Q3 2021 Proto Labs Inc Earnings Call
Greetings and welcome to the Proto Labs third quarter 2021 earnings conference call.
At this time all participants are in a listen only mode.
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.
A reminder, this conference is being recorded.
And it's now my pleasure to introduce your house.
And Schumacher Vice President of Investor Relations. Thank you Dan you may begin.
Thank you Paul and good morning, everyone.
With me today are Robert Dor photo Labs, President and Chief Executive Officer, and John Way, our Chief Financial Officer.
This morning, Proto labs issued a press release announcing its financial results for the third quarter ended September 32021.
The release is available on the company's website. In addition, a prepared slide presentation is available online at the web address provided in our press release.
Before we begin I would like to remind everyone that our discussion will include statements relating to future performance and expectations that are or may be considered forward looking statements and subject to many risks and uncertainties that could cause actual results to differ materially.
<unk> from expectations.
Please refer to our earnings press release, and recent SEC filings, including our annual report on Form 10-K for information on certain risks that could cause actual outcomes to differ materially and adversely from any forward looking statements made today.
The results and guidance, we will discuss include non-GAAP financial measures consistent with our past practice. Please refer to our press release and the accompanying slide presentation at the Investor Relations section of our website for a complete reconciliation of non-GAAP to GAAP results now.
Now I'd like to turn the call over to Rob.
Sure Rob.
Thanks, Dan and good morning, everyone.
Thank you for joining us today for our third quarter 2021 earnings Conference call.
We are currently operating in an unprecedented environment.
The effects of the Covid pandemic, resulting in labor material and equipment charges worldwide.
Furthermore, in Europe, where management changes and trademarks due to Brexit.
These factors are impacting our financial results.
Although our third quarter revenue was within our guidance range.
Earnings were below our expectations.
Well documented labor and material shortages are driving inflationary pressures in our business, resulting in lower than expected gross margin performance.
We are disappointed with our third quarter earnings performance and I will outline the actions we are taking to address these headwinds.
But first I'll summarize our third quarter revenue performance.
Yes.
And the presence of these challenges I mentioned, we generated record quarterly revenue of $125 million representing year over year growth of 17%.
Hubs contributed $9 million of revenue in the third quarter, representing strong year over year growth of 35%.
Hubs third quarter revenue was relatively flat sequentially, primarily due to challenges in the European market and a short term decrease in organic online search performance.
In May we transitioned the <unk> hubs brand to simply hubs.
To more accurately reflect the broader nature of services provided beyond three D printed.
This brand change caused a temporary decline in customer acquisition and impacted our third quarter revenue.
Although this branding shift impacted our near term results. We believe it is the right move for the long term success of the business.
Continuing with our third quarter revenue performance by geography outlined on slide eight.
Our largest region the Americas generated revenue of $100 million in the quarter representing growth of 17% year over year.
Our 11% organic growth.
This represents all time record revenue for our legacy business in the Americas.
This strong growth demonstrates the continued customer evolution of digital manufacturing and the large opportunity that is ahead of us.
In Europe third quarter revenue of $22 million represents growth of 17% year over year.
Excluding hubs Europe revenue and the impact of foreign currencies, our Europe revenue declined 7% year over year, reflecting continued supply chain constraints, which are negatively impacting the European manufacturing environment.
Lastly, our Japan region generated $3 million of revenue in the third quarter.
As we move to earnings.
Third quarter non-GAAP diluted earnings per share of <unk> 35.
Earnings came in below our expectations driven by lower than expected gross margins.
The labor shortage resulted in greater than anticipated wage inflation increased overtime and increased recruiting costs for our manufacturing workforce.
In addition, we continue to manage through internal inefficiencies, resulting from the launch of our Proto labs, two <unk> systems.
The labor shortages and supply chain issues impacting our financial performance are likely to persist through the remainder of the year and into 2022.
We had to address our near term challenges, we are taking several measures including.
Thoughtful pricing changes to offset labor cost inflation.
Investing R&D resources to increase internal operating efficiency and the prototypes to point out environment.
And investing in robotics automation to reduce the need for additional labor to support growth.
These near term actions may not all have immediate impact on our financial results and the benefits may be muted in the fourth quarter due to lower seasonal revenues continued macro weakness in Europe and additional costs incurred during the holiday season.
