Q2 2020 Digirad Corp Earnings Call
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Ladies and gentlemen.
<unk> second quarter 2020 results conference call.
Lighter certain statements made during the conference calls, including a question that your periods are forward looking statements.
In the meeting of the private Securities Litigation Reform Act was 1995 and other federal Securities laws.
Forward looking statements include but are not limited to statements about the company's revenues cost and expenses margins operations financial results acquisitions and other topics related to just yet.
This strategy and outlook.
These forward looking statements are based on current assumptions and expectations.
Risks and uncertainties that could cause actual results.
And.
Financial performance to differ materially risks and uncertainties include but are not limited to [laughter] economic conditions technological change industry trends and changes in the company's market and competition.
More information about the risks and uncertainties, it's available in the company's filings U.S. Securities and Exchange Commission.
<unk> annual report on form 10-K quarterly reports on form 10-Q, and current report on form 8-K, as well as today's press release.
The information discussed on this morning's conference call. It should be used in conjunction with the consolidated financial statements and notes included in those reports.
Only as of today this call.
The company undertakes no obligation to update these forward looking statements.
In the earnings release today, and its common management makes reference you've talked about results as well as adjusted results. You. Adjusted results are non-GAAP and do not include non recurring charges.
Well show adjusted EBITDA, which is a non-GAAP measure that further excludes.
Depreciation and amortization interest taxes and stock based compensation.
Finally, free cash flow with which is a non-GAAP measure taking operating cash flow and subtracting cash paying for capital expenditures.
Management believes the presentations of these non-GAAP measures along with GAAP financial statements and reconciliations are hard to Mark more thorough analysis ongoing financial performance investors can find the reconciliation of results on a GAAP versus non-GAAP basis <unk> earnings release.
If you didn't receive a copy of the press release and would like one please contact address at 8.87 Twosix. One 600 after the call or its Investor Relations representative Wieneke any of the equity group that you wanted to 8369611.
Also this call's being broadcast live over the Internet and May be accessed did you add website www dot did your red Dot com.
After the call a replay will also be available on the company's website.
No.
It's now my pleasure to introduce Jeff children, I'll, just get dressed like you may begin.
[noise]. Thank you operator, good morning, and thank you all for joining us today for a second quarter 20, Tony results Conference call on the call with me today or Matt Molchan, our CEO and our chief operating a chief Financial Officer, David Noble.
Since September 10th 2019 did read has been operating as a diversified holding company.
We're holdco with Threed business divisions health care building and construction and real estate and then definitely.
Did you add Q2 and first half 2020 result include financial and operational data of these two newly created divisions building and construction in real estate investments, but there are no operational or financial data reported.
In the 2019 corresponding periods for these two divisions since the ATM acquisition closed in September of 2019.
During the second quarter of 2020, we continue to execute on our Holdco growth strategy and value enhancement initiatives to increase revenue cash flow earnings and ultimately stockholder value.
Through both internal investments and bolt on acquisitions.
We also expect to create new business divisions over time through the disciplined acquisition of business is complimentary to our holding company structure.
In addition, we're continuing to explore the potential divestiture of non strategic assets.
To finance our expansion strategy in growth opportunities, especially for commercial projects and are building and construction division.
In May 2020, we completed a public offering of the company's common stock and were able to raised gross proceeds.
Five and a half million, including the exercise of the underwriters' overallotment option.
As previously announced our business was adversely impacted by the recent cobot 19 outbreak and the accompanying economic downturn this downturn as well as the uncertainty regarding a duration speed intensity of the outbreak has led to a reduction in demand for our services.
Turning to the divisions or health care Division revenue for all three businesses declined as many dr. offices temporary closed in mid March and many hospitals reduce non or burn emergency services.
In late June we noticed the slow but steady returned to normal operations as Dr. offices reopened and hospital started to once again perform non emergency scanning procedures.
And our diagnostic services and mobile health care businesses, we continue to maintain a solid core customer base with growing prospective client pipeline.
We aim to increase the utilization of our fleet and improve the density of our route based businesses.
And diagnostic imaging or sales pipeline is solid and growing.
We continue to focus on the sale of our unique ergo, an exact plus cameras and our as needed when needed and where needed camera rental programs.
For a building and construction division, we experienced some startup delays.
On a few major commercial projects in Q2, but our outlook for the rest of the year is strong.
KBS was recently awarded two significant commercial projects or 5.2 million.
