Oil-Dri (ODC) 2026财年第四季度业绩说明会：销售额与现金创历史新高

核心要点

• 美国Oil-Dri公司公布2026财年全年销售额和净利润均创历史新高，同时第四季度营收亦创下历史新高。
• 第四季度企事业（B2B）销售额增长4%，达到创纪录的5000万美元；零售与批发销售额增长3%，达到7900万美元。
• 尽管国内每吨已售商品成本增长3%，毛利率仍维持在27.8%。第四季度营业利润同比增长17%。
• 现金及现金等价物达到创纪录的7400万美元，较5100万美元增长45%。本财年经营活动现金流为8000万美元，EBITDA为9300万美元。
• 受轻质猫砂需求及长期客户协议的支撑，代工包装猫砂销售额全年增长47%，第四季度增长60%。
• Oil-Dri将其在两项融资本项下的总借款额度从2亿美元扩大至3.75亿美元，提高了其进行内生性投资和收购的灵活性。

关键财务数据

业务与经营表现

产品结构的改善是第四季度营收增长的主要推动力。Oil-Dri提到动物健康、农业产品以及代工包装猫砂表现强劲。

代工包装猫砂是主要的增长贡献项，2026财年销售额增长47%，第四季度增长60%。管理层表示，公司利用了供应链多个环节的现有产能，同时针对客户需要定制化产品或存在瓶颈的环节进行了针对性的资本投资。公司认为该业务不会对其自有品牌或自有贴牌猫砂业务构成实质性的同质化挤压。

自有品牌猫砂面临着更高的上架费、客户投资需求、高企的促销支出以及零售行业整合的挑战。管理层表示，按销量计算，Oil-Dri仍是全美第四大猫砂品牌，同时电商渗透率持续上升。

在经历了此前因失去一个重要巴西客户及全球关税状况带来的压力后，Amlan第四季度表现优异。增长受到亚洲市场、巴西新增客户与销量、分销商区域扩张以及北美新产品的支撑。管理层还看到了巴西限制某些抗生素带来的机遇，以及拓展该国肉牛育肥场市场带来的商机。

农业产品在2026财年的每个季度均实现了销售额同比增长。管理层将这一表现归因于与主要生产商的合作、强劲的播种活动，以及用于除草剂、杀虫剂和生物农产品的粘土载体需求。

液体净化业务销售额全年下降5%，但在第四季度创下最强单季表现。管理层将全年下滑归因于2025财年对比基数较高以及客户需求波动，而非客户流失。

管理层展望

在亚洲、巴西和北美业务扩张的支撑下，管理层预计Amlan将实现稳健的同比增长。不过管理层警告称，第四季度不同寻常的高增速难以持续。

如果项目能够提供适当的长期回报，Oil-Dri可能会将内生性投资提高至近期水平之上。管理层表示，正鼓励运营团队考量更大规模的再投资机会。

公司还计划评估符合其专注于从吸附性矿物中创造价值理念的收购项目。管理层强调纪律严明的估值和杠杆管理，而非设定具体的收购规模或杠杆目标。

风险与关注事项

• 货运和运输成本有所增加，反映出与地缘政治因素相关的柴油价格压力以及卡车运输运力下降。
• 较高的物流成本对零售与批发产品造成了尤为明显的拖累，尽管销售额有所增长，但该部门的营业利润仍下降了5%。
• 折旧与摊销费用在第四季度增长6%，随着近期投资的项目陆续投产，预计将继续对报告的毛利率构成压力。
• 自有品牌猫砂面临上架费用高企、促销强度大、零售行业整合以及来自大型品牌和新进入者竞争的压力。
• 液体净化需求可能保持波动，因为客户的要求因油脂类型和原材料质量而异。
• Amlan第四季度的业绩包含了反弹效应，因此该季度的增长率不适合作为近期的基准运行率假设。

分析师问答亮点

在流动性与资本分配方面，Oil-Dri表示已将其循环信用额度扩大33%至1亿美元，并将相关的弹性增额条款扩大150%至1.25亿美元。公司还将固定利率货架式发行额度翻倍至1.5亿美元。两项融资本项下的合并借款额度从2亿美元增至3.75亿美元。

管理层重申了其资本分配优先级：投资于生产制造、业务能力、人才和研发；支持股息发放；寻求战略性收购；并在能够创造长期价值时考虑择机回购股份。

关于代工包装猫砂的集中度及利润率，因合同义务限制，管理层拒绝透露特定客户的具体细节。管理层强调，长期协议支撑了所需资本投资的经济可行性，且分析工具显示该业务与其其他猫砂业务几乎没有直接重叠。

业绩电话会议完整文字记录

完整财报电话会议逐字稿

管理层陈述

Operator

Thank you. Good day and thank you for standing by. Welcome to the Oil-Dri Corporation of America Fourth Quarter Fiscal Year 2026 Earnings Discussion. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to turn the conference over to your speaker today, Daniel Jaffee, Chairman, President, and CEO. Please go ahead.

