Q2 2020 Luminex Corp Earnings Call
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Good day, ladies and gentlemen, I want to the Luminex Corporation's second quarter 2020 earnings Conference call.
My name is there and I'll be your coordinator for today.
Today's call is being recorded.
At this time all participants on in listen only mode.
Following doesn't pay remarks, there will be a question and answer session.
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I would now like to turn the call with the Heres Curry Senior Vice President and Chief Financial Officer for opening remarks.
As for C.
Good afternoon, Thank you for joining us.
With me today is Homi Shamir, our president and CEO.
Following our comments you take your questions.
As a reminder, today's conference call is being recorded at a replay will be available for six months on the Investor Relations section of our website.
Certain statements made during the course of today's call may not be purely historical and consequently, maybe forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995, and a company claims of protections provided by section 21 E. Other Securities Exchange Act for such statements.
These forward looking statements speak only as of the date here and are based on our current beliefs and expectations and are subject to known or unknown risks and uncertainties. Some of which are beyond the company's control that could cause actual results or plans to differ materially and adversely from those anticipated in the forward.
Looking statements.
Factors that could cause or contribute to such differences are detailed in our form 10-K for the year ended December 31 at our quarterly reports on form 10-Q filed with the Securities Exchange Commission.
We encourage you to review these documents and we undertake no obligation to update these forward looking statements.
Also certain non-GAAP financial measures as defined by FCC regulation G. Maybe covered in this call.
To the extent that any non-GAAP financial measures are covered a presentation of and reconciliation to the most directly comparable GAAP financial measures will be included in our earnings release, which is available on our website in accordance with regulation G.
Ill now turn the call over to our President and CEO Homi Shamir.
Thanks, Hey, and once again welcome to our second quarter, two and cold.
Today, I would like to focus on the great strides we have many improving our financial position.
We should love GDP, leaving by day extension overall portfolio, well dock and production capacity for these products to begin with low unit, believing in another multiple cycles like you almost.
Within 10 million an extension of gross margin to 60 focus thing and movement in both open the bofi analytical and means that demonstrate the potential we have been speaking about the for white wine.
Total revenue grew by 32 will soon we saw the local diagnostic revenue stream growing by more than onto person Love me, even by Covidien related thing we.
Total non local diagnostic systems for the quoted were approximately 65 million.
In our life Science company come tool, we have Kobin main themes related Edwin.
Imagine newly infected outflows. The told me to be made but also greatly affected all MPG revenue stream.
Gross margin improved by approximately 10% phone to 60 Copel screen as the result of economies of scale realized in manufacturing and favorable changes in our product mix.
Lease operating expense was flat as expected operating margin improved dramatically to 17% of revenue and net income improved significantly to more than 20 million.
Controlling operating expenses and directing our efforts towards activity that may defer it really paid off this quarter.
In summary, I'll team exceptional ethical and continued strong financial discipline allowed us to generate approximately 31 million net cash.
You will also recall that we issued convertible debt you in the quarter, resulting in additional cash from our balance sheet of approximately 220 medium.
Is that he told our total cash balance was nearly 200 to 92 million pulled the quarter.
We ended the quarter was the in all the bulk of approximately 29 million.
The majority of these moves associate date, we saw sample to answer any export declines.
Overall for Mis luncheon perspective, we are in great shape and looking forward to go opportunity to food discussion you know many of the benefits all shareholders.
As Youre aware on June 26, we received a warning letter from there'd be a resulting from reduced inspection related but amazingly Twelvei June one is instrument.
We obviously took this warning letter students me and provided our responses in additional data to there'd be a we seemed a loud gifting working days.
As a reminder, the warning letter be multi screen the manufacturing production or shipment of any of the company products no DPP quality scores of any product from the marketplace.
However, we are taking specific seems action to address certain issue address the won't let them and are currently waiting for any further this phones or coming from the ideas.
In terms of our portfolio, we are made great strides.
I mean, the breadth of offerings, we saw new molecular diagnostic test for Indentifying individuals who are currently sets to cope with my team.
You will recall the Eway clearances, we received full while sales from second Colby. Thanks next take extended panel in our unique solves koby to let's say it on the beginning of Q2.
It seems like a lifetime it go both of which can contribute to our success in the quarter.
As you policy. So we recently received.