Contract to manufacture living units for the U.S. Army and a 2 million dollar contract to manufacture housing units for military veterans.
Deliveries for these projects are expected to be completed before yearend.
To meet the higher manufacturing apartments for these two commercial projects KBS recently hired back all factory employees previously furloughed due to covert 19.
And in addition, [noise].
Increased its workforce by over 20%.
Our growth strategy for the building and construction division is to further expand their commercial construction business and new England for KBS.
These caveats grows as expected in 2020, we will export reopening the Oxford, Maine plant, which would effectively double KBS is production capacity.
The company is vigilantly monitoring the situation surrounding cobot 19, pandemic and we'll continue to proactively address the situation as it evolves.
Do the flexibility of her work force any at actions we've taken the company is confident.
It can continue to manage.
Its business and mitigate risk in this challenging environment, while retaining the ability to me clients' needs what activity improves I.
Assuming our business returns to normal levels in the coming months, we expect the second half of 2020 to be more or less on track with our internal projections at the beginning of the year prior to covert 19.
With that I'll turn it over to our health care CEO, Matt Molchan, Matt. Please go ahead.
Thanks, Jeff.
Revenue from our health care Division in Q2, 2020 fell by 32.9% to 17.3 million over the same period in the prior year. This was due to the cobot 19 pandemic as many doctors offices were closed several hospitals stop performing non life threatening procedures.
Yes, Im scans between April and June.
Gross profit for Q2, 2020 reporting period decreased by 41.4% compared to the same period last year due to lower revenue, which was as we stated the result, with the cobot 19 pandemic.
Looking at the divisions within health care.
Agnostic services revenue gross margin percentage for the second quarter, 20, 27.1 million and 13.3% compared to 12.3 million and 22.8% in last year's second quarter. The decrease in diagnostic services revenue and a decrease in gross margin percentage in the quick.
Quarter compared to the prior year was primarily due to a decrease in testing days and scans, resulting from the impact of the cobot 19 pandemic.
Our mobile health care business produced revenue gross margin in the second quarter of 2020.
7.8 million and 10.9%, respectively, compared to 10.4 million and 12.4% respectively for the same period in prior year.
Quarter over quarter gross profit decrease in the mobile health care business was primarily due to cope with 19 pandemic and the associated public health measures that were put in place.
Diagnostic imaging business revenue gross margin for the second quarter, 2020 was 2.3 million and 52.8%, respectively compared to 3.0 million and 35.4% respectively. In the prior year second quarter. The increase in diagnostic imaging gross margin was due.
To the decrease the costs associated with their camera support business.
Now I'm, turning the call to Dave Noble, our CFO, who will provide additional financial highlights for the second quarter day. Please go ahead.
Hi, Thanks, Matt.
Okay second quarter, 2020 building and construction division revenue and gross margin were $5 million and 20.9% respectively.
Given that the completion of the merger with 80 RM occurred only on September 10th 2019, there was no operational or financial data recorded in the 2019 corresponding period from the building and construction division nor from the real estate and investment Division.
For the three months of Q2 2020 consolidated SGN a decreased by 2.4% compared to Q2 2019.
Due to a $1.2 million a cost savings in selling and travel related expenses from the Digirads Health Division.
Which was mainly offset from the addition of our building and construction Division, which was not recorded as I mentioned in Q2 2019.
During the quarter, we also continued oh.
We can continue to reduce costs for contracted outside services, particularly in the I.T. arena and HR in an effort to spur the streamline our internal operations.
Moving onto the bottom line results for the second quarter of 2020, we had a net loss from continuing operations of $1.3 million. This compared to a net loss from continuing operations in Q2 of 2019 of 1.5 million.
Non-GAAP adjusted net loss from continuing operations in the second quarter of 2020.
Point, Threemillion or 11 cents adjusted net loss per share compared to adjusted net income of 87000 or four cents adjusted net income per share in the second quarter of last year.
Of note on May 28, 2020, we completed a public offering through the issuance of 2.225 million shares of our common stock and 2.225 million warrants to purchase up to an additional 1 million 112500 shares some of which have already been exercised.
Subsequently on June 10th or underwriter Maxim exercise, the overallotment option and brought the total number of shares of common stock issued in the offering to 2.4 or 5 million and total gross proceeds to approximately 5.5 million.
Thus per share amounts for the Q2 2020 period, reflecting new share count.
