Q3 2021 AngioDynamics Inc Earnings Call
Good morning, and welcome to the Angi or dynamics fiscal year 2021 third quarter earnings call. At this time all participants are in a listen only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance. During the conference. Please press star zero on your telephone keypad.
A reminder, this conference call is being recorded.
The news release detailing the fiscal 2021 third quarter results crossed the wire earlier. This morning and is available on the Companys website.
This conference call is also being broadcast live over the Internet at the investors section of the company's website at Www Dot Angio dynamics Dot com.
And the webcast replay of the call will be available at the same site approximately one hour after the end of today's call.
Before we begin I would like to caution listeners that during the course of this conference call. The company will make projections or forward looking statements regarding future events, including statements about expected revenue adjusted earnings and gross margin for fiscal year 2021, as well as trends that May continue management encourages you drove.
The company's past and future filings with the SEC, including without limitation, the company's forms 10-Q, and 10-K, which identifies specific factors that may cause actual results.
Or events to differ materially from those described in the forward looking statements.
The company will also discuss certain non-GAAP financial measures. During this call management uses these measures and to establish operational goals and review operational performance and believes that these measures may assist investors in analyzing the underlying trends in the companys business overtime.
Investors should consider these non-GAAP measures in addition to not as a substitute for or as superior to financial reporting measures prepared in accordance with GAAP.
Package offering insight into the company's financial results is also available on the investors section of the company's website under events and presentations.
This presentation should be read in conjunction with the press release discussing the company's operational results and financial performance. During this morning's conference call I'd now like to turn the call over to Jim Clemmer, and your dynamics, President and Chief Executive Officer, Mr. Clemmer.
Thank you Melissa.
Good morning, everyone and thank you for joining us for Angela dynamics fiscal 2021 third quarter earnings call.
Joining me on today's call is Steve Trowbridge, Andrew dynamics, Executive Vice President and Chief Financial Officer.
Steve will provide a detailed analysis of our third quarter financial performance.
In line with commentary on our previous calls this fiscal year.
Stephen I will be providing slightly more intra quarter detail than we would during a normal operating environment.
I am very pleased with our performance during our third quarter, which continued to face challenges from the COVID-19 global pandemic.
Third quarter revenue was $71.2 million representing growth of 2% over our third quarter last year.
I am, particularly encouraged with our performance, especially in the face of the clear impacts of COVID-19 on procedure volumes across our entire business in January and in the first half of February.
In addition, our third quarter year over year revenue growth last year was 9%.
Which of course did not include any COVID-19 impact.
So our third quarter of 'twenty, one was already facing a challenging comp.
Our revenue growth was driven by strong performances from key technology platforms, particularly our young and angio back.
We also generated adjusted EPS of two cents during the quarter.
As we continue to balance near term cash and expense management with strategic investments in our key platforms.
Our adjusted EPS did see a four cent benefit during the quarter.
Related to certain expense reimbursement provided by the cares Act.
Steve will provide some additional detail on this later in the call.
Consistent with what many businesses have discussed.
January and the first part of February experienced more acute impact from Covid.
And what we experienced during the October through December.
That said, we began to see improving trends towards the end of the quarter and during the month of March.
In the face of these challenges I am, especially proud the way our team continues to navigate the ongoing global health crisis, while investing in and delivering on key growth initiatives and building upon the momentum we generated through the first half of our fiscal year.
We will continue to prioritize driving top line growth, while taking a disciplined financial approach to managing our business.
Diving deeper into our performance in the quarter.
The positive trend within our oriented business continued into the third quarter.
We reported already on revenue of $3.3 million in the quarter.
We're getting bringing our total FY 'twenty, one year to date revenue to $6 $5 million.
As we stand here today.
Given the continued sequential growth.
<unk> is trending towards the high end of our previously provided range of $7 million to $10 million.
Third quarter procedure volumes remained robust for our angio vac platform with revenue growing 27% year over year.
Additionally, as I mentioned during last quarters call. We are thrilled about the upcoming planned launch of our new multipurpose mechanical thrombectomy device later this calendar year.
This device will expand the breadth of our angio Vac platform.
Allowing us to serve a much larger segment of the venous thromboembolism market than we currently serve.
We also believe that our current on circuit Angio back system will continue to be a growth leader in the complex right atrium focused market.
