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Sanderson Farms Inc (SAFM)
Q4Â 2019 Earnings Call
Dec 19, 2019, 11:00 a.m. ET
Contents:
- Prepared Remarks
- Questions and Answers
- Call Participants
Prepared Remarks:
Operator
Good day and welcome to the Sanderson Farms Incorporated Fourth Quarter 2019 Conference Call. Today's call is being recorded. And at this time for opening remarks and introductions, I would like to turn the call over to Mr. Joe Sanderson. Please go ahead, sir.
Joe F. Sanderson Jr. -- Chief Executive Officer, Chairman of the Board
Thank you. Good morning and welcome to Sanderson Farms fourth quarter and fiscal year-end conference call. This morning, we reported a net loss of $22.9 million or $1.05 per share for our fourth fiscal quarter of 2019. During the fourth quarter of last year, we lost $43.2 million or $1.95 per share. For the year ended October 31, 2019, we reported net income of $53.3 million or $2.41 per share. For fiscal 2018, we reported net income of $61.4 million or $2.70 per share.
The results of the quarter and the fiscal year ended October 31, 2018 include an adjustment of $9.6 million or approximately $0.32 per share net of income taxes to record live inventories on hand at October 31, 2018 at the lower of cost or net realizable value as required by generally accepted accounting principles. Results for the quarter and fiscal year ended October 31, 2019 include a similar adjustment of $2.8 million or $0.10 per share net of income taxes.
If you did not receive a copy of the release and accompanying financial summary, they are available on our website at www.sandersonfarms.com. Before we continue, I will ask Mike to give the cautionary statement regarding forward-looking statements.
Mike Cockrell -- Treasurer & Chief Financial Officer,
Thank you, Joe, and good morning everyone. This morning's call will contain forward-looking statements about the business, financial condition and prospects of the company. Examples of forward-looking statements include statements about future earnings, expenditures, supply and demand factors, production levels, grain cost and the supply, poultry prices, growth plans and economic conditions. The words believes, expects, anticipates, estimates, model, should, plans and similar words are intended to identify forward-looking statements.
The actual performance of the company could differ materially from that indicated by the forward-looking statements because of various risks and uncertainties. These risks and uncertainties are described in our press release and in the Annual Report on Form 10-K for the year ended October 31 2019, which was filed with the SEC this morning. All forward-looking statements speak only as of today and are based on current expectations, beliefs, and assumptions, which could change quickly based on many external factors affecting our business.
We undertake no obligation to update or revise forward-looking statements.
Joe F. Sanderson Jr. -- Chief Executive Officer, Chairman of the Board
Thank you, Mike. Our financial results for the fourth fiscal quarter and year ended October 31 reflect weak market prices for boneless breast meat produced at our big bird deboning plants. Fewer than normal features for chicken products at retail grocery stores, continued inefficiencies at our Tyler, Texas complex as we move that complex to full production, slightly higher cost for feed grain and planned downtime at processing plants to replace and upgrade equipment. Overall, the poultry market prices increased slightly for the year compared to fiscal 2018 and grain prices were also slightly higher during the year.
That said, feed cost in flocks sold were flat as improved efficiencies offset the higher price we paid for grain. Our net sales for fiscal 2019 were $3.44 billion and our net income was $2.41 per share. We showed a record 4.53 billion of poultry products. The start-up at Tyler has gone very well and we continue to move that plant toward full production.
We also continue to evaluate sites for our next phase of growth. While we have room to materially improve our performance, I'm very grateful to the efforts of our growers and our employees during this past fiscal year. And I look forward to working with them to capture the significant opportunities available to us during the coming year. With that introduction, I'll ask Lampkin and Mike to provide some details on the quarter and I'll return as they finish to discuss our focus during fiscal 2020 and answer your questions.
Lampkin Butts -- President & Chief Operating Officer
Thank you, Joe, and good morning everyone. As Joe said, overall market prices for chicken were higher during the fiscal year compared to fiscal 2018 and our feed cost per pound for the year were essentially flat. Tray pack prices during our fourth quarter and the fiscal year continued to reflect relatively balanced supply and demand dynamics but volumes reflect fewer than normal figures at retail grocery stores and at national food service restaurants during the year, which we believe is the result of ample availability and lower wholesale prices for competing proteins.
For the year, our tray pack prices were lower by $1.37 per pound compared to 2018 but with a $2.25 per pound improvement in our mix, our overall average realized price for tray pack sales increased $0.89 per pound. For the fourth quarter, tray pack sales prices were higher by $0.12 per pound compared to the fourth quarter of fiscal 2018. Our mix was also better, so that our net average sales prices during the fourth quarter were higher by $2.31 per pound. Sequentially, market prices were lower by $0.01 per pound and our mix improved by the same amount for flat pricing sequentially. We remain constructive on our outlook for the tray pack markets during 2020.
Bulk leg quarter prices were approximately 20.6% higher during the quarter compared to last year's fourth quarter and for the full year were higher by 1.3% compared to fiscal 2018. Urner Barry quoted market rises the leg quarters average $0.341 per pound during the fourth quarter and $0.335 for fiscal year. Total industry export volume for the calendar year through October was up slightly compared to 2018.
Market prices of boneless breast during our fourth quarter were lower by 1% compared to the fourth quarter a year ago but were significantly lower than historical averages, even post Labor Day. The quoted market price for boneless averaged $0.944 per pound during the fourth quarter and $1.06 per pound for the fiscal year.
Boneless breast prices weakened substantially post Labor Day and the Urner Barry market price for jumbo boneless breast is currently $0.98 per pound. Jumbo wing market prices during our fourth quarter averaged $1.73 per pound, up 19% from the average of $1.46 per pound during last year's fourth quarter. For the year, jumbo wing prices were higher by 19.9% from an average of $1.44 per pound during 2018 to an average of $1.72 per pound during 2019. The current Urner Barry quote for jumbo wings was $1.57 per pound.
Our average sale price for poultry products during the full fiscal year was higher by $0.024 per pound compared to last year, increasing 3.5% for the year ended October 31 2019 when compared to the year ended October 31, 2018. For the full fiscal year, feed cost and broilers processed were lower by $0.001 per pound or 0.5%. For the fourth quarter, our overall cash cost for grain delivered to our feed mills were higher than last year's fourth quarter. Prices paid for corn delivered during our fourth quarter were higher by 12.8% compared to last year's fourth quarter while soybean prices were lower by 8.4%.
