Q3 2020 Earnings Call
Greetings and welcome to the Sharps compliance third quarter 2020 earnings call. At this time all participants are in listen only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance. During the conference. Please press star zero on your telephone keypad.
As a reminder, this conference is being recorded I'd now like turn the conference over to your host Mr., John Nesbett of Imus Investor Relations. Thank you you may begin.
Good morning, and welcome to the Sharps compliance third quarter fiscal 2020, <unk> earnings call on the call today, we have data to serve the company's President Chief Executive Officer, Diana Diaz, Vice President and Chief Financial Officer, David will review, the company's business performance operations growth strategies, well Diana will review the financials immediately.
Following our formal remarks, we will take questions for call participants.
Sure, where we make some forward looking statements during a formal presentation and the question. That's what portion of this teleconference. These statements apply to future events, which are subject to risks uncertainties as well so lets doctors that could cause actual results could differ materially from where we are today. These factors are outlined in our earnings release as relevant documents filed by the company.
Well just with the Securities Exchange Commission. These can be found the web site or as you see talked out so with that let me turn the call over to David to begin to reveal discussions go ahead.
Thanks, John Good morning, and welcome everyone to our third quarter fiscal year 2020 earnings Conference call.
As we report our third quarter results, our country and the entire world or coping with the devastating health and economic impacts.
Good night chain.
Sharps compliance, we're taking you ever to caution to ensure the safety of our employees while at the same time remaining active.
As a leading national provider, a comprehensive medical waste solutions rigging uninterrupted essential service to our customers and the healthcare industry.
In support of death.
We increased our route based drivers plant and operations personnel.
By 10% in advance of the Cobbett 19 pandemic to make sure that are operations and servicing of our customers will not be adversely affected by potential absence of employees.
Due to Carbonite chain, we also temporarily increased paying for frontline operations personnel and drivers during the pandemic and these are investments in a business that we believe makes sense as we strengthen what we believed to be already excellent relationships with our customers and so lot of bar places our top.
That's a service provider to our customers across the nation on it uninterrupted basis.
Well get into the March quarter financials in just a bad but first let me say that although we're not pleased with a chance that was for the quarter.
We do not believe a loss is representative of the long term prospects. So the company.
We remain bullish on the short and long term prospects are the best thus, we believe we're well positioned now better than ever for significant drop.
So what are we doing in advance of they expected growth in the business and where do we believe the growth will be generated.
As announced on March 20, Fab the company is focusing on expanding its infrastructure to support what it believes to be a strong 2020.
Hello.
And immunization season, that's one must medical waste disposal related to potential covered 19 vaccine, which may become available for administration in the United States.
Additionally, the company's these other potential increase medical waste volumes related to Carbonite gene such as a long term care market.
Her personal protective equipment RPP in many facilities has begun to suppose as medical waste and not as trash, which has been the historical practice.
Finally, and have equal or greater importance. Our route based pick up right now extends to 32 states, we're about 70% of the population.
This significantly increases our pipeline of larger small and medium quantity generator new sales opportunities.
What we believe could be positive.
Could positively impact many of our core markets. The pipeline is very active and we believe we could see revenue from new deal closures as early as July of 2020.
So just supports the growth in the growth opportunities were significantly increasing our production and inventory of medical waste Mailback Twoish sure. We remain well positioned to meet the expected increase in demand related to the 2021 season and the potential covered 19 back.
C.
We expanded our route based truck fleet and drivers necessary to facilitate potential increase in volumes.
From the expanded 32 [laughter] from its expanded 30 to stay roughly its footprint ever later related larger prospect opportunities.
We're increasing our medical waste processing capacity.
From 10 to 27 million pounds per year.
We're adding a larger autoclave in the Texas facility and we're adding a second daughter twice in the Pennsylvania facility. We're also securing a larger warehouse and distribution facility in Pennsylvania to store and distributed larger volumes a medical waste mailbox.
So regarding the quarter.
Marches typically our slowest revenue quarter as result of seasonality and customer ordering patterns.
In spite of this we achieved growth in revenue increased customer billings, and our retail professional and as such living markets.
And substantial growth in two of the key solutions unused medication and the route based business.
We expect to higher gross margins for the March 2020 quarter, but the cost of goods sold for the quarter was adversely impacted by the proactive 10% increase.
Rob based drivers.
