Q3 2019 Earnings Call
Ladies and gentlemen, thank you for standing by welcome to the ends on group Inc. Q3, 2019 earnings Conference call.
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So to speak his presentation, there will be a question answer session.
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I went out to hand, the call was able to your speaker today.
Keith Chief Investment Officer, Sir you May go ahead.
Thank you welcome everyone and thank you for joining us today.
As always before we begin I have just a few housekeeping matters.
We filed our earnings press release and tend to yesterday. This announcement is available on the Investor Relations section of our website Www Dot enzyme group dot net.
A replay of this call will also be available on our website until five P.M. Pacific on Friday December six 2019.
We want to remind anyone that may be listening to a replay of this call that all the statements made ours as of today October 30, Onest 2019, and the statements have not been nor will be updated subsequent to todays call.
Also any forward looking statements made today are based on management's current expectations assumptions and beliefs about our business and the environment in which we operate.
These statements are subject to risks and uncertainties that could cause our actual results to materially differ from those expressed or implied on todays call.
Listeners should not place undue reliance on forward looking statements and are encouraged to review our SEC filings for a more complete discussion of factors that could impact our results.
Except as required by federal Securities laws enzyme and its affiliates do not undertake to publicly update or revise any forward looking statements were changes arise as a result of new information future events changing circumstances or for any other reason.
In addition, the enzyme group Inc. as a holding company with no direct operating assets employees or revenues certain of our wholly owned independent subsidiaries collectively collectively referred to as the service Center.
Provided counting payroll human resources information technology legal risk management and other services to our other operating companies through a contract through contractual relationships with such subsidiaries.
In addition, our wholly owned captive insurance subsidiary, which referred to as the captive provide certain claims made coverage to our operating subs subsidiaries for general and professional liability as well as for workers compensation insurance liabilities.
The words enzyme company, we our and US referred to the enzyme group Inc. and its consolidated subsidiaries all of our operating subsidiaries. The service center and the captive are operated by separate wholly owned independent companies that have their own management employees and assets references here end to consolidate.
The company and its assets and activities as well as the use of the terms, we us an hour and similar terms used today are not meant to imply nor should it be construed as meaning that the enzyme group inc. has direct operating assets employees or revenue or that any of the subsidiaries are operated by the ends anger.
Also we supplement our GAAP reporting with non-GAAP metrics when viewed together with our GAAP results. We believe that these measures can provide a more complete understanding of our business, but they should not be relied upon to the exclusion of GAAP reports a GAAP to non-GAAP reconciliation is available in yesterday's press release and in our 10-Q.
And with that I'll turn the call over to very poor our CEO very.
Good morning, everyone as we celebrate the completion of the spin off of the tenant group. We're very pleased to announce one of our largest third quarter improvements in our history with GAAP earnings per share for the quarter of 48 cents, an increase of 26.3% over the prior year quarter and adjusted.
Earnings per share of 55 cents up 19.6% over the prior year quarter.
These extraordinary results are a testament to the quality outcomes that are being achieved by our local leaders and caregivers as they continue to drive impressive increases in occupancy and are even more noteworthy given that in the third quarter of 2018, we had the largest quarter over quarter improvements in our history.
These results also demonstrate the enormous potential inherent within our growing portfolio.
Much of the improvement has come from strong increases in occupancy and skilled mix mix across all operations, including same store transitioning a newly acquired operations. Our same store skilled services occupancy was 80% an increase of 210 basis points over the prior year quarter and.
Transitioning skilled services occupancy was 77.9% an increase of 240 basis points over the prior year quarter. We're excited about the momentum we continue to see an occupancy as this is the second quarter in a row, where we have experienced an increase of over 200 basis points.
In both same store in transitioning operations.
We believe that these results also demonstrate that even in a period, where occupancy is across the industry may be down and what is historically one of our slowest quarters were able to consistently drive results across all payer types, including Medicaid Medicare managed care and private pay.
We are especially grateful to our service Center partners, who worked tirelessly to prepare for and complete our recent spin off while simultaneously providing support to our local leaders well would have been easy to allow the spin off to become a distraction our unique operating model of local leadership combined with the support.
Have a world Class service Center has been proven once more the results also show yet again that our local approach to healthcare scalable even in the midst of a transformational spin and continued acquisitions.
