Sadot Group, Inc. (NASDAQ:SDOT) Q1 2024 Earnings Conference Call May 16, 2024 4:30 PM ET
Company Participants
Michael Roper - Chief Executive Officer
Jennifer Black - Chief Financial Officer
Conference Call Participants
Aaron Grey - AGP
Thomas Kerr - Zacks
Operator
Welcome to the Sadot Group, Inc. Q1 2024 Earnings Conference Call. Today's call is being recorded and all participants will be in listen-only mode. After management's prepared remarks, we will take questions from selected analysts.
Before we get started, we would like to state that this call may include forward-looking statements pursuant to the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995.
To the extent that the information presented on this call discusses financial projections, information, or expectations about the business plans, results of operations, products, or markets, or otherwise makes statements about future events, such statements may be forward-looking.
Such forward-looking statements can be identified by the use of words such as should, may, intends, anticipates, believes, estimates, projects, forecasts, expects, plans, and proposes. Although management believes that the expectations reflected in these forward-looking statements are based on reasonable assumptions, there are a number of risks and uncertainties that could cause actual results to differ materially from such forward-looking statements.
You are urged to carefully review and consider any cautionary statements and other disclosures, including the statements made under the heading Risk Factors in Sadot Group, Inc.'s most recently filed Form 10-Q and Form 10-K, and elsewhere in documents that Sadot Group, Inc. files from time to time with the SEC.
Forward-looking statements speak only as of the date of the document in which they are contained and Sadot Group, Inc. does not undertake any duty to update any forward-looking statements except as may be required by law.
For this call, all numbers disclosed have been rounded to the closest thousand and percentages have been rounded to the closest percent. Unless otherwise noted and all numbers disclosed in this report are the amounts associated with Sadot Group, Inc. and exclude the portion related to the non-controlling interest.
On this call, we will refer to Sadot Group, Inc. as Sadot Group or the Company.
With me on the call today are Sadot Group, Inc.'s Chief Executive Officer, Michael Roper; and Chief Financial Officer, Jennifer Black. Michael and Jennifer will be presenting prepared remarks related to Sadot Group's financials filed on May 15th, 2024, and those documents may be found on the Company's website, newswire feeds, and on the SEC's website linked from the Sadot Group, Inc.'s website at sadotgroupinc.com under the Investors tab.
At this point, I would like to turn it over to Sadot Group's Michael Roper. Michael?
Michael Roper
Thanks, operator. Good morning, everyone. Thank you for joining us today as we present the results of our first quarter ending March 31, 2024. For the quarter ending March 31, 2024, our net loss improved by approximately $801,000 as compared to Q1 2023.
The Company had Q1 2024 revenues of $108 million, resulting in the net loss of approximately $265,000, a considerable improvement compared to the net loss of approximately $1.1 million for Q1 2023.
In addition, the Company's Q1 2024 EBITDA improved, showing a gain of $458,000, marking a positive shift from a $433,000 EBITDA loss in the first quarter of 2023. Jennifer Black, our CFO, will discuss the financials in further detail here shortly.
Overall market conditions in the agri-commodity sector presented challenges in Q1. One of the largest challenges was China's unexpected absence in the wheat market. As the world's largest buyer of wheat, China's pause on wheat had a material impact on the market. In addition to the China situation, we also saw softness in overall agri-commodity prices combined with expected seasonality factors. Because of these challenges, we did see a reduction in total revenue for Sadot Group in Q1.
Despite the revenue drop through other areas of our business, we were able to improve our net income, improve our EBITDA, increase our total assets, and improve our working capital surplus.
Importantly, we believe the market is showing indications that the headwinds on revenue may begin to subside in Q2 and Q3. As a matter of fact, I am pleased to announce that revenue for the month of April 2024 has already shown improvement, with $56 million in revenue coming in for the agri-foods division.
I am pleased to report that while we worked to manage trading operations through the Q1 headwinds, we made significant progress on five of our strategic initiatives. First, we initiated the process to sell the Sadot Food Services segment. Recently, in Q2, we signed non-binding LOIs for the sale of Pokemoto and SuperFit Foods. Both are in their respective due diligence phases.
The sale of these assets are subject to customary closing conditions and remain subject to the satisfactory completion of due diligence by any buyer, negotiation and resolution of business and legal issues, negotiations and completion of a mutually satisfactory definitive agreements, and corporate approval by the parties. There is no guarantee that these transactions will result in the signing of a definitive agreement or a final sale.
