Good morning, ladies and gentlemen, and welcome to the good natured Products second quarter 2022 earnings 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 conference you require immediate assistance, please press star zero for the operator. Today's call is being recorded on Tuesday, the 30th of August, 2022. I would now like to turn the conference over to Spencer Churchill, Director of Investor Relations and Corporate Development. Please go ahead, sir. Thank you, operator. Hello, and welcome to good natured Products' conference call regarding our Q2 results that were released earlier this morning. 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 Q2 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 made 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-IFRS financial measures, the definitions for which can be found in our MD&A and press release issued this morning. All financial results discussed on the call are in Canadian dollars, unless otherwise noted. With that said, I'll turn the meeting over to Paul. Thank you, Spencer. Welcome, everyone, and thank you for joining us today. The team delivered a strong quarter with CAD 25.5 million in revenues, which is up over 100% compared to Q2 2021. Our adjusted EBITDA was just over CAD 1 million in Q2 of 2022, compared to a loss of CAD 175,000 in Q2 of 2021. Our second quarter was driven by strong organic growth, increases in average selling price, shipments to the large national U.S. food producer that was announced in October of 2021, and the revenue contribution from the Ex-Tech acquisition completed in May of 2021. Our active B2B customer base at the end of the quarter was over 1,400 customers. I attribute our Q2 performance to our team's ability to overcome challenging operating conditions while never losing sight of serving our customers. We continue to see customer demand for packaging staple goods being very resilient and broader macro tailwinds remain strong, such as demand for sustainable products, increasing regulatory pressures, manufacturing reshoring, and lifting of the COVID-19 pandemic restrictions. In addition, our strategic acquisition of Houston-based FormTex Plastics, announced on May 4, 2022, will further enhance our in-house manufacturing capability to reach key markets in the Southern United States. During the quarter, we were happy to welcome many new customers, one of them being Girl & Dug Farm, a gourmet fresh produce grower who is now using our earth-friendly packaging made from annual renewable plant-based materials. Girl & Dug Farm grows unique fruits and vegetables on their 180-acre farm in San Marcos, California. They ship bespoke produce boxes to some of the best restaurants nationwide, including Michelin-starred restaurants in L.A., San Francisco, Chicago, and New York. Girl & Dug has also expanded their business model to include costum produce boxes for at-home gourmet meals. With the changing landscape of eating trends and growing food security expectations, we work together with our customers to solve for logistic challenges, including designing durable packaging that protects their product and makes it look as appealing as possible. We also recently announced the signing of the largest commercial agreement in the company history, formalizing a three-year deal on July 12th of 2022 with a large national U.S. food producer that was originally announced in October of 2021. We continue to anticipate revenue of approximately $13 million in the first year of the commercial agreement, although revenue may fluctuate on a quarterly basis to match, product seasonality as well as rollout timing of new products to the retail customers. Our variable gross margins for Q2, which is a non-IFRS measure defined in our MD&A and press release, came in at 33%, which was at the upper end of the range we announced in the preliminary results in July. Our variable gross margins for Q2 was also at the upper end of the company's target range, demonstrating our team's ability to continue to execute under challenging and shifting operating conditions due to the macro-economic trends we're all experiencing. Operationally, we continue to focus on productivity, which is evident in a year-over-year reduction of our SG&A to revenue ratio of 8%. We also continue to invest in process efficiency and productivity via high-speed robotic production to support our operational scaling plans and growth. The new high-speed thermoform machine has been delivered and installed at our Brampton manufacturing location, and we maintain our target of full commercial operation for this new line by the end of Q3 of 2022. Our new high-speed sheet extrusion line at our Richmond, Illinois location will be operational in Q4 of 2023. The delay has been primarily driven by the timing associated with the close of our new senior credit facility with Wells Fargo. Turning to the balance sheet. We are extremely pleased to announce the completion of our new senior secured revolving credit facility with Wells Fargo, consisting of a $30 million USD asset-based revolving credit facility with a four-year term and an uncommitted $25 million USD revolving facility available at the discretion of Wells Fargo. The senior credit facility was