Q1 2021 U.S. Physical Therapy Inc Earnings Call
Ladies and gentlemen, thank you for standing by today's conference is scheduled to begin momentarily until that time of your line is again will be placed on music hold thank you for your patience.
[music].
Okay.
Hum.
Good day, and thank you for standing by and welcome to the U S. Physical therapy Q1, 2021 earnings conference call. At this time, all participants are in a listen only mode.
After the Speakers' presentation, there will be a question and answer session to ask the question. During the session you will need to press star one on your telephone. Please be advised that today's conference is being recorded if you require any further assistance. Please press star zero.
I would now like to hand, the conference over to your Speaker today, Chris Reading Chief Financial Officer. Please go ahead.
Thanks for long.
And welcome everyone for first quarter 2021 earnings call for me in the office of on the call. Today include Gary Hendrickson, our CFO Graham Reeve and Glenn Mcdowell.
<unk>, our general Counsel, Jon Bates, our vice President and controller.
As we typically do carry now of some prepared remarks ahead of taking your questions. John we start by covering a brief disclosure thanks, Chris.
This presentation contains forward looking statements, which involve certain risks and uncertainties and these forward looking statements are based on the company's current views and assumptions and the Companys actual results may vary materially from those anticipated. Please see the company's filings with the Securities and Exchange Commission for more information. Thanks.
Thanks, John Okay. This morning, I'm Gonna have carry cover the meat of the release, but I do want to start out with some overall color on the quarter along with some important aspects of how we are doing and how we look at the year ahead at this point.
First of all I can't say enough about the fight in our team. The fact through last year with the unknowns of COVID-19, keeping patients and each other safe as we work their way through a difficult time driving volume back to the great care of great work, while creating a safe clean and upbeat environment for care of of patients.
Those efforts resulted in a meaningful recovery by year's end not quite the pre COVID-19 levels, but within spitting distance certainly.
As we entered the new year in January volume as it often does in January was slower although throughout the month. We continue the game theme for the end of January we finished the month.
$26, one visits per clinic per day.
Curious started strong and was progressing nicely when we got hit with that.
Southern storm that had us idle in Texas and most of the Tennessee for a full week and that was a very big impact for US 13 bounce back strong. We finished the month with the nice volume pick up in spite of the setback.
Which had a major impact on visits we finished February of $25 six visits per clinic.
March and since it's been on a per really strong volume from new patients from visits producing a record month for us March for operating earnings revenue visits per clinic per day, where we finished at $29 three.
Which is an all time high for us, but I'm betting that record doesn't last long team continues to do a great job in our facilities and of patient volumes remained strong in spite of the world not being fully upside right yeah.
Very solid volume for the quarter, coupled with continued excellent expense control produced some really nice results as well total combined salaries from both parts of our business.
Im sorry, yes, 56, 8%.
Net revenues in this first quarter.
<unk> been a pretty long time under normal circumstances, when we had been that low that combined with the volume drove our gross profit for the quarter 33, 4%.
Our overall gross margin was 23, 1% for the quarter of.
590 basis points compared to Q1 2020.
Gross margin for PT clinics, excluding closure cost.
22, 9% of 560 basis point improvement the gross margin for injury prevention business, which has performed very well throughout the entirety of this time came in at 27, 2% of.
With over 1000 basis points as compared to 16, 8% in Q1 a year ago.
A few other highlights for the quarter before I review updated guidance for <unk>.
Team has been successful renegotiating of good number of our lease contracts.
They have been they've been working on that for some time with good fruit.
Coming to bear. Additionally, our payer contracting team has secured a number of positive pricing adjustments with we believe more good things to come in this area.
Nation of those efforts will certainly help us for the remainder of this year and for years to come.
As a result of a number of positive factors management is raising guidance for the year as follows.
The guidance is increasing from our previously stated range of $2 40 to $2 52 to a range of $2 68 to 78 for operating results per share for 2021.
The increase toward guidance is primarily attributable to three items for.
First our performance in the first quarter was better than expected when we initially provided for guidance.
