Q2 2020 Volt Information Sciences Inc Earnings Call
Greetings and welcome to the Bull Information Sciences second 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 under telephone keypad. Please note that this conference is being recorded.
I'll now turn the conference over to our hosts Joan noise of Investor Relations. Thank you you maybe.
[music].
Thank you Diego and good afternoon, everyone.
Thank you for joining us today for both information finds its second quarter fiscal 2020 earnings conference call.
On the call today are under Porno, President and Chief Executive Officer, and her dealer senior Vice President and Chief Financial Officer.
After the market close this afternoon the company issued a press release announcing its results for the second quarter fiscal year 2020.
The release is available on the company's website at <unk> Dot com as well as the I guess, you see website called the form 8-K.
Before beginning today's prepared remarks, I would like to remind you that some of the statements made today will be for looking and are made under the private Securities Litigation Reform Act at 1995.
Actual results may differ materially from those projected or implied due to a variety of factors, including but not limited to potential impacts of the cobot 19 pandemic our business operations.
We refer you to boil information science its recent filings with the FCC for more detailed discussion of the risk that the company or they could impact the company's future operating results and financial condition also on todays call management will reference certain non-GAAP financial measures, which we believe provides useful information for investors a reconciliation of those measures tick.
Measures is included in the earnings press release issued this afternoon.
With that I would like to turn the call over to both president and CEO Linda Burnout window.
Thank you, Joe and welcome to our second quarter fiscal Twentytwenty earnings call.
I hope that everyone on the call is safe and healthy.
The second quarter, a 2020 was certainly an unprecedented one for our organization.
The magnitude of the shelter in place mandates around the world triggering a rapid shutdown of the global economy was unlike anything we've seen in both 70 year history.
To that end I would first like to thank our bulk colleagues around the globe for their incredible and resilient response to this health and economic crisis.
As a tower company, the health safety and well being of our team has been and continues to be our top priority.
Despite having a high percentage of colleague working remotely our talented and capable team had risen to the challenge admirably continuing to support our valued clients and skilled employees with the same high level of service they become accustomed to from bolt.
Today, I will provide an overview of our Q2 results and some high level commentary on our response to the cobot 19 pandemic.
Herb will provide a more detailed overview of our financial performance and the initial two phases of our cost reduction efforts.
I will then share further details about phase three reduction effort.
Some of which were introduced during our annual shareholder meeting.
Followed with some recent trends we are realizing as reopening phases began.
As we had previously recorded in the first six weeks of the second quarter, we were experiencing favorable revenue trend across all business operation.
In our North American staffing segment, specifically revenue from both contracts and direct hire we're showing improvement from not only Q1 2020, but also when compared to prior year same time period.
Of course in mid March the Cobot 19 pandemic drastically impacted our operations around the globe, resulting in a media clients shutdown.
Stancik reduction in demand canceling of open orders and ending other sign.
Demands with most impacted in industries, such as non essential manufacturing.
Automotive retailers.
Aerospace and defense.
And retail port operations.
Partially offsetting the decline were increases across our branch network.
As well as in contact centers food and agriculture, and the addition of coded 19 related support roles for central businesses.
Despite the valiant effort a teams across the globe, the new business opportunities, we're not sufficient to offset the coated 19 related decline.
During the quarter adjusted revenues declined 14.1%.
Operationally the work we have done over the past 16, my prepared us to respond quickly when the national and global shutdowns occurred.
The operational back office and technological efficiencies and enhancements. We previously made were paramount to successfully moving to the sustainable remote environment. We're in today.
We took swift action to ensure the safety of our goal colleagues valued clients and field employees.
We mobilized efforts to support ongoing and rapidly fluctuating client demand in both essential and not essential businesses and guided many through unchartered territory.
In response to the revenue decline, we have taken decisive and significant action to reduce our overall s. DNA in the short term and longer term.
These actions align with substantial cope at 19 related impact.
Leading bodes well poised and positioned as business conditions improve.
I am proud to work with side, our current leadership team and board of directors. During these trying time.
All of our executive and many of our directors have held leadership role through tough global economic environment.
We entered the pandemic was solid momentum and remain steadfast in our commitment to navigate through the cobot, 19th pandemic and capitalize on new opportunities as the nation recovers.
Let me now I'll turn the call over to hurt to review the quarter's financial Herb.
Thank you Linda and good afternoon, everyone.