While it may take some time to achieve the financial benefits. We're confident these are the right actions to improve the financial performance.
In addition to improving our results in the short term. We also remain focused on long term growth and capturing the opportunity that is in front of us.
The contract manufacturing market is very large and it is.
Balding and becoming ever more digital and customers are seeking alternatives to address the supply chain challenges they're facing.
We created the E Commerce model for custom manufacturing over 20 years ago, and we're still the only company to digitally manufactured parts across a range of services, both additive and traditional.
Through our in house digital manufacturing process, we've eliminated much of the upfront cost and labor through the automation of nonrecurring engineer.
Unlike others that have applied a digital face to traditional operations. Proto labs is the only company to have transformed the actual manufacturing processes, enabling us to be the fastest and most reliable custom parts manufacturer.
Proto labs is the world's leading provider of digital manufacturing services, having manufactured approximately 400 million parts since our founding in 1999.
Making us the largest player in the space by far.
Furthermore, we serve hundreds of thousands of customers ranging from entrepreneurs startups to midsized firms.
And over 85% of the Fortune five companies Fortune 500 companies in our target industries.
As recognition of our best in class digital manufacturing capabilities and industry leadership, the World Economic Forum announced our introduction into the World Economic Forum's Global White House network, recognizing our industry, leading efforts to implement fourth industrial Revolution technologies.
<unk> joins this exclusive network is one of only candlelight house manufacturing facilities in the United States and.
And we shared the honour was fortunate 500 companies like Johnson <unk> Johnson, Procter <unk> Gamble, Unilever, Western digital and Schneider electric.
Our U S injection molding facility was inducted into the World Economic Forum network because of our transformation from a prototype provider to a full production provider through technologies connecting our ecommerce experience to the manufacturing shop floor.
As a technology driven manufacturer, we provide injection molding production lead times and as fast as one day instead of the traditional two or three months.
This recognition is a reflection of the innovation and capabilities throughout the entire digital thread that is intrinsic to our model.
While our award winning internal manufacturing capabilities offer unprecedented speed, we acquired hubs in January to broaden our offerings and serve more customer use cases.
Hubs premium network of manufacturing partners will allow us to broaden our pricing and lead time options as well as offer capabilities outside of our legacy part envelope.
Including larger parts tighter tolerances increased finishing options and much more.
The combination.
<unk> of Proto labs' internal manufacturing capabilities and hubs network of premium manufacturing partners is a superior model together, providing the broadest set of manufacturing capabilities and lead times in the world.
Looking forward we.
We will continue to make investments in the business focused on capturing the long term opportunity guided by our three priorities.
As a reminder, those priorities are first to create a world class customer experience for digital manufacturing.
Second to expand our portfolio of customer offerings to meet the broadest set of customer needs and third to further invest in our employees.
We have made significant progress on all three priorities through the first nine months of this year.
While continuing to set quarterly revenue records.
As it relates to our goal of providing a world class customer experience, we launched <unk> two points to deliver our new e-commerce experience in the Americas in the first quarter.
Customer response to the new platform continues to be positive and recently.
Revamped digital platform was honored with a first place finish in the software category of design rules 2021 leadership and Engineering Achievement Program Awards.
This is a testament to the fantastic development work our teams have done over the past few years designing a best in class digital quoting and ordering user experience.
However, as I referenced earlier prototypes to point out has impacted our internal operational efficiency.
We're focusing our software teams on addressing our internal systems to improve their performance.
Next.
Our customer offering is greatly expanded in 2021 through acquisition and organic innovation.
Hubs manufacturing partner network allows us to serve more customer needs and organically, we launched a flexible lead time offering and our internal CNC machining service as well as an enhanced quality offering for injection molding production offers.
These new offerings contributed to record revenue in the third quarter, and we will continue to invest in future offering expansions.
Finally.
Proto labs employees drive our success and we continue to invest in our employees in several ways we.
We invest in training and development and developing employees to fuel innovation and challenge employees to continually enhance their skills and.
In 2021, we materially expanded our training content and resources with a focus on remote learning to support our flexible workforce.
Our diversity equity and inclusion leadership Council partners with our leadership team to help us leverage the diversity of our workforce in a meaningful way and create a culture of inclusion for all employees.
Yes.
