Q3 2021 CareMax Inc Earnings Call
Greetings and welcome to the Coeur Max Inc. Third quarter 2021 financial results Conference call. At this time, all participants are in a listen only mode.
We've cough, Washington 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 Devin Sullivan Senior Vice President of the equity group. Thank you. Mr. Sullivan you may begin.
Thank you operator, good morning, and thank you all for joining us for Carmax as third quarter earnings call.
During the call we will be discussing certain forward looking information.
These forward looking statements are based on assumptions and assessments made by care matches management in light of their experience and assessment of historical trends current conditions expected future developments and other factors they believe to be appropriate.
And forward looking statements made during this call are made as of today and <unk> undertakes no duty to update or revise such statements whether as a result of new information future events or otherwise.
Important factors that could cause actual results developments and business decisions to differ materially from forward. Looking statements are described in the company's filings with the SEC, including the section entitled risk factors.
In today's remarks by management, we will be discussing non-GAAP financial metrics.
Reconciliation of these non-GAAP financial metrics to the most comparable GAAP measures can be found in this morning's earnings press release.
With that said I'd now like to turn the call over to Carlos to solo CEO of Carmax Carlos. Please go ahead.
Thank you Devin good morning, and thank you all for joining us I'm proud to report that we had a solid third quarter of continued revenue growth sequential I mean, our reduction operational developments and overall progress towards our 2022, New de Novo go we believe our strong growth while still maintaining a best in.
S. M. A R is a testament to our team and our model.
By utilizing our whole person health care clinical program and are deeply integrated proprietary build point of care technology platform care optimize our physicians and care teams truly partner with our members to improve health outcomes and overall wellbeing. We do this by working in some of the most challenge neighborhood.
Many of which are otherwise health care deserts.
With patients with significant barriers to care our model truly does well by doing good I would like to thank each and every one of our team members for their dedication to improving our patients' lives for the third quarter of 'twenty 'twenty. One we achieved GAAP revenue of $105 million up 330% from the third quarter of <unk>.
20 <unk>.
Pro forma for the acquisition of D. N F from the beginning of the period, our revenue for the third quarter would have been $115 million or $460 million on an annualized basis or.
Our third quarter GAAP net loss was $2 $90 million, bringing our year to date GAAP net loss to $8 9 million. Our adjusted EBITDA was $1 2 million for the third quarter and $9 1 million year to date pro forma for the business combination total membership as of September 30th 2021 was about <unk>.
68500, and Medicare advantage membership was approximately 26500 up over 10 times and three times, respectively compared to September 30th Twenty-twenty.
We are on track for our previously guided run rate performance metrics that Kevin will discuss.
Yeah.
In September we finalized the acquisition of DNF medical centers in Central Florida.
DNF brought to the care Mike's family approximately 4000, Medicare advantage patients across six high end medical centers.
We are well underway with unifying the brand services and operating model across all of our medical centers to continue to drive maximum outcomes and shareholder returns on these investments.
Like many we experienced a rise in COVID-19 admissions among our Medicare patient base in the third quarter, which peaked in August fell in September and showed continued reduction in October. However, as you can see on page 10 of our posted slide presentation. The peak in August was lower than in prior waves, a testament to our ability to.
Vaccinator members and still good preventative practices and identified cases early to prevent hospitalizations.
We are encouraged that we are reaching the end of the delta waves of COVID-19, and based on the publicly available data our core market of Florida has now among the lowest case and positivity rates in the country.
Despite the continued impact from Covid during the third quarter, our clinical model continues to perform well for the quarter, we recorded a healthy 75.4% medical expense ratio or M. E. R.
Normalizing for direct impacts from Covid or Ami or would have been in line with historical levels. We also have line of sight to bringing newly acquired assets to this level of performance as well.
In addition, our internal results show that the third quarter external provider costs and absolute dollars P. M. P. M were in line with Q3, 'twenty 'twenty and ex Covid would have been down year over year and sequentially.
If you recall from our Investor day, we showed our ability to drive N E. R by patient cohort down by 47 percentage points over three to four years on page six of today's presentation. You can see that's not just a percentage of M. A R reduction, but also a roughly 40% medical cost P. M. P M reduction.
Over that period.
A 14% average decline per year.