Revenue for the second quarter fiscal 2020 was 207.3 million adjusted revenue, which excludes the effects of the businesses exited the impact of client shifting to a managed service delivery model and foreign currency translations decreased 14.1% year over year.
As we stated that our previous earnings call revenues for the most appear to be worried trended better than January and the first two weeks of March were trending in line with our expectations. The full impact to cope with 19 started reflected our revenues during the last two weeks of March April with revenues for that period decreasing between 15.
20%.
This was particularly true for direct hire line of business, which recorded a positive year over year revenue comparison for Judy anywhere in February.
Followed by a flat margins, we began to see realize the effects of cope with 19, but the biggest impact reflected in the month April as many of the rules were put on hold and shifted out into later in our third quarter, resulting in a 22% drug tire revenues declined during the second quarter.
After hitting a low point and the weekend. They may 10th revenues have sequentially increased as more stage gradually loosening their restrictions on to school business locations in activity, we anticipate that our revenue outlook for the latter part of June and July will improve.
Looking at her business segment results North American staffing represented 84% of overall revenue during the second quarter.
Revenue from this segment was 173.4 million with operating income of two point sixmillion consistent with a year ago adjusted revenue decreased 14.9%.
Decrease is primarily attributable to the decline in the man beginning in mid March related to covert Nike.
As I mentioned the revenue trends, we saw early in the quarter prior to this impact we're tracking to deliver sequential improvement compared to the first quarter.
Our international staffing business with revenue of 24.3 million, which represented 12% or total revenue in the second quarter, an operating income of $200000 adjusted revenue decreased by 13.2% year over year, primarily due to adjustments of work orders related to pending statutory.
Legislation changes and UK.
Beltrame in Singapore were both actually up double digits year over year for the quarter as result of improvement in contract labor, partially offset by cobot 19 related decreases direct hire revenue.
5% total revenue North American it must be revenue was 9.7 million <unk> operating income 500000.
Adjusted revenue increased 50 basis points during the second quarter.
The increase is primarily attributable to expansion within existing clients and the incremental revenue associated with certain client shifting into the segment over the previous two quarters, mostly offset by the impact of Cobot 19, head count reductions and a small number of clients.
Moving down the piano gross margin for the second quarter was 15.6% compared to 14.4% in your go quarter, excluding any business exits in the prior year gross margin increased 90 basis points from 14.7% in the prior year.
The primary driver for the change in gross margin was a $1.1 million positive workers compensation adjustment related to reduce claims liability from 2015, 16 and reduced payroll tax rates.
Yes, you know you spent for the second quarter was 36.2 million compared to 38.9 million in the second quarter fiscal 2019. The decrease was primarily due to reduced labor and related costs. As a result of arc cost savings initiatives introduced in the fourth quarter fiscal 2019.
Coupled with the Swift actions, we took in the early stages of the co Goodnites youth outbreak.
In addition, it shows compensation declined due to the reduction business and lower headcount and lower share based compensation. These decreases were partially offset by higher depreciation expense and a 486000 dollar increase in expenses due to the elimination of the deferred real estate gain offset under the new lease accounting rules.
Yes.
As a reminder, compared impacted this change will recur in the third and fourth quarters of fiscal 2020.
For the second quarter fiscal 2020, we reported net loss of 5.4 million or 25 cents per share compared to net loss of 5.2 million or 24 cents in the second quarter of fiscal 2019.
The loss during the second quarter 2020 included $411000 cost related to the ongoing cost reduction efforts throughout the company.
Adjusted EBITDA for the second quarter was a loss of 1.4 million and 100000 dollar improvement from the prior year quarter.
Moving onto a few key items from cash flow and balance sheet.
At the into second quarter fiscal 2020, we had 26.2 million in cash and equivalents and additional 19.4 million in restricted cash and short term investments. Our long term debt was 60 million. We have total available liquidity of 12.1 million.
During the quarter, we drew down an additional 5 million to ensure additional flexibility in our in we had a positive relationship where there.
We have a positive relationship with our lender in the first quarter extended our financing program with them to extend the terms of the program by two years to 2023 and deferred the net income covenant by your 2021 in June we entered into a new amendment to our securitization facility would DZ bank to reduce our minimum tangible net worth come.
I'm Gonna to 20 million through Q3 of 2021, which will provide us greater financial flexibility as we continue to navigate this pandemic.
Also decreased our maximum credit available under the facility from 115 200 million to better reflect our asset base level and you news borrowing costs going forward.
As a reminder, yeah average interest rate or long term debt is approximately 3% and they're no principal payments required during the term it alone.
