Q3 2021 Neogen Corp Earnings Call
Good morning, and welcome to the Neogen third quarter earnings results Conference call, all participants will be in a listen only mode.
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I would now like to turn the conference over to John Aden, Chief Executive Officer. Please go ahead.
Thank you Chad.
Good morning, and welcome to on a regular quarterly conference call for investors and analysts.
Today, we'll be reporting on the third quarter of 2021 fiscal year, which ended on February 28.
As usual some of the statements made here today could be termed as forward looking statements. These statements are subject to certain risks and uncertainties and our actual results may differ from those that we discuss today.
The risks associated with our business are covered in part on the company's form 10-K as filed with the Securities and Exchange Commission.
In addition to those of you are joining us by live telephone conference I also welcome those of you joining us via the Internet.
Following our prepared comments. This morning, we will entertain questions from participants who have joined this live conference.
I'm joined this morning by our Chief Financial Officer, Steve Quinlan, who will provide detail on our results for the quarter.
We're pleased to report double digit organic growth across our businesses during the third quarter, while at the same time boosting our revenues are a strategically important acquisition of magazine on December 30th.
Our customers and businesses continue to operate in very challenging environments.
Apple 32 per cent of our global employees work in Michigan and until recently did not qualify under any vaccine protocols.
You got no choice to maintain but to maintain the same restrictive safety protocols that we've had in place for about a year now in order to keep our staff safe.
Many of our customers remain in the same situation there may be a loosening or loosening of restrictions, but it'll be many months before our core restaurant supply in foodservice customers. For example will return to their pre COVID-19 demand.
While we're pleased with our performance for the quarter, we continue to fight global markets disruptions caused by the COVID-19 pandemic.
All that said, we believe the third quarter delivered the type of performance Neogen was built to deliver.
Sales of our test kits to detect aflatoxin product refers developed in 1985 surged, 25% as we responded to a mycotoxin outbreak in pet food.
Sadly the outbreak has claimed the lives of more than 100 dogs and chicken and hundreds more across at least 35 countries.
Sales of our equipment to detect spoilage organisms, such as Houston mold grew 45% as we continued to expand placements of our new Solaris energy system, We launched in July.
We received tremendously positive feedback on the system from our core customers and been able to sell on the new markets such as dietary supplement and fractures.
Soliris Mg system is a good example of Neogen expanding its core food safety mission to include food quality applications.
So I'm used to mold may not greatly affect the safety of a product, but it may affect its quality aesthetics and shelf life.
We also had a strong quarterly performance on our animal safety side, where the increase was largely driven by sales of our rodenticide products and increased consumer expenditures on companion animals, especially dogs and cats.
Our diversification continues to be our strength, our deep knowledge and product offerings allow us to grow even in the face of difficult markets.
And I'll ask Steve to run down the numbers.
Alright, Thanks John.
Earlier today Neogen issued a press release announcing the results of our third quarter, which ended on February 28, and I'm pleased to report that revenues for the third quarter increased 17% to $116 7 million from the previous year's third quarter of $99 $9 million.
On an organic basis, our sales increased 13%.
Net income from the third quarter was $13 4 million or 25, a share compared to $12 2 million or 23, a share a year ago.
The results from the third quarter of the year reflect $2 1 million in expenditures on acquisition activities, which did that ultimately come to fruition and a $1.3 million shortfall on interest income compared to last year due to lower yields on our marketable securities combined these two items had about a five cent per.
Share impact on net earnings for the quarter.
For the year to date revenues were $341 million up 10% over the $309 1 million reported last year and net income for the first nine months of fiscal 2021 was $45 1 million or <unk> 85, a share compared to $43, one or <unk> 82 cents a share a year ago.
So over the next few minutes I'll take you through some of the highlights of the quarter.
During the quarter the impact of currency fluctuations on our revenues was minimal reducing our comparative revenues only by approximately 150000 continued weakness in the Brazilian real and the Mexican peso relative to the U S. Dollar were almost entirely offset by recovery of the pound Euro and Australian dollar.
For the year to date in a neutral currency environment revenues would've been approximately $3 4 million higher than we reported.
Revenues for the food safety segment were $58 4 million in the third quarter of fiscal 'twenty, one an increase of 16% compared to $55 million on last year's third quarter acquisitions.