Second, we plan to expand the role of Fausto Plaza, consultant and manager at Sadot Latam, to play a significant role in the overall Company's global trading and farm operations. Fausto brings over two decades of experience in agri-commodity trading and management. Prior to Sadot, he held operational and managerial positions with the global trading powerhouse, Bunge.
Third, we opened a new trading office in Brazil with a team of eight experienced agri-commodity traders, with revenue expected to come online in late Q2. In the short time since establishment, the team has made significant headway in sourcing products from the upcoming harvest and financing from multinational Brazilian banks.
Led by Flavio de Campos and Paulo de Sa, both seasoned executives in international sourcing and trade, we expect the Brazilian subsidiary to substantiate itself in the region and expand Sadot's operations globally.
Fourth, we began actively harvesting and have shipped 1,700 metric tons to date of corn under our agreement with the Food Reserve Agency, which was established by the Republic of Zambia. This agreement aims to support the Zambian government's efforts to safeguard national food security. We expect the majority of the revenue from this agreement to be realized in Q2 and potentially into Q3.
Lastly and importantly, we finalized terms with various institutions, providing us with approximately $27 million in trade financing for Sadot Agri-Foods operations moving forward.
As we discussed in the past, the immediate growth of Sadot Food hinges on access to trade financing capital for our Sadot Agri-Foods operations. The growth of our top-line revenues and bottom-line margins is directly linked to increasing our access to trade financing. I cannot emphasize enough how important these trade financing facilities are to our growth.
Access to such financing will provide us with the flexibility to pursue more agri-commodity trading opportunities, thereby increasing our top-line revenue with the goal of potentially enhancing the Company's margins and net income. We are actively working on obtaining more trade finance lines to further support our growth initiatives.
Now I'd like to turn the call over to our CFO, Jennifer Black, to review more specifics on the financial performance of the Company for the first quarter of 2024. Jennifer?
Jennifer Black
Thank you, Mike. Before I begin, I'd like to note that our financial results for the quarter ending March 31st, 2024, on Form 10-Q, were filed with the SEC yesterday, May 15th, 2024, along with the press release on the same day.
With that, I'd like to give an overview of the financials for the first quarter of 2024. As Mike mentioned in his opening comments, we reported an improvement in the Company's net loss by approximately $801,000 year-over-year.
We reported a net loss of approximately $265,000, an improvement compared to a net loss of approximately $1.1 million for the Q1 of 2023 on revenue of $108 million. This revenue was generated by our two business segments, Sadot Agri-Foods and Sadot Food Services operations.
Additionally, our Q1 2024 EBITDA showed a gain of $458,000, marking a positive shift from a $433,000 EBITDA loss in the first quarter of 2023. Our first business segment is Sadot Agri-Foods. Sadot Agri-Foods contributed $106.5 million in revenue in the first quarter and completed 24 transactions in Q1 from our Sadot LLC and Sadot Latam trading lines. These 24 transactions were completed across 14 different countries.
Sadot Agri-Foods also contains farming operations. The farm is in harvest season with the majority of the revenue from the current harvest expected to be realized in Q2 and potentially into Q3, depending on weather conditions.
We have harvested to date over 1,700 metric tons of corn and 500 metric tons of soy that have been delivered to customers and our contract farmer pilot program is just now starting its first delivery.
Our second business segment is Sadot Food Services operations. As Mike mentioned before, during the first quarter of 2024, the Company began actively marketing the sale of the various food service concepts and identified Sadot Food Services as a disposal group that meets the requirements of ASC 360-10.
Accordingly, it was classified as held for sale in the Company's financials. In Q1, this division's revenue was $1.4 million for the three month ended March 31st, 2024, compared to $2.6 million for the three month ended March 31st, 2023. This decrease was mainly due to the conversion of certain corporate-owned Pokemoto locations to franchise locations to prepare for this divestiture.
Now let me turn to the overall financial picture of Sadot Group. As of March 31st, 2024, the Company had a cash balance of $1.2 million and a working capital surplus of $13.2 million, respectively. This compares to a cash balance of $1.4 million and a working capital surplus of $8.3 million as of December 31st, 2023.
Our current cash balance is in line with our commitment to deploying capital strategically to enhance our financial position and drive sustainable growth. Our total assets in the first quarter grew to $150.5 million from $62.6 million in the same time in 2023. This was due to significant increases in property equipment, other current assets, and our receivables, accounts receivables.