Yeah and operations personnel.
And by the temporary pay increase for frontline workers.
We implemented to ensure uninterrupted service during the past that Additionally, we incurred operating costs related to the expansion.
A route based business into the Midwest ahead of anticipated wrapping all these items increased profit sale.
About $200000 or 200 basis points.
Regarding yesterday, we had heard about 200000 more than our internal expectations and as a result increased professional increased professional fees computer systems related costs to support sales and marketing efforts.
So again, while our March quarter revenue was close to our internal expectations of the mid to high 10 million range. The cost of goods sold one gnashing they were higher than that what was expected for the reasons. This gas, resulting in the greater lost in the four or five cents we expected.
Again, we don't believe the quarter changes our outlook for the business, which continues to be very bright.
So let's look forward.
We believe we have improved visibility revenue visibility because all the items I just mentioned.
We had included the following.
We anticipate revenue should be favorably impacted by what experts believe should be a strong flu immunization season, potentially followed by a cobot 19 immunization effort.
Coupled with potential growth from our growth from our core markets, including long term care home health care and professional markets.
Additionally, the expansion of our route Facebook Red to 32 states or 70% of the population significantly increases the pipeline of new prospect opportunities.
We remain bullish and are confident that our leadership position as a comprehensive provider.
Medical pharmaceutical and hazardous waste to small and medium quantity generators will provide significant opportunities for the growth.
Business for the balance of 2020 and beyond.
With that I'll turn the call over to Diana to cover the financial section overlays and a bit more detailed and then afterwards I'll make a few closing comments before we open up for questions.
[noise]. Thank you David third quarter fiscal 2020 revenue increased 10% to $10.4 million as compared to $9.5 million in the third quarter of last year. Our route based pick up billings for the third quarter fiscal 2000 $22.6 million are at 60.
10% compared to $2.3 million in the prior year quarter and contributed 25% of total billings for the quarter, our unused medication billings of $2.1 million are up 24% compared to $1.7 million in the prior year quarter.
And contributed 20% of total billings for the quarter, our Mailback billings of $4.6 million contribute contributed 45% of total billings for the quarter.
Gross margin for the third quarter remained consistent at 21% as compared to gross margin in the third quarter of last year as David mentioned, we expect at higher gross margins for the March 2020 corridor, but the cost of goods sold for the quarter were adversely impacted by the proactive 10% increase en route based drivers plant.
In operations personnel in advance of the covert 19 pandemic as well as a temporary increase and pay for our frontline operations personnel at drivers during the pandemic. Additionally, we incurred operation costs related to the expansion of our route based business into the Midwest ahead of the anticipated revenue all of these.
<unk> increased cost of goods sold for the quarter by about $200000 or 200 basis points.
<unk> expense increased 24% of $3.6 million or 35% of revenue for the third quarter fiscal 2020, compared to actually and I have $2.9 million or 31% of revenue and the same prior year corridor regarding SGN <unk>, we incurred about $200000 more.
In our internal expectations as a result of increased professional fees computer answer some related cost to support our sales and marketing efforts.
The company reported an operating loss of $1.6 million in the third quarter of 2020 compared to an operating loss of $1.1 million and the third quarter of last year.
Sharps reported a net loss of $1.6 million or a loss of 10 cents per basic and diluted share this quarter compared to a net loss of $1.1 million or a loss of seven cents per basic and diluted share and the third quarter last year.
We recorded an EBITDA loss of $1.2 billion, and that's correct corridor as compared to an EBITDA loss of $600000 in the same period of last year.
Now, let's look at the key comparisons for the first nine months of fiscal 2020.
Revenue increased 20% to $38.6 million and customer billings increased 22% to $39.5 million.
Retail billings increased 33% to $10.7 million due primarily to an increase in billings for unused medication solutions, including Medsafe and take away recovery system, all the labs as well as flu shot related orders.
Home Health care billings grew 32% to $7.6 million pharmaceutical manufacturer billings increased 52% to $4.1 million related to the timing of inventory builds for several customers.
Question on market billings increased 11% to $12.3 million.
Net income for the first nine months of 2020 fiscal was $100000 are one cents per basic and diluted share compared to a net loss of $300000 or a loss of two cents per basic and diluted share in the first nine months of last year.