Acquisitions of international distributors in the second half of fiscal 'twenty and the December 30th acquisition of magazine or food quality Diagnostics company contributed to our growth.
On an organic basis sales in the food safety segment increased 11%.
Our line of microbial testing products grew 19% and as John mentioned.
As our innovative Soliris Mg testing platform, which launched in July of 2020 and is used to detect spoilage organism like eastern mould continues to gain market acceptance and is helping us gain customers in new markets.
Natural toxins test kits rose, 14% as the recent pet food recalls have driven demand for increased testing.
Sales of Neogen culture media grew 11% in the quarter helped by new business from a COVID-19 vaccine manufacturer.
While our Acupoint product line designed to help monitor environmental sanitation rose, 5% for the quarter on <unk>.
<unk> test kits were up 8% primarily from sales of our Listeria right now product and our line of allergen test kits increased 3%.
Revenues for our test to detect the presence of antibiotics in milk declined by 10% in the quarter due primarily to lower demand in eastern Europe from a large European distributor, we've put a direct sales team in place to market. These products and are working aggressively to recover this business.
Our international business grew 16% in the quarter and this growth was partly due to two months of sales from the magazine on acquisition.
Our U K business grew 4% in pounds as lower economic activity caused by the pandemic resulted in sluggish sales performance across the organization.
This increase was 9% when converted to U S dollars.
Conversely, the 20% devaluation of the real caused our 12% revenue gain in Brazil to translate to an 11% decline in U S dollars.
In local currency, Brazil had a solid quarter with double digit growth in food safety products genomic services and insecticides due to a large tender order.
Sales at our Neogen Latino America operation based in Mexico City grew 14% in the quarter in local currency, primarily on strength and sales of debt instruments cleaners, and disinfectants and food safety diagnostic kits after adjusting for currency translation on a weaker peso the revenue gain was <unk>.
<unk> two 7%.
Revenue at Neogen, China more than doubled in the quarter driven by increased sales of cleaners and disinfectants to address the ongoing African swine fever outbreak and the Covid pandemic in China and strong sales of genomic services to the swine in dairy cattle markets.
The animal safety segment had another strong quarter recording revenues of $58 3 million up 18% compared to the $49 4 million achieved in last year's third quarter.
Excluding the prior year acquisitions of an Australian distributor and stand guard product line organic sales increased 16%.
Animal care products sold out of our Lexington, Kentucky based manufacturing and distribution distribution center, such as small animal supplements wound care and vitamin Injectables increased 45% and vet instruments, including needles, and syringes rose 15% per quarter.
These increases were primarily the result of increased sales to our largest U S distributors into animal protein markets.
We also benefited from high sales of disposable gloves in the third quarter as several months of backward or PPE shipped to customers.
Offsetting these increases somewhat were lower sales of distributed dairy supplies due to the termination of our distribution agreement last June.
Rodenticide sales increased 79% in the third quarter due to ongoing increase rodent pressure across the U S primarily in the Pacific Northwest.
<unk> sales increased 14% aided in part by sales from the stand Guard product line, we purchased in July of 2020, while cleaner and disinfectant sales decreased 9%.
<unk> from lower sales of water treatment products as Covid restrictions have limited our sales and services service teams' ability to complete new customer installations.
Revenues in our genomics business through the animal safety segment increased 9% from gains in beef on companion animal testing in Australia, and commercial beef and beef Association markets in the U S and Canada.
Worldwide genomics revenues increased 10% with strong growth in China, Australia, and North American beef markets offset by a small decline in Europe.
Gross margins were 46, 1% for the quarter compared to 45, 4% in last year's third quarter. The improvement in gross margin is primarily the result of the increased rodenticide sales within the animal safety segment as these products have higher gross margins within that segment.
Gross margins for the food safety segment were the same in both quarters.
For the year to date gross margins are 46, 1% versus 46, 8% last year.
Operating expenses overall increased 18% for the quarter and were up 7% per the year to date.
As I mentioned earlier. This increase includes $2 1 million of spending in the quarter on strategic consulting legal and other professional fees related to acquisition activity for businesses, which we were ultimately not successful in acquiring.
Excluding these charges operating expenses increased 11% for the quarter.
Sales and marketing expenses rose, 6% with increased compensation and shipping somewhat offset by continued lower spending on travel trade shows and other customer facing activities due to the pandemic.
For the year to date sales and marketing expenses flat compared to last year.