Now John will provide an in depth look at our third quarter financial performance and our outlook for the fourth quarter.
John.
Thanks, Rob our detailed third quarter financial results begin on page 11 of our presentation.
As Rob said there are a few factors impacting our current financial performance I'll spend some time, providing additional detail on these factors.
Starting with revenue our third quarter revenue of $125 $3 million was at the low end of our guidance range and represents a 16, 6% year over year increase or eight 1% organic growth in constant currencies.
Hubs generated $8 $8 million in revenue in the third quarter, representing growth of 35% year over year.
Changes in foreign currency had a $400000 favorable revenue impact in the quarter.
As Rob mentioned earlier, our revenue in Europe was lighter than we anticipated driven by supply chain interruptions.
Impacting the economic environment.
We serve 23450 unique product developers in the third quarter up 24, 8% year over year.
This growth was driven by the acquisition of hubs and growth in our legacy business the growth in developers outpaced revenue growth due to business mix with strong growth in our CNC services.
Turning to our detailed income statement, our non-GAAP gross margin in the corner of 44, 9% compares to 46, 8% in the second quarter of 2021 and was below our guidance range.
Our personnel costs.
The primary driver of our lower gross margins.
The labor shortages in the markets, where our manufacturing operations are located in are driving inflationary costs in the form of higher wages increased recruiting costs and increased overtime.
In addition, we are incurring some additional labor due to inefficiencies as our employees continue to adapt to operating in our new systems.
Medical cost is also a contributing factor as our employees are obtaining care that was deferred during COVID-19.
The higher personnel costs combined with lower revenues than expected in Europe resulted in gross margins below our expectations.
Yeah.
Hubs starts margin third quarter improved sequentially to 17, 2% up from 12, 9% in the second quarter.
For the quarter hubs referenced by another 200 basis point headwind to our overall gross margin due to the lower margin nature of the outsourced manufacturing model.
Under GAAP accounting or cost of goods sold for hubs includes payments to our manufacturing partners logistic costs and operations and support costs associated with serving our manufacturing partners.
In the long term, we will continue to drive gross margin improvements and hubs through the expansion of our manufacturing partner network and improvements to the pricing algorithms.
However in the near term, we are encountering headwinds related logistics labor and material cost inflation.
Our total non-GAAP operating expenses were $43 6 million compared to $42 $8 million in the second quarter of 2021, and slightly below our guidance range of $44 million to $46 million.
Third quarter 2021, non-GAAP operating expenses increased from $33 $3 million from the third quarter of 2020.
The hubs acquisition added $3 $8 million of operating expense in the quarter.
Other year over year increases include Proto labs, two point OEM explanation and license costs of $1 $9 million investment in R&D of $1 $7 million.
And the investment in sales and marketing of $2 million.
Consistent with the prior quarter, our GAAP operating expenses include the impact of the revaluation of contingent consideration associated with the hubs acquisition.
GAAP accounting requires that we revalued the contingent consideration on a quarterly basis until the contingent consideration period concludes.
The third quarter adjustment was primarily driven by fluctuations in our stock price as a portion of the contingent consideration is payable in equity.
We have reverse the impact of the revaluation in our non-GAAP reporting.
Moving to taxes, our non-GAAP effective tax rate in the third quarter was 25, 3% compared to 26, 7% in the prior quarter and up from 22% in the third quarter of 2020.
The year over year tax rate increase is primarily due to the mix of earnings and our tax jurisdictions, resulting in fully reserved net operating losses.
The net result was non-GAAP diluted earnings per share in the quarter of 35.
Representing a 32 per share decrease from the prior year and a sequential decrease of <unk> <unk> per share.
The year over year change in non-GAAP earnings per share is presented on slide 13 and consisted of the following components.
First the net impact of our revenue growth and the increased labor costs in our legacy business resulted in lower gross margin contributing a 6% reduction in our earnings per share.
The lower than anticipated gross margin was the primary driver of earnings below our expectations.
As we continue year over year increase sales and marketing and general and administrative expenses, primarily driven by personnel related costs, including wage inflation incentive compensation and medical costs had a $5 10 per share impact.
As Rob stated we are investing in the business to better serve our customers, which will drive long term growth and shareholder value. In these investments were part of our business plan and had a <unk> 20 per share negative impact on our financial results this quarter compared to the third quarter of 2020 the.