I'll tell you wasteful excellent piece of all these years thing. This clearly is particularly important clinician and labs, they need the sensitive I to put option for them to find the president of antibody in people, who have been infected with some scope it too.
We are very excited about opportunity for de scoping 19 specific antibody test the market.
We also submitted our focus states today.
For you I clearances, a few weeks ago in new Mexico, RPP lost some scope to consolidate that funnel.
Finally, we continue to walk on the number of product in our Verigene forming.
We recently submitted solves koby two standalone say on Celgene won and plan to submit soon for anyway for village into hospital, they say with the south coffee to target.
Well in the process of expanding our total manufacturing capacity of old Mdx as saying from approximately 1.8 million principal portal to approximately 3 million. Thanks for the quarter as a result of significant demand for all products to achieve.
That seems the coffee I think content.
This work in progress is being down no to meet their ongoing demand for Copel 19, diagnostic assays and should be completed by mid August.
Hi, Wellstone's, we sold approximately 2 million mdx stays on all know platform in the second quartile modem out which were cobiz mounting related products.
Distributor do not include I'll say college in manufacturing capacity, which will only be scaling up in anticipation on customer demand.
Obviously you in this challenging time, one of our main LDL focus is keeping all employees face an empty.
We have taken a wide variety of state to ensure the continue well being of all equally weinstein developing manufacturing and selling our spending portfolio of Paul.
All of our employee are essential to enter into brings our life saving solution to the customer who need them.
The entire Luminex team is dummies from normal job of flights into the challenge with day I would like to turning to open to a needs to go deeper into the financial result, and now guidance for the rest of the.
Thanks, Tony.
It's Homi mentioned, we had a record second quarter revenue and profitability.
Again led by significant revenue growth in our molecular diagnostics portfolio.
We reported total revenue of 109.5 million.
32% over the second quarter of 2019.
Net income of 12 and a half million.
11% of revenue.
Or 27 cents a share.
Approximately 350% over the second quarter of 2019.
For quite a while we've been referencing revenue levels beyond which profitability and cash flow would be sustainable with sufficient control of our operating expenses.
We believe this quarter's results demonstrate that promise.
Looking at the respective revenue streams.
We reported that our molecular diagnostics revenue for the second quarter was 64.9 million more than double the prior year quarter, mainly driven by increased demand from the covert 19 pandemic.
Non automated molecular diagnostics revenue was 34.8 million up 150% over the second quarter of 2019.
And sample to answer molecular diagnostics revenue was 30.1 million up 64%.
In contrast, the clinical tools and life science portion of our business continued to be adversely impacted by the covered 19 pandemic in particular within our flow cytometry sales.
Tools and Lifesize revenue for the quarter was 42.6 million down 15% burst the second quarter of 2019.
With revenue and our license technology group of 35.2 million, which was down 4% for the quarter in part due to the pandemic flu.
For cytometry revenue was 7.4 million down 44%, primarily due to lower system revenue, resulting from our inability to access potential customers as well as customer sites, where we need to install systems to recognize revenue all of which was covered relate.
Good.
So we discussed we ended the quarter with an order book of approximately 29 million the majority of which was cove and related.
This includes both orders we are unable to provide by the ended the quarter.
And orders placed for future delivery.
Prior to the onset of the covered pandemic.
Our average order book entering the quarter was approximately 5 million.
Looking at our revenue line items.
System revenue was down 3.1 million or 17% compared to the second quarter 2019, primarily driven by the pressures and flow cytometry placements as a result for the pandemic. This decline was partially offset by increases in our molecular diagnostic system revenue in the current quarter.
Our capital sales increased nearly six fold.
The majority of our Mdx system placements are via reagent rental agreements and not through capital sales.
We placed more than 160 molecular diagnostic systems in the quarter.
With less than half, but still a significant portion via capital sales.
Consumable revenue was 11.3 million down 11% for the quarter due to an aggregate decline in bulk purchases from our partners.
Royalty revenue was 12.1 million.
Down 6% for the quarter, primarily attributable to an expectation of lower aggregate royalties to be reported by our partners.
Some of our partners reports on end user sales have already indicated declines primarily due to cover 19.
As a reminder, total royalty revenue includes base royalties, coupled with audit findings shelf self reported shortfalls and accrual adjustments.
Total assay revenue was up 95% to 61.2 million, but our combined respiratory related products up more than 100%.
