Q4 2021 Electromed Inc Earnings Call
[music].
Greetings and welcome to the electrical Med Inc.
Quarter fiscal 2021 financial results conference call at.
At this time all participants are in a listen only mode.
A brief 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.
As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host Kelly all of the equity group. Thank you. Mr. AHL you may begin.
Thank you Diego and good afternoon, everyone.
Electric <unk> fourth quarter fiscal 2021 financial results were released today after the market close a copy of the earnings release can be found in the Investor Relations section of the company's website at Www Smart <unk> Dot com.
As a reminder, some of the statements that management will make on this call are considered forward looking statements, including statements about the company's future operating and financial results and plants such statements are subject to risks and uncertainties that could cause actual performance or achievements to be materially different from those projected.
Any such statements represent management's expectations as of today's date, you should not place undue reliance on these forward looking statements and the company does not undertake any obligation to update or revise forward looking statements, whether as a result of new information future events or otherwise.
Please refer to the company's SEC filings for further guidance on this matter.
Joining us from electrified this afternoon, our Kathleen <unk>, President and Chief Executive Officer, and Mike Mccourt, Chief Financial Officer.
Kathleen will begin with some opening remarks, after which Mike will present, a summary of the company's financial results. Then we'll open the call for questions.
Now, it's my pleasure to turn the call over to Kathleen.
Thank you Kelly good afternoon, everyone and thank you for joining us on today's call I will recap our key accomplishments during fiscal 2021.
Introduce our long range capital allocation and strategic growth plan.
And review the primary reasons, we remain highly optimistic about the non cystic fibrosis bronchiectasis market and our ability to create enhanced and sustainable value for shareholders over the long term.
Our fiscal 2021 financial results for both the full year and quarter four were exceptional with double digit revenue growth and strong cash flows.
Among the past year's successes, we maintained profitability, while making investments in strategic initiatives to position electromagnet.
For enhanced future growth.
Increased investment in new commercial team head count, including marketing and clinical field support to better support our existing and new direct field sales representatives.
During the past year, we further deployed funds into direct to consumer and digital marketing programs, which are providing us with a new stream of leads referrals and revenue.
Increased spending in research and development to advance our next generation product for patients. We believe this device will be easier to use lighter and maintain our differentiated comfort inherent in our current SQL smart best therapy.
For electric Med. This device is expected to have a lower cost structure given the composition of raw materials that will be used in its manufacturing we expect to launch the next generation product during the first half of fiscal 2023.
At which point, our R&D expenses should return to normalized levels in the range of 2% to 3% of sales.
We also implemented a new revenue cycle management system that we will that will improve operational efficiencies and provide enhanced business analytics, we made investments in strategic market analytics and commercial planning, which provided valuable information that has helped strengthen our growth strategies for the.
Sales team expansion.
Clinical study opportunities and identifying new market development strategies.
Finally, we continue to invest in clinical studies, including a prospective multi center bronchiectasis outcome study utilizing smart vests that is now approximately 25% enrolled after a several month pause during the pandemic.
We are also enrolling a post surveillance study with chronic obstructive pulmonary disease and bronchiectasis patients prescribed smart best utilizing quality of life questionnaires to measure outcomes prior to therapy and at two intervals. Following initiation of the therapy, we are planning to launch additional <unk>.
Studies later in fiscal 2022, we are confident that these strategic investments will drive profitable revenue growth and enhanced shareholder value creation in.
In addition to strategic investments, our new repurchase program underscores our go forward confidence.
During the quarter, we bought back approximately $1.1 million in dollars of our common stock under a new $3 million share repurchase program.
Turning to our financial highlights in the fourth quarter, we achieved year over year revenue growth of 37, 7% driven by 33, 6% increase in home care revenue and 96% increase in institutional revenue, reflecting improved clinic and hospital access for our sales.
Reps, particularly strong lead generation among existing prescribers of smart best and tremendous sales force productivity in fact annualized home care revenue per representative was approximately $808.84000 for the full year and 900 <unk>.
$6000 for the fourth quarter, both exceeding our target range of 750000 to $850000. Our sales team is benefiting from improved Onboarding training target account planning sales leadership coaching and accountability measures.
We're making meaningful progress in executing our strategy of adding new prescribing physicians to our base, while going deeper among existing prescribers.