Our feed cost per pound in broiler flocks processed were lower by $0.0025 or 0.9% during this year's fourth quarter compared to a year ago. During this year's fourth fiscal quarter, we processed 1.28 billion pounds of dressed poultry and sold 1.27 billion pounds. We processed 4.61 billion pounds during fiscal 2019 and sold 4.53 billion pounds. For those of you modeling fiscal 2020, we currently expect to process 4.9 billion pounds of dressed poultry during fiscal 2020, which would represent a 6.3% increase in pounds processed compared to fiscal 2019. If we run our plants as expected, those pounds would be processed as follows: 1.14 billion in Q1, 1.22 billion in Q2, $1.28 billion in Q3 and 1.26 billion in Q4. Of course, these estimates are subject to change as a result of weather, changes in target live weights, market conditions and other factors.
[Indecipherable] I'm grateful for everyone associated with Sanderson Farms, employees, growers, customers and vendors and look forward to the new year. At this point, I'll turn the call over to Mike for a discussion of the quarter's financial results.
Mike Cockrell -- Treasurer & Chief Financial Officer,
Thank you, Lampkin . Net sales for the fourth fiscal quarter totaled $906.5 million and that's up from $798.1 million for the same quarter during fiscal 2018. The increase in net sales for the quarter reflects an increase in pounds of poultry products sold of 10.5% and a 4.5% increase in our average sales price for poultry products compared to last year's fourth quarter. Our cost of sales of poultry products for the quarter ended October 31 increased 13.6%, reflecting a slight decrease in cost of feed in broilers processed, an increase of $0.018 per pound in non-feed related COGS and the additional pounds sold.
For the full-fiscal year, net sales totaled $3.44 billion, up 6.3% from $3.24 billion in fiscal 2018. Cost of sales for the year increased 6.2% compared to a year ago and totaled $3.16 billion. The average cost per pound in our poultry business increased $0.02 per pound or 3.4% compared to last fiscal year, reflecting higher non-feed related cost of goods sold and relatively flat feed cost. Non-feed-related COGS were $40.21 per pound during fiscal 2019, up $0.0272 per pound compared to fiscal '18 and up $0.045 per pound compared to '17.
Live cost were up just under $0.01 a pound compared to fiscal 2018 on higher chick cost and higher grower pay. Labor costs were higher about $0.01 a pound, fixed costs were higher about $0.005 per pound and other cost consisting primarily of maintenance and antimicrobial interventions in the plant are higher by just under $0.015 per pound. The reclassification of freight that is separately invoiced to customers from a reduction in COGS to in addition to revenue added another $0.005 a pound.
Inefficiencies at Tyler cost a third a $0.01 [Phonetic] a pound. We will capture those efficiencies Tyler when we get to full production next spring. However, I will point out that we were down a week at our Brazos, Texas facility and down a week in McComb to install new equipment during this first quarter of fiscal 2020 and we'll also be down a week during Q2 of 2020 at Moultrie as we complete the equipment upgrades at all of our plants.
We've sold 23.9 million more pounds of prepared chicken, a 22.6% increase and our net sales price averaged $0.095 per pound lower or a 4.9% decrease. SG&A expenses for fiscal 2019 were lower by $10.8 million compared to fiscal 2018 due primarily to a decrease in advertising expenses, trainee expenses, start-up costs and other expenses, offset by increases in legal costs, administrative salaries and the reclassification of sales commissions as SG&A costs.
For fiscal 2020, we're modelling $197.3 million per SG&A. That estimate includes no accruals for bonus comp or the ESOP. Both of those items are dependent on profitability and we will consider profitability as we move through the year and adjust this estimate accordingly.
We estimate SG&A expenses of $49.5 million in Q1, $48.5 million in Q2, $48.5 million in Q3 and $50.8 million in Q4. At the end of the fiscal year, our balance sheet reflected stockholders equity at $1.42 billion and net working capital of $365.4 million. For the year, we spent $250 million on capex improvements and we paid $28.3 million in dividends.
For fiscal 2019, interest expense was $4.2 million, an increase of $2.1 million over 2018. We had $55 million in debt on the balance sheet at year-end. Our effective tax rate was 16.5% during the year and that is because the company recognized a $2.1 million discrete income tax benefit due to certain income tax credits during the year.
Absent all discrete items, our effective tax rate would have been 23.6%. And going forward, we continue to model an effective tax rate of 24.4%, exclusive of discrete items. We expect our capex for construction, maintenance and special projects during fiscal 2020 to be approximately $198.3 million and to be funded by cash on hand, internally generated working capital, cash flows from operations and as needed, liquidity provided by our revolving credit facility. Of that total, $41.5 million is expected to be spent on equipment upgrades at several plants, $15 million for a new hatchery in Jones County, Mississippi to replace and expand the hatchery currently serving the Lower Mississippi complex, $11.3 million from vehicles, which in past years, might have been leased and $130.5 million for annual maintenance. The company has a $1 billion unsecured revolving credit facility, of which $923.4 million was available at October 31, 2019.
Our depreciation and amortization during fiscal 2019 totaled $134.4 million and we expect approximately $154.6 million for 2020. The way we are modelling that is $37.4 million in depreciation in Q1, $38.8 million in Q2, $38.9 million in Q3 and $39.5 million in Q4.
And with that, I'll turn the call back over to Joe for comments about our grain strategy and thoughts on 2020.
Joe F. Sanderson Jr. -- Chief Executive Officer, Chairman of the Board
Thank you, Mike. Our feed cost per pound during fiscal 2019 were flat with the previous year and represented the seventh straight year of relatively flat feed cost. Given the supply feed grain and uncertainties regarding trade issues, we continue to expect relatively benign feed cost during fiscal 2020.
If we had locked in prices for all of our needs for fiscal 2020, including what we have already priced at current values, that is if using the Chicago Board of Trade contract prices for current and future needs as it closed last night, our cash costs for grain during fiscal 2020 would be $22.4 million higher than during fiscal 2019 based on 2019 volumes. Given that the carryout of both corn and soybean remains healthy despite challenges with the 2019 products in the United States and given ample worldwide supplies of both grains, we should be able to bag grain at prices only slightly higher than last year. Corn basis values remain elevated, as farmers remain reluctant sellers at current lower prices. We have taken opportunities to price our corn needs through December and our soy meal needs through March, and we remain patient for now on the rest of the year.
We own our corn basis through March as well. As always on this year end call, I'll share a few things we're watching closely as we start a new fiscal year. First as always, we will keep one eye on the South American crops. As of today, the corn and soy crops in Brazil and the rest of South America are progressing normally.