Non-GAAP adjusted EBITDA decreased to 1.8 million for the second quarter of 2020 compared to 2.1 million in the second quarter of last year, driven down modestly by the decrease in revenue, resulting from the cobot 19 pandemic.
For the second quarter 2020, operating cash flow was point Sixmillion and free cash outflow was point sixmillion compared to operating cash inflow of 2.6 million in free cash inflow of 3.3 million in the second quarter of last year. However, we did maintain just above breakeven.
Free cash flow in the first half despite the challenges of cobot.
As of June Thirtyth 2020, the outstanding balance on our credit facilities was 25.7 million, but this includes 6.7 million and PPP funds, which we anticipate will be fully forgiven.
Our overall net debt position, including all cash and cash equivalents was 16.5 million at the end of second quarter.
Now I'd like to turn the call over the operator for questions.
Thank you, ladies and gentlemen, if he'd like to ask the question. Please press star one on your telephone keypad and transformational indicate your line is no question King you may push start you if you'd like to remove your question from the Q. The participants you think speaker equipment, it maybe necessary to pick up the handset before pressing the star King.
One moment, please always poll for questions.
Our first question comes from the line of Theodore O'neill with Litchfield Health Research. Please proceed with your question. Thank you very much a question on KBS.
Hearing anecdotal tales of shortages spot shortages in different kinds of lumber can you talk about whether you're seeing anything like that or are you have ways to mitigate that or talk about the supply chain.
Yeah. We you know, we've certainly seen some price increases which reflect some shortages in production due to co bid, but we have not actually.
We are in shortages you know we are operating at a fairly full capacity right now and as Jeff mentioned, we actually increased our labor force given the number of units that were putting out per week. So we have not had supply chain disruptions, so far but prices for lumber have increased pretty significantly in the last few months.
Well one of the thing I would add that was.
Lucky Fortuitous is we completed the equity offering at the end of May and then shortly thereafter, we signed up.
These two significant commercial projects and because we had a funding.
We started ordering quite a bit of material at that time and so.
We we somewhat be beat the surge not entirely but that's that's been helpful. What's a good point.
That makes sense.
So you've talked here about the contractor the army and delivering the products by the before the end of the year.
What's coming behind that can you talk about bidding activity.
Yeah, I mean, it's hard to say too much about the pipeline.
Anything that's happened after the second quarter, but no I I'd say sales activity continues to be incredibly robust for us.
We are booked pretty much through the year.
We are monitoring lead times, obviously, we want to have lead time short enough that people don't go elsewhere, and so as Jeff mentioned as well we're constantly monitoring whether it's time to two to reevaluate opening that second plant and if we need to do that to reduce lead times.
Even this year I'm not suggesting we're going to do it this year, but we are ready to do that when and if necessary.
Okay. Thanks very much.
[laughter]. Thank you. Our next question comes from the line Jets Cold Cold Lars diving. Its capital. Please proceed with your question.
Hi.
Jeff You mentioned at the end of your comments, you said something about being on track with.
Your initial outlook for the company did I Didnt hear that.
Correctly can you just repeat we you said at the end of your prepared comments sure you know like a lot of companies, we set a budget at the beginning of the year.
And then cobot struck and the February March timeframe.
And we had a nationwide slow down throughout Q2, and so I'm most companies.
You know they they still have a budget on paper, but it kind of became a somewhat move somewhat stale after coated and although we're not officially reinstating guidance. When we look out to the second half of this year.
I think.
Q3 will be better than Q2, we think Q4 will.
The better than Q3, and if things play out the way we expect the second half of the year could look.
Pretty similar to what our.
Original budget was for the second half of the year not for the full year, but for the.
The second half the year.
Great. Thanks that elaboration and can you give any general comment about if you could be positive cash flow for the year.
We strongly I think we will be.
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You know, we almost where in Q2 I think the cash flow was minus 600000.
So it was.
A lot better than some worst case scenarios.
And given that Q2 was so incredibly affected by Kobe downturn.
We strongly think.
Q3 in Q4 will be much much better.
The only caveat and I think this is a high class problem is that as sales pick up.
We do have to invest more in working capital said another way, we'll have more cash tied up and a AR and inventory, but that's a really high class problem. If that's because sales are picking up.
Matt maybe you want to comment a little bit about what you saw on the health care side of the business as the quarter progressed kind of what was the worst and and what it June.
Look like versus the worst point in the in the quarter and.