Throughout our history, we have primarily focused our acquisitions under stress healthcare operations that requires significant clinical financial and cultural turnaround. So because most of these operations are losing money at the time, we acquire them the value and growth. We experience is all organic when we talk about organic.
Growth, we're speaking about the turnaround that has to occur in nearly all of our acquisitions before they contribute to the bottom line.
Remember it often takes several years to truly transition a healthcare operation as the clinical Reputationally and cultural transformations take time to have a meaningful impact.
Of course, some transitions are quicker than others, but over the period of 20 years and 260 acquisitions, we've established a track record of both top and bottom line organic growth.
So we often experienced significant improvements in performance in the first quarter after we take ownership.
It's difficult to make a true pre and post acquisition comparison due to the varying standards and bookkeeping maintained by sellers.
However, we can highlight our operational improvements that occur after we take over operations more specifically across all our skilled nursing acquisitions, our improvement between our first quarter of ownership and our fifth quarter in occupancy skilled mix revenue and EBITDA margin is it.
Approximately 390, 440, and 80 basis points respectively.
Over a broader timeframe our improvement in the same measures between the first quarter and the 45th quarter is approximately 1300, 1400, and 470 basis points, respectively, which demonstrates the dramatic organic improvement continues for many years following the.
Initial transition period.
Let me provide some examples of this ongoing improvement we continue to see success in secondary markets as our local leaders innovate to meet the needs of their communities in 2011, we acquired Wayne contribute care and rebuild limitation in Wayne, Nebraska, where executive directors Sherry winger.
Director of nursing Jordan guilt free have led their exceptional team to outstanding clinical cultural and financial performance in 2019.
Both sharing Jordan, our home grown leaders in our organization with Sherry completing an administrator and training program and Jordan, having worked as a charge nurse and assistant director of nursing prior to becoming leaders at Wayne.
This facility grew occupancy by 14.5% and revenues by 41% over quarter third quarter of 2018.
At the same time that facility has also continued to strengthen this clinical reputation as evidenced by their continued five star CMS rating and successful survey results all while working hard to serve an increasingly acute resident population and meet the needs of their unique community.
We've also seen continued improvement in some of our strategic urban markets Mission Hills post acute care acquired in 2014 is a 75 bed facility just north of downtown San Diego wanted obscure third or fourth choice in their market Executive director, Matthew Scott and director of nursing and.
Recons outlets have transformed mission hills into a post acute powerhouse.
With a culture promoting from within that within several of their key leaders have come from other internal positions.
You, a former chief therapy officer from another inside affiliated operation himself has leveraged his expertise and help mission become known for their amazing patient outcomes and successful transitions back to home.
Matt Enrique are always looking for new opportunities to expand their service operations up the acuity chain to better serve their local health care markets needs in spite of continuous improvement since acquisition over this last year. They have managed to grow occupancy by 4.3% revenues by 21.6.
8% and earnings by over 3.6 times.
They have an impressive forestar CMS rating and are truly a facility of choice in San Diego with much more runway to improve as they continue to innovate.
All of these examples demonstrate that even in an ever changing environment through the right partnerships and superior outcomes were able to drive significant organic improvements and all of our operations. We are excited about the progress some of our underperforming operations continue to make but we want to emphasize the tremendous potential there remain.
Within our existing portfolio not to mention the enormous opportunities for future disciplined acquisitions.
For the second time this year, we increased our 2019 annual earnings guidance to between $2.24 and $2.31 per diluted share an annual revenue of between 2.35 billion and 2.4 billion.
Overall, the midpoint of this guidance represents an increase of 21.2% over ensigns 2018 annual earnings.
When adjusting for only the fourth quarter impact of the tenant spinoff. This newly increased 2019 guidance translates to between $2 in 15 cents and $2.21 per diluted share an annual revenue of between 2.27 billion and 2.3 billion.
We're very pleased with our performance so far this year and are confident that our local leaders will continue to adjust to local market conditions that we will continue to carry this momentum into the fourth quarter and beyond. We're also very excited to give you our 2020 annual earnings guidance of between.
In $2.22 and $2.30 per diluted share an annual revenue guidance of between 2.3 billion and 2.35 billion, which does not include any of the results from the spend at spun out tenant businesses, we're very optimistic that with it.
Continued upside that is inherent in our portfolio and attractive acquisitions on the horizon.
We will be able to continue to meet or exceed our pre spin growth rates to underline this confidence the midpoint of our 2020 guidance represents an increase of 18.3% over the midpoint of our 2019 full years spin adjusted earnings guidance.