As a result of our contributions and helping to battle the crown of ours pandemic in fact, our respiratory related products comprise more than 70% of our total assay sales.
Service revenue was 5.5 million down 8%, while other revenue was up more than 150% to 3.9 million, which included approximately 643000 of revenue from the second BARDA contract we received.
Associated with the development of our Aries Sars CRV to assay.
Gross margins rose 10 percentage points to 64%.
Primarily reflecting the economies of scale realize from scaled up manufacturing and a favorable price mix.
As we stated previously.
Our operating expenses were expected to be roughly flat with the prior year and they were.
Primarily driven by lower R&D expenses, which reflects reduced development and clinical trial activity in the current quarter.
This reduction was partially offset by higher sales expenses related to our 32% growth in sales.
Our record revenue expansion in gross margins and operating expense control all contributed to a significant improvement in operating profit.
Which grew by 24.5 million from the second quarter of 2019 to 18.8 million in the second quarter of 2020 or 17% of revenue.
This is an amazing achievement given the addition of only $26 million revenue over the second quarter of 2019.
Our effective tax rate for the quarter ended June 30 was 22% as compared to a benefit of 17% in the prior year quarter, which included projected tax losses in the United States in the second quarter 2019.
Our effective tax rate significantly affected by the distribution of profit and loss across our worldwide subsidiaries.
We currently expect our consolidated full year effective tax rate to be approximately 25% compared to the 30% to 40% range estimated in the first quarter of 2020.
A result of our ability to to claim greater us federal income tax benefits against our foreign sourced income.
Cash and investments for the quarter were up nearly 249 million. This includes net cash proceeds of 217.6 million from the issuance of convertible debt in the second quarter and cash flow generation from operations of more than $31 million, while also absorbing the payment.
Dividends and Capex purchases of 4.1 million and 4.2 million respectively.
With respect to guidance, we like to provide some high level metrics to consider when updating your models.
The first is with respect to our full year.
We previously communicated expectations for full year revenues to exceed the top end of our initial guidance range of 352 to 362 million.
At mid year, we find ourselves 21% ahead of prior expectations for the first half of 2019.
With the prospect of continued success given the likely continuation of the covered 19 pandemic.
Two primary factors should be taken into account when thinking about the back half of the year before.
The first is tailwinds associated with the pandemic, primarily in our molecular diagnostics business, but also modestly and our partnership business.
The second is a corresponding headwinds affecting both our flow revenues and also our partners who operate in the academic research marketplace.
Given that covered 19 remains with us the positive results. We've achieved so far this year the related growth of our covert 19 related portfolio and the relative weakness and other portions of our business associated with the virus. He remains difficult to provide specific guidance. However, we're updating our full year ex.
Affectations to be more than $415 million.
As I mentioned at mid year, we're already 21% ahead of the first half of 2019 and this guidance assumes a modestly higher increase in our second half versus the prior year.
With respect to the upcoming quarter.
Our expectations are to exceed 100 million in revenue.
We anticipate continued strength in molecular diagnostics as our products continue to be a key component of our customer strategy to identify and treat covet affected patients.
Molecular diagnostics revenue is forecasted to be up between 80% to 100% versus the third quarter of 2019.
This could be offset by continued weakness in our flow business as weaknesses and academic research and access to customers continue to present challenges and additionally, slight weaknesses in our LTG revenues as a result for the same market factors. However, some of the weakness is within our LTG franchise.
It could be offset somewhat by success with our new serology product.
As a reminder, the third corner of every year is normally a trough in our annual revenues.
So the expected slight decline from the second quarter of this year is not a surprise.
Finally, our gross margins are highly dependent on product mix.
Based on the current quarters mix gross margins should drop slightly in the third quarter. However, operating expenses are expected to remain roughly flat for the rest of the year.
Obviously, when we report our third quarter results sometime at the end of October for the first week in November will provide further clarification on our full year expectations with that I'd like to turn it over to Homi for some final comments.
Thanks.
As we continue to navigate to these challenging time I'm extremely pleased the way our company has responded to the demands placed on us.
We had significantly expanded our manufacturing capacity to meet the increased demand anticipates building expansion as we continue to slides to meet the requirements of customers both existing and new.
We have launched several new testing solution directly targeting the Colin pandemic anticipate launching several mall in the near term.
