Good afternoon, ladies and gentlemen, and welcome to the good natured Products First quarter 2022 E arnings Conference Call. At this time, all lines are in a listen-only mode. Following the presentation, we will conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. As a reminder, today's call is being recorded, May 31, 2022, and I would now like to turn the conference over to Mr. Spencer Churchill, Director of Investor Relations. Please go ahead, sir. Thank you, operator. Hello, and welcome to good natured Products's conference call regarding our Q1 results that were released earlier this morning. My name is Spencer Churchill, and as mentioned, I'm Director of Investor Relations and Corporate Development here at good natured Products. I'm joined today by Paul Antoniadis, Executive Chair and CEO of good natured Products, who will provide an overview of the quarter and commentary on the business and strategy. I'm also joined by Kevin Leong, our CFO, who will be speaking to the Q1 results in more detail. If you have not yet received a copy of the press release, you can access it under the News tab on the good natured Products investor website at investor.goodnaturedproducts.com. For those of you unable to listen to the entire call, a recording will be available in the Recent Investor Events section of the website. Before I turn the call over to Paul, I'd like to remind listeners that management's prepared remarks contain forward-looking statements within the meaning of securities laws, which are subject to risks and uncertainties, and management may make additional forward-looking statements in response to your questions. These forward-looking statements include, but are not limited to, expectations surrounding future financial results, new orders and customer additions, new product launches, and M&A activity. We will also be discussing non-GAAP financial measures, the definitions for which can be found in the press release issued this morning. All financial results discussed on the call are in Canadian dollars, unless otherwise noted. With that said, I will turn the meeting over to Paul. Thank you, Spencer. Welcome, everyone, and thank you for joining us today. The team again delivered a record-setting quarter with our highest level of quarterly revenues of just under CAD 26 million, up almost 230% over Q1 of last year, and adjusted EBITDA of just under CAD 1.2 million. Our first quarter growth was driven by revenue contribution from the Ex-Tech acquisition completed in May 2021, and strong organic growth from new customer acquisitions, increases in average selling price, and strong shipments to the large national U.S. food producer that was announced in October 2021. Our recurring B2B customer base at the end of the quarter was over 1,200 accounts, up from 600 at the end of March 2021, a large portion of which came from organic growth. Our Q1 performance is a result of our team's passion and focus that we put towards serving our customers in this unprecedented inflationary environment with supply chain disruption and geopolitical uncertainties. These supply chain disruptions, particularly with port of entry challenges and the cost of ocean freight, are causing customers to look for ways to accelerate reshoring efforts and reconfigure their supply chains in favor of North American production. This is opening up new growth opportunities with new and existing customers whose overseas supply chain has been delayed or disrupted. It has enabled us to fulfill these customers' needs using the local in-house manufacturing capabilities that we've acquired in the last 18 months. We believe the strategic acquisition of FormTex Plastics, announced on May fourth, 2022, will further enhance our in-house manufacturing capabilities to capture new customers who are looking to either supplement or fully replace their offshore supply chain with our North American sustainable plant-based option. FormTex also expands our in-house manufacturing capabilities to reach key markets in the Southern U.S. with its location in Houston, Texas. We highlighted two new customer additions this quarter that really showcase the continued market demand for earth-friendly products, the first of which was a partnership with Divvies, a producer of vegan, nut, dairy, and egg-free treats. Divvies is rapidly expanding its business in these categories, with its products carried in over 3,000 stores across the United States. In addition, we announced that ForageGirl, North America's largest producer of fiddleheads, will be shipping this year's harvest in new custom-designed, BPI-certified compostable packaging supplied by good natured Products. ForageGirl handpicks these fiddleheads in Eastern Canada and supplies the major grocers, including Safeway, Sobeys, Metro, and Loblaws. Our variable gross margin for Q1, defined in our MD&A and press release, came in at just under 32%, which was at the upper end of our preliminary announcement in April of this year. This was a result of our product and customer revenue mix, combined with a full quarter contribution from Ex-Tech and sustained inflationary cost increases. Our variable gross margin for Q1 was at the upper midpoint of the target range of 28%-35%, demonstrating our team's ability to deliver our variable gross margin in the upper end of the range, even under challenging operating conditions. Given the rapidly changing market dynamics, pricing