Q3 2020 Earnings Call
Ladies and gentlemen, please remain on your line.
That's been groups fiscal year, 2023rd quarter earnings call will begin momentarily once again ashwin groups fiscal year 2023rd quarter earnings.
Called will begin momentarily. Please remain on your launch thank you.
[music].
Welcome to aspirin groups fiscal year, 2023rd quarter earnings call.
Please note that the company's remarks made during.
During this call including answers to questions include forward looking statements, which are subject to various risks and uncertainties.
These include statements relating to the growth of future student enrollments booking and ARPU fiscal 2020 revenue growth the expansion of the highest LTV programs.
Expected G and H trends, including fiscal 2020, adjusted EBITDA gross margins expected campus expansion campus capital expenditures and campus operating metrics and generated cash from operations.
Actual results may differ materially from the results predicted and reported results.
Should not be considered as an indication of future performance.
A discussion of risks and uncertainties related to aspens business is contained in its prospectus supplement dated January 17th Twentytwenty. Its form 10-K for the year ended April Thirtyth 2019, and its third quarter 10-Q filed.
With the Securities and Exchange Commission in the press release issued this afternoon.
That's been group disclaims any obligation to update any forward looking statement as a result of future developments.
Also I like to remind you that during the course of this conference call. The company will discuss EBITDA and adjusted EBITDA, which are non-GAAP.
Financial measures in talking about the company's performance.
Reconciliation to the most directly comparable.
GAAP financial measures are provided in the tables in the press release issued by the company today.
There will be a transcript of this conference call available for one year at the company's website. Please note that earn.
Earnings slides are available on Aspen groups website.
S.P. you Dot com.
In the presentations page under company info.
No I will turn the call over to Michael Matthews, Aspen groups, Chairman and Chief Executive Officer.
Good afternoon.
This is Ben another record revenue quarter for Aspin group and I'm extremely pleased with how my team is performing.
I want to acknowledge their hard work and dedication to our mission is to make college affordable again.
At dedication, it's ultimately where produces strong financial results like.
We're reporting today.
Thank you to all the aspirin University, United States University, and AG I employees.
Okay, let's begin today with an overview of the solid results for this quarter and the factors, which drove our growth.
And I will discuss our road map for future growth.
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Before we go over the quarterly results I'd like to connect a few die.
First I'd like to point out that since we began offering our monthly payment plan back in March of 2014.
That's been group averaged over 50% annual growth in the five.
School years thereafter.
We achieved this by pursuing a plan to build a nursing education platform that could meet today's need for affordable nursing degrees.
Subsequently in 27 team, we acquired United States University, featuring their master level.
All family Nurse practitioner degree program and then 2018, we launched our hybrid three year online on campus pre licensure.
Sure Science and nursing program.
These two strategic stuff gave us a comprehensive offering of nursing degree programs.
Increased our addressable addressable market.
And added new programs that brought significantly higher lifetime value degrees into our portfolio.
Most recently our strategy has been to focus our marketing spend on increasing enrollment in our high.
Hi, LTV nursing programs.
As demonstrated in the third quarter results, it's clear that our strategy of prioritizing marketing dollars to grow enrollment in high LTV nursing programs is working.
As evidenced by another quarter of exceptional revenue growth and.
That's 72% increase in bookings.
I'm very pleased that we delivered this level of growth with only a 9% increase in our marketing spend year over year.
Each marketing dollar spent in the third quarter returned a 15.1.
James and a 16.2 times marketing efficiency ratio in the quarter for Aspen University, and the United States University, respectively.
This is an extremely efficient business model.
Keep in mind that each year, our third quarter enrollment is.
Really lower in the second quarter, which is our strongest back to school seasonal enrollment quarter and that this past Q2 with an extraordinarily strong record enrollment quarter.
That said I'm very pleased with our third quarter enrollment growth of 28% year over year to 1000.
The 746, new student.
In the third quarter Aspin University accounted for 1300 71, new student enrollment.
Delivering overall growth of 23% year over year, primarily due to a full quarter of enrollment in our pre licensure.
Yes and programs at both of our Phoenix campuses.
United States University, or U.S. Yoo accounted for 375, new student enrollments, primarily due to FMT enrollment growth.
Our 49% increase in overall enrollment year over year.
As I mentioned earlier, our marketing efficiency ratios also remains very high this quarter.