Also during the quarter, we generated approximately 760.500000 in operating cash flow, while using approximately $1.1 million of cash to repurchase shares under our recently authorized share repurchase program.
For the full year, we achieved year over year revenue growth of 10, 1% driven by 12, 5% increase in home care revenue.
Delivered continued profitability, while investing in key strategic initiatives and generated approximately $3.1 million in operating cash flow a robust cash flow generation and strong year end balance sheet included $11.9 million of cash and no debt position.
Position us well to execute on our long range capital allocation and strategic growth plan.
Key priorities for allocation of our capital include continued reinvestment and electro medicine market expansion technology differentiation sale.
Sales force footprint and continued repurchase of electric med shares on an opportunistic basis.
Regarding investment in electric meds market expansion and product differentiation, our long range strategic growth plan for fiscal 2022 and beyond encompasses the following key pillars.
Expanding our sales force and sales territories invest.
Investing in prescriber targeting tools growing our direct to consumer and digital marketing programs as well as electrum its brand awareness driving operational excellence and system enhancements expanding the body of clinical evidence to increase the adoption of smart best and developing innovative device features that appeal to a broad.
<unk> range of patients.
Additionally, we will continue to explore and execute initiatives to further develop the HFC W. O market, so that more physicians treat bronchiectasis with our proven therapy.
Related to sales force and territory expansion, we are targeting 43 total direct sales reps by early October up from 37 as of June 20 June 30 of 2021. Indeed, we added three new direct sales representatives three of the four extent expansion territories and <unk>.
New regional manager in July 2021, given the success of our improved recruiting profile revamped onboarding and training procedures strong sales force productivity and lower turnover, we are confident that expanding our sales force will drive value.
Our planned sales team expansion will incorporate metrics to measure and manage new sales reps to maximize our return on investment. These include annualized home care revenue contribution margin and number of competitive account wins typically it takes a new sales representative six months to reach full.
Activity in established territories and nine to 18 months in expansion territories. Therefore, our blended target productivity range of 750000 to $850000 of homecare revenue per sales Rep continues to be in our view of an appropriate near term.
Appropriate in the near term as we grow the team to account for the time to ramp up to full productivity. During onboarding, we will provide additional information on future sales team expansion with successful execution of these expansion territories.
We are investing in targeting tools to identify geographical areas, where high percentages of physicians are diagnosing bronchiectasis and or prescribing HFC W. Rowe devices based on that initial analysis, we have identified attractive opportunities to expand into new territories in our western.
North eastern and southeastern regions, we have 43 existing territories and are evaluating expanding into those into additional new territories again later in fiscal 2022.
We are closely monitoring sales force productivity and increased head count accordingly, as we expand to ensure profitable growth.
By raising awareness of bronchiectasis, educating prospective patients and caregivers and referring them to pulmonologists with a focus on bronchiectasis care, we intend to continue driving meaningful home care revenue growth through direct to consumer marketing.
We believe direct to consumer marketing will provide an efficient and effective approach to reach more patients that could benefit from HFC WMO technology.
In the category of driving operational excellence and making system enhancements, we are planning for an ERP software implementation in fiscal 2022.
Designed to create more efficient and scalable operational processes, while enhancing the quality of business analytics.
We also intend to Institute, a premier customer service and internal account management model that is scalable and that provides an exceptional experience to patients providers and internal customers through this model. We believe we can improve the time to convert and approval.
Too.
Unapproved referral.
We believe our organic growth strategy focused on penetrating bronchiectasis market, our differentiated therapy smart bets and World Class service will support our long term goal of double digit revenue growth and improved operating margins. In addition to prioritizing the allocation of capital to our organic.
Growth initiatives, we intend to periodically evaluate and opportunistically pursue share repurchase on an ongoing basis.
On this note in the fourth quarter of fiscal 2021, we established the new $3 billion share repurchase program.
Which we repurchased approximately $1.1 million of common stock demonstrating our confidence in electric <unk> meaningful upside potential.
And our ability to capture the significant growing non cystic fibrosis, the significant growing non cystic fibrosis bronchiectasis market opportunity. We believe approximately 630000 people with bronchiectasis diagnosis could benefit from HFC W. O therapy.
It only an estimated 77000 patients in the Medicare population are currently being treated with a device like smart bets.
When it comes to customer support support clinician support we believe electromagnet second to none.
We have a multiyear track record of double digit organic revenue growth.