Which is between a dollar and 88 cents and $1.94 per diluted share.
As we said in the recent past the primary drivers of our strong results are exceptional local leadership high quality healthcare outcomes strong regulatory results.
Healthy occupancy and consistent collection efforts as we have focused in these areas. Our local leaders are more and more successful in driving strong relationships with acute in managed care partners, which continues to be and ongoing advantage. Our focus isn't just on skilled occupancy.
It's developing an appropriate mix across all payer types that fit the unique needs of the markets we serve.
Thanks to that to the did our distinctive local leadership model and our disciplined real estate investments and acquisitions. We are confident that this performance is sustainable over the long term.
We believe we're on a path to make up for all of Pendants 2019 earnings by the end of 2020 and that we haven't even come close to reaching our full potential to do so it will take the relentless commitment to our culture and the repetitious adherence to sound fundamentals and with that I'll ask.
I had to give us an update on our recent investment activity Chad.
Thank you Barry during the quarter, we paid a quarterly cash dividend of foreign three quarter cents per share.
We have been a pit dividend paying companies since 2002 and have increased our dividend every year for 16 years.
Also during the quarter and since we announced the acquisition of one management arrangement for a hospital based skilled nursing operation in California, one skilled nursing facility in Utah.
One newly constructed facility in Arizona, one skilled nursing in Idaho, and one independent living operation in Utah that as part of a healthcare campus, we have been operating for several years.
These additions bring our growing portfolio to 202 skilled nursing operations 27 of which includes senior living operations across 14 states.
Also enzyme owns the real estate of 81 of our 260 healthcare facilities.
Even though we had a solid year on the acquisition front. So far we expect several acquisitions that we've been working on for for months to close in the fourth quarter or early in the first quarter of next year.
Our pipeline remains very healthy, but we continue to be very selective and are keeping plenty of dry powder on hand for what we believe will be an increasingly more attractive buyers market.
We're very excited to grow within our existing geographical footprint and we'll continue to do so as we see significant advantages to adding strength in markets that we know well.
Including some of our newer emerging markets as they continue to mature and prepare for growth.
We continued to methodically add value to our real estate portfolio by improving the operating results in our owned operations and by acquiring additional real estate assets.
Since we spun out 94 of our real estate assets through Caretrust read in 2014, we have added 198 operations and acquired 81 real estate assets.
As we look to our past and what we have been able to accomplish with our real estate. We're very excited about the opportunities we have to unlock the value in our own real estate in the future.
In the meantime, our focus is on continuing to build equity value in these assets most of which were distressed at the time, we acquired them and are still maturing into enzyme caliber operations.
Our unique entrepreneurial culture, which led to the spin off of our home health Hospice and senior leader living businesses remains alive and continues to thrive.
As we have emphasized repeatedly over the last several quarters, our home health hospice and senior living leaders have created significant value as they've embraced and applied enzymes Innovatively leadership and operating model.
As two distinct but very healthy enterprises. Both organizations are now poised to adapt to the ever changing needs of our patients payers and providers within the continuum of care.
The spinoff shines a light on the value that we have created and presents two very attractive investments that provider partners and shareholders the opportunity to share in that value now and over time.
We have several other post acute related new ventures, we are growing and look forward to watching them follow a similar path as our pendant group partners. While these businesses are relatively small today, we're excited to support them and their growth as they applied proven enzyme leadership and operational principles to their respective businesses.
With that ill turn the time over to Suzanne to provide more detail on the Companys financial performance and our guidance Suzanne.
Thank you Chad and good morning, everyone detailed financials for the quarter are contained in our 10-Q and press release filed yesterday and additional highlights for the quarter included consolidated GAAP net income for the quarter like 27.2 million, an increase of 30% and adjusted net income was 30.9.
An increase of 24%.
Consolidated EBITDA for the quarter with 52.69, an increase of 26%.
Adjusted EBITDA was 58.5 million an increase of 21%.
We also want to point out that we have made very few adjustments between GAAP and non-GAAP numbers.
For some of those adjustments relate to the removal of cost associated with the spinoff transaction and share based compensation.
Other key metrics as and for the period ended September Thirtyth included cash and cash equivalents, a 44 million cash generated from operations of 137.6 million. We currently have 195 nine of availability on our new 359 revolving line of credit.