Our total assets did decrease $27.6 million from December 31st, 2023. This is due to the timing of payments on accounts receivable and the corresponding accounts payable related to trade. Stock-based expenses for the three months ended March 31st, 2024, totaled $800,000, compared to $3.4 million for the three months ended March 31st, 2023. The $2.6 million decrease in stock-based expenses is primarily the result of consulting fees due to Aggia for Sadot Agri-Foods segment.
Based on the renegotiated service agreement with Aggia, the consulting fees are calculated at approximately 40% of the net income generated by Sadot Agri-Foods, which is a decrease from the 80% in 2023. This expense is paid in the vesting in restrictive stock that was issued to Aggia in 2023.
As part of the business plan for Sadot Agri-Foods, we also enter into forward purchase and sales agreements. We currently have several forward purchases and sales agreements, one for the carbon credit offset, and in Q4, we entered into two forward sales agreements for soybeans to be delivered in the future. We can enter into forward sales agreements and internally hedge these transactions with the soy grown on the farm.
The mark-to-market gain on these derivative transactions resulted in income of approximately $3.3 million in Q1 of 2024. It is important to note that we have strong revenue streams, have increased our working capital surplus, and we are building our balance sheet, all while making significant strategic changes and achievements for the Company. These developments are fortifying our balance sheet, reflecting the strategic investment we've made to bolster our operations.
With that, I'd like to turn the call back over to Michael Roper.
Michael Roper
Thank you for that financial overview, Jennifer. While we face some challenges and factors beyond our control this quarter, we stayed the course and adhered to our strategic plan for the Company.
With every challenge that we overcome, we believe we solidify our presence in the global markets, and continue building the strong foundation required for our vision, a strong and significant participant in the global agri-commodity supply chain.
We remain dedicated to executing our strategic vision and seizing the opportunities offered by the global food supply chain. Additionally, we are actively exploring options to divest our legacy restaurant brands.
In closing, I want to express my gratitude to all our investors and stakeholders for joining us today and for your continued support. Thank you once again for your trust in Sadot Group, Inc. We look forward to the exciting journey ahead in delivering continued success for our investors, stakeholders, and the communities we serve.
With that, please give us a few moments while we open up the lines for questions.
Operator
Before we get to questions from our selected analysts, the team would like to address some questions which we have received from our stakeholders. Jennifer?
Jennifer Black
Thanks, Operator. We would now like to run through a few questions. The first question is, why did revenue decrease by roughly 50% in Q1 2024 versus Q1 of 2023?
Well, the decrease in this quarter's revenue can be attributed to a strategic transitional effort in our business model. We're limiting ourselves on extending credit to buyers towards a more secure payment structure. This shift resulted in a temporary reduction in sales volume as we adjusted our operations and renegotiated terms with our clients.
While this has impacted our short-term revenue, it has strengthened our financial foundation by reducing credit risk and positioning us for a more stable and predictable growth in the future.
Michael Roper
In addition to that, there were several underlying market factors that had a considerable impact on the quarter's revenue. The most important factor was a considerable decrease in demand from China and a decrease in overall commodity prices. This resulted in less sales and sales at lower prices.
China is the world's largest grain importer and as reported by the US Department of Agriculture in March 2024, 504,000 tons of wheat sales to China have been canceled. To put this in perspective, this figure is equivalent to about half of the total US wheat shipments to China in all of 2022 and marks the largest cancellation on record dating back to 1999.
Our analysis supported by reporting from Nikkei Asia indicates that the significant swing appears to be related to the flooding China experienced last summer, which decreased their domestic production. In response, China secured large-scale contracts for high-quality grains from other countries.
However, it now appears that buyers are trying to avoid fulfilling costly contracts from the previous periods due to domestic supply issues and are instead repurchasing at lower prices, causing a temporary disruption to the normal agri-commodity trading markets. We view this as an anomalous temporary reset of the market, and we anticipate a return to its historical trading patterns will return.
This actually reinforces our strategic vision to expand into additional trading markets and types of commodities, as we've done recently with the formation of our additional global trading entities of Sadot Latam last year, and more recently with the establishment of Sadot Brazil to our existing operations centers of Singapore and Dubai.
Moreover, we remain open and are actively exploring additional expansion opportunities in the future. But I will emphasize one more time, as indicated, Q2, we're already starting to see some increasing revenues, as we reported April revenue to be roughly $56 million, so we're already starting to see a rebound.
