Q2 2021 Avinger Inc Earnings Call
Yeah.
[music].
Good day, ladies and gentlemen, and welcome to the average of second quarter 'twenty 'twenty..1 results calls all of mine have been placed on a listen only mode on the floor will be opened for questions and comments. Following the presentation. At this time. It is my pleasure to turn the floor over to your host Matt Kreps, Sir the floor is yours.
Thank you I would like to welcome you to average your second quarter 2021 conference call joining us today of Avon's Your CEO, Jeff <unk>, and Chief Financial Officer, Mark Whiteside earlier today <unk> released financial results for the second quarter ended June 30 of 2021, the copy of the release is posted on the average your website.
<unk> Investor Relations.
Before we begin I'd like to remind you that management will make statements. During this call that include forward looking statements within the meaning of federal Securities laws, which are made pursuant to the safe Harbor provisions of the private Securities Litigation Reform Act of 1995.
Any statements contained in this call that are not statements of historical fact should be deemed to be forward looking statements. All forward looking statements, including without limitation of our future financial expectations are based upon our current estimate of various assumptions.
These statements involve material risks and uncertainties that could cause actual results or events to materially differ from the anticipated or implied by these forward looking statements.
Accordingly, you should not place undue reliance on the statements.
For a list and description of the risks and uncertainties associated with our business. Please see our form 10-K and form 10-Q filings with the Securities and Exchange Commission.
It was your disclaims any intention or obligation except as required by law, the update or revise any financial projections of forward looking statements, whether because of new information future events or otherwise.
I'd like to now turn the call over the job.
Thank you Matt good afternoon, and thank you all for joining us.
We're excited to report another strong quarter for Avenue are driven by growth across our platform as we build scale and expand distribution of our best in class line of the image guided catheters.
<unk> Terrace SV device has been of primary growth driver to do its compelling advantages for the treatment of small vessel disease, especially in the challenging the treat arteries below the knee the.
The success of Pantera. The SP has been supplemented by continued strength in our Pantera, the nextgen device and rapid scaling of our Tigereye commercial launch, which has returned our image guided CTO crossing business to growth low.
The 3 new innovative devices over the past 3 years has enabled us to make significant inroads into new accounts and secure a greater share of cases of existing users sites.
We're looking to expand upon that success with 2 new 500.10-K filings in the past 45 days, both of which we expect to provide opportunities to meaningfully accelerate adoption of our technologies in the future.
In June we filed a 5.10-K submission with the FDA to expand our U S label for Pan Terrace to include the treatment of in stent, restenosis or ISR, which we believe would provide a highly differentiated competitive advantage for our atherectomy products in an underserved market.
Just yesterday, we announced that we have filed of 5.10-K submission for our next generation light box 3 imaging console.
We're excited about the potential for this highly portable advanced laser system to accelerate the pace and efficiency of new account acquisition and bring new capabilities to our platform.
We are also continuing to invest in the expansion of our sales force to provide greater geographic coverage and support more user sites.
We've opened more than 30, new accounts over the past 12 months clearly affirming the appeal of our expanded product line and the ability of our sales team to meaningfully engage with the physician customers to drive new technology acquisition and their institutions.
We delivered excellent financial results from the second quarter with procedural volume improving towards pre pandemic levels in the first half of the year.
Our second quarter revenue increased 91% year over year, continuing continuing a positive trend from the last 3 quarters. The second quarter set of 4 year record for catheter sales as users continue to increase utilization of our devices at both new and existing sites.
With increasing COVID-19 infection, and hospitalization rates being reported throughout the U S. Due to the Delta of area, we're beginning to see limitations on elective procedures being discussed and in some cases implemented in certain hospitals and markets, especially in the south.
We're maintaining our full tilt presence at full strength, but this is something that we believe has the potential to impact procedural volume in the third quarter and we're watching closely as the situation evolves.
We've grown revenue for our <unk> family of Atherectomy catheters by over 50% on an annual basis for the past 3 years and now with the launch of Tigereye, we are driving significant growth of our CTO product line.
We advanced the full commercial launch of our Tiger at CTO crossing catheter in January 2021, and we've been pleased with the initial market response, our early success with the Tiger on increased our total image guided CTO revenue by 114% year over year in the second quarter, returning our CTO franchise to growth and.
Our share of the approximately $100 million peripheral CTO market.