Our lease adjusted net debt to EBITDA ratio decreased again in the quarter to 3.72 time and as a reminder, this is even after we've invested 660 990 acquisitions since we spun out the rate.
On October 1st 2019, CMS is payment reform for skilled nursing called patient driven payment molla, our PDP and went into effect.
Our interdisciplinary team, which has always been relentlessly focused on the quality and if this outcomes have been tirelessly working on implementing the new system.
Well, we would expect that we would not be perfect from the onset we believe that the long term impact at this new system looks celebrate our strategy accounting for more complex patients.
As Barry mentioned, we raised our 2019 annual guidance and translated the guidance to incorporate the fourth quarter impact.
With that.
He between $2.15.
Slide 21 cents per diluted share and revenue between 2.27 billion and 2.3 billion.
The increase 2019 guidance is based on a tax rate of approximately 25% the inclusion of acquisitions did they ended the year.
The implementation of the new patient driven payment model PDP.
With that primary exclusions coming from.
Spinoff transaction costs and stock based compensation.
We also provided guidance for 2020 with annual earnings guidance at $2 in 22 cents to $2.03 per diluted share and annual revenue guidance at 2.3 billion to 2.35 billion.
The midpoint of his 2020 guidance represents an increase of 18.3% over the midpoint of enzyme 2019 full year spend adjusted earnings guidance, which is between $1.88 and $1.94 per diluted share.
The 2020 guidance is based on diluted weighted average common shares outstanding of approximately 57 point.
6 million a tax rate of approximately 25%.
Inclusion of acquisitions expected to close in the first half of the year exclusion of losses associated with the startup operations, which are not yet stabilized the inclusion of anticipated Medicare and Medicaid reimbursement rate net of provider tax with a primary exclusion coming from stock based compensation.
In order to provide adjusted guidance that removed.
From our results, we adjusted EPS by 16% and revenue by 13.8%.
Falling was used to determine the remaining and thank contributions to result.
Enzyme historical consolidated GAAP results for the six months ending June 2019.
Removing all direct tenant operational results.
And projected tenet rental revenue.
Adding an additional general and administrative saving and then applying non-GAAP adjustment for the remaining in front entity.
Additional factors that could impact quarterly performance include variations in reimbursement distance delays and changes in state budgets seasonality occupancy and skilled mix the influence of the general economy, and our senses and staffing the short term impact of our acquisition activity variations and insurance accruals and.
Other factors and with that I'll turn it back over to Barry Barry.
We have always aspired to be a leadership company above all else developing outstanding entrepreneurial leaders is our most important priority.
As we do so creating a pathway for each of these leaders so that they can experience with so many it insein have already experience is a key strategy to helps attract and retain the best in the brightest.
Our organization has created multiple pathways to achieve the success that so many outstanding leaders deserve, including the amazing opportunity that exists within our core business and the new business venture program.
We are encouraged that so many are starting to truly understand what insein really is and our story is continuously gaining traction it's opportunities like our spin out as well as the incredible shared upside with their local leaders that have and will continue to allow us to attract such amazing talent from.
All walks of life to post acute care.
Once again, we're enthusiastic about our guidance for the rest of 2019 and 2020, while we're constantly looking closely at areas that require improvement we have tremendous confidence in what we can achieve as we make those needed adjustments and remain true to our principles and arm.
Model.
We'll now turn to the Q in a portion of our call. Valerie can you. Please instruct the audience on the Q and a procedure.
Thank you, ladies and gentlemen, I'd like to ask a question. Please press Star then one on your Touchstone Telecom.
Again, if you would like to ask your question. Please press Star then one.
Our first question comes from Chad Vanacore Stifel. Your line is open.
Hey, good morning, this is kind of on for Chad.
This asset.
Okay first question on the guidance for 2020, and just thinking about.
Position pace given that you guys have the spend behind you and you're able to do.
A number of acquisitions in the quarter, how should we think about acquisitions going forward into 2020 and whats included in that 2020 and guidance as part of the acquisitions are concerned.
Yes. Thanks sets so as I've said in the prepared portion of our remarks, we expect to have several deals that we've been working on for months closing in the fourth quarter and maybe early.
Next year.
And then we also have some visibility into sort of deal flow. Following that what's included in our guidance is deal flow unexpected closings through the first half of 2020.
But can you guys quantify that is in terms of like number of.
These and.
