Q2 2020 CareTrust REIT Inc Earnings Call
Some all participants are in listen only mode.
I couldn't speak a publication there'll be a question answer session to ask the question is that something for Star then one when you touched on telephone.
I would I will turn the call somebody else's Lorne Bill Caretrust controller, Ma'am you may begin.
Thank you and welcome to Caretrust REIT second quarter 2020 earnings call participants should be aware that this call is being recorded and listeners are advised that any forward looking statements made on today's call are based on managements current expectations assumptions and beliefs about caretrust business and the environment in which it operate.
These statements may include projections regarding future financial performance dividend acquisition investment return financings and other matters and may or may not reference other matters affecting the company's business, where the businesses of its tenants, including doctors that are beyond their control such as natural disasters pandemics such as.
The Nike and governmental actions.
The company's statements today and its business generally are subject to risks and uncertainties that could cause actual results to materially differ from those expressed or implied herein.
Listeners should not place undue reliance on forward looking statements and are encouraged to review Caretrust SEC filings for a more complete discussion of doctors that could impact results as well as any financial or other statistical information required by FTC regulation G.
Except as required by law Caretrust REIT and its affiliates do not undertake to publicly update or revise any forward looking statements were changes arise as a result, new information teacher, then changing circumstances work for any other reasons.
During the call the company will reference non-GAAP metrics, such as EBITDA, as Stefano and FTD, Fourq sad and normalized EBITDA at that though it at 80.
When viewed together with GAAP results. The company believes these measures can provide a more complete understanding of its business like cautions that they should not be relied upon to the exclusion of cap reports.
Your trust yesterday filed its form 10-Q, and accompanying press release and its quarterly financial supplement each of which can be accessed on the investor Relations section of characteristics website at www Dot Caretrust REIT dotcom a replay of this call will also be available on the web site for limited period.
Management on the call. This morning include Bill Wagner, Chief Financial Officer, Steve Sedgwick, Chief Operating Officer, Mark Lam, Chief Investment Officer, and Air Gillis, Vice President of portfolio management and investments.
Now I'll turn the call over to Greg steeply Caretrust Reed chairman and CEO.
Thanks, Good morning, everyone.
You know the resurgence who cobot 19, it's been difficult on multiple fronts. There are some bright spots out there that we're talking about.
First and foremost we're grateful to be able to report that are tests and their staffs are working through it and thanks in part to the government relief major provided to date for skilled nursing tenants or is the caring for their patients and otherwise holding up well.
We're also encouraged by the recent we commenced for the rollout of point of care rapidly results testing to nursing home nationwide.
Government is reportedly delivering six to 700 testing platforms, a week with an eye to getting them all of the nation's 15000 nursing facilities as quickly as possible.
Several of our facilities are near the top of the distribution list.
This has been a giant missing casing infection control puzzles, the nation's inpatient care facilities.
Short of having an effective vaccine point of care revenue results testing will likely be the biggest advanced in the ongoing war against cover 90.
Real time testing places, where so many of our most susceptible citizens reside should begin saving lives lots of lodge immediately.
We hope that seniors housing studies, we will be next in line for these testing capabilities as well.
We also hope that the government moved to protect even more vulnerable elderly, but including seniors housing providers in the next round of stimulus support.
That's procure trusts tenants, you'll recall that about 85% of our rental revenue comes from our skilled nursing assets.
The bulk readers in their care staffs are working hard daily to keep their heads above water will protect your vulnerable seniors and they're getting better at it every day as Moore's learned about cobot 19, new resources from avail aid them in the fight.
In addition to the state and federal relief dollars. The company regulatory relief has been immensely helpful suspension of the three they qualify and stay for Medicare eligibility is the most prominent example.
Hopefully this highlights the fact that the quote stroke with the Penrice suddenly credit community and elsewhere wringing their hands over actually goes both ways.
The lion share a slip revenues coming from government sources chasing policy or reimbursement rates camper providers.
We feel the providers it just isn't which usually happens pretty quickly.
The government's response to this pandemic prove anything about that dynamic it is that both state and federal officials understand and are fully committed to the long term health and economic survival post acute care as he truly essential industry.
That is an undeniable plus in difficult times like these not to mention the fact that the government is the most financially capable customer any business could have especially when economic conditions for most challenging.
So what we don't necessarily want to projected everything's fine message everybody knows everything is not fine. We also want to convey do either.