The investments include the following.
First we acquired hubs to fulfill a broader range of our customers' needs.
We are continuing to invest in the business to operate at scale and are currently incurring operating losses. During this stage. The operating results related to this investment represents a 910 per share impact to earnings including the impact of the equity issued in conjunction with the transaction.
Next we have discussed the investment in our systems in prior calls.
This investment was required to modernize our architecture and support the long term growth of our business. The depreciation and then license costs associated with prototypes to point you know represented about <unk> <unk> per share impact year over year.
We also continue to invest in R&D to improve our systems and expand our product offering to serve our customers.
Private labs to Plano has been well received by our customers Karbon our system requires improvements to support the efficiency of our internal operations.
We are also investing in R&D to expand our capabilities in each of our services our increased investment in R&D resulted in a <unk> <unk> per share decrease.
And finally, the increasingly effective tax rate had a <unk> <unk> per share unfavorable impact on the quarter.
Transitioning now to the cash flow statement and balance sheet summarized on slide 15.
We generated $11 $5 million in cash from operations in the third quarter, our operating cash flow continues to be impacted by the timing of cash receipts and payments, resulting in an increase in our working capital.
Including an increase in our accounts receivable balance.
We also repurchased $11 $8 million under our stock repurchase program in the quarter.
On September 30, our cash and investment balance was $83 9 million and.
And our balance sheet remains debt free.
Turning now to our outlook for the fourth quarter of 2021 outlined on slide 17.
We expect to generate revenue between 112, and a $122 million in the fourth quarter, representing year over year growth of 7% to 16%.
Our fourth quarter revenue assumption includes the seasonality, we generally experienced in our business in the fourth quarter and anticipate continued softness in the European economic conditions.
We expect foreign currency to have an approximately $500000 favorable impact on revenue compared to the prior year, assuming foreign currency rates remain at current levels.
Turning to gross margin, we expect fourth quarter non-GAAP gross margin of approximately 45% plus or minus 100 basis points.
Our gross margin projection remains in line with third quarter results as we anticipate continued wage and raw material cost inflation, which are working to mitigate through pricing and other operating efficiencies the.
The benefits of these actions will be offset by incremental costs, we will incur in the fourth quarter as a result of holiday pay.
Business mix will also continue to be variable and our gross margin performance due to the addition of hubs as the outsourced manufacturing model gross margin is lower than our internal manufacturing operations.
We expect total non-GAAP, selling general and administrative expenses to be between 43% and $44 million in the fourth quarter consistent with recent quarters.
We estimate our fourth quarter non-GAAP effective tax rate to be approximately 11% compared to 25, 3% in the third quarter.
The lower tax rate is the result of the anticipated release of uncertain tax position reserves for which the statute of limitations has expired.
Now I'd like to turn the call back to Rob for closing remarks.
Thank you John.
In summary, our financial performance is currently below our expectations.
We're actively working to drive near term financial improvement, while we continue to invest and innovate to maintain our leadership position and capitalize on the long term opportunity.
I am confident that Proto labs has the best employees in the industry. The most recognizable brand in the best long term strategy to expand our customer offerings and drive strong profitable growth.
The two awards that we've received in the quarter from the World Economic Forum and design World recognized our leadership in digital manufacturing.
Our speed scale and manufacturing experience put us in an optimal position to lead the digital manufacturing evolution.
That concludes our prepared remarks, John and I will gladly take your questions.
Operator can you please open the line.
Thank you we will now be conducting a question and answer session I would like to ask a question. Please press star one on your Philippines.
Pat.
Confirmation tone will indicate that your line is in the question queue.
Please press star two if you would like to remove your question.
Reported.
Equipment, it may be necessary to pick up you're seeing cyclical question historically.
One moment please poll for questions.
Yes.
Thank you. Our first question is from Brian Drab with William Blair. Please proceed with your question.
Good morning, Thanks for taking my questions.
Morning, Brian Brian.
Good morning, I don't know if you mentioned it might have just missed the missed.
Missed this but the three D printing expansion that you announced about a week ago, a few days ago.
Can you.
Talk about what youre seeing in the <unk> printing industry.
Giving you the.
That's making you wanted to invest in expanding that what's the cost can be with the timing and how big is it I think youre a facility in North Carolina Carolina right now is about 80000 square feet and Youre, adding a 120000 so.