Every dollar we spent in marketing on Aspen University delivered over $15 in revenue.
For U.S. Yoo, we received over $16 in revenue for every marketing dollar spent.
These results reflect the value of our proprietary Ed Tech platform and the sophistication of our corporate marketing staff.
In fiscal Q3, 2020 bookings meaningfully increased from 15.5 million to 26.5 million delivering an average.
Revenue per enrollment or ARPU increase of 34%.
From $11352 at $15199.
The bookings increased coupled with lower roaming cost is the primary driver of the gross margin improvement of.
700 basis points year over year at 57% in the third quarter.
Internally our units continue to focus on operational improvements that combined with lower in roaming costs.
Oh did it another quarter of positive net income for all three of our business.
At Aspen University online.
Aspens pre licensure, BSN and United States University.
These results underscore the performance of our Ed Tech platform in lowering enrollment cost contributing to the key competitive advantages of lower.
Jewish generate financial flexibility and better outcomes for our students, which in turn is powering our growth.
I can't emphasize enough that are Ed Tech platform is driving value for all our stakeholders.
Our students achieve better outcomes.
It takes.
Down less debt.
Enjoy financial flexibility intuition payment options.
Our business is driving material improvements to our financial performance as evidenced by our adjusted EBITDA margin improves by 15 margin points year over year.
Our.
He is report high job satisfaction and increased opportunity for career growth.
And our shareholders are seeing improving shareholder value based on our high performing differentiated business model.
Longer term our road map it to build out new capacity for our highest.
LTV degree program.
A few our future growth, we strengthened our balance sheet in January with a 16 million dollar equity raise.
And restructured our debt to lower our interest expense and add to convert feature.
Those transactions allowed us to end the quarter with.
Record $26 million of liquidity.
For the past year, we have successfully demonstrated that we can grow these high LTV program with an extremely effective marketing spend.
Recent financing initiatives will allow us to continue investing in new.
Then pre licensure campuses.
Which is the potential 100 million dollar revenue opportunity in the next five years.
We recently announced the locations of our two new campuses for our pre licensure BSN program in Florida and Texas.
Both of which will be enrolling students later this calendar year.
We intend to have 12 campus is operational by 2024.
We also intend to build out exam room in each metro location, where we have a BSN pre licensure presence.
In order to allow for us use MSN SNP weekend immersion in each.
Trial, which will be a catalyst for future enrollment growth in this highly sought after degree.
We continue to invest in our future to deliver long term growth.
Creating profitability and improvement in cash flow from operations.
Given the strong performance in the first nine.
Nine months of fiscal year 2020.
Now expects annual revenue growth to meet or exceed 42% for the full fiscal year based on anticipated year over year to enrollment growth of approximately 30%.
Bookings is forecast to exceed 54% to over 100.
2 million.
We are forecasting ARPU to increase to at least 18% to a full year average over $13440.
Now I'll turn the call over to frames to review our financial results for Q3 and to provide an update on our liquidity.
Thank you Mike.
Good afternoon, everyone.
Going to begin by reviewing our financial results for the 2020 fiscal third quarter, and then provide some insight into this quarter's performance and some commentary regarding our expectations for the coming quarters.
Total revenues for the third quarter were $12.5 million.
Up 48% versus a year ago period.
As Mike indicated our strong revenue growth was driven by new student enrollments, which increased 28% to third quarter record or 17 46.
Our total new student enrollments Ashland University was up 23%.
In the United States University was up 49%.
Strong growth in our higher LTV programs drove bookings growth of 72% to $26.5 million.
Aspirin University had third quarter enrollments of 1371 up from 1001.
112, and a year ago period.
Bookings for this business unit was $19.9 million versus $11 billion in the year ago period.
Hey, you was a significant contributor to our total bookings growth of 72% and is expected to drive continued growth in bookings in the coming years.
You asked you had Q3 enrollments of 375 students versus 251 in a year ago period, an increase 49%.
You asked you bookings were $6.7 million this quarter up from 4.5 million.
Fiscal or an increase of 49% for the third quarter 29.
Okay.
Aspirin groups gross margins for the third quarter improved to 57% up from 50% in the prior year period.
700 basis points year over year improvement in gross margins was primarily driven by our marketing expenses, only increasing 9% year over year.
Sure.
From a unit perspective, asking universities gross margin was 58% in the third quarter versus 45% in the prior year period.