Second, we will watch United States planting intentions report next March. Most everyone believes corn acres will increase in 2020 while soybean acres will decrease and we will closely watch that report. Third, we will watch chicken production numbers. USDA estimates that the industry will produce approximately 3.2% more pounds of chicken during calendar 2020 compared to 2019.
Looking at exits, chick placements, pullet placements and the size of the hen flock, we believe the USDA's estimate is reasonable. Several facilities and expansions have been completed, including our Tyler, Texas complex and we understand from publicly available information, that a couple more expansion projects have either started operations or are near completion.
These will add new production in our industry over the next few years or so. Whether or not, and to what extent the new production exceeds demand for chicken remains to be seen. What we will do is continue to execute our growth strategy, continue to look for a site for our next plant and let the markets take care of themselves. We will of course also be watching chicken markets. Market prices for boneless breast meat produced at our big bird plants for the food service market have moved counter-seasonally higher over the past few weeks. The same is true for dark meat prices. And we have mentioned several times recently, we saw fewer than normal features for chicken from food service establishments during 2019 and during calendar 2020 -- calendar 2019. That said, we are encouraged by the current chicken sandwich war in the QSR market and we wish all the participants much success.
As Lampkin said, we feel good about retail grocery demand going forward at least for everyday business. Volume during 2019 suffered from a lack of feature activity at grocery stores as many chose to take advantage of relatively low wholesale prices for beef and pork during the year. Of course, the product used at our retail grocery plants doesn't go into a tray to get sold at grocery stores, is packed both and competes in an already soft food service market.
However, as market prices for beef and pork move higher during 2020, as many are expecting, shipping could certainly draw more features. Finally, we will keep a close eye on the impact of African swine fever on the protein and chicken markets. While there remain conflicting reports on the exact number of hogs lost to the disease in China and other Asian countries, the fact that the world is facing an unprecedented protein deficit over the short term is real.
Exactly what the impact on chicken markets will be is unknowable. However, we are very encouraged that we are once again eligible to ship product to China and expect a material benefit from the open market. We are packing polls at all of our processing plants for export to China. At full production, we will produce approximately 87 million pounds of chicken feed per year, and at current pricing, estimate a $71 million operating income benefit annually from shipping chicken feeds to China.
We start the new year in good shape. Chicken markets are improving, feed costs are relatively flat, our balance sheet is strong. We start fiscal 2020 with a little debt and the company is well positioned to continue our growth strategy in the future. The New Tyler complex demonstrates our optimism and confidence in the long-term success of Sanderson Farms and our industry. The new complex will add value for our investors, opportunities for our employees and their communities and more high quality products for new customers.
We remain committed to continuing our growth beyond Tyler and look forward to finding a site soon. Market conditions are improving as we start the year and we believe that optimism surrounding the chicken industry as we move into the new calendar year is warranted. With that, we will now take your questions.
Questions and Answers:
Operator
Thank you.
[Operator Instructions]
And we'll take our first question from Jonathan Feeney with Consumer Edge. Please go ahead.
Jonathan Feeney -- Consumer Edge -- Analyst
Good morning. Thanks very much. Joe, could you tell us what that $71 million from chicken feed? How does that compare with your peak profitability from that product shipping into China in the past and can you refresh my memory on [Indecipherable] when that stopped?
Joe F. Sanderson Jr. -- Chief Executive Officer, Chairman of the Board
I didn't hear the second half.
Jonathan Feeney -- Consumer Edge -- Analyst
When did that stop? How does it compare with your peak profitability in that product in the past? And when did that stop?
Lampkin Butts -- President & Chief Operating Officer
January of 2015, was the ban was put in place, we stopped packing. That year, cost was $40 million before tax. This year of course, we have more volume and the market has been a little better. So we are estimating $71 million, China lifted the ban on US poultry on November 14. On November 22, all of the Sanderson plants were added to the USDA export library which approved us to pack for China. November 25th, we began packing polls with every client for export to China and we put our first polls on the water in a container on December 5. So we're packing and we started shipment the 5th and we'll continue to ship as product is ready.
Jonathan Feeney -- Consumer Edge -- Analyst
That's really really helpful. And if I could ask one follow-up. How about other chicken parts into China, could you talk a little bit about the outlook for, I know historically it's been just very limited demand for a lot of chicken parts, but any comment you could have about the prospects for I think precisely to the China for 2020?
Joe F. Sanderson Jr. -- Chief Executive Officer, Chairman of the Board
Here's, what we think. The Chinese have been very cautious about pricing. They paid a little too much for some product when they started ban heavily outside from some other suppliers. So they've been very cautious about pricing. But here's what we think is going to happen. We think in the early part of January, they're going to sign the agreement with the United States and then over the next 60-days to 90-days after that, the tariffs will come off. We think we're going to sell some products to them in January though and but it may be that there will be tariffs on that initial product [Indecipherable] and the value added tax in addition to that. But eventually 60-days to 90-days after that, that tariff comes out and we will be more competitive. There's also a tariff on Brazilian chicken and anti-dumping tariffs, we think, we know there is a tariff and once that tariff comes off on chicken and just as importantly for us on pork, that's another big deal for us. When those tariffs come off as a result of signing a Phase 1 credit agreement, which we think might be March before that, all that happens, but we will ship product before that we think. We think that will happen in January, a whole muscle I'm talking about.
Lampkin Butts -- President & Chief Operating Officer
We've had inquiries from China for drumsticks, whole legs and leg quarters, some leg quarters and some boneless.
Joe F. Sanderson Jr. -- Chief Executive Officer, Chairman of the Board
Boneless dark meat, yeah.
Jonathan Feeney -- Consumer Edge -- Analyst
Got you. That's all very helpful, thank you.
Joe F. Sanderson Jr. -- Chief Executive Officer, Chairman of the Board
Absolutely.
Operator
We'll take our next question from Michael Piken with Cleveland Research. Please go ahead.
Michael Piken -- Cleveland Research -- Analyst
Yeah, just wanted to sort of follow-up and get your thoughts in terms of what it's going to take to get the breast meat market going? I mean, I know you talked a little bit about chicken more, as I notice some of that is more small bird based, how do we get the big breast market going, if it can be the more dark meat and pork meat [Indecipherable] for that product?
