Q1 2020 Earnings Call
Good morning, ladies and gentlemen, and welcome to the USA technologies first quarter fiscal year 2020 earnings conference call. At this time, all participants are in a listen only mode.
I never will conduct a question answer session and instructions will follow at that time.
If anyone should require assistance teleconference. Please press Star then zero on your Touchtone telephone as a reminder, this conference call is being recorded I wouldn't like to turn the conference over to your host Monica Gould Investor Relations for USA technologies.
Thank you Whitney and good morning, everyone welcome to the USA technologies first quarter fiscal 2020 earnings conference call.
With me on the call. This morning are done laden chairman and interim Chief Executive Officer, and Glenn Gould interim Chief Financial Officer.
Before we begin today's call it would like to remind you that all statements included on this call.
Other than statements of historical fact are forward looking in nature actual results could differ materially.
From those contemplated by the forward looking statements as result of certain factors, including but not limited to business financial markets, an economic conditions, a detailed discussion of the risks and uncertainties that could cause actual results and events to differ materially I'm such forward looking statements included with our filings.
Well the FCC in in the press release issued earlier this morning.
Centers are cautioned not to place undue reliance on any such forward looking statements, which reflect management's views only as of today. They are made.
See technologies undertakes no obligation to update any forward looking statements, whether as a result to new information future events or otherwise. This call will also include a discussion of certain non-GAAP financial measures that we believe are useful for among other things evaluating USA technologies operating results.
These non-GAAP financial measures or supplemental too and not a substitute for GAAP financial measures such as net income or loss details of these non-GAAP financial measures presentation of the most directly comparable GAAP financial measures and the reconciliation between these non-GAAP financial measures is.
Was the most comparable GAAP financial measures can be found in our press release issued earlier. This morning, which has been posted on the Investor Relations section of our website at Www USA truck Dot com.
And with that I'd now like to turn the call Liberty done laden Stan.
Thanks, a lot of got and good morning, everyone.
Thank you all for joining todays call.
But having just completed my third we as a CEO I've not had the opportunity to meet with many of our top customers.
And employees.
These meetings have been very productive.
And if confirmed that our customers are pleased with the U.S.A.D. solutions deployed.
You have enabled them to it frees revenue and lower their operating costs.
Our discussions we've also identified some areas for improvement.
Good evening, better job, serving our customers and I'll discuss some of those later in my remarks.
First I'd like to review at the highlight a few key highlights of our first quarter fiscal 2020.
We are pleased to report a solid first quarter performance led by a resumption of strong revenue growth both year over year and sequentially.
Total first quarter revenue was your record 42.1 million, reflecting a 26% year over year and 10% sequential growth.
The fourth quarter fiscal 2019.
Revenue growth was driven by the addition of 900 new customers.
46000, net new connections, which brings our total connection count to over 1.2 million importantly, we continue to had 100% customer retention.
Our unique value proposition remains compelling to customers, both large and small and this is reflected in our continued ability to maintain or industry leadership position, serving almost 19000 customers well, winning new business and enhancing the competitiveness of our offerings.
For example, you actually he was recognized by retail T.I.E.L. outlook in March as a top 10 retail payments consulting services company for 2018 and in August as a top 10 retail kiosk solution provider.
Further validating the leading innovations we offer in self serve retail and how our best in class Ed and payment in logistics system is enabling operators to connect with consumer preferences advantage simplify and optimize their business.
We continue to expand into additional verticals outside of our core vending market and to that end.
We signed two important supply agreements this year.
Third.
We're working with CSC service work.
We could see us sees air vending machines.
Higher in place in the USA sees the state of the RV Ford connection cashless technology platform and upgrade the technology and other machines.
We also establish the supply agreement with a large amusement operator.
Our solution in the arcade games phase.
Finally, we announced a partnership with CNG marketing and sales, which will allow CNG the resale U.S. Eightys premier payment technology in enterprise service.
Its national customer base or 2000 unattended retail operators.
Throughout the year, we've also worked expand or seed market software offering.
Which enables owners and operators of Micromarket companies to benefit from one standard set of tools.
Including simplified route management.
Fishing warehouse free picking.
In a single reporting interface and cash accountability.
As we look at how do we expect the value proposition, we provided to customers and strengthen.
As seed market the delivery products mature.
USAID. He is a clear solution provider for operators looking for a single platform to help the netted all lines of their business vending post the asset markets.