I have stayed universities gross margin was 60% in the third quarter up from 45% in the year ago period.
This gross margin increase reflects the effects of higher lifetime value programs rolling as a percentage of our overall revenue led private Korea pre licensure BSN.
And the FMT programs, we expect this trend to continue as we rollout our campus strategy in the coming years.
Overall total instructional cost and services for the third quarter were 2.6 million or 21% of revenue.
This is 1.8 million more 21% as a percentage of revenue a year ago.
Instructional costs for Ashford University represented 19% of obey use revenues.
Versus 18% in the year ago period on structural cost for us here with the current quarter represented 25% of yours, you revenue versus 30% in the year ago period.
Total marketing and promotional costs for the third quarter were $2.5 million or 20% of total.
Our revenue an improvement over the prior year period, which was 2.3 million.
And 27% of total revenue.
Marketing and promotional expenses increased approximately 500000 over the sequential quarter and approximately 200000 over the same quarter a year ago.
This was an affirmative decision to increase our investment and growing our student pipeline. There are doctoral program and pre licensure and S&P are too high LTV and fastest growing programs.
Marketing and promotional costs for Ashford University represented 20% of Aspen.
Diversity revenues.
Down from 25% in fiscal third quarter 2019.
You are Sears marketing and promotional costs were 15% of U.S. years revenues down from 25% in fiscal third quarter last year.
This performance demonstrates the.
Hey, good value creation of our AD Tech program to enroll more students into higher LTV programs at a lower overall cost thus increasing the efficiency of our marketing spend and contributing to our trajectory towards sustained profitability and cash flow generation.
General and administrative costs for the quarter were approximately 8.6 million compared to 6.3 million during the comparable prior year quarter, an increase of 2.3 million or 37%.
Recurring general and administrative costs for the quarter of 7.8 million increased 20.
6% year over year.
Therefore tracking to our long term goal that gionee will grow at approximately half the rate of revenue.
Total nonrecurring expense for current third quarter is $1 million.
The nonrecurring costs are composed of 544000.
CFO transition costs.
283000 of other gionee and $182000 of accelerated amortization of financing costs from previous financing activities.
This $1 million as compared to 83000 for the year ago quarter.
For other gionee cash items.
Over the $1 million or nonrecurring costs 354000, our cash and 656000 are noncash.
From a total company bottom line perspective, the total loss for the third quarter is 2 million.
281000.
Compared to a loss of 2.356 million in the prior year quarter.
For this third quarter, excluding the nonrecurring costs previously discussed.
A recurring net loss for the third quarter would've been $1.3 million or seven cents per.
Basic share.
Compared to $2.3 million or 12 cents per basic share in the prior year quarter.
Excluding nonrecurring costs. This is an improvement a $1 million or five cents per basic share versus a year ago quarter.
From a unit perspective, Ashford University's net income for the quarter was 1.3 million versus 400000 than the prior year quarter.
US years net income was 40000 versus a net loss of 900000 in the fiscal third quarter 2019.
Both.
These improved performance reflects strong enrollment growth fueled by our Ed Tech platform and its ability to bring students into our higher LTV programs and an increasingly efficient marketing spend per student.
For AG, excluding nonrecurring items discussed earlier.
DNA expenses.
As were 2 million in quarter versus $1.5 million of a year ago quarter.
Year over year increase in corporate expenses is primarily due to corporate staff increases in finance accounting in marketing.
As well as higher non cash stock comp expense.
With regard to our.
Trinity position.
Cash used in operations for the quarter was approximately 1.8 million versus 1.9 million in a year ago period and 300000 in the prior quarter.
Recall last quarter. The company received approximately 500000 or financial aid funds just days before the end of the quarter.
Which we didn't benefit from this quarter.
Excluding nonrecurring items in the poor current quarter the cash used in operations. This quarter was 1.4 or 5 million.
Therefore, the average cash used in operations for the third quarter and the second quarter, our last two quarters.
It is $900000, 47% reduction from the 1.7 million used in the first quarter and approximately a 1 million dollar reduction were 53% reduction and cash used in operations from the third quarter a year ago.
This performance reflects our continued improvement on our path towards.
Positive cash from operation.
Adjusted EBITDA for the quarter as a positive 222000.
This is approximately $450000 less than originally planned.
This reflects our decision to increase our marketing expenditures this quarter I over.