Our balance sheet remains solid with 4.9 million of cash at the ended the quarter and working capital of $9.7 million. Additionally, last week, we announced that we receive $2.2 million ended the paycheck protection program or P.P.P. established as part of the Corona virus aid relief and economic Security Act or care.
Correct.
With that I'll turn the call back over to David.
Great. Thanks Diana.
There's no doubt that this is an unprecedented time for our country and are confident we remain focused on driving sustainable recurring revenue.
As we grow our market presence as a comprehensive provider of convenient and cost effective medical pharmaceutical and hazardous waste solutions, where there are with our expanded route based capabilities upgrade to treating facilities that enhance capacity. We believe we're well prepared to provide our central services and solutions to support the.
Healthcare industry to during what we anticipate well take a very busy 2020 in 2021.
Before we turn the call over to Q today I just want to thank all of our employees for all the efforts to support our growth in the last few quarters and particularly during the last month or two is we have met all of the challenges operating the company during a pandemic.
Everybody uninterrupted service to our customers.
We have a very dedicated employee base in a show during the challenging times, we look forward to the growth opportunities ahead, as we continue to build well we believed to be a much larger company I'd like to thank everyone for joining the call. We appreciate the support we hope everyone is stays healthy unsafe and what that operator, we can.
And open it up to queue at.
Thank you at this time of the conducting the question answer session. If you'd like to ask a question. Please press star one on your telephone keypad, a confirmation ton would indicate your line is into question Q You Me press star to if you'd like to remove your question from the Q for participants using speaker equipment. It may be necessary to pick up your handset before probably missed.
Sarkies.
Our first question comes from the line of Gerry Sweeney with Roth Capital Partners. Please proceed with your question.
Good morning different Dan Thanks for taking my call good morning shirt.
One at the start out on the on the mail back and discuss maybe some baseline revenue and.
Opportunities I think in the past I know these numbers are slightly David but differ from the CDC about 45% of at U.S. adult Scott flu shots in the past 32% of that within the retail setting.
I believe in some of our conversation that kind of equates about an 8 million dollar baseline revenue for Sharps. So right I wanted to see does that does that an accurate baseline and then too you know talking to your partners that that use the mail back are you getting any kind of indication.
<unk> patterns et cetera, sure. Let me, let me take and take that one that that's correct and here's what we're doing but let me just tell you what we're doing based upon the input from customers. It just everything that we're reading about the.
Fluid covered 19, we we build about roughly and sell about 200000 mail backs a year for flu season thing even more in a calendar year basis.
Region, Obviously June September December being in the strongest so roughly 200000, maybe 220000 mailbags. So what we're doing for the seasonal flow.
We're building about 50% increase so roughly 300 plus thousand mailbox with what we're building and we're going to have those available.
For for June or by June 30, if we start shipping into in the May timeframe for the opening orders on on flow. So we're going to bill instead of 220 closer to 300000 or more and then what we do is we have plans as well.
For the continuation of the build for the potential covered 19 boxing season, which no one really knows exactly when or how many but we're going to be prepared and we'll reassess a june in the June July timeframe as we start to get through the seasonal flu, but we're prepared to.
To build as many of 600, plus dolphin mail backs for the calendar year. So we're going to be so we can be ready to make sure that a weekend satisfy all the needs from our customers and yes. They do use the mail back in the retail clinics grocery stores Immunizing Oh program. So you can see that.
Roughly 8 million.
That you know thing has the potential can't guarantee yet, but the potential to be as much as 25% to 50% higher depending upon the actual number of flu shots and then some sort of follow on four four covered 19, then I think I've read everything available every publication.
And I read everything from covered 19 vaccine from being in the fall this year to the March quarter to the summer of next year No one knows.
Exactly but we're gonna be prepared and I will say this so and it's no secret that that everyone is trying to move as quick as they can.
<unk> to make this probably they come with 19 vaccine available because that's what solves the solves the problem. So there's a lot a herculean efforts going on to try to accelerate that process and make it available and we will absolutely positively be ready for that season.
Got it that's helpful and.
Maybe switching gears will stand on covert actually.
Good.
This whole situation is evolving I think even the world has changed a lot.
Compared to beginning of March mid March end of March et cetera.
How do you see this impacting a revenue and I know you touched upon it in your opening remarks, a little bit obviously long term care, it's going to see a positive, but you also probably dental and elective care.
Areas, probably down at least in the short term and then you also have uninsured or unused medications.