Jennifer Black
All right. The second question we have is, why were margins lower than expected and lower than previous quarters and what should we expect margins to be moving forward?
Well, we normally don't provide guidance on future margins due to the volatility in the market. However, trade margins narrowed due to the same market factors previously stated earlier on the call.
As commodity prices dropped, along with the demand from China, it resulted in a margin squeeze. We believe our global expansion and commodity diversification strategy has the potential to create a positive increase on margins going forward.
Michael Roper
Okay. Let me see here. Next question. With the NASDAQ extension, what is the Company's plan on how they are going to raise the share price above $1?
And so, look, we're implementing a multifaceted strategy. First, we're enhancing our operational efficiencies and financial health through the aforementioned strategic shift. Second, we plan to increase our market visibility and investor relation efforts to better communicate our value proposition and future potential.
Additionally, we're exploring strategic partnerships and potential acquisitions that align with our core business, which can drive growth and investor confidence. The Company believes in our business strategy and executing against the strategy is critical in driving results and demonstrating growth.
We also believe that the divestiture of the restaurant services division will be an important driving factor overall, bringing in fresh capital while also reducing corporate overhead. This will allow the Company to focus solely on the agribusiness model and help aid in accurately valuing the Company.
So next question is, how will the restaurant sale impact the Company?
So the restaurant sale is going to mark another significant operational transition towards our focus on the global agri-commodity supply chain, and we're going to be focusing on the supply chain.
Once sold, we will expand our existing teams where necessary, bring in additional key members from the team for various verticals, and as we mentioned earlier, use other tools and methods to reach out to the market to better communicate our value proposition and future potential.
The next question is, what are the -- I'm trying to put them all together, that makes sense here. The next one is, what are the terms of the sale of Pokemoto and SuperFit Foods?
Well, we can't discuss the terms of the non-binding LOIs, right, which are under due diligence process, and there's a lot of phases that still go with that. We believe that the terms received on the non-binding LOIs are in line with our expectations.
So let me jump into the next question. It's regarding farming. Why is the Company doing farming, and what is the strategic advantage, and will there be expansion?
So, our involvement in farming is part of a broader strategy to diversify our revenue streams and leverage synergies within the business operation. Farming offers us a strategic advantage by providing a stable supply of raw materials, reducing dependency on external suppliers, and mitigating supply chain risks.
Furthermore, it aligns with our basket trading approach by enabling us to manage both current and future agricultural contracts more effectively. As for expansion, we see significant potential in scaling our farming operations, especially as we integrate these activities into the mix. This will enhance our overall market presence and create additional growth opportunities.
Jennifer Black
In addition, as mentioned earlier in the call, we have the ability to enter into forward sales agreements using our farm commodities. In Q1, we were able to recognize roughly $3.3 million in income on these forward sales agreements.
This allows the Company to trade year-round with the underlying commodity as a collateral, in case the market turns negative to help insulate us from future market fluctuations. We anticipate adding more farms beyond Zambia to the Company over time as we build this vertical segment. I believe that's all the questions we have prepared.
Operator, I would like to open it up for analyst on the call.
Question-and-Answer Session
Operator
Yes. Thanks, team. I would like to open the call to Aaron Grey with AGP first for questions.
Aaron Grey
Hi. Thanks for the questions. So, first one for me, just on the rebounds in April, $56 million. Can you also speak a little bit just from May month to date? We're about halfway through now. And the makeup of that $56 million, was there any rebound from China within that or is that what you're able to sell, not including any rebound from China? Trying to get a better picture of how we should think of the run rate, whether or not China doesn't come back in terms of their purchasing habits. Thanks.
Michael Roper
Yes. Aaron, I'll start and then Jennifer can chime in here. Let me talk about the China side of the equation, right? We really, for the month of April, right, did not have -- if I'm not mistaken, I don't think we had any trades to China in the month of April. So, everything you're seeing is us moving around to different parts of the world, which is why we expanded into the town and we expanding into Brazil and all that allows us to shift around and do things. Now, you can't just do that instantaneously, like overnight. So, that's why you see it starting to take effect in April as we start moving into those other markets. We think China will start coming back online, here through the rest of Q2 and into Q3.
Jennifer Black
What was the second part of that question? I apologize.
Aaron Grey
Just towards May month to date, just if that kind of momentum continues. Now, we're halfway through Q2 here, right?