adjustments may continue at times to lag certain cost increases within the logistics and raw material marketplace. Operationally, we have made good progress on our investments in high-speed robotic production capacity and capability to support our growth. The new high-speed sheet extrusion line at IPF has been installed and is operational. Delivery of the high speed thermoforming machine that we purchased for our Shepherd facility was delayed due to port congestion issues that have been well documented. It is now in transit, and we expect to have the equipment installed and operational in Q3 of 2022. We also issued a PO and made a deposit for a high speed sheet extrusion line at our Ex-Tech facility that we anticipate will be operational in Q2 of 2023. The new line is anticipated to create up to 15 million lbs of additional sheet extrusion capacity with output of up to 2,500 lbs an hour versus our current company average of 800 lbs per hour. We are pleased to share that our Shepherd facility, acquired in May 2020, has largely transitioned to plant-based materials with a multinational account remaining who is in process of finalizing its global supply chain packaging standards. Due to current global supply chain, we anticipate the completion of IPF and Ex-Tech conversion to plant-based materials will extend well beyond the targeted 18-month time frame. Finally, I want to sincerely thank our team members, partners and customers that helped good natured deliver such a strong quarterly results in the face of difficult operating conditions caused by macroeconomic factors, continued global supply chain disruption and inflationary pressures. With that, I will hand it over to Kevin Leong, CFO of good natured Products, to talk through Q1 financial results in more details. Over to you, Kevin. Thank you, Paul. Hello, everyone. Revenue for Q1 2022 increased 228% to CAD 25.9 million, compared to CAD 7.9 million for the three months ended March 31, 2021, based on the growth factors that Paul has spoken to earlier. In terms of business mix for Q1 2022, the industrial business group contributed 73% of total revenue, compared to 69% for Q1 2021 and 77% for fiscal year 2021. The increase compared to Q1 2021 was driven by the completion of the Ex-Tech acquisition in May 2021 and an increase in average selling price for our industrial products. The packaging group represented 24% of total revenue for Q1 2022, compared to 26% in Q1 2021 and 20% in fiscal year 2021. The reduction compared to Q1 2021 was driven by the increase in the industrial business group I spoke to earlier. However, on a gross dollar basis, packaging revenue was up almost 200% year-over-year. The increase relative to fiscal year 2021 was driven by the addition of new packaging customers, an increase in average selling price and the addition of the national U.S. food producer announced in October 2021. We've continued to leverage our significant internal sheet extrusion capacity secured through the acquisitions of Ex-Tech and IPF to support our growth in our packaging business. Our focus remains on increasing the contribution from our packaging business group through strategic acquisitions and organic growth initiatives, in addition to increasing revenue contributions from other business groups, including general merchandise, services and commercial and business supplies. My final comment on revenues is that our customer mix continues to diversify, with the top four customers in Q1 2022 representing 31% of total revenues compared to 34% in Q1 2021. Revenue contributions from the top four customers in Q1 2022 increased from FY 2021, which is again due to increased revenue contribution from the large US food producer that was announced in October 2021. Variable gross margin, a non-IFRS measure defined in our MD&A and press release for Q1 2022, was 31.7% compared to 40.8% for Q1 2021. Some of the factors that influenced the year-over-year decline include a lower packaging revenue mix contribution, which we spoke to earlier. Our packaging business group typically has higher variable gross margins when compared to our industrial business group. Also, higher mix of revenues from the national market segment, driven by the acquisition of Ex-Tech and the addition of the new national US food producer announced in October 2021. Finally, external supply chain and inflationary cost increases, which intensified in the second half of fiscal 2021 and continued through Q1 2022. The company is adjusting product pricing to offset cost increases, but with a lag effect over certain periods. Gross margin for Q1 2022 was 25.6% compared to 35.3% for Q1 2021. The year-over-year decline was largely driven by the same factors that impacted variable gross margin as discussed earlier. SG&A of CAD 3.8 million was up 123% compared to Q1 2021, which was driven by headcount additions from the Ex-Tech acquisition as well as additional corporate headcount added to manage our growth, higher accounting and audit fees, investor relations expenses, marketing and advertising, as well as general legal fees. That said, SG&A as a percentage of revenue for Q1 2022 declined to 15% compared to 22% for Q1 2021, demonstrating a positive operating leverage, which has led to the improvement in our adjusted EBITDA and net income that I will speak to now. Adjusted EBITDA, a non-IFRS measure defined in our MD&A and press release for Q1 2021, was CAD 1.2 