Kind of what you're what you're seeing now versus what what you saw at the worst of at a few months ago.
Yeah sure.
Yeah, I mean, when when this first units at the end of March.
Mid March and you know through April and May that was the worst the worst of it.
You know a lot of doctors offices, obviously, who were closed and a lot of the areas, where we are operating on more services businesses bought hospitals as I mentioned pulled back on non life threatening procedures and scans specifically so we definitely saw some impact there.
So the impact in our camera sales business as well as as you.
People were trying to figure out.
Trying to attack the problem cobot 19, rather than looking at capital expenditures and things like that but but since that time really beginning in June in areas that were working and we've got.
This is opened up scans continuing to happen and you know the business. At this point is is as robust as it has ever been in terms of pre coded.
In terms of offices are open.
Patients are scanning and what I mean by better Dan is that you know there was a small amount or we're experiencing amount of pent up demand for different types and examinations that were not performed during the the coated.
Shutdowns and those are coming back to us. So so people are busy.
During the second quarter, we had full load is we had mentioned.
Over 180 people from our <unk> or health care Division and we brought them all back were up out there I'm running the business and servicing our customers and their patients.
Yeah, just a this is Dave I just want to add a couple of other points.
What Matt and Jeff said on the growth side as Jeff said, we're going to be using some working capital I mean, if you think about KBS.
We're not even halfway into our revolver. There. So we've got significant headroom as a our gross we borrow against they are inventory and finished goods. So we've got a lot of excess liquidity. There and also if you look at our press release, we have cash and cash equivalents of $9.3 million as of the end of Q2 and that's versus one.
A million dollars a year ago. So we've come out of the first wave at least of this cobot crisis in a far better positioned liquidity wise and we've got some real growth potential that we're seeing a KBR. So.
We feel pretty comfortable and I do believe we should be free cash flow positive.
In the second half I mean anything can happen but.
That's what that's how I feel at this point.
Great. Thanks for all that elaboration. Then lastly was mentioned in the press release and accompanying said this before about.
Hi, waiting selling noncore assets and can you comment about that.
How many assets, you're considering selling and what the total consideration might be.
Yeah.
As you might guess that's this is Jeff that's a little bit sensitive to give specifics, but if you look at what we've done in the past.
It has added up to a significant amount going back a couple of years ago, we sold.
The the service contracts and our Mdss business I think that was.
In the six to 8 million range and then.
This all came with an acquisition we had quite a few buildings.
In.
Fargo area that came with an acquisition that we weren't using we ended up selling all those businesses off.
Ill those buildings off and then we had another business and this is towards the end of 2018 I believe that was about 5 million in revenue, but no EBITDA at all and we sold that business for 2 million. So just as we do acquisitions.
You know those acquisitions are often come with things that we ultimately decide our non core and.
I would refer you back to the filings that we made around the time of our equity offering.
And just say that.
If it was de Minimis, we wouldn't have had to say anything but.
So the fact that we did make some disclosures around that at the time, we did our equity offering.
You know tells you that.
We are looking at different things and.
It's not that significant.
Okay, great Thanks to help.
Thank you. Our next question comes from the line of Mark No Catelli with Golden Hill Capital. Please proceed with your question.
Hey, guys. Thanks for taking my call.
Jeff and I know, you're reluctant to give projections, especially in this environment, but as you as you alluded to earlier about you know pre coal would expectations.
If we can just worked through the different divisions for a moment I think to trying to shape the back half of the year barring any exone is impacts from co bid.
Do you expect the health care division to be back at that kind of pre co bid run rate.
You know should at some point.
It all depends on.
Got downs and People's comfort level.
Going out to doctors' appointments, but Matt would you mind.
Yeah.
Yeah, I think the things that we I think through their.
For the specifically for health care services businesses, which we call or D. I asked business and our mobile health care business. Those businesses I. Just mentioned you know we've got to people back we're operating we're providing gaining services.
Yes, correct, you know certain areas.
Patients on all coming back, but so the volume is down.
But we're operating and we're seeing other areas where volume is because of the point that demand. So that those services business seemed to be on flat.
I would say that our diagnostic imaging business, our camera business, Okay, which is a capital purchase that we won't be the one that we'd have the most question about as to when capital budgets in hospitals will be opened up.
To proceed with purchases of our camera. So that's what we're watching closely our camera support business, which is opposed walking support.