Daniel Jaffee

Thank you and welcome everybody to the fourth quarter and Fiscal Year-end 2026 teleconference. Before we get started, Leslie, will you walk us through the safe harbor and also let everyone know who's on the call so they can ask questions.

Leslie Garber

Yes, sure. Thank you, Dan. Welcome, everyone. Today on the call we have Susan Kreh, Chief Financial Officer and Chief Information Officer, Aaron Christiansen, our VP of Operations, Christopher Lamson, Group Vice President of Business to Business and Strategic Growth Initiatives, W. Wade Robey, VP of Agriculture and President of Amlan International. Laura Scheland, Vice President and General Manager of Consumer Products Division. Jonathan Blake, VP Corporate Controller. Anthony Parker, VP General Counsel and Secretary. Unfortunately not in attendance today is Bruce Pacey, Vice President of Fluid Purification, but Dan Jaffee, our CEO, will be able to answer those questions. Right now I'll read the safe harbor. On today's call, comments may contain forward-looking statements regarding the company's performance in future periods. Actual results in those periods may materially differ. In our press release and in our SEC filings, we highlight a number of important risk factors, trends, and uncertainties that may affect our future performance. We ask that you review and consider those factors in evaluating the company's comments and in evaluating any investment in Oil-Dri stock. Thank you again for joining us. Dan, I'll turn it back over to you.

Daniel Jaffee

Great, thank you, Leslie. And before I turn it over to Susan, I'd like to make some general comments. You know, my grandpa Nick used to always say, "Don't debate, demonstrate." And I was wondering, how did he get this industry started? And my sister Karen's been digging through our archives. And if you don't follow me on LinkedIn, I hope you'll go look at it, because we found some ads that he ran on the front page of newspapers that communicated the benefits of using Oil-Dri versus sawdust, which was very flammable, very strong, compelling advantage. So it was interesting that started that. And then Bud Selig, who's been on our board since 1969, his father, Ben, used to always say, "Nothing is good or bad except by comparison."

If you look at our year, many of the indices are extremely positive, but you could, if you wanted to, you could look at some of the comparison numbers and say, "Okay, well, that was sort of flat or that was slightly down." But any kind of perspective of three, four, five years and you see how great this team is performing and how well we're doing. And then finally, my dad always said, "Earnings are an an opinion, cash is a fact." And Susan will highlight this, but our cash generation has been fantastic. And that's really what fuels the growth and the health of the business. And so we've never been more happy or positive with how the company is doing. And I would say the final thing is, you know, we did give some forward guidance back in the first quarter and second quarter. We said the first part of FY '26 was going to be a tough comparison, but that we fully expected to equal or more than make up the distance in the back half. And you see the really great fourth quarter we had, which allowed us to do just that, pull ahead in many key indices, sales, net income, things like that, EBITDA, all were up for the fiscal year. So very proud of what the team has delivered and thank you for your questions. We'll spend most of the time answering them. But before we do, I'd love to turn it over to Susan so she can walk you through.