And we expect the new multi purpose mechanical thrombectomy device will provide meaningful incremental growth.
As we have the opportunity to participate in more cases in this larger fast growing market.
Nana life probe sales were strong in the United States, particularly offsetting softness in international markets.
And a year over year decline in capital sales.
We did anticipate this decline in capital sales even prior to the added headwinds from COVID-19.
The continued positive momentum in the U S is a direct result of two main drivers first our increased capital base that we developed last year.
And second increased awareness fostered by the direct study.
We remain focused on investing in the NAV.
As we progress toward expanding indications and an improving U S environment in the future.
On the internal R&D investment front.
Our growth investments continued in the third quarter as we supported our key platforms already in the market.
As well as products in our development pipeline.
We will continue to invest in internal R&D and sales and marketing resources to further advance our current portfolio.
And expand into larger faster growing addressable markets.
M&A remains on the back burner during the third quarter.
As we continue to focus on balancing growth and profitability in the face of Covid related challenges.
However, strategic opportunistic M&A remains a key piece of our long term growth strategy and we continuously monitor the landscape for these opportunities.
In the near term, we anticipate maintaining our disciplined approach to capital allocation and expense management.
Turning to clinical and regulatory.
We are excited about our progress with the Pathfinder one study.
As we completed enrollment and surpassed 100 enrolled patients during the third quarter.
This milestone allows us to collect a valuable.
I mean typically back data via assessments at six.
<unk> and 24 month intervals following the patient procedure.
And when which we believe will further drive argon and Andrea dynamics in the large and fast growing atherectomy market.
Turning to our direct study as of today, we have 22 sites that have secured IRB approval, which you'll note is down from the 26 that we reported on our second quarter earnings call.
We remain pleased with a number of leading hospitals that we have operating today.
We had several lower volume sites that we elected to decommission.
But we don't expect this to have a direct impact on our execution.
Moving forward, we continue to anticipate shifting efforts from clinic from additional site initiation to patient screening and enrollment.
As can be expected screening activity has remained challenged in the current environment due to COVID-19 related protocols at many hospitals.
He took before I turn the call over to Steve.
I would like to thank our team for their continued hard work and dedication to the Angela dynamics mission.
These last 12 months have been difficult for everyone.
But throughout this unexpected journey. Our team has remained diligently focused on driving success for our customers our patients and our shareholders.
With that I'd like to turn the call over to Steve Trowbridge, Our executive Vice President and Chief Financial Officer to review the quarter in more detail.
Thanks, Jim and good morning, everyone.
Before we begin I'd like to point you to the presentation on our Investor Relations website summarizing the key items associated with our quarterly results.
Our net sales for the third quarter of fiscal 2021 increased 2% year over year to $71 2 million.
As Jim mentioned earlier, we're very pleased with this performance given the continued COVID-19 headwinds and the strong performance during last year's third quarter prior to any COVID-19 impacts.
During our last earnings call, we indicated that we might see a more pronounced impact from COVID-19 during our third quarter than we had seen during the second quarter and that's exactly what happened.
While December trends remained largely positive January and the first part of February exhibited clear slowdowns.
We are pleased to see reversal of this negative trend during the back half of February and this positive trend has continued through March.
While we are not back to pre COVID-19 levels. Yet we are encouraged by the current trends coupled with accelerating vaccine administration as we drive toward our fiscal year end.
Turning to our results for the quarter.
Our total Vit business increased eight 8% year over year and the continued strength highlights. The success, we are having with two important growth products.
<unk>, which grew 27% year over year and ARIA.
<unk> contributed $3 3 million in revenue during the third quarter building upon the momentum we saw following the product's official commercial launch in the second quarter.
We continue to see our Jan as an important growth driver in our VIP business as we invest in further building out our commercial presence and supporting the Pathfinder study.
This growth in angio back in Oregon was partially offset by a decline of 16% from the prior year in our venous portfolio.
This week is continues to be driven by lower procedure volumes largely tied to COVID-19 impacts we have seen this softness in our venous portfolio throughout the course of this fiscal year and we expect that to continue through the fourth quarter. Although we note that comparisons during our fourth quarter for most of our products across all of our businesses will be muddied by the <unk>.
Impacts from Covid that we experienced during that quarter of last year.
Vascular access revenue increased <unk>, 7% during the quarter driven by growth in midline for the third straight quarter as well as growth in dialysis.