used to retire CAD 13.7 million of outstanding credit facility debt with National Bank of Canada, and the balance is intended to be used for acquisitions, capital asset additions, working capital, and general corporate purposes. Our partnership with Wells Fargo, one of the largest banks in the United States, is an incredible milestone for the company and speaks to the quality and sustainability of our value proposition. We firmly believe that the company is now in the best position it has ever been to execute on our strategic growth initiatives. In addition, the company closed a CAD 6.6 million mortgage financing with BDC. The mortgage is secured against our Brampton, Ontario, manufacturing location and features a principal amount of CAD 6.6 million amortized over a 25-year period with monthly interest rate and principal repayments. BDC has made an additional CAD 3.9 million available as funding towards future capital projects. Proceeds from BDC mortgage financing was used to retire CAD 6.6 million of the outstanding non-revolving term credit facility with National Bank of Canada that was secured by a first mortgage against the same location. As I noted previously, consumer demand for packaging staple goods continues to be resilient. However, we do note that spending habits could shift as macroeconomic conditions show signs of further deterioration. We are fortunate in our strategic market position in the food and staple goods industry supply chain, and our capacity has been strengthened by our recent acquisition of FormTex to expand our in-house manufacturing capability to reach key markets in Southern U.S. We believe our market position should enable us to capture end market demand, even if consumer spending habits shift away from discretionary items in the coming quarters. We closely monitor and collaborate with customers and suppliers on supply chain activities, which we believe has been showing signs of improvement compared to 2020 and 2021. Inflationary cost pressures throughout our supply chain are anticipated to continue in Q3. However, we have had indications that some costs and availability pressures may begin to abate in late Q3 and early Q4. If inflation pressures begin to abate, we anticipate this could lead to lower average selling prices for our products. We are maintaining our target range of variable gross margins of 28%-35% and gross margins of 21%-28%, while seeking to increase the mix of revenue from our packaging business group through acquisitions such as FormTex inorganic growth initiatives. Finally, I want to thank our team members, customers and partners that helped us deliver another solid quarter of growth and positive Adjusted EBITDA. The company now has a solid foundation of capabilities, distribution, and customer mix that is reflected in our trailing twelve months revenue of over CAD 90 million and trailing twelve-month Adjusted EBITDA of over CAD 2 million. The investment we've made in the business, as well as strategic acquisitions, continue to enhance our productivity and position us to execute on our strategic plan. With that, I will hand it over to Kevin Leong, CFO of good natured Products, to talk through the Q2 financial results in more detail. Over to you, Kevin. Thank you, Paul, and hello, everyone. Revenue for Q2 2022 increased 106% to CAD 25.5 million, compared to CAD 12.4 million for three months ended June 30, 2021, based on the growth factors that Paul spoke to earlier. In terms of business mix for Q2 2022, the industrial business group contributed 78% of total revenue, compared to 76% for Q2 2021 and 73% for Q1 2022. The increase in revenue from the industrial business group in Q2 2022, as compared to Q2 2021, was driven by the completion of the Ex-Tech acquisition in May 2021 and an increase in average selling price for the company's industrial products. The increase in industrial business group revenue mix as compared to Q1 2022 was driven by an increase in average selling price and volumes. The packaging business group represented 19% of total revenue for Q2 2022, compared to 21% in Q2 2021 and 24% in Q1 2022. The increase in packaging revenue compared to Q2 2021 was driven by the addition of new customers, an increase in average selling price, and the addition of a national U.S. food producer announced in October 2021. The decrease in packaging business group revenue mix compared to Q1 2022 was caused by order shipment timing to various new and existing customers that are both regional and national in scale. Our focus remains on increasing the contribution from our packaging business group through strategic acquisitions and our organic growth initiatives, in addition to increasing the revenue contributions from other business groups, including general merchandise, services, and commercial and business supplies. My final comment on revenues is on our customer mix. The top four customers in Q2 2022 represented 27% of total revenues, compared to 31% in Q2 2021 and 31% in Q1 2022. Revenue contributions from the top four customers in Q2 2022 decreased from Q2 2021 due to increasingly diversified revenue contribution from the company's expanding active customer base. Variable gross margin, a non-IFRS measure defined in our