Research and development expenses increased 11% for the quarter and 8% for the year to date as we've continued to have higher development spending on products that were recently launched or are scheduled to be launched in the very near future.
General and administrative expenses were up significantly in the quarter and year to date periods due primarily to the previously mentioned debt deal expenses.
Non cash amortization expense, resulting from acquisitions in fiscal 'twenty, one and the second half of fiscal 'twenty also contributed to the increase over the prior year.
Operating income for the quarter was $15 8 million net compares to $13 million in last year's third quarter and expressed as a percentage of sales operating income was 13, 5%.
Compared to 13, 1% in the third quarter, a year ago, excluding the debt deal expenses operating income in the third quarter would have been 15, 3%.
Our other income for the third quarter declined by about $1 million as interest income at 294000 was down $1 3 million from last year due to the precipitous drop in yield on our marketable securities portfolio as I mentioned earlier as rates dropped last year in response to the pandemic.
For the year to date interest income was down $2 8 million.
The impact of the interest income decline on earnings per share was about <unk> <unk> in the third quarter and <unk> <unk> for the year to date.
Our effective tax rate for the third quarter was 16, 3% compared to 14, 4% in last years third quarter with the increase in rate driven primarily by lower estimated deductions for foreign derived income increased taxes at international locations and higher provisions.
As for state taxes.
On the balance sheet accounts receivable balances have increased only about 3% of share as our collection teams across the world have been very effective in their efforts.
Inventory balances have increased $4 2 million. However, excluding the magazine acquisition, our inventory is actually down slightly as we worked to lower inventory levels that were increased last year in anticipation of potential supply chain issues due to the pandemic and Brexit.
We generated $59 1 million in cash from operations during the first nine months of the year kind of invested.
$52 million on our two acquisitions and $19 $4 million in property plant and equipment and other assets.
I threw a lot of numbers out in the last few minutes and I'll stop now so that John can add further comments hopefully what you heard behind the numbers was that our business has continued to execute and post solid results.
Despite the incredibly challenging environment that we're operating in these results are due to the efforts of our more than 800 employees worldwide, who continued to deliver month after month.
We are grateful for their ongoing effort and are proud of them and the results that <unk> been able to achieve at.
At this point I will turn it back to John for further comments.
Thanks, Steve.
I want to expand a little bit on Steven mentioned that during the quarter, we incurred more than $2 million on expenses for acquisitions that we ultimately did not complete.
Similar to our second quarter, we were excited about those businesses and I thought we made very attractive offers to each of the sellers and while I was disappointed on the outcome I was pleased with our offers on our work done by our teams to try to contemplate those deals.
We believe the best use of our available cash as accelerating the agents grow through acquisitions of complementary businesses and technologies.
We're going to continue our aggressive corporate development process and we have targets on all stages of the acquisition pipeline.
Nothing that I can report on year to day, but I will say that we are currently working on multiple active targets.
On February one we reported the relaunch of collateral care.
And for those of you new to Neogen in 2015, we were the market leading provider of tablets to treat hyperthyroidism in dogs.
We exited the market in 2016 as a competitor in an exclusive license, but now we've received our own licensed for the product from the FDA and we're back to full production with the shipping of product for our customers beginning at the end of February.
We recently received other critical governmental approvals the full approval of our Neogen for oxide Super Super Disinfectant by the U S EPA and state are in Mexico.
The full approvals mean, we now have another industry, leading product on the more than $2 $9 billion global animal disinfect it market.
Also on February 15th we announced our early warning waste sludge solution to detect Sars COVID-19 two virus known to cause COVID-19.
This product was interesting because it provides a very cost effective solution to systematically test or monitor large groups of people.
We're ready to help municipalities colleges food processors, the transportation industry and any other industries, where a large number of people come together.
I'm also very excited about the new products that we'll be launching soon as well as our robust R&D pipeline again, while there is nothing I can report to you today I highly encourage you to follow neogen closely in the coming weeks and months.
Our December acquisition of magazine based on Dublin, Ireland has begun its initial integration phase and were encouraged and excited by the results so far.
<unk> is another big step on our expansion of diagnostic products in the adjacent markets of food quality and nutrition.
Magazines assay kits and reagents are used to measure dietary fiber polysaccharides on sugars into assets, such as lactose and commercial labs animal feed producers and food and beverage companies.