million compared to CAD 155,000 for Q1 2021. Higher adjusted EBITDA was generated as the increase in gross profit contribution surpassed the growth in SG&A expenditures and fulfillment and logistics expenses. As a percentage of revenue, adjusted EBITDA increased to 4.5% from 2.0% in Q1 2022 as we delivered the positive operating leverage noted earlier. The company anticipates that external inflationary cost increases and supply chain disruptions will continue through 2022, which may put pressure on adjusted EBITDA. Finally, for Q1 2022, the company incurred a net loss of CAD 1.6 million compared to a net loss of CAD 1.9 million in Q1 2021. In addition to factors already outlined above when I spoke to adjusted EBITDA, the decrease in net loss in Q1 2022 was driven by the overall increase in gross profit after the deduction of fulfillment and SG&A expenses. This is more than off. This more than offset the increase in other expenses, primarily share-based comp and depreciation and amortization. Turning to the balance sheet, we ended the quarter with CAD 12.4 million in cash. On May 17, we announced a CAD 6 million private placement offering of special warrants. The offering was funded by strategic investors who are existing shareholders of good natured Products and are well aligned with our goals and strategic direction. The funds will be used in part to fund the acquisition of FormTex Plastics, which was announced on May 4, 2022, and is anticipated to close in early July. On May 19, 2022, the company filed restated audited annual financial statements for the years ended December 31, 2021, and 2020. This was to address a default under our senior credit facility for the period ended December 31, 2021. This has resulted in CAD 37 million of the company's long-term debt being reclassified into current liabilities in Q4 2021, which is also reflected in the Q1 2022 financials. We remain in discussion with our primary lender to remediate the situation. We believe the company has adequate cash and cash equivalents in conjunction with our ability to pursue additional sources of funding to fund our minimum obligations and growth plans. I'll wrap up by encouraging listeners to visit our investor website at investor.goodnaturedproducts.com, where you can download our MD&A for additional commentary on our Q1 2022 financials. I'll now turn the call back over to Spencer. Thanks, Kevin. Operator, could you now please give instructions for the Q&A section? Ladies and gentlemen, we will now begin the question-and-answer session. If you would like to ask a question, please press the star followed by the number one on your telephone keypad. If you would like to withdraw your question, please press the star followed by the number two. One moment, please, for your first question. Your first question comes from Ahmad Shaath of Beacon. Please go ahead. Yeah. Good morning, guys. Congrats on a good quarter. I guess, Paul, maybe if you can go over again the summary of the operations with the new equipment that you guys expecting in Q2 next year. Just help us kinda walk through the timelines of extrusion capacity expansion and the thermoforming and maybe sort of an end of 2022, end of 2023 capacity kind of point in time to help us understand the volume upside potential for in the operations. Yeah. Good morning. Well, as you can see, we've laid kind of the foundation to build our capacity and capability domestically, going into the back end of 2022 and 2023. Now, this first line that we put into our IPF facility is operational and really kinda sets the stage for further growth for our packaging business, along with our industrial, but primarily for our packaging business. That's being complemented with the high-speed robotic thermoforming machine that we're installing here shortly into Shepherd. That really kind of shores up our footprint, integrated footprint here in Canada, which, you know, obviously serves both US customers and Canadian customers. I think that the additional high-speed line that we're putting here at the Ex-Tech facility, which is where I'm having the call from, really sets the stage for our future packaging growth, right? When you complement that with the FormTex acquisition, it really kind of sets the stage for 2023 growth, 'cause we continue to see, you know, Ahmad, you know, kind of robust demand here domestically, you know, whether it's a demand for more earth-friendly products or the demand from the reshoring. These investment cycles are longer now, you know, because of the supply chain. I think we've been, you know, pretty good at anticipating these lengths of time of getting this equipment in place. You know, I think the new extrusion line just sets the stage for, you know, for that future support for FormTex and potentially future acquisitions. Now, I will also say the high-speed lines produce more per hour. We kind of mentioned these high-speed lines and where our average extrusion outputs around 800 lbs per hour. You know, if we're producing per labor hour, you know, 800 lbs, and we can move that up into, you know, 1,800 lbs on average across our production, it just gains efficiency, right? It won't 100% replace the inflationary costs that we've taken on, however, or future inflationary costs. However, it does help improve our productivity, gain leverage in our operating costs, make us more competitive. This is, you know, as much as this is about supporting