How how it's it's going to develop we're going to see an opening up of some of the states I think it's happening now maybe thats what comes back or what.
If care comes back to people use more P. P E.
Do other less procedures, just any visibility or thoughts on that matter and then even wrapping and unused meds I think that probably maybe a little bit slower initially because of just everything that's happening in the LTC market, but a lot there, but just curious adopted question. So so.
As you can imagine we're watching every piece of data that we can find about how this is impacting our business and we have seen temporary closures of about 1000, dental dermatology and physician practices and that equates to about 90000 and lost monthly revenue, but offsetting that if any.
Creased volumes of medical waste generated and some of our long term care customers that are utilizing our systems and services to contain and dispose of P.P.E. that from a a protective equipment utilized in their facilities and we're also starting to see if some of those thousand locations that had temporary closure.
First start to reopen so that's a you know if something were watching every day.
So all I know, we've we all know we've we think we've been very very fortunate in that yes. There are some tipperary closures dermatology, Dennis but ER volumes coming out of long term care are quite high and so really want at least right. Now one is offsetting is offsetting the other.
Do practices change in terms of long term care I mean, I've got some friends that are dentist and you know they're talking about more P.P. between procedures, maybe less procedures to one day, but it almost sounded as though at least in the near term whether it be a year or two years there could be more.
Medical waste coming out of some of these smaller providers as well, but could it could but you know right now at least for the moment and.
It's been focused on primarily on our long term care, but but but it could in the future we haven't seen it yet, but but could and I think as these facilities and again, we're starting to see the dental Saar too to reopen it very well could and but we don't know yet.
Okay got one quick one you know about based on expanded in the Midwest how much of a drag was this on on the margin profile or I know start with some partners and then as you.
Get a little bit more.
Size, you know you start moving in with your own.
Whitman, but what's if at all drag on margins and up in the quarter as well yeah. It was about what was about 90000 right about 90000 is a for the large kinda duplicative large cost and costs related to the launch it should be substantially less in the a in the June quarter.
Got it.
I really appreciate it thanks, I'll I'll jump back in line or no problem.
Thank you. Our next question comes from line of Kevin. Thank you with Barrington Research. Please proceed with your question.
Hey, good morning, David Diana.
Yeah, I wanted to follow up on a the your preparation for a potential cobi covert vaccine a bit here.
You know you mentioned you you're doing a lot of your own internal research.
I believe you also commented it recent copper its you know I'm that you're hearing from your customers that this could you know kind of early 2021 could be.
Oh, the potential timing of a covert vaccine and I'm sure they don't yeah.
Completely clear insight either but.
I just wanted to BB illuminated the point that your customers are actually telling you this and that.
That's why it makes sense to build this inventory in anticipation of UBS supporting your customers.
No that's correct they've told US a number of things one this is gonna be and their opinion, a very strong seasonal flu season, that's far we're building as much as 50% more mail backs this year than actually yes. They have told us that Ah Ah, yes, we need to be prepared.
Early 2021 for the ultimate covered a 19 packs same so what we're doing is.
We have a plan right now to build through the end of this calendar year, which would include probably diverging, but when we get to the June July timeframe, well, what kind of Ria reassess and see exactly where the vaccine is but yes, it's coming from their customers as well as our reserve.
Okay, Great and then.
On a your route based expansion you talked about how that.
Simple geographic expansion, obviously a increases your potential.
Targets for new business, but it sounds like it's it's just not you know now you have more targets because of your geographic expansion, but you're actually seeing.
A a real pickup in the pipeline or a very active pipeline. So.
Can you just maybe talk about that the activity in that pipeline. A in you know you mentioned, maybe new business as early as July so maybe anymore color on that would be helpful. Sure. That's a good question. So here's our business works, so when you're talking about larger opportunities and I'm talking about larger opportunities that could be.
You know anything from a 100000, a year and contract valued at up to 2 million in contract value. These are customers with locations of you know a few hundred to as much as a thousand are are more so in going after these opportunities what's really important we found in the industry.
As being able would your route based business to directly service. The vast majority of the locations and I can think of a few of them that were Ah that we're working on one in particular.
Because we've added a mid west spent a coverage and how much we can serve as other of their locations you know its closer now to 80% to 90%. When you can see directly surface 80 to 90 it limit the amount that you subcontracts. It makes for a much much stronger or offering with the what the customer that's why.