The patient volumes and revenues increased significantly as the quarter progressed with March finishing as the strongest month in the company's history from a volume revenue and operating income standpoint, and volume continues to be very strong along with terrific cost control.
Second we added of five clinic physical therapy practice at the end of the first quarter that we expect to add three to four cents to our operating results for sure.
Final three quarters of the year.
Finally, the 2% sequestration relief on Medicare payments that was scheduled to end.
At the end of March 2021.
It has been extended through December 31st.
Which we expect to add $2 million to revenue from which equates to approximately <unk> 10 per share of net basis.
As per our usual practice. This updated guidance range does not include any additional acquisitions that we expect to make in 2021.
On that topic speaking of acquisitions the partnerships that we've acquired recently as well as previously have done incredibly well through this difficult period, we've been Supreme really blessed with the incredibly bright talented hard working dedicated individuals.
Of extremely high character, we continue to attract similarly committed individuals, whom we expect will join our company as the current deal flow.
<unk>, we have a clean balance sheet and in spite of some materially large outlays in this quarter carry will cover the cash flow. This quarter was excellent and our borrowings under our credit facility unchanged we've of.
A lot of dry powder at the moment, but with our activity. Thus far we expect to get a lot of good things done as we move through the year.
In closing I, just want to thank our team again for the Yeoman's work they've done this past year since COVID-19 came to our front door.
Been exemplary in all respects.
The hearts and resolve that we have within our group we will continue to fight forward through the remainder of the year.
Thank you for your time and attention this morning, as well as your support and belief in our team throughout this past year means a lot to all of us with that I will turn things over to Carrie cover our results from a little bit more granular detail great. Thank you, Chris and good morning, everyone.
Today, we reported first quarter 2021 operating results per share of <unk>, 64, which was 34 cents higher than the <unk> 30 per share that we reported in the first quarter of 2020.
As Chris noted our February volume is bounce back quickly after the significant weather related event. We had in February primarily in our two largest states of Texas, and Tennessee, and our operations team finished the first quarter very strong.
Producing record high results in the month of March and our important key metrics of average visits per clinic per day.
Which were at $29 three physical therapy revenue, which is at $40 $3 million total.
<unk>, which was $43 9 million and operating income at $8 6 million.
Our adjusted EBITDA was $15 6 million for the first quarter of 2021, which was at $7 $6 million from our adjusted EBITDA of $8 million in the first quarter of 2020.
Revenues in the first quarter of 2020 were $112 4 million, which was down only slightly from the first quarter of 2020, even though we had one less business day in the first quarter of 2021, and we had in the first quarter of 2020, and we also had 24 fewer clinics open on average in the first quarter of 2021 due to the sales and closures of clinics that.
We completed at the onset of the pandemic in early 2020.
Our physical therapy patient volumes per day per clinic for $27. One of the first quarter of 2021, which was higher than both the first quarter of 2020, which was $26 two and the first quarter of 2019, which was $26 nine thats, particularly remarkable given the weather event in February where we basically lost of full week of visits and our.
<unk> two largest states.
In the first quarter of 2021 visits per clinic per day was $26. One in January 25, 6% in February which was impacted by the weather related event and then it increased to $29 three in March of 2021.
Our net rate for our physical therapy operations was $104 72.
In the first quarter of 2021, which was up one 6% from $103 11 in the first quarter of 2020 the.
The first quarter 2021 rate was 0.9% less than the full year 2020 rate of $105 66, reflecting the Medicare rate reduction of approximately three 5% that went into effect in January of 2021.
Our physical therapy revenues were $102 4 million in the first quarter of 2021, which is the decline of only 0.5% as compared to the first quarter of 2020.
The slight decline again was the result of having one less business day in the first quarter of 2021 than in the first quarter of 2020 and also having 2000 for fewer clinics open on average in the first quarter of 2021 as I noted earlier.
On a same day basis, our physical therapy revenue was up approximately 1%.