Maybe EBITDA.
From those deals.
So I think when we look at it is actually kind of again, what we've done so far this year. He now we think that Q4 is going to be pretty stronger quarter of acquisitions.
Q1, say I think there we're going to have.
I'd get an added acquisitions in Q4, and then the rest of those flow into Q1, and I don't think we've quantified the number but.
That's that's really included in that low end does the guidance is having does acquisitions kennen.
And just as a reminder, Seth.
Most of what we're Biraj does is the turnaround in nature and so it's more potentially an impact on revenue, but not necessarily on EPS.
Understood. Thanks, and then when we talked about PD PM last quarter.
No I understand we only have one month under our belt with the new.
In a model, but it seems like we were talking about this is having a net neutral impact on financials and now that you guys have had a month of experience has that changed at all or how should we be thinking about that new system.
Yes, the same way Seth I mean, we yes, we have a month under our belt, but it's not even a completed month.
We we do we do contemplate PD pm in our guidance.
But we can tell you that we the impact is a net neutral impact as far as how we see things into 2020. So we're not we're not giving ourselves a boost or or any kind of.
Negative impact from it as we look forward.
All right Great and then just last question switching back to acquisitions I understand that.
Are you, you're buying underperforming assets and turning them around and smaller markets and as those.
Markets improve I mean, what's the timetable for when you guys kind of going through a new market and bill.
Size and scale and then start expanding in those markets.
Yes, it really varies Seth.
Just depends on.
The I guess the nature of what what we're buying in the conditions in that market I mean, theres theres been some that have happened within a year and some that are taken several several years going into a new state than a new market in particular is difficult and.
But especially because we are buying these turnarounds, you're introducing yourself to a.
A brand new healthcare market and the continuum of of partners is new the managed care relationships are different.
The state regulations on the state regulator relationships need to be built and develop so it can take several years before we're comfortable expanding and some of these newer emerging markets.
But that said.
As I mentioned in again earlier I think we're we're getting to a point in some of our newer states that we're going to be prepared to grow and we're hoping we can do that in 2020 in some in some respects.
And.
The extent, we do I'll just tell you we don't anticipate doing doing it in a big way, we'll continue that sort of follow our onesie twosie approach as we do that and grow in a disciplined fashion, but but the excited about the progress we're making in some of our newer markets and newer states and.
And look forward to building upon those in an expanding our footprint and Seth I'll just tell you what you know.
We're seeing an enormous amount of opportunities in some of our strong states and because of that.
We certainly give those states a priority, where we're performing well and we can strategically infill and even add to our strength. The those opportunities will continue to take priority over expansion into new markets.
All right great. Thanks for that color and then just in terms of assets you guys are buying do you have any information can share in terms of what.
You are paying maybe like price per bed for these skilled nursing facilities.
So on average for 2019, we paid about 50000 per bed, obviously that ranges, depending upon where the asset and data and what can condition. The acid is in Nebraska, whereby in California, obviously, the assets going to be a lot more expensive than that persist for buying and yes, and other markets like Texas.
That absolutely cheaper than that on average and I'll just add to that some of the assets. We purchased so far this year or newer as well, which then also impact price per bed.
Okay.
Great and then what's driving this more attractive buyers market as the just the complexity inherent with the new patient care and payment model on the small operators struggling or is it something else.
Yes, I think it's I mean, that's certainly one of many factors. It's this is a business that is becoming increasingly more difficult for the small operators.
Technology requirements than.
Just the demand that our partners or are making for information gathering that information and reliable way and.
Yes, there is.
100 different reasons, we could go through but I guess the other thing I'd point to is we also are seeing a lot of deals out there that.
Because of really aggressive rents and escalators a lot of folks are not being able to cover those rents and so we're being presented with opportunities many of which rose we're looking to close here in the next quarter or too.
Where the outgoing operator just.
It is either in bankruptcy or on the verge of bankruptcy because of the rents are just too aggressive.
So lot of time, that's just.
Real estate transaction that was.
I guess done in a way that didnt allow for long term health of the operation.
Got it sounds like some good opportunities thanks for taking my questions.
Thanks.
Thank you next question comes from Frank Morgan RBC capital markets. Your line is open.
Good morning, Frank Good morning, good afternoon.
Hey.
Just to kind of tag on that last question. These opportunities that are coming up in you referred to the rent coverage being.