The next quarter or two won't be easy, but I'm optimistic about <unk> future as we move forward.
Neogen is stronger than ever our markets are growing our teams are invested in our mission our organization as a whole was able to span the entire globe, providing the highest quality food and animal safety solutions possible.
I'm going to stop at this point and answer any questions you may have.
Okay.
We will now begin the question and answer session.
To ask a question you May press Star then one on your telephone keypad. If you are using a speakerphone. Please pick up your handset before pressing the keys to withdraw your question. Please press Star then two.
At this time, we will pause momentarily to assemble our roster.
Yeah.
And the first question will be from David Westenburg with Guggenheim Securities. Please go ahead.
Hi, Thank you for taking my questions here and congrats it was a very great quarter here.
So first can you talk about the run rate and relative margin profile of <unk> and if you can't be specific can you at least maybe give us some some directional contribution as we put our models out for that for the coming year.
Yeah, Thanks, David Steven you're on a.
Yes, David I would say that when you talk about the gross and operating margin profiles of magazine on think of them as similar to other food safety.
Margin profile for our diagnostic tests are very similar in profile.
Okay.
Thats double double digit growth, 60% gross margin operating margin profile similar to like that 20%.
That's how I think food safety side.
And then on the ballpark Okay Yep.
Perfect.
Alright, and first of all I'd like this.
This is the best growth rate you've had since 2015, so I feel bad about asking this question because it says harping on you guys a little pitch.
Alright huge.
It was a huge beat on the topline.
But even when you consider the $2 million you had on.
On <unk>.
For our acquisition evaluation it looks like you didn't get the operating leverage I would've expected with that kind of huge beat and again I'm sorry for harping on you. After this.
Really impressive quarter, but can you talk about how we should think about the operating leverage.
The company was to have a beat like this in the next few quarters.
Yeah, I think David you know.
We don't like we would've been this except for that.
I'm going to do it a little bit for you right. So.
On Steve will give you the exact on per share, but when you add in the change in the deal with debt deal expense.
On the income.
Income tax change.
What was the other big one Steve we had.
While the interest income on the interest that on an income.
Income. So if you look at those I mean, we're talking four to five sons, and we think that would've been.
Right in line with how profitability you know normal it looks for a business to flow now as Steve did mention I am putting more money back in on R&D right. So R&D is up and we're saying we're going to we're reinvesting money and I think youll see some of the new products, we're going to have come on here shortly and we're pretty excited about Steve you on expand anymore on that.
<unk> debt on John and maybe just a couple more.
Some of the acquisition the non cash amortization expenses that.
We are recognizing now for businesses that we bought both this year with magazine and stand guard as well as the distributor purchases from last year.
Are flowing through that G&A line.
And we also cleaned up some some legal.
We had non deal legal expenses that are kind of debt were incremental too.
Our G&A expense in the quarter.
But otherwise I would tell you David that we were pretty happy with that.
On the numbers that we reported it was if you.
Again using John.
If we put those or take those expenses out.
It was a significant improvement over last year's third quarter.
At the operating income line.
Got it okay well. Thank you for the commentary there and then can we talk about.
Two of the things that were called out Regenesis side, the aflatoxin because of the dog food.
Situation can you talk about the timing in terms of durability.
The bulk of those.
Is this one quarter or two quarters is just a little bit more enduring just how should we think about the contribution over the next to you.
A few quarters and I'll jump back on line after that.
So that question David the other true.
Yes, I think the reason I called those out just because I wanted to show again, the strength of Neogen right when something.
When a crisis happens like the aflatoxin outbreak in pet food, we can move and ramp up really really quickly to fixed customer solutions right. So that one well that maybe a quarter or two opportunity. The rodenticide has been a year long because the road enter pressures just been so wide.
Spread in the Pacific Northwest now again, though.
Those things are seasonal right, but what you see with our business as if we see you know insecticide pressure down in Europe, and maybe offset by increased rodenticide pressure in North America on when you say rodenticide pressure on North America dropped you may see an increase in toxins in mycotoxin out.
Break in South America, So what I was trying to point out is whenever these things happen.
Well. We are we are designed to move very very rapidly to capture that opportunity for our customers.
Thank you guys I'm jumping back in cash alright.
Alright, Thanks, David David.
And our next question comes from John Kreger with William Blair. Please go ahead.
Hi, Thanks, very much John.