At the same time, we continue to invest in developing our coal knowledge, including now Verigene portfolio, all the Exosome technology in outflows settlements in the often.
We increased our sample to answer the system installed base in Q2, we small demands within 60 systems that will either salto can talk that under the edge implemented and now as more than 280 additional revenue germinating systems in the market seems the beginning of DC.
Our full stability has been significantly in loans is our level of revenue calls to fiscal stability credential. Yes, we have discussed previously and we as demonstrated in stronger ability to generate a substantial amount of cash and it's all needs we call Newpage done all.
All of the.
On a final note I want to quickly discuss the press release from earlier today, when we announced the retirement of our long time, chairman Wally low wind bomb on.
Be off of our boat I'll show, there's all employee and especially for me personally I would like to think Wally fully invaluable salesian contribution to Luminex for August 25 feels.
Well he joined the both when the company was very small ignore revenue and was operating out of a single location.
He leaves and multi national company, we saw opaque fall on that many own in expected annual revenue along the way. He has guided the company too many significant milestone and namesake me tremendously as our chairman as the mental and as Efrain.
We are seeing nothing but the best thing these retirement.
In connection with Wally retirement, I will assume the responsibility of the chairman of the bold I'm pleased to announce that doctoral Ed Organovo, who has been our balmain battle for the path and Lebanese will assume the all of lead independent director.
And contribution to all bowl during his tenure oil and been invaluable.
After we've gone goal isn't a combination executive in the diagnostic business everything and a number of leadership position for more than 20 is at the airport and save as a senior VP of R&D and medical Ifill and Chief Scientific officer offer spell.
I'm excited about a month leadership position to adopt on Gung Ho will all going forward and believe we will go very well together to build from there on the foundation that will elect fall off open April. Please open the line for question.
Thank you as a reminder, if he would like to ask your question. Please press Star then one on your telephone.
Following your question please faster council.
Okay.
Our first question comes on the line of Brian Weinstein with William Blair. Your line is now from.
Hi, guys. Good afternoon. This is Andrew on today, thanks for taking the questions.
First maybe a modeling question as it relates to the third quarter guide.
Can you give us a sense of what your assumption is for covert 19 assay revenue in the third quarter and I guess along with that can you also give us some color on sort of the build up to that with respect to your manufacturing capacity and I know you referenced some additional.
Adds to that to that footprint that throughout the quarter. So I'm, just trying to get a better sense of what's baked into that guidance.
Sure it's likely that.
The covert 19 revenue remains roughly equivalent to where it was in the second quarter, but the respiratory contribution as we leave the 2000.
1920 flu season, and move towards the 2021 flu season and expected to drop a little bit so what will end up with isn't an aggregate.
Modest decline in overall molecular diagnostic revenue most likely.
We mentioned so the potential weakness in the ER headwinds in the partnership business.
Okay recovered related activities and then as you move in the fourth quarter, obviously, you expect to respiratory season the come back.
Some of that other some of the others other strengths to re manifest themselves in this fall.
Okay. Thanks for that color and then I guess, maybe on the demand side of things for the call the 19 opportunity.
Any additional color that you can provide on sort of the underlying demand for those molecular products and as you've seen as we've moved here throughout the summer months is that sort of accelerating or coming down a bit.
So let me I mean, you asked and answered part of it and let homi jump into.
Currently we can pretty much sell everything we can make so the demand for us is significant and as we've expanded our manufacturing capacity. We have we have been able to sell that capacity as well yeah I mean.
And is absolutely right and Thats why we introduced joined the call that we have in all the bulk of $29 million a majority of from a local of their agnostic Dave.
Carry us form Q2, Q3, just think about that alone almost half of fourth we believe that in my local diagnosing young.
The second part of the second quarter was like 60 something million dollar on my local diagnostics. So we still have a very strong demand for full dock and we all think that manufacturing will ramp up and we all think that eventually a there is manufacturing line that is that in overcapacity. He is a we will.
Be able to update eight A.A. before the.
End of the here, we all that mall automation molding and et cetera also somewhat by the needs of the you fall Heath will be in operations will dates will give us excellent capacity and obviously, we are looking at the vintage in line to get the way approval and also.
The result of things still on the pipelines to rise on production.
Got it Okay, and then I guess last one from me as it relates to those Verigene products that you just just referenced anything you can give us some timing expectations for those.