We think these results are a powerful validation of our technology enabled care delivery platform, which provides the ability to control dollar cost in the face of a pandemic by improving patient outcomes and speaks to where we are where our priorities are as a company.
Fundamental to our clinical success is our whole person health care value based care system, and our homegrown and deeply integrated technology platform care optimize.
As I have discussed previously our whole person health model goes beyond just the clinical needs of our members to solve problems arising from social determinants of health, such as education, and axis isolation and medication adherence. We do this through our highly coordinated care management program that uses data from across our.
Members encounters with our providers and it provides our care teams with the tools to effectively coordinate the care and needs of our members and a truly differentiated manner, improving the wellbeing of our members and preventing highly acute hospital admissions.
It is worth noting care optimize has been successfully commercialized outside of care Max and is used by over 2000 clients and more than 20000 providers across the U S. This broad market adoption of care optimize that speak to the powerful tools. It provides providers to practice medicine without undue administrative burdens and empower them to make more.
<unk> informed clinical decisions.
Next I would like to provide an update on our operational initiatives.
We have now captured about half of the previously announced combination synergies with IMC, primarily driven by SG&A savings and pharmacy utilization.
The SMA and DNF integrations are moving along smoothly and the team is moving ahead on executing our value creation strategy.
Additionally, we're optimizing our platform for accelerated growth in 2022 to hit our de Novo targets and with that we have brought in several key new management hires to lead our regional operations.
We believe we have built in the human capital Foundation to execute on our growth plans and plan to continue to simultaneously add depth to our local and regional corporate teams to support further expansion.
Similar to many other companies across the country, we are experiencing a tightening in the labor market and entry level positions. While we are seeing some wage inflation. It remains limited to lower wage positions and we have been able to successfully navigate through this we continue to have a pipeline of physicians interested in joining our platform.
As a differentiated care model is a big draw for professionals, who want to make a holistic impact on patient's wellbeing.
Moving to the additional strategic initiatives as mentioned during our Investor day in September we have been impressed by the amount of inbound interest from those looking to collaborate with us to improve outcomes and deficiencies in the health care system, we have announced and highlighted two of these the related companies and anthem the related collaboration.
Just the opportunity to work closely with one of the largest owner operators of affordable housing in the U S. Our vision is to bring <unk> vertically integrated whole person health care model directly to affordable housing communities, providing convenient access to care to those seniors who need it the most.
We have proven that this model of collaborating with affordable housing communities can be a mechanism for growth with one of our South Florida Medical centers. We opened in 2017. This center that we opened in the ground floor of a retirement community experienced the fastest ramp to membership maturity of any of our centers through our collaborations.
With related we plan to take this model to communities across the country to expand convenient access to value based care.
We also announced our strategic collaboration with anthem to open up 50, new de Novo medical centers across eight initial states. We are pleased to say that the collaboration is going smoothly and ahead of schedule.
Anthem has long been a key partner.
For us and we are excited to expand our relationship with them to provide quality care and superior outcomes for their members throughout the country.
In addition to these two important strategic collaborations we continue to work with our other payer partners to assist in our collective goal, bringing the best in class medical care to underserved communities.
Our patient acquisition strategy is based on grassroots marketing through community events and our in house sales and marketing team.
Lastly.
We announced in July our guidance of opening up at least 15 de novo's in 2020 to approximately 25, and 2023 and approximately 35 in 'twenty 'twenty four we have already executed leases for 12 locations across Florida, Tennessee, Louisiana, and New York with five other leases nearing completion.
Furthermore, we are reiterating our expectation to end the year with our previous run rate revenue and EBITDA guidance looking ahead to 2022 we expect lower COVID-19 headwinds on the revenue and a more normalized utilization now I will turn it over to Kevin to go more in depth on our third quarter performance.
Thanks, Carlos and good morning.
Reported another quarter of strong revenues, despite COVID-19 headwind.
As a reminder, our <unk>.
<unk> third quarter financials include full quarters of Paramax, IMC, and SMA and about one month of DNI.
The nine month 2021 numbers and prior year comparisons that I'll be providing a pro forma for the business combination between care Maxon I N C. As if they had occurred on January one 2020.
You can find a reconciliation between our GAAP net income and adjusted EBITDA in our press release or earnings presentation.
As Carlos mentioned total reported revenue was $105 million for the third quarter and $285 million for the nine months.