MD&A and press release for Q2 2022 was 33.1% compared to 34.7% for Q2 2021. Some of the factors that influenced the year-over-year decline include a 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, and also external supply chain and inflationary cost increases, which intensified in the second half of fiscal year 2021 and continued through the first half of this year. The company is adjusting product pricing to offset cost increases, but with a lag effect over certain periods. Gross margin for Q2 2022 was 26.4% compared to 28.3% for Q2 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 4.6 million was up 46% compared to Q2 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 percent of our revenue for Q2 2022 declined to 18% compared to 26% for Q2 2021, demonstrating positive operating leverage, which has led to the improvement in adjusted EBITDA and net income that I will speak to now. Adjusted EBITDA, a non-IFRS measure defined in our MD&A press release for Q2 2022, was CAD 1 million compared to a loss of CAD 175,000 for Q2 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 3.9% from -1.4% in Q2 2021 as we delivered the positive operating leverage noted earlier. Finally, for Q2 2022, the company incurred a net loss of CAD 3 million compared to a net loss of CAD 3.7 million in Q2 2021. The decrease in net loss was primarily due to the factors already outlined above when I spoke to Adjusted EBITDA. Turning to our balance sheet, we ended the quarter with CAD 16.7 million in cash, which includes the net proceeds from the private placement offering of special warrants. Subsequent to the quarter end, the funds from that private placement were used to close the acquisition of FormTex Plastics, which was announced on July 4. On June 29, we entered into a 60-day extension agreement with National Bank, which enabled the company to complete negotiations and due diligence with Wells Fargo and BDC and execute a new financing agreement with these parties that was announced on August 26. All outstanding indebtedness to National Bank was paid off in full, concurrent with the close of the Wells Fargo and BDC financing transaction. We ended the quarter with CAD 98.3 million in assets against CAD 73.4 million in liabilities, which equates to an asset to liabilities ratio of 1.34 times compared to 1.30 as on December 31, 2021. Net working capital at quarter end was a CAD 12.7 million deficit, which reflects the reclassification of CAD 38 million in long-term debt into current liabilities due to the FCCR breach under our prior senior credit facility with National Bank. However, as I noted earlier, all outstanding indebtedness to National Bank has since been paid off in full. I'll wrap up by encouraging listeners to visit our investor website at investor.good natured Products.com, where you can download our MD&A for additional commentary on our Q2 2022 financials. I'll now turn the call back over to Spencer. Thanks, Ken. Operator, could you now please give instructions for the Q&A section? Thank you, sir. Ladies and gentlemen, we will now begin the question-and-answer session. If you would like to ask a question, please press star followed by the number one on your telephone keypad. If you would like to withdraw your question, please press star followed by the number two. Once again, please press star one now if you would like to ask a question. Your first question comes from Michael Robertson of National Bank. Please go ahead. My apologies. I'm not sure what happened. This question is coming from Ahmad Shah of Beacon Securities. Please go ahead. Hi, Paul, and team. Congrats on that one. First question would be around your commentary regarding the inflation abating towards the second half of the year. Maybe help us understand if it's gonna have a meaningful impact on margins. I mean, these are the strongest margins we have seen. Since the last 12 months pretty much, which we're happy to see. Maybe help us understand if the worst looks like the worst is over. Should we kind of target something towards the higher end of the range for the rest of the year? Or how is that in view of what you mentioned about the pricing pressure if inflation kind of comes down a little bit? Yeah. I mean, we're definitely seeing first, good morning, it's good to hear your voice. We are seeing signs of inflation abating and, you know, as early as late Q3. Obviously there's some lag effects just like of those lower costs entering into the supply chain. You know, our operating conditions have changed and have been, you know, always constantly and continuously changing, so we believe this abating inflation will definitely flow through Q4, and then we'll kind of reassess as we have these calls every quarter. I think our biggest opportunity to improve on our variable gross margin or gross margin rate is really our mix of our business. We're really focused on leveraging our strategic acquisitions in the industrial segment. You know, we've expanded the capacity there with the addition of line five, and we really wanna leverage that to support our packaging mix and grow our packaging mix. We think that, you know, whether it's with the acquisition of FormTex, the increased capacity with line five at the