We generated 2.9 million in cash flow from operations and the second quarter with capital expenditures at 1.7 million.
Next I'll review the recent actions we've taken prior to and in response to the Cobot nights outbreak.
During our earnings call in January we announced phase one of our cost savings plan, which included an expected 3 million in fiscal 2020 savings due the offshoring of certain U.S. based back office functions during our Investor call on April 14th we shared phase two which consist of a number of additional cost saving measures that were swift.
We executed and restart this our targeted fiscal 2020 savings to $9 million.
We're pleased to announce that our first phase is substantially complete well all but a handful of targeted physicians transition to our facility in Bangalore, India, we transition to 133 positions, which will result in annualized savings of 6.6 million.
We will see over 3 million in savings in this fiscal year. We're also on track to reduce our costs. An additional 6 million does that play 20 from a combination of furloughs and permanent head count reductions in a few minutes Linda will walk you through the phase three savings.
The passage of the cares Act legislation in March we were able to defer the payment of the social security portion of our calendar 2020 payroll taxes.
Based on our current payroll, we will likely to for $20 million to $24 million of payments. This calendar year half of this balance will be due at the end of calendar 2021, and the other half due at the end of calendar 2022. This action will provide greater financial flexibility for gold over the next 18 to 24 months.
We've also reviewed many other U.S. federal into international programs that have been offered in recent months, but we're either in eligible to participate or the programs are so restricted that does not make sense for us. We continue to monitor these programs as additional modifications are announced to determine the excess and lease program should be piece.
People going forward.
In conclusion based on the situation analysis, we've done incorporating multiple revenue declines in recovery timelines, we believe that because of the actions we had taken prior to the started the co. Good 19 outbreak and additional steps taken since we have sufficient liquidity to near the near endure the near and medium term affects the co.
Good night team can then it.
I'll now turn the call back over to Linda who will give greater detail in the second quarter and review our strategies.
Thank you herb.
As her discussed over the last several quarters, we have announced a series of prudent cost savings initiatives designed to further align our coffee with current performance level and provide for additional financial flexibility longer term.
During our annual shareholder meeting on April 21st we introduced the initial action of our phase three plan and today I will share. The additional actions that have since been implemented that will allow us to reduce spending preserved financial resources and strengthened our balance sheet specific.
Finally in response to the prolonged 'cause it 19 impact.
Phase three action include a temporary pay cuts or myself at her.
Reduced fees for the directors.
A substantial reduction in incentive plan compensation.
Temporary suspension of the company matched to retirement account.
A broad based hiring and salary freeze.
Additional reductions that headcount an extension of certain furlough period.
And the closer and or consolidation of underutilized real estate throughout North America.
These actions combined with the phase one and base to action Herb previously discussed.
Adding incremental $5 million.
Bolstering 2020 saving to approximately 14 million.
And an additional 80 million it's 2021.
By the end of fiscal 2021.
We will have reduced S DNA by $32 million in a period of 24 month.
These stance of action bolster bolt financial position during the health and economic crisis and beyond.
While still allowing us to maintain sufficient resources to properly prepare for post crisis growth and aggressively resume our transformation journey.
Let me just now for the trends we are seeing across the business.
Areas phases of reopening our inactive.
The majority of the Coca 19 impact with felt from mid March or the end of April hitting the lowest levels. During the last two weeks in April and carrying forward into may.
The bottom point, but not as we had expected rather it was a bit more prolonged dipping to roughly 20% decline for the month of April.
Over the last six weeks. However, we are beginning to see a shift in client activity, indicating a positive yet gradual rebound, leaving I'm cautiously optimistic about the remainder of fiscal Q3 and into Q4.
The pace of this rebound varied by country state and often by city as businesses attempt to implement local regional federal who and CDC guidelines into their operating model.
Overall like you categorize the recent shifts in Threeq keep bucket.
First would be what I would call whole returned to work.
So roughly 15% of our estimated cobot 19 impact falls into this category.
These are clients, who have Foley and very recently returned to work and they are currently running above pre cobot level.
Second would be what I will call gradual recovery.
This bucket of clients represents a majority of our central businesses, who remain operational yet with materially less demand due to reduced hours ship or short term furloughs specific roles.
Roughly 40% of our estimated cobot 19 decline falls into that category.
As situations are normalizing in various areas, we are beginning to realize gradual headcount.
Within <unk> with the intent to returned to pre coated levels.
The third category is what I will call dormant.
And represents 40% of our estimated cobot 19 decline.