our growth, our future growth, it's also designed to improve our productivity levels. You can see we've gained some operating leverage here in Q1. Our goal is, you know, moving forward, as we continue to focus as a growth company, driving our growth and having that capability, we also wanna drive productivity, which is represented in our EBITDA performance in Q1. That's great. You touched on it a little bit, but maybe give us an idea of where you think you can take FormTex in terms of growth and operation and volume. This is our first opportunity to hear from you on that acquisition. Any upside potential there will be great to understand. Yeah, we're super excited about this acquisition because first of all, we're gaining some fantastic people. They've been in the industry for many years. So we're gaining a real strong competency in the South, right? In Texas, that can serve not just the South, but also the, you know, southeastern states, the Carolinas, Georgia, Florida. These are all big economic states that, you know, by localizing our manufacturing to serve customers in that geography, it also gains leverage, like operating leverage in our logistics costs. The facility is not at full capacity, so we believe with the expertise of that team along with the location and our, you know, our strength in attracting and acquiring customers, which is, you know, I think it's a fantastic milestone of 1,200 customers. I think it's a good combination to take advantage of these macro trends that we've highlighted. I, you know, kind of look at FormTex. Characteristically they're very similar to Shepherd. As you know, I believe Shepherd, when we announced that, was doing around CAD 5 million, and FormTex is a little bit bigger than that. You know, obviously we've more than doubled, you know, the business out of Shepherd and we believe we can do the same thing. I will tell you that team is pretty fired up because they see the synergies of joining the good natured family and the customers that we can introduce into that operating skill set. There's lots of upside there, whether it's operational leverage by moving current customers down to that geography and cutting, you know, reducing our logistics costs by while improving our service levels to the customers or just by introducing net new customers into that capacity. We feel there's a lot of upside in mode. This is a really good fit for us and really sets the stage for us in our growth going forward. That's great, Paul. I appreciate the color. I'll jump back with you. Congrats, you got a good quarter. Thank you. Your next question comes from Michael Robertson of National Bank Financial. Please go ahead. Hey, good morning, all, and congrats on the solid quarter. I was just hoping if you could clarify maybe the timing of the install at Shepherd. I assume there'll be a bit of downtime associated with that install. I was just looking to see if it was maybe like a Q2 or a Q3 event. Yeah, I would say it's a Q3 event. You know, we pretty much have set the stage in the facility. They've set the stage to receive the piece, the new thermoform robotic machine. You know, we'll obviously, Michael, update as things progress, but we're really looking at a Q3 installation and getting it up and operating. Got it. I just wanted to follow up, maybe a question for Kevin, regarding the fixed charge coverage ratio. You know, coming off a strong Q1, you know, looking at your trailing twelve month EBIT and now being positive, just wondering sort of, if that's given you any sort of, you know, leeway moving forward and maybe how you see the sort of options there, as we progress through that? I'm sorry, I can't, I didn't catch that very well. My phone was breaking up for a second there. Yeah. Just wanted to follow up on the fixed charge covenant ratio. You know, coming off a strong Q1, looking at your trailing twelve month EBITDA now being positive. Was just wondering how you see the sort of options available to you at this point, moving forward in those discussions. Well, Paul can elaborate further, but the conversations we're having with National Bank Financial are still ongoing, so I don't wanna lead on in any fashion. Certainly the FCCR has improved with the strong quarter that we've just had. Paul, do you wanna add any other color? Yeah, I mean, I would just add some color that, you know, although, you know, we believe that, you know, this matter wasn't related to interpretation of the FCCR. I mean, you know, we've accepted the interpretation of National Bank Financial and we're, you know, really engaged with them. We're having real productive conversations and, you know, National Bank Financial has, you know, clearly communicated to us and Don Holmstrom, our EVP of our banking relationships, that, you know, they want to find a path forward to remediate the default. We're confident that those discussions will continue to be productive. You know, I think what's really important, I think you highlighted this, Michael, and for all the folks on the call, all of our owners listening in and folks that will listen to the recording later, is we're very bankable. Like, we had a great quarter, record revenue, strong EBITDA, along with, you know, we had just under CAD 100 million in assets. So, we feel like, you know, the company's very vibrant. We've got 1,200 customers, we're recurring revenues. So we really feel that, you know, remediating