Ayr, Ontario facility, we believe we're in the addition of the largest commercial agreement with that U.S. food producer, we've really laid the foundation to grow the overall mix of packaging. That will have, by far, a greater impact on our variable gross margin and gross margin rate in the near term than the abating inflation because it does, there's some timing associated with that entering into the supply chain. Got you. That's great color. On the supply chain front, anything we should be aware of? Any updates on you securing resins and the cost of that, given the recent kind of improvements in logistics wise? Has that kind of side of the equation improved for you guys? Any strategic moves that you would like to move to conduct there that now are possible that were not possible before? Any color on that side of the equation would be helpful. Yeah. I I mean, we've seen a tremendous reduction in our ocean freight costs, but we're still seeing some challenges through port of entry. It's very interesting in looking at, you know, inflationary rates across different cost structures. You know, we've seen some decreases and some we continue to see increases. The market's a bit all over the place. But we do believe, you know, we're seeing signs of improvement in the supply chain, although some of the input costs are kind of some are up, some are down, some are showing a trend down, some are showing flat, some are showing trends up. I think the marketplace is trying to adjust to this inflation showing signs of abating. One thing I will reassure to all of our owners, you know, listening in, and potential owners, is that the team's really engaged in the market and we've done a good job on anticipating the inflation. We're also doing constant collaboration with our customers and our suppliers to ensure that, you know, we remain engaged in anticipation of what adjustments may take in the supply chain. I think the headlines would be, we're showing signs of improvement. Input costs are varying in their behaviors. And we are seeing this, you know, abating in inflation. Whether that continues on. You know, we believe it'll carry forward to next year, but I think we're just gonna update everyone on a quarterly basis, just because, you know, things are changing pretty continuously. That's great. I think if I could just add to Ahmad Shah, I think you hit it on the head, like this is a really great quarter from a margin perspective along with strong revenue growth. I think it just amplifies. I wanna recognize the team across the U.S. and Canada and our partners for, you know, the great job they're doing in executing and serving our customers while, you know, controlling costs and making sure that our service levels are really strong. I think overall the team did a really strong job in Q2. It's really impressive, quite humbling. That's great. I appreciate that call, Paul. Maybe on the refinancing transaction, I noticed it, you know, it allows good flexibility on the use of proceeds and there is good room for additional liquidity. Maybe walk us through the potential of additional liquidity and what room you can have on the use case for this additional liquidity, whether it's capital projects or acquisitions or any other areas that you can use that additional liquidity for to support additional growth. Yeah, I mean, well, very first, it's super exciting to bring one of the largest U.S. banks as part of our capital partners. Wells Fargo is a tremendous organization that, you know, clearly through their due diligence, has seen the opportunity for good natured Products and the potential, whether it's our strategic plan or our execution or, you know, the future growth that the company has in front of it. I think the way we've constructed the financial structure with Wells really gives us that flexibility to, you know, continue to execute our strategic growth plan. Also we've got a partner that can size up our strategy, you know, so as we grow and execute that liquidity can grow with us. They're really committed to the sustainability space. They're, you know, this team is very close to the consumer market and consumer goods and the packaging industry. We think this is a huge addition to support our strategic growth plan. I think now we set the stage with this structure. You know, obviously, constructing a four-year term, they understand that, you know, we're a growth company and they understand our ambitions. We believe they'll not only give us these, you know, the credit facility they've given us, but we believe there's a lot of value add that they also will bring beyond just this initial credit facility structure. We're very much excited about it, and we're excited to put that facility to work on behalf of our owners. That's great. One last one for me on the revenue mix that you alluded to on growth in packaging, that you have the platform right now to pursue additional growth in packaging. From an accounts perspective, any other opportunities similar to the U.S.