We have now launched Tiger on more than 40 sites and we continue to engage with new customers. Each week clinical feedback on Tigereye continues to be positive with its enhanced imaging new distal tip design increased control and higher rotational speeds, enabling physicians to safely and effectively cross complex CTO of <unk>.
Our Panther <unk> SV catheter also continues to be of major growth driver for the company by expanding our image guided atherectomy solution to the small vessels below the knee.
We hit the 100 active accounts smart for Pentair S V. In April illustrating physician's interest in this highly differentiated device BT.
PTK as in the underserved market with the high number of patients suffering critical limb ischemia or CLI. The most severe form of P. E D.
The on board of image guidance provided by <unk>. The enables physicians to target plaque and vessel vessels, just 2 to 4 millimeters in diameter, while avoiding damage to healthy tissue.
Most important positions continue to achieve outstanding and durable results with the Panther SSP in their clinical practice.
The document. These results we are expanding our image V. Teekay post market clinical study designed to evaluate the safety and effectiveness of Panther SSD in the treatment of below the knee lesions. We are currently enrolling the study in 4 clinical sites and plan to add 2 to 3 additional sites this quarter.
Our objective is to complete enrollment in the study by early next year with patient follow up data collected at 30 days 6 months and 1 year post treatment.
Based on the clinical results. We've seen to date, we are very excited to have data available to share with the clinical community in 2022.
Looking towards the second half of the year, let me share some details on our key initiatives.
We expect 2021 to be a pivotal year for <unk> with several growth drivers of the strategic updates coming together.
These include increased market penetration of our Panther <unk> SV device. The continued rollout of tigereye to our growing customer base.
<unk> 10-K filing clearance and initial release of our Lightbox 3 next generation of imaging console and the pending U S label expansion for Penn terrorists to include an instant restenosis indication.
We are also strategically expanding our sales force expecting to increase our teamed over 30 professionals by year end, including both sales representatives and clinical specialists in both existing and new high potential markets.
Turning to our pipeline products as mentioned previously we have now filed of 5.10-K submission for our Lightbox 3 next generation imaging console.
We believe the Lightbox III represents a major leap forward in imaging portability and capability to accelerate new account acquisition and energize the existing users we hope to receive pre marketing clearance and have the lightbox III available for initial launch by the end of this year.
Lightbox III incorporates an advanced solid state laser of more powerful computing platform redesign software system and highly intuitive user interface designed to streamline workflows for practitioners and support increased utilization of our image guided devices.
This next generation console delivers all of these enhanced enhancements within a radically reduced footprint and at a much lower cost, which as anticipated the speed the evaluation process and reduce barriers to adoption and new accounts for.
For perspective, the Lightbox 3 fits into our case the size of the carry on suitcase and weighs less than 20 pounds of 90% reduction compared to our current console. The new Lightbox III is anticipated to reduce cost by as much as 50%.
While we advanced Lightbox III through the regulatory approval process. We are also working to expand our peripheral product portfolio with new PID catheters that would provide additional utilization opportunities and further streamline our procedures.
We expect this work to lead to 2 new 500.10-K filings in the first half of 2022, and we will share more details on these initiatives as we get closer to that time.
We're excited about our recently filed 5.10-K submission seeking FDA clearance to add the ISR indication for Panther is this.
This filing is based on highly compelling data generated from our insight clinical trial, which clearly demonstrates the safety and efficacy of <unk> therapy for this indication we expect to release this data at a major clinical conference later this year.
With 200000 stents deployed in the lower extremity arteries in the high propensity for restenosis of lesion recurrence of over 2 to 3 year timeframe. The sheer number of ISR procedures performed in the U S. Each year provides a significantly expanded market opportunity for <unk>.
Due to the limitations of current approaches physicians often face challenges when treating ISR, both in terms of safety and efficacy.
If approved <unk> would provide a compelling use case in an underserved and difficult to treat market. The large patient population who of medical needs directly align with the unique benefits provided by our platform.
While we've made big strides advancing our peripheral product portfolio in recent months. We've also begun working on what we believe could be the largest new market opportunity for average or the application of our proprietary technologies for the treatment of coronary artery disease or the <unk>.
Treatment of Cdos in coronary arteries represents the clinically challenging and largely underserved market.
We believe that our image guided platform could bring significant clinical benefits to this market segment and provide a highly attractive opportunity to expand our business.
Currently only a limited number of interventional cardiologists attempt to lessen basis, but highly complex percutaneous coronary intervention or PCI procedures that require the use of multiple wires balloons and other devices and carry a risk of perforation or other procedural complications even so it's estimated that approximately.