Joe F. Sanderson Jr. -- Chief Executive Officer, Chairman of the Board
Probably to in my mind it takes combination of things and will take, some meat going to export, we are not saying meat, I'm talking about poultry, beef and pork all that maybe and then it will take some features at retail grocery stores, it will take some features in QSR, it's going to take all of that for breast meat to move, but it will. That's lining up to happen. All of that is lining up to happen.
Michael Piken -- Cleveland Research -- Analyst
Okay. So in terms of a timing standpoint, do you think [Indecipherable] prices typically rally in January but I mean do you think that it's possible that we could start to see such new prices and currently maybe even the levels of like five years ago in some of our products, the other products, is there anything perhaps you could get exported to China or elsewhere, or is that strictly going to be a domestic product?
Joe F. Sanderson Jr. -- Chief Executive Officer, Chairman of the Board
You have a little rally in January but breast meat normally moves most in March. The biggest move in breast meat is normally in March and then again, and as it moves, significantly moves in summer. But, I believe March is when-- the last two years, boneless has gone up 40% in March, both years. We got a little optimistic about the rest of the year after that move in March and it kind of leveled out. But the last two years we've been -- we've invested in the big move.
Lampkin Butts -- President & Chief Operating Officer
You get a little bump in January, but your biggest moves in March.
Michael Piken -- Cleveland Research -- Analyst
All right, great and then the last one is just if you could talk a little bit about what's happening with wins and if you expect the Super Bowl rally for wing prices [Indecipherable]?
Joe F. Sanderson Jr. -- Chief Executive Officer, Chairman of the Board
Rally, I mentioned this in my comment, weighing prices at $1.57 or higher than they were a year ago. We were really been surprised we haven't been as short this football season as we normally are, and we would expect this earnings to be higher than that, but I think going into New Years and bowl games and followed by the Super Bowl, I'm optimistic about wing price.
Lampkin Butts -- President & Chief Operating Officer
We think with wings being at $1.74 level, that a lot of operators, and boneless breasts, we think a lot of the operators used in boneless wings and instead of $1.70 wings right after Labor Day.
Michael Piken -- Cleveland Research -- Analyst
All right. Thank you.
Lampkin Butts -- President & Chief Operating Officer
Thanks, Mike.
Operator
Our next question will come from Ken Goldman with JPMorgan. Please go ahead.
Ken B Goldman -- JPMorgan -- Analyst
Hey, good morning everybody.
Joe F. Sanderson Jr. -- Chief Executive Officer, Chairman of the Board
Good morning, Ken.
Ken B Goldman -- JPMorgan -- Analyst
I wanted to ask two questions if I can. First, Joe, you had some non-recurring costs, I guess in 2019. But the legal expenses were up, some inefficiencies in the production side and you guys were also talking about having seen down-weeks in terms of production just to get those plants a little bit more efficient this year. How do we think about sort of the balance between, is there any way to quantify I guess some of the costs, whether they're COGS or SG&A that hits you last year that may or may be are not coming back this year versus some of the new ones? I'm just trying to get some kind of sense for how to model that because there's a lot of moving pieces there?
Joe F. Sanderson Jr. -- Chief Executive Officer, Chairman of the Board
I know you had $13 million at Tyler that you will not have. How much training cost going to be down this next year? $7 million or $8 million?
Mike Cockrell -- Treasurer & Chief Financial Officer,
Well, it was this year and it's going to be down another $2 million next year.
Joe F. Sanderson Jr. -- Chief Executive Officer, Chairman of the Board
But you've had the $7 million...
Mike Cockrell -- Treasurer & Chief Financial Officer,
That's right.
Joe F. Sanderson Jr. -- Chief Executive Officer, Chairman of the Board
$7 million plus $2 million, you're going to have $9 million. I don't think we can [Technical Issues] legally, I mean we're going to have to say legal expenses, going to be legal expenses for another year. So there were three things we...
Mike Cockrell -- Treasurer & Chief Financial Officer,
Inefficiencies at Tyler is [Indecipherable] we'll get that back, when we learn in full by the spring and the down-days at all of our primary... [Speech Overlap]
Joe F. Sanderson Jr. -- Chief Executive Officer, Chairman of the Board
We have seven, and this year you're going to have three.
Mike Cockrell -- Treasurer & Chief Financial Officer,
That's right.
Joe F. Sanderson Jr. -- Chief Executive Officer, Chairman of the Board
That was three times we were looking at. So...
Mike Cockrell -- Treasurer & Chief Financial Officer,
Advertising?
Joe F. Sanderson Jr. -- Chief Executive Officer, Chairman of the Board
Well, you're not going to have advertising. There were three things.
Operator
[Operator Instructions]
We'll take our next question from Heather Jones with Heather Jones Research.
Lampkin Butts -- President & Chief Operating Officer
Okay. Heather? Operator?
Operator
Hello, please check your mute function.
Joe F. Sanderson Jr. -- Chief Executive Officer, Chairman of the Board
I don't hear Heather.
Operator
Are you all able to hear?
Lampkin Butts -- President & Chief Operating Officer
There she is. Yeah. [Speech Overlap]
Heather Jones -- Heather Jones Research -- Analyst
Okay, thank you. Going back to, you say in the days that you all were down for equipment upgrades, there's going to be three of those in 2020 but there was seven in '19.
Joe F. Sanderson Jr. -- Chief Executive Officer, Chairman of the Board
Yeah.
Heather Jones -- Heather Jones Research -- Analyst
Did you all give a number for that, so how much that could be a reduction in cost?
Joe F. Sanderson Jr. -- Chief Executive Officer, Chairman of the Board
No. In our -- in our second and third quarters of 2019, it cost us a third a $0.01 [Phonetic] a pound each quarter. I don't know -- I think it will cost us about that again. [Speech Overlap] for the full year, right. But in the first quarter, we have two plants, which is what we had during last year's second quarter. So I must say a third a $0.01 [Phonetic] a pound, Heather.
Mike Cockrell -- Treasurer & Chief Financial Officer,
In first quarter.
Heather Jones -- Heather Jones Research -- Analyst
Okay.
Mike Cockrell -- Treasurer & Chief Financial Officer,
[Speech Overlap] Which by the way, the first quarter is already challenged with four holidays and down days ahead of low volume and Thanksgiving.
Heather Jones -- Heather Jones Research -- Analyst
Right. Going on to China. Joe, you mentioned that you think that in January, even with the tariffs on place that you'll ship -- that the industry will ship some product to China. And did I hear you say whole muscle, so you're thinking product in addition to polls?
Joe F. Sanderson Jr. -- Chief Executive Officer, Chairman of the Board
Yes.
