The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Patricia A. Baker - Scotiabank Global Banking and Markets, Research Division - Analyst
: I'm just wondering whether or not you can quantify the cost reductions that you've taken so far, give us some sort of a sense of how -- just how
much you've been able to do.
Question: Patricia A. Baker - Scotiabank Global Banking and Markets, Research Division - Analyst
: Okay. And good luck with that. Just the -- are you willing to share with us what you think the CapEx number is going to be for 2020 at this point?
Or is that still kind of in a state of flux?
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APRIL 29, 2020 / 12:00PM, ROOT.TO - Q4 2019 Roots Corp Earnings Call
Question: Stephen MacLeod - BMO Capital Markets Equity Research - Analyst
: I just wanted to follow up on a couple of things that was out of the press release and also -- and Meghan, some of your prepared remarks. You
talked a little bit about some value creation levers that you think you can -- the company can pull over the next little while. I was wondering if you
could give a little bit more color on what kind of -- what that sort of entails, if there's anything specific.
Question: Stephen MacLeod - BMO Capital Markets Equity Research - Analyst
: Okay. That makes sense. And you mentioned e-commerce, just -- if I understood correctly, you're running ahead of where you thought you would
be at this point in time, probably accelerated a little bit by the stores being closed. Are you able to give any color on where you sit in terms of
e-commerce as a percentage of sales?
Question: Stephen MacLeod - BMO Capital Markets Equity Research - Analyst
: Right. Okay. Now that's very helpful. And then maybe just finally, just in terms of the distribution center. Some of the inefficiencies continue to leak
into Q4 and I think probably illuminated by the fact that it's seasonally strong period. Can you talk a little bit about where you sit in terms of the
DC inefficiencies having come out of that sort of high-volume period?
Question: Sabahat Khan - RBC Capital Markets, Research Division - Analyst
: Just I guess on the kind of the balance sheet and liquidity commentary that you provided earlier. Can you kind of share your thoughts for the rest
of the year? And I think when you guys filed your new credit agreement this morning as well, kind of what are your assumptions or your outlook
for the business? Or if you look -- if we look at what's included in this current agreement, seems like, I think, you guys have kind of the covenant
ratios peaking later on in the year. Can you kind of give us some thoughts on kind of your outlook that sort of reflected in this kind of covenant
progression through the course of the year and how comfortable you are sort of with your cash and liquidity position given some of the uncertainty?
Question: Sabahat Khan - RBC Capital Markets, Research Division - Analyst
: Great. And then, I guess, your comment earlier around e-commerce is pretty much most of your business right now. Can you give us some indication
of sort of what you're seeing in terms of at least purchasing? Like is it in line with kind of trends you're expecting? Or are you assuming pretty much
through this close down period, it's not going to be a material quarter for you guys as we look out for the rest of the year? And is that sort of reflected
in your covenants as well that this is probably going to be a very low sales and EBITDA quarter? Or is there enough of an upside coming through
the e-commerce channel that you do have some comfort in terms of some positive or even just some marginal contribution during this...
Question: Sabahat Khan - RBC Capital Markets, Research Division - Analyst
: And then just last one for me. The comp store -- or this comparable sales metric that you provided, if you think about the future business without
the U.S. stores, should we assume this number you provided excludes the U.S. stores? Or should we be rethinking this number over the course of
2020 and beyond? And just trying to think what is reflected in this number essentially.
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