Susan Kreh

the results. Thank you Dan, and cash is a fact, and I will get into that in a minute. So, it's a pleasure to be here with all of you this morning, especially coming off the headline we released that states, "Oil-Dri delivers record annual financial results, including all-time high fourth quarter sales and historic cash generation." Leslie Garber did a really nice job in the press release of highlighting the drivers of our performance. So therefore, like Dan said, I'll keep my comments brief to allow for more time for your questions in the Q&A session. With that being said, I would like to highlight that our continued strong performance resulted in very strong financial position from which we're well positioned to grow. And keywords there being strong performance and strong financial position. So from a performance perspective, Fiscal Year 2026 demonstrated the strength of Oil-Dri's diversified product portfolio and efficient operating model. And we'll talk about cost reductions in a minute. As we stated at the onset of the Fiscal Year, and as Dan just reiterated in his opening comments, we knew the first half was going to be a challenge on a year-over-year comparative basis. We noted that although in the first half we faced a very tough comparison, we expected to achieve meaningful growth during the second half of the year, we gained incremental business and launched new products. The focus team here at Oil-Dri delivered on that forecast, achieving record full year sales and net income and closing the year with a record fourth quarter revenue. And that fourth quarter growth was broad-based across both product groups, with business-to-business sales rising 4% to a record $50 million, and retail and wholesale increasing 3% to $79 million. Improved product mix was the primary driver of the growth in the fourth quarter revenue, supported by strong growth in animal health sales, agricultural product sales, and co-packaged cat litter sales, as we had anticipated. And while net sales grew nicely in the fourth quarter compared to the prior year, gross profit as a percent of sales or gross margin was under pressure and remained steady at 27.8%. During the quarter, our gross per ton domestic cost of goods sold increased 3% over the same quarter in the prior year, primarily due to higher freight and transportation expenses, which were pressured by geopolitical impacts on diesel prices, as well as reduced capacity in the trucking industry. This pressure was especially impactful in the retail and wholesale products group, which experienced significantly higher costs to transport cat litter products, contributing to a 5% decline in segment operating income despite the higher sales. Depreciation and amortization, a non-cash component of our expenses, was also up 6% in the quarter due to the ongoing strategic investments we're making in our business. These increases were offset by the favorable mix and targeted price increases, some of which will get implemented on a lagged basis with some of our customers. In addition, cost reduction and expense management initiatives were a key to holding the margin steady at 27.8%. And while gross margins did remain steady, fourth quarter operating income increased by 17% over the same quarter in the prior year, demonstrating the resilience of the portfolio in our ability to manage through a challenging cost environment.

Now, switching gears from strong performance to strong financial position, and let's discuss cash and financial flexibility. The substantial cash generated as a result of the strong performance we just discussed enabled us to continue to invest in the business and return capital to our shareholders. Cash and cash equivalents reached an historic high of $74 million at Fiscal Year-end, up from $51 million a year ago, marking a significant 45% increase. We generated operating cash flow of $80 million and EBITDA, or earnings before interest, taxes, depreciation, and amortization, of $93 million, underscoring the growth and the cash generating power of our portfolio. And back to Dan's opening comments, cash is a fact. EBITDA is a notable metric for us as we have made the strategic decision to reinvest significantly in our business, particularly in funding infrastructure and growth opportunities in our manufacturing facilities, as well as funding the building of enterprise-wide capabilities such as data analytics and business intelligence. While those investments are funded in cash, as they are put into service, the non-cash depreciation expense that they generate puts pressure on our gross margins and will continue to do so as we have been investing steadily at this rate for about four years now. As a result of that impact on our margins, we do monitor EBITDA very closely to track the underlying performance of the business. Our cash position, together with our ability to access debt, provides strong liquidity and gives us flexibility to fund strategic priorities, manage through volatility, and pursue attractive growth opportunities while maintaining a very disciplined balance sheet. And speaking of our ability to access debt capital markets, I'd like to highlight some very recent enhancements to our financial flexibility. We have worked with two of our key financial partners to add more dry powder to our financing arsenal. We extended our variable rate revolving credit facility and increased our borrowing capacity by 33%, up to $100 million. In addition, that facility contains an accordion feature, which we have increased by 150%, up to $125 million. At the same time, we extended our fixed rate shelf facility and increased our borrowing capacity by 100%, up to $150 million. So in total, we have increased our ability to borrow under these two facilities from $200 million to $375 million, which is reflective of the continued strengthening of our financial position. Both of these were executed with favorable terms compared to our existing facilities. Both of these financing partners have been supporting Oil-Dri literally for decades. Those relationships are another key aspect of supporting our financial flexibility and our ability to fund growth. And as our financial position continues to strengthen, our capital priorities remain unchanged from what we have told you previously. First, we will continue to invest in our business, including the manufacturing and capabilities investments mentioned above, as well as investments in people and research and development to support our future growth. During Fiscal Year 2026, we invested $34 million in capital expenditures to support infrastructure capabilities and long-term growth. Second, we will continue to support our dividend. During Fiscal Year 2026, we increased our dividend not once but twice and paid out over $10 million to our shareholders. Third, we will evaluate opportunities to achieve long-term profitable growth through the pursuit of strategic acquisitions. The combination of our cash position, our strong operating cash flow, and our manageable debt profile including our enhanced access to capital markets funding, provide meaningful financial flexibility to evaluate and pursue acquisition opportunities. And as we evaluate acquisition opportunities, we will remain focused on our mission to create value from sorbent minerals, seeking businesses and capabilities that reinforce and extend that core purpose and offer a clear path to long-term value creation. And finally, we opportunistically evaluate potential value creation through share repurchases. And when it makes sense and generates long-term value, we will pursue that.