this with National, based on our discussions is, you know, looks like it's going well. I think it's very important to highlight that we're a very bankable company. Got it. That's helpful color, Paul, appreciate that. Maybe just to follow up. Do you have a sort of ballpark expected timing of getting to a resolution? Like do you think that would be a you know a June event or maybe pushing further into the summer? You know, I can't speak to, you know, specific timelines. We'll definitely, you know, share that as it, you know, kinda unfolds. I will say that it's, you know, we've got a really good open communication and those discussions are continuing and as those timelines kinda unfold, we'll definitely let everyone know. Got it. I appreciate that. Again, congrats on a solid quarter and I'll turn it back to you. Appreciate it. Your next question comes from Steve Hansen of Raymond James. Please go ahead. Yeah. Good morning, guys. Hey, good morning, Steve. Oh, did we lose you? We seem to have lost our previous questioner. Your next question comes from Yuri Lynk of Canaccord. Please go ahead. Hey, good morning, guys. Good morning. Morning. Paul, maybe just update us on the pricing of your plant-based offering versus- Mm-hmm. The petroleum equivalence. I know lots changed in terms of feedstock costs, so just wondering where if there's any cost advantage with the plant stuff now. Yeah, I would say all materials, you know, are faced with some of the very similar inflationary pressures, right? Whether it's in supply chain disruptions, whether it's containers, whether it's ocean freight, whether it's costs or whether it's port of entry logistics. Our ratios are not really that dissimilar to where they were, you know, prior to this. In some cases, depending on, you know, the product and the customer and the mix of materials, you know, it's actually at an advantage. I think the biggest priority for our customers particularly is just helping them through this disruption. You know, some of our clients are having, you know, a record year and, you know, stabilizing their supply chain is critical. As I mentioned earlier on the call, Yuri, like, we're winning over business from existing customers 'cause, you know, obviously we don't have 100% of their spend. But as they're faced with other suppliers not fulfilling their needs, they're turning to us on helping them out. In some cases we're, you know, winning that business permanently. In some cases it's just spot to fulfill, 'cause they're contracted with their with one of our competitors. But we look at this opportunity of servicing them as a continued advantage to continue to drive our growth. Now, Yuri, just as I know you know kind of highlight that material doesn't represent 100% of our costs, and nor does virgin material represent 100% of our material mix. Like, we use the highest level of recycled content in all the products we make, and that obviously, you know, is a lower cost than virgin material. We control that mix rate. We can, you know, make that 50% of the material being recycled content, 100%, 30%, 20%, just depends on the actual program. We're you know, when you assess us, don't assess us purely off of virgin pellet pricing because it's just a small component of our half. You know, could be up to half of our material input costs. Right. I think in your prepared remarks, you mentioned that the conversion of some legacy petroleum customers might take a little bit longer. Can you just expand on that a little bit in terms of the reasons behind it? Yeah. When you look at IPF and Ex-Tech, we're definitely the conversion process we've communicated is roughly 18 months, and for those two acquisitions it's gonna take longer than 18 months for a couple of the following reasons. One is just the supply chain, port of entry delays and lead times have been stretched out. Two is we're directing our inventory levels towards our packaging business and the upcoming FormTex acquisition. And third is our business is booming, right? We bought in a bunch of forward-looking inventory in anticipation of cost increase and we definitely reap the benefits of that in Q4 and in Q1 without a doubt. Because we're, you know, we're delivering great service and, you know, there's always room for improvement, and I always say, we've minimized the disruption to our customers. The team's done an incredible job, and that's picking up more business and pulling more from our inventory levels. I think those will be our kind of our continued impact to the timing of that conversion. We're still committed to it. We're confident we can do it and getting that capacity converted. You know, for us, it's just sequencing these variables to kind of determine the length of time of getting those two facilities converted. Okay. Just a clarification on FormTex. Is that closing today, or is it contingent on the financing closing? Yeah. We're looking to close the transaction, I would say, you know, July first. You know, we wanted to close the transaction, the funding which we've announced, and that funding will be used to close it. I would say, you know, in July. It's kind of what we're anticipating to close the FormTex transaction. Okay. Just so I understand, you've got a little over CAD 25 million of total liquidity at the end of March, you know, the cash plus what's on the line. Just why not put the acquisition on your lines and not go to the market at, you