Revenues for the industrial injury prevention business for $10 million in the first quarter of 2021 of one 3% increase over the first quarter of 2020 revenues of $9 $9 million.
As Chris noted our team continues to do a great job managing our costs, our operating costs, excluding closure cost declined to $86 $4 million in the first quarter of 2020 from $93 $3 million in the first quarter of 2020.
Which was a decrease of seven 3%.
Our costs were 76, 9% of net revenues in the first quarter of 2021 compared to 82, 8% in the first quarter of 'twenty.
Our gross profit increased $6 $5 million in the first quarter of 2021, when compared to the first quarter of 2020 of.
Our gross profit margin was 23, 1% in the first quarter, which was up 590 basis points from the gross profit margin of 17, 2% in the first quarter of 2020.
In the first quarter of this year, our corporate costs were also lower they were $800000 lower than the first quarter of 2020, which was the decrease of six 9% and as a percent of revenues our corporate costs were nine 7% in the first quarter of 2021, which is down from 10, 4% as a percent of revenues in the first quarter of 2020.
Interest expense on our debt was $246000 in the first quarter of 'twenty, one which is down from $427000 in the first quarter of 'twenty due to reduce borrowings under our credit line.
Our weighted average interest rate in the first quarter of 2021 was $2, 95% with all in.
The portion of our gross profit attributable to Noncontrolling interest was $3 $7 million of 14, 3% in the first quarter of 2021.
Our balance sheet remains in an excellent position and our cash generation remained strong we began and ended the first quarter was $16 million drawn on our $125 million revolving credit facility and we had cash of approximately $18 million at March 31, 21, giving us a net cash position of about $2 million at quarter end.
During the first quarter, we paid back $14 $1 million in Medicare advance payments. We received last year. We had previously noted our intent to pay that back and we did so in the first quarter.
We also funded our first quarter of 2021 acquisition of $11 $7 million.
As a reminder, we deferred $8 $3 million in payroll taxes in 2020 under the cares Act and will repay half of that balance by the end of 2021 and the other half is due by the end of 2022.
Okay.
In closing our people and operations of proven to be resilient over the last year, plus and Theyre clearly focused on the continued growth and success of our business as evidenced in our first quarter results, which we know will result in increased shareholder value going forward.
We're pleased with the positive momentum in our business and we look forward to continued strong performance in 2021 now Chris I'll turn the call back to you.
For a few would go ahead and open up the lines for questions.
Thank you as a reminder, we have a question. Please press star one on your telephone keypad once again that is star one.
Question comes from the line of Larry Solow from CJS Securities.
Good morning, Larry Good morning, gross good morning, Cary Good morning, guys. Thanks for taking the questions.
The first question is just from a high level.
We just look at the visits per day.
It almost looks like your you are back to pre COVID-19 levels of at least on an absolute basis, but I suppose there are still some pockets of the.
Population and that you say youre not fully back and perhaps there is no. This is just a little bit of actually growth on top of.
Some good numbers there. So maybe you can just give.
Give us your thoughts on that where we stand in terms of COVID-19 impacting volumes in or maybe not so much.
Yes, no I think COVID-19 is still I mean, so first on the just if we look at the numbers. We're back ahead of where we werent of pre COVID-19 basis, right now that said.
Its still impacting our volumes, we still have people.
Less people, but still some people in quarantine.
Every week basis.
And we still.
We still have you know activities gyms.
Some sports and certainly recreational sports book.
Just for the time of year, and where we are in the net.
The COVID-19 process haven't come back yet, we expect there'll be back fully by fall we.
We hope.
But where we're driving really good volume right now the team has done a great job.
We think those the restoration of some of those normal activities. We will continue to be a little bit of a tailwind for us given where we are currently.
And just sticking sort of what would the COVID-19 theme and.
It's certainly true your ability to hunker down and roll back wearable and maybe even you know.
From cost that we at one time thought were fixed costs. So you took us took a lot of cost of your business, but you've come back obviously, a lot of all of them all.
On the volume side, and yet and so I'm just trying to figure out what do you learn your ability to maybe the more effective do.