Having been in the operating trenches ourselves and see the hard work and significant resources being devoted to the fight we believe our providers are well positioned to continue weathering the storm the near term.
That's for Caretrust itself I'm pleased to report we remain in great shape.
We collected 99.3% of rents from April through July and August recollections are on track and continuing to come in as expected.
We have the lowest leverage in company history today at 3.1 times net debt to EBITDA at this moment.
Interest costs on the little bit of floating rate that we do have written historic lows and we have no debt maturities on the horizon before 2024.
And our 600 million dollar revolving credit lines Undrawn, plus we have around 20 million in cash on hand, plus our conservative payout ratio leaves us each year, the sizable chunk of very cheap capital that we can invest but solid returns.
All of these funds are fully available to support our opportunistic growth strategy without raising a nickel in new debt or equity unless we want to.
Speaking of investments, although the pandemic, it's pretty crimp in M&A activity over the past few months, we expect to started announcing new investments again very soon.
With that I'd like to team to briefly talk about our results for the last quarter's wells are spots on the next couple and then we'll open it up for today Dave.
Thanks, Greg I want to pick up where I left off from our last quarter's call.
First cobas impact today.
As of this week, we have 59 facilities across 15 operators reporting at least one positive covert patient.
However, as you may recall, we have viewed a running covert count as misleading due to inconsistency in testing practices and the initial unavailability of universal testing.
Leaves the early reports of positive cases with high mortality rates for grossly inaccurate. This has proven correct with broad testing now finding high numbers of asymptomatic positive cases, and much lower mortality rates.
But it still and especially serious threat wonderful seniors and those are pre existing conditions.
Painfully older operators today report a higher degree of preparedness personal protective equipment.
And continuing confidence in their infection control in isolation protocols. So even though the virus is more widespread today than a few months ago. The industry is actually in better shape to deal with it.
Next let me address occupancy.
Although a recent report from the National Investment Center stated that seniors housing occupancy dropped nationally by 280 Bips from Q1 into Q2 I'm pleased to report there from March through July seniors housing occupancy in our portfolio held steady.
This reinforces our long held view that the Midmarket physician they never seniors housing facilities appears to be more needs based as prospective residents have not been able to move in with family or wait out the pandemic on their own before moving into assisted living.
On the skilled nursing front occupancy has declined.
We've said it before but it bears repeating.
Any analysis of nursing home occupancy has to bifurcate the short term rehab or skilled patients.
In the long term care residence.
This skilled patients represent higher revenue and margin and offset to a degree declines in overall occupancy.
Not including inside.
Our over our overall skilled nursing portfolio occupancy dropped to 684, Bips almost 9% from March to July.
But the higher margin skilled occupancy increased 571, bips, we're almost 37% over the same period.
The additional skilled revenue provides a meaningful partial offset to the overall occupancy loss and increased expenses associated with coated.
I'm also happy to report that portfolio wide the June and July occupancy trend in our skilled nursing facilities is showing a significant leveling off of the initial downward curve.
Consensus.
And as people get out there and hospitals continue to slow the reopen for elective surgeries, we expect census to start rebounding.
Our shift gears now to focus on the government release measures thus far.
In addition to the positive revenue and infection control benefits from the waiver of Medicare's three day qualifying stay requirement.
Direct payments to providers have been critical and providing the short term liquidity bridge that most of them if needed.
The families first krona virus response to act provided states with the temporary 6.2% increase in federal medical assistance percentages are f., Matt for their Medicaid programs.
Many states increase skilled nursing Medicaid rates with as Ethernet funds and we believe mortgage will do so.
Our updated estimated impact to our Smith tenants from the additional F. match funding is approximately 21.1 million through July.
There's also the Corona virus aid release, and economic Security actor Cures Act and it several components.
The first three rounds of Cures Act disbursements plus the lifting of sequestration account for an estimated benefit to our Smith tenants of approximately 86.5 million so far.
Although one of our tenants announced on Wednesday that they have they are not going to need the cares Act funds.
And the Dave refunded their share of it to the federal government.
Thanks to these emergency measures as well as a speedy adjustments of our 10th at our tenants have made liquidity has been sufficient for our operators.
Providing necessary runway for the fundamentals to recover as everyone works through this.
And we should mentioned that in addition to those funds CMS announced on July 30 Onest.