We're also in a position today well operators to diversify it evolved for being vendor operators.
Truly being unintended retailers.
So that and I'd like to stick with you about the path forward.
Our expectations for 2020.
First.
We have launched a series of initiatives to reduce or operating expenses.
Got it set up and have set a target of reducing or selling general administrative expenses.
$8 million annualized over the next 12 months.
Plan to reinvest a portion of these cost savings that you enhancing our customer service organization.
They said the actions we've taken so far in the second fiscal quarter, we've achieved $2 billion, an annualized cost savings.
These cost savings have and will come from a variety of efforts.
Putting a reduction in professional service these.
The renegotiation of or payment processing term.
The implementation of sales tax election, and improved management of our hardware supply chain.
Additionally, we've retained microwatts suffer who is the former CFO of Ingenico North America World pay Investor.
<unk> Chief of staff to me to work with their senior management consulting basis, we identify additional cost reduction opportunities and to assist in the execution of those initiatives.
With respect to our efforts to improve their customer service organization.
We have for both promoted May have Dasgupta, chief marketing officer reporting directly to me.
Amazed deep industry experience and strong customer relationships make heard the clear choice.
Lead our efforts in communicating with their customers and the market.
I'd like to speak briefly about our listing on NASDAQ.
As you know on September 24.
We disclose the genetic hearings panel notified us that issued a final delisting determination.
For U.S.A.D. Securities.
As a result of our failure regained compliance by September 23.
As such our securities were suspended for trading on NASDAQ on September 26.
We are crest, we requested an appeal.
We are waiting a determination, which we expect to receive before the end of the year.
If our appeal is not granted.
We will then refile for listing on NASDAQ, which could take up to 90 days.
As such we expect to be back on any I'd say by the end of March.
We realize that this de listing has created liquidity challenges for our investors.
We appreciate your continued support.
We're also planning.
For our annual shareholders meeting, but before we do so we want to ensure that you're able to address all of the items that NASDAQ may require us to remediate and get back.
I had listed on NASDAQ.
We are waiting additional clarity from aspect on these remediation actions and we'll schedule. The annual meeting as soon as we have a clear sense of the items that we will need to address.
Finally in order to further strengthen our balance sheet, we plan to sell these receivables.
Which we generate eight to 10 million in cash proceeds.
The company.
We expect this transaction to close late in the second quarter for early in the third quarter or the fiscal 2020.
ER with respect to the outlook for 2020.
We now expect revenue, we continue to affect revenue to be between 165 and $175 million and expect to add 170000 290000 net new connections a this year.
Based on the strong performance in the first quarter I would expect that we would be at the top end of both of those ranges.
Adjusted EBITDA was lower than expected in the first quarter fiscal year 2020.
Primarily because the company determined that it could only add back a portion of the increase professional service fees related to its restatement audit.
Despite the first quarter loss, we continue to believe that we'll produce between 10 and $11 million an adjusted EBITDA.
For the full 2020 fiscal year, although I would expect that we'd be at the low end of that range.
With that I'll now turn although I'd just add one other thing.
It is is that you probably also saw the a the board made a determination on Friday.
Two to accept a allied motion or his resignation.
And retirement as a director Alice provided tremendous service to the company, serving as a board member and over the past year as chairman.
Personally I will very much miss or ALS advice and guidance.
And the company will also Miss his wife Council.
At the a pot accepting his resignation the board asked me to served as executive Chairman Dr. agreed to do.
And I believe sure scope has agreed to serve as our lead independent director.
Let me just let me just reiterate for a moment my key priorities as I've no had a three to three months to set a direction at least for the next 30 to 60 days for the company.
The first and most important priority is to get back on NASDAQ.
Second.
An almost as important it's the lower operating expenses, so that we can better serve our customers and our investors.
Third we will continue to expand into new verticals and I believe that based on the initiatives that we have right now in the pipeline, we'll see some additional new verticals added this quarter.
Fourth we need to continue to allow our customers will even better customer service and fifth we're going to improve our already strong capital position through the sale of receivables.
With that I'll now turn the call over to Glenn to provide details on our first quarter results.
Thanks, Tom and I called me, Thanks to everyone for joining the call good morning.
I'll start by providing an update on some of the key financial highlights since our last earnings call certainly recognize that it's been some time since our last earnings call. We appreciate your patience. We're excited that we cannot dialogue with you in this way.