Emily 50000, CTO PCI procedures are performed in the U S. Each year. In addition, it's estimated at over 200000 highly invasive coronary artery bypass grafting or cabbage surgeries are performed in the U S annually with up to 30% of these procedures related to the treatment of coronary CTO of <unk>.
This creates a sizable and growing market that we believe is ripe for expansion with proprietary new tools that would make a percutaneous approach accessible to more physicians and reduce the need for extended time under fluoroscopy radiation with potentially fewer procedural complications.
We believe that our proprietary octu guided technology platform is well suited to provide the basis for new catheter based solutions designed to help physicians safely and effectively cross coronary CTO is on the less invasive percutaneous basis.
The amended by our learning with Tiger I in the peripheral arteries. We've begun initial development of an image guided CTO crossing device for the coronary arteries.
It will take time to complete product development and we anticipate that of clinical study will be required to support the regulatory clearance process. We believe this could be of transformational opportunity for average or that would significantly increase the addressable market for our products and change of the standard of care for coronary CTO of <unk>.
We look forward to discussing more details on our future calls as we advanced the dedicated development effort this year.
This is an exciting time for average or is our product clinical and commercial initiatives come together as we transition to growth across our primary product lines at upside opportunities from our Lightbox III and open new market opportunities with our clinical programs, we provide new growth opportunities for the company and most.
Accordingly, empower physicians to provide the best possible care for their patients with the most advanced therapeutic devices on the market.
At this point I'd like to ask Mark to cover the financials net I'll return for Q&A Mark. Thank.
Thank you Jeff.
Total revenue for the second quarter of 2021 was $2.8 million of 91% increase from the second quarter last year and up 10% from the first quarter is important to note that many of our sites. We're still working to return to pre COVID-19 volumes in the second quarter of 2020.
Well, we are continuing to monitor market conditions for the rest of this year, particularly in the southeast where the Delta variant has been more prevalent.
The second quarter of 2021 included record Pinterest, SB sales and strength in our CTO of business driven by contribution from our new Tigereye CTO catheter.
Slowing of recurring revenue streams continues to be a core element of our commercial strategy.
Gross margin in the second quarter was over 36% up from 24% in the second quarter of last year and up 1 percentage point sequentially.
<unk> contribution margin from incremental sales of disposable products is far higher than our reported gross margin providing important leverage in our operating model as we scale the business to drive more revenues.
Operating expenses for the second quarter were $5.4 million compared with $4 million in the year ago period, and $5.5 million in the prior quarter the.
The prior year included certain temporary reductions as part of our response of the COVID-19 pandemic.
We are continuing to grow our commercial sales team invest in product development, including our new Lightbox of next generation catheter solutions and from clinical programs to fuel future growth.
Net loss attributable to common shareholders was $2.5 million in the second quarter down from $4 million in the second quarter of year ago, and $5.1 million on the first quarter the.
The second quarter of 2021 included a 1 time gain from the forgiveness of the loan received under the payment protection program.
Adjusted EBITDA, which is the non-GAAP measure that excludes certain excess on obsolete inventory charges depreciation and amortization expenses stock compensation and other items as noted in the tables in today's press release for the loss of $3.9 million in the second quarter compared with the loss of $2.9 million in the year ago quarter.
<unk> 4 million on a sequential basis.
Copy of the reconciliation from net loss to adjusted EBITDA can be found in today's press release, which is also posted on our website at www Dot average dot com under the investors section.
Cash and cash equivalents totaled $26.7 million at June 30, which is expected to fund sales force expansion, new product development and clinical plans through 2022 at this point I'd like to turn the call back to Jeff for Q&A. Thanks, Mark the second quarter continued our positive momentum as we continue to drive growth.
Across our best in class product line and advance our new product pipeline.
We're focused on executing our strategy to build value for avenue of stockholders and fulfill our mission of radically changing the way of vascular disease is treated with a recent 500.10-K filings, our new product development efforts and clinical study programs and an active and growing sales force, we're well positioned for the future at this point, we'd be happy to take your question.
<unk>.
Thank you, ladies and gentlemen, if you would like to ask a question. Please press star 1 on your telephone keypad at this time. Our first question comes from Mark Weisenburger with B Riley Securities. Please state your question.
Thanks, Good afternoon.
Nice to see the the continued momentum.