$500000 to continue to invest in building our pipeline of students are higher lifetime value programs, including doctoral.
Licensure BSN family nurse practitioner.
We expect to continue our strategy to increase our investment in these programs in the coming quarters.
Aspirin group ended.
The quarter with approximately $21 million in cash.
Together with our unused revolver of 5 million, we ended the quarter with approximately $26 million of liquidity resources.
With respect to our share count.
The weighted average number of common basic shares outstanding at the end of the.
It was 19 million 420987.
Versus 18.398 million over 95 in the year ago quarter.
This increase does not yet reflect the full effect of the shares sold in the equity raise.
Which closed on January 22nd 2020.
Okay.
Company issued 2.415 million shares and currently have 21 million 710408 outstanding shares at January 31st 2020.
These shares will have a full effect on npls in the coming fourth quarter.
That concludes our prepared remarks.
I'll now turn the call back to the operator for questions. Thank you very much.
Thank you ladies and gentlemen, if you have a question at this time. Please press Star then one on your telephone and if your question has been answered you wish to remove yourself from the Q. Please press the pound.
Yes.
And our first question comes from the line of Darren Aftahi with Roth capital.
Hey, guys. Thanks, taking my questions good afternoon, and congrats on the quarter.
Can we talk a little bit about.
Some of your newer campuses and on the pre Licensors side.
I now would you open the.
The second or about to open the second Phoenix campus Waterhouse, you kind of built a pipeline.
And just kind of curious.
If that's already occurred.
One and two what kind of marketing you're doing at this early stage here.
I will follow ups.
Yeah. Good afternoon, Darrin, it's Mike Matthews I apologize are you asking about honor health are you asking about our next campus opening which is Tampa.
I'm actually asking about that Tampa.
Awesome kind of behind that.
Okay. Yeah. So so we are in the middle of the regulatory review.
Process with the regulatory bodies in the state of Florida.
The Department education, as well as the nursing boards and we expect to.
The final meeting.
The board of nursing as part of Education is in late April which I.
And to attend and subsequent to that meeting.
I mean, we issued received approval within the following week or two we will commence immediately with our our marketing program.
So we're looking at we're targeting the month of May to begin marketing for our initial.
Semester start which is the first week of August.
Great.
Yes.
And then.
As we kind of think about that business Tonight, I know its new but I'll, let me think the Tampa market.
Then follow up your cost of enrollment.
Although I know you've rolled up into into kind of all of Aspen, all the pre license or side seems like it's still relatively low what are kind of your expectations on cost of enrollment and these newer markets and should we think about you know.
Those figures potentially being.
You know at par Hyare lower just trying to get a sense for how it's kind of model. This going forward at these new price kind of lessons or sorry campuses.
Sure so.
So were internally modeling the cost of enrollment to be slightly higher in our new.
As Paul Tampa as well as Austin and this is simple reason for that is that we have the benefit of our partnership with honor health, where they've been able to deliver to us.
Hundreds of pre licensure students, both existing employees as well as other.
Sure.
The folks that they've been able to send to us for a pre licensure enrollment.
So we won't receive that benefit of that great partnership with honor health and the fact that they've been very good about giving us a pipeline of of leads.
But so we're in the two.
$300 range.
For the first year and a half of the pre licensure business and there's no reason to believe that are cautious enrollment will be anywhere they will continue to be south of $500 thats or modeling.
Great.
And then I'll I'll just ask you can interfere somebody will but.
Sure the cobot 19 issue manifests itself.
What potential kind of impact would that have on your business.
I mean is that kind of factored into your your next quarter is guidance.
Yes, So I mean, let me talk a little bit about where we are with that so so first thankfully we have a very close relationship with honor health in Phoenix.
And we receive updates regularly as this is the only metro on which we have an operating campus business today of course Phoenix.
Our business.
This is less at risk than other universities for two reasons. One our students are all commuters says none of our students live on campus and number two we have a small group is students that come in only three times per week for a half day for lectures and clinical.
We will.
Absolutely, we'll continue to monitor the situation in Phoenix Metro very closely.
And we do have a series of plans in place should there be.
Any effect in our two campus locations.
And you look for example, we are looking at the.
Possibility of doing clinical rotations in a tele health environment. As one example, so we have we have some creative solutions.
It should should we have two at any point in time.
So look for alternative Clinicals for our students.
Great. Thanks.