While revenue from our oncology business declined 10, 1% during the quarter the inner life disposable sales in the U S grew 12% year over year.
This growth was offset by a decline in net a knife probe sales and the rest of the world, resulting in an overall decline in probe sales of 7%.
International net of like probe sales in the broader oncology business were impacted by market pressures in EMEA and APAC lower capital sales and a nine 8% decline in sales of our microwave and RF ablation products.
Our oncology business was clearly impacted by the increased pressure on procedure volumes experienced during January and the first half of February.
Spite of this we have continued to benefit from the larger installed base of nano knife units and we anticipate that we will continue to see positive probe sales growth in the U S and ultimately in international geographies as market pressures abate and procedure volumes rebound.
Moving down the income statement, our gross margin for the third quarter of fiscal 2021 was $54 one per cent a decrease of 370 basis points compared to a year ago and a decrease of 110 basis points sequentially from our second fiscal quarter.
The decline was largely tied to continued staffing pressures sales mix. Thanks.
Covid related costs.
We are seeing impacts from customer mix in our RF business versus our prior expectations.
To provide a bit more detail on this during this fiscal year, we have experienced a much more robust sales cadence for ARIA in office based labs and hospitals. This is not at all surprising given the ongoing COVID-19 pandemic.
However, as we have discussed in the past pricing in the hospital environment is more favorable than it is in obl's due to the differing sales and used models.
This shift from hospital based payments placements Obl's has impacted our gross margin and we anticipate that this customer mix trend will continue and have an increasing impact on margins into FY 'twenty two.
Additionally, and as anticipated we incurred a number of startup costs related to the ongoing launch of our Orion platform during the quarter.
As we've discussed in the past the majority of the year over year gross margin decline was anticipated given the ongoing focus unemployed safety and manufacturing predictability.
We also continue to reduce inventory during the third quarter ending at $49 million.
During our first quarter call. We stated that we expected to see a step function up from Q1 to Q2 Q3 to be in line with Q2, and then another step function up to Q4 exiting this fiscal year closer to pre Covid gross margin levels.
We do expect to return to pre Covid gross margin levels, but it is likely to take a bit more time before this occurs.
Our research and development expenses during the third quarter of fiscal 2021 were $8 6 million or 12 per cent of sales compared to $8 4 million or 12 per cent of sales a year ago.
We continue our strategy of disciplined investment in R&D to drive our key technology platforms, particularly in a COVID-19 environment and we do expect investment during our fourth quarter to increase sequentially from the third quarter due to the timing of certain investments in our growth platforms.
We are investing in anticipation of the launch of our new multipurpose mechanical aspiration thrombectomy device in calendar 2021. This elevated investment during the fiscal fourth quarter is reflected in our R&D guidance, which we still anticipate will come in within our previously provided range of between 35 and $40 million.
SG&A expense for the third quarter of fiscal 2021 decreased from the previous year to $28 6 million, representing 42 per cent of sales compared to $31 1 million, representing 44 six per cent of sales a year ago.
We are pleased with our ability to control SG&A spending in the Covid environment and remain committed to disciplined expense management and managing our cash while investing in our key technology platforms.
Accordingly, we now anticipate that our full year SG&A spending will come in below our previously provided range of between 123 and $127 million.
There's no doubt that SG&A spend has been positively impacted by reduced travel associated with the ongoing COVID-19 pandemic.
We expect travel costs, along with our ongoing investments in the sales organization.
Increase into FY 'twenty, two as a global environment improves which will drive incremental expenses in 'twenty two.
Our adjusted net income for the third quarter of fiscal 2021 was <unk> 7 million or earnings of <unk> <unk> per share compared to adjusted net income of <unk> 4 million or one cents per share in the third quarter of last year.
It's worth noting that we had a $1 $9 million benefit to net income or roughly a four cent tailwind to EPS related to the cares Act this quarter.
This reflects reimbursement of expenses, we actually incurred related to sales employees manufacturing and R&D, providing a $700000 benefit to gross margin and a $1 $2 million benefit to operating expense.
Since the beginning of the COVID-19 disruption, we have not reduced head count or cut back on R&D investments and this cares act benefit reflects reimbursements of these types of expenses for companies that did not lay off employees or take P. P. P loans.
Adjusted EBITDA in the third quarter of fiscal 2021 was $5 4 million compared to $3 8 million in the third quarter of fiscal 2020.