Heather Jones -- Heather Jones Research -- Analyst
Okay. And I just want to ask you guys about the whole cold storage facility issue. When do you all expect them to approve that list?
Joe F. Sanderson Jr. -- Chief Executive Officer, Chairman of the Board
In December -- 25th of December.
Heather Jones -- Heather Jones Research -- Analyst
So it will give us -- Christmas program?
Joe F. Sanderson Jr. -- Chief Executive Officer, Chairman of the Board
Yes. That's what we're expecting. And you heard that from USDA, USDA report.
Heather Jones -- Heather Jones Research -- Analyst
Okay. And do you think it's going to be an actual announcement or is it just how are you expecting that to be handled?
Mike Cockrell -- Treasurer & Chief Financial Officer,
The way I understood it was, the list have been submitted to and they do not publish it, they will all be improved automatically. If they don't inspect them, they are not going to pack all those going forward. They're going to be approved automatically, just like they did to plants, they were all on the list before. And our plants were on the list before. So they're going to approve them de facto.
Heather Jones -- Heather Jones Research -- Analyst
So basically if we don't hear nay by December 25th, then it's approved?
Mike Cockrell -- Treasurer & Chief Financial Officer,
Yes, that's right.
Heather Jones -- Heather Jones Research -- Analyst
Okay. And then I just wanted to talk about cash. So if this supply shortage turns out to be as expected you all should generate some pretty good cash flow. Can you give us a sense of your priorities for that?
Mike Cockrell -- Treasurer & Chief Financial Officer,
Well, our first priority would be to build another complex, but we don't feel like we can do that right this minute. So in my mind, it would be a special dividend which is what we've done historically and prepare to be able to plan. Those are the two things.
Heather Jones -- Heather Jones Research -- Analyst
Okay, perfect. Thank you so much. Have a Merry Christmas.
Joe F. Sanderson Jr. -- Chief Executive Officer, Chairman of the Board
Thank you, Heather. Same to you.
Operator
And we'll take our next question. We'll return with Ken Goldman with JPMorgan. Please go ahead.
Ken B Goldman -- JPMorgan -- Analyst
Thank you. I think through -- heard your deliberations as silence, but I know you guys.
Joe F. Sanderson Jr. -- Chief Executive Officer, Chairman of the Board
I can't get it out of my guide, so we identified three things and I can't get it out of them and I will get back to you. There are three things we identified and it was training costs that we're doing away [Speech Overlap] legal expenses, [Speech Overlap] and start-up. Those three things are going to go away and then it was a $0.01 a pound but legal are not going away next year.
Ken B Goldman -- JPMorgan -- Analyst
Got it, OK. Thank you for that.
Joe F. Sanderson Jr. -- Chief Executive Officer, Chairman of the Board
That was [Technical Issues] that are going to disappear from.
Ken B Goldman -- JPMorgan -- Analyst
Okay, thank you for that. And then just a very quick one. You were mentioning that the first quarter has a reasonable number of headwinds. Were the messaging there more about just typical seasonality, or was it more about a certain number of headwinds, that maybe are unusual to the first quarter of 2020?
Lampkin Butts -- President & Chief Operating Officer
No, the four holidays are every year, down days ahead of Thanksgiving and Hanukkah and Christmas are every year. The things we will have this year is McComb was down all last week getting its equipment upgrade and we were down in Brazos in November. So you had those additional down days on top of the lower volume you normally get. But you're absolutely right Ken, those are every year except the additional down days.
Ken B Goldman -- JPMorgan -- Analyst
Thank you guys so much.
Joe F. Sanderson Jr. -- Chief Executive Officer, Chairman of the Board
Thank you.
Operator
Our next question will come from Ben Theurer with Barclays. Please go ahead.
Benjamin Theurer -- Barclays -- Analyst
Hey, good morning, Joe, Lampkin and Mike, thank you very much and congrats on the results. Just wanted to follow-up on the $71 million figure you've mentioned operating income benefit for polls to China. Is that, obviously, it includes, does it include for full-year what the current tariffs are on polls to go to China, because you've mentioned you expect those tariffs to say the way. So when you gave this $71 million, is that inclusive of tariffs going away or is that still with tariffs and actually the number could be higher if tariffs were to go away and you would actually get a bit of pricing out of the path you ship?
Joe F. Sanderson Jr. -- Chief Executive Officer, Chairman of the Board
Could be higher if the tariffs go away.
Mike Cockrell -- Treasurer & Chief Financial Officer,
Well I mean, clearly we are -- we have very plants that had never packed polls before, Palestine, Tyler and St. Pauls. And we are just starting up. And so, to be really good you need to pack 65% to 70% of your polls as Grade A polls. And we're not there yet. We're not 100% efficient, we're not packing 65% to 70% at those three plants and we're really not there at any of the other plants either. So we've got -- we'll probably be there by the end of January.
We started packing November 25. So it's going to take us a couple of months to get up to capacity and get everybody trained. Nobody, really nobody, the people in the plants, the division managers had done it before, maybe some superintendents, but no employee at the plant had done that. And so, we are just ramping up right now, but the answer to the question is that when those tariffs go away, your margin is probably going to go up a little bit.
Benjamin Theurer -- Barclays -- Analyst
Okay, perfect. For the outset, tariff would be just additional incremental. And can you remind us what the actual tariff right now is? on cost...
Mike Cockrell -- Treasurer & Chief Financial Officer,
35% tariffs plus there is a value added tax, and I don't know how much it is. It's 10% or 12% for the value added tax.
Benjamin Theurer -- Barclays -- Analyst
Okay.
Mike Cockrell -- Treasurer & Chief Financial Officer,
Now that's not going to go away. The value added tax will not go away, the 35% is what we believe will go away and that's -- they have actually -- pork has a 70% tariff on it, but they have been waived, the pork tariff for the last 45 days and they have allowed some people to bring in some pork. We think -- but they're not bringing as much volume as they could be bringing in. I can't remember, where did we read that?
Lampkin Butts -- President & Chief Operating Officer
[Indecipherable] Yeah, one estimate out there by somebody in the industry is that the pork industry could export as much as 30% or 32% of their production in 2020. That's the high-end of what I've seen but that would still be a lot of product going into that export market. That could use that much.
Benjamin Theurer -- Barclays -- Analyst
Okay. Perfect.
Joe F. Sanderson Jr. -- Chief Executive Officer, Chairman of the Board
And that is as important as shipping chicken over there.