And how these communications.
After the financial highlights since our last earnings call I'll review, our financial and operating performance for the fourth quarter 2020 of our fiscal year 2020, and I'll conclude with an outlook.
All right here 2020.
In October we reported all financial and operating results for the fiscal years 2018 in 2009.
We completed always statement of certain select financial data for fiscal year, 2015, 2016, and 27 team and quarterly periods from September 2016 to March 2018.
The result of these filings and all the Q1 report that won't come out later today.
Please to report that we are now current on our periodic filing requirements.
[noise] made a number of improvement to our control environment, we have enhance our internal compliance to the creation of a compliance committee of the board of directors and hired a chief compliance officer, who reports directly to the committee. How these additions have provided great value to our company already and we continue to seek.
Improvement in these areas.
Additionally, we took significant steps and improving our financial position.
Subsequent to quarter, how do we entered into a insight into an equity financing and that arrangement with until a capital that will support operating activity.
Under the agreement, we received approximately $20 million from the sale of a common stock under private placement and we entered into a commitment for a $30 million senior secured debt facility.
So the three primary reasons for this financing from our perspective.
We wanted to replace the capital that we spend on the investigation the restatement and the audit fees. We wanted to retire the JP Morgan Dad, and we wanted to return the company back to our strategic growth plans, which has gone has described we are well underway appealing oh. So from these perspective as we're able to achieve what we said.
How to do with its financing.
Looking ahead, we plan to have gone has mentioned we plan to further strengthen our balance sheet by selling the portfolio for at least receivables.
Tom mentioned, we expect us to generate approximately $8 million to $10 million of additional capital for us and we expect this will close late in Q2 or early Q3 of our fiscal year 20 point.
Moving onto our fiscal first quarter results were pleased to deliver record revenue during the first fiscal quarter I have gone as mentioned the total revenue grew 25.7% year over year.
10.3% sequentially over the last quarter.
It's a $42.1 million.
License and transaction fee revenue increased 16.8% year over year to $33.8 million and accounted for over 80% of our total revenue in the first fiscal quarter.
Equipment revenue increased 82.7% year over here to $8.3 million.
We continue to make strides in growing our connection base in customer count has us well sell diversified suite of services to an expanding customer base.
Don mentioned, we added 46000, not new connections in the first quarter, bringing our total to over 1.2 million connection up 16% compared to the same quarter last year.
We also added as Don mentioned 900, new customer ending the quarter with a total of 20300 customers an increase of 19% compared to the 17000 customers in the same quarter last year.
Turning to margins are go its margin of 23.9% decreased from 32 pool, 0.2% when the first quarter fiscal year 2019.
The decrease was primarily related to the lower equipment margin due to a large equipment sale makes a strategic.
Somebody that's that's you have seen tomorrow that Tom mentioned in his comments.
That's a very large deal as we said in the past our strategy is to use equipment sales has an enabler.
From Dr., Paul driving longer term higher margin license and transaction.
On our license and transaction margin of 36% how does remain consistent compared to the same period last year.
Looking forward, we expect our LMP margins to remain in that same range. We are exploring a improvements to our cost structure, there and expect to have improvement now, but we expect those improvements over the next two quarters modest and guide to the same 30 645 to 47.
With that range flaw Alan Tse margins.
Our equipment margin was 25.7 per cent compared to the onsite negative 25.7% compared to negative 7% last year due to the strategic large equipment order we made during the quarter I mentioned the pop.
[noise] those are our margin the omni equipment side. It will be modest we do expect them to be better than the negative 25.7% of calling in from the first quarter, but expect themselves to be in the high zero to a low single negative single digits going forward in fiscal 2000.
Tony.
I've gone mentioned, our adjusted EBITDA was lower than expected came in at negative $7.5 million compared to a negative 2.1, MELA I'm, probably positive $2.1 million and the same period from the prior year. The primary drivers of that that variance.
As Tom mentioned was the increase.
Professional service fees, we recognized and always Damon and auto project as well as.
The difference in our equipment margin has we've referenced.
[noise] on the F. DNA side I've seen Jay expenses for the first quarter were $18.2 million more 43.1% of revenue compared to $9.5 million for 28.2% of revenue over the prior period.
<unk> expenses increased year over year, primarily due to the increase in professional service costs related to the company's restatements and audit activity.