-based food retailer of that size that you feel comfortable now entertaining? Or are you kind of comfortable with the level of national accounts as a percentage of your revenue, and you're more happy to pursue more of a higher margin regional and local accounts as you grow the percentage of the packaging business over the next 12 months? I mean, our model centers on, you know, you understand it very well, is centered on the more diverse customers we put. The more product mix we put in the model, the stronger the business model becomes as a competitor in the market, but also the stronger it becomes to serve our customers' needs. You know, we are definitely in the position where we can take on additional national customers. We're, you know, as we mentioned on our prepared remarks, that we've got our high-speed robotic thermoforming equipment should be operational by the end of Q3. That's going to give us additional capacity. We've also acquired, you know, FormTex, which, you know, this is a big Houston facility. They're just tremendous group of people. I can just continue to be impressed with that group and leadership there, the team of leaders there. You know, we've set the stage for capacity in the packaging space. We've set the stage for our extrusion capability. Now we've got to get to work. Now I want to balance that by saying our sweet spot is regional enterprise. But we definitely have the ability to serve a wide range of customers, including additional national accounts. That's great, Paul. I appreciate it, Paul. Congrats again on the great quarter, and I'll jump back in the queue. Thank you. Your next question comes from Michael Robertson of National Bank. Please go ahead. Hey, good morning, Paul, Ken, and Spencer. Good morning. Congrats on a solid quarter, and thanks for taking my question. Maybe just a follow-up to some of Ahmad's questions there. When you speak to wanting to increase the proportion of the overall top line, a rough ballpark target in mind, you know, in terms of what you'd like to see there. You know, what sort of margin lift would you expect from, you know, transitioning the business towards those higher margin opportunities? Yeah, I mean, right now, you know, finishing up the first half of the year, you know, we're obviously, you know, very much over-indexing to our industrial segment. I just want to be really clear, like industrial segment's a very important business to us. We want to serve those customers. We've got a great set of customers. We're very interested to continue to grow that. However, we need to balance that mix. You know, the packaging business group has a lot of what we call departments from food services to food custom. We sell it to the national U.S. food producer. We sell it to small businesses. So we definitely want to, you know, increase it significantly. The margins there are much better. I don't want to speak to, you know, specifics 'cause it's on the margin rate, because it depends on the type of customers we mix into that revenue. Even with the addition of Houston and the addition of the U.S. food producer, you should start to see that mix change pretty significantly going into Q3 and back half of this year. You know, I'd like Michael Robertson to kind of speak to the actual results when they roll out, but I can give you and, you know, all the listeners here that we're really motivated to grow that business group. We've set the stage. We're also very motivated to grow our services and our general merchandise business. You know, we've set the stage for that momentum, and I'm confident you'll see that going into Q3 and Q4 results. Got it. That mix will definitely shift. Appreciate the color there, Paul. Maybe just a different way of coming at it, you know, longer term. Would you like to see, you know, the packaging segment as roughly an equal contributor as the industrial? Well, I think, you know, I think that expectation, you know, not to give any guidance, but, you know, I would look at packaging as one of our primary businesses along with general merchandise. We want it to be a larger rate packaging business than industrial. Now, the timing of that is all related to, you know, strategic execution and operational execution. You know, the addition of the Houston-based FormTex acquisition will help with that. The US national food producer will help with that. But But there's many other that we haven't disclosed. We wanna make sure we continue to mix in a wide range of customers in the packaging to drive that higher mix. Ultimately, Michael, our expectation is it should be higher. It's just a matter of an industrial. It's just a matter of sequencing our execution both strategically and operationally. I believe we anticipate that in Q3 you'll start to see, in Q4 you'll start to see that shift take place. Got it. Yeah, I appreciate there's a lot of moving parts there, so appreciate the color. Congrats again on a solid quarter. I'll turn it back. Thank you. Your next question comes from Yuri Lynk of Canaccord. Please go ahead. Good morning. Good morning. SG&A, mentioned in the prepared remarks, dropped quite a bit, as you noted, as a percentage of sales. Very nice to see the operating leverage pulling through like that. Wondering if we can expect that to continue or, I mean, you've given us some margin targets. Is there an SG&A to revenue target that you'd like to share with us? Yeah, Yuri, I don't want to give any guidance on the targets, but I will, you