Benjamin Theurer -- Barclays -- Analyst
Okay, perfect. All right, thank you very much for that. And then just one question, I mean thank you very much for all the breakdown you gave on the non-feed related cost and if you take a look at your outlook in terms of cost into next year and also SG&A it seems to be a little lower than what it was in 2019. Can you elaborate, where saving comes from, particularly on the SG&A side, because that seems to be a lower number close to $200 million versus what we've been seeing in 2019, which was more like $210 million, $211 million so there is about 5% savings. Where does that come from? Is it marketing? Is it live or what's driving that number down on a year-to-year basis for SG&A?
Mike Cockrell -- Treasurer & Chief Financial Officer,
Yeah, I'll say that $9.4 million of it is the absence of start-up costs. You'll recall that we started the Tyler plant in February or January and you had start-up costs in November and December which was last year's first fiscal quarter. So, $9 million there, $1.8 million additional savings in trainee costs, legal expenses we've optimistically probably naively have reduced $3 million for next year. ESOP, we included an ESOP accrual and we had a $3 million accrual in fiscal 2019. So then that will be offset by an increase of $2.8 million in administrative salaries and small increase in some other things, but whereas marketing compared advertising expenses is flat.
Benjamin Theurer -- Barclays -- Analyst
Okay, perfect. Thank you very much and congratulations again.
Lampkin Butts -- President & Chief Operating Officer
Thanks again.
Operator
Our next question will come from Ben Bienvenu with Stephens Inc. Please go ahead.
Ben Bienvenu -- Stephens Inc. -- Analyst
Hi, thanks. Good morning guys.
Joe F. Sanderson Jr. -- Chief Executive Officer, Chairman of the Board
Good morning, Ben.
Ben Bienvenu -- Stephens Inc. -- Analyst
Joe, you mentioned comments about corn basis. I know you also had a hard time pricing basis. I just wanted to get your sense of -- relative to two weeks ago or a month ago, is it getting any easier to price basis and what do you all looking for? What do you think farmers are looking for that basis to break and normalize EBIT?
Joe F. Sanderson Jr. -- Chief Executive Officer, Chairman of the Board
If I were to price basis for the fiscal year, which I'm not going to do, it would be at $0.24 a bushel. We priced through March, our price January, February, March last week, and it was about $0.18 [Phonetic]. Then I had some truck corn about from for Texas and Mississippi and North Carolina that was less expensive and it kind of blended that down a little bit, but the farmers are just upset, irritated, they had bad planning and then they had perfect pollination and perfect rain so they made more than they thought they were going to make, better yields and now they are having not this week but Monday, a week ago, there were still 900 million bushels of corn in the field, they can't get it out. And that's problematic for them and for the supplier. But they'd like to get it out and get it in a band. And so, they've had a bad time with this crop and they don't want to sell it for corn rallied in the last two weeks, it was $3.75 a bushel on the board and basis was negative $0.40 to $0.50 a bushel, particularly where this corn is. In Minnesota and Wisconsin and North Dakota is probably $0.60 a bushel negative, there. And just a bad, it's been a bad crop fall and I understand that, which like selling boneless breast through $0.70 [Phonetic] a pound. I don't like that either.
Ben Bienvenu -- Stephens Inc. -- Analyst
That's helpful, thanks. And then Mike, I want to ask about freight rates. I know you guys had the accounting changes for freight in 2019. Putting that aside, it sounds like freight rates are going to be better in 2020. I'm wondering if you could give us a sense of what exposure do you guys have to contract versus spot and what do you think about freight rates into 2020? It seems like it could be a nice tailwind?
Joe F. Sanderson Jr. -- Chief Executive Officer, Chairman of the Board
It could be. They go out, we did a lot of lanes [Phonetic] for the full-year, just extreme downstairs looks at where they're going to be shipping product and they will go out to be it for those lanes, and get a lot of them priced in January and then they fill-in during the year, so the prices come down or below, we're exposed to that but most of it is price for the year. And I hadn't heard any numbers yet.
Mike Cockrell -- Treasurer & Chief Financial Officer,
They're not going up. [Speech Overlap]
Joe F. Sanderson Jr. -- Chief Executive Officer, Chairman of the Board
Yeah. So I don't have the numbers yet. That is a good question and we'll fill that in on the February call after we get everything priced in January.
Ben Bienvenu -- Stephens Inc. -- Analyst
Okay, great. Wish you all a Merry Christmas.
Lampkin Butts -- President & Chief Operating Officer
Say it again Ben.
Ben Bienvenu -- Stephens Inc. -- Analyst
I just said Merry Christmas. Good luck.
Lampkin Butts -- President & Chief Operating Officer
Thank you, Ben, so much. Good talking to you.
Operator
Our next question will come from Eric Larson with Buckingham Research. Please go ahead, sir.
Eric Larson -- Buckingham Research Group -- Analyst
Yeah, thank you everyone and happy holidays to all as well.
Lampkin Butts -- President & Chief Operating Officer
All right, thank you very much.
Eric Larson -- Buckingham Research Group -- Analyst
So Joe, we talked, I forgetting some of the timing here, I guess it's age that I have an excuse for, but you took, you made a conscious decision to bump your salaries up for your employees. I think we talked about it in March or April and then you felt that [Speech Overlap]. So you also felt that you had the ability to improve your efficiency, improve a series of efficiencies that would pay for that. And I think you probably did get some benefit of that this year, but -- is that maybe, is that going to be a tailwind in 2020 as well or would that be more of a neutral cost impact?
Joe F. Sanderson Jr. -- Chief Executive Officer, Chairman of the Board
I think neutral. We actually, we're going to start out the year, let me just put this in context, we are going to start out 2020 in much better shape in the plants than we did in 2019 as far as yields in the plants, all the plants, the yields are much better in every plant we have, they're all, every one of them are close to the top 25%, all of the big bird plants are in the top 25% and all the tray packs but one of the trade factor in the top 25%, we hadn't done that and I attribute that both to the management and also to the fact that we are staffed at all those plants. Our pricing at all the tray pack plants are actual and it's been a year-long process getting that and the lab production is again had another great year there in the top 10%. And I'm attributing that to the pay that we did and we are pretty close to our live weight target.
Now, one thing we have a, what we call an extra board, which is about 10% over the labor force and mostly plants have never had an extra board and they've never managed an extra board, which is never were able to harness and the trick with an extra board is bringing them on, let them work three hours and asking for volunteers to go home. Yet I'm trying and then let people go home, extra boards cover absentees and people who are out on leave and part vacations and things like that.