High gross margins in the 70% range robust operating cash flow consistent profitability and a strong balance sheet, all testament to our talented team our leading product in the attractive HFC W. A franchise we have built.
Against this backdrop, we look forward to capitalizing on the significant opportunities provided by this growing market and generating enhanced long term value to our shareholders.
I applaud the entire electric med team for demonstrating resilience in the face of many challenges caused by the COVID-19, pandemic and response to dampened face to face interaction industry wide among clinicians and patients we accelerated our virtual sales efforts and generated awareness of the centers for Medicare.
In Medicaid system waiver that improves patient access for smart best airway clearance devices to a noncommercial Medicare population by waiving certain requirements that burden the patient and physician with additional face to face visits and health care utilization.
As the year has progressed and nationwide deployment of vaccines rolled out we have observed in the upward trend in physician office re openings and greater clinician activity. Our team has executed a hybrid virtual and in person sales approach to great success as.
As you can see the results our home care referrals in both fiscal quarter, four and fiscal 2021 exceeded pre pandemic levels above all throughout our efforts. This year, we upheld measures to protect health safety and wellbeing of our teammates clinicians and patients and we are incredibly proud of our team's work.
With that I will turn it over to Mike for a more detailed discussion of our financial results. Thank.
Thank you Kathleen and good afternoon, everyone.
Our net revenue in the fourth quarter of fiscal 2021 increased 37, 7% to $9.5 million from $6.9 million in the fourth quarter of fiscal 2020, driven primarily by higher homecare and institutional revenue.
Home care revenue increased 33, 6% to eight 5 million, primarily due to an increase in referrals and approvals.
Reflecting greater patient clinic visits and face to face access for our sales representatives compared to the prior year fiscal quarter during which we experienced more substantial COVID-19, driven limitations.
At quarter end, our field sales employees totaled 46 of which 37 were direct sales compared to 44 at the end of the fourth quarter of fiscal 2020 of which 37 were direct sales.
Annualized home care revenue in the fourth quarter was 906000 per direct field sales rep above our target productivity range of 750 to 850000.
Institutional revenue increased 96% to 520000, primarily due to an increase in the volume of devices and garments sold of hospitals returned to more normal purchasing activity.
Distributor revenue totaled $130000 during the fourth quarter of fiscal 2021 compared to 14000 in the comparable prior year period.
International revenue, which is not a strategic growth area for electro med totaled approximately $361000 during the fourth quarter of fiscal 2021 compared to 262000 in the prior year period.
Quarter to quarter sales variability can be expected due to the nature of our business and potential fluctuations associated with the impact of the pandemic.
As Kathleen mentioned, however, we're very encouraged by the fact that home care referrals for the full year and fourth quarter of fiscal 2021 exceeded pre pandemic levels.
Gross profit increased 24% to $6.9 million or 73, 2% of net revenue in Q4 fiscal year 2021 from $5.6 million or <unk> 81, 3% of net revenue in Q4 of fiscal 2020.
The increase in gross profit dollars resulted primarily from the increase in home care revenue.
The decrease in gross profit as a percentage of net revenue was driven by higher warranty costs related to the inclusion of new components in the warranty reserve.
Costs associated with the discontinuation of our FY 'twenty 100 device in the United States.
A lower mix of home care revenue as compared to the prior year period, and some limited product input cost increases.
We expect that our longer term gross margins will be in the mid to high 70% range.
Selling general and administrative expenses in the fourth quarter of fiscal 2021% increase year over year by $1.2 million to $6 million.
The increase in SG&A SG&A spending was primarily due to increased investments in sales and marketing head count higher compensation costs related to stronger revenue performance and increased direct to consumer marketing.
As a percentage of revenue SG&A expenses were 62, 9% in Q4 of fiscal year 2021, compared to 69, 7% in the same period of the prior year.
Research and development expenses totaled $326000 in the fourth quarter of fiscal 2021, or three 4% of revenue, reflecting our continued investment in our next generation device at a rate consistent with past recent quarters.
Operating income totaled <unk> 7 million compared to $1.3 million in the fourth quarter of fiscal 2020.
The prior year period included $9 million of government stimulus from the provider relief fund established under the cares Act, which was intended to offset losses in revenue and expenses that Medicare fee for service providers incurred due to the impacts of COVID-19.