Turning to our balance sheet, we began the quarter with roughly $58 million in cash and cash equivalents and we generated $5 9 million of cash from operating activities.
During the third quarter, we had capital expenditures of $1 4 million.
At February 28, 2021, we had $54 5 million in cash and cash equivalents and $30 million of debt outstanding having repaid $10 million of our outstanding debt during the fiscal third quarter.
In March we also paid down an additional $10 million on our revolver, leaving us with $20 million in debt outstanding and a net cash position.
Turning now to guidance.
Based upon our strong third quarter results and our observations in the marketplace. We now anticipate our fiscal year 2021, net sales to be in the range of $285 million to $288 million compared to our previous range of $278 million to $284 million.
We now expect full year adjusted earnings per share to be in the range of four to six.
Compared to our previous range of zero to five.
We're proud of our ability to drive year over year revenue growth this quarter, despite COVID-19 headwinds and our strong performance in the period, one year ago, which occurred prior to the onset of COVID-19.
We continue to build on this positive momentum of our key technology platforms coming out of the third quarter and we will continue to drive targeted meaningful investments into these platforms to drive future topline growth.
With that I'll turn it back to Jim.
Thank you Steve.
I'd like to say, thank you again.
All of the members of the inkjet dynamics team for their hard work and particularly for the strong finish while facing the resurgence in COVID-19 headwinds during the quarter.
Our team has successfully maintained our balanced approach to managing expenses and cash while continuing to invest strategically in our three key technology platforms Angio back, Oregon, and then a knife.
I continue to have the utmost confidence that this strategy is the right one to drive long term profitable growth in our business and create value for our shareholders.
With regard to one key product in development.
We remain on track to deliver on.
Our off circuit mechanical thrombectomy device later in calendar year, 2021, which we anticipate will accelerate further growth in our V. I T business.
As a reminder, this.
This is the first step in our market expansion strategy as we continue to make focused investments in the thrombectomy space.
The goal of delivering additional product line extensions over the next three years.
This first step is instrumental to the success of the ongoing transformation of banjo dynamics.
We are not the same company that we were five years ago.
We won't be the same company two years from now that we are today.
We've exited businesses, where we were not the best owners and we are looking to invest in and acquire technologies that position us to take share in larger and faster growing segments of the market with innovative and differentiated technology drives measurable outcomes.
And those outcomes can change physician behavior.
As we look ahead.
We are encouraged by the recently improved market trends.
As the threat posed by the pandemic recedes and broader vaccine distribution takes place.
Our team remains laser focused our long term growth through our investments in internal R&D.
Targeted M&A.
And the expansion of clinical and regulatory pathways for our key technology platforms.
With that.
I turn the call back to the operator to open up for questions.
Melissa.
Thank you at this time well be conducting a question and answer session. If you'd like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question Kim.
You May press star two if you'd like to remove your question from the Kim for participants using speaker equipment. It may be necessary to pick up your handset before pressing the star keys.
Our first question comes from the line of Jayson Bedford with Raymond James. Please proceed with your question.
Thanks, and good morning, just a few questions on the intra quarter trends.
Did the harsh weather in Texas, and the southeast have want to have an impact in the quarter.
Hi, Jason This is Jim thanks for joining today.
You know Jim said it did have a temporary effect and we definitely saw that I guess I didn't want to comment on it.
Because we expected that hopefully those patients will get treatment that they they deserve at some point, but we did see a temporary effect to be fully transparent.
Okay, but it's tough to quantify I assume.
It is it's really hard so I didn't want to kind of out there Jason but.
There was an effect of our salespeople.
Okay. Okay, you alluded to better conditions in the second half of February.
And into March.
But it looks like the lower end of the implied fourth quarter guide it was kind of flat to down slightly I'm, just wondering why why would that be the case.
Yeah, It's a fair point, Jason wished we still have increased.
Increased uncertainty and limited visibility with Covid as we mentioned we did see the increased COVID-19 impact in Q3 that we were expecting coming off of Q2, we.
We do see improving trends, we are hoping that those trends will continue and we've got reason to be optimistic that those trends will continue.
Excuse me with the increased vaccine availability in <unk> and the increased opening that being said, there's still limited visibility in this COVID-19 environment and you know I think our guidance is looking to be cognizant of that fact.
Okay. Okay, an angio back you mentioned the 27 per cent AR.