know, CAD 0.40, which is a pretty low valuation, right, given where the stock was previously and where it trades in relation to kind of traditional packaging companies. I'm just a bit surprised that, you know, you'd issue a little bit of equity at that level. Yeah. I would say. Thanks for pointing out the operating line. The operating line, we still have access to it, which is, you know, that is a revolving line that can be used only for working capital. You know, we have roughly, ballpark about, you know, CAD 3.5 million available to us. You know, that line is not dedicated under our agreement for acquisitions. We kind of look at the raise as, you know, it's a small raise, it's very targeted, and we think the opportunity long term for us is to acquire FormTex. We think long-term wise for our growth, it's the right thing to do, and I think we'll look back at that transaction as being one of the underpinnings to our performance in 2023. I think sometimes we can't control the market, but I think long-term value that we'll create by completing the FormTex acquisition for our owners will be the right thing, long term. Yep. I get it. Okay. Very good. Thanks for taking my questions. Your next question comes from Steve Hansen of Raymond James. Please go ahead. Hey, guys. I'll try this one more time. Hey, Steve. I could hear you. That was the weird thing. In any case, Paul, yeah, I think as I mentioned, the margin performance has been encouraging of late, or I think in your prepared remarks you did reference the potential for ongoing pressures to eat back into recent gains. Just trying to sort of feel how you know, get a sense for how you feel about the back half of the year from an EBITDA generation standpoint and potentially the ability to layer on price increases to offset further pressures that you might see. Yeah. I mean, that's a great question, Steve. I think, you know, first and foremost, you know, we look at our EBITDA performance on an annual basis. Some quarters are gonna be really good, and some quarters the next quarter could be better or could be slightly, you know, down from the first quarter. We're aiming for an annual performance. I think we demonstrated that last year, right? Where we, you know, swung to had a really strong finish to the year, and I think that's the way we operate the business. Now, the team's killing it. Like, they're doing a phenomenal job. I mean, this is a very challenging operating environment. It's really important that we manage expectations that, you know, we wanna gain productivity in the business, and we've demonstrated that. There's multiple levers that we can pull to gain that operating leverage and productivity. The investments, high-speed machines, we're getting them up and running. That's more output per labor dollar. Even though labor rates are going up, we're still putting out more on a per hour basis. We need to continue to drive our growth strategy. You know, sales creates leverage. Then we have to continue to fight and plan and execute this, the supply chain. You know, we really benefited in our execution of that in Q4 and Q1. You know, we've laid out a pretty solid plan for the remaining part of the year in supply chain. But you know what? There is always unknowns, right? We just, you know, want to make sure that we, you know, manage our owners' expectations. But I will say the demand side is very strong, as we've announced, you know, shared a couple of our customers are, you know, so we. Yeah, for us, it's about fulfilling that demand and capturing that demand. I think, you know, going back, you know, tying it back to your, you know, comment, I think FormTex really opens up our ability to capture additional revenue in the packaging business, which is really important for us to diversify. There's better available margins. There's better cross-selling opportunities. We can leverage into our investments in robotic and high-speed equipment. We can leverage into our extrusion capabilities. I think we have some really exciting pieces coming together that puts us in a pretty good position now. Can I give you exact guidance? You know, Steve, I can't. I can tell you this much is we're off to a great start this year, and we've made some investments, and market is really showing strong demand. For us, it's just continuing to execute and deliver, you know, within this challenging operating environment. I'm confident we can, and we have, frankly. I think the last two quarters, we can honestly say have been the most dynamic, and I think the team's slowly getting their hands wrapped around these operating conditions. Okay. No, that's helpful. Just wanted to circle back to the installation that was referenced earlier, understanding it's the third quarter. You know, how long do you think it takes to ramp that up and fill that capacity, as you sort of look forward into your order book? Well, I would say we've never been more busier in the history of the company. I know a lot of owners are probably smiling 'cause I've said that probably the last five years. But I have to tell you, all our leading indicators, whether it's inbound, the calls, our lead generation is very strong. I think this whole North American reshoring manufacturing of products is, it's real, and we're gonna benefit from it. And when people reshore their you know, their products and open up packaging opportunity, they have an opportunity to reset their