Shortly after the Panthers SCE was launched we had the onset of the pandemic and I'm wondering if the first half of 2021 kind of feels like a reset on that launch and how receptive are physicians to learning about the new capabilities and then I guess also with the recent launch of Tiger I can you talk about some of the cross selling dynamics on the ability of.
Poland increased utilization or new accounts.
Yeah. Thank you Mark for the question. So first of all as it relates to <unk>. The Youre right. We had launched Panther assess the quickly entered the challenges of.
The initial wave of the pandemic.
And we had the resulting impact across the board as the the whole industry on revenue, especially in the second quarter of 2020.
We did keep our our team in the field wherever possible. We maintain present as you saw on our third and fourth quarter results. We came back pretty quickly from from the hit on pandemic, especially the pandemic, especially as we got into the fourth quarter and then the first quarter as procedural volume increased we saw continued increase.
In procedural volume in the second quarter.
And that's reflected in our results not fully back to where the procedural volume had been on and pre pandemic, but at the same time, we expanded our share in our penetration with Panther necessity based on the utility of that device and so we see Panther SSD positioning the company very well, especially when the.
There is a more limited environment, where only emerging or urgent cases are being treated because of Panther SSB is primarily use below the knee, where CLI or critical limb ischemia as most present so in a way.
The presence on the strength in the the clinical and physician acceptance of Panther assess the I think really helped us come back quickly after the the significant impact of the pandemic. So we continue to see great results. We've had several new users.
Adopt our lunar vascular platform and become customers of average or because of the solution because they feel so challenged in providing safe and effective atherectomy that provides significant luminal gain below the knee. We also think the information provided by SD during a case as it relates to vessel.
Size.
The presence of calcium presence of media wall of calcium et cetera is very very useful in these challenging below the knee lesions in critical limb ischemia cases, so glad to have that product in our portfolio continue to develop new data and image PTK. There are a couple of physician sponsored studies that are ongoing as well focused.
<unk> on Panther SSD in the utility of that device below the knee, which could lead to future publication. So.
So just kind of pause there for a minute and see if you of any other questions on SB and then we can kind of get over to Tiger.
No, but I think that was a pretty good on etsy.
The cross selling dynamics and the pull in from utilization of the new accounts from Tegra.
Yes, so with Tiger I as we discussed on the call. We've now launched in the over 40 accounts tighter.
Tiger I.
As you know of CTO crossing device because it is a CTO crossing device. The vast majority of accounts and the primary appeal is in the hospital market, which is less sensitive to some of the reimbursement issues and cost issues and so we virtually all of our Tigereye business.
In the in the hospital that the success of Tigereye has done a couple of things for US first of all by adding that revenue with little cannibalization of the awful lot business, it's driven a dramatic growth in our CTO business, which had been declining as we had a more mature product entry and kind of longer.
The longer standing product in place. The other thing that's done is it's enabled us to really engage with our reps, especially our new reps and clinical folks who maybe hadn't had as much experience selling in treating CTO of <unk> and so this brought a lot of energy to the CTO is overall as we engage with physicians in the.
Those hospital accounts.
And then the final thing that we see happening here is unlike awful lot, which does not is not driven by our sled based system. The tigereye is driven by our sled based system and as is our pan tariffs. So when tigereye is used in the case.
And that CTO has crossed everything is set up already to just immediately and rapidly exchange the tigereye catheter for a panther as catheter and that has led to certainly a good number of what we call combo cases, where the image guided approach is used to safely crossed the.
CTO avoid.
Going sub ansible and damaging the lumen and then following with image guided atherectomy toward the same intent.
So we do see that it's still a building story Tigereye is still very new to the market. We are learning about it our physician customers of learning about it we're learning and refining training capability, but we're really pleased with how things are going so far and having consistent imaging and using the <unk> sled based <unk>.
I think does create for easier transition to a panther as catheter following CTO crossing.
Sure that was very helpful and kind of goes to my next question I'm wondering if you could talk about the trends and where you're seeing care being delivered kind of the hospital versus your OBL mix.
Kind of expectations for that dynamic in the second half of the year and then also with the light box 3.5 10-K application that was recently submitted if and when that gets approved how all of that impact some of those kind of location dynamics.
Yes, no great question. So we do see the market overall of that.
<unk> every year continue to become a bigger and bigger factor our business is still primarily weighted towards the hospital over 80% of our business is hospital business. Although we've made significant inroads into the OBL, especially with some very important.
Thought leaders over the last 12 months and so.
We will see I think continued interest in the OBL. There is the reimbursement dynamic that is happening right now and you may have seen that the CMS CMS released their 2022 proposed rule.