Growth can we assume that volume growth roughly matched dollar growth. Thanks.
You can we are seeing that the revenue growth. The dollar growth that were seeing go coincide with increasing.
Procedure volume, we are tracking that and so you know it was a very good quarter for us in terms of procedure volumes on the NGL back and those two things are are moving relatively in lockstep.
And just on the new Thrombectomy device have you filed the five 10-K.
So Jason we haven't filed yet we're in final validation of the work that you do prior to filing we'll probably let let folks know when we file our as I said earlier, we anticipate filing in the first half of the calendar year.
And they are expected five 10-K approval second half, but we've not yet filed.
Okay, and just a couple quick ones on nano knife, and then then I'll jump back in queue, you mentioned that youre looking to expand indications I'm just wondering.
Was that more of a near term comment longer term comment and just a little bit more on kind of where you are with cross state and then I'll ask the second one upfront here.
When do you lap or anniversary the tough man, a nice capital comps.
Mhm, So a couple of quick points, Jason. So your question about the expanded indications is that these short term and long term hate to give you that but the truth is this is a platform technology and our company now has a really good grasp of what to do with for years I don't know if the company did the right things, but the direct study was important.
To us getting the pancreatic AE started because the pancreas is so difficult to treat as we know now that we've gotten the study going and momentum we've highlighted that prostate is our net interest and for different reasons of pancreatic due to the acute nature of the disease is different but also the FDA has new guidance.
Documents about how to treat the focal therapy.
Regulatory process. We're following that carefully we also think improved guidance and improved visibility that physicians have with the property will help treatments like <unk>. So we're excited we'll give you more details soon on our prostate indication aspirations and then beyond that Jason again, we think this is a foundational technology that the science works the mechanism of <unk>.
Actually works well to treat other organs. So it should be a long term opportunity to grow this and Steve would you like to comment sure Jason on the question around the comps you know really it is at the end of our FY 'twenty. One we'll anniversary the comps are we headed into our fourth quarter last year and as we mentioned on the call. We did see the largest impact of Covid.
US in our fourth quarter that being said there was still some capital sales that occurred in the fourth quarter, a little bit less of a little slower pace than what we saw it earlier in our FY 'twenty, but for the most part we're going to anniversary that big capital year once we get through 'twenty one.
Okay.
Okay. Thank you.
Thank you, ladies and gentlemen, as a reminder, if you'd like to join the question queue. Please press star one on your telephone keypad. Our next question comes from the line of Matt Machine with Keybanc capital markets. Please proceed with your question.
Hey, good morning, guys and of course question on oriented you a good sense of where the procedures are are are coming from and what's being used for.
Hi, Matt Good morning, we do.
As you know we have a dedicated team that we hired.
To just working to Oregon, we now have over 40 people dedicated to this business unit and Matthew track almost every case, so what's encouraging we've seen an increase in ratio of the cases that we're treating are have been below the knee. You know early on I think physicians treat as above the knee is a brand new technology that people are getting used to it but as you know we're.
We're encouraged and how it works because of how's he believed to treat above and below treat hard and soft calcification, we're watching it and watching the ratios Chengdu, we will look forward to communicating that with you as we grow that business.
Okay excellent and and you mentioned the recent improvements in your end markets can you go into a little more detail into what you've seen in March so far.
Yeah, We mentioned Inc.
March Stephen I can both comment, but we're seeing a little bit more just slow steady growth.
Case procedures.
Or is it being books again I spoke to a physician last week not he was a he was a kind of a good and bad analogy for all of us to watch what's happening in our industry.
When I spoke to last week told me he did a surgery on a patient and he had to remove a tumor you said normally it was a complex procedure may have taken two hours in a normal environment well. It took nearly six because the patients have progressed in the tumor had gotten worse. So I think we're going to see situations like that all of us in the healthcare space, where now we're getting back.
And treating people that need to be treated but the acuity, maybe a little higher than before so.
We're being cautious map, we're letting our customers guide us and they're telling us that theyre trying to rebook, our suites get people treated out a little faster pace.
Okay.
That's kind of unfortunate.
And then just on the expense reimbursement from the cares Act is that there's other onetime reimbursement or is that something you expect to over over the course of the.
Next 12 months.
It's a it's a one time hit so this was.
Based upon the law that was passed pre.