And with that, Dan, I'll turn it back over to you and Leslie for the question and answer session. I'm sure there will be a few.

Daniel Jaffee

Yep. Well, thank you, Susan, and thank you for that recap.

Leslie Garber

And Leslie, will you highlight which questions we're answering first? Yes, and as a reminder for those who are interested in asking questions, please submit your questions using the "Ask a Question" field on the webcast and click Submit. The first question we have comes from both Ethan Starr and Robert Smith. They have very similar questions. Was there a seasonal factor in Amlan's last quarter? Good numbers. What are the prospects for the run rate of $40 million being achieved in the current year? And what are the prospects for maintaining or increasing Amlan's record Q4 sales going forward? Wade, can you handle that?

Unknown Speaker

Yes, absolutely, Leslie. And thank you, Robert and Ethan, both for those questions. Amlan, actually, as you see, had an exceptional quarter for Amlan in Q4 of this past year. And it was driven by a couple of things which truly made it extraordinary. You may recall earlier in the year in previous webcasts, we talked about the loss of a key account in Brazil, and we also spoke to the impact that the tariff situation globally was having on our business and the impact specifically in a couple of key geographies like Brazil. Those things combined early in the year to lower our sales to those regions, and then we worked very hard in the course of the year to overcome that. You saw that in solid growth in Q3, and then now the exceptional growth we've seen in Q4. So obviously, logically, there was some rebound effect in the performance we saw over the course of the year. That being said, we're very bullish on the growth going forward for a couple of regions. One, we saw very strong growth consistently in Asia through the course of the year. In Latin America, we've seen not only recovery to a certain degree of that key account that we lost, but also additional growth in our business in Brazil to certain co-ops, gaining new customers and also new volume at existing customers. In addition, the regulatory agency in Brazil, MAPA, has made a number of changes, which is improving our ability to register our products and make additional claims. They've also, as many of you may have seen, have come out with new bans on certain antibiotics that are key and instrumental in the animal industry, including antibiotics like Apramycin, certain forms of Bacitracin, and Virginiamycin, which are all key antibiotics used in subtherapeutic application in animal feeds. As those products are removed in Brazil, that's going to drive alternatives, and especially natural alternatives like we offer in our Amlan portfolio. Finally, in Brazil, I would note that we're expanding our sales with new distributors into the middle and northern states including Margroso, Margroso de Sol up into Bahia, and then also in the southern states down in Rio Grande do Sul, and that is expanding our business and building our base. Finally, we're moving more aggressively into the ruminant market in Brazil. You may have heard me say earlier we sell a lot of our products into the dairy industry today, which is a form of ruminant, obviously. In Brazil, the focus has been on feedlot for beef cattle. We've completed significant research there over the course of this year and are seeing an opportunity for a lot of growth there. Finally, Robert and Ethan, we're also launching new products in North America over the last few months. Those are starting to be utilized by some of the largest of the top 10 poultry customers in the integrated industry in North America. We're excited about that. That's a product very similar to Varian that we sell in Latin America, where we have tremendous customer success, and it also is a very strong component product in our portfolio in addition to our base clays. So for all of those reasons, we're very bullish on the growth going forward. The fourth quarter was, again, exceptional. That's a rate we probably can't maintain. But we should see very good growth year over year as we continue to expand our Amlan business.

Leslie Garber

Great, thank you so much. We had a couple of similar questions come in regarding Fluids Purification, some from Robert Smith and John Baer, so I am going to summarize and ask the question. And Daniel Jaffee will answer this. Fluids Purification sales declined 5% for the full year, but delivered their strongest quarterly performance in the fourth quarter. What drove the improvement in Q4 compared to the rest of Fiscal Year '26? Dan?