John can you just talk about how the supply chain is holding up. Please we've certainly seen more press about there being pressure all around the world both from the pandemic and some of the weather events.
Yeah, it's tough John.
No.
Long Beach is a mass.
L. A was a mess we ended.
So on and stuff rerouting stuff to Seattle to try to.
To avoid that and we were good we were early and we got some of our stuff suite through but now Seattle's a mass too so.
Global supply chain I think you know and you've seen it is very very challenging around the world.
What.
We talk about as a team is.
How can we look forward to try to predict a little bit better than our competitors. So that we can stay ahead of it on.
Knocking on my head on on the table right now we have been I mean, we haven't been out on anything because of supply issues. We've been we've been close.
<unk>.
But we've really done a nice job of staying ahead and that just comes with no on your business and planning I think the teams have done an outstanding job.
Forecasting they've done an outstanding job of working with our buyers and replenishment team. We've developed alternative suppliers very quickly where we didn't.
In the past.
We have we're really operating as a very strong global organization, where we've got our European buyers will find opportunities that we can use in the U S or U S buyers find opportunities where we can some.
Raw materials to Europe.
So it is a it is extremely challenging but im.
Didn't have pleased with the performance of the team.
Great. Thanks, and as you think about the next couple of quarters due to those pressures feel like theyre starting to normalize at all or are they are they getting worse I think they're getting worse John.
I think you've got.
Just shipping.
Very very nice coming out of Asia. The ports on the challenge you have on a lot of these places is labor I mean, we're not.
We're not through Covid I mean, I know everyone is excited about the vaccines and I'm excited.
But we're seeing.
Incidents rise, we're seeing employees out.
It all around the country I think youre going on at the same.
You've got the same issues, we still have to have people on logos shipping containers.
You know Brexit.
While we planned unplanned and planned.
Our logistics partners allowed us down in Europe.
Thank you.
Continuing on I don't want to say it but anyway.
They were on mass and they werent prepared and so we had to scramble to make sure that we routed rerouted shipments and we changed distribution centers to make sure our European customers are taken care of.
So even though I was yelling add on because it wasn't a surprise Brexit was going to.
They were grossly under prepared so I think that just shows that it's.
The worldwide market is very very challenging for transportation on when do you have other hiccups like this it just exacerbates it.
Great. Thanks, and then one last one.
So my question about the food safety side of of a.
Happy on demand environment, where year end of the crisis, how does it stand are you seeing recovery.
In any of these pockets and.
How do you think this will play out over the next few quarters.
Yes.
I'm optimistic about it I mean, if you if you think about the like I mentioned and you think about.
Year to service on the restaurant industry.
They are slowly opening back up.
Still here in Michigan, where 25% restriction for occupancy I know on other parts of the country they've opened it up more.
But we're still seeing.
We're seeing that kind of flow through the channel So we're pretty optimistic.
The flow.
Customers.
Moving forward so.
We think we've got opportunities there and I think that the team's.
Performance at a high level I was really pleased with their double digit organic growth for the quarter.
Great. Thank you.
The next question will be from.
Goodbye Connelly with Stephens. Please go ahead.
Thank you John.
You, obviously got a big boost.
In China, but I was wondering if you could talk about the rest of the portfolio not not sort of in the short term, but how are you thinking about the China opportunity.
When we think about the difficulties they are still having.
Margaret in animal safety more broadly.
Yes, Mark I think Theres, a big opportunity there I mean, we continue to grow and the nice thing is not only are we growing but we're getting new customer penetration and that's going to continue because.
You saw what happened with the African swine fever, there's a resurgence there and the issue is.
With.
China has to work to develop its biosafety protocols and that's only going to benefit us.
So the big boost in China was cleaners, and disinfectants and I think that's going to continue to go and then secondarily. It was on the genomics side, where they're trying to rebuild their herds.
That's a process.
You know is going on.
Continue to take a little bit of time and you saw I don't know if you saw recently, but you know the export beef exports to China were up.
I forget what it was almost like a $100 million big Big number for beef exports were up.
Where it hadn't been there before.
<unk>.
<unk>.
The corn stocks on all of you guys are watch on but you see what's going on with corn and soybean pricing you know soybeans at the lowest.
Supply in history.
On China is holding 60 some percent of that supply.
So there's a lot of different interest on things going on that I think are going to allow us to continue.