know, kind of reinforce, you know, we've been pretty consistent in our prepared remarks around productivity. Productivity gains or cost leverage, as you referenced, is really, really important to us. You know, this is, you know, whether it's improving our productivity on the wage side or whether it's us doing better cost controls or whether it's us, you know, managing, you know, putting better process and on the way we, you know, organize and execute our fulfillment strategy. Like, there's just lots of room in our minds for this productivity improvement to take place. I think this focus on productivity gains will remain intact as a core initiative of ours, not only through Q3 and Q4, but going into the following year. We believe there's gains to be made. Our focus is, you know, very, very feverish on improving these gains across all facilities, all, you know, fulfillment centers, all of our corporate centers. Like, we're all very much focused on, you know, finding ways to do things more efficiently. Okay, understood. To the variable gross margin, I mean, you were right at the upper end of your target range, which is great. Now you're targeting, you know, to grow the packaging segment. That was to happen all else equal. Wouldn't this take your gross margin above the upper end of the range? Well, it all depends on the mix of customers, right? The type of products. Like even inside packaging, we have departments that have different, you know, margin ranges. You know, whether you look at food service or roll stock packaging, custom packaging, medical packaging, they all have different rates. Collectively, they're better rates than the industrial group. If you're delivering, you know, well north of 70% of your revenue mix through the industrial segment, I just want to reemphasize the industrial segment continues to be very important to us, but as we shift that revenue and add incremental revenue to the packaging group, it will mix in a different margin rate. It's hard to, you know, until those customer revenues come in, it's hard to kind of speak to specifics. The generalities of it mixing in higher revenues, as we grow the packaging business group is the correct analysis. Our packaging business does have higher margin rates, so variable gross margin rates and gross margin rates than industrial. As we continue to show that and demonstrate that growth, it should carry over into our mixed margin strategy that we've discussed for forever. Okay. I just have two questions on the new credit facility. Sure. Can you help me with the interest rate that I should be putting in my model? Can you share any of the debt covenants? You know, I would just say maybe we should take that offline with Spencer. We can give you. I think we're getting ready to post some of the details on that agreement in the next filing in the next seven-10 days. I think once we get that filed, we're happy to share some of that detail. Okay. Thanks very much. Your next question comes from Ben Jekic of PI Financial. Please go ahead. Hey, good morning, guys. Craig-Hallum on it. Morning. I think my first question will be pretty much the same as Yuri's. Maybe I'll ask it a bit differently, but when I look at your SG&A, you've been driving pretty strong to the hoop with sales as they are. Year-over-year, I think SG&A is up 45%, sales 100%. If you're going towards more packaging sales, like are you okay in terms of the makeup of the sort of profile of your salespeople and sort of talent access to potential customers? Or is there some adjustments to be made there as well? Well, I mean, I think first, yeah, I think the analogy of hard to the net on productivity is a great headline for all of our listeners to capture. Like, we, you know, we've made some great progress in that productivity. We're gonna continue to make, you know, our focus is to continue to make those productivity gains. I just want to be really clear, these productivity gains, you know, sometimes people think it's just cost reduction, but it's actually, I'll use just kind of one, you know, kind of straightforward example, which is, you know, if we can ship more product to our customers per drop, that lowers their cost and lowers our cost. So, you know, we're collaborating with our customers to say, "Hey, can you take an extra three pallets? Can you take a full truckload? That allows us to gain on that, you know, productivity because we're shipping more per dollar cost for those ship goods, as an example. As it relates to the packaging business, we have a great group of people in our business development organization and also in our marketing team. You know, we're getting a lot more. So we have the talents in place. I think there's room for us to improve in our processes, like, you know, how we generate leads. You know, we're getting. We're very data-oriented. We're getting a higher level of customer profile to go after, you know, what customers have a higher tendency to purchase our products, which customers have a longer sales cycle, which ones have a short sales cycle. As we continue to add more customers into the database and drive that learning, you know, that'll just build more efficiencies and productivity in the way we identify customers, activate