Alright guys, hey, we're North America's consolidator for the flooring industry. At a glance, it's a roughly $90 billion TAM. I love the flooring industry. It's a huge, massive, beautiful business that, in good times and bad, really just chugs along. With that, we're around $65 million in size and $2.4 billion. We're primarily focused today in Michigan. We also have a location we opened up recently in British Columbia, Richmond, BC. California and Florida are also new. For us, it's really about either building or buying locations just based on the economics, which we'll talk about. As I mentioned, the flooring industry is a large TAM, and it's mostly tied to renovation projects. Things like cabinets, countertops, siding, roofing, those other building material categories are closer tied into construction cycles, things like that. Whereas flooring, love the space. It's driven heavily from renovations, so people wearing out their floors. Of course, the market's hotter, better, housing turnover is higher. You have more of a tailwind also on projects. We are not just tied into residential, but also commercial. We do some hospitality work, also now medical, like hospitals, things like that. Great industry, highly fragmented, highly fragmented. I think there's actually more entities today than were around when I first got in this space over 20 years ago. You have just a huge TAM that has a lot of fragmentation, which is mostly driven by the install component to flooring, which I won't get into today. If anything, I would say the industry will continue to be very fragmented unless folks like us come in and help clean it up. On the big box side, I should mention most industry reports have big box as have already peaked in the space, like Home Depot, Lowe's, things like that, other categories that are more interesting for them that turn faster, less complexity. For the most part, it's wide open, and it's a good space for us. We are a legacy e-commerce business. That's where BuildDirect started many moons ago. The e-commerce business today is BuildDirect.com. Our Pro Centers were a bit newer. First, they were opened through acquisition in Michigan. For us, the main growth will be on the M&A side, will be on the Pro Center side and on e-commerce. That's a legacy business that we spend a lot of time cleaning up, refurbishing, getting the tech stack fixed, so on and so forth. That is where a lot of our organic growth will most likely come from as we continue to scale that business back up. Today, it's around a $15 million run rate, should be $50 million, and there's not really much needed aside from just letting the cake bake to pull it up. Yeah, nine Pro Centers today, and that's who we are. Our Pro Center, my apologies, I thought I had the actual new location here. There was a placeholder image, I tried to fix it quickly, but wasn't able to do that. Our Pro Centers are effectively where pros like general contractors, contractors, designers, just you name it, a professional who's working in the flooring space leverages that Pro Center for operating their business. We have roughly about 4,000 of them who work out of our Pro Centers. They pick up materials or we deliver materials. They use it for showing their customers, so on and so forth. They're all geared towards being able to have that pro run their flooring business out of our center. We want to keep on adding products and services to them. For example, recently we launched a website service, which is pretty cool, where we do co-branded micro-websites for pros for free. We co-brand with them, and it's a great way for them to be able to continue doing more business themselves. There's probably, as it comes to services, more and more that we'll end up doing for pros on the service side, things like maybe running payments and things like that. These are areas that they ask us to help them with, and we're pretty decent at. When it comes to products, it's the basics, right? Carpet, hardwood, vinyl. The one major category that we're not in today is tile. I should mention from an organic perspective, we'll more likely get into the tile segment. Tile is about 35% of the overall flooring TAM. It could be a pretty good opportunity for us. Our supply chains, it's a good fit for it as well. It's today being piloted online, and from there it'll move into our Pro Centers. We're in all these categories, and for the most part, very light on concentration. Not heavily dependent on new construction or commercial restoration or discretionary spending on renovation. It's really a good, healthy mix. When you think about who our customers are, you have this massive amount of work that's being driven by pros, not just in flooring, but also roofing, siding, plumbing, so on and so forth, all these different categories. For us, it's all about building a business that's really catered to this group. We like it because, A, it's sticky. Big Box Retail and other large retailers are great, like Floor and Decor, fantastic organization for the homeowner. Everything from the building facility footprint, what we offer, services, so on and so forth, are all geared towards these customers. We're seeing just a great tailwind of this growing, right, where you can get your leads from Angie's List or Facebook Marketplace, OfferUp, you name it. That's where these pros get a lot of their customers from. There are a lot of challenges regarding licensing, insurance, co-employment lawsuits, piece rate work compared to hourly wage, all this just drama that's been creating a lot of challenges for retail entities having these pros work for them directly. There are so many pro customers who are out there. In a perfect world, all 500,000 of them in the U.S. would be their own flooring store. That's