The decline in operating income for the fourth quarter of fiscal 2021 was driven primarily by increased strategic investments in SG&A, partially offset by higher gross margin dollars, resulting from a stronger homecare revenue performance.
Net income before income tax expense totaled <unk> 6 million in the fourth quarter of fiscal 2021 compared to $1.3 million in the prior year.
In the quarter income tax expense was 250000 compared to an income tax benefit of 9000 in the same period of the prior year the.
The prior year period included a discrete tax benefit of $343000 that was recognized as a result of the exercise of outstanding stock options.
Our net income totaled $399000 or <unk> <unk> per diluted share in the fourth quarter of fiscal 2021, compared to $1.3 million or 15 cents per diluted share in the prior year period.
Briefly summarizing our results for the fiscal year ended June 32000.2021.
Revenue grew 10, 1% to $35.8 million from $32.5 million in fiscal 2020, driven by 12, 5% increase in home care revenue and a 39% increase in distributor revenue, which more than offset a 22, 6% decrease in institutional revenue and an eight 4% decline in international revenue.
Gross margins were 76, 4% compared to 77, 6% in the prior fiscal year.
Net income was approximately $2.4 million or 27 cents per diluted share compared to $4.2 million or 47 cents per diluted share in the <unk> and.
In fiscal 2020.
Now moving to the balance sheet and operating cash flow.
Our balance sheet as of June 32021 included cash of $11.9 million accounts receivable of 17 million no debt working capital of $27.1 million and shareholders equity of $32.4 million.
Operating cash flow in the fourth quarter of fiscal 2021 totaled $765000 compared to $1.3 million in Q4 fiscal year 2020.
Our cash balance increased $1.4 million during fiscal year 2021, benefiting from $3.1 million in operating cash flow and a one point or $1 million reduction in our inventory balance as we reduced excess inventory intentionally built during the COVID-19 pandemic.
We offset by a $3.4 million net increase in accounts receivable and contract assets.
The increase in accounts receivable was primarily due to an increase in the Medicare portion of our home care business, which has a 13 month payment cycle.
Medicare portion of our home care is a high quality accounts receivable and we expect this revenue to convert to future cash flow at somewhere ratios as prior period.
This concludes our prepared remarks, operator, please start the Q&A portion of the call.
Thank you.
We will now be conducting a question and answer session.
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One moment, please while we poll for questions.
Our first question comes from Kyle Bowser with Colliers Securities. Please state your question.
Great. Thank you good evening and thanks for all the updates today.
So maybe I'll start on.
SG&A line item. So it looks like you finished the quarter with 37 direct reps.
Flat with last year, but 43 is the goal.
I know, it's a tough labor market out there, but just kind of wondering what what's been the gating factor to bring on new reps and do.
Do you have any lead John the incremental six that youre, hoping to bring on by October.
Hi, Kyle Thanks for the question.
And.
So you're absolutely right, we're targeting 43 expansion territories and those have already been put in place and in fact three of those four territories were filled during July and that our fourth individual has already started.
We did add a regional managers. So now we have six regions in the country that will help us to manage that expansion.
So the we did experienced turnover, which we believed was was normal in the fourth quarter.
You can see that overall, our our ftes were up around 7% for the year and it just happened that a couple of those reps are left during during the fourth quarter and so we do have five openings right now and they are one of those as I said is one I'm sure.
That was due to turnover here in the in the fourth quarter.
Our recruiting.
Our recruiting efforts are going well.
We only opened those wrecks in.
In mid July and so we're progressing usually that can take anywhere from six to six weeks or so to get those people recruited interviewed and onboard with the notices that they have to give and so that's why we expect our by end of September early October to be in that fully staffed 40.
Three reps.
Got it that's helpful I appreciate that and.
I know part of the New initiative is to continue to grow top line sales and take market share.
<unk>.
Grow adoption within the market in general.
So with the number of direct reps flat with a year ago.
SG&A up about 20%.
I'm, just kind of thinking about profitability and where we might find some levers in the business for margin expansion.
Perhaps the new goal is just to grow the top line and to command a growth multiple just kind of curious.
How we should think about kind of a priority, whether it's top line growth or profitability.
So definitely we consider this to be that that opportunity to continue using the initiatives we've been putting in place and will this year for for topline growth.
We will remain profitable and our expectations on profitability will be likely as a from a margin percentage similar to what you've seen this past year, although through operational excellence internally we have some.