Well, we're hired up full everywhere and have extra boards. So for the first, three, four, five months, we had too many people in plant and they have to learn how to manage those extra boards and we will get that done pretty quickly. But I think that have been the back on good -- backing the tray pack plants are excellent, their costs are excellent. The big boning plants as one it hadn't really gotten back, I would say, to neutral yet. They're still have to go into a lot of training, but I think they would all be trained soon.
Eric Larson -- Buckingham Research Group -- Analyst
Got it. So is it -- is the issue was still building a new plant here? Is it still finding adequate labor in any of the regions that you would like to put them in? Is that the constricting factor?
Unidentified Speaker
Yes. We had identified a site where there is ample labor and I think it's not a good time to look into our contractors and it's not a good time, I think material costs are very expensive right now. This should not a good time to be -- we were just bid of a entry -- a small entry in Jones County and we will -- it came in a little, a good bid higher than we thought it would, it's just material, it's concrete and stable and it's very expensive right now.
Eric Larson -- Buckingham Research Group -- Analyst
All right. Gentlemen, thank you. Again, happy holiday.
Joe F. Sanderson Jr. -- Chief Executive Officer, Chairman of the Board
Thank you very much.
Operator
We'll take our next question from Adam Samuelson with Goldman Sachs. Please go ahead.
Adam Samuelson -- Goldman Sachs -- Analyst
Yes, thanks. Good morning, everyone.
Joe F. Sanderson Jr. -- Chief Executive Officer, Chairman of the Board
Good morning, Adam.
Adam Samuelson -- Goldman Sachs -- Analyst
Joe, Lampkin, and Mike, I was hoping if you get a little more color on the retail market, maybe just, I know this is a slower time of the year from a retail perspective. But you're getting any kind of visibility on featuring, picking up through the first quarter and any comments you could have just around to some of the base contracting kind of activity for 2020 and making sure your products got the space at the retailers where you want it?
Lampkin Butts -- President & Chief Operating Officer
January is shaping up nicely as far as boneless breast features at retail, which is years of January usually is like that, usually January is a big month for features, especially on boneless breast, a lot of people make their New Year's resolutions regarding their diet and they won't eat healthy and so they go with chicken and a lot of go to boneless breast. So that's developing nicely for our customer base for January.
I'm not sure I understood the second question.
Adam Samuelson -- Goldman Sachs -- Analyst
Just contract -- are you seeing, I mean, just, I mean you guys sold out any contracting commentary just in terms of make sure you got the customer base in that and you guys -- the retailers that you want to be in?
Joe F. Sanderson Jr. -- Chief Executive Officer, Chairman of the Board
We had, Tim, but you're starting to -- we're still selling the new production out of tower, all of that products are not placed exactly where we want it to be, but we are starting up two new accounts in January that will both very beneficial for that Tyler plant and be a good link to our business plant completely sold out. We still have some to sale and got a number of retailers we're talking to about that.
Adam Samuelson -- Goldman Sachs -- Analyst
Okay. And then maybe just in -- on the foodservice side with QSRs with the chicken sandwich wars is just, are you guys seeing kind of orders for some of those further processors, like pulling in jumbo breast meat and other a lot of it's been small bird, but are you seeing some other start to stockpile jumbo boneless breast is a competitive response or just any activity in that part of the channel?
Joe F. Sanderson Jr. -- Chief Executive Officer, Chairman of the Board
We are not seeing that, we sell a number of further processors and they're buying, their orders are normal, but we're not seeing any ramp-up.
Adam Samuelson -- Goldman Sachs -- Analyst
Adam, it's Joe. We think this move in boneless breast that we saw went from 88 to 98, we think that was further processors pulling in boneless in anticipation of higher prices in the first quarter. And so they were buying that, but we don't know that it was for any special feature anytime. We just think they were stockpilings and cheaper boneless breast prices are going to move up in spring.
Got it, OK, that color is super helpful. You all have a happy holidays and a happy New Year.
Joe F. Sanderson Jr. -- Chief Executive Officer, Chairman of the Board
Thank you, Adam, and you too.
Operator
Our next question will come from Robert Moskow with Credit Suisse. Please go ahead.
Robert Moskow -- Credit Suisse -- Analyst
Hi, thank you for the question. This is my first earnings call. Yes. I didn't expect so many questions about cost, I think my initiation had 30 pages on chicken pricing in China, so maybe I need to sharpen -- on your cost structure and all the complexity, my goodness. But one thing I was hoping maybe you could kind of pull it all together for us on is that if I look at your EBIT this year and what consensus is for next year, it's like a $200 million improvement baked in and is there any way to kind of tie together and say how much of that you can get to just from self-help through all these operational efficiencies or just easier comparisons, and then maybe even layer into that, the chicken paws shipment opportunity, how much is that that may be I'm prepared it that way, but I was just curious? And then I had a follow-up.
Joe F. Sanderson Jr. -- Chief Executive Officer, Chairman of the Board
Let me -- we think internally that some stuff we can do internally, there's $50 million to $80 million that we've identified that we can do, and that has to do with yields at our plants, has to do with some packaging improvements, it has to do with some getting Tyler sold out, getting in the right mix in Tyler, it has to do with -- we put in a lot of dark meat deboning, we don't have all that so well and things like that. And there are some other things, but those are some of the warrants. So, we think $50 million to $80 million we can do internally, we call those are our operational goals and we identify those at the end of the fiscal year and then the rest of it is going to be held from the market.
And we think that this African plan favor, this protein shortage it's not just chicken, I want to emphasize, it's -- chicken is going to be a part of it, but moving -- chicken is going to be up 3%, the pork is going to be up 5% in production top of what it was in 2019, which was I believe 4.5% and just as important the US export pork and beef to China and other countries in Asia. So we believe and that's a forward-looking statement that the market is going to be as much as or more than what we're going to do our sale and that's where you would get the improvement.
Robert Moskow -- Credit Suisse -- Analyst
And then my follow-up was on that 3% increase in production. There's been a multi-year increase in industry capacity from new plant construction and my sense was that 2020 would kind of be the end of that, maybe a three-year or four-year cycle, is that how you would characterize it to based on what you're seeing competition doing? Or is there kind of like a spillover effect from all that capacity that would had incremental pound in 2021 as well?