We reported GAAP net loss for the quarter $2 $9 million, bringing our net loss for the nine months to $8 $9 million.
Adjusted EBITDA for the quarter was $1 $2 million, bringing adjusted EBITDA for the nine months to $9 $1 million.
Excluding the estimated impacts of Covid, our Q3, adjusted EBITDA would have been $8 $5 million and $27 $6 million year to date.
Medical expense ratio, which equals external provider costs divided by Medicare and Medicaid risk based revenues was 75, 4% in Q3.
Well it would have been in line with historical levels after normalizing for direct COVID-19 impacts to revenue and external provider costs.
Beneath the Covid noise.
We feel good about the underlying medical performance of our business.
Our internal Q3 P M P M external costs.
Adjusted for Covid or in line with Q3 2020.
Nine month internal P. M. P M costs were lower than the prior nine month period in 2020.
This gives us confidence in our ability to manage challenging populations and arguably the most challenging environment our industry could ever faced.
Now, let me share some observations regarding COVID-19.
We are encouraged by Covid trends in our geographic footprint.
Today, According to public data, Florida has the lowest cases per capita of all states and the sixth Louis Covid hospitalization for capital.
Might record Covid hospitalizations across Florida in August.
Total Q3, Covid it nations among our Medicare patients.
Half the numbers, we experienced in Q1 of this year.
Our care teams have done an outstanding job with vaccination education, and social distancing to prevent major outbreaks at any of our centers.
And as a proxy for the cost for Covid at Mission Hospital inpatient days in Q3 were also down about the same percentage as admissions from Q1.
<unk> seen relative stability in acuity and costs for carrying of Covid Medicare Covid patients.
Although COVID-19 claims were in line with patients.
Although coal although COVID-19 claims among our patients continue to decrease we continued to see top line headwinds as the 'twenty 'twenty. One revenue is based on 2020 dates of service and will not change until 2022.
However year to date P. C. P in person visits and coding revaluation rates among our Medicare members have recovered to pre COVID-19 levels, even exceeding overall visitations for the full year of 2020 already.
This tells us that we are documenting the acuity of our members more appropriately.
Giving us confidence in recapturing risk adjustment revenues for next year.
In addition, we continue to invest in our platform capabilities ahead of our plans and Novo center openings beginning next year, we've on boarded two regional market President and continue to build our construction and marketing capabilities at.
At corporate we've added a new Chief compliance Officer General Counsel, and Chief experience Officer, and we anticipate continuing to add business development resources in our new markets.
These goals will help manage payer and provider relations.
<unk> positions and tuck in opportunities conduct grassroots outreach efforts and operationalize, our whole person health care model.
At the same time will be we will be disciplined about balancing platform investments with operational efficiencies. We've captured about half of the previously communicated synergies related to the combination of Carmax and AMC and expect to execute on the remaining half in the coming months.
These synergies have helped partly offset some of the public company costs like D&O insurance that had been higher than expected prior to the completion of our business combination.
In addition, we are targeting a capital efficient approach to opening de novo's, including securing landlord financing for build outs to reduce upfront capex where possible.
Many of our signed leases already has such arrangements in place.
Regarding our capital position, we ended Q3 was $80 million of cash and $119 million of debt.
As a reminder, we also have a $40 million revolving credit facility and a $20 million delayed draw term facility. Both currently undrawn.
Basic share count of $87 million, excluding dilution from warrants an additional potential earn out shares.
Based on our capital.
Jackie capital needs, we believe our liquidity is sufficient to execute on our near term M&A pipeline and de Novo centers over the next year.
Despite the accelerated investments made in the quarter.
We are targeting the mid range of the 30 to 40 million pro forma adjusted EBITDA as an appropriate range of our run rate earnings power for the year.
Including an estimated $23 million of headwind from Covid.
Changed from our prior expectations.
This pro forma adjusted EBITDA reflects expected full year contributions from closed an unannounced acquisitions and synergies remaining to be realized.
We feel opportunistic about the growth ahead of us.
We look for the risk adjustment headwinds to normalize.
And so the overall utilization to settle back towards historical baseline.
Second we expect to maintain our strong medical margin and continuing to drive improvement in our members will be.
And third we continue to target at least 15 de novo openings in 2022.