Yes.
Seems like a pretty big expansion I was wondering if you can just comment on that thanks.
Okay.
Yes.
We're really in the initial stages of that.
Have any been broke ground on.
The facility.
So we've contracted essentially to have that facility built.
And in the three D printing market, it's been growing nicely since since the acquisition really in back in 2014, and we continue to see a lot of opportunities in the <unk> printing space.
With with that demand and as it transitions from just prototyping into more production opportunities, we see tremendous opportunity.
So we are investing in order to realize that.
It will take.
A year or so.
<unk> to construct that facility.
And we will be online sometime in 2023.
And with that.
Correct.
Starting with production, we expect greater needs for space.
Right and the revenue capacity of the existing facility I guess, I mean, I guess youre approaching that I mean, youre going to do about $75 million and three D printing.
New this year is that running pretty close to full capacity.
We're projecting it.
It will be by the time that the.
The facility is completed and we have to we have to plan ahead. So yes.
Right.
And then just.
Wondering if you could just comment on <unk>.
Mentioned.
Creasing, selling and marketing expense and.
Just in the context of this.
The industry, becoming more competitive.
There's a lot of companies spending a lot of money on Google Adwords and.
Can you comment on what Youre seeing there and how competitive that is how much of it.
Challenge It is kind of to keep pace with all of these.
Is N CNC and to a lesser extent three printing right now.
Yes.
It is it is impacting our sales and marketing and cost of acquisition.
Think we continue to deploy innovative solutions and other methods in order to attract new customers, but certainly.
Cost of search.
Has increased over the years searches got some more active.
Okay and then my my last question, if I couldn't just around pricing trends in the raw materials.
How how are you managing through this and how how big a deal is this John you and I discuss some but you know the.
Hey, Hey, you have the competitive environment, resulting in the need to experiment with pricing a little bit more particularly in C. N C.
And then you know B you have these raw materials that are spiking.
And then you know just as I guess see I I'm thinking about also how in your parts business and injection molding.
You you you have some.
Think fixed pricing there that you that you promised the.
People, if they come back for parts off existing malls like how how does that all.
You know how do you manage through that in this environment I don't know if you've seen this kind of a confluence of negative events.
Events or challenges in the past.
I think you you hit it right on the head right like there are a lot a lot of variables were playing with.
Different materials have different levels of of price inflation as well.
As another factor there I think as we're looking at it and looking at our cost structure try to break it down to what are.
Probably more permanent or long term type increases in cost and those we will look to recover with pricing and what are the ones that are more temporary and how do we absorb or manage those out of the business related to it.
And flex related to that but.
It is it's a.
A delicate balance and as much art as it is higher.
Brian you brought up material cost headwinds, which I think are are real.
But in addition, as we've described in the quarterly saw flavor.
Wage increase headwinds as well so I think on both of those for those that are that are longer term, we will be taking.
Pricing actions in order to offset those.
Okay. We can take enough in this past quarter, we underestimated that change and we will be taking more.
Got it okay. Thank you.
Thank you. Our next question comes from Greg Paul with Craig Hallum Capital to proceed with your question.
Yeah. Thanks, This is danny ever John for for Greg Today, and thanks for taking the question.
Good morning.
I was hoping to dig in a little bit more on the on the 2.0 and efficiencies and maybe go into a little bit more on that is that something is that a problem with.
Specific to the platform or is it simply just integration and adaptation.
By your employees and would that be out like a sales level or manufacturing level, just hoping to dig in a little bit more of their.
Absolutely so.
We launched we launched 2.0 earlier in the year and we expected that there would be.
Things that we have to work through with a large systems launched like that both for customers to adapt to using the new system. After our employees to adapt to using the new system.
And.
That's what we saw and we worked through that with customers that work very well and they are very happy with it now with employees.
We made headwind, but we're seeing some of those inefficiencies persist and so that's a real focus for US now as we've changed some of the workflows for our employees and in some cases those workflows are less automated than they were in 1.0. So we're addressing that head on we've got.
We're working with.
The business leaders in those areas and the subject matter experts, we've identified the areas and the workflows that.
Where those inefficiencies remain and we're targeting our software teams specifically to address those to drive those improvements.
Got it.
And is it safe to say that hubs is still operating separately from the core business.