As Don mentioned, we have a number of initiative to increase progressed to reduce our operating expenses and with the completion of our filings. We expect the professional services expenses to decline substantially in the second fiscal quarter.
Overall, we expect that certain expenses in the second fiscal year 2020 to decrease as the company is completed our multi Korea the audit.
And and or same on project.
non-GAAP net loss was.
$8 million or negative 13 cents per share compared to non-GAAP net income of $3 million or one cents per share at the same period last year.
Looking at the balance sheet, our cash balance at the end of the first fiscal quarter with $25.5 million compared to $68.3 million at the end of the first fiscal quarter last year.
Does not include proceeds from the Antara transactions, which were affected after the close with a core.
Including these transactions our cash balance grew to $42.2 million as of November 1st.
Not working capital Polish total negative $9.7 million at the end of the first quarter.
Compared to $2.8 million at the end of the first quarter last year.
Note that working capital has also improved since our financing transaction with Antara.
Subsequent to quarter end, we drew $15 million on our term facility with Antara and use the proceeds.
In part to repay that outstanding balance on our revolving line of credit with JP Morgan of $10 million and associated transaction expenses. The JP Morgan got is now complete we retired.
Turning to our outlook, we as Dawn mentioned, we are where you for reaffirming our guidance for fiscal year 2020, we expect our fiscal year 2020, robin need to be in the range of 165 million to $175 million.
We expect to add between 100 and somebody in 190000 net new connections to our service.
In spite of our Q1 mess on our adjusted EBITDA with our deliberate focus on our cost structure and I have seen they spend we believe that adjusted EBITDA will be in the range of 10 million to $11 million.
I mentioned, we are guiding to be lower end of that range.
Due to our Q1, Matt.
Overall this is.
This is the completion of an enormous amount of work I'd like to thank our entire finance team, our legal and accounting.
Partners for their amounts efforts that have gone into this process or we are delighted that we're back on file and again that we can engage in these conversations with you again looking ahead, we believe that our scalable financial model through our recurring revenue streams improved financial position and enhanced compliance control position us very water.
Capitalize on the growth opportunities ahead of us and the strategic clients that we are putting into place and an acting upon.
This concludes our financial update alternate.
Call back to Don for closing remarks. Thank you very much thanks, Glenn before I open up the line for questions I'd like to a briefly address.
The public statements made by one of our shareholders Hudson Executive capital.
A truly affected intensive dominate several individuals to stand for reelection sort of board of directors.
As you have seen for the press release issued releases issued by the company members of the board and management have engaged in good faith discussions with Hudson.
We continue to be open to a constructive dialogue.
The purpose of today's call. However is to discuss our earnings and as such I would ask that you keep your question.
Confined to our earnings for the quarter with that.
We can open up the line for questions.
Ladies and gentlemen, if you have a question at this time. Please press star and then the number one under Touchtone telephone. If your question has been answered well you wish to but maybe yourself from the Q. Please press the pound key.
Your first question is some George Sutton.
Good morning. This is Adam on for George Thanks for taking my question.
Don and Glenn I, just wanted to get a little clarification you talked about.
Reducing opex, but as well or adding different verticals could you go into more detail about the balance there between growth and profitability.
Hi, I mean, we have focused on both areas.
Certainly with our cost structure and.
Our our struggle historically have been positive on our operating income we have immediately looked at them.
Improvements that we can readily make on our S. DNA line that is the focus of ours, but at the same time I know that that.
Improvements that we are seeking to make our in no way impacting our ability to grow the growth.
We have very deliberate strategies in place that are being executed executed to help us a explore further expanding our services into our white space in our market as well as has done as mentioned explore other.
Vertical adjacent fees that we have so these are in process, we continue to pursue them, but they're really the wall a dual path. So we're trying to make improvements in both areas and it's certainly possible to do let me just add some color to glens answer and and address part of it.
Location I think in your question that moving into new verticals is a is a costly proposition as we expand the capabilities of our product.
We have had initiatives are too.
Or be able to address additional vertical markets for some period of time.
And so what we're now seeing is the.
Is the conclusion of that product development and sales cycle are generating some returns on investments made in earlier period. In addition.
We believe that the vertical markets that we can continue to attract will require a relatively low product investment to enter into those markets and so those are the markets that we're pursuing most aggressively.
Great. Thank you.
Then in terms of.