We have a high conviction in our de Novo strategy and we'll continue to invest in our platform platform to execute against our growth goals. We look forward to providing you a more detailed 2022 outlook on next quarter's call.
What's that Carlos will give some closing remarks before Q&A.
Thanks, Kevin.
In closing I want to thank again.
All of our clinical team members, who are at the frontline continuing to battle the impact of COVID-19, and providing the care to our members that is truly changing the lives of so many.
And to our entire organization, who continue to exceed all of our expectations with their dedication to growing our business, while always keeping the needs of our members first it has been an extraordinary year and I have never seen never been as confident as I am today, and our team our model and our strategy.
Operator, we will now take questions.
Thank you we will now be conducting a question and answer session.
If you would like to ask a question. Please press star one on your telephone keypad.
A confirmation tone will indicate your line is in the question queue.
You May press star two if he would like to remove your question from the queue for participants using speaker equipment. It may be necessary to pick up your handset before pressing the star keys.
One moment, please while we poll for questions.
Yeah.
Our first question comes from the line of Josh Raskin with Nephron Research. Please proceed with your question.
Hi, Thanks, Good morning, guys.
So the first question is just on the cost of care line, the external medical our internal medical cost came in a little bit higher and so I'm. Just curious are those costs that you took on from DNF or you know.
Is there sort of a right run rate for those just as I think about it as a percentage of <unk> revenue.
Hey, Josh it's Kevin Yeah.
That's right. So we do have one month of DNS in there. So you will notice that.
That the premiums have also increased concurrently with that external provider cost I think it's also important to note that the prior periods. When you are looking at that in Q2 are really only has a stub period of SMA as well. So so now you have the full quarter of the SMA costs as well as revenue and then you have 30 days of DNA from there. So that's great.
And it is a normalized I would say that the MTR, there again normalize or for Covid.
In line with our expectations.
On the internal side, so you have COVID-19 costs pressuring the cameraman.
I'm, sorry, I'm, sorry, I thought you were looking at the external provider cost on the cost of Caroline that's right. So there's a couple of lines in there those two items, obviously that we talked about are still in there. The other component is we acquired a pharmacy in the quarter and so you'll also notice that other revenue increased pretty materially.
From Q2 to Q3, and there's a cost of care or a cost of goods sold line and that constant care, specifically for the pharmacy medication.
Oh, Okay. So we should think of those as when we think of a ratio. We should include the other revenue as well it jumped up okay, and then just thinking about sort of <unk> and 2022.
Midpoint of guidance of 35 million add back. The 23, you get to 58 is sort of a starting point for 2022.
Now, which would seem like a relatively big jump should we expect some COVID-19 costs. Other headwinds you know startup costs things like that and then you know the.
And then sort of the jumping off point for for our Q as well that you've.
You've done roughly $9 million or so of EBITDA year to date.
Obviously implies a relatively large fourth quarter I just want to make sure I'm at least getting the math right. So the starting point.
I think your math is right.
For 'twenty two like it out we're not ready quite to give guidance on that but I would say as you know.
As we bridge the 22 EBITDA, we will be starting with a number similar to what you just mentioned, which is I think a lot of math that folks are doing.
<unk> run rate plus the impact of Covid.
But yes to your point, we're gonna have investments from our de Novo strategy, we're gonna have investments in growing the core business and.
The platform.
There will be headwinds around that as.
As well so yes.
There's a lot of puts and takes so we're gonna have to model through and share with you folks, but I think that's right from our starting point.
From a Q4 standpoint, you know we're we're still looking at Q4 from a favorability standpoint, I do think we have favorability that's going to probably come through initially what we're seeing right now is that our reinsurance.
You know our stop loss as the percentage of patients that are hitting stop loss are significantly greater because of the additional costs that we had this year.
So we haven't modeled that through to that level of granularity in our projections yet.
But we do expect Q4 to be better than Q3.
Just because we're going to have the full year, the full quarter impact of DNS as well as SME.
Okay.
And our next question comes from the line of Brian <unk> with Jefferies. Please proceed with your question.
Hey, Good morning, guys. This is Jack Levin on for Brian. Thanks for taking the questions I guess.
First one I want to start out with the incremental detail you gave us on the new markets and the leases you've signed I guess, you're looking at it right, we see Memphis and New Orleans now is targeted markets can you give us a little bit about.
