. Are you going to be investing more in advertising because it sounds like that's where you see the most opportunity right now. Are you seeing M&A opportunities right now and given the pretty strong demand for all your products, are you guys looking to be active there?

Yes, I mean the Company definitely took a break from M&A for a while. We want to get our organic growth rate up. Global Productivity Improvement was a very large enterprise wide program and that's still ongoing. So the work that's been done here over the last 18, 24 months is really getting our house in order, really supporting our hero brands, our largest categories and really trying to take share. So we're still -- that's the number one priority, is organic growth rate and sustainable free cash flow going forward. But we did do a tuck-in acquisition in our aquatics business. And so we're open for business there. Never say never to anything large. But I think generally speaking, March, April even into May the M&A markets were pretty frozen. We definitely see them loosening up here. But -- again, our focus is driving shareholder value. We want to get the leverage back down. We want to get EBITDA growing again and we think we're on that trajectory right now. So stay tuned.

All right. And then just as a follow-up, it's always hard to gauge the size of some of the new products, but it sounds, given the amount of time, you guys have spent talking about on this call, like it may be a greater revenue opportunity than maybe you've had in several years. I guess, one is that the case that the new innovation is a greater opportunity? And then two, do you feel like this $20 million of advertising that you're going to be spending, will that be paid for immediately in terms of sales or do you think that this is more brand building and will be paid for over time?

I think -- I look at advertising as typically like you've got to be involved in it for a three-year kind of payback, which is not a long period of time, if you think about it. But if you just -- if we just take a simple example, we started turning the ad dollars on just months ago on the George Foreman Smokeless Grill. And that business had been kind of flat into a decline for a decade. And we're just seeing POS through the roof, not just because of COVID, we're taking a lot of markets share. Our dollar market share in grills is up double digit. And so we do believe we're seeing a very quick return on our ad dollars. But we are prepared to build that into the model going forward. And what we've done is, we're using the savings generated by our Global Productivity Improvement Plan to pay that bill so that we can actually drop the incremental revenue and the contribution margin back to our shareholders. And we're in that inflection point, Q2, Q3, we would have preferred not been interrupted by COVID-19 on supply chain side. But we are seeing very fast payback. And yes, I think you're right, I think we have tremendous opportunity to grow Kwikset, Pfister, Spectracide, Cutter, all of our big brands have tremendous growth potential. And we see that -- we see that even now with DreamBone, SmartBone. There's a lot of growth under the surface. And we want to demonstrate that to our --to the investment community over the next quarters and years.

Great. That's all from me. Thank you.

I would now like to turn the conference over to David Maura for any additional or closing remarks.

Listen, again just thanks everybody for joining us. We believe we're on the right trajectory. I really thank all of our employees around the globe for paddling hard. And since we've reached the top of the hour, we will conclude the conference call. Just want to say thanks for your interest in Spectrum Brands and we look forward to talking to you again in the next 90 days. Stay well everybody, stay safe and we will talk to you soon. Thanks.

Thank you for participating in today’s conference call. You may now disconnect your lines at this time.