what we're working towards. Today we're at nine Pro Centers plus our e-commerce business. With that, we're at $65 million on gross revenue. Margin is 40% today. If tomorrow everything was being leveraged through our direct procurement program, margin would probably be closer to about 55%. We still leverage a mix of stateside distribution as well as our direct import. We're really focused on the Sunbelt. That's definitely a huge opportunity for us. A lot of our e-commerce business is being serviced today out of the Florida market. We really should be in Texas as well. We can make a pretty good impact there. What we're building towards, like our North Star, we want 75 locations, half a billion in revenue. On the margin side, there will continue to be opportunities there for sure. Flooring is not a super price-sensitive category. As I mentioned, there's opportunity to really drive cost out as well. If you look at our financials, we've set it up in a way that should be relatively easy to model. We have our corporate platform that we operate that scales very, very well. As we're adding locations, our physical locations will on average do, let's say, about $7.5 million per location. They'll have EBITDA around 12% or 15%. EBITDA is damn close to net income. From there, you have a platform that gets highly leveraged really along the way. We built this platform to be very efficient on adding locations. We call them Pro Centers because, for the most part, the locations that we're adding service pros in different categories. For example, if you have a business that is servicing local, let's say, commercial renovation projects, more than likely that business is focused on just that niche. We can bolt on our other customer channels and marketing, things like that. In some cases, we'll rebrand them, like our last one in Orlando, we co-branded BuildDirect with their legacy name. If we pick up a business that has a really strong local brand, we may not. For example, in Michigan, our main brand we operate out there is called Floor Source because it's sticky. It's been around forever, and it's a pretty good reputation with the local pro community. In the back end, the inventory is leveraged from our general business, but we have a front end that's a bit different. For us, it's all about e-commerce first. I mentioned we are a legacy e-commerce business, and for us, we really track our growth plan. Our 75 locations, we've mapped those out a little while ago, and we have our e-commerce engine running those markets. Effectively, as we're building up that business, it opens up markets for us. We're able to seed, like in Los Angeles, we first started the e-commerce. We kept on growing that business until it got to a point where we could convert our location out there from shipping into a BuildDirect-operated Pro Center. Super efficient. You're already sticky. You already have a presence in the market, and it's a pretty good fit. Once we get a base of business that's ramping up, from there we either build a location or we buy. Right now, we're in buy mode. As you guys probably know, the market's a bit tough, especially in businesses that are inventory dependent, trying to deal with tariffs, all this kind of great noise. There are quite a few deals that are out there. For us, definitely view the next few years as a great opportunity to buy. However, with all deals we do, you have to test it back against what the cost of building is. For us, we're pretty efficient with building. If we announce a deal that we bought something, there's a 100% probability that it was a better deal financially than building it. For the most part, these aren't super expensive to build either. We view it as a unique opportunity for, as I mentioned, probably the next few years. I go back to, we'll run out of years way before the targets are exhausted. There's over 15,000 of these businesses that are operating across the country, and there's been quite a few successful roll-ups in different niches that have happened. For us, we're just focused on the pro segment for the reasons I mentioned before. Once we buy them, you can optimize in a few ways. The first main way is on marketing. The flooring industry is very light on marketing. If you attend a recent floor covering industry conference, we'll have classes on how to use paid ads, how to use Google Marketing, like really basic stuff that many industries dealt with long ago, which is great for people like us. Also, on the supply chain side, we can cut costs quite a bit by leveraging our direct import programs. For us, it's really about marketing and procurement for improvements. That's how we model out these deals. I should mention, for buying something intuitively, you don't pre-price in the synergies there. It's all opportunity on the backside. The one example I'll give, actually, the next time I talk about this, there'll be some hard numbers here plugged in based on the timeframe and when we're reporting our results. It's a great example. It's just one of many examples. Great owner owned the business for quite a while, wanted to retire. We don't buy businesses that don't have an operator. In this case, there's a great GM that was in place, running the day-to-day business. With that, really no succession plan. They own the real estate. It's the same story over and over and over again. I was in Toronto this week, also meeting with a few people. It's the same story. You have all these business owners who have these large flooring or roofing or any sort of other category businesses. If they're operating out of white industrial real estate and they've been around for a while, there's a great chance they own the building. There's a great chance the building they own is worth a hell of