So these are clients have made decision early on to reduce their entire contingent labor workforce.
And at the present time do not have any concrete timeline to either ramp or bring that they're contingent workforce in its entirety.
These are not large clients, we fully anticipate that they will return, but the timing and the degree is uncertain.
We continue to maintain quality relationships with these clients and remaining constant contact prepared to accommodate need as they emerge.
In addition couldn't be specific shift we are seeing positive trends in several key leading performance indicators.
Over the last five we specifically order volume and placement volume had been.
For near prior year end above pre cobot level.
This has translated in the fourth straight weeks of increased time card processed and net headcount growth.
I will read Pell grants team have demonstrated solid performance throughout the pandemic and collectively this group has had six consecutive weeks of head count growth.
Strong sales activity and accountability were crucial and allow the seem to capitalize on many of the emerging job created during the pandemic to protect businesses and employee.
We expect such new role to be vital in safe returned to work practices for the foreseeable future.
As we continue to manage through the many facets of the crisis I'd like to emphasize four key point.
First the health and safety of our colleague clients and field employees is our number one priority.
Our colleagues have been resolute and their commitment to our clients our field employees and to each other as we confidently managed social distancing enhance safety standards and critical health and wellness protocols.
Our teams will continue to go above and beyond and as an industry workforce leader will continue to assist our clients with navigating these uncertain time as they commit to keeping a central workers healthy and properly prepare to return to work.
And we will partner with our field employees to support them in this turbulent market, placing them in new opportunities within bolt valued clients.
Second we have taken considerable cost saving measures, which will benefit both oh, sorry short term and long term.
These actions are designed to preserve cash AMETEK liquidity.
And it's Herb mentioned, we believe we have sufficient liquidity to enjoy the near and medium term effect of the Togut 19 pandemic.
Third we have developed formal sales and recruiting strategies to capture emerging Tobin 19 related role and in source strong type lines of candidates to immediately deployed to existing clients as they returned to work.
And fourth.
We have a knowledgeable and experienced executive team capable of meeting through these uncertain time.
We remain confident in our ability to regain rico that momentum.
And continue our transformation journey.
I remain confident in our ability to manage these short term challenges rebound together with our clients.
And emerge a leaner more nimble and focused organization as the health and economic crisis improved.
[noise] given however, the continued uncertainty around the timeline of the recovery and when businesses will be able to meet guidelines and reopened around the globe.
We will not be providing revenue guidance for the third quarter.
We will continue our steadfast execution of our operational strategies, including expansion of retail and direct tire business and we anticipate improvement as we head into Q4 and subsequent quarters.
I will now open up the call for questions operator.
Thank you.
At this time, we will be conducting a question and answer session.
If you would like to ask a question. Please press star one on your telephone keypad.
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Moment, please while we pull for questions.
Our first question comes from Josh Vogel with Sidoti. Please state your question.
Hey, a London herb good to hear you guys.
Oh, sorry, Josh.
Thank you My my first question you know there is a aligned in the press release, you talked about it but these opportunities there being created to meet Ur Cobot 19 specific demand with new and existing clients. I was wondering if you can maybe quantify this talk about the nature of this work.
Expected duration, and then maybe if possible it kind of break it down our these opportunities being seen more so from the existing client base or is this just a new business new clients all together. Thank you.
Yes, I'll take that its a combination of both so oh, we quickly identified ways that we were able to support our existing clients as they are particularly the essential businesses as they needed to be operational during the pandemic Oh, we were able to.
In a very quickly supplied them with health and safety workers health monitors folks that were doing temperature scanning individuals that we're ensuring a social distancing requirement.
Ah individuals that we're doing safety and cleaning sanitation. So both those were the types of position that we thought quickly emerged with our existing client base Oh, we leveraged those opportunities then too with new clients as well and throughout the lab.
13, 14, we have secured multiple new wind up with these types of roles.
Okay. That's helpful. Thank you.
And lender you did talk about this but obviously the recently mentioned certainly accelerated some trends and many companies are coming to realize that they can operate and operate very effectively.
From a more remote or virtual environment I'm. It seems like you're seeing this too and you know it. It does opened the door for potential cost cutting maneuvers you didn't mention on the you know potential real estate footprint and you did talk to more cost savings, but or other areas, where we could think about with these efforts unit cost.
Cuts that have come about because of the ability to work so effectively remotely and is that going to be kind of a new norm for a for your business.