Getting real listed on the NASDAQ what items are you already aware of where do you feel that you sit in that process. So far and then does that also include holding an annual meeting.
So so let me answer the first part Oh, we are not aware of the remediation requirements are conditions at Nasdaq.
May impose we're still going through the appeal process, we have to complete the appeals process before we can begin re lifting.
We are.
You know to some extent, we're in a little bit of uncharted waters and so we don't know exactly what NASDAQ may require as you know whoever it is a good oppose the number of conditions during the remediation process and we suspect that they will have additional things that they may or may require us to do and.
Into the answer to your last question is yes, I expected to NASDAQ requirements will include holding an annual meeting a we just want to make sure that we understand what other requirements or maybe impose that may impact. The annual meeting. So that we're prepared to address those are the same time and get us back on NASDAQ and provide liquidity.
Back to our investors.
Great and then just going through this process, especially considering other vertical markets has there anything any discussion of potential M&A.
So most of you know my background, you know that I've spent my entire career doing deals and and so I think about doing deals in nicely.
And I I suspect that we will continue to have conversations.
Internally and externally about whether that's an opportunity for the company.
Great. Thank you.
Your next question is some Jason Schmidt.
Hi, guys. Thanks for taking my questions. Just wondering if you could comment on what you're seeing from a competitive landscape and more specifically if you've seen your competitors become more aggressive pricing over the last year.
Yes.
[noise].
The the competitive market remains very strong.
We are clearly the leader in a in vending.
But particularly in some other vertical markets, a we do see very strong competition.
In those markets that we see a very strong competition.
In the global markets as well.
Okay and can you just comment on how you're thinking about the cross selling opportunities for the cantaloupe offering today.
The sure those efforts have been ongoing we intended to continue those efforts and a and frankly to expand their sales resources to take advantage of those.
And last one for me and I'll jump back into queue.
It's on expanding into additional vertical markets what specific markets outside your core are you. Most excited about or you think provide the biggest opportunity for the company.
Yeah, I think that we're continuing to see strong growth in the micro market area and I think that our software solution is particularly well suited to that market and we need to continue to find a strong partners. So that we can deliver a software solution into that space.
The I do think that the the entertainment space, which we.
Which we closed our first deal in is has a very strong opportunities and.
Well, we also think that a number of our operators.
Have a position and other vertical markets that we ought to be able to cross sell into those vertical markets and we're looking very hard is that once we have a customer relationship to expand the wallet share we have at those customers is a high priority for us.
Okay. Thanks, a lot.
Again to ask a question fresh start wondering your telephone keypad.
Your next question is from Mike Latimore.
Great. Thanks, Yeah, nice to have an earnings call again.
Very good so on that.
<unk> comment I guess.
You talked about you know getting the 8 million in annualized savings. So it shows so should we think about that kind of 18.2 million. That's you know you're going to 16.2 or is that or is that comment I'm sort of incremental to the professional services changes that might might occur.
I would think.
Incremental Mike.
I think the 18.2 was kind of a high point with our audit restatement project and the amount of cost that we had to incur to go through that project those costs will come significantly down it does her outside of the $2 million that dominates matching keep in mind not the 10 million is annualized.
I don't expect that's just a straight $2 million that will come off as came back in a line in Q2.
Well there won't be benefit from from the changes, we're making the largest downturn that you'll see from Q1 to Q2 and a reduction in professional service fees, primarily related to our audit yeah, our audit activity right.
It sounds like HM just to be clear the 8 million annualized savings.
Hmm is [laughter] excuse me is.
Are you, saying they'll be incremental savings beyond that as additional professional services come down I'm, just trying to give a sense of where the like where are the as Ginny line might be by year end, let's say in the fourth quarter.
So I think a quarterly our our run rate is roughly 11 or $12 million.
On our DNA line, I think you'll see that well.
I think, albeit a little higher than that in Q2, but well get down to that same right.
Q3, and start improving on that starting in Q4.
So then just again just to be clear that 18.2 should be somewhere right around 11 exiting the year 10 or 11.
By the end of the year.
Yeah.
Yeah, I would say by Q4, I think that Ah that's a good estimate.
Okay got it [noise].
And then on the.
License and transaction gross margin.
It improved from the fourth quarter sequentially.
I guess can you give a little bit explanation of why is that occurred and then going forward you talk about it being stable I guess.