What makes those markets attractive or remind us why those states are priority states for you, despite not having related or anthem overlapping markets. Thanks.
Yeah, I think as we've stated in all of our other calls we were when we enter new markets, where all we're always going to enter with strategic.
Partnerships and organizations, where we feel a clear line of sight and being able to reduce the J curve.
So your anthem and related are very big part of the strategy and we're well underway with both of those strategies, but there are still other states that are that are very exciting where we have.
Similar relationships, where we feel that we can grow just as quickly. So we're going to continue to take advantage of those specific situations in.
Memphis.
In Louisiana, we are we're a couple of those markets and then we continue to do to really grow in the New York area. We've already signed one lease we've got several other leases coming underway with the related strategy in Florida.
We've got a significant amount of leases that we've already signed up and a good amount of those are going to be strategies that we do together with anthem as well as we continue to expand.
The Central Florida region and in.
In the West coast as well as northern Florida.
Okay got it that's helpful. And then the next one for me just want to make sure I'm modeling this right because I think the timing on the acquisitions may have thrown off the P. M. P. M numbers, a little bit. So just can you give a.
P M P M exit for the MA book.
Kind of coming out of <unk> and then also can you give us an update I appreciate all the color on the impact of risk adjustment. This year can you give us an update on how annual wellness checks are going in and sort of a read through to risk adjustment or P. Mpls in 'twenty two.
Yeah, Let me start with the second part of that so we are right now we've seen about 85% of our members all of the <unk>.
<unk> to where we were this time last year, we've already seen more members. This year than we had in 2020. So we feel very confident in having been able to capture the full acuity of our members for this year we're trending.
Finishing the year somewhere in the 90% to 95% of having seen all of our members and I think that gives us a lot of confidence going into 2022 being able to accurately capture that acuity, which should stabilize our revenue going forward.
Kevin do you want elaborate a little on the on the first part of that question.
I'm sorry, the first part was on the monetary policy in P. M.
Yeah, that's right I think ours looks a little bit low just.
Just based on.
The timing of the acquisition there at September 1st So if you could just give us a normalized number to project outwards on what the <unk> P. M. P. M S that'd be really helpful.
Yeah, So I think to help with that what I would do is take the you know the 26500 that we have in there. There's one month's of DNR DNF, which represents roughly 4000 patients.
And so you know if you modeled out the P. M P M or the quarter did reduce our takeaway 4000 for the first two months and then you can come up with that blended P. M. P M from there.
Awesome. Thanks, guys.
Our next question comes from the line of Jessica <unk> with Piper Sandler. Please proceed with your question.
Hi, Thank you for taking my question. So just first off to be clear on the adjusted EBITDA ramp from Q3 to Q4 and the impact of DNS and then also you guys are anticipating on and MBR improvement.
Is that sort of the basis of.
The step up.
Yeah, Hey, Jessica it's Kevin Yeah, that's correct. So historically, what we've seen in Q4 is that a lack of utilization tends to go down a little bit for the holidays folks don't like to have those surgeries at that time, we also see the impact of.
The ICL from the part D standpoint folks are starting to hit that donut hole or may have already hit the donut hole and some costs tend to go down.
The other piece of our major factor there is that the reinsurance rate folks are hitting that catastrophic level throughout the year and so we tend to get higher.
Reimbursements of refunds from the stop loss credits.
Correct.
Got it and then you let us know just how much do they have to contribute on an adjusted.
Adjusted EBITDA basis.
So I expect it to.
I don't believe we.
Ted.
Okay and then just on my follow up would be from that chart on page six.
The cohort.
Medical expense ratio for cohorts as they progressed from 24 to 36 48 months what percent cohort actually make that's 24 or 36 or 48 months.
And then just how do you expect those retention rates to change as you add new payers.
Thanks.
Yes, it's roughly over over 60% retention and as you can see there, it's a 14% reduction year over year as it translates into close to a 40, 40% reduction for that period of time.
Yeah.
We're already working with 18 different health plans. So we will continue to add.
Different payers in different regions, we do expect retention to be more favorable outside of the south Florida market, where its very competitive you have a significant amount of penetration here specifically in the Miami area. It's over 80% on MA penetration. We've also invested very heavily this year on bringing in a chief experience officer and really working.