Well I think we're gonna see I'm going to start with the second part of your question first I think we're going to be a a combination of run though work in certain areas, where we can appropriately.
Service, our clients, where the the skill sets up the employees allow us to do that and what we've got a strong operational profile and and and Ken can continue to work remotely longer term.
In other areas, we have situations, where our specific clients or our specific field employees skill sets required the need for us to be in an office for them to do testing a drug screening those type of thing. So it's going to be a combination of both and as you alluded to.
Real estate that we are going to be impacting a was all evaluated based on all of those key point and we will determine where we'll need where we won't need offices, because we'll continue to work remote and where we will continue to have a phase.
Go brick and mortar somebody other areas that we've seen have been in traveling expense reduction so significant savings across traveling spend significant savings in utility evenly in in offices that we have not been working in offices.
Yes, certainly office products all of those types of things that you know you think about when you're fully operational working in a working in a in an office building.
Okay, Great. When you had the Investor day, I guess it already two months ago already you you get some nice statistics about partnering with clients to identify work from home opportunities and I was wondering if you could just kinda update those statistics I know that 13 of your staffing field employees are working from home.
66% of professional and technical and 100% of international killed it any update there.
Yes, so those those continue to still be a pretty accurate we have not seen much movement in those companies that have employees working from home or they continue to obviously be concerned about about the employees and.
Are moving cautiously and purposefully in terms of bringing those folks back up some we have a definitive data as to when those folks will be brought back to an office others, we do not but those those statistics are all are pretty much still accurate.
Okay and maybe for her you know the Dsos seems a stable from historical perspective I was wondering if you could talk about dialogue with clients.
It's a at all that they were asking for better payment terms and maybe just about the overall quality of your accounts receivable portfolio in general.
I'll start with the second part first you know the quality, it's been a very strong the.
Our clients are hanging in there it's tough, but they they've got good balance sheets and are doing well. We have had a few though that had been pushing you know out their terms little but you know trying to go from 30 days to 45 days, one stretching out few weeks here and there, but overall you know weve been able to.
To manage that you know very very closely and.
I think it's possible that you could see little bit further deterioration from where we were at the end of Q2, but you know not significant.
And I'll actually give a real life story. So we we actually have a client.
Who came to us.
And one it extended terms.
We went back to them and pointed out to them that they were actually already paying up half their contractual terms, which were better than the term that they were asking for and they were so appreciative that ER and thankful that we had pointed that out and done the right thing that we're now seeing a significant tick.
Can orders from them or you know as a result.
A very nice or not.
Just last one.
No you're talking about all these cost cuts and kind of getting you know these savings on an annual basis and clearly you don't want to overcome <unk> you want to remain positioned for when things do rebound I guess given.
You know the current cost structure and personnel you have in place you know how much available capacity do you have or you know you know how much revenue growth can you handle with with the existing cost basis. Thank you.
I feel very confident in our ability to regain.
Momentum support the needs of the client.
Add additional business, we had been very smart and purposeful, while simultaneously being bold and decisive and in our S. DNA reduction and we have ensured that we allowed ourselves to remain well poised to capitalize on that growth.
Sounds great. Thank you for taking my questions.
Thanks, John Thanks, Josh.
Our next question comes from re Miller. Please go ahead with your question.
Hey, guys. Thanks for taking my call for her just a quick follow up or do you had mentioned.
The that you'd be read that the covenants and your paid facility in June.
And just kind of caught my my are just a little bit I know that Tom in your life I think you filing for last quarter.
In mid March I know you guys are really Oh, we redid the tangible net worth covenant from 40 million down to 35.
And then it was supposed to go back our path to the third quarter back to the 40 million. So basically for two quarters, you're looking for some relief there are they come I just little bit you mentioned that and that's why if I remember what you said I think you were.
After that down to 20 million, just a little worse and one that that's just implies some.
If I'm remembering that correctly that would imply some.
Some pretty substantial losses or near term I know you can comment on on on revenue stuff like that going forward, but that seems right now your your your network is around 42, if I'm reading your press release correctly that would be almost [noise].
Right and the reason for this was to allow US you know plenty of flexibility. We just don't know what the future holes and when we went back and Ah you know talk to our lender. They worked with US and said look you know the bottom line right now and that it's not.
The significant measure for them you know there more worried about.
You know, making sure that we've got quality receivables you know since they are fully secured so basically we just went ahead and dropped down to the number that you know, we're very very comfortable that.
We wouldn't be in a position were six months from now that we'd have to go back and and you know make an adjustment.