Of those form is that we've already sold has been strong for us at the root we saw some good gains in the second quarter. Since we were able to build on lot of those contracts and obviously due to travel restrictions. We didn't have a lot of the cost associated we normally work with fixing cameras or maintain example, so so again, we do see.
But we do see camera sales as as question a question Mark for the remainder of the year.
The health of business.
Okay. Okay. Thanks.
Maybe than we can just move where we think where we see the real growth in this company in the.
In the construction segment, maybe just start with edge builder.
Yes, certainly you know things got disrupted early on in the second quarter, but now with people staying at home and doing a lot more home repairs and as we've talked about lumber prices increasing are you seeing that also returning to pre cobot or even potentially higher than pre kobe run rate as far as that the activity.
I know yet as a short period of time, but do you think about June through July are you seeing better activity now.
Yeah, what I would say is I mean, if we take the two businesses separately, obviously, they're related but they serve different markets. So lets first take edge builder out in Minneapolis, where we have the retail lumber yard as well as the structural wall panels manufacturing.
The commercial side the wall panel manufacturing our pipeline today is stronger than it was that a year ago. At this time and we had a great finished to last year. If you remember if you look in our results. So we feel very good about that and a lot of loose lumber gets package with those contracts from our lumber yard and then on the more read.
Tail oriented side, you know people are staying home more they're doing decks, they're doing kitchens, they're doing a lot of work because they can't travel right and so we're seeing you know I'm not going to say, it's a stronger than a year ago on that side, but it's definitely robust if there's any concern I have is at lumber prices in wood products are increasing in price, but it's not affecting our mom.
Agents, because we're you know for the big projects, we price them and by the lumber we were in a better liquidity position to do that and the retail is kind of a cost plus margin. So we have good margins on that regardless, so that business I think had a slow start but it was looking pretty good.
June and July on the KBS side, you know we've got these two commercial projects I'm sorry can you just on the edge builders. The last year, you did 18 19 million a revenue.
No look the second quarter is disruptive but are you are saying you're hoping.
If things continue on the same trend that you're in second half should hopefully trend better than that type of run rate.
Ticket, let's say that it could definitely trend in that run rate the last year run rate.
Maybe maybe a little bit better okay got it it's a little early to know me. These the issue is the commercial projects are lumpy and so if they get delayed a month. It can move revenue that we thought was December to January that kind of thing, but we feel very good about the pipeline and the sales activity.
And we did not two months ago. So we feel quite quite good about it now on the KBS side, you know we're into the two projects that Jeff mentioned a lot of good things are coming from that people are seeing what we're doing we're getting a tremendous amount of inquiry both on the sort of single family side and additional multifamily.
I will scale projects.
As I mentioned, our production schedule is pretty full we're having to kind of create gaps for stuff that comes in over the transom. So that we don't have to push people out too far. So you know as Jeff said, we think that that business on a run rate basis is going to look a lot like we thought it would in December.
Despite what happened the first half of this year so.
Those businesses are doing well, we feel very good about those businesses right now.
For the other edification of this call and enter myself as a reminder, when you if that is running at full capacity I know you look at it either on a dollar amount or how many panels you can produce how many box you can produce in any given a week or month can you just have you're running full capacity on that one.
Factory, what what is that run rate look like.
We think it can run it 10, but you know we have getting that attainment is you know is not without its challenges right I'm, sorry, but 10 10 boxes and units per week, we can run out right. So if you take factoring a little bit of vacation 50 weak year, that's 500 here yeah.
500, a U 500 units a year and what's the average selling price, it's a little bit over 50000 year to date, it's picking up each year.
Okay, So you're saying.
$25 million run rate would be if that things running humming.
Yes, that's correct.
So.
And you think you're you're robust inquiry is.
Potentially pushing you guys to potentially open up the other.
Yeah, I mean, the challenges on the commercial scale projects is they take more time to permit and so you know when residential single family homes come in we can get a prospect qualify it sell it and build it in a couple of months that's better visibility in a sense. These commercial projects. You know we had the two that are online now and going very very.
Well one of those was expected to.
Get online in a mid excuse me in mid February and it didn't get online until the end of May and everything is going fine, but that was outside of our control. It was permitting issues with with the end user, but we're getting a tremendous amount of inquiry across the board whether its education related housing.
Multifamily housing workforce housing affordable housing, we really are kind of helping the game, but it's a long term strategy and it to again it takes time to work through the designs and.