They're on it's a key market for us.
Super.
The jump at Soliris sales comes despite the challenges that you've been talking about in terms of getting face to face.
Getting customers with.
With new equipment and labs do you think you've sort of figured out how to get this sales process going.
To grow sort of Covid world or when we recover is there a lot more opportunity there.
I think theres more opportunity on what we've done.
What we've done Mark as we've kind of taken a blended approach right. So we have.
We have virtual lab training, where when we put the equipment we can make.
With them and we're showing them live.
Lansing, how to do setup on others right and while that's good.
Not as efficient, but some customers do really well with it on others don't so we think when we're able to get back face to face with customers.
Theyre going to were going.
Allow me to accelerate that I mean the.
The reason why it's done so while the technology is fantastic.
People really like it.
You know they love the new machine, we're really seeing growth like I've talked about.
We're entering other markets I mean, you wouldn't call dietary supplements technically food safety.
It's a great product for that marketplace and they are really embracing it.
I think theres opportunities there to continue to grow.
Okay and last question.
You talked about the ongoing challenges in the logistics and all of that was COVID-19, but in the last couple of quarters, you talked about your own <unk>.
Staffing issues are those still.
But worse or hopefully more or less plateaus.
We're doing a really good job regarding staffing.
Our.
Our churn rate is at the lowest it's been in a couple of years.
I think that's really just because we've beefed up the HR team they've done an outstanding job of getting us really good candidate.
Getting bang on.
Now our infection rates continue to go up.
That's it has not dropped off at all I mean, if anything we're seeing.
Raising reits raising rates among employees because schools are back.
More schools are going to full online people are bringing stuff home the weathers.
Just a little better some states have relaxed.
Masks and so.
This is what I was telling you I I'm not I'm not confident we're through the COVID-19 piece, because I see it within the group. So it actually it rates are going up not going down.
Great.
Very helpful. Thank you.
Yes.
There is going on again as a reminder, if you have a question. Please press Star then one.
The next question is a follow up from David Westenburg with Guggenheim Securities. Please go ahead.
Hi.
Thank you to taking the follow up I'm, just going to ask a couple on the companion animal space on the <unk>.
Looking back.
Hold on old transcripts from and you're calling out some of the year over year headwind.
In that product it looks like the product was in the neighborhood of <unk>.
$6 million to $10 million I wanted to confirm it if that's about right where we're at why is the run rate before it pulled off the market.
And then your expectation.
Expectations about how fast it can jump back to that run rate day, you had prior.
Prior to it being pulled from the market.
Yes. It was a it was a $6 million mark a $6 million product for us David.
<unk>.
We know that we need to go on and earn that business back from the customers we have.
We're out of the market for a while.
But they only had one choice, we think providing a choice to customers is always a good thing we've got great relationships with our veterinary distributors and we have great relationships with veterinarians. So I think.
We're excited about our prospects for that product line.
Great.
And actually that's a great follow up to the to the second question I mean, I believe on between that time that it got pulled and and today you also have a companion animal on safety.
Cleaning product called on companion in that entire line of products.
If you have multiple products.
Yes on that line or in that in that segment would you consider building up a companion animal sales force and maybe even consider that an adjacency for FERC potential future M&A. Thank you noted on last question.
Yes, David I do I like that space.
And in addition to what <unk> mentioned, we have.
<unk> and wellness program George another 10 on walnuts test for veterinarians.
So on the companion space. So we are viewing that as a very very nice market. The companion animal market is growing every year pet parents.
Are getting more intimately involved with the health and nutrition on.
On walnuts other pet children. So that's a market that we're very interested in and you're seeing that.
We're investing so with.
When he came on wellness tests on our thorough care. We are building up that portfolio on I think it's something that we're going to continue to do.
Great. Thank you.
Nice.
On a quarter.
Yeah. Thanks, Nick Thanks, Steven.
Okay.
Ladies and gentlemen, this concludes our question and answer session I would like to turn the conference back over to John <unk> for any closing remarks. Thank you Chad I just want to thank all of you from my Big supporters of near John I want to thank our employees for turned on in a tremendous quarter.
Rob on the call hope all of you stay safe and healthy in vitro Covid vaccination as soon as we can.
Thank you everyone.
And thank you Sir conference has now concluded. Thank you for attending today's presentation you may now disconnect.
Okay.
Yeah.
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