Non existant on those kind of assets will you actually have the opportunity to buy those are you or will you just step in and assume a rent or or a reset ran just curious about the acquisitions that are coming up how much of those might be owned versus just assuming the lease.
Yes, it's a great question Frank.
Yes definitely in some cases, we get to acquire the real estate than.
But the ones we're looking at here in the near future I'd say.
Half or 60% of them, we're buying and ended extent, we're leasing just to be clear. It's it's going to require a reset for the rest of theyre not covering then.
Typically going to result in a reduction.
But but that said.
If the least amount is attractive and we can we can see a pathway to healthy coverage.
Yes.
And maybe it's just sort of part of a at an overall negotiated deal with with whoever the landlord might be.
We do both.
Gotcha, and I think I heard you say that in terms of your acquisition activity that a lot of this is going to have a priority into your existing markets, where you already stronger. So im just curious when we think about the time to turn those assets.
Would it be too much of a straight to think that maybe you could do that a little faster since you're in a market, where you already have strength and presumably you could.
Lever some of your relationships with those payers.
In the narrow networks that you have so im thinking about that right or is that is that too.
Is that a little too aggressive no no you're thinking about that right and that's that's precisely what what factors in to US looking at an asset in a strong market is that that timeline to to being an accretive asset for us. So yes. Your your assumption is right.
And.
While we get some funny music in the background.
Sorry about that.
I don't know what that was but.
But yes no.
But nevertheless, remember to Frank I mean, even in our markets where were strong it fits or if it's a real turnaround.
No the path might be shorter, it's still sometimes theyre, they're real tough turnaround. So so it's still it's not always an out of the kind of phenomenon for us.
Gotcha Committee lumber Suzanne when you when you talk about those assumptions.
Just curious about on the rate side, obviously, we know the rate on the Medicare SAB, but what are you what's what's embedded in your guidance in terms of.
Average growth in Medicaid rate.
So kind of consistent with what we've done in the prior years Frank for tenants on that 1% increase on average across all the states. There's some state because we've been talking about lately have continue to implement additional supplemental revenue program and where big participant and does program. So Steven particular state might not be.
Getting a medicaid rate pre payable to cascade at by having stronger clinical performance and that's what we've built in.
Gotcha and in terms of just the I know you touched on the PDP.
So far.
Taking a mutual stance on that but have you identified anything yet that might be and opportunities that would suggest that could be a positive.
A positive impact over the longer term and if so kind of and what areas any color there would be appreciated.
Yes, no I.
It's a good question, Frank and I think the answer to that is evolving in the basic answer to the question is yes, right I mean.
We are able to we're able to capture better reimbursement on on really complex patients and as you know.
That's kind of been our AR.
Our ammo from the beginning is to make sure that we have the clinical capability to take on.
More and more acute patient type.
So so look our feeling is that there is definitely opportunity there as we roll forward and our and our success with with being able to match up the reimbursement with the with the patient mix that we have is is an opportunity for us it's not necessarily one that we felt comfortable being.
Aggressive in terms of.
Adding some boost into our guidance because of that but we definitely do see kind of anecdotal opportunity there.
Got you last one I'll hop just curious you referenced some of these new businesses that your cultivating new want to share any details on any of those what we might get to see down the road. Thanks.
Yes look they're real small right, but we feel we feel pretty excited about the businesses that we're we're working closely with that are that are still kind of in those nascent growth growth stages, our mobile diagnostics businesses is encouraging our transportation business is encouraging.
Thing and we have a couple other real small ventures that we have a lot of confidence in that could be that could that could have some good growth, but they're all tracking along as we'd expect to there's usually some hiccups when theyre, when they're really new and small, which we've gone through some of that but but each of these businesses on a.
On a healthy path to being self sustaining and we have we have a lot of optimism about.
Where those are headed and always looking for additional opportunities there that or post acute care related and so we've got a bunch of that happening as well and.
It's just such an grain part of our of our culture that entrepreneurial spirit is a huge part of who we are in and the leaders that we attract and so we'll continue to to do that and are excited about it.
Thank you.
Thank you.
I'm showing no further questions at this time next turn the conference back over to Bury port for any closing remarks.
Thank you Valley Valerie and thank you everyone else for joining US today, we are grateful for for the questions and the support and with that lender call.
Thank you ladies and gentlemen, this does conclude today's conference. Thank you for your participation have a great day you may all disconnect.