2.2% increase to Medicare rates, starting with the new October 1st fiscal year, resulting in an estimated 750 million in additional revenue next year for the sector.
Now of course, there's intense interest in the future of Covance impact on the industry.
How long with the state of emergency last and while the government funding be sufficient.
Our belief from day, one has been and continues to be at skilled nursing as a necessary component of the continuum of care and its state and federal governments will not allow the industry to fail.
We can't predict how long the recovery will take but there are four milestones that we're tracking to judge how close we are getting to turning the corner uncovered.
The first milestone is critical capability that includes a couple of key elements like Greg talked about we need point of care rapid result testing solution that all skilled nursing seniors housing facilities. We're pleased to see this starting to happen now.
Also included in clinical capability or the continued advances in therapy is for treating patients infected by the virus.
Second milestone, we monitor closely the government funding.
The fourth round of funding for nursing homes, as recently announced were $5 billion, we have yet to see exactly how it will be distributed but all indications are that it will be more targeted toward those and greatest need.
One of those great an immediate needs is in private pay seniors housing, which is only barely starting to get attention from lawmakers.
Caretrust as recently made a significant contribution on behalf of our seniors housing operators to the lobbying effort underway to educate legislators on the critical need for relief funding for private pay seniors housing operators. The success of this effort is critical for the nations seniors and the people who serve them.
The third milestone we're watching this hospital volumes, both through the emergency Department and electric procedures, returning to pretend demick levels.
Recently, the center for disease control reported that by the month of May Emergency Department visits a declined 42% from pretend demick levels in the 10 weeks following the declaration of than National Emergency room visits to the emergency department by people over the age of 75 for heart attack dropped by it.
Definitely 28% and for stroke by 24%.
The recent resurgent of Cove, it may extend that trend.
In the fourth milestone of course is the vaccine and we're encouraged by the aggressive efforts by the industry and the FDA to bring an effective vaccine to market in record time.
Some of these milestones will be met simultaneously across the industry and others will be operator and market specific.
To wrap up we continued to be proud of our association with people and companies who are managing so well through these extraordinary circumstances.
And like I said last quarter as we weigh the current challenges along with the support provided today, we continue to see a path forward for operators to continue to care for their residents.
Keep their caregivers employed and pay their rent as they fulfill their role as a critical part of the solution to this crisis.
With that I'll pass the call over to Mark talked about investments Mark.
Thanks, Dave and Hello, everyone on the investment for Q2 is pretty quiet for us from a closing perspective, but it wasn't from a lack of effort. We continue to be open for business looking for an external growth opportunities at work for operator bench as well as for us.
Most of the deals we chase that fit our box, where either miss timed or mispriced, perhaps that's why one industry publication reported this week.
Healthcare M&A for Q2 was in the lightest average and much of it was in Europe not the U.S.
The pricing reset that one might logically expect in the current environment.
It has been slow to materialize at least on the solar side.
This is not unusual and our experience and we continue to push.
Sellers for realistic pricing well at the same time acknowledging that buyers must be considered it too.
But as you might imagine.
The price discovery process is more unpredictable than ever right now.
So we're sticking to our underwriting standards, while we continue to aggressively pursue deals even as we attempt to adjust on the fly for the uncertainties posed by the ongoing pandemic.
In addition to historical cash flows another underwriting metrics, we would normally consider.
There are additional factors that have lately come into sharper focus in our underwriting including.
The strength or weakness and operating profile of the outgoing operator or they too large or two inefficient to quickly respond to the rapid changes affecting the business.
Where are the two small or two and sophisticated to maneuver through today's changing environment.
We're looking harder at skilled mix average daily reimbursement rates and how well current operators are capturing revenue.
We are analyzing their staffing patterns and other operating expenses for evidence of under management that can easily be corrected.
And perhaps most importantly, we're looking very hard at our incoming operator and their plan for the assets.
As it enhanced their economies of scale.
How much and how fast do we think they can change the up operating profile of the asset through the execution of their business plan.
And what evidence do we have of their operational history, but there are likely to be successful.
That's an oversimplify simplification of the process, but hopefully you get the idea.
Plus after we factor in all of the above at the moment there are still covered related headwinds and we must account for which is tricky, but not impossible as evidenced by our pipeline, which I'll discuss in a moment.
Thankfully the current investment of our has begun to show signs of life in recent weeks therapeutic appear to be more senior housing opportunities.