And do more with less and it seems to be proving itself out of at least if we look at you know of.
Small small microcosm of Odyssey of the overall performance, but just in Q1 alone your gross margins of close.
Close to 600 basis points so.
Just talk to perhaps since sustainability of some of the.
Efficiency improvements.
Alright.
We don't want to waste the good crisis and so we.
Everybody when I say, we I mean, our.
Partners are staff, everybody dug deep last year, and we've tried to get out any cost.
To your point, we thought was necessary, but we've learned to live without it and so.
There will be Larry some things do come back I mean.
Graham.
Road trip this week out to see some of our largest partners and we haven't done that and better part of a year and so that's travel cut out last year on some of that will come back maybe not to the full extent, we had before because we can use technology and we've all gotten comfortable with that but there was certainly.
Be some some of the variable costs things on the.
The on the people side.
We are pretty lean still.
You know as we drive volume and volumes of really good right now where we need to we will.
The incrementally add people.
Just just as we normally would.
And so the only thing I would tell you for the.
Quarter basis, Youre going to have the remember last year, we took a lot of.
Not only did we have people reductions, but we had a lot of salary reductions so second quarter third quarter.
Pretty good margin last year in spite of all of this particularly in the third quarter I think that was still when we had the board in the exec team and all of our staff here and a lot of folks around the country.
Who were still working.
<unk>.
Pretty meaningful salary reductions and so on a quarter to quarter comparative basis, you won't see the basis point differential for the rest of the year I think that you saw this first quarter.
But we still show the whole Ron two good bit of the.
Cost savings overall, if that makes sense.
Yes, no absolutely absolutely and then just last question if I may just on the the injury prevention business.
Just kind of held.
That's all of them during the pandemic.
How does that how you position the how you feel that thats. The reason today and in this macro environment you feel like you lost some time you know you couldnt, you'll you'll just sort of sideways last year in terms of gaining new clients and there is some pent up demand that was there any sort of change in the outlook.
Part of the business.
No I would say if we.
Now back to where we were in 2019, we still think that business has a ton of room to grow organically and through acquisition.
It's a great business. It does what it's supposed to do in terms of keeping people healthy and safe.
We did kind of move sideways last year. The sideways was a pretty good position began and we actually finished the year up for that business.
We the press pause a little bit in 'twenty, just in terms of and it wasn't we pressed pause, but people were kind of on pause with respect to trying to make decisions about whether to implement these programs depending upon how they viewed COVID-19 and what the impact was in <unk>.
You know in these various industries, we're seeing development activity pick up our development team's done a wonderful job.
We had some contracts that were set to go in 'twenty.
The pause button pressed and we think we will get some of those back.
And we're still working through it I mean.
Various industries, there is more impacted than others and so we still feel some COVID-19 impact, but it's definitely getting better.
Got you great. Thanks, guys I appreciate all the color. Thanks.
Thank you.
Your next question comes from the line of Matt Larew from William Blair.
Hey, good morning, guys just wanted to get sense.
Yes, good morning, as the but for the tend to pick up in February and March if there's anything to share in terms of sort of what the mix of those patients who are potentially.
Bouncing back faster.
Than others, and then how do you of any sense for us.
How much of that is kind of a snapback in pent up demand of course.
The taking some share of few if any of your operations have reported EBIT.
All of a smaller understand of competitors that were around last year. Many are around the sooner I can pick up those referrals.
Yes, I don't have any way to really clearly measure.
Particularly small competitors and how many are <unk>.
I think a lot of those competitors got PPP money last year, which was the bridge to the other side in terms of the mix.
It's really across the country, we still have some areas that are a little bit more impact that we really get down to a state basis states like Oregon still.
Having some some some struggle in some trouble and in fact dialing back some bids.
The business openings here recently with.
With some virus pick up.
Notably the fewer much fewer.
And there are places where our business is really strong in terms of snapback or market share again, it's a little bit tough to measure I think there has been.
<unk>.