We have initiatives going on that we believe can provide.
Improvement that will impact our revenue as well as efficiencies in the business that will help offset some of those additional costs in the sales and marketing area.
We have opportunity as an example to improve our conversion of referrals to approvals and that that can help from an operational efficiencies so those as well as.
Our revenue cycle management will help with that Mike.
Mike you may have some additional comments on that I think that some.
The right way I would think about it going forward I think just to your reference on the 20% comment pilot Theres a couple big changes from where we were at the end of the year last year with some of the Covid related impacts right. I mean, we had a furlough going on at the end of last year. Our sales teams had basically come to zero commissions were much lower.
Management bonus was much lower than a lot of different reasons that we were such a big increase year over year that was a bit abnormally lower but to your point, we've continued to invest in making strategic investments during the year. Our investment in Q4 of this year was basically flat or just slightly down even to what we had in Q3.
And as Kathleen said will be will be smart about it going forward, where we're making strategic investments.
Maintaining a certain level of profitability as well, but it isn't it it's another investment year for us and we believe that's important so that we can realize that market share growth, but also the sales expansion and sales expansion is going to require investment in clinical studies as an example.
Got it that makes a lot of sense and you certainly have the capital to be able to do as well.
Just a couple more here so.
I know you plan on growing.
Faster than the home care HFC LBO market.
How fast is the market growing and then how are you winning share from competitors is it customer service the benefits of smart fast that you can highlight.
Any color here would be great.
Oh, absolutely. So how fast is the is the market growing we know from studies conducted.
And published I think in the 2014.15 range that the bronchiectasis claims for Medicare patients, we're growing anywhere from 8% to 9% annually. That's bronchiectasis diagnosis claims when it comes to HFC Wm growth, it's a bit challenging to.
Understand that.
It could be we just don't have a good number on that and so often we use the bronchiectasis patients as a default in that 8% to 9%.
But it's more challenging to get the HFC W. O year over year claims on an annual basis.
As far as how were differentiating in the market we differentiate in in two ways. It starts with our device ASP.
And our device is engineered for greater ability for a patient to take deep breaths, when they're using their device and therefore relates to feeling more comfortable therapy, and we are able to prove that in our engineered study that we published a few years ago.
And our sales group takes our device out and they have physicians try it on and feel the difference.
And we have many.
Testimonials from patients sharing that same information. We also have the want to continue to do.
Differentiate with our next generation, making it is simple to use easy to use and as light as possible since our patients want portability. They wanted to be able to take it on trips and that's exactly what we're emphasizing on our next generation product also and then the second way is really around service.
Our clinicians want us to be an extension of their office they want to trust that when they write a referral to us that we're going to treat that patient just as they would want that patient to be treated and that we're responsive and that we're able to.
Help them with any questions any concerns and be able to train them on their therapy, so that they will realize that.
That a quality of life improvement and I would add a third and that is that we do have the <unk> the.
The greatest number of published studies on bronchiectasis outcomes and those positive outcomes with our product and we do certainly use those studies as a differentiator with with those physicians from a market share standpoint.
Yeah, that's great I appreciate it and then just lastly.
Following the recent slate of.
The highly qualified board nominees from summer Sally pardon I was just wondering if you have any initial comments on that and and.
And can you talk a little bit about the timing for voting and how that will play out over the next several weeks. Thank you.
Yeah. Thank you for the question and I can appreciate that and and that you might ask that question. Kyle So members of the electro Med board and the management team have been engaged in an ongoing dialogue with summers value partners.
And the board will consider their director nominees with a focus always on serving the best interest of all electric <unk> shareholders.
And.
We'll be providing more information on the shareholder meeting in the future.
Okay, Hey, thanks, so much for all the updates I will jump back in queue.
Hey, you're welcome Kyle.
Our next question comes from James Terwilliger with Northland Securities. Please state your question.
Yes can you hear me.
Hi, James Yes, we can.
Fantastic.
First of all congratulations on a nice quarter, especially on the top line revenue and that's a very nice robust number and lots of information in the call. So at the beginning of the call you talked about the next generate if I got it correctly and that's a big if on my part you talked about the next generation product in the first half of 'twenty three.
So is that correct and then at the same time, you said that.
What you said.
Cost of goods sold would be lower so do I have that.