Well as it helps you from a profitability of standpoint since you know your margin on the subcontracted portion is is less so they act as a pipeline is quite active what opportunities primarily into professional market in long term care.
And where we're excited about it and we just want to make sure what you know with [noise].
All the talk of.
Oh go ahead and fluid we don't missed the big picture. The Big Pictures, we worked really hard to put this infrastructure in place in the footprint in place for the route based business and we hope to see the benefits of that we're closing larger and larger deals here in the second half of calendar 2020.
[noise], Okay, Yeah, that's helpful.
So you mentioned a temporary pay increase for no Samir frontline workers.
I thought about maybe how long that is or <unk>.
[laughter] 15000 is what the impact is and you'll definitely ever for the June quarter.
Well, we reassess after the after the June quarter.
Okay, Good and then.
So yes, you know you said was about 200000 higher than you anticipated some professional fees and computer system costs.
Do we start to see some of those costs to come out.
The next quarter or two or.
No is this maybe a.
A higher run rate going forward.
So yeah, we had talked about the fact that certainly this year are at DNA costs that are a higher level than last year in and looking into the fourth quarter, we think that and for the year that we expect SGN a for the fiscal 2020 to increased 17% to 18% over at last.
Last year's full fiscal year because of the investments that we've made so some of it continues on.
Maybe there's some lumpy professional service fees and such but we're at a level to support the the growth in the company.
Okay, and then lastly from me.
This is a number I think you've given in the past, but if you you you can disclose the just the number of Medsafe.
Units installed for you currently.
Yes, I do want anyone socket.
Okay, well from [noise].
We are currently at 4700 Medsafe units installed.
Okay perfect. Thank you very much thanks, Ken.
Thank you. My next question comes from the line of Brian Butler with Stifel. Please proceed with your question.
Hey, good morning, Thanks for taking my question.
Good morning.
Just a quick follow up on that the Medsafe. The 4700 units could you also provide a number of Paul liners processed today.
Hello.
Let's say.
I don't have the number of process to date, but I've got the number processed in the quarter, which was about 6800, which was up compared to last quarter, which was 5700 units lighters process.
Okay.
And then just to get back and tons question. Let me ask you know just understand that's when you talk about it being up you can come to an 80% 20.
And in kind of at the level to support the growth so thinking beyond that we should yes, you may get back more into kind of a normal, but but I would say closer to that five 5% range for growth or is this really going to be tied more.
Yeah, I think what I think we would say that that next year would be somewhere between 5% to 10% increase then SGN <unk> and we maybe able to narrow that as we get closer to the energen.
Okay.
And let's see.
On the on the increase and you take I guess incremental margins or how do we think about incremental margins.
With the co bid and increased flu I mean are these gonna be coming in at higher margins. Historically, the flu has been pretty high margin I think business for you.
So is this 50 cents kind of on a gross margin for every dollar that you increase or is it is is it less now.
No I think it's consistent with what Weve. What we've also always said is that incremental margins a about 45% to 50% and I think that's what a this incremental revenue should come in as well.
Okay, and then on professional professional growth seems slow in the quarter at 6.2.
With that really cobot related or are there some other timing issues related to to the the Mailbacks mean looked like the route based wasn't that impacted but it looked like mailback unprofessional seemed to have kind of a bit of a headwind.
I think when you look at both of them when you when you look at both the.
But the mail back in the Rob I'd say, we're about impact of these roughly a.
Thousand locations 90000, yet we did some impact but it's about it's both the mail back in the the route based again the good news is that on the long term care side of it should or should really help minimize oral hopefully offset that.
Okay, and then on pharmaceutical pharmaceutical I think we.
Some a little bit below what you're looking for but more or less than mine just under a million for the quarter.
He has that been impacted by cold there I mean should we.
In the sense. It I'm sure people are still patient support programs are still ongoing but how do you.
The the pace of new ones are possible Reorders then.
Packed by Cold winter slowed.
We haven't seen we haven't seen any impact and patient support program.
No.
Okay, and then last one just do you have the flu revenue for the third quarter I know, it's always really low but just.
Yes, it was actually up a little bit as right under $700000 for the quarter.
That's up a lot.
Well, it's 400000 last year. So I was about 300000 over the last year.
Okay, great. Thank you very much.