Thank you.
Your next question comes from the line of Austin mold, though with Canaccord.
Hi, Thanks.
Given the modest marketing growth year over year, but actually having accelerated that more than you originally thought.
What's the current outlook for for marketing growth over the next year.
Yes, great question Austin good afternoon.
Let me let me just go back and just talk about a couple of quarters ago.
As you guys Im sure remember, we're able to deliver enrollment.
Growth in.
Certain three over 30 percentile enrollments year over year, and our marketing spend was was.
Unbelievable minus 11% year over year.
We can't sustain that kind of enrollment growth unless we start to significantly increase our mark.
Cutting spend.
So as you saw this quarter, we made a a business decision to grow our marketing spend sequentially by half a million dollars and as Frank pointed out that is the difference in terms of our in our rate yeah, you're you're consensus estimate on our EPS.
As to what.
What we delivered excluding nonrecurring costs.
We were going to continue to increase our spend rate as the fiscal year.
This new fiscal year begin.
Right now I would say that will probably increase marketing spend on a sequential.
Basis from.
Q3 to Q4 by another approximately $300000.
Great that's really helpful.
And shifting to the new campuses.
Can you talk about the capacity you have with your pre licensure given the amount.
Students you haven't pre racks and the number of clinical seats, you expect to be available for them in near future.
Yes, so yes ill begin with our Phoenix Metro.
We back in the envelope, we expect to.
Enroll no more than a.
Accurately 1500 students in any given time in our pre rack, our first year prerequisite phase.
From a.
From a maturation point of view our final two year core program.
We currently enrolled on averaged 30 students in.
First semester.
Of course, we have six semesters per year in each of our two campuses. So we had 12 semester starts per annum in Phoenix currently.
We when we hit maturity with each of our campuses of which again we have to.
Well, we'll add that.
Pretty will will be somewhere in the vicinity.
750 students in each campus in the core program.
So over time, we would look to have in the Phoenix Metro a total of approximately 1500 students across both campuses in our.
For.
To your core program and again, we would probably have no more than around 1500 on an aggregate basis.
That basically create the waterfall for those those 30 per semester.
Okay got it thanks very much.
Congrats on the quarter.
Thank you.
Thank you. Our next question comes from the line of Eric Martinuzzi with Lake Street.
I was wondering why the Aspen universities side, where did the ARPU decline sequentially.
Good afternoon, Eric.
But as I have two I'd have to pull the ARPU for what was the arkon from last quarter.
Grasping University simply we I don't believe we presented it that way.
This is the first quarter.
Order that we presented the ARPU.
For Aspen University, because we collapsed each of the three units together.
I don't think there is a comparative I don't know where you would get a comparative.
Hi, I'm just looking at the press release from last quarter. The the Q2 breakout you got the sense if you take.
The bookings number in your back a few as you.
Come up with the 24.3 million in bookings and then.
Some of the.
Yes, I mean, the simple math would tell you that because the enrollments were significantly higher last quarter.
And if the enrollments were primary if there is a.
Wrong weighting toward the pre licensure program, which has the highest.
LTV of 30000 per student and that would dictate a higher ARPU I don't have the numbers in front of me, but that would be your answer.
Okay, I will let me remind us the question.
The it would seem then that we had.
Roman.
Skewed towards the legacy.
Completion programs are seasonal element that would explain that.
Yeah, no exactly exactly you, yes, so the two variables that would equal they are from formula quarter over quarter would be much higher enrollments overall in the previous quarter.
And.
And a higher percentage of pre licensure in that second quarter. So those two factors would cheatwood would alter the ARPU. So yes, you're correct.
Right. You've just explains the question I asked I'm asking you to explain why that what is the case because we've had I did I didn't give you the answer the answer is.
Is that we had a higher percentage of pre licensure student in terms of the total enrollments in Q2 versus Q3, that's what affected the difference in the ARPU.
The answer.
Okay.
Why did we choose to amp up the marketing mid quarter.
In other words as you gave guidance last quarter it wasn't on the table.
And then mid quarter you change your mind.
Well I mean, we are on the doorstep of obviously looking at doing an equity raise than we are pretty confident we're going to be able to get that Don and.
We felt like we've had a year's worth of flat marketing spending and it was about time that we started to get more aggressive I think if you look at our marketing efficiency ratio versus any other company in our space or frankly in the business to consumer sector.