Jennifer Black
Yes. When it comes to the trades, those kind of take time and usually those don't finalize and close out in the accounting process of that till the second half of the month. So, I can't give you an accurate depiction of where we are right now because of the way the time evolves in accounting for those happen.
Aaron Grey
Okay. That's helpful.
Michael Roper
Sorry, Aaron. I do want to emphasize as well. When we see the April numbers, as I said, it really doesn't involve anything from China at this stage or to China at this stage, right? So, that will be coming on as we keep moving through Q2 and Q3. However, we also have Brazil coming online. We think our first trade from Brazil will happen end of May, beginning of June, somewhere in there. So, definitely within Q2, you'll start seeing that come online and then the harvest from the farm in general is going to -- most of it's going to be in Q2. Some of it could spill into Q3, depending on weather, kind of how that rolls around, but can't control that. But -- so you do have some good momentum coming in for the rest of the quarter.
Aaron Grey
Okay. That's helpful. And then on the margin side, some of the things that you talked about in terms of what's driving the margin pressure. It sounds like it might be a little bit more prolonged and less transitory than just one quarter, just considering the overall environment. We include the Agri-Foods, including your own farming. It looks like it was a negative gross margin for the quarter. I know just trade alone, probably slight positive. But how do we get to a point and how far away are we from getting to more and greater gross margins? I know it had been in about the 2% range the first half of last year. So, how far away from it returning to that or are we going to be in this lower margin levels for the near term at least? Thanks.
Michael Roper
Well, I think part of the key to it is, as we should -- so there's two types of trades we've talked about in the past, right? You've got -- and they're not very scientifically -- it's large trades and small trades. So, your large trades are more like entire cargo ships. Your smaller trades are the containers, right, for lack of a better definition. A lot of the orders that were going into China were the larger trades, right, which tend to have smaller margins than the container type of trades. So, as we shift more into the container trades and the smaller types of trades that we're generating through Latam and Brazil and those type of things, you should start seeing some margin increase on those. Then you start compounding it with potentially changing to the other commodities that might be more beneficial. You can't do that overnight, okay? But if we wanted to get into some different type of commodities that have better margins, we can start to do that. And again that's as you start expanding in these different parts of the world, those things start coming to play. As a matter of fact, in part of Q1 and now into Q2, we're starting to see some other commodities come into play like Sunflower Seeds and those type of things, right, that are there. So you combine that with getting the pharma operations up and running and some of the other initiatives we have going on, we think we'll see some margin increase. But it's hard for us to predict it exactly obviously with the different volatile markets that are out there.
Aaron Grey
Okay. That's helpful. And then last question for me, just in terms of some of the credit trends that you made reference to and it potentially causing you to rationalize some of your customer base. I mean isn't there's a type of AR issue that you guys having? It doesn't look like there's any doubtful accounts on the balance sheet and AR kind of came down. So could you just expand on that commentary that you made?
Jennifer Black
Yes, absolutely. So no, we don't have any AR issues right now at this time, but what you don't want to do is you don't want to overextend. You do your KYC checks and your credit checks over your customers, and you don't want to make sure, I mean, you don't want to have too much outstanding to one customer at one time just for the liability stakes of the Company. And so we have made sure to look at those closely and only limit the amount that we have outstanding to one customer at a time, just to minimize our risk and to make sure we're set in a good position.
Aaron Grey
Okay. Great. Thanks for the answers. And I'll jump back in the queue.
Operator
Thanks, Aaron. Now I'd like to open the call to Tom Kerr with Zacks for questions.
Thomas Kerr
Good afternoon, guys. One more clarification on the China business. Are you implying that the China business and the wheat business is a large disproportional part of your overall business or are we more referring to sort of the derivative effects of that -- those China actions?
Michael Roper
Yes. I guess maybe a little of both. So our main commodities that we trade today is corn, soy, and wheat, right? So just by that alone, it can be a big portion of what we trade. China is not the only place that we trade wheat with, though, right? So we have other parts of the world, right, as wheat comes out of Brazil, as wheat comes out in whatever, different parts of the world on things. So it didn't lack it totally up where things are at.
Jennifer Black
Yes. And like when you look into Q1 of this year and you look at our trades that we did, over 35% of our trades were wheat in different countries throughout the world.
Thomas Kerr
Okay. And then on that note, do you have the flexibility to go into other commodities relatively quickly because not all commodities declined in the first quarter? Cocoa beans was strong, copper was strong.
Michael Roper
Right.