Thank you. Our next question comes from line of Michael Hoffman with Stifel. Please proceed with your question.
Thank you for taking two different ones this being in different locations means we're not as coordinate [laughter] I Havent I'm curious question with regards to the incremental cost on the Opex side. So I think I got to point of clarity that 90000 as nonrecurring because that's the one time.
Midwest build outs, so start I sort of 100 120.
What would you need to see not to extend that.
You know, we weren't just kind of Ah, we're going to look at it well everything that you know you and others are looking at as well as the as a country starts to open and as a as the action probably 19 start to a start to life and we know that we will continue to do what we're doing through.
Through the end of June and we'll just we'll just say you know the.
Well it will just make sure that we do the right thing I will tell you this as well what we're hoping for Michael as well as as we've added. These you know the drivers in the plant workers to make sure that we can have uninterrupted service that what we hope that could happen as the business starts or the business continues to increase and we have land lower.
More deals, especially some of these larger route based deals that you know the increased personnel they often just fold into.
Servicing the increase customers and the increased rapidly that's what we're a Dutch we're hopeful that would happen.
Okay, that's fair enough and then.
To do I understand sort of bits and pieces of data about a thousand customers.
Got impacted by the great shut down you have about 13000, so it's a little less than 10%. It's kind of around eight is the way to think about that was well have impacted well, there's mailback customers in there as well 13000, just wrap it's right around a recent mailback customers in there as well you think about it I think we have roughly 40 plus thousand customer locations. When you click the bell bye.
Okay, Alright, and then so that leaves me the second one I'm, assuming the med safe liner activity was softer in the second half a march coming into April cause of the great shut down and then you know that that activity hopefully become recovers as well.
Get back into a restart.
Right right. There were a couple of things that were impacting the unused medications. We did have a fewer medsafe units that were installed in the quarter at 238 compared to the December quarter, where we installed 365, so that was down a little better and we also in the December quarter.
We had about 150000 of Medsafe revenue associated with a state program that was launched and say to Missouri and there was no similar watch and the March quarter, so that that impacted that that quarter to quarter comparison, but we have seen Missouri program has picked up again in a.
We're also you know I think we'll see more activity, but there may have been a little bit of a pause there.
They're also.
One other thing our large retail pharmacy customer had about the same number of units installed and the March quarter that they did and December but it has paused two months of their calendar year 2020 roll out the month of April and May and that's gonna have about a 300000 dollar impact that shifts billings from.
Yeah, the June quarter to the September quarter.
Got it didn't impact March but will impact yet.
Got it okay. That's helpful. In the modeling process and then just to follow through the line of thinking on if you had 100000 mail backs to your plan.
40% of the populations gets a flu vaccination is is the market telling you. They think 60% of the population is gonna get a few flu vaccination and that sort of the flow through to your model.
Your ears, what are saying we we.
They manufacture it I think there minister [laughter] about 160 million vaccines.
Roughly half the population of 328 328 million so.
They don't believe it's gonna be hundred 60 million vaccines, but it's probably not going to be full 328 million supposed to be somewhere in between there and just baseball inputs from them and some of the research you may take it could be 25% to 50% higher number of imminent flu immunizations it'll be administered maybe maybe even more.
So what we're doing just to be careful is we're going to build about.
We're going to Bill about 300000, which is roughly you're right roughly about 100000 more than we did last year, we're gonna have those and inventory ready to go by Jim. The reason why we're doing that boggled is because it there's an excel or or if people get their flu shots earlier or if you know it's not June September December maybe.
Yes, maybe it's heavy in September you have to have the in the mail backs and inventory shipping and making sure. They can get to the I'm sure. The stores I don't think anybody really knows but it's going to be somewhere.
Between 860 million in 300.
28 billion.
Next thing.
Okay, and Theres nothing about a.
Aging out of the Mailback itself. So its if this.
The public isn't in fact accelerate greatly in your carrying more you can carry those over into the next season sure yeah, absolutely. Okay. Okay. All right I was just checking that alright, great. Thanks.
Alright, Thanks, Mike.
Thank you, ladies and gentlemen that concludes our question and answer session I'll turn the floor back to Mr. to signings for any final comments. Thank you operator, we appreciate everyone participating in the call. It again say stay from well safe and well talk soon thank you.
Thank you. This concludes today's teleconference. You may disconnect. Your lines at this time. Thank you for your participation.