People have put things on pause and I think for the most part of those people who've gotten vaccinated roughly 50% now of population or a little better as the first vaccine for flu.
Beginning to do the things that they had put on pause.
I think theres, the big pent up surgery demand, though I do think we're moving some market share and my guess is we're probably moving as much of it from smaller competitors as we are from us.
Hospital campuses, where people don't really want to go to a hospital campus not particularly efficient.
The troops the way through med.
Medical office buildings and just the campus in general we're just.
Easy to drive up to and walk in and go straight back and be seen so.
I think thats certainly part of it we've got a great team. We've got a lot of good resources, we're very focused on moving that business into our door and not having to go somewhere else.
Yes, it makes us Linda.
A follow up on an H P value on them.
The last quarter call that the sales cycle. The lager would take some time to rebuild the pipeline you alluded to obviously customers potentially pushing pause on the the decision to implement the programs.
Just curious what the kind of discussion level activity of new business development.
Activity has been like here in the last month or two as of Christian mentioned vaccines are really rolling out cases, now coming down people starting to think about return to work.
Yes, our team there has done a really good job and so we are seeing things.
We're seeing things getting done.
And we expect to have a good year this year, which is part of our guidance.
So, but things are things are improving as well.
Okay, and then I guess, just the last one would be on the M&A pipeline book with the Medicare cut and then the.
Bevy of COVID-19 cash that was given to providers to help bridge.
The difficult 2020, just curious sort of inbound activity has changed at all anything youre hearing.
Gross protecting from partners of our pledge of partners you may have spoken too in 19 of 20 that the decided that wasn't the right time, just kind of curious what the activity levels for Mike.
Okay of the activity levels really brisk right now.
But I think it's different than what people think these aren't people that.
Got it got.
Got really badly beat up in 20 of these are these are all for the most part of people who did pretty well we have seen and it's been a little bit challenging we have seen more broker activity right now in some cases.
Sloppy broker activity, where we don't even get financials for last year. The they reflect where the company was <unk> 19, and so we're a little circumspect about that depending upon what level of information, we can get but we're I don't know around continuing to make contacts.
We're going to get good things done this year as we always do.
<unk>.
We're not kind of a bottom threep group for not we're not just trying to look for people that are massive distress, we like partners that the things like we do want to be around for a long time and grow and see this as an opportunity to move market share and go forward.
Yes, yes, no I don't see you guys doing a lot of deals on a pro forma run rate adjusted for X y and Z basis.
Would expect that to continue thanks for the questions.
Okay. Thanks for that.
Your next question comes from line of Bryan Bryan frankly from Jefferies.
Hey, Brian Good morning, Good morning, guys, Chris I'll, just follow up to one comment you made in the prepared remarks on pricing bump with the negotiations with payers.
I think thats kind of a new angle to the story that we haven't heard in years. So just wanted to hear your thoughts on what's driving that is this finally, the point where local density us.
The leverage point for us.
Scaled PT providers like yourself. So if you can just walk us through the pitch to managed care and trying to get.
Price increases.
It's really easy pitch, Brian and we're talking about non Medicare the pitches, you're paying the hospital three times more than youre paying at outpatient provider were inherently more efficient because the people to a higher level because the people out quickly.
For the life and they don't have to.
Deal with the logistics of.
So kind of navigate hospital campus and the differentials just large and we've been beating that drum for a while and.
And that coupled with.
The market presence nationally.
Geographic footprint that's true.
<unk> basically 40 states.
And I think we've just said okay enough is enough.
Sure.
I'm personally tired of having Medicare and others the value of our business, which contributes so very much.
And then cost savings in general and we're just we're tired of taken it and we're going to push back.
No that makes sense to follow up on that right. I mean do you think is it more national scale or does it have to be local scale, where you feel like you need that to drive that negotiating power of harder.
I think I think it's more national than local I mean, most of these companies.
I won't name them, but I mean, you're dealing with large national companies until Theyre not just looking at any more.
Our Houston market I mean back of the day when I was in the clinic you had companies that were.