How should we think about.
The stability there given you know typically the transaction volumes grow pretty rapidly.
Yeah. So one of the drivers of margin is product mix as we add connections and had a our monthly our SaaS software to our connection base.
That's that's how high margin.
Revenue line and I've got product, Mexico continues with additional connections to our surface. That's driving it up I will say that we have activities in place to pursue cost improvements.
On that on our license and transaction fee.
We expect these are the dialogue that we're having with our supply chain with some of the surfaces that go into our license and transaction being a line of revenue a two and improve over this year. So ah with the improvement in the cost structure as well as an additional.
Hi connections with our monthly service fees that we.
Our our enhancing and selling into the market.
That's what's driving the the margin improvement.
Got you want it around that.
I was going you are correct, that's a transaction processing and certainly increasing as well so that is a dynamic that doesn't impact our LMP margin for sure.
Okay, and then [noise].
In terms of the.
Connection guidance for the year.
What it what percent of that wouldn't be sort of the cantaloupe, you know Vms software versus cashless or is that all kind of considered cashless.
Oh, well, it's both had spoke cashless nvme at a we have not.
Gone through the exercise of.
Quantifying and breaking out the forecast between.
The two or to be honest as we're going forward. We look at our company has one company now we have not spent a lot of time bifurcated, what revenues coming from historical cantaloupe, a activity versus you know where two years beyond the acquisition, we like ourselves a at our south.
As one unified company at this point or to your point, though we do have.
You know these different connections that we tell them, we are seeking to add Vms type services to our platform and as a deliberate strategy that we have we are seeking to add those.
Services to our existing connection base. So that is certainly part of.
The the guidance that that you're referring to Mike.
Right and just last one do you have the amount the dollar amount of transaction volumes in the quarter.
I do not have that at the tip of my tongue. It's it's not something I came for proud with we cannot get that though.
Okay.
Thanks, a lot.
Yep.
Your next question is from Cris Kennedy.
Hey, guys, it's Chris and for Bob Napoli, Thanks for taking my question.
Any update on your long term margin targets. The prior management team had some targets out there any thoughts on those thank you.
Yeah, So I think a Christian the previous guidance in this regard that we have a send out is long term range, 30% to 35% gross margin overall license and transaction fees, 40% to 45%.
I think in the near term well be hard pressed, especially on the total gross margin line to hit that 30% to 35% I think for the near term somewhere in the 26, so perhaps 30% as we improve some of the cost structure.
Our element he revenue Ida online.
Similarly, I think the 40% to 45% as a little aggressive I think for the near term I would say I would say a 36% to 38% is more realistic I think as we continue to look for cost improvements and efficiencies that we are working on we can.
Perhaps improve that guidance upward, but in the near term, that's where I see it.
Okay, and then anything on EBITDA margins longer term.
Yeah. So I think on the EBITDA the previous regime had guided to 15% to 18% again I think that's a little aggressive.
You know if you take our 10 to 11 on $180 million of revenue. That's in the low single digits I think you're guiding to the I'm sorry, the high single digit I think guiding to 6% to 10% in the near term is probably.
Well I would say.
Well, we're looking again in the near term I I'm, certainly not long term, where I think we want to be and we're putting in place some strategies to improve that but near term I I say, that's why we're at.
Okay, great. Thanks for taking my question.
Yep.
I'm showing no further questions at this time I wouldn't I like to turn the conference back to dine late in CEO .
Thank you and thanks for everybody participating in today's call in Florida, the thoughtful questions I strongly believes our ability to make it easy and efficient for customers.
Who adopted deploy our leading technology continues to provide us with a unique competitive advantage.
We remain a trusted brand name known for quality reliability, and innovation and our market leading installed base provides a powerful foundation from which to continue to expand and grow our business.
As we look ahead, we're focused on reaching new customers expanding your footprint with our existing customer base, all while leading the industry in terms of innovation and customer service.
I I shared with you buy five priorities I get back on NASDAQ lower expense base continue to expand into new verticals.
Wow, our customers was even better customer service and improve our already strong.
Capital position through the sale receivables I think you'll continue to see us do that at executing those five priorities.
Thanks again for joining us today for your continued support.
Look forward to updating you on our progress next quarter.
So thanks.
Ladies and gentlemen. This concludes today's conference. Thank you for your participation have a wonderful day you may all disconnect.
[noise].