Okay, well I totally understand that and that's when I think it's the big positive for me is that you know a last quarter or you know recently you guys have extended that and got battlefield twice a year for is great for liquidity, just one or the they're kinda talk to me without its just a question about the overall liquidity and lots of the into last quarters and that you are.
Got it around 17, or so million and liquidity I know you mentioned earlier in this call you've got about 12 million again part of talking with changing that covenant to 20 million tons on that worth assuming obviously difficult environment and some losses coming up you know you still comfortable if you can just address just a little bit about your liquidity position I know.
No I want to had mentioned you know basically you know were you guys are in great shape near term and medium term.
Which is cooperating but can you just can't address you know was down from 17 available liquidity now we got about 12, you know how does this look going forward given that again, you're going to be on the implying some losses, obviously with the net worth and I noticed for Cushing and stuff like that but you can just address that that'd be great. Thank you so much.
Right.
No problem ready. So basically you know again as we said we feel comfortable that we have Oh you know this handled and you know we don't expect significant losses, you don't from this and.
I think we're we're in good shape, but we just wanted to make sure that we had the flexibility that Weve me.
Okay, Alright, that's great. Thank you got so much I appreciate it.
Thank you.
Just a reminder, ladies and gentlemen to ask a question at this time simply press star one on your telephone keypad.
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Our next question comes from semi all coated with Delta analytics. Please state your question.
Hi, good evening spend up thank you.
Such a wonderful quarter and especially that.
So don't pay cuts and let's hope the future you'll be able to double that.
The the the question I'd like to ask what industries.
You touched upon it but what industries would you say.
He was most affected bye bye bye.
The night and also.
Oh, I see as a possible had so with the covert 19 and Ah.
Have you mentioned that I've mentioned that you know you secured about short term.
As there.
Pretty well do you have any plans like makes more companies. So.
And that's not so funded.
You know what he financing either convertible bond or extra stock is what I was worried about.
<unk>.
I appreciate it.
Yes, so herb why don't I take the industry wide and then you can take that but the second part of that that work.
Sure. Okay. So let me start by answering your question around the industries that were most impacted so <unk> leisure and hospitality really was one of that the the biggest and most significantly impacted industries. The good news for for bolt.
Is that we don't have a significant amount of business in that in that industry and in that sector. So that's certainly what was a positive for us.
Retail and retail operation support certainly also was was most significantly impacted so those are really two of the of the industry's if you look at really the top two that where that were at very much in back impacted during the pandemic and you know were.
Starting to see some rebound in both of those which is nice ads as well as many of the other segments that were not add significantly impacted.
Right and if you don't mind, if we you broke up on my phone in the second part of your question could you repeat that more.
Yeah, Yeah, well basically you you know a lot companies look companies you mentioned the.
Confidently short term mid term.
Having no you know well Scott.
The thing.
A lot of companies now.
I got companies have been coming out either with convertible bonds.
Financing to sure that that the they'll be ready.
We don't know about a second city.
The way they did but.
The question is whether the top.
Very little shares outstanding.
And I was wondering if there's any plans to doing financing and what I was wondering.
20 million people are out of work.
Areas other than you might expand into like about.
Okay on the this stock question additional debt right now you know, we don't foresee the need to do anything right now convertibles, we think our stock is actually a very low point, you know right now and wouldn't be a good use.
Well, Oh, you know that currency to trying to convert are set up a convertible. So you know we're very comfortable again with our our liquidity and then I'll turn it back over to you know Linda that's that you know following question on the.
40 million people in the opportunities.
Yes from an expansion perspective, you know certainly these are the roles that I mentioned earlier to Josh. This question regarding some of the new opportunities that came about as a result of cobot 19 have definitely created a new opportunities for us which is.
Which is very exciting right, so that entre into Nonclinical health care, which will will get back to growth and continue growth you know post crisis. So that is certainly an area of opportunity for us. We expect that these roles will remain for the foreseeable future.
They are critical roles that companies are looking to reopen safely.
And ensure a you know provide confident to employees that though that the worksite. It's safe. So you know we anticipate that this will this will be a nice expansion some nice expansion opportunities for us a for the foreseeable future.
Thank you.
That concludes our could question answer session I'll now turn it back to than the per know for closing remarks.
Thank you everyone for your participation in today's call and for your continued interest simple we look forward to speaking with you again, when we report our third quarter fiscal 2020 result in September.
Thank you. This concludes todays conference call all parties may disconnect have a great evening.