For reimbursement for the physician fee schedule in July and that called for a 22% rate reduction.
Our referral vascular CPT codes now that impacts the OBL segment.
For inpatient and outpatient payments for peripheral atherectomy the increases they've actually recommended increases of about 2% to 3% and so there could be a a.
Kind of rebalancing.
To the detriment of the OBL reimbursement.
Coming out of of.
The 2021 this is not in any way final. However, this is now currently opened the public comment and so the societies and physicians and providers will will have an opportunity to comment with CMS, but but in November the final physician fee schedule will be published and then we'll go into.
Effect January 1.
Now.
We don't think that that will fundamentally pushed things out of the OBL, but it could it could slow the the.
Kind of transition of cases to the OBL or increase the.
The hospital usage as there is this rebalancing of reimbursement, which we've seen in other industries. The good news is I think we're well positioned either way we are a highly differentiated product that offers something that no..1 else can as that real time imaging during of therapeutic procedure and we sell on those clinical benefits on our.
<unk> use us because they want to provide the best standard of care for their patients. So I think we're well positioned from a product.
Differentiation standpoint, I also think we're well positioned in that we do have such a strong presence and growing presence in the hospital market as well.
Very helpful understood within the press release, you talked about a pipeline of new accounts that are that are in the process. I am wondering if you could talk about some of the limiting factors to get them up and running and maybe what youre doing to accelerate the on boarding of those new accounts over the back half of the year.
Yes, so so new account acquisition, we have been successful over the past 12 months from adding new accounts, but we've brought a renewed focus too on additional focus to bringing our platform into new accounts with our expanded product line with Panther assets and with our.
And with our Tigereye product it gives us an opportunity to talk about new technology, we have new data and we'll be rolling out in the back half of the year from our insight study. If we're successful in getting the instant restenosis claim we will have a massively differentiated directional atherectomy product.
And we believe that can be a very effective and exciting way into a new accounts, who is looking for a solution for treating these difficult to treat in stent restenosis cases, so I think through both our product efforts through the expansion of our sales force and of management sales management focus on developing and advancing a pipeline of.
On a very disciplined way and including just adding another of regional sales director, who is the tremendous amount of experience and new account acquisition, helping that program I think we're positioning the company well for the second half we already of the added a significant number of new accounts this quarter and expect to have a strong.
<unk> quarter of New account acquisition of course, unless we are impacted.
In a significant way by by Covid and kind of shut down of of <unk>.
Access in the back half of the quarter, but but a lot of the sales force expansion and growth, we are going to be hiring and expanding into a couple of new territories through.
Through the back half of the year, it's the new products.
It's the new claims for Pam tariffs and then ultimately Lightbox III, which we expect to impact is mostly in the 2022 timeframe.
Is that of valuation process very easy to go in and do an evaluation as opposed to having the shift the 240 pound of Lightbox and everything else, it's very easy to.
To get a new piece of capital into the lab again, our focus has really shifted to driving that high value recurring catheter revenue.
Yep.
Helpful. And then the just the final 1 from me with a lot of the heavy lifting done in the first half of the year for the 500.10-K applications.
That we're both submitted.
Within the last kind of month or 2 how should we think about the operating expenses in the back half of the year on the mix kind of with R&D and then the SG&A as.
Well, thank you very much.
Yes. The question on Mark So a couple of things first of all as Jeff mentioned and as we talked about we are going to continue to expand our commercial sales teams. So we would expect to have more investment in that area.
On the R&D front, we talked a little bit about the fact that the.
We do hope to have 2 additional 5.10-K filings.
The next year and the.
In the first half of next year, which obviously additional opportunities to drive our business and in addition to that we're also looking at the coronary program. So we would expect that our R&D expenses should be relatively flat kind of go into the back half of the year just as we continue to invest in these opportunities that we think could bring some strategic value to the to the.
The organization.
Great. Thank you very much.
After all parts of the question.
I'm sorry on our next question comes from Nathan Weinstein.
Hi, Good afternoon, Jeff and Mark Thanks for taking my questions great to see the 91% revenue growth figure and congrats on having multiple 500.10-K submissions in the quarter.
I should start on.
On margins really impressive year over year margin expansion, maybe how do we think about margin margins going forward and what some of the major levers are true.
Yes.
Yes. Thanks.
So just to walk through obviously 1 of the things that we've been able to do with me over the last couple of years, we've been able to to continue to increase our margin profile, we had on that.