There are still made up of mostly broken or non stabilized assets.
In some SNF operators that appear to be finally, seeing a window of opportunity to exit the business.
So a lot of those assets are challenged as well.
But we continue to dig through the opportunities in mind for the diamonds in Iraq.
So despite the challenging bid ask spread we're cautiously optimistic that we will see and be competitive on more opportunities as we head towards the end of the year.
As a reminder year to date, we've executed on 26 million in new investments.
Current pipeline system, the $125 million to $150 million range. It consists of mainly singles and doubles in both the Smith and seniors housing spaces.
Pipeline also includes a few portfolio opportunities that will not only strengthen existing tenant relationships, but will also allow us to further diversify our tenant base by commencing forming relationships with outstanding operators that we have importing for some time.
Please remember that when we quarter fight, we only quote deals that we are actively pursuing under our current underwriting standards and then only if we have a reasonable level of confidence that we can lock them up in closing them in the relative near term.
And now I'll turn it over to build to discuss the financials.
Thanks Mark.
For the quarter normalized FFO was 32.1 million or 34 cents per share normalized Fad was 33.6 million or 35 cents per share.
At quarter end, our payout ratio remains at four among the lowest of our peers at approximately 74% a normalized FFO and 71% normalize that they do.
Leverage was at an all time low on a net debt to normalized EBITDA ratio basis, a 3.2 times and net debt to enterprise value was 23%.
During the first quarter, we put in place a new 500 million dollar ATM and 150 million dollar stock buyback plan.
Neither had been utilized today.
Our liquidity remains extremely strong with more than 20 million of cash on hand today, even after having recently paid 8 million of semi annual interest on our bonds and 24 million of quarterly common dividends.
We also have 600 million of availability under our revolver and we produced almost 9 million of cash per quarter.
After this year's increase in our dividend.
To give you an idea just how much liquidity, we have if we were to acquire roughly 300 million of assets per year over the next two years at yields approximately what we have done historically and funded those investments exclusively with our revolver and retain cash we would still be just under the high end.
Of our stated target leverage range of four to five times on a debt to EBITDA basis.
Cash collections for contractual cash rent July were just under 99% and so far in August our at 93%. We expect to end August collections at around 99% as well.
Moving onto guidance.
Despite the pandemic, we see no reason at present to alter our guidance for 2020, which as a reminder, called for normalized FFO per share of $1.32 to $1.34 normalized FTD per share of $1.38 to $1.40 based on a diluted weighted average share count at 95.6 million shares.
With the or more than half over let me update you on some of the assumptions that were used in that guidance.
Rental revenues were projected at approximately 167 million for the year, which included $100000 a straight line rent and assumes CPR at an average of 1.75%.
Cpis bumps for June and sense.
I've been around 50, bips, so not including any new investments, we might make in the back half of the year.
I'm expecting rental revenues to be a little less than 167 million for the year.
Interest income was projected to be around 1.3 million.
Given that interest income is already at 2.3 million for the first half of the year, but all the material loans have now been paid off I wouldn't expect interest income for the year to go much higher.
We used the proceeds from the mortgage loan pay offs to fully baked pay down the revolver to zero.
Interest expense was projected to be approximately 26 million.
This assumed a LIBOR rate of 1.75%, which has a lot higher than it is today.
Given where LIBOR is today and that we did pay down the revolver to zero I would expect interest income interest expense to come in a bit lower.
Interest expense also included roughly 2 million of amortization of deferred financing fees and I don't think there will be any change there.
We projected DNA of approximately 13.9 million to 15.8 million, which includes roughly 3.7 million of amortization of stock comp I would expect us to come in towards the high end of the range for the year.
As we have all noted in our comments today, although there are still some uncertainty around what comes next in the pandemic. Our tenants are performing well and were cautiously optimistic about the foreseeable future.
Simply point out the obvious that sick significant developments in the cover 19 pandemic and the government's responses there too could alter our outlook at any time.
In the meantime will be staying close to our tenants and working hard to help them and by extension us to navigate our way through the coming weeks and months.
I will turn it back to Greg.
Thanks, Bill we hope discussion has been helpful. For you. We are grateful for your continued interest in supporting would that be happy to open it up again for questions Valerie.
Thank you, ladies and gentlemen, if you'd like to ask a question. Please press Star then one on your tongue telephone again, if you like that's a question. Please press Star then one.