Thank you for the question James and you heard us.
Correctly, we plan to introduce of course, we have FDA clearance for this device.
And with FDA clearance than we planned to launch this device in the first half of our fiscal 2023 and yes based on the bill of materials in this new design.
But we have estimated that we will have a lower cost of goods sold.
Mike do you want to add anything else to that or do you think we got it yes, no I mean I think it's a good example of it's not cost cutting it's designing cost out right in a way and it's been what six seven years I wasn't around for six seven years since we launched our last product. So there's a lot of a lot of opportunity to make this significantly better for patients and significantly.
Significantly more cost effective for us and so we're really excited about the potential of this for both margin as well as on the revenue side.
No. So so I've got three questions that that derived from that and a good that's fantastic, we can engineer and save costs in the health care system.
So one you said this already has.
FDA approval.
No.
Hi.
No. We still will have to I was I'm sorry for any any confusion, but I just wanted to say that we will launch it dependent on FDA clearance.
And that's a five 10-K correct. It is a five 10-K James you are correct.
Okay.
Two questions on this or you said once you launch this device and technically did I get this correct normalized R&D after launch should kind of trend down to 2% to 3% and is there any pricing trends. When you launch. This device that is probably stable at this price increase slightly decreased slightly.
Anything on pricing and then on that R&D normalized R&D is 2% to 3%.
Yes, you're correct, 2% to 3% is what we would expect our rate to be once we get the next Gen device launched early next year and in terms of pricing James It shouldn't have any impact right, we're really subject to reimbursement codes and changes and so it shouldn't have any any substantial impact on that.
Okay and reimbursement status I mean, sometimes of course, you get a cut so on the balance sheet and you talked about this but this was one of my questions as soon as I saw the release 17 million on the accounts receivable, but you said.
Did you give a percentage how much of that is Medicare then you said the Medicare has a 13 month payment cycles. So is most of that Medicare and of course, that's a high quality payer.
Yeah. It is I would say if you look I'd say over probably 60% or more of that as Medicare I think what what I was referring to there is that if you look at the mix of our revenue over the last year compared to what it had been historically more of that is coming from Medicare last from like institutional international.
Business and it just had a longer payment cycle for Medicare, but as you said, it's extremely high quality.
Ah.
And I think that will start to normalize a little bit we'll still continue to see growth in that anytime you are growing in a business that has a longer payment cycle as we do youre going to see some <unk> growth as our revenue continues to grow but I don't think it will grow at the same rate as it did this year, just because I think our mix of Medicare will normalize a bit.
No absolutely and you've got to grow so I mean, it's a good problem to have.
I'd, rather see that going up and down even though I understand the cash flow implications. My last question is I've heard some things some rumors and I don't want to go into them here.
I don't know if you do either so this is probably a tough one.
In terms of what's happening with the competitive French you've got some large competitors while Europe.
Pure play with outstanding technology.
Are you is there anything you can talk about Thats whats happening out there from the from your competition.
No.
So we always.
Do take our competition very seriously and we do understand that we're competing against large organizations with deep pockets on the other hand that can be an opportunity as well since we are focused only on the HFC W. O. It is where we put all of our investment all of our service really.
<unk> enhancements and all of our R&D as well and so I have not heard anything recently that has concerned me from a competitive standpoint, we do run into the competitors as you as you can imagine in our clinics and the hospital systems, but haven't heard anything right now that is.
Concerning and I believe with with our growth initiatives and our balance sheet that we have we're in a really great position to continue to take share and continue to go deeper into the clinics that we have and with our clinical studies I think there's an opportunity to expand this market.
Right.
All right I'm going to jump back in queue. What I heard was actually very positive for you or is more of a distraction to the other to the other.
Your competition due to their size, but either way it keep up the good work you're doing a good job growing the business take care. Thank you.
Thank you James.
Thank you and that concludes today's question and answer session I'll turn it back to Kathleen Scarlett for closing remarks. Thank you.
Thank you all for participating on the call. This afternoon, we will be participating in the colliers institutional Investor Virtual conference on September nine and will remain accessible for one on one calls please reach out to our Investor Relations firm equity group. If you are interested in scheduling a follow up call we look forward.
To reporting back to you in November when we will release, our first quarter fiscal 2022 financial results.
Have a good evening and stay safe.
Thank you. This concludes today's conference all parties may disconnect have a great day.