No that you said you submitted urging one assay, but how should we be thinking about timing for their gene to anyway, thanks, and just going to be joining the cement. The next hopefully before the end of the summit as there will enhance managing tool as a form there is a full following on from us.
And full multiplexing panna.
Got it okay. Thanks, Jeff.
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Thank you.
Next question comes on the line of branding relied Jefferies. Your line is now open.
Okay.
Thanks, Good afternoon.
Harris just on the second half revenue outlook.
Just wanted confirming use bedded any new eway approvals like the multi touch panel or surrounding any other stuff. That's in the pipeline and pending regulatory approval in that outlook or would that be on top of the formal second the it might be on call ambient all because again, we are not encompass all saw.
And with the FDA approval at the only thinks we know that for example, the one that we submit the three weeks ago. The next day RPP combine it say going to replace either that I'll see you next things RPP. All next stank corporate 19, so we combine.
Finally, but we have not bake into our non bank an advantage and won all the village in tool and when we get it will take it to the market and then as Eric said, we might eventually when we come waste our fuel plays all they have to move the guide then.
Say further there, but as a brand on as you know we are operating fall.
Day to day, Seoul, and we have to digest it when we get it but definitely we are getting a chicago to launch those all dock.
And the just to remind you doing gain a hero won in Q2, Chicago was very active in a very gene won thus upto 80.
Solution another way to think about a brand in is that.
Because we didn't provide a guidance range, what we said was.
For 15, plus so obviously the additional new products is baked into that number because the pluses sort of infinity above that right. So so if those new products come at a faster rate than expected than over exceeding that for 15, even further than we originally thought.
As possible at the base no new products.
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Modest demand in all the rest are at or above the latter modestly above the 415.
But there is no range. So you have to.
Unfortunately, it requires you to.
To.
The estimate a little more as to sort of how big it could be but.
But for US we were most comfortable with that Fourfifteen number given the second half a trucking or 75% over the first half a year of 14 to 15 plus over 201st half.
Got you, Okay, and then for 160 to placements.
For molecular in the second quarter, how many of those were existing customers versus new accounts that maybe didn't have access to core Harris do you have the utilization metrics for Aries and Verigene in second quarter.
Yes, so most were new accounts.
Most were also reagent rentals, so the customers made long term commitments to.
Say asked a purchase rather than buying them enough and a panic for covered related activity and then when covis gone there.
Turning off so the the majority were all reagent rental agreements and to be honest bucket that number and half that's equivalent to our prior single quarter numbers on reagent rental or actually ahead of that so we're really comfortable that the utilization rate for our aerial systems because of Covance theres a covert component in here if you recall last call.
However, we were.
In the lead adoption 50000 little over 50000, this quarter were a little over 80000.
Utilization per ordering customer.
Virginia recall was just over 130000 per ordering customer.
This time, we're just were about flat with that number with verigene, but verigene remember didnt have any covert related products and as a result, verigene utilization wasn't really affected by the covered pandemic, where it was all on Aries and next tag.
Got you Okay last one.
Just touch on how are you thinking it's going to hold opex down in flat on a year over year basis, you growing top line.
Double digits and was there something structural structurally favorable and in terms of your cost structure in the new sort of call. It.
Okay reality, and how you run the business so so fortunately for us.
The large variations in our Opex are dependent upon the conduct of clinical trials.
And as we sell more revenue, obviously salespeople earn more so commissions go up.
Sales associated bonuses or those kind of things obviously, there are our step functions at which we need more accounting people to process invoices anymore quality people to process, the incoming inventory and such but most.
Of the the quality and inventory related costs get absorbed and they run through Cogs anyway. So what you. What we find is that we have a great opportunity to tightly control opex and continue to generate significant levels of profit we haven't forgone any spending in the current quarter other than being able to travel like every day.
Yeah on the planned spend with with respect to coated selection. So so we're excited about about where our opex is relative to the amount of revenue that opex can support and we continue to make meaningful investments within R&D, so that product pipeline stays for and the next wave of growth can be fueled by.
The next wave of products that comes out yeah and then.
We anticipate topics and it will remain the same and the level of conceptually last thing about the two on rent and I think it's really.
A tremendous effort from the organization to keep a expense that both as we said earlier in the area and we don't expected there to increase sales compared to 2019, and that's really the butane our molding and we keep saying eight and we say it only R&D as our revenue growth.