a lot more than what the business would be worth for them. You have this opportunity to come in, step in, give them a solution on how to divest the business. They either sell the real estate off to institutional buyers, or they keep it and at least lease it back from them. It's just really what it's all about. Our team has been set up to, and I really appreciate our CFO, Kerry, and his team, has been set up to work through these deals, which can be quite aggravating at times, right? A little frustrating. You're almost doing due diligence on both sides, it feels like. Developing a process that was super seller-centric would make it very easy, very simple. I get asked every now and then why private equity doesn't step in and buy these up. If you came with me on one meeting, you'd know why pretty fast. They're very far away from the level of sophistication, even if it's a $50 million company, being able to work there. With that, we have a great team. We have a lot of respect for the business owners and have a good plan for them how we can help their team continue on post their sell. For the most part, they're looking to get their names off the books and really kind of things like that. We do have a really good finance team, finance function. For us, it's a pretty good process for integrating that that we built. It's really built to scale. The main thing I'd point out, like for us, I mentioned we want to be around 75 locations, about $500 million in revenue. There's a reason why. For the most part, we like markets that are digital-friendly. The main MSAs throughout North America that we can compete in with that model, effectively, 75 makes sense. In Orlando, for example, we have our first flagship. Probably do three or four more in Florida. That's why tile is important in the Sunbelt. Tile is a big category where it's not so much in the Midwest. For us, everything we do, it's really the mindsets around how much cash we're putting into it, how fast we're getting cash back. I like plans that have a clear two or three-year payback, but a path potentially to one. When we do buy, we like having deals where there's a lot of inventory. For the most part, asset purchases, clean books, and we kind of work through that process. Our three tracks for growth, as I mentioned, are organic first. I would look on the catalyst side to our e-commerce business. That's a legacy business. It used to be $80 million back in the day, a while back. It's today running around $15 million. I think I've mentioned this before to the folks here if I've talked to you before. We pulled that business back quite a bit over the years as we were fixing the tech stack. There are a lot of organic growth opportunities there with that business as we're now scaling it back up. What that looks like is you slowly increase inventory, you slowly increase demand gen spending, and you slowly increase staff. It's pretty straightforward. As well as a couple other new categories I mentioned that are in the flooring space that we're not in today. I get pretty excited about bolt-on acquisitions. I love these little $6 million- $15 million businesses that you can just plug right in. Look, there's always something we have to fix, some issue we have to overcome. Maybe it's too much inventory, maybe it's old inventory, maybe it's a variety of things. We have pretty good ways of dealing with those items. On the larger division side, there are a lot of opportunities that are also north of $50 million. If it's uniquely different, like a fully contained business where it's not a good bolt-on, that's where we have our division expansion. We've done that now twice where we've acquired two businesses that were too different from the core to bolt on. There are a few specific businesses that we're interested in looking at. Deals like that, though, would also have heavy coverage on the working capital side. Here's us on the revenue side. We're at $65 million. From a share perspective, we're very tightly held, over 70% on the inside, institutional side. I get questions a lot, how do you buy more shares? The answer is you got good luck. It's not a problem we're trying to solve. I was told a while ago I needed fixed liquidity. Nope. At the end of the day, we're capital allocators. We really have a great group of people that are involved. We're rifle focused, not on promotion, but rather just building the business and then ideally getting to that $500 million revenue with the smallest denominator as possible. The denominator that matters to me is share count. Great team, great board. Really enjoy working with them. I'm not big on flattery, so I really do mean that quite a bit. We have a great chairman, also a supporting team. From a management perspective, myself, Jay, Kerry, and Denny, who leads one of our large subsidiaries, we love this industry. We love this space. We love the challenge. This is not just a three or four-year deal, right? This is something that we have a lot of passion for. I saw this opportunity years ago as I was working through large companies in the flooring space and just saw this massive opportunity for this consolidation play that's extremely disruptive. We have kind of like a love-hate deal with some folks, of course, in our industry. Pretty thrilled to make this a massive thing. From there, who knows? There are other categories besides flooring that are pretty large. All in all, huge market. We're a very fast horse. We're the tallest pygmy in the village sometimes, if you think about that, when it comes to how we apply technology in the space. Solid team. Our leadership team has had some wins, had some losses. Egos are parked at the door. For us, it's all about responsible, steady growth. Really from there, that's us. Any questions? I'm