Yes.
Yeah. So.
If I can that gets it gets pushed down the line a little bit as you're working to improve the 2.0.
Yes, that's exactly right so.
Recall the timing.
We did the acquisition of hubs and launched 2.0 within a few months of each other right. We launched 2.01st in Europe in November and then in the U S. In February we did the house acquisition in January.
So at the time.
Right, we indicated that our intent was to offer that comes as a stand alone entity for a period and that's what we've done this year kind of consistent with that.
We want to make sure that when we integrate them.
We're integrating them into.
2.0 in a place where it's where it's efficient and we're integrating.
Hubs into that that efficient system. So you.
You got it right.
Got it makes sense, maybe just one more I'm looking at the current supply chain environment.
Think it's something that could drive more business to to your platform as a result of the Reshoring the second sourcing so on.
Have you seen any indication of new customers or activity, resulting from us.
Yeah, we have been we've talked about our injection molding.
Service in particular on the park side of the business, how we're seeing increased demand and and.
And so that we attribute a lot of that too exactly those effects.
Got it thanks, that's all for me.
Thank you. Our next question comes from Gareth name on with Ehrenberg. Please proceed with your question.
Hey, good morning, guys. Thanks for taking my questions.
First question.
You you guys mentioned investing in robotics, and automation and I know you already do some of that so I'm just I'm wondering you know this new tech, where you're investing and is it is it <unk>.
<unk>, what what might the timeline look like there and then how you are thinking about how much it might cost us any color you can provide on that.
Sure.
Two.
Improve our gross margins bread, there's a couple of things we're doing one is pricing, which we've already talked about and the others efficiencies and the efficiencies come in two forms one is workflow efficiency.
Which our software teams are helping to drive and I, just kind of describe that and the second is.
Production floor.
Fish, NC and automation right and that's going to come from the work of our software teams and from additional robotics and other kinds of automation that we're exploring.
And it started to put in place on the factory floor and these are things that.
Help us to scale, our operations without needing to add incremental labor at the same rate.
That demand is scaling so.
We've gone to put those in place and we're looking at a number of different solutions there.
Okay. So this is kind of a combination of adding some to your existing facilities and then also from reinvesting in more for that new North Carolina expansion.
Yeah, I think it's smart in in the existing operations and.
That increase in production in our injection molding.
Rouse us to.
Research and look at new opportunities to use.
Robotics and things like that and in the process. So that's where the focus is.
Got it okay. Thanks, and then I was wondering if you guys just touch a little more on the European business. It seems like this.
This obviously impacted.
Kind of the base business, but also had a pretty big impact on hubs I'm. Just wondering if you could kind of touch on how.
The factors are your and then how big they are relative to each other.
So we can kind of estimate what might happen there.
Yes, I think in general, we're just seeing macro softness in Europe over this period.
And.
And demand generally softened.
We saw that consistently in the organic business and and hubs.
Okay, Great and then one more for me.
If I can I know you guys.
You called out kind of specifically in the press release that 84 million in cash and investments with no debt.
I'm just wondering if you can elaborate on any near term plans you have for that capital I know you did some some repurchases but.
Kind of looking forward is going to be more of that or or anything different what are you guys thinking there.
Yeah, I don't think.
Hard capital allocation changes.
We will continue to invest to support the growth of the business.
And.
Too opportunistic share repurchases.
Great. Thanks, guys.
Thank you.
Mhm.
Thank you no further questions at this time I would like to turn the floor back over to Robert <unk> for clothes in Kabul.
Thank you for joining us on our third quarter conference call, we're not satisfied by our financial performance in the quarter and are taking actions to drive improved results.
I remain very confident in our long term strategy and I'm pleased with our record revenue this quarter in the presence of supply chain and labor shortages.
We have the winning model to capture the tremendous opportunity in the market for digital contract manufacturing.
To drive long term shareholder value, we will continue to evolve are world class customer experience traditional manufacturing expand our portfolio of offerings to serve customer needs and invest in our employees.
Furthermore, I'd like to thank the progress employees for their continued efforts as we close out 2021.
I also want to thank our shareholders for their continued support prolapse, we look forward to updating you on our performance next quarter.
Have a great day.
This is very confident may disconnect. Your lines at this time. Thank you for your participation.
Have a wonderful day.
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