And such but we feel very very good about that business, we have a very robust pipeline and a very robust backlog.
Okay. So just maybe in conclusion I apologize for taking them. So much time I'm just trying to put some brackets around how you're going to create shareholder value from here.
Looking into calendar 21, if if the if I say, if obviously the healthcare business returns to normal run rate pre co bid.
I guess, roughly 100 million edge builder, hopefully trending 18 20 million.
And KBS certainly you know if the one line is running all out and potentially into the other line you should be looking at a 25 million plus type or run rate.
Yeah, I think those numbers sound right I think the upside to that as if we you know continue to see the level of inquiry a KBS than we can get a second plant opened I mean, let's not assume we can quickly get to running at full capacity, but you have the capacity to do 20 boxes a week, if we have the demand.
So hopefully hopefully you're looking at something on a run rate 21 150 million of total revenue.
What do you look at how do you looking at the SGN a from between here and there.
Is it pretty much where you want it to be sold the operating leverage and EBITDA margin expansion should start to really kick in.
I think there's tremendous operating leverage I don't have those numbers with me right now but to open a second plant for example in the KBS side, we would not need to repeat all of the fixed cost by any means in fact, we already own that plant and are paying to carry it. So there might be a couple of senior positions operations folks et cetera, but I think there's.
Tremendous operating leverage I mean.
EBITDA margins net net margins would be higher on the second plant than they are in the first and they're pretty good on the first at full capacity.
On a blended basis. The company was doing 150 million under this scenario is it safe to say that you should be at least a 10% EBITDA margin going into a run rate in calendar.
I think I think what one way to look at it.
Last year, the healthcare business had had had a pretty good had a pretty good year.
And our.
EBITDA.
For 2019 was around seven half million 7.7, something like that.
And almost all of that came.
From the health care side.
As we didnt own building and construction for very long.
But if you just look at the.
Margin the percent margin that we generated in 2019.
And take your revenue forecast for 2021.
We would strongly hope to at least at least achieve that percent margin.
<unk>.
Oh, you're saying seven 8% on on a floor.
Yeah.
Okay.
Well I was saying if you're getting the other line open and you've gotten some synergies and.
What I would hope we would be at least 10 or better, but I know you don't want to.
Taking that out too much here I understand why.
Yeah, I know, you're yeah, I understand the math that you're doing in its its is reasonable.
Okay and if that.
Is that a good product would that be good proxy for free cash flow also I'm looking out into 21.
Well, we we do have interest expense, we have a little bit of.
Capex excellent healthcare so.
On the on the on the health care side and then.
You have swings and working capital so I.
Cash flow and working capital is pretty pretty hard to predict.
With with precision, but this is a pretty healthy cash flow generating company and and generates pretty good free cash flow last year. For example, our free cash flow was in the $3 million to $4 million range.
And that was with no contribution from the building and construction division and the scenario that we're talking about for next year, the building and construction division would produce.
Really good.
Free cash flow.
And I guess in conclusion, I guess not to forget you have a nice N a well so you shouldn't be paying any taxes.
Correct.
Okay, Okay, guys nice job thanks for your time.
Thank you.
Thank you I remind you ladies and gentlemen to ask the question. Please press star one I guess telephone keypad.
Our next question comes from minus David Rock child, the private Investor. Please proceed with your question.
Thank you for taking my question, then or sort of and the same question I did hear last quarter.
Yeah. Thank you would be paying that preferred dividend north in the year.
Well when we have something.
Specific to announce we will we will announce it so we.
You know issued debt preferred and it wasn't our.
Intention to.
Forego dividends right out of the gate, but the if you look at the.
The legal document.
The structure of that prefer we're allowed to go a deferred dividends for up to six quarters.
And so.
We hope to not.
Not go that long.
And I would note its cumulative too so it at some point.
The intention would be to catch up.
Okay more waiting patiently aggressive dividends are lost there just a accumulating and.
They'll be paid out eventually.
Okay. Thank you.
Thank you ladies and gentlemen at this time there are no further questions I'd like turn the floor back to Jeff for closing comments.
Thanks, everybody for joining us today and for your interest in our company and if you have any follow up questions. You can contact us the information to contact US is in our press release and we look forward to updating you on our next quarterly call.
Thank you ladies and gentlemen. This concludes today's teleconference. You may disconnect. Your lines. This time. Thank you for your participation.
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