They are very very strong quarter, the margins greater than 36% this quarter gross margin in.
In addition, as we've mentioned before and has talked about on our prepared remarks, our direct margins of our contribution margins are significantly higher than our current gross margins were upwards of 65% to 70% on direct margins on our on our product sales on our catheter sales. So as we continue to drive revenue growth and revenue was up high.
We do expect to see additional operating leverage to the margin line as we starting to see some of the benefits from that as we go into the back half of this year. Our goal is to continue to increase our sales force continued to increase our non.
The new accounts on our revenue profile from.
As we hopefully see some of the benefits.
2021, and 2022 from some of the 5.10-K that we filed from of the new products. Some of the new accounts on the new sales folks on the team. We do hope that we can continue to see that level of progression in our gross margin line.
Great. Thanks, Mark on this.
The question here on the commercial organization, obviously, they have an interest in continuing to expand on.
On that can you sort of talk about priorities for where you might want to put head count going forward.
Yes, so hi.
Hi, Nathan so when we look at the sales force as we said we expect to grow about 20% this year versus last year. So in the year with over 30 folks on board. We did just add to our sales management team. We don't expect to make further additions to sales management. This year the rest of our new hires will be split between.
Clinical specialists who are.
<unk>.
Utilization.
Primarily existing accounts, but also supporting some new account efforts and those new hires would be typically deployed in an existing territory, where we're going to go deeper. We also are looking at adding.
A couple of new territories in the back half of the year, we're actively recruiting for PSM, our territory sales managers, who are true sales professionals to.
To expand our presence in the new markets that we see as high potential atherectomy markets. Maybe we have 1 account that were supporting remotely, but we see a major opportunity to grow our business on our footprint. So it's really a combination of putting new resource into existing territories and starting to expand into new geographic territories.
So where we feel there is high potential for alumina vascular platform to penetrate and drive growth and again, it's a mix of.
The sales representatives, our territory sales managers and clinical specialists.
To support those efforts.
Thanks, Jeff Great. Just the final question from me sort of with all of the pieces coming together between the new accounts of the larger sales force.
<unk> expansion, new products, and particularly the Nextgen lightbox.
Think about what the synergies are from all of those pieces of the possible we start to see some activity on the topline maybe faster inflection of growth ahead or maybe the if any comment you can make on how all of those things will work together to drive the business would be helpful.
Yes, I think exactly you laid it out very well it really is the combination of factors that are going to they are pulling together and as evidenced in the growth. We had this quarter on really over the last few quarters and over the past 3 years as we've introduced new products. So I think theres 2 pieces to it first of all as we introduce new products, we do expand the of.
Peel of our franchise overall and when we add new claims we're really excited about in stent restenosis for that reason.
So the new products, New catheters, I think drive expansion. They also drive higher utilization opportunities in existing sites, which makes our sales team more efficient and increases our number of catheter is used not only per rep. But also per site. So that's the very important way that we're focused on driving growth through improving.
CNC of our sales organization.
And again, driving our new account activity, which we've talked about we think that the just the physical expansion of our sales team on there is a little lag of fact right as you add folks you got to get them up to speed you have to help them build the pipeline and then you start to farm that but we are making those investments which is of significant investment for us as we.
As we go through the back half of the year and expect them to really impact 2022 is as we go forward through 2022. We also expect to have the benefit of the L..300 through most of which is the lightbox III through most of 2022 and we've talked about how that does.
We believe create 4.
More efficient evaluation process and quicker adoption of new accounts. So again I think that we've already been benefiting over the last few quarters from a lot of these factors coming together.
I think we will continue to benefit through from them and that benefit will increase as we go into the back part of the year.
But then our wet very well positioned to drive an acceleration of growth into 2022.
But it requires on banking requires time and.
And making sure that debt were getting a an efficient payoff from that investment.
Yes.
Great I appreciate your comments and congrats of the organization for the strong relative it's been a real pleasure over the last few years to see the business of evolving and look forward to the continued evolution of the average are ahead on.
Well. Thank you very much Nathan we appreciate the questions on the support.
Again, ladies and gentlemen, if you would like to ask a question. Please press star 1.
Yes.
Alright.
Well, thank you very much for joining our.
Second quarter conference call, we very much appreciate your interest in our company and your support and we look forward to reporting our continued progress on our third quarter call.
Okay.
Thank you. This concludes today's conference call. We thank you for your participation you may disconnect. Your lines at this time and have a great day.
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