Our first question crossing Jordan Sadler of Keybanc marketing your line is open.
Thank you and good morning.
I wanted to.
Hi, guys.
Wanted to start off on the pipeline if you could.
Mark you gave some good color but.
Maybe we could dive in a little bit deeper curious about sort of.
Nick maybe to get split it out in terms of at present seniors housing versus nets.
But also.
No geotagging pricing, so I'm curious to.
No geographically.
You know if you're if you're able to look a little bit more broadly given where the federal support or you kind of.
Yes, federal support for snaps and health care generally kind of looking a little bit more broadly.
Then you might have otherwise and then.
On on pricing are you seeing any dislocation that would get you what might ordinarily be.
Well im more attractive pricing.
So so let me start off with with the first of your three or four questions. So from a mix perspective, it's.
It's about 70 30 Smith for seniors housing.
From a geographical perspective, I think that's actually the most important.
Piece of our underwriting if you look at certain states that have not been impacted as severe Lee.
You know from an underwriting perspective, it's a lot easier you can you can certainly stripped out.
The covered related expenses from as well as the stimulus and any any revenue uptick so that those are.
Buildings on an asset by asset basis that has that had the obviously had little to no covered exposure.
Our fairly straightforward and and in fact.
A couple of those fit the profile of assets in our in our current pipeline.
And then you get to the broader cut a geographical question you have certain states.
Like California for instance, where on a pre covered basis buildings were being traded out.
Kind of the highest price per bed.
Metrics that.
We've ever seen.
They can see California continues to be an extremely hot market and so operators and buyers.
We will continue to be very aggressive.
You know out west.
Well in the Midwest and certainly up in.
The northeast in some states can't give buildings away.
Because of reimbursement because the length of stay.
Because of.
The impact of cold itself.
So.
To conclude and that kind of helped pull it all together I would say.
Jude geography is.
Very very important and.
You know what states are doing to support.
'cause it.
Hello.
In California, you know there's talk of a couple of increased.
Increases to Medicaid over the next 12 to 18 months.
So we factored that in.
While wall.
Other states, we've seen we've seen a hit for and we are hearing that there could potentially be.
Some challenges with the Medicaid rates so.
So geography is probably the biggest consideration that.
One of the biggest considerations that we have as we look to look to bring on acquisitions.
Okay, and then just as a follow up and I'll yield floored on.
Well it goes I mean, not I'm not sure if I'm reading you as you know, California is more attractive.
Because of what that is doing are more expensive because of what they're going in so kind of curious.
Would you be interested and to the value planes and like I think the Midwestern northeast where is that stuff just too risky.
Well I think it depends you know.
As we've always said, it's it's operator first and if operators feel like they can go into certain Midwest markets or even northeastern markets and execute then.
Then we would go there now and obviously adjust our underwriting.
And come up with value based on where they think they can execute on their business plan. So we would obviously take take into consideration what the in place cash flows are doing.
And then adjust for coated and other factors. So we continue to be operator, led and as folks want to grow even in markets that you may be perceived as as.
You know somewhat challenged on the rate fraud.
If there's a reason as I said in my prepared remarks from the scale or a business plan perspective, and then we would go there we would obviously need to risk adjust our pricing.
Okay. Thank you.
Thank you.
Our next question confidant and use of Raymond James Your line is open.
Hey, good afternoon are good morning out there yes.
Can you give us some details on the tenant for tenants that are not current on rents right now what's their asset mix in your expectations for them, giving current.
Hey, Jonathan's, Dave right now we haven't made.
Made any.
Any rent concessions and everybody is correct.
Basically we've got one operator, that's not in our top 10 list, but actually it too.
Seniors housing operators not in our top 10 list.
That aren't exactly current one of those has asked for.
To considers a rent concession and we've just begun to evaluate that.
So that's that's a current status on.
Rents the two tenants that haven't paid are one is premier one is noble Nate and they don't usually pay until around the 10th.
In line with.
Past months.
Got it okay.
Bill what what percentage of rents, earning cash basis today I don't know if it's any but.
Yes, it could you give us that percentage and then are there any operators on the threshold of maybe going from accrual to cash basis.
A lot of the straight line rent or call. It the tenants that had big straight line rents associated with their rental incomes were taken to cash last year in Q3.
So we don't really have and as you heard in my comments on guidance, we don't have a lot of straight line rent only 100000.