Daniel Jaffee

Yep, happy to answer the question. Bruce Pacey, he did supply me with a lot of the details, so I'm fairly confident I'm on target here. It's important to note that the 5% year-over-year decline largely reflects a difficult comparison with Fiscal Year '25 when renewable diesel sales were increasing significantly as several new production facilities came online. Throughout Fiscal Year '26, demand from both edible oil and renewable diesel customers remained solid, although volumes varied as changes and oil type and feedstock quality impacted customers' needs. I think it's important to note that the decline in sales did not reflect customer losses. It was just variation in demand, which is what drove the positive fourth quarter; was a positive variation in demand. So we're very happy that we're hanging onto a customer base. I think any time a market in its earliest stages, you're going to have more volatility than when the product line gets mature. So, you know, hang in there, but we're hanging on to our customers and we'll ride the ups and have to deal with the downs as they figure out their supply and demand equation.

Leslie Garber

Thanks, Dan. The next question comes from Tyler Ventura from Diamond Hill Capital. He asks, "Co-packaged cat litter grew 47% this year and 60% in Q4, which you've identified as your single biggest gross driver in the category. Walk us through the capacity and customer concentration dynamics, specifically how many customers drive this 47% growth? What's the gross margin profile of co-package relative to your domestic branded business? And is the expansion of your lightweight offering with this partner a multi-year ramp up or approaching maturity? The reason I ask is because your domestic clay litter sales are despite Cat's Pride antibacterial posting seven straight quarters of growth, which makes me wonder if co-packaged success is partially cannibalizing your own branded distribution or if that's a separate dynamic tied to competitive promotional intensity." A lot in there. Christopher Lamson, if you could address that, that would be great.

Christopher Lamson

Sure, thanks Leslie and thanks Tyler for the question. Tyler, we are obligated under contracts with our co-man customers to not disclose a ton about the nature of those relationships. But with that being said, what I can share, we're obviously extremely pleased with the new business within lightweight and the growth that you reflected in the question. We're also, if you go back really through calls like this one and our annual shareholder meeting, we've been extremely consistent, be it me or Laura, over the last seven or eight years around how focused we are on growing the lightweight segment and that we believe lightweight segment growth is good for Oil-Dri, period. With that being said, more tactically, I would say we have some very good analytical tools that would tell us that, particularly with the folks we're supporting, with co-man relationships, there is not much, if any real interaction with those businesses. But again, we like the large brands driving lightweight and having great lightweight product, and we believe that's good for the overall development of the lightweight category and for both our private label and branded business in litter.

Regarding capacity and capital specifically, I'll say, you know, a bit of a mixed bag. We were able to leverage existing capacity in many key areas within the supply chain. And where either the customer required specific product needs that called on additional capital investment or pockets of further capital need, maybe to address a bottleneck or two, really the nature of our longer-term agreements in this area really help us feel very good about the capital that we did put in to supply, support this ongoing relationship. So thank you again for the question, and we're excited to have this business and to continue to grow with our customers in lightweight.

Leslie Garber

Thank you. The next question is from Ethan Starr. Could you please discuss the challenges and opportunities you see in growing your branded cat litter distribution and sales? Laura, will you take that?

Laura Scheland

Sure. Good morning and thanks for the question. We'll take the question in two parts. First, with respect to the challenges, some of the challenges we've seen in the past year for our branded cat litter distribution are increasing slotting costs, customer investment requirements, and other spend requirements that are rising faster than our pricing and inflation, but continue to try to stay in front of, along with retail consolidation in the brick and mortar channel. We see some historically elevated spending from large brands and competition from a number of smaller brands and new entrants. However, turning to the opportunities, all in, we remain very excited about the great opportunity for our brand. We remain the number four brand nationally in units and are dedicated to growing with innovation, standard distribution, and focus. During FY '26, we're excited to launch a number of new items and continue to focus to do so in the coming years. Another area of opportunity that we remain excited about is e-commerce. In the past year, we've grown our product and offering across different retailers and are seeing great growth in adoption from consumers.