It was of much more fragmented industry.
And you had companies it just handled Virginia or maybe even companies that were just in Richmond, where I was.
Not the case anymore of these companies want simplicity.
Don't uniformity.
<unk>.
And thats provided by having a bit of.
Our national footprint in my view.
Now the locally.
Having the local footprint certainly helps with name recognition and customers in other clientele, but the contracting I think.
As more of national.
Now that makes sense and then.
And just the follow up on Matt's questions on acquisitions right. So.
Would it be accurate to say that your appetite for deals right now is probably greater than in the past and you talked about some of these brokered deals just curious what your willingness or appetite for something larger.
Yes.
Yeah.
Our appetite for always been to find good deals with the right people and we have not been afraid to do things.
<unk> size, it's about finding the right people book.
Yes, we have a good appetite right now so what I don't want anybody to read into that.
We have different criteria today less critical criteria in terms of the integrity and the quality of the people that we are searching out that hasnt changed but we want to grow we feel like we've got a team that's capable of growing and you know.
What our balance sheet looks like and so we certainly can and so we're going to we're going to put it the war as best we can.
Got it and then last question from me, Chris Labor costs.
Both of the clinical side of the non clinical side I mean, what are you seeing there.
It's a mixed bag, we're I think in some cases, we're having some trouble for.
Filling in getting.
Front office people, who may be by nature still have kids in.
In school or home schooled because of COVID-19 or whatever maybe.
Maybe for.
For don't want.
Care, maybe they've gotten the government assistance.
So working us.
Not as big of deal with all the other complexities on the.
On the on the PT side.
I think its were certainly busy until we have open positions right now, but we seem to be doing a good job. The team seems to be doing a good job of keeping those spill as evidenced by the fact that we're seeing in volume pick up and so.
I do expect.
Over.
Okay, I'm, just going to say expect over a period of time.
C.
A little salary pressure, but a lot of it depends on what the government continues to do an dull out and how many people really want to get back in the workforce.
I suspect there is.
A pretty large number of people you need to get back to the workforce, who aren't working right now and that should help maybe take some pressure off at some point, but right now were still kind of straddling the fence on that.
Awesome. Thanks, guys.
Thank you.
Your next question question comes from Mitra <unk> from Sidoti.
And Mitra.
Hey, guys.
Just wanted to follow up of a couple of things that you talked about maybe some cost coming back.
You continue now with the.
Get back to a more normal environment and I was curious.
Of the Furloughed employees, you had I think a few hundred.
Did you have followed us.
Wondering.
Yes.
They are all pretty much back or youre still gradually going to be looking for.
Bring them back.
I think the people that we're looking to bring back are now back.
And so the carriers to get the numbers I think in front of him. So.
As we grow and as we add the people we're going to be you know, we're going to be adding staff potentially for growth.
Not for not just to bring people back of a furlough.
Okay, Alright, great that brings back into my next question in terms of the growth is.
If you can remind us where you are in terms of the sales for us and.
It tells it for just to calibrate.
Maybe looking to expand on that front.
I'm going to have to kick that to Glenn and Graham maybe give an update on exactly where we are in sales because I know it's changed a bit over the period.
It may not be current.
Yeah. So Chris this is Graham Scott.
Currently 72 sales reps covering us.
400 locations and we increased net by about 14 positions in Q1.
Okay perfect.
And then I had.
I missed the.
The number of the impact of the storm us out for the quarter. I know previously you had made it was about $3 million of lost revenue of about 38 cents a share.
It might be helpful.
Yes, that's right those are the right numbers and that is what the impact was $2 $8 million 13 per share.
Okay, perfect and then finally as it relates.
Again network expansion I was just curious.
Sales of COVID-19.
Kind of change your.
The spec of Intel was up maybe some markets you initially looking to get into some states that may be some moderate if there've been any changes on the on the geographic fund.
No no real changes there no real changes in our direction the.
The states we're in.
Are tend to be higher reimbursement states.
And there are a few states that were out of.