Previously that we were able to take you know we were able to fit into and make our application as it sits today. Its a one time, we're keeping our eye on the current law that was passed to see if there's any other benefits as of right. Now. We don't think there are we'll continue to monitor that and we'll continue to assess the situation, but you should think of it right now is a one time.
Okay.
They actually helped the gross margin the underlying gross margin was it was a little bit worse. Just can you go back to the dynamics that you were talking about with <unk>.
Office based labs, and <unk> versus hospitals in that mix and the impact to gross margin.
Sure So I think to.
To tell the gross margin story, what we're focusing on to drive topline growth.
In the immediate timeframe as well as in the long term is going to be those three growth platforms that Jim has talked about <unk> and you back and analyze all three of those will be accretive to corporate margins and that will drive our margin profile over time, certainly angio back in nano nice today, we've talked about some already on startup costs, but that we expect that to as we get through.
The initial phase is going to be accretive to corporate margins.
One of the things that we've talked about in looking forward is already on and in that mix between hospital sales and Obl's as we've said in the past pricing in the hospital environment is usually higher than its noticeably higher than what you see in any obl's based upon their sales and use model.
In a COVID-19 environment, what we've seen is a little bit of a shift in the mix from where we initially expected when we when we bought the product from the hospital based placements Judy Obl's, it's not surprising or the Obl's had been opened they've had less restrictions. They don't have to follow some of the same protocols that are general hospital does and so you've seen a lot of those procedures continue to be done in the.
<unk>, where maybe hospitals have been cutting back as they've been getting preparing for COVID-19.
Opportunities.
Honestly, we expect that that mix shift to probably be sticky and continue as you move forward. So what you'll see is our expectations are you're going to have a shift to more obl's doing procedures. So when we thought it was maybe 50 50 or 60 40. It may end up being 70, 30 or higher in terms of 70% of atherectomy.
It is being done in the OBL as opposed to the hospitals. So as you look out into 'twenty you know the end of our FY 'twenty one into 'twenty, two and beyond that mix shift is going to have an impact because of that pricing differential that we talked about not necessarily pricing pressures. It's just more of a customer mix shift and so we think that that will.
Packed the.
That accretive margin benefit that youre going to see from the increasing Ari on price.
Jim overtime.
Okay. That's all I have.
I get that and last question I'm, assuming that as we get out to the next quarter you guys are thinking about.
'twenty two guidance just what are some other moving pieces you'd like us to consider at this point.
So we will come out with guidance when appropriate we're hopefully that'll be at the time that you normally see it we're going to keep our eye on on Covid and the continuing impact that we see there I think a lot of other things that we've been talking to you throughout FY 'twenty, one are going to be the moving pieces I think first and foremost we got a line of sight to topline growth through our growth platforms.
Oregon, Angio back and what Youre seeing clearly in the U S. In terms of nano growth that focus of course will continue as we head into FY 'twenty two we've talked about our plans on continuing to invest in R&D as well as continuing to invest in our sales force to drive that topline growth and we're going to look to be as transparent as we can about those investments, but I think the expectation is.
We will be investing to support that top line growth that we think is going to be important to our long term strategy and then beyond that is the gross margin, which is what we've talked a little bit about this quarter in terms of our expectations again, the big point being we expect our margin profile to be positively impacted by our growth platforms over time as we sit here today, a large part of our revenue base.
This is coming from those more mature businesses. We've got one plant in upstate New York, It's in an area, where there is a tough job market in a sense that there aren't too many.
Openings in a lot of people are hiring and so some other things some of the headwinds that we're facing currently.
Those are the major drivers that you should expect very similar to what we saw in 'twenty, one as you head into 'twenty two.
Excellent and really nice quarter, thanks, guys. Thanks.
Scott.
Thanks.
Thank you, ladies and gentlemen that concludes our question and answer session I'll turn the floor back to Mr. Clemmer for any final comments.
Thank you Melissa and again I'd like to thank you Jim <unk> team for working through this COVID-19 environment to period of uncertainty, we focus on the health and safety of our employees first and continuing to ensure a robust supply chain for our customers who need our products. Our team has done a really great job. Thank you for paying attention to our results today and we look forward to grow in their strategic.
Michigan's investing harkey platforms and investing in our people. Thank you again have a great day.
Thank you. This concludes today's conference you may disconnect. Your lines at this time. Thank you for your participation.