Thomas Kerr
So the ability to have to just explore other commodities or?
Michael Roper
Yes. There's the abilities there. And as I said, we started to get into some other commodities like Sunflower and there was a couple of other things that I can't remember on top of my head. What those commodities where we started to move into them, it's not as straightforward though, as us just determining suddenly going, hey, we want to get into X commodity, right? We're going to start doing it tomorrow. Your traders are experts in these different areas, right? So you got to strategically plan on this as to what you really want to trade into, okay? There's going to be fluctuations up and down on stuff, but you start to expand your personnel or whatever that are there and their expertise, right? And so that's why you bring on these different trading arms. It's not just expertise in different countries and trade routes, but it's also expertise in those individual commodities. So, yes, we do have the ability to shift into those things. But I don't want people to think I can shift into whatever X commodity next week. You got to bring a team on and then you got to get them integrated into the Company or whatever. But that's exactly what we're in the process of doing with Brazil and then we did with Latam, and we're constantly looking at other areas not only from geography purpose, but also commodities as well, because we do want to have a more extensive basket, if you want to say, right, and things to trade around and do. But obviously, we started with the main ones, the wheat, the corn and the soy. Those are the big ones that are out there.
Thomas Kerr
Got it. Got it. That makes sense. And on the trade financing of $26 million, how do we figure out how that translates into revenue? So it's not a one-to-one. Is it? We're 46 million trade financing get you $26 million of revenues? Or is there like a derivative front that expands? So I hope that made sense.
Jennifer Black
So the trade lines and stuff like that all work differently. They're not all like a direct, here's $26 million, just go buy it. Most of these are set up based off of the purchasers and give us extended terms to get these transactions done. So there isn't a one-for-one like you were saying. However, it does significantly increase the amount of trades that we can do with those funds which should generate additional revenue and margins in there.
Thomas Kerr
Got it. One more for me, and I'll get back in the queue. On the restaurant business, I know you can't talk about the terms of Pokemoto and SuperFit that are being done, but can you at least say if you expect cash proceeds that can be invested in the agribusiness?
Michael Roper
Great. Will you --
Jennifer Black
They will be distributed. I believe that's what he said.
Thomas Kerr
Go ahead.
Michael Roper
No, I was just trying to figure out what your question was in reality. So the sale of the or the terms of the non-binding LOIs, right, just in general, are where we thought we're happy with it, right? We thought it's coming in where we thought it would come in, right? And the idea there is it brings in fresh capital into the business, which is going to allow us to invest in the agri side of the business, right? And so whether that's bringing in more personnel, whether it's expanding, whether it's an acquisition, whatever it is, right, it's going to allow us to really start focusing on the agribusiness model, which has been our strategy since we did the pivot, right, into this whole scenario to be able to focus on that, right?
Thomas Kerr
I was just trying to get you to give me how much cash is going to be coming in?
Michael Roper
You do this every single time we talk.
Thomas Kerr
Last one for myself. Muscle Maker Grill wasn't mentioned. Is that still up for sale? Or is there plans for that? Or is that a separate issue?
Michael Roper
Yes. No. So when we look at the restaurant operations, there's three main divisions in there, right? Pokemoto, Muscle Maker Grill and SuperFit Foods. Pokemoto is the largest one. We just started focusing on that first. SuperFit Foods kind of came along at the same time. It's kind of happened, if you want to say, right? We haven't necessarily actively pushed Muscle Maker Grill yet, although we do have an interested party that we're talking to, we're not at the LOI stage with it yet. But we do have some interest that's out there. So as soon as we complete these other transactions, then we'll start focusing on the Muscle Maker Grill side as well.
Thomas Kerr
Sounds good. I'll get back in the queue.
Operator
Thanks, Tom. That concludes our Q&A portion of the call. Mr. Roper, any final comments?
Michael Roper
Yes. Other than just letting everybody know, look, we did have a challenge in Q1. I think we worked our way around it as best we could. We had some other positive results for the quarter that came in there from EBITDA and net income and all those different things that we talked about. And so it's pretty encouraging from that perspective. We know we're executing against our plan. We know where we want to go. We have confidence in it. We consider ourselves a growing company. And just pretty excited about everything that's happening out there. And I do appreciate all the investment community, shareholders, stakeholders, all that, that are out there. Thanks for investing in us and having confidence in us and I look forward to what the next quarter in the near future brings.
Operator
Thank you, everyone. That concludes our call.