No.
And continues to go it hopefully our profitability is going to improve and Thats exactly what we're doing M&A. This was a demonstration during this quarter than we are fairly.
Confident that is going to continue as long as the revenue is growing its most of that can go through the bottom line and we will all the opex as they are under two onto this meeting.
Okay. Thank you.
Thank you.
As a reminder to ask the question you will need to press Star then one on your telephone.
Our next question comes on the line of Tyco Peterson with JP Morgan.
Line without them.
Hi, just to follow any on for Tycho. Thanks for taking my question.
So first I was wondering in terms of the order book, you mentioned 29 million most of which is causing related just wondering sort of the burn rate on this current order book and how much of that you think you can come back to revenue then three Q.
So let me first tell you how to think about that order book without order book represents is both orders that we were unable to ship in the in the second quarter, but also a larger portion is orders that were placed orders placed for future delivery.
So what happens typically we go into a quarter, we have maybe $5 million orders that are placed for future delivery. We don't have any problem shipping in the current quarter. Obviously I mentioned earlier that we were able to sell everything we can manufacture. So we had some backlog of orders a carry forward into the third quarter that we couldn't supply, but also a lot of other.
Our orders are placed for future deliveries for the likelihood is is it three quarters of that 30 million well, we'll be monetized in the third quarter and there's a small portion that our orders for instance that are placed for future delivery flex even out into the fourth quarter that are.
Our that will certainly be able to to ship there. So so we will be able to deliver everything.
On time for the time that are indicated in our system as of today and so all of that will be monetize this year and the majority of it will be will be shipped in place in revenue recognized in the current quarter. So effectively were a third of the way almost a third of the way through the through the third quarter.
At the gate.
That's helpful and then turning to the sample to answer system placements, you mentioned over 160, I less than half our capital sales, which compares to 20% in the first quarter I'm can you talk about sort of whats driving a higher proportion of capital sales.
Next year and how to think about it.
Heading into the back half of this year.
What's driving the capital sales are.
Participants in the Covance pandemic crisis, having an immediate need for a solution and not wanting to make a long term commitment to a technology as a result of the issues at these hospitals and clinics are presented with with patients presenting and.
No means with which to conduct a test they buy capital equipment and so we see that.
That Dave obviously, they need a solution other manufacturers across the market are limited as well if you hear it every day and so so we all do the best we can to supply whatever we can to these customers and for US. We're just fortunate but a significant amount of our overall placements are done underrated around so so not only are.
Making capital sale with with short term effect short term revenue would possibly a conversion to long term as they realize ease of use in the system and such but we also have long term commitments for people commit to reagent rental agreements for the next three to five years and also we have seen all seem to make same international and.
Normally international tend to buy compared to entitled reaction. So Thats also held in increasing the overall number of sense of system.
But backed by the way just to be up front, we like this and no selling we had other rental the engine because it's an thing all in yield annuity business going forward and.
Since the beginning of they do we have 280 systems, so thats tremendously philosophy.
Great that's helpful and.
And then lastly can you talk about the act map Intelliflex rollout and how it's been progressing relative to your expectations in particular.
Given the co that environment.
And yes interesting question and we roll it out to two public now and they are in that valuation, which is mask and thermo Fisher.
Well as we shape phase two couple of Kolašin, mostly called the dwell defaulting system. We believe the dual reporting will be very instrumental in especially now given the covered maintain and.
In investigative vaccine some of the people using the same.
Im going to use eight all some people in the pharma. So we send it to a couple of those scale enlighten is when we were just send eight and we are waiting to style getting some feedback from them and but again, it's a holding as we plan and if you'll recall, we said in the beginning.
Excellent you'll you'll consigned same the DC, we just say anticipate the more they stay a sales for launch of those a unique and mainly because the partners need to get Q2 long sheet in a 2021, but I think we'll treat will do ease the especially.
Those care when we'll be very excited about day, the dwell reporting that should give us actually more acceleration that originally was anticipated.
Great. Thank you.
You bet.
Thank you we have no further questions in the queue at this time I would now like to turn the call all the Hong Wilson for closing remarks.
Thank you operator, Hello, and thank you everyone for your attendance on all having coal we look forward to see you Intelsatone independent near future.
If a great day.
Ladies and gentlemen, this concludes today's conference call. Thank you for your participation you may now disconnect.
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