Joe F. Sanderson Jr. -- Chief Executive Officer, Chairman of the Board
I would think we would see 2021 as well, if you look at the egg sets and chick placements, I don't have that in front of me, but I believe you all know, I was looking at it in the Executive Committee and we were looking at 7 million or 8 million eggs and 7 million, 8 million chicks a week over a year ago and if you will add up the announced, publicly announced and where they are that doesn't add up to to 7 million and 8 million, that adds up to half of that.
The Sanderson, the Mount Air, the Rayford -- Costco has just got started, so they're not -- they start at Labor Day, they're not -- they're not -- there are some other people they have increased production that didn't amount and so there is much more there that didn't amount and they have increased production. I don't know that Titan plant is opened yet. So they are 2021 and 2022 and someone has built a bigger plant and they're going to be a 2021-2022, and I believe Rayford built a bigger plant and they had -- so they're going to be a 2021-2022. And Costco will be 2021, they will ramp-up the full production in '20, I wouldn't think that like they will be in 2021. So I think you got it right, 2020 and 2021.
Robert Moskow -- Credit Suisse -- Analyst
All right. Okay, thank you.
Joe F. Sanderson Jr. -- Chief Executive Officer, Chairman of the Board
Thank you.
Operator
Our next question will come from Peter Galbo with Bank of America. Please go ahead, sir.
Peter Galbo -- Bank of America -- Analyst
Hi, guys. Good afternoon and thank you for fitting me in. Just two quick ones from me, Joe, I'd love to just get your commentary on the opportunity in China, the US trade representative came out and said that it would be kind of around a $1 billion opportunity for the industry, there have been some headlines out this morning that it could be as much as double of that. So, I just want to kind of try and gauge how large that the overall opportunity of China you think could be?
Joe F. Sanderson Jr. -- Chief Executive Officer, Chairman of the Board
I have no clue about the size, I mean, people there prefer pork, and it's huge though, I mean, the limitations don't be vessels and ships and cold storage in China and things like that, and I will also remind everybody that there is a ceiling on prices. They are being very cautious about prices right now.
We've talked to them and I have a good -- I mean our sales people have and they have been very deliberate about prices and so they are good buyers and very cautious. I don't have a clue about how much -- that it's a good opportunity for us I believe.
Peter Galbo -- Bank of America -- Analyst
Got it, OK. And Mike, I don't know if you've provided this in your prepared comments or not, but did you give a feed cost per pound estimate for the first quarter?
Mike Cockrell -- Treasurer & Chief Financial Officer,
No, and we don't typically do that. We priced our -- Joe shared prices corn through December. He has got a solid price through the first quarter and in the March that we don't typically do that. You will have some of the October corn -- October's half price corn. So you'll have that pricing going into [Speech Overlap] and then you'll get cheaper corn after that, and I don't know that so. Nothing significantly changed from Q4 to Q1.
Peter Galbo -- Bank of America -- Analyst
Got it. Thank you very much.
Operator
And we'll take our next question from Ben Mayhew with Bank of Montreal. Please go ahead.
Ben Mayhew -- Bank of Montreal -- Analyst
Hi guys, thanks for taking my question. So, just one question. At your Investor Day this year, I believe it was EMI said that chicken exports would need to increase roughly 10% to get chicken margins back to normal levels, is that thinking still apply here?
Joe F. Sanderson Jr. -- Chief Executive Officer, Chairman of the Board
Exports would need to go up [Technical Issues] for chicken prices to normalize. I don't remember that -- it feels like that's going to happen, but I don't remember that.
Lampkin Butts -- President & Chief Operating Officer
Who said that?
Joe F. Sanderson Jr. -- Chief Executive Officer, Chairman of the Board
[Indecipherable] outlook for price.
Lampkin Butts -- President & Chief Operating Officer
Yes, they're just saying that because of the increase in supply domestically, yes, of course, there are lot more moving parts to that than just exports.
Joe F. Sanderson Jr. -- Chief Executive Officer, Chairman of the Board
To me, you get two or three things that are on the horizon. You have exported chickens to China, you've exported pork and beef to China and you have the possibility of a very large player featuring a chicken sandwich in the United States, and if you go back in history and look and see what happens when that particular player features chicken in the United States, it seems a pretty good -- that's not a bad situations and it's not one thing that's happening, there's a multitude of things that are on the horizon.
Lampkin Butts -- President & Chief Operating Officer
And if beef and pork go up, we get more features in retail, and we get pricing benefit from that.
Joe F. Sanderson Jr. -- Chief Executive Officer, Chairman of the Board
That's what I'm talking about -- I'm talking about beef and pork being exported.
Mike Cockrell -- Treasurer & Chief Financial Officer,
The same retailers, the same players also going to feature a breakfast chicken biscuit starting in 2020 trying to send out some competition from some others that are going to start doing breakfast.
Joe F. Sanderson Jr. -- Chief Executive Officer, Chairman of the Board
Yes, so there's a lot of things happening, it's not just one thing.
Ben Mayhew -- Bank of Montreal -- Analyst
Right. Fair enough. That's my only question. Happy holidays to everyone over there.
Joe F. Sanderson Jr. -- Chief Executive Officer, Chairman of the Board
Thank you so much, Ben.
Operator
And this does conclude today's question-and-answer session. I'd like to turn the conference back over to Joe Sanderson for additional or closing remarks.
Joe F. Sanderson Jr. -- Chief Executive Officer, Chairman of the Board
Thank you. And thank you for spending time with us on behalf of everyone at Sanderson Farms, Happy Hanukkah, and Merry Christmas, and happy prosperous and peaceful New Year to everyone. Thank you.
Operator
[Operator Closing Remarks]
Duration: 76 minutes
Call participants:
Joe F. Sanderson Jr. -- Chief Executive Officer, Chairman of the Board
Mike Cockrell -- Treasurer & Chief Financial Officer,
Lampkin Butts -- President & Chief Operating Officer
Unidentified Speaker
Jonathan Feeney -- Consumer Edge -- Analyst
Michael Piken -- Cleveland Research -- Analyst
Ken B Goldman -- JPMorgan -- Analyst
Heather Jones -- Heather Jones Research -- Analyst
Benjamin Theurer -- Barclays -- Analyst
Ben Bienvenu -- Stephens Inc. -- Analyst
Eric Larson -- Buckingham Research Group -- Analyst
Adam Samuelson -- Goldman Sachs -- Analyst
Robert Moskow -- Credit Suisse -- Analyst
Peter Galbo -- Bank of America -- Analyst
Ben Mayhew -- Bank of Montreal -- Analyst