Maybe one or two of which we wouldn't mind moving in but have some.
<unk> the corporate practice.
That shoots.
Of the states that have a combination of regulatory burden.
Extremely high tax burdens and other things, California, and New York being among those two but.
No. There is no no COVID-19 impact to what we have planned in terms of development.
Okay. Thanks again for taking the question. Thanks for thanks for nature.
As of reminded me of a question. Please press star one on your telephone keypad Youre.
Next question comes from the line of Mike.
<unk> from Barrington Research.
Hi, guys.
Hi, Mike.
I may have missed I may have missed this if you addressed this.
Did you guys talk at all about sort of the impact of COVID-19 in terms of therapists being out of work and sort of the update from November to February and then to sort of where we are now in terms of if theres been I assume there's been some progress on that front, but anything you can talk about on that would be great.
Yes so.
Hang on one second.
Let me just see.
Got it.
Yes.
Yes, so we really the peak of of having employees out due to quarantine was in the November.
We're really November December and January but then scaled back significantly since then in February March and April were down quite a bit.
We don't have that many we have about 40 people out due to quarantine as opposed to the peak in November which was over $340 a month or 40, an amount over the management teams of running much shorter.
Yes.
An updated guidelines and a host of other things. So we're running at about 10 people in a given point in quarantine.
But I will say, we are probably much like the general population, we're trying to get above that 60% Mark.
Total people fully vaccinated.
Sure.
We've slowed down a little bit so we're pressing as hard as we can we have some pockets that are.
At this moment of little bit more challenging so I suspect we're going to continue to have some people from time to time in the corn team, but to Gary's point, it's gone down a lot.
So I want to make sure I understood the when youre, saying youre pressing towards that 60% or you're talking about.
Less than 60% of therapists clinicians that are currently vaccinated.
I don't have it no I didn't break it out from there.
Total employees and that includes.
Hard time pool PRN of whole deal I suspect.
By next call. We'll have this will get a breakout just for the clinical folks. My guess is the clinical side is much higher but but.
But overall were.
No.
Or we'd like to be just like the country is probably not worth it would like to be yeah, I'm actually a little surprised that.
Any of the treating therapists wouldn't be I mean, maybe.
Maybe there are states, where they can't get that done.
I know here locally.
Anybody working with patients.
In terms of hospitals et cetera, the wrong.
Sort of mandated you've got to go get vaccinated.
You would be surprised most of the hospitals haven't mandated most of the employers have mandated.
Until FDA approval.
The full approval.
<unk> I think that's going to be a challenge for employers.
Side to mandate I think the loose people right now.
So we're working.
This on a variety of different fronts.
Yeah.
We will continue to make progress as time goes on but we're not we're not fully there yet okay Chris.
Chris earlier, you alluded to briefly sort of.
Some renegotiated leases of any color you can add on that I mean, what percentage of the leases were renegotiated any quantification of hey. This we think this will save us X amount over the next few years.
Is there anything you can just add to that general comment.
Yes. These get straight line. So I mean, I don't know what it is on a yearly basis.
The I don't have the.
The total in front of me right now but.
We've recently made.
Some decent progress Graham I don't know if you have.
A round number in terms of overall adjustments if you don't that's fine.
Yes.
We're sitting at about 350, K in gorilla adjustments Chris.
Okay.
And can I just ask what.
Roughly what percentage of all of.
All of the leases that you have the do you actually renegotiated.
It's a moving number so I don't really have the percentage number for.
Is it closer to us like 10% or 50%.
No it would be not 50%.
Okay.
Okay, Alright, very good a good.
Good job guys are fans of the fantastic.
The momentum thanks.
Thanks, Mike.
And at this time there are no further questions.
Okay.
And thanks, everyone, Gary and I are available if you of any follow up questions over the next few days. We appreciate your time this morning.
Great rescue we thank you all right. Thanks.
Thanks.
This concludes today's call price you may now disconnect.
[music] zone.
Yes.
[music].
Okay.
Yes.
The.
True.
[music].