kind of new to the story, so I just appreciate the nature of the question in the sense that I don't know much. You're rolling up. I understand the attraction, I guess, from an investor's perspective on the roll-up. I know there's been a lot of movement at the top of the funnel with the building industry recently, like Lowe's, Depot, one of the OXO, Jacobs, whatever. I can't remember which one it is, but it's two XOs and they did. There's been a lot of multi-billion dollars at the top of the funnel stuff. It appears to me that everyone's trying to get closer to connecting end consumer with the big players. You guys are going to consider that as a core part of the distribution. What's going to prevent like a Home Depot or a Lowe's or something? Do you, is the goal eventually for you just to scale it up and then sell it to somebody like Jacobs? Why are they not doing what you're doing? I appreciate you know probably doing a way better job and just trying really big picture. Yeah, it makes sense. Yeah. There's a few things. The first, when it comes to like a Depot or Lowe's, and I was a former Depot merchant and, you know, a lot of fun, great, great, great company. I focus on the pro customer as well, but there's a few problems. If you, for example, build homes or you do renovation, you need like one or two doorknobs. Great, you go to a big box store. You need like 50 of them delivered to the job site, you go to a wholesaler. A different cost model, different service model, really things like that. When it comes to companies doing roll-ups in this space, look, I would have thought there'd be more by now also. It just shocks me, absolutely shocks me how few, and we're talking to businesses about selling, we don't lose a deal to someone else. They just don't sell if we can't come to terms. We've had quite a few last year just close. When you have $30 million in real estate, it turns out it's not worth the hassle sometimes. It's funny, I stopped asking myself that question and just started making offers and just started realizing, look, it's a huge space. A lot of folks could come in and participate. I think one thing that scares private equity is the inventory. The inventory is the scary part. You can get hurt pretty bad in inventory. For us, our e-commerce business is a great outlet for dead inventory. Without that, you'd have some major concerns when you're buying a business. When it comes to what the exit is, I honestly don't know, don't have a real view there. I want a half a billion dollar, 75 locations, every major market. From there, it's okay, great, what's the next major category? That's to me a lot more interesting. I would say lastly, one challenge with the pro is the real estate footprint. A huge fan of Floor & Decor as well, but the real estate footprint set up for the homeowner and the same with Depot. Our pros, they just drive in the back, back up, and then yell at the person to load their order up, and they want to be out in five or ten minutes. You can't do that with class A real estate at all. It's not really a thing. That's what our Pro Centers do, what they cater to. The same thing applies to windows, roofing, siding. One of my favorite companies you want to look at, what kind of inspires us is ABC Supply. The owner did an amazing job in the roofing space. It's a company, a multi-billion dollar company no one's ever heard of. They're still not even the biggest supplier in the local market for a lot of roofers. A lot of opportunity for sure. Any other questions? Do you build and buy something that you said you bought one for $600,000? Is that what it costs to build? No, it costs a little less. When you build it, it's about $500,000, and that includes the initial inventory. From there, you want to get it up to around $7.5 million. The warehouse is probably like 20,000 sq ft with that, and you could do 45 minutes to an hour drive time, which is about far enough. It takes time. One thing we're trying to hack a bit is we're trying to figure out how to build faster and scale up faster with pro leads, which so far has gone pretty well. We'll talk about more of that on future earnings calls. I would say the better we get at building, and by better, I mean ramping up the pro reputation in the market, the more pressure that I'll get put back on the build side. If we're going into a market, we're going into that market. It's just a matter of if we're going to build or buy. On the buy side, it just has to make sense. For one location, that's about right. I have one minute left. Anyone else have a question? Yep. Private equity likes capital A businesses. Is that the answer to the inventory question, or maybe if they're like fashioned in flooring and where it's stuck with it? Like, you know, it doesn't strike me as like something like, I don't know, a boating or something. Did I get it wrong? Yeah, years ago, I was a Product Director of one of the largest flooring manufacturers. I have no fashion sense or style at all. I'm just wearing a black sweater. It was funny. We did trend analysis over 20 years. Nothing changes. It's a very boring deal. Some stuff changes as far as the marketing, the rebranding. Grays are out, browns are in, things like that. On the private equity side, two things about this business they don't like. One is inventory, so assets that are not very fungible, right? The second part is AR. AR is next to non-existent. These businesses that we like don't have big name customers. It's just a lot of small customers. They pay in cash or they pay in a few days. There's not a lot of AR you can leverage. Intuitively, you get 50% on the inventory and 80% on AR. That could be it, yeah. All right, guys, thank you very much for your interest and for listening. Appreciate it.