Two two.
To reduce debt.
Attrition on our on our membership so we continue to expect that number to tick.
Get significantly better and better and that's just just to be clear that's a total P. M. P M.
Cost reduction and medical expenses.
Yeah.
And that's all the questions Jessica.
A reminder, if you have any questions you May press star one on your telephone keypad to join the Q&A session. Our next question comes from the line of Gary Taylor with Cowen. Please proceed with your question.
Hi, Good morning, just a few I just wanted to go back to the fourth quarter just for a second and just clarify.
What the implied guidance is my understanding when you say CRO.
Pro forma earnings power, you know 35 million sort of targeting the middle you're basically saying the.
Fourth quarter, EBITDA, you're expecting around nine $9 million.
Is that correct.
Hey, Gary it's Kevin Yeah. So I think we should clarify that it's a good point.
So the pro forma run rate adjusted EBITDA, which is a term we will only use really this year going forward, we will be using a normalized EBITDA number.
Is it really identifies the impact of the earnings power for the organization. So the way you would think about it is that the core business.
Burden for Covid burden for Pepco burden for the investments that were doing during the year will probably produce summer somewhere around the $10 million to $11 million range. We have a normalized we have acquired and we will acquire so there's some.
Acquisitions that we've done and some unannounced acquisitions.
But the run rate normalized EBITDA for those are around $19 million.
And then again those.
We've executed on those SMA came in the Middle of June DNF came in September and Theres, a couple of them, where they're going to happen later on this year and so when you look at the normalized run rate for those $19 million and then additionally to that are the synergies, which represent roughly 5 million Bucks. So it's not all going to come in the fourth quarter and this big pop.
The annualized run rate and kind of the jumping off period, if you will or jumping off earnings point.
Procure Max for 2022.
Yeah, I understand that I guess I'm trying to understand what.
What that implies for the for the for Q and sensor only the stub period.
<unk>.
I don't I don't think it implies people should be.
Modeling a huge fourth quarter up close to that 35, but.
You sound like Youre, saying that not even all of the synergy and run rate earnings power is reflected in a in an annualized <unk> EBITDA number.
That's right. So we will have some acquisitions that will probably havent closed yet.
And so those won't be in the fourth quarter.
And the other pieces some of the synergies that we're working on some we executed on the SG&A side in the Middle of October. Some early part of December rate, so you'd have a stub period in there.
For the quarter. So yeah, that's correct I think what we're estimating.
From a fourth quarter standpoint for our core business is probably somewhere around two and a half million dollars.
And then with the other components of the acquisitions the synergies and all that other are the other items is probably worth another million and a half or so.
Got it so.
On a reported basis it could be in the three and a half to 4 million dollar range basically.
Correct.
Okay.
And what else I, just want to go back to that cost of care number that Josh.
Josh talked about so it sounded like there.
The pharmacy costs that are now in there and then I did see I think there was like a million three of.
Of what you call the nonrecurring costs coming out of that cost of care line can you just.
Discuss what that amount is.
Sure absolutely. So the million three represents two items one is a normalization of cost.
That was related to periods prior to 2021, specifically around occupancy costs, which represented about half a million dollars or so.
The remaining balance is was a pilot that we were running specifically for lab results.
Essentially we ran that pilot with expectations that we would get results faster in the hands of our physicians quicker so that they can determine what they needed to do faster at the end of the day that pilot was killed.
On October one so we did run that pilot for a couple of months, we have duplicative costs in there from a period of.
I want to say maybe in the whole quarter August through September.
September so a couple of months and that makes up the delta.
And then my last I did see in the pro forma or the historic sort of adjusted EBITDA presentation.
I'll show, some some pretty modest amounts, but add backs for danone.
De Novo losses, so should we assume when we get your 2022.
Guidance your convention will be to exclude.
The expected losses from the de Novo openings.
Yes, it's definitely something we're contemplating absolutely.
Okay. Thank you.
And we have reached the end of our question and answer session.
I would like to turn the floor back to Carlos to Soma for closing.
Yeah.
Great. Thank you, we just like to thank everyone for joining on our Q3 earnings call.
And this concludes today's conference and you may disconnect. Your lines at this time. Thank you for your participation.
Okay.
Okay.
Yeah.
[noise] [noise].
Yeah.