packaging, and that opens up, you know, the entry into our plant-based options. You know, filling that line for us, I think, you know, we will not have a problem with that. Timing-wise, you know, I can't really speak to specifics other than what I've highlighted. Like, Steve, demand is really strong and, you know, it's just, it's in our hands to capture it, right? I think these new investments open that up, that opportunity for us to capture more business. No, that's fair. And just one last one, Paul. It's just around broader expense rates and corporate overhead. I mean, is there an opportunity here to take another look at things as you sort of, you know, pull together all your different pieces? I think because we're all aware that the market environment has shifted quite markedly over the last two to three months from a liquidity standpoint. Just trying to get a sense for, you know, is there additional ability to take out costs from the organization while still managing for the growth that you've obviously got ahead? Yeah. You know, I'll kind of frame it as, you know, driving productivity, right? We wanna stay focused on growth, but we wanna also become more productive, right? You know, highlighted the investments, which I won't bring up again, but also leveraging our cost structure, right? If you know, we kind of highlighted our SG&A leverage. You know, if you look at our wages, you know, they're 8% versus 11.3% for the quarter. You know, I just wanna, for the owners listening, like, we are very focused on improving productivity. I think going forward, that's fundamental focus of ours. It always has been, but we've got to gain more leverage, particularly when we're deploying our owners' money into these investments, whether it's acquisitions or whether it's these high-speed lines. We need to gain this operating leverage. Now, we're focused on an annual basis. The short, you know, I guess the short summary is that productivity metric is really key to us, is continued leverage, which we've demonstrated in Q1, and that's a focus of ours. I don't necessarily think it's, Steve, always about taking out costs, although we do look at more, I would call it not straight cost cuts, but I'll give you an example. Like for example, shipping a trailer load of goods, you can't cut that cost because you got to ship it. However, can we increase our shipment sizes per drop? We're working with our customers collectively to say, "Hey, you know what? Instead of shipping you 6 pallets that could cost you CAD 2,800, why don't we ship you 12 pallets that could cost you know, CAD 2,000 or twenty, you know, so or CAD 1,900, and you're getting a lower cost shipping more product. That's an example of us getting better, you know, logistic leverage. I think that's, that, you know, labor and logistics, you know, are two big cost lines. If you look at logistics and fulfillment, you know, you know last quarter, 2021 was 15% of sales. This, you know, Q1 of this year was 9%. You know, that's about improving our turns, shipping more product per stop. Those are productivity metrics that we will gain a lot more to the bottom line, getting better at than, you know, purely straight cost cuts. That's great. Tell her, guys, I appreciate the tempo. Your next question comes from Lisa Springer of Singular Research. Please go ahead. Good morning. Paul, could you? Good morning. Can you comment quickly on the M&A pipeline for the second half of the year? Are you still seeing attractively priced assets out there? Is it likely to continue to be a focus on the U.S. assets? Pipeline is really robust. We are seeing assets pricing for acquisitions increase. I think the reshoring will continue to do that. That's, you know, that's part of our motivation to, you know, complete the FormTex transaction. The pipeline is still very robust. Now, you know, your question on U.S. base, I think for us, we're really concentrating on growing our acquisition side and our packaging, followed by our general merchandise and services. I think the concept of is there any future acquisitions on the industrial side, the answer is no. I think that is more about the high-speed equipment that we've invested in getting, you know, as I mentioned to Steve, a higher level of productivity, higher level of output per, you know, per labor dollar, and then bringing on acquisitions and organic growth in business groups that have a higher variable gross margin. I think that's another way for us to gain leverage. We're building off of our industrial acquisitions. One way we can gain productivity is by growing our packaging business, our service business, which was very strong in Q1, improve our general merchandise business. These categories are more gross margin rich. That creates, you know, better productivity leverage for our business. Okay. Thank you, Paul. That's very helpful. Ladies and gentlemen, there are no further questions. I would like to turn the conference back to your hosts for closing remarks. Thank you, operator. For anyone who didn't have the opportunity to ask a question or wishes to ask a question offline, please send these to invest@goodnaturedproducts.com with your contact details, and we'll respond as soon as possible. Thank you to everyone for joining us, today, and have a great rest of your day. Ladies and gentlemen, this does conclude your conference call for today. 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