As expected to be recognized this year.
So as I look at rental revenues.
There are almost call at all on a cash basis.
Okay.
Fair enough.
And then for Dave.
You said seniors housing occupancy is flat I believe since March yes, I look at.
Premiere the coverage there continues to deteriorate can you just talk about what's going on there what's the plan to reverse that trend.
Okay, hopefully when things can recover.
The story really hasn't changed very much there Jonathan.
The.
There there occupancy has actually held steady through the pandemic as well.
If you recall from prior calls last year. They they had some challenges in real headwinds that a couple of their buildings from a regulatory perspective, and just by the end of last year. They were the turned the corner there but.
Quite a bit of ground to to cover going into the pandemic, we saw occupancy pick up.
And it's just held steady sense.
So it's a challenging time for anybody that had been.
You know turning things around.
To make a lot of progress with with that during a pandemic.
And so it's actually.
We're pretty gratified to see them just hold steady through that so far.
Okay.
Appreciate that color I got one more.
Maybe her.
Maybe mark but.
Yes, there are some epay detailed comments in the press release, then if I were interesting as it relates extra progress and you talked about the pipe geographic mix, yes that mix earlier on Jordan's question, but I.
I mean, what's going to be that deciding factor on actually closing and announcing some of those deals.
They're going to be.
Continued improvement in case counter just sellers finally.
Maybe acquiescing on price I.
I mean that pipelines about the same I think as last quarter Im just wondering.
When do we actually see it come through and I know you're hopeful by the end of the year, but trying to get maybe little bit better visibility on timing.
Yes.
I would say the deals we're actively pursuing where.
We're just making sure that.
At our operators are comfortable.
At our call it normal diligence is.
You know is checking out and then and then obviously.
We need to solve for the unknowns and incidentally you do that from a structural perspective.
So what happens if co. The if there's a covered outbreak a week before close those types of things so.
You know in every deal to little bit different every sellers little little bit different. So we have to structurally account for that and and so I would say.
This is Greg alluded to in his in his comments that.
Hopefully, we'll be announcing some soon as we.
Then working hard over the past.
Six months to.
To get to the point work, where we can say that.
Okay, all right of the foreseeing that I appreciate the time.
Thanks.
Thank you. Our next question comes from Christopher Tier Barton, Sir Your line is open.
Hey, guys here going on for Connor. So first just wanted to touch on so you guys have high exposure states like Texas, and California, maybe touch on the contingency plan around these stage spacing spikes in cases recently and what do you have any new protocols in place helped mitigate it.
Yes.
Yes, as you look at our portfolio in Texas, and California, you'll see the heavy concentration there of the insane group as our primary 10 in those states.
Having insane group as their primary tenant is a pretty strong contingency plan.
And so there that's their coverage as you can see has has been incredible.
It just announced and had their earnings call yesterday and had a record record performance.
So well.
But we're certainly monitoring and staying close to all of our operators there.
And throughout the portfolio, we take quite a bit of comfort.
As.
As we see these guys not just end sign but Oliver operators.
You know mitigate quite a bit.
Any drops in overall census by seeing that skilled mix increase.
In spite of the.
The virus spreading there.
We don't have elevated concern for those two states.
Okay. Thanks to the color there and the follow up How's your approach to testing changed since the first quarter I know last where do you guys mentioned that the availability of is largely dictated by local authorities. So we've been able to kind of source it on your own.
Nothing.
We have not been not for the lack of trying.
So we are pleased with the federal government finally, making some progress there in shipping directly to nursing homes.
Our operators have largely struck.
Deals or relationships with local labs in order to to solve the problem on their own.
We have continued as recently as a few days ago.
Pounding on the door of companies like Abbott to try to.
Shake loose.
Those those rapid result, molecular testing capabilities for our operators.
But there.
You know their supply chain hasn't caught up to demand.
And thus far has allowed us as a as a new relationship.
To source anything for tenants, but we continue to push for that.
Okay, great time.
Welcome.
Thank you I'm showing no questions at this time I'm trying to call back over to Greg basically for any closing remarks.
Things Valerie and again, thanks, everybody for being on the call today, if you have any other questions.
Where to find US we're happy to to take your calls have a good weekend.
Ladies and gentlemen, this does conclude todays conference.
On the all disconnect have a wonderful day.
We're door.
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