In total we probably have one of the best ratios. It exists. So we're not doing our shareholders adjust as if we don't start to significantly increase our marketing spend.
Okay, and then as far as a profit outlook for the fourth quarter, what's the expectation.
Patients from an adjusted EBITDA perspective.
Well the only guidance we present for provided today as we expect to top line to meet or exceed 42% for the fiscal year, we're not providing the bottom line guidance that the at this time I know we have said previously publicly that.
The company.
Expects to remain adjusted EBITDA positive and I would reiterate that point.
Sounds good thanks for taking my questions.
Thank you.
Thank you and our next question comes from the line of Mike Malone with Craig Hallum.
Okay.
Great.
Thanks for taking my questions and well done on the quarter.
If I could focus just a little bit more on that.
On the Corona virus a couple of questions.
I know you talked very.
Very helpful with regards to what's going on Phoenix, what about with San Diego, what kind of impact would that have on the U.S. Yoo side.
Yeah, I mean, it's really the same situation.
The only the only times that we have students in the campus would be one we implement our weekend immersions.
And so.
So if something happens in San Diego that would cause us to have.
Also our plan we would also look at some tele health approaches.
In order to.
In from a from a clinical perspective.
And so well for example, we did get five students.
At U.S. you in the last 48 hours that of.
Advised us that they can't do their clinicals, there FMT clinicals and we're working very diligently to look at it some tele health alternatives for them during this interim timeframe.
So again, we do have alternatives as to how to handle our clinicals and again weekend Immersions, it's something.
And that we could always move them to Phoenix or an another metro if necessary for weaken immersions.
Okay, great. Thanks, and then.
When you Oh.
When you are expanding the U.S. Yoo program because of the on the other campuses can you give us a sense of timing.
Well allow you to expand the.
Yeah clinical immersion program to to these other campuses.
Yes, great question, Okay, yes.
Yeah, Mike what we're planning to do is we're going to make actually our Phoenix.
Metro it's going to be our first location, where we're going to be able to do weekend immersions outside of.
Diego.
We are in the final stages of completing a lease within our our current campus footprint.
In one of our buildings on the ground floor, we're looking to leased approximately 5000 square feet to to implement FNC immersions in our.
Phoenix campus and we're looking to have that available by mid year.
Secondly, we will be ready to implement weaken immersions in in Tampa as early as the first week of August when we launch our pre licensure program and then as you're probably aware.
And is more like November in terms of when the campus is going to be available.
Got it okay great.
And then just a a final question when you're talking about the pre licensure program.
1500 students at maturity.
What would roughly be the weighted average of.
Revenue per student at that point.
Well, we publicly said that.
Our weighted average LTV per student is about $30000.
And that assumes that if we have 1500 pre.
Licensure students that matriculated a rate of say, 65% combined with our of our core students that we're currently true. We're currently forecasting to to graduate in the 90 to 93 percentile range.
Yes.
That's what that's how you that's how you back into that sort of 30000 dollar LTV number.
Got it okay sanction and that hasn't changed.
Actually helped push it.
Thank you.
Thank you and as a reminder, ladies and gentlemen, if you have a question. Please press star.
Our one.
Our next question comes from line of Mike Grondahl with Northland Securities.
Yes, Thanks, guys, Hey, just on the on the Aspen doctoral program or the U.S. Yoo S&P program.
Anything new there to kind of call out or update us on.
Well the Aspen doctoral program is growing very nicely.
We have our enrollment.
Our up year over year by approximately 50%. We've recently increased the call center for our doctoral group.
From we.
Previously had.
Eight or nine people and we're now etcetera, and we're expecting to grow the next couple of quarters.
How many people so.
Yes, so we expect that that needs to continue to grow quite rapidly.
Got it.
In did you guys call out how many enrollment advisors you had.
At the end of the January quarter.
We did not.
But where we're in the about 100, 100% range at this point.
Definitely.
Got it that's great.
The Gulf universities.
Sure sure.
Yeah.
Thank you.
Showing no further questions at this time, so with that I'll turn the call back over to chairman and CEO Michael Matthews.
Any further remarks.
Thank you everyone for joining our third quarter fiscal call today, and looking forward to talking to you in a couple of months when we do our fourth quarter yearend call. Good afternoon.
Ladies and gentlemen, thank you for participating in today's conference.
This does conclude the program and you may now disconnect.
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