them, engage with them, and close them. I think we've got the team in place. There's you know obviously as we grow or you know do acquisitions, we you know for example David down in Houston, like he's a tremendous addition to the BD team, business development team, and yeah he's gonna add tremendous value. We you know as we acquire organizations, we bring in some great people to add to our BD team, but we're also you know we grow organically. Obviously we're gonna need to you know bring in some new folks to support our growth you know moving forward. Right. Okay. My second question is more- Sure. Sort of modeling. You've had a positive contribution from working capital management in the first quarter and that sort of pulled back in the second quarter. Is there any seasonality in terms of like quarter to quarter associated with working capital? How should I look at that? Kevin, do you wanna take that question? With respect to that, let me see. Seasonality, there is not that much that I've seen over the years with the company. The working capital is frankly more changing as we've been growing and optimizing, so we'll spike up and then supply chain differences. We ramped up as a consequence of the ongoing changes in the market in anticipation of potential shortfalls and securing it. Once we've got a more stable information, we managed it back down to get to more optimized levels. The larger changes you've seen are more in reaction to macro changes. On an ongoing operational basis, we would tend to be more stable. For example, just to add. Yeah, to add a little bit of color, Ben, to that is, you know, as we anticipate inflation to hit, which, you know, we were I think one of the early voices out there, we went out and built up our inventories in advance. I now look back and would say we probably should have built up more. As we see this abating, we're managing our inventory levels with a little bit more precision. We're reducing them because obviously we wanna make sure that, you know, we're cycling out of our higher input costs. Those will, you know, as Kevin said, like it's more tied to our supply chain execution than anything else. Okay. Thank you. Your last question comes from Steve Hansen of Raymond James. Please go ahead. Yeah. Good morning, guys. Apologies if I missed it, but if I'm thinking back to the last quarter, Paul, I think you had suggested your margin had some incremental benefit from some wise strategic purchasing on the material feedstock side, earlier or late last year and earlier this year. We continue to see, to some of the earlier questions, margins continue to show strength. Just curious, maybe can you give us an update on sort of where you stand from that material standpoint and how we should expect that to impact margins going forward, if at all? Thanks. Yeah. Well, when you look at our COGS, right, there's, you know, materials obviously a big component of it. You know, our teams work very hard to work with our partners, our suppliers to optimize our supply chain from a timing perspective, from a purchase perspective. Whether it was through inflation climbing or whether it was through this abating that we're seeing, that behavior inside the company will continue. You have to also remember that our COGS are beyond materials, right? Our ability to produce our products more efficiently to manage input costs, whether it's corrugate or pallets or cores. Like, you know, one of our big initiatives is not only from a cost perspective, but from a better for the planet perspective. You know, our desire to recycle and reuse our cores that we use as an input in producing our industrial roll stock, whether it's the roll stock we use for packaging, whether it's the roll stock we sell to third parties. Like we collectively, that's an opportunity to, you know, reduce our input costs versus just going out and buying brand-new cores all the time. These are little things that make a big difference. You know, I know I highlight on press releases and prepared remarks about the team, and the team deserves all the credit. Like they're, they'll be the first to say there's lots of room to improve. You know, I'd be the first to say they've done a lot of great things to control input costs outside of. I measure it as productivity gains on these input costs through better buying, recycling, reusing. That's really, you know, showing up in our variable gross margins. I personally also would add these additions of these high-speed machines will continue to improve our productivity because it yields more material or more units, finished packaging units per labor hour. You know, with the same team, we could do more, and we can serve more customers. I think these are things that this productivity message is really, really important to us because we think there's, and collectively as a group, we believe there's more to gain. I just wanna balance that, there's other things that we're doing outside of materials that are yielding benefit to our variable gross margins. Okay. That's great. Appreciate the color. Thanks. I would now like to turn the conference back to Spencer Churchill for closing remarks. Thank you, operator. 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