And then on the promotional spending level, while FY '26 was a time of heightened spend, and we continue to see promotions be elevated, we're seeing indications that spending is starting to subside and staying instead at the historically high levels. So we remain diligent in managing our promotional spend in a strategic way to optimize our return on spend, but also our consumer value on an everyday basis to be kind of the best choice for our consumers. And then finally, I know the question was with respect to branded items, but a key point of differentiation for us among our branded competitors and our private label competitors is that our diversification with strong offerings in both branded and private label channels, across the non-clumping, clumping, and crystal segments. With this diversification of offerings, we're able to fill trucks to customers and optimize logistics and inventory carrying costs for our customers and fill a large range of their litter needs. And we'll continue to focus to grow both our brand and private label distribution with our strategic customers. So all in, balancing out the challenges and opportunities, we remain very excited about the future for both our branded private label products and remain committed to growing across both e-commerce and brick and mortar channels.

Leslie Garber

Thanks, Laura. The next question for Wade, this time on the Ag side of the business.

Unknown Speaker

The question is, the Ag business has delivered year-over-year sales growth in each quarter of Fiscal Year 2026. What is structurally driving this growth? Yes, thank you for that question, Leslie. There are a number of things that really drive the growth in the types of businesses that we target with this division, particularly. Just to remind the audience, our two primary channels that we go to or markets are really one on what I'll call the turf and ornamental side, which is more of engineered granules to higher-end, higher use applications for specialty products, and then more our standard carrier products, which are targeted for what I'll call broad acre or row crop agricultural applications. And in both cases, we've seen good growth in that business. We have been, I think, very fortunate and hopefully strategically smart in how we've aligned with certain leaders in those segments, working with some of the largest producers, which as they grow has allowed our business to grow as well. Kind of some of the macro events underpinning that, we've had really large plantings. If you look at the broadacre or row crop side of our business where, again, customers might blend on a herbicide or a pesticide or a bio-Ag or other bioactive product onto our clay to put on, let's say, row crops that those plantings have been very high over the course of the last 12-18 months. We saw over 95 million acres of corn planted in the U.S. this past season, about 85 million of soy. So very, very high in the range of what we typically plant, and then drives naturally more tonnage of those products that need our clay as a functional carrier into that solution. So all of those things have kind of come together to help us grow our business. Again, we have a strong competitive position. We're partnering with some of the leaders in those various sectors, and then we've seen just general growth in Ag and in the plantings that year over year have helped drive the business. So all those things have come together to help our business grow.

Leslie Garber

Thanks, Wade. The next question comes from Jens Verbrugge from Value Square Funds. He asks, "With the expanded revolver and the removal of the $100 million acquisition cap, how should we think about the size and focus of acquisitions you're considering, and what leverage would you be comfortable with? Also, if the number one capital allocation will be organic investment, should we expect CapEx to increase above the plus minus $35 million per year of the last couple of years? Any guidance on balance sheet and the usage of a bit of financial leverage would be helpful." Christopher Lamson, I'm going to have you answer that, and Susan, feel free to chime in, too.

Christopher Lamson

Sure, I'll really start out by the piece, that with the piece rather, that is M&A oriented, and then if Susan would like to chime in on the ongoing capital spending, that's great. Really, Susan alluded to this piece too, and I can tell you we're very disciplined around being mission-led, around value, creating value with sorbent minerals. And then we've really got some key strategic filters that we then, you know, run ourselves through before we engage. And then we're incredibly disciplined around remaining value-driven and where we don't believe that we can drive value and return it to folks like you, we will remove ourselves from deals. I would say in thinking about M&A, we are certainly – I'm grateful to Susan's team for the additional dry powder, maybe spelled DRI, play on words that they've provided us and obviously the cash that I think just came across in one of Tyler's questions, that the business is generating for us, but we're going to be prudent here. And I think there's 85 years of history that shows we'll be prudent relative to, you know, the leverage coming from the balance sheet.

Susan Kreh

And, hi, this is Susan. I'll just add one more thing on. Yes, I think it is lower risk to reinvest in our team and in our business because we actually know how to run this company and the operating team runs it well. So I definitely am pushing Aaron and his team to look for more opportunities that create long-term value for the shareholders and have the right returns and to think bigger than they have in the past. So it is possible that you could see some bigger reinvestment in the business at levels higher than you've seen in the past.

Leslie Garber

Great. Well, we are at time. Dan, I don't know if you have any closing remarks.

Daniel Jaffee

Closing remarks, yes. Thank you everybody, and we'll look forward to talking to you next quarter. This was a great quarter and onward and upward from here.

Operator

This concludes today's conference call. Thank you for participating. You may now disconnect.

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